Shreyas Shipping & Logistics Ltd

Dear shareholders,

Firstly, I would like to extend my heartfelt gratitude and congratulations to our entire team for their tireless efforts and dedication in achieving our milestones, despite navigating a challenging and volatile year in our industry. This evolving geopolitical landscape has imparted many valuable lessons, particularly the ability to adapt, step out of our comfort zones and think innovatively. Over the past few years, we not only adapted to uncertainties but have also developed resilience in the face of changing circumstances.

Economic Landscape

In FY2023-24, the Indian economy demonstrated remarkable flexibility, despite global geopolitical unpredictability to maintain its position as the world's fastest- growing economy. The ‘Make in India' campaign has fostered numerous vibrant entrepreneurs, earning India the distinction of having one of the highest number of start-ups globally. The ease of doing business has improved considerably. The government has delicately handled the oil crisis by leveraging international relationships, ensuring India's continued prominence on the global stage.

Industry Outlook

The shipping industry has experienced turbulent times since the post-COVID boom subsided, as changes in global trade has emphasised the importance of a stronger maritime and supply chain sector. A sudden shift in supply realigned the demand-supply dynamics, causing a significant downturn in the industry, with freight and charter rates plummeting. However, the Indian Government has taken proactive measures to address these challenges, introducing initiatives like the logistics policy, to enhance port infrastructure and facilitate the growth of the shipping industry.

The PM Gati Shakti programme - National Master Plan for Multi-modal Connectivity - has been a significant milestone. This digital platform converges 16 Ministries, including Railways and Roadways, facilitating integrated planning and coordinated implementation of infrastructure connectivity projects. By streamlining connectivity, this initiative enhances the competitiveness of Indian businesses.

Geopolitical Impacts

The ongoing Russia-Ukraine conflict and the Red Sea crisis have presented both disruptions and alternative prospects.

While these conflicts have strained global supply chains and increased operational costs, they have also highlighted the importance of agile and resilient logistics networks. As we hope for a resolution to the conflicts and an end to human suffering, we remain adaptable and poised to leverage the alternative prospects these disruptions have created. Our strategic initiatives and robust risk management practices have enabled us to navigate these challenges effectively and serve our customers more efficiently, capitalising on new opportunities.

Economic Growth

The global shipping industry, the backbone of international trade, has demonstrated remarkable adaptability in navigating recent challenges. By harnessing innovative technologies, transitioning to cleaner energy sources and fostering collaborative efforts, the industry is charting a course towards a more sustainable future. India, with its strategic initiatives, such as the Maritime India Vision 2030 and the Sagar Mala Programme, is poised to emerge as a major maritime hub, unlocking significant economic benefits through its vast maritime potential. As the industry navigates this transformative phase, its ability to minimise environmental impact while reinforcing its pivotal role in global trade will be crucial to its continued growth, success and sustainability.

Future Course

Although the current landscape is marked by volatility, we remain optimistic about macro-economic outlook and are confident that key factors like oil demand, inflation, supply chain disruptions and interest rates will settle into a more stable pattern. We anticipate enhanced investment across various segments, driven by our strong faith in the Indian economy's durability and potential for sustained growth.

The markets are on a steady path to recovery and are geared for continued growth. While global conflicts had temporarily impeded progress, growing consumption and improved business sentiments will have a positive ripple effect on both the economy and our Company. Our strategic presence in containerised, and bulk shipping positions us to capitalise on both domestic and global opportunities.

GIFT City Initiatives

The Company is in process of establishing a wholly-owned subsidiary in GIFT City, Gandhinagar, Gujarat, underscoring our commitment to leveraging India's premier international financial services hub. Shreyas Shipping is in advanced discussions to set up an Indian Flag Vessel Owning company in GIFT City, aligning with our strategic objectives and expanding our operational capabilities. We anticipate that this initiative will yield valuable opportunities, further enhancing our competitive edge in the maritime industry.

Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) Initiatives

Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) principles are integral to our business strategy and operations. We believe that sustainable growth encompasses not only financial performance but also a positive impact on society and the environment. We are committed to reducing our carbon footprint and aim to be carbon neutral. Our CSR activities span various sections of society, focusing on education, healthcare and environmental conservation. We actively engage our employees and their families in our social activities, cultivating a culture of empathy, compassion and giving.

Our ESG initiatives encompass the adoption of energy-efficient technologies, promotion of sustainable practices across our operations and the maintenance of exemplary corporate governance standards. We are dedicated to generating long-term value for all our stakeholders by integrating ESG considerations into our decision-making processes, ensuring a responsible and sustainable approach to business that benefits both our organisation and the community at large.

Our strategy is rooted in the foundation of ‘Technology with Human Touch' fostering sustainable growth and prosperity. Guided by the Transworld Group's higher purposeof ‘Delivering Prosperity to Humanity', we strive not only to generate profits for our shareholders, employees, and associates but also to create a positive impact on the entire ecosystem. Our ultimate goal is to harness this wealth to drive tangible change and spread prosperity across the entire ecosystem. Our corporate responsibility initiatives engage all sections of society and the environment, aiming to create a better future for all.

Vote of Thanks

I would like to express my sincere appreciation to my fellow Board members for their invaluable knowledge and guidance in shaping our strategy and driving our Company's consistent growth. I extend my heartfelt gratitude to our entire team for their unwavering dedication and relentless efforts in elevating our Company's market position. I also thank all our stakeholders for their trust and support in our journey. We are grateful for your continued backing as we strive to achieve our goals and create a brighter future for all.

Warm regards,