We have audited the financial statements of Snowman Logistics Limited ("the Company"), which comprise the
Balance sheet as at March 31 2025, the Statement of Profit and Loss, including the statement of Other Comprehensive
Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the
financial statements, including a summary of material accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us the aforesaid financial
statements give the information required by the Companies Act, 2013, as amended ("the Act") in the manner so
required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2025, its profit including other comprehensive income, its cash flows
and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs), as specified
under section 143(10) of the Act. Our responsibilities under those Standards are further described in the 'Auditor's
Responsibilities for the Audit of the Financial Statements' section of our report. We are independent of the Company
in accordance with the 'Code of Ethics' issued by the Institute of Chartered Accountants of India together with the
ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the
Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and
the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and 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 most significance in our audit of
the financial statements for the financial year ended March 31, 2025. These matters were addressed in the context
of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is
provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We
have fulfilled the responsibilities described in the Auditor's responsibilities for the audit of the financial statements
section of our report, including in relation to these matters. Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the risks of material misstatement of the financial statements.
The results of our audit procedures, including the procedures performed to address the matters below, provide the
basis for our audit opinion on the accompanying financial statements.
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Key audit matters
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How our audit addressed the key audit matter
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(a) Revenue recognition (as described in Note 2.2(e) and 15 of the financial statements)
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For the year ended March 31, 2025, the Company has
recognized revenue from operations of INR 55,253.45
lakhs which primarily pertains to trading of goods,
warehousing and transportation services rendered by
the Company.
Revenue is recognized based on the terms of the
agreement and tariff/rates agreed with the customers
for delivery of services where the recovery of
consideration is probable.
The tariff/rates 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 recognized in the
current year and accrued as at year end.
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.
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Our audit procedures, among others included the
following:
• 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.
• 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/rates agreed
or as per 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.
• 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.
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Key audit matters
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How our audit addressed the key audit matter
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Deferred tax assets with respect to tax losses carried forward (as described in Note 7 of the financial statements)
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At March 31,2025, deferred tax assets (net) recognized
in the Company's financial statements is INR 3,180.25
lakhs, including deferred tax assets on carried forward
losses under section 35AD of the Income-tax Act, 1961
of INR 6,752.12 lakhs.
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. 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.
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.
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Our audit procedures, among others included the
following:
• 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.
• We assessed the compliance of the methodology
applied by the Company with applicable accounting
standards.
• 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".
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Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The other information comprises the
information included in the Annual report, but does not include the financial statements and our auditor's report
thereon. The Annual report is expected to made available to us after the date of this auditor's report.
Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified
above when it becomes available and, in doing so, consider whether such other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
Responsibilities of Management for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect
to the preparation of these financial statements that give a true and fair view of the financial position, financial
performance including other comprehensive income, cash flows and changes in equity of the Company in
accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards
(Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015,
as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those charged with governance are also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design 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 has adequate internal financial controls with reference to financial statements
in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
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's report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the financial statements for the financial year ended March 31, 2025 and are
therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
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 of the Act, we give in the "Annexure 1" a statement on the
matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report, to the extent applicable, that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it
appears from our examination of those books except that we are unable to comment whether the Company
has server physically located in India for the daily backup of the books of account and other books and
papers maintained in electronic mode (as stated in Note 37 to the financial statements) and for the matters
stated in the paragraph (i)vi below on reporting under Rule 11(g);
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income,
the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with
the books of account;
(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March 31,2025 taken on record
by the Board of Directors, none of the directors is disqualified as on March 31,2025 from being appointed as
a director in terms of Section 164 (2) of the Act;
(f) The modification relating to the maintenance of accounts and other matters connected therewith are as
stated in paragraph (b) above on reporting under Section 143(3)(b) and paragraph (i)(vi) below on reporting
under Rule 11(g);
(g) With respect to the adequacy of the internal financial controls with reference to these financial statements
and the operating effectiveness of such controls, refer to our separate Report in "Annexure 2" to this report;
(h) In our opinion, the managerial remuneration for the year ended March 31,2025 has been paid / provided by
the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the
Act;
(i) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information
and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial
statements - Refer Note 27 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were
any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection
Fund by the Company;
iv. a) The management has represented that, to the best of its knowledge and belief, no funds have been
advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person or entity, including foreign
entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that
the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities
identified in any 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 funds have been
received by the Company from any person or entity including foreign entities ("Funding Parties"),
with the understanding, whether recorded in writing or otherwise, that the Company shall, whether,
directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (a) and (b) contain any material misstatement.
v. The interim dividend declared and paid by the Company during the year and until the date of this audit
report is in accordance with section 123 of the Act.
vi. Based on our examination which included test checks, the Company has used accounting software
for maintaining its books of account which has a feature of recording audit trail (edit log) facility which
was not enabled throughout the year for all relevant transactions recorded in the software, as described
in Note 38 to the financial statements. Accordingly, we are unable to comment upon whether during
the year there was any instance of audit trail feature being tampered with in respect of the accounting
software. Additionally, for the reasons stated in Note 38 to the financial statements, we are unable to
comment on whether audit trail as per the applicable requirements has been preserved by the Company
as per the statutory requirements for record retention in respect of the previous year.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Amit Gupta
Partner
Membership Number: 501396
UDIN: 25501396BMOWGH8189
Place of Signature: New Delhi
Date: May 26, 2025
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