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Anand Rathi Research
Time Horizon – 12 Months
March 27, 2015
Dec-14 Sep-14 Listing Mar-14
Promoters 40.4% 40.4% 40.4% -
FII 2.8% 1.6% 3.9% -
DII 4.0% 8.4% 15.0% -
Bodies Corporate 5.9% 4.9% 2.1% -
Others 47.0% 44.7% 38.6% -
Total 100.0% 100.0% 100.0% -
Snowman Logistics Limited (SNOWMAN)Initiating Coverage
Source: Company, Anand Rathi Research, Bloomberg
V
A
L
U
E
P
I
C
k
Key Data
RISK MEDIUM
Bloomberg Code SNLL IN
NSE Code SNOWMAN
Sector Logistics
Industry Cold Chain Logistics
Face Value (`) 10
BV per share (`) 18
Dividend Yield (%) N.A.
52 Week H/L(`) 75 / 135
Market Cap. (` mn.) 12,725
(In `mn) FY13 FY14 FY15E FY16E
Net Sales 1,534 1,974 2,625
EBITDA 255 380 488 685
EBITDA Margin 22.4% 24.8% 24.7% 26.1%
EPS (`) 1.8 1.8 1.1 1.9
EV/Sales 12.0 8.9 6.9 5.2
EV/EBITDA 53.5 35.9 27.9 19.9
P/E (x) 41.4 42.2 72.5 39.6
Price Performance CY12 CY13 CY14 YTD
Absolute - - 111% -22%
Relative - - 80% -25%
Analyst: Narendra [email protected]
Relative stock performance (Sep’14=100)
CMP: `76
Target: `116
Shareholding Pattern (as on Dec’14)
75
100
125
150
175
Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15
SNOWMAN NIFTY
2 Anand Rathi Research
Founded in 1993 and commenced operation in 1998, Snowman Logistics Limited (Snowman) is an integratedtemperature controlled logistics services provider with an ability to service customers on a pan-India basis.
Snowman is promoted by Gateway Distriparks Limited, a leading supply chain logistics company.
The company operates primarily in warehousing (both Temperature Controlled Services (TCS) & Ambient) andtransportation (both TCS & Ambient). Under TCS the company offers cold storage warehouses and reefertransportation services to its clients while Ambient services caters to non temperature controlled warehousing andtransportation.
During the latest financial year (FY-14), the company has reported a ~35% growth in sales at ~153.4 millions asagainst ~1137 million. Its EBITDA stood at ~380 million in FY-14 as against ~255 million.
On segment basis, the company’s revenue from warehousing business stood at ~766.3 million in FY-14 whiletransportation business contributed ~743.9 million.
Snowman has currently warehouses at 23 locations across 14 locations. It operates 370 reefer vehicles of which 63is owned and 307 leased for primary and secondary distribution.
The company is currently has approx. 85,000 pallets capacity at its warehouses comprising 82,000 under TCS andremaining as ambient. It is also expanding capacity at 6 locations comprising mixture of both extension of existingcapacities and new locations.
In warehousing, the company follow a three-pronged business model Dedicated chamber, Guaranteed space andPay and Park. According to the management, the current mix under these three models stood at approx. 25%, 25%and 50% respectively while overall utilization levels of warehouses ranges from 75% to 85% with some seasonality.
India’s largest integrated cold chain logistics company
Snowman Logistics Limited (SNOWMAN)
3 Anand Rathi Research
The company’s majority of business comes from clients operating into niche business areas including Dairyproducts, Meat & Poultry, Sea food, Ready to eat, Fruits & Vegetables, Healthcare & Pharmaceuticals and QuickService Restaurants (QSR).
Currently organized players like Snowman Logistics Limited have less than 10% share combined in cold chainindustry which is largely dominated by Government agencies and unorganized players.
With a rising demand for integrated niche offering across the country, regionally well spread players like Snowmanare expected to witness both increase volumes and gain market share.
Going ahead, we believe Snowman to maintain its growth of more than 30% for next few years as cold chainmarkets penetrates deeper into the hinterland owing to better infrastructure availability and shifting consumerpreferences.
We initiate our coverage on Snowman Logistics Limited with a BUY rating target and a target price of ₹116 pershare.
…continued
Snowman Logistics Limited (SNOWMAN)
4 Anand Rathi Research
Backed by well known companies throughout its past and present
Year Particulars
1993 Founded as Snowman Frozen Foods Ltd by Amalgam Foods Ltd.
1997 Brooke Bond (India) Limited acquires a 23% stake.
1998 Operations commence in 10 temperature controlled warehouses across India.
2001 Mitsubishi Corporation and Mitsubishi Logistics Corporation jointly acquire a majority stake.
2004 Nichirei Logistics Group Inc. (Japan), acquires a 15% stake.
2006Gateway Distriparks Ltd. (GDL) acquires majority stake by acquiring 6,861,000 equity shares fromAmalgam Foods Limited’s and by subscribing to fresh shares.
2008 Its temperature controlled warehouses get ISO 22000 (Food Safety Policy) certification.
2010 IFC acquires a 20% stake.
2011Expansion of operations in major cities such as Mumbai, Bengaluru and Chennai. Set up ofMevalurkuppam, (near Chennai) and Bengaluru warehouses.
2012 Set up of Taloja (near Mumbai) warehouse.
2013 NVP acquired 14.28% stake. GDL acquires 5,142,500 shares in our Company from IFC.
2014GDL acquires 7,400,000 shares in the Company from Nichirei Logistics Group Inc. toincrease its stake to 54.06%.
2014 Got listed on stock exchanges through an IPO and raised ₹1,974 million.
2015 Acquires two Bangalore based food processing start-ups.
Snowman Logistics Limited (SNOWMAN)
Source: Company, Anand Rathi Research
5 Anand Rathi Research
Offering an end to end logistic solution to customers.
Snowman Logistics
Warehousing Transportation
Services• Distribution
centre• Port Facilities• Customer
Dedicated Facility
Infrastructure• Multi-facility• Blast Freezer (-
40°C)• Freezer (- 25°C to
425C)• Fully Palletized• 100% power
backup.
Distribution Services
Reefer Services• Point to point
service• Part cargo
consolidation & movement
• Chilled, Frozen & Ambient movement
• Real-time location update
Infrastructure• 370 plus fleet size• Real-time Vehicle
Tracking• Real-time
Temperature logging
• Plugin support at facility
Infrastructure• 370 plus fleet size• Real-time Vehicle
Tracking• Real-time
Temperature logging
• Plugin support at facility
Snowman Logistics Limited (SNOWMAN)
Source: Company, Anand Rathi Research
6 Anand Rathi Research
Three pronged business strategy and catering to niche segments to help in maintaining high margins and utilization levels
Dedicated chamber: The entire chamber capacity is sold on a dedicated basis while charging the rentirrespective of client using capacity or not. This is usually for very large clients.
Guaranteed space: A certain number of pallets are guaranteed to the customer, which can be used wheneverrequired. In a case where customer fails to utilize its allotted capacity fully, Snowman can use this capacity forits pay-and-park customers.
Pay and park: Under this model, customers pay for the capacity and store their products. This is for shortterm and small clients.
Business Strategy
Dedicated Chamber
Pay & Park
Guaranteed Space
Segments of service offerings• Seafood• Confectionaries• Fruits & Vegetables• Dairy• QSR• Poultry• Ready to cook• Ice-Cream• Niche segments (Pharma,
X-ray, photo imaging)
Snowman Logistics Limited (SNOWMAN)
Source: Company, Anand Rathi Research
7 Anand Rathi Research
Wide & expanding reach spread across the hinterland…
Snowman’s Major Warehouse Locations and Distribution reach
Temperature Controlled Major Warehouse
Location
Ahmedabad Changodar, Ahmedabad
Bengaluru Virgonagar, Bengaluru
Chandigarh Mubarakpur (near Chandigarh)
Chennai Mevalurkuppam, (near Chennai)
Cochin Ezhupunna (near Cochin)
Delhi Palwal (near Delhi)
Hyderabad Medak, (near Hyderabad)
Kolkata Serampore (near Kolkata)
Kolkata Howrah, Kolkata
Mumbai Taloja (near Mumbai)
Pune Mulshi (near Pune)
Surat Ichhapore, Surat
Visakhapatnam Autonagar, Visakhapatnam
Source: Company, Anand Rathi Research
Snowman Logistics Limited (SNOWMAN)
Source: Company, Anand Rathi Research, Bing Maps
8 Anand Rathi Research
20%
22%
24%
26%
28%
0
400
800
1200
1600
FY-10 FY-11 FY-12 FY-13 FY-14
Revenue EBITDA Margin (RHS)
Snowman has reported a compounding growth of 45% from FY-10 to FY-14, its sales grew from ₹345.7 millionto ₹1534 million during the period.
The growth in sales during the period was mainly due to increase in number of warehouses whichsubsequently led to increase in capacity.
Its EBITDA margins during the period grew from 22.5% in FY-10 to 26% in FY-15.
On operational basis, the contribution to revenue from its two key segments is almost equally distributedwith 5% variation on either side. Revenue from warehousing segment grew ~81% to ₹766 million while itstransportation segment grew ~51% to ₹744 million.
…has helped company grow at faster rates.
0
400
800
1200
1600
FY-13 FY-14
Warehousing Transportation
Source: Company, Anand Rathi Research
Revenue break up in segments (₹ Mn.)Snowman’s revenue (₹ Mn.) and EBITDA margins (RHS)
Snowman Logistics Limited (SNOWMAN)
Source: Company, Anand Rathi Research
9 Anand Rathi Research
With fast growing warehousing industry…
0
6000
12000
18000
24000
2012 2017
Organised Unorganised
The potential growth for the organized and unorganized market:
Total Organized warehouse capacity (Mn. Tons)
The Indian warehousing capacity is largely concentrated with either government entities or unorganizedplayers. The unorganized players accounts for around 85% of the market while organized (modern) warehousesaccounts for the remaining 15%.
This 15% share includes almost all of the cold chain industry players which is still at a nascent stage in Indiadespite being one of the largest producer of perishables.
Due to lack of facilities available, India stores only two percent of its horticulture products in temperature-controlled conditions, while China stores 15 percent and Europe and North America stores 85 percent of theirproducts in such conditions.
0
10
20
30
40
CentralWarehousingCorporation
(CWC)
State CivilSupplies
CooperativeSector
PrivateSector
StateWarehousingCorporations
(SWCs)
FoodCorporationof India (FCI)
Snowman Logistics Limited (SNOWMAN)
Source: Govt. of India, Company, Anand Rathi Research Source: Company, Anand Rathi Research
10 Anand Rathi Research
…and lack of cold storage availability in the countr.
Cold Storage availability in India
India has reported a production of about 280 million tons of horticulture produce in year 2013.
However, adequate cold storage facilities are available for just about 10% of its entire production whereas, ofthe total annual production, about 35% is wasted before it reaches for final consumption.
As per government estimates during the peak production period, gap between the demand and supply ofcold storage capacity is approx. 25-30 million tons.
While the existing cold storage capacity is concentrated in terms of both number and capacity in the northernregion of the country and primarily in Uttar Pradesh and West Bengal which contain around 65 percent of thecold storage units in the country and the rest are spread across India.
Central, 6.0%
East/ North East, 27.3%
North, 52.1%
South, 6.8%
West, 7.8%
Region wise cold storage capacity in India
Snowman Logistics Limited (SNOWMAN)
Source: CrossTree, Anand Rathi Research Source: Govt. of India, Company, Anand Rathi Research
0
7500
15000
22500
30000
0
1750
3500
5250
7000
No. of Cold Storage Installed Capacity ('000 Tons) (RHS)
11 Anand Rathi Research
Presents a high growth opportunity for cold chain logistics industry.
0
15
30
45
60
0
175
350
525
700
2009 2010 2011 2012 2013F 2014F 2015F 2016F 2017F
Value ₹ Bn. Capacity (Mn. Tons)- RHS
Growth of Indian Cold Chain industry
Storage88%
Transport12%
Cold Chain Industry key segments
To improve the availability of perishables across the country, Government has introduced several policymeasures like capital subsidy, accelerated depreciation, exemption of taxes along with others.
India’s cold chain industry has started to show signs of turnaround as several private players have venturedinto the business after sustained government push and increase in urbanization.
The industry has added capacity at growth rate of ~14% per year since 2009 which currently stood at 30million ton and is expected to continue to grow at ~13% until 2017 achieving 50 million ton capacity.
Snowman Logistics Limited (SNOWMAN)
Source: Company, Anand Rathi Research Source: Company, Anand Rathi Research
12 Anand Rathi Research
With growth driver present across various sectors
Gro
wth
dri
vers
fo
r C
old
Ch
ain
ser
vice
s
Drivers for increased
penetration in Cold Chain
Consumption of Perishable products
High growth of niche segments
Organized Retail
Food Processing
Food Joints / Outlets
Perishable exports/importsandincrease in consumption
Increasing population
Increase in per capita consumption
Reduction of wage
Retention of freshness & Quality
Wider spread of availability
Integration
Technology improvement
Incr
easi
ng
pla
y fo
r o
rgan
ised
pla
yers
wh
o c
an
inve
st in
bu
ildin
g sc
ale
in c
old
ch
ain
.
Drivers in the TCL industry
Snowman Logistics Limited (SNOWMAN)
Source: Company, Anand Rathi Research
13 Anand Rathi Research
…ranging from both growing consumption of perishables, QSR…
0
40
80
120
160
0
500
1000
1500
2000
Standalone Leisure (RHS) Retail (RHS)
Food services outlets (‘000)
0
200
400
600
800
QSR industry size (₹ Bn.) Food Service Industry size (₹ Bn.)
2011 2015
Food Service and QSR industry (₹ Bn.)
With increasing urbanization and growth of organized retail, food servicing and food processing sector areboosting the growth of cold chain industry in India.
This has led the trend to shift towards establishing multipurpose cold storages and providing end to endservices to control parameters throughout the value chain.
Quick Service Restaurants (QSR) in India is expected to grow at 30% per year while food service industry togrow at 10% per annum. In value terms, QSR market is likely to be around ₹95 billion while food serviceindustry at ₹675 billion.
Snowman Logistics Limited (SNOWMAN)
Source: Logistics Times, CrossTree, Anand Rathi Research Source: Logistics Times, CrossTree, Anand Rathi Research
14 Anand Rathi Research
…to high margins niche and specialized offerings.
0
600
1200
1800
2400
2007 2008 2009 2010 2011 2012 2013 2014 2015
Pharmaceutical Industry Production (₹ Bn.) Segment Growth outlook
Seafood 12.50%
Confectionaries 14%
Fruits & Vegetables High growth
Dairy 10%
QSR 30%
Poultry 14%
Ready to cook 10%
Ice-Cream 19%
Niche segments High growth
Pharmaceutical industry is one of the largest and niche users of temperature controlled industry. India, whichis world leader in export of bulk drugs and generic drugs coupled with large distribution requirements forinternal demand.
Over the years, change in lifestyle and increase in awareness has contributed to shifts in types of disease andpreventive care. This has led to increase in demand of temperature sensitive drugs which relies on companiesoffering end to end temperature controlled services.
Along with niche players, demand for TCS is expected to remain healthy in near future.
Snowman Logistics Limited (SNOWMAN)
Source: Anand Rathi Research Source: Company, Anand Rathi Research
15 Anand Rathi Research
24%
25%
26%
27%
28%
0
950
1900
2850
3800
FY-14 FY-15E FY-16E FY-17ERevenue EBITDA Margin (RHS)
Snowman, being a leader in temperature controlled services is well poised to benefit from this opportuinity.
Currently organised players like Snowman Logistics Limited have less than 10% share in cold chain industry whichis still largely dominated by Government agencies and unorganized players.
With a rising demand for integrated niche offering across the country, regionally well spread players likeSnowman are expected to witness both increase volumes and gain market share.
Snowman has currently 85,000 pallets capacity which is expected to cross 1,00,000 pallets by FY-16 and fromthere on it plans to add 25,000 pallets per year capacity for few more years.
We have taken note of this and have included it into our forecast, we believe Snowman to continue to grow athigher rate and is well placed to lead cold chain logistics industry amongst its peers.
We believe the stock is currently trading at attractive valuation owing to the long term prospects.
Revenue (₹ Mn.) projection and EBITDA margins
Snowman Logistics Limited (SNOWMAN)
Source: Anand Rathi Research
16 Anand Rathi Research
The private equity deals and its valuations of existing small private players too indicate the large growth opportunity.
Company NameDate of
AnnouncementInvestor / Fund
Amount Raised (Mn.)
Stake/Valuation Sales (Mn.)
Shree Shubham Logistics (Kalpataru Power) 20-Feb-15 IPO (DRHP Filed) ₹ 2,100 - ₹3,780 (FY-14)
IG Supply Chain 11-Feb-15 IG International ₹ 1,500 - -
VRL Logistics 22-Dec-14 IPO (DRHP Filed) ₹ 1,420 - -
Gati Kausar (Gati Limited) 27-Oct-14 Mandala Capital $ 24 Upto 30% ₹ 35.8 (FY-14)
Brattle Foods 27-Oct-14 Future Supply Chain $ 20 1
Allfresh Supply Management 01-Oct-14 Aspada Investment $ 2 - -
Schedulers Logistics 09-Jun-14 Aspada Investment $ 2 - -
Shree Shubham Logistics (Kalpataru Power) 15-Apr-14 Tano Capital ₹ 800 -₹ 3779.8 (FY-
14)
Star Agriwarehousing 03-Apr-14 Temasek ₹ 2,500 ~26%-30% -
ThinkLink Supply Chain 07-Jan-14 Aspada Investment $ 1.6 - -
Lawrencedale Agri Processing 17-Apr-13 Aspada Investment - -
Star Agriwarehousing 23-Feb-12 IDFC Alternatives ₹ 1,500 ~26%-30% -
RR Enterprises 01-Jan-11 Kuehne+Nagel (K+N) ₹ 400-500 - -
Coldex (Swastik) 23-Dec-10 India Equity Partners $ 10 - -
Siesta Logistics 22-Dec-10 Ashmore Alchemy $ 10 - -
Sical Logistics 01-Dec-10 Coffee Day $ 35.4 ~53% -
Coldstar Logistics 18-May-10 Tuscan Ventures ₹ 1,500 100% ₹ 193.3 (FY-13)
Flyjac Logistics Pvt Ltd 01-May-10Hitachi Transport System
$ 56.1 1 -
Snowman Logistics Limited (SNOWMAN)
Historical Private Equity (PE) deals
Source: Public websites, Anand Rathi Research
17 Anand Rathi Research
Currently organized players like Snowman Logistics
Limited have less than 10% share combined in cold
chain industry which is largely dominated by
Government agencies and unorganized players.
With a rising demand for integrated niche offering
across the country, regionally well spread players like
Snowman are expected to witness both increase
volumes and gain market share.
Going ahead, we believe Snowman to maintain its
growth of more than 30% for next few years as cold
chain markets penetrates deeper into the hinterland
owing to better infrastructure availability and shifting
consumer preferences
At CMP the stock is trading at 40x times FY-16E and
26x FY-17E earnings.
We initiate coverage on Snowman Logistics Limited
with a BUY rating and a target price of ₹116 per share.
Relative stock performance (Sep’14=100)
Valuation and Recommendation:
Source: Bloomberg, Anand Rathi Research
Source: Company, Anand Rathi Research
Snowman Logistics Limited (SNOWMAN)
75
100
125
150
175
Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15SNOWMAN NIFTY
(In ₹ mn) FY-13 FY-14 FY-15E FY-16E
EPS (₹) 1.8 1.8 1.1 1.9
P/E (x) 41.4 42.2 72.5 39.6
P/B (x) 6.1 4.3 3.0 2.8
ROE 15% 10% 4% 7%
ROCE 8% 8% 7% 9%
EV/EBIDTA (x) 53.5 35.9 27.9 19.9
18 Anand Rathi Research
Margins FY13 FY14 FY15E FY16E
Sales Growth % 85.2% 34.9% 28.7% 33.0%
Operating Margin % 22.4% 24.8% 24.7% 26.1%
Net Margin % 16.7% 14.7% 8.9% 12.2%
Consolidated Financials:
Source: Company, Anand Rathi Research
(In `mn) FY-13 FY-14 FY-15E FY-16E
Net Sales 1,137 1,534 1,974 2,625
Operating Expense 882 1,154 1,487 1,940
EBITDA 255 380 488 685
Other Income 4 18 8 52
Depreciation 91 150 171 236
EBIT 168 249 325 501
Interest 24 112 108 104
PBT 144 137 217 397
Tax (46) (88) 41 75
PAT 190 225 176 321
(In `mn) FY-13 FY-14 FY-15E FY-16E
Liabilities
Equity Share Capital 1,029 1,241 1,664 1,664
Reserves & Surplus 263 972 2,548 2,869
Long-Term Liabilities 909 904 904 904
Other Long-term Liabilities 4 2 2 2
Deferred Tax Liability (47) (164) (164) (164)
Short-term Liabilities 236 765 949 1,266
Total 2,394 3,721 5,904 6,542
Assets
Net Fixed Assets 1,895 2,924 3,241 4,665
Long-Term L&A 112 168 168 168
Other Non-Current Assets 1 1 1 1
Current Asset 386 627 2,493 1,707
Total 2,394 3,721 5,904 6,542
Snowman Logistics Limited (SNOWMAN)
19 Anand Rathi Research
Sudden loss of key clients may impact company’s topline growth and our projections.
Extreme volatile crude prices may increase cost for the company and impact profitability.
Key Risks:
Snowman Logistics Limited (SNOWMAN)
20 Anand Rathi Research
Snowman Logistics Limited (SNOWMAN)
Rating and Target Price history:
Date Rating Target Price (`) Share Price (`)
27-Mar-15 BUY 116 76
SNOWMAN rating detailsSNOWMAN rating history & price chart
Source: Bloomberg, Anand Rathi Research Source: Bloomberg, Anand Rathi Research
NOTE: Prices are as on 26th March, 2015 close.
75
100
125
150
175
Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15
SNOWMAN NIFTY
21 Anand Rathi Research
Snowman Logistics Limited (SNOWMAN)
Disclaimer:
Research Disclaimer and Disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014
Anand Rathi Share and Stock Brokers Ltd. (hereinafter refer as ARSSBL) (Research Entity) is a subsidiary of the Anand Rathi Financial Services Ltd. ARSSBL is a corporate
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exchange and also depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd. ARSSBL is engaged into the business of
Stock Broking, Depository Participant, Mutual Fund distributor.
The research analysts, strategists, or research associates principally responsible for the preparation of Anand Rathi Research have received compensation based upon
various factors, including quality of research, investor client feedback, stock picking, competitive factors, firm revenues.
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constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. The
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purchase or sale of any security, derivatives or any other security through ARSSBL nor any solicitation or offering of any investment /trading opportunity on behalf of
the issuer(s) of the respective security (ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the
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aspects of any potential investment.
Continued…
22 Anand Rathi Research
Snowman Logistics Limited (SNOWMAN)
Disclaimer:
Contd.
Opinions expressed are our current opinions as of the date appearing on this Research only. We do not undertake to advise you as to any change of our views expressed in this Report. Research Report may differ between ARSSBL’s RAs and/ or ARSSBL’s associate companies on account of differences in research methodology, personal judgment and difference in time horizons for which recommendations are made. User should keep this risk in mind and not hold ARSSBL, its employees and associates responsible for any losses, damages of any type whatsoever.
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otherwise.
Contd.
23 Anand Rathi Research
Snowman Logistics Limited (SNOWMAN)
Disclaimer:
Contd.
Statements on ownership and material conflicts of interest, compensation - ARSSBL and Associates
Sr. No.
Statement
Answers to the Best of the knowledgeand belief of the ARSSBL/ itsAssociates/ Research Analyst who ispreparing this report
1ARSSBL/its Associates/ Research Analyst/ his Relative have any financial interest in the subject company? Nature of Interest (if applicable), is givenagainst the company’s name?. NO
2
ARSSBL/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject company, at theend of the month immediately preceding the date of publication of the research report or date of the public appearance?. NO
3ARSSBL/its Associates/ Research Analyst/ his Relative have any other material conflict of interest at the time of publication of the research report or atthe time of public appearance?. NO
4 ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation from the subject company in the past twelve months. NO
5ARSSBL/its Associates/ Research Analyst/ his Relative have managed or co-managed public offering of securities for the subject company in the pasttwelve months.
NO
6ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation for investment banking or merchant banking or brokerageservices from the subject company in the past twelve months. NO
7
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation for products or services other than investment banking ormerchant banking or brokerage services from the subject company in the past twelve months. NO
8ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation or other benefits from the subject company or third party inconnection with the research report. NO
9 ARSSBL/its Associates/ Research Analyst/ his Relative have served as an officer, director or employee of the subject company. NO
10 ARSSBL/its Associates/ Research Analyst/ his Relative has been engaged in market making activity for the subject company. NO