World Economic Outlook (WEO), Update (January, 2016) projected that "India and the rest of emerging Asia are to continue growing at a robust pace, although with some countries facing strong headwinds from China’s economic rebalancing and global manufacturing weakness". WEO projected India’s growth at 7.5% for the current financial year and the next. These projections show India’s growth rate at highest level followed by Emerging and Developing Asia at 6.3% and 6.2% respectively. As per WEO projection, growth in China is expected to slow to 6.3% in 2016 and 6.0% in 2017 primarily reflecting weaker investment growth as the economy continues to rebalance.

In 2015, global economic activity remained subdued. Growth in emerging market and developing economies while still accounting for over 70% of global growth declined for the fifth consecutive year, while a modest recovery continued in advanced economies. Risks to the global outlook remain tilted to the downside and relate to ongoing adjustments in the global economy. Growth in advanced economies is projected to rise by 0.2% in 2016 to 2.1% and hold steady in 2017. Overall, global growth is projected at 3.4 % in 2016 and 3.6 % in 2017.

The Economic Survey of India 2015-16 indicates that despite global headwinds and a truant monsoon, India registered robust growth of 7.2 per cent in 2014-15 and 7.6 per cent in 2015-16 and would grow 7.75 per cent in the 2016-17, thus becoming the fastest growing major economy in the world. As per the estimates of the International Monetary Fund (IMF), global growth averaged 3.1 per cent in 2015, declining from 3.4 per cent registered in 2014.

India’s growth story has largely remained positive on the strength of domestic absorption, and the country has registered a robust and steady pace of economic growth in 2015-16 as it did in 2014-15. Additionally, its other macroeconomic parameters like inflation, fiscal deficit and current account balance have exhibited distinct signs of improvement. However, weak growth in advanced and emerging economies has taken its toll on India’s exports.

Given the prevalent overall macroeconomic scenario, and predicted above normal rainfall in the current year, it would not be unreasonable to conclude that the Indian economy is all set to accelerate the growth for the third year in succession.


Autoline Industries Limited operates in an Automotive Sector. Automotive sector can be termed as Navigator of the Manufacturing Sector in an economy as it decides the fortunes of several related manufacturing industries. The Automotive Industry has numerous backward and forward linkages with over two dozen industries across manufacturing and service sectors, across the formal and informal sectors of the economy. The Indian Automotive Industry is the sixth largest in the world propelling the economy ahead by its strong positive multiplier effect.

Vision Statement of The Automotive Mission Plan 2016-26 (AMP 2016) framed by Government of India and the Indian Automotive Industry says "By 2026, the Indian automotive industry will be among the top three of the world in engineering, manufacture and export of vehicles and auto components and will encompass safe, efficient and environment friendly conditions for affordable mobility of people and transportation of goods in India comparable with global standards, growing in value to over 12% of India’s GDP and generating an additional 65 million jobs."

AMP 2026 envisages that the Indian Automotive Industry will grow 3.5-4 times in value from its current output of around Rs. 4,64,000 Crores to about Rs. 16,16,000 Crore by 2026 based on a base case with average GDP growth of 5.8% and about Rs. 18,88,000 Crore based on an optimistic case with an average GDP growth of 7.5% during the period of 2026.

Indian Automobile Industry

The Indian automobile Industry is gradually and steadily coming out of the slump witnessed in the previous couple of years. Passenger Cars recorded highest growth in 5 years during the year 2015-16 by registering a growth of 7.8% as compared to previous year 2014-15. In volume terms the passenger cars sales stood at 20,25,479 units in 2015-16 as compared with 18,77,706 units in 2014-15. The growth is driven by Positive consumer sentiment, new launches, attractive schemes and increasing disposable incomes.

The overall commercial vehicles segment reported a growth of 11.51% with medium and heavy commercial vehicles (M&HCVs) clocking 29.91% and light CVs growing marginally by 0.30 %.

Three-wheelers posted a growth of 1.03% with passenger carriers seeing a step up of 2.11% and goods carriers declining by 3.32%. A laggard in the two-wheelers market continued to be the motorcycle segment declining by 0.24% with mopeds facing a steeper drop of 3.32%. Scooters however continued to grow at 11.79% leading the twowheeler growth to 3.01% during the year 2015-16.

Cumulatively the automotive industry ended financial year 2015-16 on a positive note growing 3.78% in domestic sales whereas overall export rose marginally by 1.91%.

Your Company’s prime customer’s performance: The Cumulative sales (including exports) of Tata Motors Ltd. for Financial Year 2015-16 were 5,11,711 nos. (All vehicles), higher by 2% over 5,02,281 vehicles, sold last year. Contribution to the sales by commercial vehicles i.e. LCV is 33.26% and M&HCV is 30.67%. All passenger vehicles is 24.73% and export sales is 11.34%.

The Domestic Market Share for the year 2015-16 comprised of 14% (Passenger Vehicles), 3% (Commercial Vehicles), 3% (Three wheelers) and 80% (Two wheelers).

Auto Ancillary Industry

The Indian Auto Components Industry is one of the largest automotive markets in the world. Despite past challenging years, the auto component industry registered an impressive growth of 8.8% in 2015-16 with overall turnover standing at appx Rs. 2.56 lakh Crore (USD 39.00 Billion) against last year of Rs. 2.35 lakh Crore (USD 38.5 Billion).


Over the decade, India has emerged as one of the most preferred locations in the world for manufacturing high quality automotive components and vehicles of all kinds, narrowing its gap over several established locations in the process. Over the next decade, the Automotive Industry at a global level is likely to see significant transformation. Principal ones that are expected include the shift of growth in demand for automobiles from developed nations to developing nations (mainly BRICS); a dramatic increase in the share of electronics in automobiles making them a "computer on wheels"; a relentless pursuit of economies of scale and scope in design and engineering of automobiles and components, while also pursuing low cost manufacturing destinations.

Although Automotive Sector is reaching towards accounting for 40 % of Indian manufacturing still India remains one of the most under-penetrated markets for Automobile, with passenger vehicle ownership of less than 15 per 1000 people. Therefore there is huge latent demand for mobility and there are millions of Indians aspiring to own their first passenger car, or motorcycle. Moreover, the export of Automotive from India is growing, with manufacturers like Ford, Volkswagen etc. are using India as a manufacturing base to export vehicles, engines and components.

Make in India: The Indian government’s focus on improving ease of business with its ‘Make in India’ initiative is expected to soften regulations and reduce complex procedures. The initiative will also result in making India more cost effective manufacturing destination. Automotive industry is amongst the foremost drivers of the Manufacturing Sector and it will be a significant contributor to the success of "Make in India" Programme. India’s emergence as a major automotive market has already led to many of the global OEMs setting up production facilities in the country.

Focus on Import Substitution: With the government of India’s emphasis on substitution of imported goods to reduce import bills, sectors such as railways and defence are expected to look to Indian companies for procurement. This provides manufacturing companies, especially auto component industry having infrastructure and other facilities, an opportunity to grow in the non-automotive business.

Ramp up of Capacity Utilisations: The slowdown in the Indian automotive industry has resulted in a decline in capacity utilisation. As the domestic market recovers and export demand continues to trend upwards, your company will be in a position to ramp up utilisations and capture a significant share of this additional demand.

High Export Demand: With a focus on cost optimization, OEMs across the world have looked to cost effective countries such as India, for sourcing automotive components and also setting up manufacturing bases for exports of automobiles, this has led to an increase in India-made automotive component exports, both direct and indirect, as parts of an exported automobiles.

Major Developments & Investment in India: In order to keep up with the growing demand, several auto makers have started investing heavily in various segments of the industry during the last few months. The industry has attracted Foreign Direct Investment (FDI) worth US$ 14.32 billion during the period April 2000 to December 2015, according to data released by Department of Industrial Policy and Promotion (DIPP).

Some of the major developments and investments in the automotive sector in India are as follows:

• The Government of India has permitted 100% foreign direct investment (FDI) in the automotive industry through the automatic route. This has encouraged global OEMs to invest in and develop innovative products, technologies and supply chains.

• Government of India aims to make automobiles manufacturing the main driver of ‘Make in India’ initiative, as it expects passenger vehicles market to triple to 9.4 million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.

• In the Union budget of 2015-16, the Government has announced to provide credit of Rs. 8,50,000 crore (US$ 124.71 billion) to farmers, which is expected to boost the tractors segment sales.

• The Government plans to promote eco-friendly cars in the country i.e. CNG based vehicle, hybrid vehicle, and electric vehicle and also made mandatory of 5 per cent ethanol blending in petrol.

• The government has formulated a Scheme for Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India, under the National Electric Mobility Mission 2020 to encourage the progressive induction of reliable, affordable and efficient electric and hybrid vehicles in the country.

Investment in India

• Japanese two-wheeler manufacturer Honda Motorcycle and Scooter India (HMSI) has opened its fourth and world’s largest scooter plant in Gujarat, set up to initially produce 6,00,000 scooters per annum to be scaled up to 1.2 million scooters per annum by mid-2016.

• American car maker Ford has unveiled its iconic Ford Mustang in India and will make its debut in second quarter of Financial Year 2016 within the price band of Rs. 45 lakh (US$ 66,146) and Rs. 50 lakh (US$ 73,496) in the Indian market.

• Nissan Motor Co. Ltd is in discussion with Government of India to bring electric and hybrid technologies to India as the government plans to reduce air pollution caused by vehicles.

• Global auto major Ford plans to manufacture in India two families of engines by 2017, a 2.2 litre diesel engine codenamed Panther, and a 1.2 litre petrol engine codenamed Dragon, which are expected to power 2.70.000 Ford vehicles globally.

• The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and increasing capacity in India.

• General Motors plans to invest US$ 1 billion in India by 2020, mainly to increase the capacity at the Talegaon plant in Maharashtra from 1,30,000 units a year to 2.20.000 by 2025.

• US-based car maker Chrysler has planned to invest Rs. 3,500 crore (US$ 513.5 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.

• Mercedes Benz has decided to manufacture the GLA entry SUV in India. The company has doubled its India assembly capacity to 20,000 units per annum.

• Germany-based luxury car maker Bayerische Motoren Werke AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers.

• Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in France-based Peugeot Motorcycles (PMTC).

References: Media Reports, Press Releases, Department of Industrial Policy and Promotion (DIPP), Automotive Component Manufacturers Association of India (ACMA), Society of Indian Automobile Manufacturers (SIAM),AMP: 2016-26 Economic Survey, Union Budget 2015-16 & 2016-17 etc.


Presence of large number of players, domestic as well as multinational, in the Automobile industry results into extensive competition. Moreover, Government of India’s aim to propel the Indian Automotive Industry to be the engine of the "Make in India" programme will intensify competition as the existing entity will have to compete with settled as well as new players entering into the market with some privilege under "Make in India" initiatives.

The automobile industry and the demand for automobiles are influenced by general economic growth, fluctuations in the fuel prices, credit availability, growth in manufacturing and service sectors, agricultural growth which dependent on monsoon condition, disposable income of consumers, interest rates etc. Negative trends in any of these factors could materially and adversely affect the automobile industry and there is a direct threat to the existence of auto ancillary industry.

Moreover, the price of raw materials is volatile in nature and depends on various factors like oil prices, economic scenarios across the globe, exchange fluctuation and others which cannot be controlled by the Company and an increase in the price of raw materials could materially impact the bottom line of the company if the company could not pass on such increase in cost to its OEMs.

Notwithstanding the various challenges, the industry’s longterm prospects remain bright. The growth will be driven mainly by healthy economic growth, changing consumer preferences, replacement demand and rising aspirations, development of electric and hybrid vehicles market, increased spending on infrastructure development, thrust on rural economy and new product launches, among others.


Your Company has always been a firm believer in the long term potential of the Indian automotive industry. Our capacity expansions have underpinned our robust growth over the last decade. However, in the last few years, several macro headwinds have obstructed the growth of the automotive components industry including flagging vehicle sales, increasing capital costs, high interest rates and rising inflation etc. This slowdown, which still continues to impact the domestic automobile industry, has undermined our capacity expansions, infrastructure and utilizations and impacted profitability again in the Financial Year 2015-2016.

However, some of your Company’s customers and other OEMs are now expanding capacities anticipating higher demand in the quarters to come and advantages to build in India. Your Board expects the recovery to be stronger, driven by reforms led macro-economic recovery, strong demand and government initiatives to propel India as Automotive Hub, increase in the infrastructure spend. An infrastructural recovery will, in turn, lead to increased sales of commercial vehicles and heavy equipment and machinery.

A key driver of your Company’s growth is the expansion of global OEMs in India. Not only they are increasing investments into the country leading to higher car production levels, but are also consolidating their suppliers who can achieve their operational and quality targets. This trend is leading to a consolidation in the automotive ancillary industry with increasingly more opportunities being presented to larger suppliers such as your Company. Your Company have created additional capacities which will position well to cater to any increase in demand as the automotive market recovers.


Your Company geographical expanded by setting up facility in Chennai, a largest automotive and auto component manufacturing hub of India in terms of volumes and investment.

During the year under review your Company has completed construction of factory shed and building at Dharwad location in Southern India and with this new set up your Company owns two plants in Dharwad and this will help the Company to cater to the growing needs of Domestic and International OEMs and particularly for the various models manufactured by Tata Motors Ltd. at Dharwad.


Your Company’s efforts to enter into non-auto business specifically in Railway, Defense etc. turning into reality and Indian Railway has awarded few orders during the year 201516 and it has opened up a big market for your company. The Company is pursuing for defence order and expecting sizeable order. In addition of above the company is also anticipating higher growth in stamping tool manufacturing business and overseeing the possibilities to develop the business with Godrej Industry, Ford Motors, Cummins, Toyotetsu India Autoparts, Mahindra & Mahindra, TATA etc.

Your Company is also exploring business in Construction equipments sector.

Your Company’s focus on diversification is very clear and it is fully prepared to make the investment to start with Railway and Defense projects.

Fund Raising/Cost Saving

Managing the Cash Flow in the loss making Company is a massive issue and at present your Company is confronting with the liquidity problem and to support its financial requirements the Company needs infusion of long term fund. The Company is exploring possibilities to raise funds in organic and inorganic manner to mobilize funds for working capital requirements, expansion, diversification, repayment of loans and other general corporate purpose and whenever any concrete decision is taken by the Board of the Company the same will be communicated by appropriate means.

The Cost saving initiatives are being taken on regular basis and the Company has been able to achieve satisfactory cost savings with the task of supplier rationalization, inventory management, system improvement, revising credit periods etc. The Company has also reduced its workforce in last few months due to which sales to CTC ratio was hovering around 15-18%, certain sections of workforce are redundant on various counts - performance, potential, obsolescence etc.

Manufacturing capabilities

Your Company’s untiring efforts of adhering to global quality standards, enhancing production efficiency, upgrading to fast changing requirements of OEMs, customization of products and solutions, and a strong focus on product innovation and improvisation have yielded an overall improvement in qualitative performance.

Recently your Company has installed a machine called Durability Testing Chamber for ABC Pedal Assembly, imported from US and commissioned at the premises of the Company with the support of the Indian technicians. This will put your Company in the category of holding dominant position in pedal business in India and lead towards becoming the world leader in pedal business. This adds one more golden feather to its wings.

Your Company’s in-house designing team and infrastructure including its subsidiary, has introduced a number of new products over the years and it will enable to expand product range, make it competitive with sound standing and extend the geographical reach. The Adjustable & Collapsible Pedal Assembly, High Deck Load Body, Park Brake Assembly and Jack Assembly are a result of our focus on driving growth through innovation, thus exemplifying the value engineering expertise of your Company.

Over the years, your Company has built a strong product portfolio and developed high end design and value engineering capabilities. Your Company is an integrated ‘Art to Part’ or ‘Concept to Delivery’ Company with capability right from Styling, Designing (CAD), Proto typing, Analyzing CAE (Computer Aided Engineering), for Crash Worthiness, NVH, CFD, etc., Tooling (Computer Aided Manufacturing) and finally Mass Manufacturing.

In the recent years, with a well-defined business strategy, your Company has won new contracts from various OEMs such as Tata Motors, General Motors, Volkswagen, Ford, Mahindra Navistar Automotive Ltd. etc. Consequently, it has also led to improved and increased brand visibility and awareness for your Company. Due to excellent quality in work, cost competitiveness, timely deliveries and State of the Art Tool Room facility with latest CAD /CAE/ CAM facilities, the Company has, in a short span, become well established brand in auto ancillary industry.

Every manufacturing facility has a tool room attached with Computerized Milling Centers, Wire-cut Machines, Horizontal Boring Machine and host of other supporting tooling machinery to take care of even the large size dies. This is supported by a state-of-the-art Design Engineering setup with the latest Hardware and Software backed by CAD/CAE/CAM facilities for optimum utilization of tool room machinery.


Auto Ancillary Industry requires huge capital investment and organized structure and therefore putting economic barrier on unorganized players but its complete dependency on automobile industry is the point of concern and makes it slightly unattractive as it does not hold sizeable market independent from Original Equipment Manufacturer (OEM).

Raw Material Prices: Prices and availability of various raw materials such as steel, non-ferrous, precious metals, rubber and petroleum products are dependent on various environmental factors. Even as the Company continues to pursue cost control measures, any unforeseen or sudden spike in cost of these items could impact the profitability of the Company to the extent that the Company could not pass through the rise in the price of Raw Material to the customer. For your Company, increase in the price of raw materials, especially steel, are passed through so there is a limited impact on the profitability.

Global Competition: With the integration of global automobile supply chains, the automobile components industry has become increasingly competitive with OEMs continuously scanning the market for lower prices and better terms. Even as the Company enjoys strong and long standing relationship with many global OEMs, it continues to invest in newer products and better quality control.

Technological Changes: The business environment is evolving at a rapid pace. The changing technologies have led to a shortening of the life cycle of new vehicles. Additional challenges include supply constraints from Tier II suppliers, sustenance of operating cost efficiency gains and capacity expansions in the context of rapidly changing consumer demand preferences. The Company continues to invest in new technologies and capacities to address such risks. In addition, our focus on rationalization both in terms of size and functions, enables us to continue to complement the manufacturing excellence programs that are being developed.

High dependency on few customers: Only few customers contribute more than 90% revenue on standalone basis of the Company out of this one customer i.e. Tata Motors Limited contributes approximately 75%. Tata Motors could achieve nominal growth of 2% over the sales of previous year. Cumulative sales of commercial vehicles of Tata Motors in the domestic market for Financial Year 2015-16 was 3,27,142 nos., higher by 3% over last year. Cumulative LCV sales was 1,70,181 nos., a decline of 11% over last year, while M&HCV sales were at 1,56,961 nos., higher by 23% over last year. Sales of all passenger vehicles of Tata Motors Limited in the domestic market for Financial Year 2015-16 were 1,26,534 nos. lower by 6%, over last year and Sales from exports for Financial Year 2015-16 were at 58,035 a growth of 16%, compared to last year.

Thus the performance of the Company is completely dependent on the performance of its key customers and decline in demand of final products of the company’s customer will definitely adversely affect the company’s performance financially and operationally.

Approximate 80% of your Company’s products are ‘Commodity’ business i.e. large volume, low profit business. These are also replaceable by other Companies setting up similar facilities. Hence, your Company have to scale up to more ‘proprietary’ products with own designs and ability to realize good margins from Customers in coming years. Auto Component manufacturers of this Category are caught between large OEMs (Vehicle Manufacturers) and large Steel Companies (raw material suppliers) with less or no elbow room for negotiations and terms, unless new proprietary products with own design are launched in both Automotive and Non-Automotive Sectors.

In addition of above there are possibilities to intensify risks by change in economic and monetary policies of government adversely affecting business sentiments of the company, risks associated with human resource, Force Majeure, occurrence of unforeseen events, growing used car market may create obstacle to the rapid growth of Automotive Industry and any other business risks.

Risk Management: Strategic, operating and financial business risks are reviewed by the Board and its committees on a regular basis. In addition to the above risks, the committee monitors any potential new risks that may arise due to changes in the external environment. While the possibility of a negative impact due to one or more of such risks cannot be totally avoided, the Company proactively takes reasonable steps to pre-empt and mitigate these.


At present your Company operates mainly in single segment i.e. manufacturing of auto parts such as pressed sheet metal, auto components and assemblies which is used in the manufacturing of main product and in Design Engineering Services. All other activities of the Company revolve around the main business. The sales are primarily to Domestic Automotive Component Segment. However, the Company also has a small share in export segment.


The Company has proper and adequate system of controls in order to ensure the optimal utilization of resources and the accurate reporting of financial transactions and strict compliance with applicable laws and regulations. The Company has put in place sufficient systems to ensure that assets are safeguarded against loss from unauthorized use or disposition and that transactions are authorized, recorded and reported correctly.

Audit Committee of Board of Directors comprising majority of Independent Directors, regularly reviews the significant audit findings, adequacy of internal controls, compliance with accounting policies, practices and standards as well as statutory compliances. It reviews and reports efficiency and effectiveness of operations and the key process risk.

Your Company has implemented Microsoft Dynamics AX 2009, Enterprise Wide Solution, Enterprise Resource Planning (ERP) at all its plants covering all its businesses, planning and accounting processes. With the help of ERP and continuous improvements, your Company will be in a better position to increase the operational efficiency and cost effectiveness of overall operational controls. Your Company has also appointed M/s. Ketan H. Shah & Associates, Pune, Chartered Accountants as Internal Auditors during financial year 201516. The Audit Committee reviews internal audit reports and the adequacy of internal controls from time to time.


Your Company’s performance in the last financial year is a reflection of the challenges faced by the automotive industry in India and in certain other regions internationally. In FY 2015-16, the consolidated revenues of the Company were Rs. 3111.16 million, a decline of 38.60 % over the previous year. Decline is mainly due to disinvestment of subsidiary company situated in Butler, US in the month of December, 2014.

Consolidated EBIDTA for the year increased by 277.19 % to Rs. 76.30 million from Rs. (43.06) million Management remained focused on cost optimisation and value enhancement during this period.

Consolidated loss after tax for Financial Year 2015-16 before minority interest is Rs. 390.33 million.

Rs. in millions except EPS data


Consolidated Financials

2015-16 2014-15
Income from Operations (Net) 3111.16 5067.20
Other Income 89.86 7.43
Employee Benefit Cost 336.81 615.65
Profit Before Interest, Depreciation & Taxes (EBIDTA) 76.30 (43.06)
Finance Costs 274.44 323.67
Depreciation 245.36 276.29
Profit Before Tax but before Exceptional Items (443.50) (643.02)
Exceptional Items 70.59 66.24
Extra Ordinary Items (16.11) 16.23
Tax expense 1.30 10.11
Profit After Tax but before deducting minority interest (390.33) (570.66)
Profit/(Loss) for the year (388.46) (569.22)
Earnings per share (Rs.) - Basic (30.90) (45.47)
Earnings Per Share (Rs.) - Diluted (30.85) (45.37)

Capital expenditure:

During the year under review your Company has invested apprx. Rs. 17 Million towards capital expenditure mainly in plant and machinery and construction of building at Dharwad unit. The capital infusion will continue in a planned manner to further improve, enhance and modernize plants and designing and development activities in the current year 2016-17.


Your Company had a total strength of 1238 employees as on March 31,2016. During the year under review your Company has taken various steps for the betterment of the employees and cohesive working atmosphere in the Company. Your Company believes in people and acknowledges its employees as most valuable asset and therefore human resource management is an ongoing activity in the Company which work for providing tools and methods to the Company for moving forward.

The Company aims to retain its talent pool from separation with the Company and for the same the Company introduced employee retention programme. A policy for Streamlining and realigning of grades across all levels of the organization has also been implemented. In addition of above the Company also introduced 5-days a week working policy starting with closure on second and fourth Saturday, part time working policy etc. and also working on various Human Resources initiatives such as Policy on Death Benevolent Fund, Rewards and Recognition Policy, Annual Health Check-up policy in addition of already started self-funded Mediclaim known as ‘Autoline Employees Health Benefit Scheme’, etc.

The Company is having a well-equipped human resource department and a team of able and experienced professionals. New recruitments at various levels are being made to adequately manage various segments/functions of growing operations of the Company. The Company provides training to its employees on a continuous basis for skill building, creativity and developing quality manpower.

A Cordial Industrial Relations environment prevailed in all the manufacturing units of the Company during the year except few pending suspension enquiries against undisciplined workers at Uttrakhand Plant.


The statements forming part of this Annual Report including Directors’ Report and Management Discussion and Analysis report may contain certain forward looking statements within the meaning of the applicable securities laws and regulations.

Forward-looking statements are based on certain assumptions and expectations of future events. Many factors could cause the actual results, performances or achievements of the Company to be materially different from any future results, performances or achievements that may be expressed or implied, since the Company’s operations are influenced by many external and internal factors beyond the control of the Management. The Company cannot guarantee that these statements, assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.