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Snowman Logistics Ltd.

BSE: 538635 Sector: Others
NSE: SNOWMAN ISIN Code: INE734N01019
BSE 11:24 | 24 Mar 32.24 -0.41
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32.31

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32.54

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32.06

NSE 11:09 | 24 Mar 32.10 -0.45
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32.20

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32.50

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OPEN 32.31
PREVIOUS CLOSE 32.65
VOLUME 7428
52-Week high 44.00
52-Week low 24.40
P/E 67.17
Mkt Cap.(Rs cr) 539
Buy Price 32.06
Buy Qty 202.00
Sell Price 32.24
Sell Qty 22.00
OPEN 32.31
CLOSE 32.65
VOLUME 7428
52-Week high 44.00
52-Week low 24.40
P/E 67.17
Mkt Cap.(Rs cr) 539
Buy Price 32.06
Buy Qty 202.00
Sell Price 32.24
Sell Qty 22.00

Snowman Logistics Ltd. (SNOWMAN) - Auditors Report

Company auditors report

To the Members of Snowman Logistics Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Snowman Logistics Limited("the Company") which comprise the Balance sheet as at March 31 2022 theStatement of Profit and Loss including the statement of Other

Comprehensive Income the Cash Flow Statement and the Statement of Changes in Equityfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 as amended ("the Act") in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2022 its profit includingother comprehensive income its cash flows and the changes in equity for the year ended onthat date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) as specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the ‘Auditor's Responsibilities for theAudit of the Financial Statements' section of our report. We are independent of theCompany in accordance with the ‘Code of Ethics' issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Act and the Rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements for the financial year ended March31 2022. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. For each matter below our description of how our auditaddressed the matter is provided in that context. We have determined the matters describedbelow to be the key audit matters to be communicated in our report. We have fulfilled theresponsibilities described in the Auditor's responsibilities for the audit of thefinancial statements section of our report including in relation to these matters.Accordingly our audit included the performance of procedures designed to respond to ourassessment of the risks of material misstatement of the financial statements.

The results of our audit procedures including the procedures performed to address thematters below provide the basis for our audit opinion on the accompanying financialstatements.

Key audit matters How our audit addressed the key audit matter
Revenue recognition (as described in Note 2(e) and 15 of the financial statements)
For the year ended March 31 2022 the Company has recognized revenue from operations of INR 28616.52 lakhs which primarily pertains to warehousing and transportation services rendered by the Company. Our audit procedures among others included the following:
Revenue from warehousing and transportation services is recognized based on the terms of the agreement and tariff agreed with the customers for delivery of services where the recovery of consideration is probable. • We assessed the Company's revenue recognition policy and its compliance in terms of Ind AS 115
‘Revenue from contracts with customers'.
• We obtained an understanding evaluated the design and tested the operating effectiveness of key controls related to revenue recognition.
The tariff applied by the Company is the rate agreed with its customers or as estimated by management based on the latest terms of the agreement or latest negotiations with customers and other industry considerations. Due to the large variety and complexity of contractual terms as well as ongoing negotiations with customers significant judgements are required to estimate the tariff rates applied. If the actual rate differs from the estimated rate applied this will have an impact on the accuracy of revenue recognised in the current year and accrued as at year end. • We selected and tested samples of individual revenue transaction and traced the same to underlying invoices customer agreements and other related documents to assess that the revenue has been recognized as per the tariff agreed / latest correspondence with the customers.
• We also tested samples of revenue transactions made near to the year end and compared the period and tariff rates for revenue recognition to supporting documentation to ensure that sales and corresponding trade receivables are properly recorded.
Revenue is also an important element of how the Company measures its performance upon which the management is incentivized. The Company focuses on revenue as a key performance measure which could create an incentive for revenue to be recognized before meeting the requirement of revenue recognition under Ind AS 115. Accordingly due to significant risk associated with revenue recognition it was determined to be a key audit matter in our audit of the financial statements. • We verified the bank advices and credit notes on a sample basis for the net settlement and reviewed aged items for any disputed amounts.
• We tested underlying documentation for journal entries which were considered to be material related to revenue recognition.
Deferred tax assets with respect to tax loss carry forwards(as described in Note 7 of the financial
At March 31 2022 deferred tax assets recognized in the Company's financial statements is INR 4084.69 lakhs. • Our audit procedures among others included the following:
Deferred tax assets are recognized on carried forward tax losses when it is probable that taxable profit will be available against which the tax losses can be utilized. • We obtained an understanding of the deferred tax assessment process evaluated the design and tested the operating effectiveness of the controls in respect of process of recognizing deferred tax on carried forward tax losses.
The Company's ability to recognize deferred tax assets on carried forward tax losses is assessed by the management at the end of each reporting period taking into account forecasts of future taxable profits and the law and jurisdiction of the taxable items and assumptions.
• We assessed the compliance of the methodology applied by the Company with applicable accounting standards.
Given the degree of estimation based on the projection of future taxable profits recognition of deferred tax assets on tax losses was identified to be a key audit matter. • We discussed and evaluated management's assumptions and estimates like projected revenue growth etc. in relation to the probability of generating future taxable income to support the recognition of deferred income tax asset with reference to forecast taxable income and performed sensitivity analysis.
• We verified the consistency of business plan with the latest management estimates as calculated during the budget process and the reliability of the process by which the estimates were calculated and assessed reasons for differences between projected and actual performances.
• We tested the arithmetical accuracy of the deferred tax model prepared by the management.
• We assessed the adequacy of the disclosures in the financial statements regarding the recognition of deferred tax assets based on unused tax losses in accordance with the requirements of Ind AS 12 "Income Taxes".

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether such other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of Management for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards

(Ind AS) specified under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements for thefinancial year ended March 31 2022 and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit; (b) In ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss including the Statement ofOther Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015 as amended; (e) On the basis of the written representationsreceived from the directors as on March 31 2022 taken on record by the Board ofDirectors none of the directors is disqualified as on March 31 2022 from being appointedas a director in terms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls with reference tothese financial statements and the operating effectiveness of such controls refer to ourseparate Report in "Annexure 2" to this report; (g) In our opinion themanagerial remuneration for the year ended March 31 2022 has been paid / provided by theCompany to its directors in accordance with the provisions of section 197 read withSchedule V to the Act;

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous: i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 26(a) to the financial statements; ii. TheCompany did not have any long-term contracts including derivative contracts for whichthere were any material foreseeable losses; iii. There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany iv. a) The management has represented that to the best of its knowledge andbelief no funds have been advanced or loaned or invested (either from borrowed funds orshare premium or any other sources or kind of funds) by the Company to or in any otherperson(s) or entity(ies) including foreign entities ("Intermediaries") withthe understanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries")or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries; b)The management has represented that to the best of its knowledge and belief no fundshave been received by the Company from any person(s) or entity(ies) including foreignentities ("Funding Parties") with the understanding whether recorded inwriting or otherwise that the company shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party ("Ultimate Beneficiaries") or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries; and c) Based on such audit proceduresthat were considered reasonable and appropriate in the circumstances nothing has come toour notice that has caused us to believe that the representations under sub-clause (a) and(b) contain any material misstatement. v. No dividend has been declared or paid during theyear by the Company.

For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Vishal Sharma
Partner
Membership Number: 096766
UDIN: 22096766AHTWJS8066
Place of Signature: Gurugram
Date: April 25 2022

Annexure 1 referred to in paragraph under the heading "Report on other legal andregulatory requirements" of our report of even date

Re: Snowman Logistics Limited (‘the Company')

In terms of the information and explanations sought by us and given by the company andthe books of account and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state that: (i) (a)(A) The Company has maintainedproper records showing full particulars including quantitative details and situation ofProperty Plant and Equipment.

(B) The Company has maintained proper records showing full particulars of intangiblesassets.

(b) Property Plant and Equipment have been physically verified by the managementduring the year and no material discrepancies were identified on such verification.

(c) The title deeds of immovable properties (other than properties where the Company isthe lessee and the lease agreements are duly executed in favour of the lessee) disclosedin note 3 to the financial statements are held in the name of the Company. Further titledeeds in respect of certain immovable properties having gross and net book value of INR1194.78 lakhs included in property plant and equipment are pledged with Axis Bank andare not available with the Company. The same has been independently confirmed by the bank.

(d) The Company has not revalued its Property Plant and Equipment (including Right ofuse assets) or intangible assets during the year ended March 31 2022.

(e) There are no proceedings initiated or are pending against the Company for holdingany benami property under the Prohibition of Benami Property Transactions Act 1988 andrules made thereunder.

(ii) (a) The Company's business does not require maintenance of inventories andaccordingly the requirement to report on clause 3(ii)(a) of the Order is not applicableto the Company.

(b) As disclosed in note 12A and 12B to the financial statements the Company has beensanctioned working capital limits in excess of Rs. five crores in aggregate from banksand/or financial institutions during the year on the basis of security of current assetsof the Company. The quarterly returns/statements filed by the Company with such banks andfinancial institutions are in agreement with the books of accounts of the Company.

(iii)(a) During the year the Company has not provided loans advances in the nature ofloans stood guarantee or provided security to companies firms Limited LiabilityPartnerships or any other parties. Accordingly the requirement to report on clause3(iii)(a) of the Order is not applicable to the Company.

(b) During the year the Company has not made investments provided guarantees providedsecurity and granted loans and advances in the nature of loans to companies firmsLimited Liability Partnerships or any other parties. Accordingly the requirement toreport on clause 3(iii)(b) of the Order is not applicable to the Company.

(c) The Company has not granted loans and advances in the nature of loans to companiesfirms Limited Liability Partnerships or any other parties. Accordingly the requirementto report on clause 3(iii)(c) of the Order is not applicable to the Company.

(d) The Company has not granted loans or advances in the nature of loans to companiesfirms Limited Liability Partnerships or any other parties. Accordingly the requirementto report on clause 3(iii)(d) of the Order is not applicable to the Company.

(e) There were no loans or advance in the nature of loan granted to companies firmsLimited Liability Partnerships or any other parties. Accordingly the requirement toreport on clause 3(iii)(e) of the Order is not applicable to the Company.

(f) The Company has not granted any loans or advances in the nature of loans eitherrepayable on demand or without specifying any terms or period of repayment to companiesfirms Limited Liability Partnerships or any other parties. Accordingly the requirementto report on clause 3(iii)(f) of the Order is not applicable to the Company.

(iv) There are no loans investments guarantees and securities given in respect ofwhich provisions of section 185 and 186 of the Companies Act 2013 are applicable andaccordingly the requirement to report on clause 3(iv) of the Order is not applicable tothe Company. (v) The Company has neither accepted any deposits from the public noraccepted any amounts which are deemed to be deposits within the meaning of sections 73 to76 of the Companies Act and the rules made thereunder to the extent applicable.Accordingly the requirement to report on clause 3(v) of the Order is not applicable tothe Company.

(vi) The Central Government has not specified the maintenance of cost records underSection 148(1) of the

Companies Act 2013 for the products/services of the Company.

(vii) (a) Undisputed statutory dues including goods and service tax provident fundemployees' state insurance income-tax sales-tax service tax duty of custom valueadded tax cess and other statutory dues have generally been regularly deposited with theappropriate authorities though there has been a slight delay in a few cases. According tothe information and explanations given to us and based on audit procedures performed byus no undisputed amounts payable in respect of these statutory dues were outstanding atthe year end for a period of more than six months from the date they became payable. Theprovisions relating to duty of excise are not applicable to the Company.

(b) The dues of income-tax wealth tax value added tax have not been deposited onaccount of any dispute are as follows:

Name of the statute Nature of the dues Amount (INR in lakhs) Amount Paid under Protest (INR in lakhs) Period to which the amount relates (FY) Forum where the dispute is pending
Income Tax Act 1961 Income Tax 12.28 - 2002-03; 2005-06 Commissioner of Income Tax (Appeals)
Punjab Value Added Tax 2005 Value Added Tax 8.42 8.42 2016-17 Deputy Commissioner (Appeals)
Kerala Value Added Tax Act 2003 Value Added Tax 120.19 18.78 2015-16 Deputy Commissioner (Appeals)

According to information and explanation given to us there are no dues of goods andservice tax provident fund employees' state insurance service tax sales tax duty ofcustoms and cess which have not been deposited on account of any dispute. The provisionsrelating to duty of excise are not applicable to the Company.

(viii) The Company has not surrendered or disclosed any transaction previouslyunrecorded in the books of account in the tax assessments under the Income Tax Act 1961as income during the year. Accordingly the requirement to report on clause 3(viii) of theOrder is not applicable to the Company.

(ix) (a) The Company has not defaulted in repayment of loans or other borrowings or inthe payment of interest thereon to any lender.

(b) The Company has not been declared wilful defaulter by any bank or financialinstitution or government or any government authority.

(c) The term loans were applied for the purpose for which the loans were obtained.

(d) On an overall examination of the financial statements of the Company no fundsraised on short-term basis have been used for long-term purposes by the Company.

(e) The Company does not have any subsidiary associate or joint venture. Accordinglythe requirement to report on clause 3(ix)(e) of the Order is not applicable to theCompany.

(f) The Company does not have any subsidiary associate or joint venture. Accordinglythe requirement to report on Clause 3(ix)(f) of the Order is not applicable to theCompany.

(x)(a) The Company has not raised any money during the year by way of initial publicoffer / further public offer (including debt instruments) hence the requirement to reporton clause 3(x)(a) of the Order is not applicable to the Company.

(b) The Company has not made any preferential allotment or private placement of shares/fully or partially or optionally convertible debentures during the year under audit andhence the requirement to report on clause 3(x)(b) of the Order is not applicable to theCompany.

(xi)(a) No fraud by the Company or no fraud on the Company has been noticed or reportedduring the year.

(b) During the year no report under sub-section (12) of section 143 of the CompaniesAct 2013 has been filed by secretarial auditor or by us in Form ADT – 4 asprescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 with the CentralGovernment.

(c) As represented to us by the management there are no whistle blower complaintsreceived by the Company during the year.

(xii)(a) The Company is not a nidhi Company as per the provisions of the Companies Act2013. Therefore the requirement to report on clause 3(xii)(a) of the Order are notapplicable to the Company.

(b) The Company is not a nidhi Company as per the provisions of the Companies Act2013. Therefore the requirement to report on clause 3(xii)(b) of the Order are notapplicable to the Company.

(c) The Company is not a nidhi Company as per the provisions of the Companies Act2013. Therefore the requirement to report on clause 3(xii)(c) of the Order are notapplicable to the Company.

(xiii) Transactions with the related parties are in compliance with section 177 and 188of Companies Act 2013 where applicable and the details have been disclosed in the notesto the financial statements as required by the applicable accounting standards.

(xiv)(a) The Company has an internal audit system commensurate with the size and natureof its business.

(b) We were unable to obtain some of the internal audit reports of the Company hencethe internal audit reports have not been entirely considered by us.

(xv) The Company has not entered into any non-cash transactions with its directors orpersons connected with its director and hence requirement to report on clause 3(xv) of theOrder is not applicable to the Company. (xvi)(a) The provisions of section 45-IA of theReserve Bank of India Act 1934 ( 2 of 1934) are not applicable to the Company.Accordingly the requirement to report on clause (xvi)(a) of the Order is not applicableto the Company.

(b) The Company is not engaged in any Non-Banking Financial or Housing Financeactivities. Accordingly the requirement to report on clause 3(xvi)(b) of the Order is notapplicable to the Company.

(c) The Company is not a Core Investment Company as defined in the regulations made byReserve Bank of

India. Accordingly the requirement to report on clause 3(xvi) of the Order is notapplicable to the Company. (d) There is no Core Investment Company as a part of the Grouphence the requirement to report on clause 3(xvi) of the Order is not applicable to theCompany.

(xvii) The Company has not incurred cash losses in the current financial year. TheCompany has not incurred cash losses in the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors during the year andaccordingly requirement to report on Clause 3(xviii) of the Order is not applicable to theCompany.

(xix) On the basis of the financial ratios disclosed in note 24 to the financialstatements ageing and expected dates of realization of financial assets and payment offinancial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatCompany is not capable of meeting its liabilities existing at the date of balance sheet asand when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the Company. Wefurther state that our reporting is based on the facts up to the date of the audit reportand we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by theCompany as and when they fall due. (xx)(a) In respect of other than ongoing projectsthere are no unspent amounts that are required to be transferred to a fund specified inSchedule VII of the Companies Act (the Act) in compliance with second proviso to subsection 5 of section 135 of the Act. This matter has been disclosed in note 21B to thefinancial statements.

(b) There are no unspent amounts that are required to be transferred to a specialaccount in compliance of provision of sub section (6) of section 135 of Companies Act.This matter has been disclosed in note 21B to the financial statements.

For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Vishal Sharma
Partner
Membership Number: 096766
UDIN: 22096766AHTWJS8066
Place of Signature: Gurugram
Date: April 25 2022

Annexure 2 to the Independent Auditor's report of even date on the Financial Statementsof Snowman Logistics Limted

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls with reference to financial statementsof Snowman Logistics Limited ("the Company") as of March 31 2022 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to these financial statements based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing asspecified under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both issued by ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tothese financial statements was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to these financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to these financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theCompany's internal financial controls with reference to these financial statements.

Meaning of Internal Financial Controls with reference to these Financial Statements

A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to [standalone]financial statements to future periods are subject to the riskthat the internal financial control with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to financial statements and such internal financial controls withreference to financial statements were operating effectively as at March 31 2022 basedon the internal control over financial reporting criteria established by the

Company considering the essential components of internal control stated in the GuidanceNote issued by the ICAI.

For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Vishal Sharma
Partner
Membership Number: 096766
UDIN: 22096766AHTWJS8066
Place of Signature: Gurugram
Date: April 25 2022

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