symphony ltd share price Management discussions

Global economic review

The global economy grew at an estimated 5.9% in 2021, compared to a de-growth of 3.3% in 2020. This improvement was largely due to the increased vaccination rollout the world over and a revival in economic activity based on catchup consumption.

The global economic recovery is attributed to accelerated vaccine rollout across 4.4 billion people, around 56% of the global population (single dose). The spot price of Brent crude oil increased 53.34% from US$ 50.37 per barrel at the beginning of 2021 to US$ 77.24 per barrel at the end of the calendar year, strengthening the performance of oil exporting countries and moderating growth in importing nations. Global FDI reported an increase from US$929 billion in 2020 to an estimated US$1.65 trillion in 2021.

The global economy was affected by prohibitive shipping freight rates, a shortage of shipping containers and semiconductor chips in 2021, affecting global economic recovery. Inflation was at its highest since 2011, especially in the advanced economies, catalysed by a run up in commodity prices. Some emerging and developing economies were positioned to withdraw policy support to contain inflation even as the economic recovery was still incomplete.

The prominent feature of the global economic activity during the year under review was a sharp revival in commodity prices to record levels, following the drop at the time of the pandemic outbreak. The commodities that reported a sharp increase in prices comprised steel, coal, oil, copper, food grains, fertilisers and gold.

The global economy is projected to grow at a modest 2.6% in 2022 following the Russia-Ukraine crisis. A higher interest rate environment could affect emerging markets and developing economies with large foreign currency borrowings and external financing needs in 2022.

Regional growth (%) 2021 2020
World output 5.9 (3.3)
Advanced economies 5.0 (4.9)
Emerging and developing economies 6.3 (2.4)

(Source: IMF, World Bank, UNCTAD)

Performance of major economies

United States: The country reported a GDP growth of 5.7% in 2021, compared to a de-growth of 3.4% in 2020, following the governments investment of trillions of dollars in COVID relief.

China: The countrys GDP grew 8.1% in 2021, compared to 2.3% in 2020, despite it being the novel coronavirus epicentre.

United Kingdom: The countrys GDP grew 7.5% in 2021, compared to a 9.9% de-growth in 2020. Japan: The country reported a growth of 1.7% in 2021, following a contraction in the previous year.

Germany: The country reported a GDP growth of 2.9% in 2021, compared to a decline of 4.9% in 2020.

(Source: World Bank, IMF, Business Standard, Times of India)

Indian economic review

The Indian economy reported an attractive recovery in FY2021-22, its GDP rebounding from a de-growth of 7.3% in FY2020-21, to a growth of 8.7% in FY2021-22. By the close of FY2021-22, India was among the six largest global economies. Its economic growth rate was the fastest among major economies, except China. Its population is around 1.40 billion, the second most populous in the world and its rural under-consumed population, arguably, is the largest in the world.

Y-o-Y growth of the Indian economy
Regional growth (%) FY2018-19 FY2019-20 FY2020-21 FY2021-22
Real GDP growth (%) 6.1 4.0 (6.6) 8.7%

Growth of the Indian economy, FY2021-22




Regional growth (%) Q1, FY2021-22 Q2, FY2021-22 Q3, FY2021-22 Q4, FY2021-22
Real GDP growth (%) 20.1 8.4 5.4 4.1%

The Indian economy was affected by the second wave of the pandemic that affected economic growth towards the fag end of the previous financial year and across the first quarter of the financial year under review. The result was that after a growth of 1.6% in the last quarter of 2020-21, the Indian economy grew 20.1% in the first quarter of FY2021-22 due to the relatively small economic base during the corresponding period of the previous year.

Indias monsoon was normal in 2021 as the country received 99.32% of a normal monsoon, lower though than in the previous year. The estimated production of rice and pulses recorded volumes of 127.93 million tonnes and 26.96 million tonnes respectively. The total oilseeds production of the country recorded a volume of 371.47 million tonnes. Moreover, based on the spatial and temporal distribution of the 2021 monsoon rainfall, the agricultural gross value added (GVA) growth in FY2021-22 is anticipated to be 3-3.5%. The countrys manufacturing sector grew an estimated 12.5 per cent, the agriculture sector 3.9%, mining and quarrying grew 14.3%, construction grew 10.7% and electricity, gas and water supply grew 8.5% in FY2021-22.

There were positive features of the Indian economy during the year under review.

India attracted the highest annual FDI inflow of US$ 83.57 billion in FY2021-22, a validation of global investing confidence in Indias growth story. The government approved 100% FDI for insurance intermediaries and increased FDI limit in the insurance sector from 49% to 74% in the Union Budget 2021-22.

India surpassed the H88,000 crores target set for asset monetisation in FY2021-22, rising over H97,000 crores with roads, power, coal, mining and minerals accounting for a large chunk of the transactions. The Indian government launched a four-year asset monetisation plan worth H6 lac crores. The plan includes roads and highways, pipelines, power transmission lines, telecom towers, railways station redevelopment, private trains, tracks, goods sheds, dedicated freight corridor, railways stadiums, airports, projects in major ports, coal mining projects, mineral mining blocks, national stadia, redevelopment of colonies and hospitality assets. In 2021, India was the largest recipient of global remittances. The country received US$ 87 billion during 2021, with the US being the largest source (20%). Indias foreign exchange reserves stood at an all-time high of US$ 642.45 billion as on September 3, 2021, crossing US$ 600 billion in foreign exchange reserves for the first time.

Indias currency weakened 3.59% from H73.28 to H75.91 to a US dollar, through FY2021-22. The consumer price index (CPI) of India stood at an estimated 5.3% in FY2021-22. India reported improving Goods and Services Tax (GST) collections month-on-month in the second half of FY2021-22, following the relaxation of the lockdown, validating the consumption-driven improvement in the economy. The country recorded its all-time highest GST collections in March, 2022 standing at H1.42 lac crores, which is 15% higher than the corresponding period in 2021. India ranked 62nd in the 2020 World Banks Ease of Doing Business ranking. The country received positive FPIs worth H51,000 crores in 2021 as the country ranked fifth among the worlds top leading stock markets with a market capitalisation of US$3.21 trillion in March, 2022.

The fiscal deficit was estimated at

~ H15.91 trillion for the year ending March 31, 2022 on account of higher government expenditure during the year under review. Indias per capita income was estimated to have increased 16.28% from H1.29 lac in FY2020-21 to H1.50 lac in FY2021-22 following a relaxation in lockdowns and increased vaccine rollout.

Indias tax collections increased to a record H27.07 lac crores in FY2021-22 compared with a budget estimate of H22.17 lac crores. While direct taxes increased 49%, indirect tax collections increased 30%. The tax-to-GDP ratio jumped from 10.3% in FY2020-21 to 11.7% in FY2021-22, the highest since 1999. Retail inflation spiked to a 17-month high in March, 2022, above the upper limit of the RBIs tolerance band for the third straight month.

(Source: Economic Times, IMF, World Bank, EIU, Business Standard, McKinsey, SANDRP, Times of India, Livemint,, Indian Express, NDTV, Asian Development Bank)

Indian economic reforms and Budget 2022-23 provisions

The Budget 2022-23 seeks to lay the foundation of the Indian economy over the ‘Amrit Kaal period of the next 25 years leading to 100 years of independence in 2047. The government is emphasizing the role of PM Gati Shakti, inclusive development, productivity enhancement and investment, sunrise opportunities, energy transition and climate action, as well as financing of investments. The capital expenditure target of the Indian government expanded by 35.4% from H5.54 lac crores to H7.50 lac crores. The effective capital expenditure for FY2022-23 is seen at H10.7 lac crores. An outlay of H5.25 lac crores was made to the Ministry of Defence, which is 13.31% of the total budget outlay. A boost was provided to Indias electric vehicle policy ‘Scheme for Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle in India. An announcement of nearly H20,000 crores was made for the PM Gati Shakti National Master Plan to catalyse the infrastructure sector. An expansion of 25,000 km was initiated for 2022-23 for the national highways network. To boost the agricultural sector, an allocation of H2.37 lac crores was made towards the procurement of wheat and paddy under MSP operations. An outlay of H1.97 lac crores was announced for the Production Linked Incentive (PLI) schemes across 13 sectors.


Indias medium-term optimism is derived from the fact that three down cycles – long-term, medium-term and short-term – could well be reversing at the same time. The long-term downtrend, as a result of non-performing assets, scams and overcapacity could be over. The medium-term downtrend that was caused by the ILFS crisis, select banks collapse and weakening NBFCs could well be over. The short-term downtrend on account of the pandemic has weakened following the acceleration of the vaccine rollout.

There is a possibility of each of these downtrends playing out, which could well lead to a multi-year revival in capital investments. About US$ 500 billion worth of investments are expected to be made in wind and solar infrastructure, energy storage and grid expansion.

The Indian economy is projected to grow by 7.5% in FY2022-23 (World Bank estimate), buoyed by tailwinds of consistent agricultural performance, flattening of the COVID-19 infection curve, increase in government spending, favourable reforms and an efficient roll-out of the vaccine leading to a revival in economic activity.

Across the next three years, capital expenditure in core sectors - cement, metal, oil refining and power - should be about H5 trillion. Besides, the governments production linked incentives (PLI)–led capex should generate an incremental H1.4 trillion in sectors like consumer durables, pharmaceuticals and automobiles.

Global consumer electronics market

The global consumer electronics markets revenue trade value amounts to US$ 1,056,693 million in 2022. The market is anticipated to grow at a CAGR of 1.82% annually by 2026. In the consumer electronics market, volume is expected to amount to 8,947.8 million pieces by 2026. The consumer electronics market growth is attributed to the increasing disposable income of consumers, growing urbanization and consumers preference for advanced technology. Although, low market penetration in underdeveloped nations, increasing technological convergence to introduce one device for multiple functions and the availability of replicated electronic products are posing challenges to market growth. Besides, rapidly transforming lifestyles of customers and the increased reliance of consumers on electronics goods are estimated to boost the growth of the consumer electronics market. Telephony is the largest segment in the market with a market volume of US$ 482,892 million in 2022. China has generated the maximum revenues worth US$ 250,911 million in 2022. In relation to total population figures, per person revenues of US$138.8 are generated in 2022. The market players are investing in R&D to initiate new advanced eco-friendly electronics to enhance the market revenue and increase its footprint (Source: Statista,

Indian appliances and consumer electronics industry

The Indian consumer electronics market revenue is valued at US$71,177 million in 2022. The market is expected to grow at a CAGR of 5.76% annually by 2026.With increased demand for premium and technologically advanced products, Indias H75,000 crores appliances and consumer electronics industry is expected to witness a double-digit growth in 2022, despite concerns due to the semiconductor shortage and the effect of the spreading omicron variant on business. The double-digit annual growth is expected on account of a probable price correction after softening raw material inputs, positive sentiment, pent-up demand release and improving economic conditions. In the consumer electronics market, volume is expected to amount to 937.6 million pieces by 2026. The market is estimated to report a volume growth of 2.5% in 2023. Moreover, transformations in consumer behaviour from price consciousness towards technologically advanced premium products with quality, value proposition and safety aspects are steering the increase in demand for home automation products, making the industry optimistic. The government introduced production linked incentive scheme for white goods with an investment of H4,614 crores which is expected to provide opportunities for sectorial growth. Many manufacturers are getting ready to make the most out of the opportunity along with undertaking measures for moderating their reliance on imports and make products more affordable. However, the appliances and consumer electronics industry will also have to face the challenge of shortage of semiconductors, which led to a delay in the new launches of smart and connected products. At present, increased prices are expected to dampen consumer demand. Eventually, the commodity prices are expected to stabilise following a probable decline in global freight and raw material cost leading to a positive impact on consumer demand. The online retail market is dominated by the consumer electronics and appliances segment. In the consumer electronics market, 16.9% of the total revenue will be generated through online sales by 2022. In the coming years, more users are expected to participate in online shopping particularly in this segment. (Source: Statista, Economic Times)

Indian air coolers market

Air-coolers have evolved among the fastest growing segments across the consumer appliances arena. They are energy-efficient, facilitate reduction in power consumption, are eco-friendly and can cool efficiently. They offer exceptional air quality and abstain from making the air excessively dry. They do not utilise harmful cooling agents (CFC or HFC), reduce the electricity bill by ~90% as against ACs and costs appealingly less compared to the air conditioners. The air cooler industry in India is expected to reach H90 billion in the next few years on account of increased incomes and temperatures, widened market presence, increased aspirations and a cost advantage over air conditioners. The government reforms for rural development, increased urbanization, discretionary spending, revised industrial norms along with the upcoming stream of projects in the residential sector are expected to catalyse the demand for desert air coolers in the country across the foreseeable future.

Moreover, tower and personal air coolers are expected to increase their share in the succeeding years due to the transforming consumer preferences for new and innovative products, growing e-commerce sales, rising brand variants and stock-keeping units (SKUs). Following the introduction of GST, branded air coolers are penetrating deeper, moderating the gap between the organised and unorganised market players.

Sectorial growth drivers

Global warming: The average global temperature in 2021 stood at 1.11?C above the pre-industrial (1850-1900) levels. 2021 is the 7th consecutive year (2015-2021) where the global temperature stood at more than 1?C above pre-industrial levels, according to the World Meteorological Organisation.

Young population: India has a young population with more than 65% of its population below the age of 35 years and more than 50% of its population below the age of 25. The median age of the country is 28.4 years, an economically productive age compared to the global average of 31 years.

Increasing urbanization: In 2021, the urban population of India was 35.4 %. Over the last 50 years, urban population of India grew substantially from 20.3% to 35.4 %. By 2030, the urban population is expected to reach 40%, enhancing aspirations and driving the demand of air cooler market.

Non-metro markets: Over the past decade, non-metro cities have witnessed the fastest growth in consumption, which has led to their emergence as promising economic growth centres.

Digital penetration: Indias e-commerce market is expected to reach US$ 200 billion by 2026 and US$ 350 billion by 2030. Increasing urbanisation along with growing internet penetration is expected to broaden the Indian e-commerce sector. The number of internet users is expected to enhance by 45% to reach 900 million active internet users by 2025.

Rural development: The government reinforces electricity connectivity across all the cities and villages of India, extending the electrical appliances market.

Working population: India adds 12 million people to its workforce each year. The proportion of the working age population in India is estimated to enhance from 61% in 2011 to 65% in 2036. Growing working population is expected to boost the growth of the air cooler segment.

Technological inventions:

Technological innovations such as smart locks, feather-touch digital control panels, remote controls, auto swings, alarms and other alcove characteristics have become popular compared to technologically backdated products of the unorganised segment.

Reduced penetration: Indias consumer durables market is underpenetrated compared with other countries and offers headroom for growth. Electronic items, which were formerly considered luxury items are likely to become basic necessities

Organised retail: The enhanced visibility of products in Tier II, III and IV cities is on account of inroads created by organised retailers. (Source: Business Standard, worldometer, knoema, Hindustan Times, Economic Times, Statista)

Threat of substitutes (Low) Bargaining power of suppliers (Medium) Bargaining power of buyers (High) Rivalry among competitors (High) Threat of new entrants (High)
• Cost-effective technology • Low product differentiation • Use of technology and internet in knowing the features of the product • Multitude of players competing with each other • Low working- capital intensive
• Low substitution power among the masses • Low price differentiation • Product homogeneity • Distribution and consumer perception synergy with other consumer durable categories
• Strong product differentiation vis-?-vis alternative cooling technologies • Suppliers for select raw materials and bought-out- parts are large and have high pricing power. • Low product and category switching cost • Low brand switching cost • Reduced brand loyalty


The Indian air cooler market is expected to report sustainable growth on account of growing rural electrification and disposable incomes. The residential sector is expected to dominate the Indian air-cooler market on account of the vast percentage of the population in lower and middle-income groups and housing development plans of the government. The industrial and commercial segments are expected to witness a significant growth in demand as select industry players introduce cooling solutions. (Source: Research Market)

Company overview

Profile: Incorporated in 1988, Symphony Limited is a premiere player in the countrys cooling sector with an experience across three decades. The Company deals in designing, branding and marketing residential, commercial and industrial air coolers for the domestic and international markets. The operations of the Company comprise two sections: production of air coolers and treasury management.

Products: The Company manufactures products for the residential, commercial and industrial segments. Its residential portfolio includes models such as tower, personal, desert, room and window air-coolers. The Companys commercial air-coolers are popular in open restaurants, showrooms, large halls and party plots. The Companys industrial air coolers greatly fulfill the increasing demand from factories, schools, malls, assembly halls, warehouses and metro stations, among others. The Company offers services to industries such as banking, automobile, packaging, distilleries and railways.

Footprint: The Companys headquarter is located in Ahmedabad and has subsidiary companies in Mexico, China, USA, Brazil and Australia. The Company focusses on creative design for manufacturing exceptional and energy saving products for domestic and industrial consumption not only in India but in more than 60 countries.

Manufacturing: Symphony possesses long-standing engagements with more than ten OEMs in India and abroad for manufacturing of the state-of-the-art air coolers. Global subsidiaries of the Company have been steadily enhancing capital-light competitiveness.

Technology: The Company has invested in state-of-the-art technologies like SAP-HANA, CRM and data analytics that offers a strategic competitive advantage over the competitors.

Sustainability: The Company pioneered energy-efficient products to reduce emissions and enhance energy conservation.

Financial overview

The Companys consolidated gross revenue stood at H1,079 crores in FY2021-22, compared to H931 crores in FY2020-21. The EBITDA of the Company (excluding exceptional items) stood at H201crore in FY2021-22, compared to H170 crores in the previous year. The Company registered a PAT of H121 crores in FY2021-22 compared to H107 crores in FY2020-21.

Key ratios

Please refer to Note no. 47 of the Standalone Financial Statements.

Information technology

We are getting mature in our digital transformation journey, adding new repetitives under the umbrella of process automation. We implemented robotic process automation in processing vendor invoices with the objective to reduce manual effort, improve productivity and enhance accuracy. To improve customer transparency, the Company introduced the customer account reconciliation through RPA. The customer statement is generated automatically through RPA, signed off and uploaded.

Technology transformation is a double-edged sword and comes with IT security risks; we implemented data loss prevention, mobile device management and an active directory for data security.

Human resource management

The Company considers its people to be its biggest asset and credits its sustained improvements to their ethics, dedication and energy. It endeavours to offer a work environment that promotes creativity, teamwork, meritocracy, learning and leadership. During the critical time that all have been facing for the last two years owing to COVID-19, the Human Resource Management became keener on employee safety, ensuring 100% employee vaccination.

The management focused on emotional and cultural adaptation of employees joining the organization after the COVID-19 work from home facility by creating a mentorship program where experienced leaders help new joining employees to blend into the work environment.

The Symphony employment base was ~473 as on March 31, 2022, while the work strength was ~690, including overseas subsidiaries. Symphony Learning Centre, an online Learning Management System, was launched to build skill sets across employees regardless of their location. Under the Leadership Development Program, curated individual development plans were prepared for high potential employees to create a leadership pipeline. All HR interventions and culture of high trust resulted in a Great Place to Work certificate in May, 2022.

Internal control systems and their adequacy

The Companys internal audit system was monitored and updated to ensure that assets were safeguarded, established regulations complied with and pending issues addressed promptly. The design and effectiveness of internal controls were assessed during the year. This provided reasonable assurance across multiple functions and locations through extensive documentation reviews, enquiries, testing and other procedures as considered appropriate. Based on the assessment of internal audit, process owners undertook corrective action to strengthen the controls on an ongoing basis. The audit committee review reports were presented by the internal auditors and statutory auditors on a routine basis. The committee makes note of the audit observations and takes corrective actions, if necessary. The Company continues to maintain constant dialogue with statutory and internal auditors to ensure that internal control systems are operating effectively.

Cautionary statement

The Management Discussion and Analysis report containing your Companys objectives, projections, estimates and expectations may constitute certain statements, which are forward-looking within the meaning of applicable laws and regulations. The statements therein could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operation include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in the governmental regulations, tax regimes, forex markets, economic developments within India and the countries with which the Company conducts business and other incidental factors.

Boards Report

Your directors are pleased to present the Companys 35th Annual Report on business and operations, together with the audited financial statements for the year ended March 31, 2022.

Highlights of results and state of companys affairs

(Rs in crores)




2021-22 2020-21 2021-22 2020-21
Revenue from Operations & Other Income 679.18 523.59 1079.01 931.24
Profit before Financial Charges, Depreciation & Taxation 152.94 152.37 200.62 163.27
Less: Financial Charges 0.96 0.08 8.92 10.71
Less: Depreciation & Amortisation Expenses 5.68 5.16 24.18 21.42
Profit Before Tax 146.30 147.13 167.52 131.14
Less: Income Tax 31.68 34.85 35.25 35.67
Less: Provision for tax of earlier years 0.72 (0.90) 0.72 (0.90)
Less: Deferred Tax Liability 3.09 0.83 10.69 (11.01)
Profit After Tax 110.81 112.35 120.86 107.38
Less: Non-controlling Interest - - 0.55 0.04
Profit After Tax attributable to the shareholders 110.81 112.35 120.31 107.34
Other comprehensive income (0.11) 0.38 0.28 0.31
Total comprehensive income for the year 110.70 112.73 120.59 107.65
Add: Balance as per last year Balance Sheet 697.04 591.31 689.31 588.66
Amount available for appropriation 807.74 704.04 809.90 696.31
Less: Dividend 48.97 7.00 48.97 7.00
Surplus in statement of profit and loss 758.77 697.04 760.93 689.31

Key Financials as on March 31, 2022

Your Company, along with its subsidiaries, has a global presence. The Company has prepared consolidated accounts of the holding company and all its subsidiaries, in accordance with the Ind AS that are applicable. The consolidated revenue from operations along with other income stood at H1,079.01 crores (PY H931.24 crores). The profit after tax was H120.86 crores (PY H107.38 crores). The standalone revenue from operations along with other income stood at H679.18 crores (PY H523.59 crores). The profit after tax was H110.81 crores (PY H112.35 crores).

The highlights of the key financials are as under:

(Rs in crores except per share data)

Particulars Standalone Consolidated
Equity Share Capital 13.99 13.99
Net Worth 826.43 844.81
Book Value Per Equity Share 118.13 120.76
Earnings Per Share (EPS) 15.84 17.20
Investments 597.00 500.03

Contribution to exchequer

Your Company has contributed a sum of H83.82 crores to the exchequer during the financial year 2021-22 by way of duties and taxes on a standalone basis.

Transfer to reserves

The Board of Directors has decided to retain the entire amount of profit for FY 2021-22 in the profit and loss account.


During the period under review, the Board of Directors has declared two interim dividends aggregating to H3.00 (150%) per share and a bifurcation is as under:

Date of Declaration Interim Dividend Amount per share (in Rs) % of dividend
October 26, 2021 1.00 50
January 25, 2022 2.00 100

The Board has recommended a final dividend of H6.00 (300%) per equity share having face value of H2/- each subject to approval of members at their ensuing annual general meeting for the financial year ended on March 31, 2022.

The aggregate dividend for the financial year ended on March 31, 2022, on approval of the proposed final dividend at ensuing annual general meeting would be H9.00 (450%) [including interim dividends of H3.00 (150%)] per share amounting to H62.96 crores. The total payout towards dividend for the financial year 2021-22 would be H62.96 crores translating into a dividend payout of 52% on consolidated net profit which is in line with the dividend payout as mentioned in the Dividend Distribution Policy of the Company.

Shareholders Reward Policy

Symphony believes in maintaining a fair balance over a long-term period between pay out / reward to the shareholders and cash retention. The Company has been conscious of the need to maintain consistency in pay-out / reward to the shareholders. The quantum and manner of pay out / reward to shareholders of the Company shall be recommended by the Board of Directors of the Company.

The Shareholders Reward Policy (including Dividend Distribution Policy) can be accessed at https://docpdfs. Corporate-Governance/CorpGov_13121322387.pdf

Material changes and commitment

There have been no material changes and commitments affecting the financial position of the Company which occurred between the end of the financial year and the date of this report, to which the financial statements relate.

Performance Review – India Operations

Household Coolers:

This year the summer arrived early and there has been a consistent streak of hot days. This is helping in reducing the channel stock rapidly. Due to the good season and lack of any disruptions such as COVID-19, the general market and consumer sentiment is very good across India. In addition to this, the Company has taken a new initiative in collaboration with the Government of Indias CSC Grameen E-Stores. This will help us penetrate the vast and yet untapped rural markets. Our increased focus on Movicool commercial coolers is bearing fruits. Furthermore, the Company brought in several automations for expediting the commercial processes.

The Modern Trade vertical is doing extremely well with the e-commerce segment having clocked a 30% growth over the last year.


A revamped and redesigned D2C platform was launched on Jan 15, 2022, as a pureplay e-commerce shop. By mid-March, we surpassed the previous years D2C orders both in terms of value and volumes. We started the process to bring in exclusive products on D2C portals in tune with our Di_erent Model Di_erent Channel (DMDC) strategy. Furthermore, we have launched 12 new D2C exclusive products in the peak summer of 2022. The Company has also launched no-cost EMI schemes with major banks and NBFCs to help customers buy our products on worry-free instalments. The Company has launched Cash on Delivery (COD) to tap into the larger e-commerce savvy market. The Company has forged a tie-up with Disney, Marvel and Greengold to bring their characters like Cinderella, Spiderman, Ironman and Chhota Bheem to our select coolers targeting the young children and teenage market.


Your Company rechristened its B2B division as "Large Space Venticooling" and revamped the overall positioning strategy. The Company has appointed Champion Sales Dealers across India to strengthen its distribution network. An altogether new website has been launched as a repository of knowledge and resources about the category. A brand-new TV commercial was shot and aired on national channels to build mass awareness along with the usual performance marketing campaign.


The Company has launched an exciting new campaign drawing synergies between Indias favorite snacks and the cost of running a cooler per day. The objective was to convey consumer benefits while contextualizing the low running cost of air coolers. We roped in ace cricketers Harbhajan Singh and Shikhar Dhawan to create hyper personalized videos for over 2300 retailers to deepen our bond with them. Your Company has commissioned multiple market research projects like to gather insights at category level and brand level that will help us craft a more robust strategy for the coming year. The Company has initiated digital performance marketing campaigns in key international markets to generate B2C and B2B leads. The Company has set up business intelligence tools to track our performance on social media and e-commerce portals. The Company has Introduced new models exclusively for e-commerce and modern trade. A unique table-top personal cooler Duet was launched in manual, touchscreen and remote control avatars.


This year with micro level planning and execution, your company has been able (i) to reduce waiting time for our valuable customers, (ii) to achieve an average queue time of 15 seconds, down from 80 seconds. To streamline the process of customer contact for various after sales activities like registration of service request, inquiry on warranty, extended warranty, and, spare prices, the Company has expanded our call centre network from one call centre based in Ahmedabad to additional call centers, one each at Noida and Hubli. For our trade partners, the Company has provided an additional feature of call registration for stock as well as service request registration for their customers through the Symphony mobile app.

Overseas Business:

During the year, the revenue from operations of International Business, excluding sales to subsidiaries, was US$3.371 mn. There has been a nominal growth of 5% from the previous year. The prevailing pandemic and large carry forward inventory in some Asian and African countries has affected the growth. The situation in Sri Lanka, the lockdown in Nepal, the forex situation in Egypt, and the war in Ukraine and Russia have majorly impacted the business from those countries. However, the recovery is becoming visible in other markets and the outlook is optimistic. Along with the easing-o_ of travel restrictions and the strengthening of our IB team, we expect the business to reach pre-pandemic levels.

SEZ Unit

In 2020, the Company had discontinued its operations from the Kandla SEZ unit. During the year under review, your Company has completed all requisite procedures for the closure of the Kandla SEZ unit.

Performance Review- Overseas Operations

(i) Climate Technologies Pty Limited, Australia (CT):

On YoY basis, Climate Technologies group business sales grew by 8%, mainly on account of the USA market growth. However, domestic Australia market sales decreased more than was anticipated, due to adverse market situations in Australia. COVID-19 related extended lockdowns in the key market of Melbourne, Victoria posed challenges related to product installations, thus bringing down installed products sales. The negative growth in the new homes market due to the construction industrys prolonged shutdown, along with a colder summer season have also affected sales. However, this was partially compensated through a growth in sales of portable air coolers to channel partners, Bunnings, and others. CT has planned a stronger presence in the Sydney, NSW market by appointing sales representation there and contracting with a third-party logistics company. Sydney is a strong market for portable spot coolers. . The EBIDTA stood at 10% of gross revenue and witnessed growth as compared to the previous year. With an objective to improve EBITDA growth further in FY23, the following product initiatives have been planned including (a) completing the outsourcing of metal parts fabrication to China; (b) further expanding Climate Technologies presence in the Australian refrigerated air conditioning market; (c) expanding the Symphony India air cooler product offering in the USA; (d) expanding the Symphony India air cooler product offering in Australia; (e) expanding the Australian domestic retail product range to include other portable heating and cooling products, leveraging the well-known Bonaire brand name; and (f ) complete the organizational restructure of the business and outsourcing of a large part of the manufacturing to further reduce fixed and variable costs.

(ii) IMPCO S. de R.L. de C.V. (IMPCO), Mexico

During this year, the sales grew by 38% mainly on account of increased sales prices of 25% for heater products and 30% for coolers. The YTD contributions (and hence the profitability) improved in spite of increased input costs (RM as well as ocean freights), this was supported by (a) an aggressive price increase and (b) favorable product mix.

Two new locally manufactured products were launched, an 80-liter tank air cooler and a unique to market window cooler with 3 speeds and swing, both delivering very good market results.

The Company expects good market share in its new product categories such as heaters and fans, which have already been launched in the market. Further, the Company is in the process of launching a range of washing machines in the current fiscal. The Company expects non-volatility in the Mexico peso-to-US dollar rate in the coming year. Also, the Company is working on localizing the manufacture of some more product SKUs (capex has already been allocated for this purpose) that would then allow us to save freight costs against import, while also enabling us to provide competitive offerings in the Mexico market.

(iii) Guangdong Symphony Keruilai Air Coolers Co. Ltd, (GSK), China

This year, we witnessed no growth in the top line. In fact, it decreased marginally, owing to adversities of various kinds in the China market. Industrial activity in general, in China, is not yet back to normal. We are working on value engineering and alternate supply chain initiatives to address the margin improvements. Household products have been phased out from GSK in Q3, 2021 and GSK will focus on the industrial air coolers business. We have downsized the organization and made it leaner. Through the above listed initiatives, we aim to achieve adequate sales in the next year to get a cash break even once again (we already had a cash break-even two years ago). E-commerce growth in China is robust, which requires rapid growth of warehousing space; these warehousing spaces are air cooled. The growing demand in the warehousing sector is reasonably compensating the slack in demand in the industrial sector in the domestic market in China. Despite strict lockdowns within China, GSK held the 2022 technology seminar successfully to introduce air coolers with IOT technology, the tool for online selection of coolers, and BIM design technology. GSK was recognized by National Sci-Tech Department as the high-technology enterprise during the year.

(iv) Symphony Climatizadores Ltda, (SCL) Brazil

Brazil is the largest economy in South America and is an important market for Air coolers. Many brands sell residential and commercial air coolers which are mainly imported from China. There is a market for Industrial air coolers too. SCL has been established to tap this air cooler market. It imports range of portable and industrial coolers from Symphony India and from GSK China and distributes them in the local market. Offering high quality products at competitive prices has been the strategy of SCL. The market is now looking up after two years of the COVID-19 impact, and it now has an optimistic outlook.

Awards and Accolades

• E4M: Pride of India Brands, The Best of Bharat Awards, 2022.

• Our plant is compliant with QSA (Quality System Assessment), RESA (Retail Ethical Sourcing Assessment), and CTPAT (Custom-Trade Partnership Against Terrorism) to cater to the needs of US retail.

• Products are designed and compliant with international quality standards and are duly certified by certifying agencies like UL (Underwriters laboratory), Intertek, Bureau Veritas.

• All US export products are compliant with CEC‘s (California Energy Commission) requirement and FCCs (Federal Communications Commission) requirement.

• ISO 9001: 2015 certification for quality management and systems for its design, sales, marketing and after sales services of air coolers, certified by BVC.

• Information Security Management System certification ISO -27001 by Bureau Veritas Certification Holding SAS UK.

Management Discussion and Analysis Report

Pursuant to the provisions of Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") the Management Discussion and Analysis Report for the financial year ended on March 31, 2022, is part of this annual report.

Corporate Governance

Pursuant to the provisions of Regulation 34(3) read with Schedule V of the Listing Regulations, the Corporate Governance Report for the financial year ended on March 31, 2022, is part of this annual report.

The requisite certificate obtained from the Practising Company Secretaries confirming compliance with the conditions of Corporate Governance is attached with the report on Corporate Governance.


Your Company has six overseas subsidiary companies, (i) IMPCO S. de R. L. de C.V., (IMPCO), M?xico, (ii) Guangdong Symphony Keruilai Air Coolers Co. Ltd., China, (iii) Symphony AU Pty Limited, Australia, (iv) Climate Technologies Pty Limited, Australia, (v) Bonaire USA LLC, U.S.A. and (vi) Symphony Climatizadores Ltda., Brazil.

As per the requirements of Regulation 24 of the SEBI Listing Regulations, the Company has appointed Mr. Naishadh Parikh, Independent Director of the Company on the board of its subsidiary companies viz. (i) Climate Technologies Pty Limited, Australia and (ii) Symphony AU Pty Limited, Australia.

Further, during the year the Company has appointed Mr. Girish Thakkar, Chief Financial Officer as director of (i) Climate Technologies Pty Limited, Australia and (ii) Symphony AU Pty Limited, Australia, w.e.f. September 30, 2021 in place of Mr. Bhadresh Mehta who has been retired as Chief Financial Officer of the Company. In accordance with Section 129 (3) of the Companies Act, 2013, the Company has prepared a consolidated financial statement of the Company and its subsidiary companies, which forms part of the Annual Report. Pursuant to the provisions of Section 129 (3) of the Companies Act, 2013, a statement containing salient features of the financial statements of the Companys subsidiaries in Form No. AOC-1 is annexed to the financial statements of the Company. The statement also provides the details of performance and financial position of the subsidiaries of the Company.

The financial statements of the subsidiary companies and related information are available for inspection by the members at the Registered Office of the Company during business hours on all days except Sundays and public holidays upto the date of the Annual General Meeting as required under Section 136 of the Companies Act, 2013. Any member desirous of obtaining a copy of the said financial statement may write to the Company Secretary at the Registered Office of the Company. The financial statements including the consolidated financial statement, financial statements of subsidiaries and all other documents required to be attached to this report have been uploaded on the website of the Company


The Auditors report does not contain any qualification, reservation or adverse remark and is self-explanatory, thus, it does not require any further clarifications/ comments.

Cost Auditors

During the year under review, the Company was not required to maintain cost records and hence, cost audit was not applicable; no manufacturing activities or services, covered under the Companies (Cost Records and Audit) Rules, 2014, have been carried out or provided by the Company.

Corporate Social Responsibility

As required under Section 135 of the Companies Act, 2013 and the rules made thereunder, the annual report on Corporate Social Responsibility containing details about the composition of the Committee, CSR activities, amount spent during the year and other details is enclosed as Annexure - 1. The Corporate Social Responsibility Policy is displayed on the website of the Company.

Secretarial Audit Report

As required under the provisions of Section 204 of the Companies Act, 2013, the Board of Directors of your Company had appointed M/s. SPANJ & Associates, Practicing Company Secretaries, to conduct a Secretarial Audit. The Secretarial Audit Report for the financial year ended on March 31, 2022, is annexed to the Boards Report as Annexure - 2.

The Secretarial Auditors report does not contain any qualification, reservation or adverse remark and is self-explanatory, thus, it does not require any further clarifications/comments.

Directors and Key Managerial Personnel

Mr. Nrupesh Shah has been re-appointed as an Executive Director for a period of five years effective from November 1, 2021, by the members of the Company in their annual general meeting held on August 10, 2021. The Board had in its meeting held on June 19, 2021, approved the appointment of Mr. Amit Kumar as an Additional Director and designated him as Executive Director and Group CEO of the Company with effect from August 2, 2021 for a period of five years which was subsequently approved by the members in their AGM held on August 10, 2021.

Mr. Achal Bakeri was re-appointed as Managing Director for a period of five years effective from December 1, 2017, pursuant to which his present term will be expiring on November 30, 2022. The Board of Directors has reappointed Mr. Achal Bakeri as Managing Director of the Company for a period of five years from December 1, 2022 subject to approval of members and concerned authorities including the Central Government, as may be acquired.

Mr. Nrupesh Shah, Executive Director, retires by rotation at the ensuing Annual General Meeting and being eligible, has offered himself for re-appointment.

Brief profiles of Mr. Achal Bakeri and Mr. Nrupesh Shah as required under Regulation 36 (3) of the Listing Regulations and Secretarial Standards - 1, are annexed to the notice convening the Annual General Meeting, which forms part of this Annual Report. Your directors recommend their appointment / re-appointment. During the year under review, Mr. Bhadresh Mehta, Chief Financial Officer – Global has retired w.e.f. September 30, 2021 on attaining superannuation age. The Board placed on record its appreciation and gratitude for the services and contribution rendered by him during his tenure as Chief Financial Officer – Global of the Company.

Mr. Girish Thakkar has been promoted and appointed as Chief Financial Officer of the Company w.e.f. October 1, 2021.

Annual Return

In accordance with Section 134 (3) (a) and Section 92 (3) of the Companies Act, 2013, the Annual Return of the Company has been placed on the website of the Company and can be accessed at https://

Directors Responsibility Statement

Pursuant to Section 134 (5) of the Companies Act, 2013, the Directors of the Company hereby state and confirm that:

(a) in the preparation of the annual accounts for the financial year ended on March 31, 2022, the applicable Indian accounting standards have been followed and there are no material departures from the same;

(b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;

(c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 read with Rules made thereunder for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(d) they have prepared the annual accounts on a going concern basis;

(e) they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively;

(f ) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Meetings of the Board

Six meetings of the Board of Directors of the Company were held during the year under review. The details of composition, meetings, and attendance, along with other details of the Board have been reported in the Corporate Governance Report, which is annexed to the Boards Report.

Your Company has complied with the Secretarial Standards as applicable to the Company pursuant to the provisions of the Companies Act, 2013.

Audit and Other Committees

The Audit committee comprises Mr. Naishadh Parikh, Chairman, Mr. Ashish Deshpande, Ms. Reena Bhagwati and Mr. Santosh Nema as members. In accordance with the provisions of section 177(8) of the Companies Act, 2013 and Listing Regulations, the Board has accepted all the recommendations of the Audit Committee during the financial year 2021-22.

The details of composition, meetings, and attendance, along with other details of the Audit Committee and other committees are reported in the Corporate Governance Report which is annexed to Boards Report.

Nomination & Remuneration Policy

The Company has framed Nomination & Remuneration Policy for appointment of directors, key managerial personnel and senior management personnel, their remuneration and evaluation of directors and Board. The said policy is part of the Corporate Governance Report.

Particulars of loans, guarantees, security or investments

The liquidity position of your Company is fairly comfortable and therefore the surplus funds were invested to generate returns.

The Company has given loan and provided guarantee and security to the subsidiary companies for general business purpose.

Details of loans, guarantees and investments under the provisions of Section 186 of the Companies Act as on March 31, 2022, are set out in Note nos. 4, 9 and 36 to the Standalone Financial Statements of the Company.

Particulars of contracts or arrangements with related parties

All transactions entered with Related Parties for the year under review were on an arms length basis and in the ordinary course of business and the same were placed before the Audit Committee and also before the Board for their approval. The Company has also obtained omnibus approval on a yearly basis for transactions which are of repetitive nature. All Related Party Transactions are placed before the Audit Committee and the Board for review and approval on a quarterly basis.

There are no materially significant related party transactions that may have potential conflict with interest of the Company. The disclosure of related party transactions as required under Section 134(3)(h) of the Companies Act, 2013 is not applicable to your Company. Members may refer to note no. 36 to the standalone financial statement which sets out related party disclosures pursuant to IND AS.

Transactions with person or entity belonging to the Promoter/ Promoter Group which holds 10% or more shareholding in the Company have been disclosed in the accompanying financial statements.

Risk Management

As per requirement of the Listing Regulations, Risk Management Committee has been constituted by the Company. The Company is aware of the risks associated with its business. It regularly analyses and takes corrective actions for managing / mitigating the same. The Company periodically reviews its process for identifying, minimizing and mitigating risks. The Board of Directors of the Company have framed a risk management policy and same is being adhered to by the Company. There are no risks which, in the opinion of the Board, threaten the existence of the Company. However, some of the risks which may pose challenges are set out in the Management Discussion and Analysis which forms part of this Report.

Annual performance evaluation

Pursuant to the provisions of the Companies Act, 2013 and Listing Regulations, the Board of Directors has carried out annual performance evaluation of its own performance, its committees and all directors of the Company as per the guidance notes issued by SEBI in this regard. The Nomination and Remuneration Committee has also reviewed the performance of Board, Committee and all directors of the Company as required under the Companies Act, 2013 and the Listing Regulations.

i. Criteria for evaluation of Board

Criteria for evaluation of Board broadly covers the competency, experience, qualification of the director, diversity of the board, meeting procedures, strategy, management relations, succession planning, functions, duties, conflict of interest, grievance redressal, corporate culture and values, governance and compliance, evaluation of risks etc, among other things.

ii. Criteria for evaluation of Committee

Criteria for evaluation of committee cover mandate and composition, effectiveness, structure and meetings, independence of the committee from Board and contribution to decisions of the Board.

iii. Criteria for evaluation of Directors

These broadly covers qualification, experience, knowledge and competency, ability to function as a team, initiative, attendance, commitment, contribution, integrity, independence, participation at meetings, knowledge & skill, personal attributes, leadership, impartiality etc, among other things. The Board of Directors have expressed their satisfaction with the evaluation process.

Declaration by independent directors

Independent Directors have submitted their declarations stating that they meet the criteria of independence as specified under Section 149(6) of the Companies Act, 2013 and Listing Regulations as amended from time to time.

Vigil Mechanism

The Company has established a vigil mechanism to provide adequate safeguards against victimization and to provide direct access to the Chairman of the Audit Committee in appropriate cases. This mechanism is available on the website of the Company.

Details of significant and material orders passed by the regulators or courts or tribunals

During the year under review, there was no significant and material order passed by the regulators or courts or tribunals impacting the going concern status and the Companys operations in future.

Particulars of employees

The statement of disclosure of remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (the Rules) are set out as Annexure - 3 to the Boards Report.

The statement of disclosures and other information as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(2) and (3) of the Rules is forming part of this Report. However, as per second proviso to Section 136(1) of the Act and second proviso of Rule 5(3) of the Rules, the Report and Financial Statement are being sent to the Members of the Company excluding the statement of particulars of employees under Rule 5(2) of the Rules. Any Member interested in obtaining a copy of the said statement may write to the Company Secretary at the Registered Office of the Company.

Internal financial controls and their adequacy

The Company has laid down internal financial controls to ensure the systematic and efficient conduct of its business, including adherence to Companys policies and procedures, the safeguarding of its assets, the prevention and early detection of frauds and errors, the accuracy and completeness of the accounting records and timely preparation of reliable financial information. These are reviewed by the Statutory Auditor and Internal Auditor at regular intervals and also by the Audit Committee.

Disclosure under the sexual harassment of women at workplace (prevention, prohibition and redressal) act, 2013

Your Company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee has been set up to redress complaints regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy.

There were no complaints received, disposed of during the year under review and pending as at the end of the financial year.


The Company has not accepted any deposit during the year under review and no unclaimed deposits or interest were outstanding as on March 31, 2022.


The insurable interests of the Company including building, plant and machinery, stocks, vehicles and other insurable interests are adequately covered.

Conservation of energy, technology absorption and foreign exchange earnings and outgo

Pursuant to provisions of Section 134 (3) (m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, details relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo are given as Annexure - 4.

Business Responsibility and Sustainability Report (BRSR)

The Business Responsibility and Sustainability Report for the financial year 2021-22, as stipulated under Regulation 34 of the Listing Regulations is annexed to this Report as Annexure - 5. The Company has decided to publish the BRSR report from the current financial year onwards.


Your directors wish to place on record their appreciation of the contribution made by employees at all levels to the continued growth and prosperity of your Company. Your directors also wish to place on record their deep sense of appreciation to the shareholders, OEMs, dealers, distributors, service franchises, CFA, consumers, banks and other financial institutions for their continued support.

For and on behalf of the Board
Achal Anil Bakeri
Place: Ahmedabad Chairman and Managing Director
Date: July 26, 2022 DIN - 00397573