The latest estimates of the Central Statistical Organization suggest that the growth of Indias Gross Domestic Product for the fiscal year 2015-16 was at around 7.6%, which is not only higher than the previous years 7.2% but also the highest amongst the large emerging economies. This was achieved in spite of a sub-par monsoon for the second year in a row and many stalled reforms due to political disharmonies.

Indias growth story has remained largely positive on the strength of domestic economy. In the face of a volatile global environment, uncertainties in China and rate hike by US Federal Reserve, the macro-economic indicators remained largely stable in India. The rate of inflation, as per the wholesale price index, remained in the negative territory. Softening commodity prices and historically low crude oil prices provided the required impetus to the Indian economy.

The manufacturing growth in 2015 -16 was strong at 9.5% as compared to 5.5% in the last fiscal, although there was some loss of steam in certain sectors. However, spurt in manufacturing activity did not translate into growth in mining and construction sector, which remained sluggish. Sectoral data shows a muted agricultural growth and rural demand.

GDP growth for FY 16-17 is estimated to be in the range of 7.5 to 8%. The emphasis on "Make In India", investments in accelerating infrastructure & industry, pro-reform approach and efforts at fiscal consolidation are positive indicators for growth. However, the execution of the reform agenda and ability to restart the investment cycle would have a major bearing on Indias economic performance.


India is the third largest lubricant market in the world after the US and China and currently one of the fastest growing lubricants markets globally.

Broadly, the Indian market can be segmented into three major categories - Automotive, Industrial including marine applications and Process oils /White oils.

The market has a very competitive landscape with more than 15 national level players catering to the market needs. It is marked by the presence of the nationalized oil companies (NOCs), global marketers and a few domestic players. For the automotive and industrial lubricants segments, NOCs are the biggest lubricant suppliers in volume terms followed by the MNC brands(including your Company).

Your company operates mainly in the Automotive and Industrial segments with a leading presence as one of the top players in the open market (Bazaar channel) through the distributor channel and also directly supplies to OEMs & other B2B customers.

a. Automotive Segment

The lubricants market in India has been dominated largely by the automobile lubricants segment which comprises of applications for Commercial Vehicles, Cars, Tractors and Two wheelers. Diesel Engine Oils (DEO) account for over 55-60% of the automobile segment followed by Motor Cycle Oils (MCO) and Passenger Car Motor Oils (PCMO). The large vehicle population in existence and growing sales of new automobiles year after year augurs well to increase the demand for lubricants.

In FY 2015-16 the automobile industry sales remained subdued, growing by a modest 3.8% against 7.2% in the previous year.

(No. in Lakhs)




% Change over LY


% Change over LY

Passenger Vehicles






Commercial Vehicles






Three Wheelers






Two wheelers












Source: Society of Indian Automobile Manufacturers (SIAM)

As a prelude to the signs of anticipated pick up in the economy, we saw a revival in the demand for new commercial vehicles in the last year. Compared to the dismal performance in FY 14-15, Commercial Vehicles posted a strong growth of 11.5% in FY 1516. Driven by trend towards replacement of ageing fleets and pre-buying ahead of change in emission norms, M&HCVs grew significantly at 29.91%. LCV sales growth was also positive but tractorsales showed no signs of recovery with a decline of 10% against 13% degrowth in the previous year. While the overall growth in CV segment brings confidence to the lubricants industry, demand in the DEO segment has still been affected by lower movement of vehicles for transportation, bleak mining sector and stalled infra projects.

The 2 Wheeler segment was under pressure as subdued consumer sentiments affected purchase decisions and concerns increased on slowing down of the rural economy. However we have seen a good pickup in the scooter segment at 11.79% growth. This trend is attributable to changing lifestyle in semi-urban households, increasing women workforce and need for personal mobility. Consumption of Motorcycle Oils reflected this trend and these lubricants registered a positive growth towards the end of the year.

Passenger cars saw a improvement in the last year, with sales growth almost doubling at 7.2% when compared to FY 14-15. As per industry reports, this growth is primarily driven by new model launches, replacement demand as well as new launches in mini segment which attracted first time buyers. This in turn drives the consumption of Passenger Car Motor Oils.

b. Industrial Segment

Industrial lubricants include hydraulic fluids, metalworking fluids, greases and industrial gear oils. Industrial lubricants are used in a wide variety of applications in various industries including construction industry, manufacturing, textile, power generation, mining, food processing, light heavy engineering, marine operations and metalworking.

Industrial lubricant demand is dependent on industrial production (IIP) and overall growth trends in the economy. We have seen a positive demand for the Industrial (Road Building Segment) for the last year.


Your company manufactures and markets complete range of lubricants which are used by automobiles as well as by the industrial sectors. In 2015-16, the Industry witnessed a normal 1% to 2% growth in overall volumes as it continued to operate in a challenging environment. Overall the Industry saw a positive growth in personal mobility as well as Commercial Vehicles led lube consumption.

The domestic commercial vehicle industry has shown significant growth in the financial year 2015-16. But despite this growth in Commercial Vehicle population, weak movement of commercial/mining related equipment led to reduced consumption of Diesel Engine Oils. Your company grew its DEO volumes by working together with its existing OEM tie-ups this resulted in a positive movement in OEM factory fill volumes throughout the year. Your Company also forginged new tie-ups, the key new ones being for the tractor segment with Mahindra Gujarat & Swaraj, both key tractor OEMs in India. An institutional order in DEO category also contributed towards the volume growth during the year.

The growth in two wheeler population, especially Scooters, and the trend of increasing need for personal mobility in India, led to an increased consumption of lubricants for two wheelers and cars, more than the preceding year. Your company also recorded a matching growth in Personal Mobility lubricants segment. Your company revamped its PCMO portfolio, launched specialized products to tap the growing Scooter market and continued to strengthen its distribution base. With positive growth across its automotive range your company grew its overall estimated market share to 7.2% in the bazaar market (which comprises of spare parts stores, independent shops & garages).

With its focussed segment wise strategies, suitably backed by differentiated customer value propositions like ‘longer drain for the diesel engine oil fleet users, superior services, brand /distribution building initiatives, your Company has been able to deliver overall volume growth at 3-4 times the Industry growth rate and also remained ahead of market growth in the bazaar segment. Your company also grew its base with Direct Industrial customers fuelling higher B2B sales. Your company continued its double digit growth rate in Infrastructure, Mining, Fleet segment as well.

Impact of Crude Oil and Foreign Exchange

Fall in crude oil prices resulted in fall in Base Oil prices, with a lag, throughout the year. Base Oil is a significant raw material for lubricants. Additives on the other hand, which constitute 30-35% of Raw Material Cost, remained fairly stable during this period.

The competitive scenario intensified with sharper cuts in the pricing/discounting in the growing segments and your company also had to respond to these market dynamics by passing on the benefit of fall in input costs partially to the customers resulting on revenue growth being lower than volume growth. Still we have been able to expand gross margins during the year by a significant 6.3% due to fall in input costs partly offset by rupee depreciation.

During the year, your company continued to invest in its brand building initiatives across segments. Based on an internal market research extensively covering a wide reach of consumers, mechanics and retailers, ‘Gulf oil brand has retained and improved its position amongst the Top 3 lubricant brands in terms of brand awareness, purchase consideration and on other parameters as well. Association with Motor Sports, IPL & our Brand Ambassador Mr. Mahendra S. Dhoni continued to yield a positive buid-up in Gulfs brand equity scores. Your company continued to invest in initiatives and innovative communications leveraging these associations.

Key growth and brand building initiatives during 2015-16:

• The Passenger Car Motor Oils (PCMO) product portfolio was revamped with focus on fast growing synthetic segment. Ultrasynth (10W-40, 5W-30), an entry level synthetic portfolio product, was introduced during the year. Also Formula G series, High performance fully synthetic products, were launched on a grand scale in New Delhi by our brand ambassador M.S. Dhoni.

• Your Company continued to invest in the growing Independent Work Shops (IWS) Channel. Rapid expansion of Bike Stops (Branded IWS for motorcycle segment) contributed to roughly 15% the overall MCO volumes. Gulf Car Stops (Branded IWS for passenger car segment) initiative was also started during the year with focus on key cities.

• Your Company has gained further market share in Motor Cycle Oils (MCO) segment achieving double digit volume growth, which is two times the industry growth, aided by a TV campaign of "Insta Pick Up. During the year, your company also launched specialized lubricants - Gulf Pride Scooter Oil - for the fast growing scooter segment.

• Distribution reach programs for rural markets and appointment of Gulf Rural Stockiest to further strengthen the distribution channel in India. Additionally, an online software - Distribution Management System (DMS) was rolled out at an all India level.

• Launch of digital and social media campaigns across segments coupled with outdoor campaigns in select cities to communicate special consumer offers.

• Commenced in house manufacturing of AdBlue in Silvassa. Your company has a leading presence in AdBlue supplies in India.

• New OEM Tie-ups with Mahindra Gujarat and Swaraj for lubricants in the tractor segment.

• Gulf sponsorship of Zeeignition awards for automobile excellence (cars & bikes) and VW Vento Cup were used to maximize brand awareness and category presence.

• Continued association with Chennai Super Kings in last years IPL and the new association with the Rising Pune Supergiants in the current year were key hightlights.

• Gulf Oil International entered into global partnerships with Manchester United and Milwaukee BMW Superbike Team for the World Superbike Championship. Your company also announced the Manchester United global tie-up in Mumbai in a press conference and to the media, explaining how the tie-up will be leveraged in India. Your companys Brand Ambassador M.S. Dhoni also welcomed the association and tweeted for it and #UnitedForGulf was one of the top trending topics on twitter in that week.

Capacity expansion in Silvassa

Your Company had augmented the manufacturing capacity of its existing plant in Silvassa from 75,000 to 90,000 KL with the addition of state of the art OCME automatic filling lines and Automa blow moulding machines. In FY 15-16, your Company further revamped base oil/raw material/finished goods storage, handling and other infrastructure facilities in line with this enhanced capacity. An automated storage and retrieval system (ASRS) consisting of a variety of computer - controlled systems for automatically placing and retrieving loads from defined storage locations was commissioned during the year.

Your Company is setting up its second plant at Ennore, Chennai with a capacity of around 40,000-50,000 KL pa. Bhoomi Pooja of this new green field lubricants plant was done in May 2016. The construction and PEB work contact is already awarded and the full scale construction work is expected to begin in Q2 of FY16-17. Chennai is a major Auto Hub with increasing presence of several OEMs. Your company expects to improve its strategic presence in South India and also derive cost benefits from this new plant.

Your Company is ISO 9001(QMS), ISO 14001(EMS), TS 16949:2009 & ISO 18001 (OHSAS) compliant which strengthens our quality systems and also provides added comfort to our business partners and regulatory bodies.


Automobile Industry, driven by improvements in Commercial Vehicles and Personal Mobility segment, is expected to make a partial recovery from its low base in the last 3 years.

Policy reforms like GST, Government initiatives such as Make in India program and Mining Sector reforms are expected to unlock higher GDP growth in the current year; we already have seen a good uptick in the last few quarters. A well anticipated good monsoon and the Ninth Pay Commission are also significant demand drivers. The increased economic activity is expected to result in growth of lubricant demand in both Commercial & Consumer Mobility Vehicles. Accordingly the overall lubricant demand is expected to be marginally better in the current year.

An improvement in Commercial Vehicle segment, on account of increased on road movement, vehicle sales and monsoon driven tractor consumption is expected to lead to better volumes for the overall lubricants business; Commercial Vehicle Oils are a major portion of the product mix for the overall Indian lubricant Industry and also for your company.

The demand for lubricants in the Personal Mobility segment is expected to come from the growth in two wheeler population, gear less scooter market as well as from shift to synthetic and semi synthetic oils. Your company will continue to focus on improving its share in consumer lubricant space of PCMOs and MCOs.

Overall Volume growth in lubricant industry is expected to be slightly better than last years flat to 1-2 % growth. The automobile industry growth is pegged at 10% (as per our Internal Estimates) with a sustained growth predicted for the Heavy Commercial Vehicles (HCVs), which should augur well for the lubricant industry as a whole.

Your company expects to continue its trend of outperforming the industry by at least two to three times, and also further its presence in B2B/OEM segment. Additional opportunities to increase the market share by extending the distribution base and network, especially in the rural areas, are also being tapped. New Synthetic lubricant products and mineral based products for specific market segments like Scooter and Passenger cars have been launched or are in the advance stages of being launched.

Your Company will continue to further strengthen its strategies around segment-wise focus, investments in the brand and initiatives to increase distribution reach and retain/ acquire OEMs & other B2B customers.

Aggressive pricing or discount strategies from the market leaders or other competitors, including new entrants to the market, could adversely affect the Company. Forex volatility and fluctuation in base oil prices can also impact the margins in the industry and for your company. Intense competition is expected to continue in the lubricant market, presenting the Company with various challenges in its ability to maintain growth rates and profit margins. Your company is fully geared up to meet these challenges with well defined strategies and to continue its journey on the high growth path, as demonstrated in the past years.


Businesses operate in a dynamic environment. Changes in government policies, legislation, information technology, customer preferences, competitors initiatives, financial markets, etc contribute to this ever changing environment, a situation that demands a mechanism to proactively assess risks and design controls to mitigate those risks. Risk Management framework in the organization provides a systematic platform to identify, assess and manage potential risks and opportunities. It provides a way for managers to make informed management decisions. Effective Risk Management ensures sustenance of the organization and everyone associated with the Organization.

Your Company has put in place a comprehensive Risk Management Policy, which is framed around a common as well as industry specific understanding of various type of Risks - Corporate Risk (Strategic and Residual Risk), Operational Risk (specific Business and Functional risks including Economic, Market Risks), Financial, Human resources, Legal and Compliance Risks, etc. Your Company has documented key identified risks in all of these areas and also put in place an effective Mitigation plan for the same. To ensure a widespread understanding, Board members and all operational / business unit heads and managers are made familiar with, and all staff aware of, the principles of Risk Management Policy and framework.

During the year, some of the key risk mitigation actions taken by your company include diversifying product portfolio keeping specific market requirements such as launch of PCMO range to cater to synthetic demand, new Scooter Oil, Synthetic MCO oil, etc, creating a separate business vertical within the organization to systematically approach and get new OEMs and maintain existing OEMs in a more structured way as

OEMs are identified as key to future continued success, putting a forex hedging policy in place as per advise of forex experts and continuous review mechanism on fortnightly basis, implementation of legal compliance software with exhaustive coverage of laws for timely and proper legal compliance under various Acts, laws, rules and regulations applicable to your company, putting up a Whistle Blower Mechanism in place, etc.

Your Company has also embarked on an "Operational Excellence" program internally driven by EY India to enhance organizational capabilities and improve efficiencies. Company has also received OHSAS 18001, to further enhance plant safety standards.


Your Companys Internal Control System has been designed to provide for Accurate recording of transactions with internal checks and prompt reporting, Adherence to applicable Accounting Standards and Policies, Compliance with applicable statutes, policies and procedures, guidelines, and authorizations.

Consequent to the implementation of Companies Act 2013 (Act), your company has complied with the specific requirements in terms of Section 134 (5)(e) of the Act calling for establishment and implementation of Internal Financial Control Framework that supports compliance with requirements of the Act in relation to Directors Responsibility Statement. The Internal Financial Control Framework document supports the Company in evaluating the operating effectiveness of the controls in a consistent manner.

Your company through its own Internal Audit department carries out periodic audits at all locations and functions based on the plan approved by the Audit Committee and brings out any deviation to Internal control procedures. The observations arising out of the audits are periodically reviewed and compliances are ensured.

The summary of the Internal Audit observations and status of implementation are submitted to the audit committee every quarter for its review and concerns if any are reported to the Board.


HR plays a vital role in achieving the vision and is a strategic pillar of your company. Your company places highest importance in implementation of contemporary HR practices to enhance the overall employee effectiveness. With a strong governance mechanism at its roots, the code of conduct has been communicated & implemented for all the employees.

Being an equal opportunity employer, your company strives to implement the programs to promote various initiatives including awareness of ‘The Prevention of Sexual Harassment at Work Place Policy. There has been no complaint of the sexual harassment at workplace in last year. Your company also consciously develops gender diversity through its campus relationship program. Your company takes pride to have complied with all the legal requirements. The continuous process of audits & gap analysis helps your company to have better compliance.

Regular communications through town hall and various media such as e mailers, employee intranet portal has helped build an excellent work culture and a spirit of teamwork.

Rewards & Recognition

Your Company drives various Rewards & Recognition Programs. Recognizing their extraordinary efforts, the employees are rewarded through various schemes which help to boost their morale. In FY 2015-16, total 62 employees were honored under the ‘Long Service Award Programme for their loyalty and dedication towards your company.

Employee Benefits Programme

Your Company has introduced a ‘Critical Illness Cover for all its employees to support the additional medical expenses on account of any critical illnesses. Both Mediclaim Policy and an optional Top Up cover for the benefit of Employees, their families and parents are facilitated by your company. The term insurance & personal accident insurance cover also continues to be in place.

Capability Building

Employee capability enhancement is of great importance to your Company. Launch of "GOLD" Academy (Gulf Oil Training & Development Academy) has helped to deliver the capability initiatives with the blended approach.

Functional competencies are defined for all the roles of the organization & integrated with various other HR processes. Specific capability development programs are also designed & implemented with the help of this competency framework.

Last year your Company implemented ‘New Ways of Working which helped the sales organisation and the channel partners to have a better alignment and processes. Development of the internal trainers has also been the focus. The new ways of working modules have been successfully driven by such internal trainers.

Total mandays clocked for the year for training were 1249. Specific post programme initiatives are planned so as to sustain the capability building initiatives.

Your company has plans to introduce the new performance management system "ASPIRE" (Align: Strive: Perform: Inspire: Reward: Enable" to drive the required business growth for the coming year.

Employee Stock Option Scheme (GOLIL ESOP 2015)

Your Company believes that equity based compensation schemes are an effective tool to reward the employees in the growth of the company, to create an employee ownership, to attract new talents, to retain the key resources in the organization and for the benefit of the present and future employees of the company. In view of the above, your Company has instituted the ‘Gulf Oil Lubricants India Limited Employee Stock Option Plan 2015 for its eligible employees. The Company has granted options as per the following vesting schedule -

At the end of Year 1 10% of the total grant of the eligible employees
At the end of Year 2 15% of the total grant of the eligible employees
At the end of year 3 15% of the total grant of the eligible employees
At the end of year 4 60% of the total grant of the eligible employees

The options granted under the scheme shall vest on satisfaction of vesting conditions which can thereafter be exercised resulting in allotment/issue of equity shares of the company.

Employee Relations

Employee Relations at the Silvassa Plant remained cordial. This has helped to build a healthy relationship and resolve issues through mutual dialogue. The regular communication with the plant employees helps to create excellent team work & work culture.



Key Highlights:

• Revenue from operations (net) increased to 101,135 lakhs from 96,748 lakhs (up by 4.5 %)

• EBIDTA stood at 16,042 lakhs (up by 22.5 % as against 13,094 lakhs for previous year 2014-15).

• PAT stood at 10,031 lakhs (up by 29.6 % as against 7,741 lakhs for previous year 2014-15).

• Board has recommended Final Dividend of 4 per equity share (i.e. 200% on FV of 2 each). During the year, the Board had declared and paid interim dividend of 3.00 per equity shares (i.e. 150% of face value). With this, the total dividend for the year stands at 7.00 per share (i.e. 350% of FV of 2 per equity shares).

(Rs. Lakhs)
Year ended March 31, 2016 Year ended March 31,2015 Growth %
Sales (Gross) 116,667 111,392 4.7%
Revenue (Net) 101,135 96,748 4.5%
EBITDA 16,042 13,094 22.5%
PBT 15,326 11,604 32.1%
PAT 10,031 7,741 29.6%
EPS (Basic) FV - 2 per equity share 20.24 15.62

Revenues (Rs. Lakhs)

Revenue (Net) stood at 101,135 lakhs in FY16 from 96,748 lakhs in FY15. The Company continued its volume and revenue growths across all key segments on the back of an overall double digit growth in volumes. However, the revenue growth was at 4.5% due to lower price realization in light of sharp fall in key raw material prices, benefit of which has partly been passed on to customers.

1. Breakup of various cost items as a % of Revenue (Net)


Year ended March 31,2016

Year ended March 31,2015

Amount Rs. Lakhs % Amount Rs. Lakhs %
Revenue (Net) 101,135 100% 96,748 100%
Cost of goods sold 55,090 54.5% 59,113 61.1%
Employee Benefit Expenses 5,744 5.7% 4,398 4.5%
Manufacturing & Other Expenses 24,385 24.1% 20,298 21.0%
Total Expenses 85,219 84.3% 83,809 86.6%
Other Income 1,793 1.8% 922 0.9%
Profit before Finance Costs, Depreciation and Tax 17,709 17.5% 13,861 14.3%
Operational EBITDA 16,042 15.8% 13,094 13.5%
Finance Costs 1,779 1.8% 1,775 1.8%
Depreciation/ Amortization 604 0.6% 482 0.5%
PBT (Profit before Tax) 15,326 15.1% 11,604 12.0%
Tax Expenses 5,295 5.2% 3,863 4.0%
PAT (Profit after Tax) 10,031 9.9% 7,741 8.0%

a. Cost of goods sold

Cost of goods sold decreased by 6.8% to 55,090 lakhs in FY16 from 59,113 lakhs in FY15 mainly due to fall in base oil prices which is key Raw Material for lubricants manufacturing. Cost of goods sold as a percentage to Net Revenue has also decreased from 61.1% in FY15 to 54.5% in FY16.

b. Employee Benefit Expenses

Employee Benefit Expenses increased by 30.6% to 5,744 lakhs in FY16 from 4,398 lakhs in FY15 mainly on account of increase in head count, usual increments resulting in increase in payroll cost by 751 lakhs, increase in provision for bonus & incentives by 263 lakhs and additional charge of 288 lakhs on account of employee stock options granted during the year.

c. Manufacturing and other expenses

Manufacturing & other expenses increased by 20.1% to 24,385 lakhs in FY16 from 20,298 lakhs in FY15. Increase is mainly on account of increase in Advertising and Sales Promotion by 1,161 lakhs, increase in Selling and Marketing Expenses by 1,249 lakhs, increase in Royalty by 329 lakhs and increase in freight & forwarding expenses by 633 lakhs, which is in line with increase in volume/value additions.

d. Finance Costs

Finance costs increased marginally to 1,779 lakhs in FY16 from 1,775 lakhs in FY15.

e. Depreciation/Amortization

Depreciation/amortization charges increased to 604 lakhs in FY16 from 482 lakhs in FY15 mainly on account of additions to fixed asset during the current year ended March 31,2016.

Balance Sheet (Standalone)

(Rs. Lakhs)
Particulars As at 31.03.16 As at 31.03.15 Change
Sources of Funds
Share Holders funds/ Net Worth 24,854 18,711 6,143
Non-current liabilities 639 530 109
Current liabilities (including Short Term Borrowings) 39,366 37,210 2,156
Total 64,859 56,451 8,408
Application of Funds -
Fixed Assets 10,883 9,761 1,122
Other Non-current assets 1,175 1,016 159
Current assets 52,801 45,674 7,127
Total 64,859 56,451 8,408

2. Capital Deployment

During FY16, capital employed increased from 56,451 lakhs to 64,859 lakhs mainly due to increase in Fixed Assets by 1,122 lakhs and increase in Current and Non Current Assets by 7,286 lakhs which is largely in line with double digit growth in volumes.

3. Net Worth

Net Worth at the end of FY16 increased by 6,143 lakhs to 24,854 lakhs from 18,711 lakhs as at FY15.

There is no change in Share Capital during the year and remain at 991 lakhs. The Reserves and Surplus of the Company has increased by 6,143 lakhs in FY16 at 23,863 lakhs from 17,720 lakhs as at FY15.

4. Non-Current Liabilities

Non-Current liabilities at the end of FY16 marginally increased by 109 lakhs to 639 lakhs from 530 lakhs as at FY15.

5. Current Liabilities (including Short Term Borrowings)

Trade payables have increased by 3,427 lakhs to 13,103 lakhs in FY16 from 9,676 lakhs in FY15.

Short term borrowings were down by 2,071 lakhs at the end of FY16 at 19,472 lakhs over previous year of 21,543 lakhs.

However, the Company has net cash (net of short term debts) of 4,034 lakhs as at March 31,2016 as against Net Debt of 3,500 lakhs as of March 31,2015 which demonstrates that the company is Net Debt free as at March 31,2016.

Short Term provisions increased by 548 lakhs mainly due to increase in proposed dividend & Dividend tax by 299 lakhs and increase in Income Tax provision of 249 lakhs.

6. Fixed Assets

Net block of fixed assets (including CWIP) increased by 1,122 lakhs to 10,883 lakhs in FY16 from 9,761 lakhs includes mainly assets capitalized at Silvassa factory as part of expansion activities.

7. Other Non-Current Assets

Other Non-Current Assets at the end of FY16 marginally increased by 159 lakhs to 1,175 lakhs from 1,016 lakhs at the end of FY 15, Increase is partly on account of additional noncurrent investments of 51 lakhs.

8. Current Assets

The overall inventory increased by 1,530 lakhs to 15,689 lakhs in FY16 from 14,159 lakhs in FY15.

Trade Receivables decreased from 11,411 lakhs in FY15 to 10,643 lakhs in FY16.

Cash and Bank Balances increased significantly by 5,463 lakhs and stands at 23,507 lakhs at the end of FY16 as compared to 18,044 lakhs at the end of FY15.

9. Liquidity

We broadly define liquidity as our ability to generate sufficient funds from both internal and external sources to meet our obligations and commitments. Our primary liquidity requirements have been to finance our working capital requirements for our operations and for capital expenditures and investments. We have financed our capital requirements primarily through funds generated from our operations and also through borrowings.

10. Cash Flows

The table below summarizes our cash flow for the periods indicated

(Rs. Lakhs)
March 31,2016 March 31,2015
Net cash generated from operating activities 11,783 13,141
Net cash used in investing activities (327) (2,861)
Net cash used in financing activities (7,875) 1,964
Net change in Cash and Cash Equivalents 3,581 12,244