The Board of Directors are pleased to present the Annual Report of the Company togetherwith the Audited Statements of Account for the financial year ended 31 March 2021.
It has been a turnaround performance by the company during the year inspite ofchallenging environment globally. The Company reported revenue of Rs. 237 Crores (PY Rs.240 Crores) and PAT of Rs. 0.06 Crores (PY loss of Rs. 15 Crores).
The demand for high quality cold chain logistics infrastructure has grown exponentiallyin the food and pharmaceutical industry due to the circumstances surrounding COVID andour customers trust the quality of services provided by Snowman as a leader in thisindustry. We are continuing to expand and add cold storage capacities in both new &existing locations to cater to this growing demand.
In addition to the new projects underway the Company has also started a new verticalfor catering to e-commerce logistics in the food and pharmaceutical segments. On thepharma front Snowman is well positioned to handle any requirement pertaining to COVID-19vaccination logistics as we have the largest private cold chain warehouse network inIndia.
|Particulars ||2020-21 (Rs.In Lakhs) ||2019-20 (Rs.In Lakhs) ||Growth |
|Pallet Capacity ||107450 ||105228 ||2% |
|Fleet Strength ||261 ||289 ||(9%) |
|Revenue From Operations ||23710 ||24020 ||(1%) |
|Other Income ||347 ||319 ||9% |
|Total Income ||24058 ||24339 ||(1%) |
|EBITDA ||6847 ||6406 ||7% |
|EBITDA% ||28% ||26% || |
|PBT ||243 ||(631) ||138% |
|PBT% ||1% ||(3%) || |
|PAT ||6.00 ||(1501) || |
|PAT% ||0.0% ||(6%) || |
Management Discussion & Analysis
During the year 2020-21 the company clocked revenues of INR. 237.10 Crores as againstto INR. 240.20 Crores during the previous year. The marginal drop in revenue was mainly inthe transport vertical due to vehicle movement restrictions on account of lockdown duringQ1 and Q2. EBITDA increased to INR. 68.47 Crores from INR. 64.06 Crores mainly due tomargin improvements in warehousing i.e. 38% in FY20 to 42% in FY21 and PAT increased toINR 6 lakhs from a loss of INR. (1501) Lakhs during the previous year.
Key Financial r atios
|Particulars ||2020-21 ||2019-20 ||Variation ||Reasons for significant change (i.e. change of 25% or more as compared to the immediately previous financial year) |
|Return on Net Worth (%) ||1% ||-2% ||2% || |
|Return on Capital Employed (%) ||4% ||3% ||1% || |
|Basic EPS (after exceptional items) (Rs.) ||0.00 ||-0.90 ||100% ||Due to increase in profit as compared to last year |
|Debtors turnover Ratio (Days) ||83.16 ||81.49 ||2% || |
|Interest coverage ratio ||13.38 ||8.78 ||52% ||Due to repayment of borrowings and moratorium provided by bank during Q1 and Q2 |
|Current ratio ||2.51 ||1.25 ||100% ||Due to improved working capital position |
|Debt equity ratio ||19% ||13% ||6% || |
|Operating profit margin (%) ||8% ||6% ||2% || |
|Net profit margin (%) ||1% ||-3% ||4% || |
Amidst challenges of lock-down transport restrictions the Company did a commendablejob in ensuring non-stop operations at all locations. Warehousing utilization improved dueto increase in business of e-commerce customers. Export restrictions also meant that someof the exporters had to store their products for extended period. The enhanced safety andhygiene measures introduced by the company post COVID has drawn appreciation from allcustomers alike.
We believe that the strong performance of the Company during the last year will besustained and improved upon in the coming year.
The Company has taken all measures to ensure that safety and hygiene measures are inplace and the business is protected from any relapse in the covid scenario. The companyplayed a role in the distribution of COVID vaccines during the last year. With massdistribution planned in the current year the Company is well positioned to play a biggerrole in its distribution. Further the preparedness shown by the Company in handlingvaccines is also expected to draw more customers in the Pharma vertical. On the expansionfront construction is already underway at Siliguri Coimbatore Krishnapatnam and Mumbaito expand the warehousing capacities. Plans are also being drawn for the next phase ofexpansion with the management team currently doing the ground work to identify thepotential locations.
Under challenging market conditions the company continued to retain its leadershipposition in the industry. Since the Company's clientele include the top food and pharmaCompanies the Company's performance has been relatively strong as compared to itscompetitors. The pandemic has also forced customers to re-look at their supply chainpartners and tie-up with only those who do not compromise on safety and hygiene therebystrengthening our position in the industry.
Statements made in this report particularly those which relate to ManagementDiscussion and Analysis describing the Company's objectives projections estimates andexpectations may constitute "forward looking statements" within the meaning ofapplicable laws and regulations. Actual results might vary materially from those eitherexpressed or implied.
The paid-up share capital of your company is 167087995 equity shares of Rs.10/- each.There were no changes during the year.
Keeping in mind the Company's growth plans and hence the need to conserve cash theBoard of Directors have not recommended any dividend for the year.
Board of Directors
As on date the Board of Directors of the Company comprises 10 (ten) Directors of whichfive are Non-Executive Independent Directors in terms of SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 and Section 149(6) of the Companies Act 2013.
At the 27th Annual General Meeting (AGM) held on September 15 2020 the shareholdersof the Company approved the following:
1. Appointment of Mr. Ishaan Gupta as a Non-Executive Non-Independent Director of theCompany with effect from May 15 2020 whose office shall be liable to retire byrotation.
2. Appointment of Mr. Samvid Gupta as a Non-Executive Non-Independent Director of theCompany with effect from May 15 2020 whose office shall be liable to retire byrotation.
3. Appointment of Ms. Shukla Wassan as an Independent Director of the Company for aterm of 2 years with effect from May 15 2020.
All Independent Directors have given declarations stating that they meet the criteriaof independence as laid down under Section 149(6) of the Companies Act 2013 and SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015.
The information related to remuneration of director as required under Section 197(12)of the Act is given at the end of the report.
Nomination Remuneration and Board Evaluation Policy
The Nomination Remuneration and Board Evaluation Policy contains the criteria fordetermining qualifications positive attributes and independence of a director and policyrelating to the remuneration for the directors key managerial personnel and otheremployees of the Company. The Nomination and Remuneration Policy forms part of this reportas "Annexure C" and are also available on the website of the Company.
Pursuant to the provisions of the Companies Act 2013 and SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 the Board has carried out an annual evaluationof its own performance the Directors individually as well as the evaluation of theworking of its Audit Nomination & Remuneration Committee.
The manner in which the evaluation has been carried out has been explained in theCorporate Governance Report.
During the year 5 (Five) Board Meetings and 4 (Four) Audit Committee Meetings wereconvened and held the details of which are given in the Corporate Governance Report. Theintervening gap between the Meetings was within the period stipulated under the CompaniesAct 2013.
Directors' Responsibility Statement
In terms of Section 134(3)(c) of the Companies Act 2013 with respect to Directors'Responsibility Statement it is hereby confirmed that:
(a) in the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures;
(b) the directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year and ofthe profit and loss of the company for that period;
(c) the directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities;
(d) the directors had prepared the annual accounts on a going concern basis; and
(e) the directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively.
(f) the directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.
As per SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 adetailed report on corporate governance practices followed by the Company together withthe certificate from the Company's Statutory Auditor confirming compliance forms part ofthis report as "Annexure A"
Business Responsibility Report
Pursuant to Regulation 34(2)(f) of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 read with SEBI Circular No. CIR/ CFD/CMD/10/2015 dated 4November 2015 the 'Business Responsibility Report' (BRR) of the Company for FY 2020-21 isforming part of the Annual Report. The report is annexed herewith as "AnnexureK"
Pursuant to Provisions of Section 139 of the Companies Act 2013 and the rules framedthereunder M/s S.R. Batliboi & Co.LLP (Firm Registration number 301003E/E300005)Chartered accountants were appointed as statutory Auditors of the Company from theConclusion of the 24th Annual General Meeting of the company held on 2nd August 2017 fora term of five Consecutive Years subject to ratification of their appointment at everyannual general meeting.
Pursuant to Companies Amendment Act 2017 read with the Companies (Audit and Auditors)Second Amendment Rules 2018 with effect from 7th May 2018 the requirement for placingthe matter relating to Appointment of Statutory Auditors for ratification by members atevery annual general meeting during the term of their appointment has been done awaywith. In view of the above M/s. S.R.Batliboi and Co. LLP (Firm Registration No.301003E/E300005) continuous to be the statutory auditors of the Company till theconclusion of the 29th AGM to be held in the calendar year 2022.
Pursuant to the provisions of Section 204 of the Companies Act 2013 and the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 the Company hasappointed Mr. Nagendra D Rao Practicing Company Secretary to undertake the SecretarialAudit of the Company. The report is annexed herewith as "Annexure B"
Secretarial Compliance Report
Pursuant to Regulation 24(A) SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 and other provisions as may be applicable the Company has obtained theSecretarial Compliance Report from Mr. Nagendra D Rao Practicing Company Secretary .Thereport is annexed herewith as "Annexure I"
Insider Trading Regulations
Based on the requirements under SEBI (Prohibition of Insider Trading) Regulations1992 as amended from time to time the code of conduct for prohibition of insidertrading as approved by the Board is in force by the Company. The Company also adopts theconcept of Trading Window Closure to prevent its Directors Officers designatedemployees and other employees from trading in the securities of the Company at the timewhen there is unpublished price sensitive information. The Board has appointed Mr. A. M.Sundar Chief Financial Officer and Company Secretary as the Compliance Officer under theCode.
Corporate Social Responsibility
Particulars of Corporate Social Responsibility (CSR) activities are given in the Formwhich is annexed to this Report as "Annexure D".
Internal Control and Internal Audit
The Company has in place adequate systems of Internal Control to ensure compliance withpolicies and procedures. The Company has a system of carrying out internal audit coveringall business processes to review the internal control systems. The internal control systemand mechanism is reviewed periodically by the Audit Committee to make it robust so as tomeet the challenges of the business.
The Company has a vigil mechanism in place named as Whistle Blower Policy to reportconcerns to the management about unethical behavior actual or suspected fraud orviolation of the Codes of Conduct. The details of the Whistle Blower Policy is explainedin the Corporate Governance Report and also posted on the website of the Company.
Related Party Transactions
The related party transactions as per the Companies Act 2013 and SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 during the financial year endedMarch 31 2021 are given below. Suitable disclosure as required by the Indian AccountingStandards has been made in the notes to the Financial Statements.
The company has paid rental amount of Rs. 7.15 Lakhs to Gateway Distriparks Ltd duringthe financial year as part of the rental agreement entered into with Gateway DistriparksLimited on September 11 2017 at Krishnapatnam in the ordinary course of business. Theabove transaction has been approved vide Board resolution dated August 10 2017 andconducted at arm's length basis.
The Company has availed the services of Gateway Rail Freight Limited for reefercontainer movement from Punjab to Mumbai. The value of transaction was Rs. 0.78 Lakhs.This transaction was in the normal course of business and at arm's length basis.
Particulars of Loans Given Investments Made Guarantees Given or Security Provided bythe Company
The Company has not given any loan or any guarantee or security.
Particulars of Contracts or Arrangements with Related Parties
Particulars of contracts or arrangements with related parties referred to in section188 (1) of the Companies Act 2013 are given in form AOC-2 which is annexed to thisreport as annexure H. Details of policy determining material subsidiaries and the policyfor dealing with related party transactions can be accessed by clicking on the Company'swebsite www.snowman.in.
Extract of Annual Return
The details forming part of the extract of the Annual Return in form MGT 9 is annexedherewith as "Annexure E".
The Company is committed to provide a healthy environment to all employees and thusdoes not tolerate any discrimination and/or harassment in any form. The Company has inplace a Prevention of Sexual Harassment (POSH) policy in line with the requirements of theSexual Harassment of Women at Workplace (Prevention Prohibition and Redressal) Act 2013.No complaints were received by the Company during the period under review.
The total number of employees as on 31 March 2021 was 424 as against 411 as on 31 March2020.
Particulars of Employees
Information in accordance with Section 197 of the Companies Act 2013 read with Rule 5of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 inrespect of the employees of the Company is annexed herewith as "Annexure F"
Information about Subsidiaries/Associate/Joint Ventures are given in Form AOC-1 whichis annexed as Annexure G to this report.
Disclosure under Section 134 (3) (m)
Conservation of Energy
The Company continues to give the highest priority for conservation of energy by usinga mix of technology changes process optimization methods and other conventional methodson an on-going basis.
The Company continues to lay emphasis on development and innovation of in-housetechnological and technical skills to meet the specific customer requirements. Efforts arealso being made to upgrade the existing standards and to keep pace with the advances intechnological innovations.
Foreign Exchange Earnings and Outgoing
i) Expenditure in foreign currency : Rs. 5 Lakhs
ii) Earnings in foreign currency : Nil
a) Your Company has not accepted any deposits from the public and as such no amount onaccount of principal or interest on public deposits was outstanding as on the date of thebalance sheet.
b) Your Company has not issued shares with differential voting rights and sweat equityshares during the year under review.
c) Your Company has complied with the applicable Secretarial Standards relating to'Meetings of the Board of Directors' and 'General Meetings' during the year
d) Maintenance of cost records and requirement of cost Audit as prescribed under theprovisions of Section 148(1) of the Companies Act 2013 are not applicable to the businessactivities carried out by the Company
e) There are no significant material orders passed by the Regula- tors/Courts whichwould impact the going concern status of the Company and its future operations.
The Board of Directors thank all the stakeholders of the Company including itscustomers shareholders bankers vendors for their continued support and assistance andlook forward to having the same support in our future endeavors. The Directors also placeon record their sincere appreciation for significant contributions made by the employeestowards the success and growth of the Company.
|l ||For and on behalf of the Board of Directors For Snowman Logistics Limited |
|Place: New Delhi Date: April 26 2021 ||Prem Kishan Dass Gupta Chairman |