As stipulated under the provisions of Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Management Discussion & Analysis forms an integral part of this Report.
World Economy Overview
The World Economic Outlook, has predicted global growth at an estimated 3.6% in 2022, as economies are recovering from the pandemic. There are downside risks to the global outlook which are prolonging the war in Ukraine, downturn in China and higher inflationary pressures. Global output is already contracting with a high probability of recession in EU and USA. Inflation is anticipated to be 5.7% in advanced economies and 8.7% in emerging markets and developing economies by 2022. There is a possibility of more favourable scenario in the year ahead backed with the faster GDP growth of emerging and developing markets owing to their big spending on infrastructure and other fixed assets projects. On the flip side, increased commodity prices and worsening supply-demand mismatches, especially those brought on by the war, could result in long-term high inflation and faster wage rise. Most Central Banks have started increasing interest rates aggressively including India to contain the inflation which may trigger debt defaults across countries. Further, the US dollar strengthening is likely to put pressure on import dependent economies.
Global Auto sector rebounding from the pandemic-related disruptions of 2020, registered a healthy 5.3% increase in sales, with 81 million in unit sales in 2021. Several leading OEMs plan to shift to in-house chip production through strategic alliances with leading semiconductor manufacturers. Chip manufacturers are also actively expanding their production capacity to meet the surging demand in the automotive space. Technology companies are deepening their presence in the automotive industry by serving as future mobility enablers. The growing EV population will spur demand for niche services and EV parts replacement in the aftermarket.
Going forward, a faster recovery in the global economy will be contingent on the impact of the Supply chain resilience, shift of global financial conditions from tighter to liberal, conflict ease off, and containing the inflationary trends. This will influence fiscal measures from governments and central banks. Governments should strive to take advantage of constructive structural change whenever possible, embracing the digital transition and empowering people with new tools and skills to handle these difficulties.
Indian Economy Overview
For the full financial year of 2021-22, the National Statistical Offices (NSO)s gross domestic product (GDP) growth was pegged at 8.7%, compared a 6.6% contraction in 2020-21. The GDP print for FY22 is significant as it shows growth in the recovery year after the onset of the Covid-19 pandemic in 2020. Most sectors in the economy showed higher recovery in FY22 from pre-Covid levels of FY20.
The growth momentum of the economy is intact, although challenges remain from the continuing disrupted supply chain and tightening of monetary policies by developed countries. Out of the 7% retail inflation rate, about 2% is due to imported price pressures. With crude oil prices rising, inflationary pressures will remain elevated, but the risk of stagflation is quite low for India compared to the rest of the world.
Consumption recovery remains uncertain amid high inflation and interest rates, which could temper the growth momentum in 2022-23. The silver lining, however, is the recovery in investment demand. Private final consumption expenditure, a measure of consumption of goods and services by individuals grew by 1.8% year-on-year in Q4 of FY22. Gross fixed capital formation (GFCG), proxy for investment activity grew by 5.1%, supported by government final consumption expenditure. Gross Value Added which is GDP minus net product taxes grew at 8.1% for FY22 as against a contraction of 4.8% a year ago. The GDP in nominal terms, which factors in inflation, is seen growing 19.5% as against a contraction of 1.4% last year. The fiscal deficit for 2021-22 worked out to be 6.71% of the gross domestic product (GDP), lower than 6.9% projected by the Finance Ministry in the revised Budget Estimates.
These numbers confirm that all GDP segments have emerged higher than their pre-COVID magnitudes. This is also true for all GVA sectors except very few. In fact, in 4QFY22, all GDP and GVA segments have overtaken their corresponding 4QFY20 levels indicating that the Indian economy is well past the COVID shock.
Indias economic response has emphasized supply-side reforms above demand management. These supply-side changes include deregulation, process simplification, elimination of legacy issues like retrospective taxation, privatization, production-linked incentives, etc. Even the governments significant increase in capital spending is a demand-and-supply response, as it develops infrastructure for future growth.
The Indian economy is well-positioned to tackle future challenges, according to macroeconomic statistics.
Global rating agency Fitch has cut Indias growth forecast for FY 2023 to 7.8%. It has however raised Indias growth outlook to stable from negative on the back of reduced risks to Indias economic growth, also considering the fact that Indias growth is expected to be robust in comparison to its peers. The ratings agency has said that despite the global uncertainties, especially the headwinds from the global commodity price shock amid Russia Ukraine war, the downside risks to Indias medium-term growth have diminished. This is due to its rapid economic recovery and easing of Indias financial sector weaknesses.
The S&P Global Ratings changed Indias growth forecast from 7.8% to 7.3% for the current fiscal year. This is because inflation is going up and the conflict between Russia and Ukraine is lasting longer than expected. It went on to say that if inflation stays high for a long time, it is a worry that central banks will have to raise interest rates more than what is already priced in. This could lead to a harder landing, with output and employment taking a bigger hit.
Indian Auto and Auto Component Industry
As per ICRA auto component companies registered a 23% Y-o-Y growth in cumulative revenues in FY2022, driven by domestic OEM, replacement, export volumes and pass-through of commodity prices. Though the healthy volume growth has come on a relatively low base of FY2021, the actual revenue growth is better than the rating agencys estimates, partly on account of better-than-expected exports and higher commodity-led inflation. However, the unprecedented cost inflation in H2 FY2022 and the inability to pass on the same has impacted margins in FY2022 which are the lowest in the last 5 years.
Uncertainties on the supply-chain front and cost inflation have resulted in auto ancillaries stocking higher inventory, with inventory levels being the highest as of March 31, 2022, compared to the last four years. The industrys coverage indicators have improved in FY2022 on a Y-o-Y basis and remain comfortable for most auto ancillaries, and the same is expected to continue going forward as well.
Going forward the revenues are expected to grow by 8-10% supported by easing of supply-chain issues and commodity inflation in H2 FY2023. Over the long term, premiumisation of vehicles, focus on localization, improved exports potential and EV opportunities, aided by higher content per vehicle will translate into healthy growth for auto component suppliers. The difficulties with the availability of semiconductors, rising costs, the cost of raw materials, and difficulties with logistics, still pose challenges. Automobile component exports from India are expected to reach US$ 80 billion by 2026. The Indian auto components industry is expected to reach US$ 200 billion in revenue by 2026.
The Indian Automobile Industry produced a total 22,933,230 vehicles in FY 22, as against 22,655,609 units in FY 21. While Passenger and Commercial Vehicle Sales increased impressively, two-wheeler sales showed decrease in FY 22. Exports increased from 404,397 to 577,875 units in FY 22.
Automobile Production Trends
Automobile Domestic Sales Trends
With a contribution of more than 50% to the overall auto component business, the local OEM segment remains the most important, followed by exports and the replacement market. According to the Society of Indian Automobile Manufacturers (SIAM), the OEM industry had a better year in FY 2021-22 than in FY 2020-21. The total number of passenger vehicles sold grew from 2711457 to 3069499 units. The number of units exported grew from 404397 to 577875 units. In all, the industry produced 22933230 cars, including passenger vehicles, compared to 22655609 units.
The domestic auto-component business has reaped significant benefits from improving market circumstances in the primary user segment.
In FY2022, the industrys coverage indicators improved year on year and remain comfortable for the majority of auto ancillaries, and this trend is expected to continue. The industrys capex for FY2022 has been consistent with ICRAs projections. The incremental investments have generally gone toward capability expansion, such as new product additions, product development for committed platforms, and advanced technology and EV component development. The recently announced PLI plan and new investments in the EV industry will help to increase capex over the next few years.
Government Initiatives and Achievements:
The Economic Survey 2021-22 points out that the last two years have been difficult for the world economy on account of the COVID-19 pandemic. Repeated waves of infection, supply-chain disruptions, conflict and more recently, global inflation have created particularly challenging times for policy-making. Faced with these challenges, the Government of India opted for a "Barbell Strategy" that combined a bouquet of safety-nets to cushion the impact on vulnerable sections of society and the business sector. It next pushed through a significant increase in capital expenditure on infrastructure to build back medium-term demand as well as aggressively implemented supply-side measures to prepare the economy for the sustained long-term expansion. This flexible and multi-layered approach is partly based on an "Agile" framework that used feedback-loops, and the monitoring of real-time data.
The government has introduced several measures to boost the industry, some of them are
The Productivity Linked Incentive (PLI) scheme for the car and auto component industries has a Rs. 26,000 crores outlay for FY 22-23, for which 115 vehicle and auto component firms applied for incentives; and 20 OEMs were approved in February 2022 that includes the Companys major customers.
The plan aims to help the industry overcome cost barriers, create economies of scale, and construct a strong supply chain for Advanced Automotive Technologies (AAT). The strategy will help the auto sector increase its value and develop into a mobility industry. A slew of policy measures announced in the recent past, including the extension of FAME-2, the PLI on ACC batteries, and the policy initiative on battery swapping and energy as a service, will create a new paradigm of technological excellence in Indias automotive supply chain to make it globally competitive. PLI would help component manufacturers become globally competitive and boost Make in India programme.
Voluntary Vehicle Scrappage Policy
The Voluntary Vehicle Scrappage Policy, seeks to remove unfit and polluting automobiles off Indian roads and replace them with modern, fuel-efficient, and environment friendly vehicles. The new scrappage policy contributes significantly to the circular economy and the waste-to-wealth initiative. This policy also represents the nations commitment to eliminating pollution in the countrys cities, conserving the environment, and promoting rapid development. This programme, which adheres to the principles of reuse, recycling, and recovery, will also improve the countrys self-sufficiency in the auto and metal sectors. The regulation will go into effect for large commercial vehicles from April 2023 and for private automobiles from June 2024.
The Policy states that private automobiles older than 20 years and heavy commercial vehicles older than 15 years must be removed from Indias roadways if they fail a mandatory computerised fitness test on factors such as braking, engine performance and emission.
The policy makes it more expensive to run vintage vehicles, even if they pass the fitness test, with high tax and re-registration costs.
According to Ministry of Road Transport and Highways data, there are 51 lakh light motor vehicles that are more than 20 years old and 34 lakh that are more than 15 years old. Approximately 17 lakh medium and large commercial vehicles are more than 15 years old.
This regulation is consistent with Indias commitment to the Paris Agreement, emphasising how automobiles become less fuel-efficient as they age. This strategy is not only environmentally friendly, but it is also economically sound since it would create 35,000 new jobs and attract Rs 10,000 crore in investment. Scrapping old metals also supplies cheap raw materials, as 99% of the materials may be recycled, lowering car makers costs.
This concept is consistent with the concept of a circular economy, which is based on the reuse, sharing, repair, refurbishment, remanufacturing, and recycling of resources to form a closed-loop system that reduces resource use, waste generation, pollution, and carbon emissions.
Electric Mobility: towards a green future and significant economic opportunity:
In recent years, the central and state governments have initiated many steps to promote EVs. This includes the Alternate Fuel for Surface Transport Program (AFSTP) in 2010-12; National Electric Mobility Mission Plan 2020 (NEMMP) in 2013; FAME-I in 2015-18 & FAME-II in 2019-22; and PLI Scheme 2020 & updated. With recent modifications, the repayment term on buying an e2W too may drop from 4 to 3 years. FAME-II aims to increase demand for 3W EVs and eBuses by 3 lakhs (in nine large cities). The Central Government has subsidized eBuses for mass transit by up to Rs. 55 lacs per buses, depending on size. The National Mission on Transformative Mobility and Battery Storage propose a 5-year Phased Manufacturing Programme (PMP) for developing large-scale, export-competitive batteries and cell manufacturing giga-scale facilities in India. The pan-India Go Electric Campaign aims to promote e-mobility, EV charging infrastructure and EV manufacturer trust. State governments have also devised EV initiatives to boost demand. Industry companies are expanding their capacity to satisfy increased demand and forming international component partnerships.
The Indian electric bus is expected to grow at a CAGR of 48.8% during the forecast period (2021-2025). The market is being driven by government schemes and legislation, increase in domestic manufacturing, rapid urbanization, and rise in environmental awareness. The growing stringency of emission norms and the government guidelines for more energy-efficient vehicles have shifted the focus of the original equipment manufacturers (OEMs) toward alternative fuel vehicles.
Company Overview and Growth Plan
An auto parts manufacturer and supplier, Autoline Industries Limited is a notable Pune-based manufacturer and supplier of automotive components to Original Equipment Manufacturers (OEMs) and other vehicle firms. Autolines five manufacturing sites are supported by in-house design and engineering services and a commercial tool room. Over 2000 of the Companys products are sold to OEMs throughout the world, where they are built into a variety of passenger and commercial vehicles. Components and sub-assemblies, including Foot Control Modules (FCM) and Parking Brakes (PBM), hinges, cab stays and cab tilts and exhaust systems for big OEMs in the Automotive Industry are manufactured by the Company.
Two-wheelers, three-wheelers, passenger-wheelers, and commercial-wheelers are the most common types of automobiles in the industry. As a Company that has been providing passenger and commercial vehicle services for the past 25 years, your Company has recently entered the electric two-wheeler and three-wheeler market to take advantage of the burgeoning EV industry. As a consequence of targeted approaches, the Company has received inquiries from EV major players about catering to the EV segments of commercial and passenger vehicles from existing clients. Additional factors include an anticipated increase in demand for stamping tools and a look at the potential for new and existing businesses to flourish in the future. Backed with the below strengths and strategies being adopted your Company is confident of achieving positive cash flows in the coming years.
The Company enjoys a strong client base consisting of Tata Motors, Volkswagen, Ashok Leyland, Ford Motors, Fiat, Mahindra, Cummins, Tata Hitachi, Daimler etc. The efforts are being made to increase the client portfolio further in future.
India has a very strong position in the international market. India is expected to be the worlds third-largest automotive market in terms of volume by 2030. Improved infrastructure and robust growth prospects are attracting strong international companies to India. While growing business in India with traditional customers, your Company is in process of making significant headway in diversifying the customer base. Steps taken by your Company viz. innovation, cutting cost through value engineering, reduce and control costs, overheads etc. resulting in optimum utilisation of resources and continued growth. Your Company is ready to take complete responsibility of delivering quality products to customers on time by managing critical Manufacturing programs through accurate project management techniques and by providing continuous supervision by qualified and competent technical assistance.
On the way to the diversification goal, Autoline is penetrating the railway infrastructure sector. Autoline has incorporated a joint venture named "Autoline Locomotive Part LLP" in a partnership with a technical expert to take up and operate in the railways business. Autoline Locomotive Parts LLP will supply the products intended for the railway project/work including railway infrastructure.
Your Company has successfully launched its E-cycles and appointed dealers, business partners for marketing and selling the products and it started gaining constructive response from the market. Following the successful launch of E-cycles your Company is developing an electric scooter and this product is at an advanced stage to have a trial. With a vision to play a constructive role in green mobility, your Company has set up a wholly owned subsidiary in the name of "Autoline E-mobility Private Limited" in the month of March, 2022 for augmentation of its E-products. A digital campaign will be followed by distributors, dealers, and OEMs to develop the Companys own Marketing, Sales & Distribution Network in India.
The company invests in capital expenditures and seeks to expand its client and product base. Your Companys board of directors has approved an amount upto Rs. 10 Crores for Capital expenditure to acquire new and diversified business. This will assist the Company to enter in diversified sectors such as Indian Railways, Defence, Off-Road Vehicle Manufacturers, and Agriculture Equipment Manufacturers.
Expansion in Southern Region
The relocation of an existing rented facility in Hosur, Tamil Nadu to a larger premises and the setup of a few machines are part of Companys efforts to participate in the growth of the auto sector in the southern states. Based on customer queries and RFQs, Hosurs turnover is expected to increase massively. The expansion in Hosur will facilitate tapping the opportunities in the EV segment.
In-house Design and Tooling facility
The Company owns the largest toolroom with modern infrastructure, machinery, and robotic welding. Your Companys wholly owned subsidiary serves customers design and development needs. This design and development arm with tool room facility bestows an edge to the Company to offer cost effective tooling/ moulding, designing services along with manufacturing facility under one roof to the clients with convenience.
Consolidated Financial Performance:
The revenue from operations during the Financial year 2021-22 stood at Rs 56843.32 Lakhs as compared to Rs 28469.48 Lakhs in the last year registering a growth of 99.66%. For the Financial Year 2021-22, the Earning before interest, depreciation, exceptional items and income tax (EBIDTA) stood at Rs 4788 Lakhs as compared to 1026.36
Lakhs in the last year witnessing a significant increase of Rs 366.50%. The PAT after exceptional items stood at Rs 769.4 Lakhs as compared to losses of Rs 4187.52 Lakhs in the last year registering an increase of 118.37%. The Total Comprehensive Income increased to 47.68 Lakhs as against (9.57) Lakhs in the last year registering an increase of 598.22%. The Basic and Diluted Earnings per share stood at 2.09 registering an increase of 114.43%
Details of Significant Changes in Key Financial Ratios, if Any (i.e., change of 25% or more as compared to the immediately previous financial year)
Pursuant to Schedule V read with the Regulation 34(3) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, the significant changes in Key Financial Ratios (i.e. change of 25% or more as compared to the immediately previous financial year) with detailed reasons are provided.
The ratios for the years ended March 31, 2022 and March 31, 2021 (on Standalone Basis) are as follows:
|Ratio||Numerator||Denominator||March 31, 2022||March 31, 2021||Variance (%)||Reason|
|Current Ratio||Total current assets||Total current liabilities||0.54||0.40||35.35||Current ratio has improved as compared to previous year, mainly due to increase in receivables consequent to increase in volume.|
|Debt - Equity Ratio||Total debts||Shareholders equity||5.40||30.88||-82.51||Debt equity ratio has improved due to increase in total equity on account of equity issue and current year profits.|
|Debt Service Coverage Ratio||Earnings available for debt service||Debt service||0.64||0.68||-5.64|
|Return on Equity Ratio||Net profits after taxes||Average shareholders equity||30.28%||-231.00%||-113.11||Company has a net profit of 7.5 crore in current year as compared to net loss of 35.61 crore in previous year, resulting into increase in ROE.|
|Inventory Turnover Ratio||Cost of goods sold||Average inventory||8.86||4.59||93.14||While average inventory has remained same in line with last year, higher consumption of materials has led to increase in turnover.|
|Trade Receivables Turnover Ratio||Net credit sales||Average trade receivables||7.56||8.66||-12.70|
|Trade Payables Turnover Ratio||Net credit purchases||Average trade payables||6.30||2.99||110.60||While average payables have remained same in line with last year, higher consumption of materials has led to increase in Purchase cost.|
|Net Capital Turnover Ratio||Net sales||Average working Capital||(3.28)||(151)||117.15||Sales turnover has increased by 93% YoY, however net working capital remains negative.|
|Net Profit Ratio||Net profit||Net sales||1.51%||-13.86%||-110.89||Company has a net profit of 7.5 crore in current year as compared to net loss of 35.61 crore in previous year.|
|Return on Capital Employed||Earnings before interest and taxes||Capital employed||9.81%||-4.64%||-311.68||EBIT has increased by almost 400% YoY, resulting into favourable ratio.|
|Return on Investment *||Income from invested funds||Weighted average invested funds||0.31%||0.33%||-8.68|
The ratios for the years ended March 31, 2022 and March 31, 2021 (on Consolidated Basis) are as follows:
|Ratio||Numerator||Denominator||March 31, 2022||March 31, 2021||Variance (%)||Reason|
|Current Ratio||Total current assets||Total current liabilities||0.88||0.81||8.43||Current ratio has improved as compared to previous year, mainly due to increase in receivables consequent to increase in volume.|
|Debt - Equity Ratio||Total debts||Shareholders equity||1.88||2.33||-19.59||Debt equity ratio has improved due to increase in total equity on account of equity issue and current year profits.|
|Debt Service Coverage Ratio||Earnings available for debt service||Debt service||0.64||0.44||46.42||Ratio has imporved due to incerase in earning compared to previous year|
|Return on Equity Ratio||Net profits after taxes||Average shareholders equity||7.34%||-44.64%||-116.44||Company has a net profit of 7.69 crore in current year as compared to net loss of 41.88 crore in previous year, resulting into increase in ROE.|
|Inventory Turnover Ratio||Cost of goods sold||Average inventory||2.53||1.23||O CM in o||While average inventory has remained same in line with last year, higher consumption of materials has led to increase in turnover.|
|Trade Receivables Turnover Ratio||Net credit sales||Average trade receivables||7.32||7.94||-7.82|
|Trade Payables Turnover Ratio||Net credit purchases||Average trade payables||6.24||3.34||86.61||While average payables have remained same in line with last year, higher consumption of materials has led to increase in Purchase cost.|
|Net Capital Turnover Ratio||Net sales||Average working Capital||(12.65)||(4.61)||174.13||Sales turnover has increased by 93% YoY, however net working capital remains negative.|
|Net Profit Ratio||Net profit||Net sales||1.35%||-14.71%||-109.20||Company has a net profit of 7.69 crore in current year as compared to net loss of 41.88 crore in previous year.|
|Return on Capital Employed||Earnings before interest and taxes||Capital employed||7.66%||-3.61%||-311.88||EBIT has increased by almost 400% YoY, resulting into favourable ratio.|
|Return on Investment *||Income from invested funds||Weighted average invested funds||8.42%||8.25%||2.12|
• During the year, the Operating Profit Margin has shown significant improvement of 4.80% in FY 2021-2022 as compared to -3.24% in FY 2020-21, indicating superior operational efficiency & optimization of raw material and manpower cost. The steep increase of 248% signifies increased Profit Margin and optimum utilization of resources.
• The Return of Net Worth (RoNW) ratio stood at 30.28% as compared to -231% in FY 2020-21, marking a positive turnaround of return to the stakeholders.
Corporate Social Responsibility (CSR)
To monitor and maintain its CSR operations, the Company has formed a CSR Committee. Because the Company has suffered losses in recent years, the provisions of Section 135 of the Companies Act, 2013 relating to CSR activities do not apply. However, the Company had undertaken certain voluntary initiatives like tree planting, donating vital items, visiting and assisting orphans and poor people, Blood donation camps and so on.
Risks and Mitigation Strategies Liquidity Risk: Though economic activity is improving post the COVID-19 pandemic, the economy is still facing headwinds in terms of inflation, high interest rates, global slowdown, central banks trying to reduce the liquidity in the market, etc. Your Company is putting its efforts to boost revenue and profitability levels thereby cash surplus is generated to meet its financial obligations. The Company also consolidated its manufacturing units and utilizing the proceeds to reduce its debt levels. However, the Company is working further to augment its working capital needs to meet the growth objectives.
Customer concentration: Your Company in order to diversify its client base from a single large customer and single segment, has been actively seeking new clients and delivering a wide range of products supported by cutting-edge tools and a design centre. The Company is also attempting to diversify its activities by entering thee-vehicles and other non-auto segments.
Rising input cost risk: Your Company is focusing on raw material cost optimization through various means such as conversion cost reduction, supply chain efficiency improvement, automation, and material yield improvement. Any increase in the price of raw materials, particularly steel, is passed on to the customer albeit some time lag, therefore the impact on profitability is minimal.
Competition risk: Competition from existing and new companies may reduce sales volume and/or damage profitability. However, your Company has strong and long-standing direct relationships with many OEMs. To stay ahead of the value chain, it has continued to invest in automation, improvement in delivery systems, and newer products without compromising on quality.
Market/economic risk: Economic slowdown or stagnation could harm both the Indian economy and the vehicle sector. These have been amplified in the state of economy above. Your Company is taking every precaution possible to mitigate the effects of such impact by being conservative and well set to participate in the auto sector growth story.
Supply chain disruptions and raw material shortages: Since the Company relies on third-party vendors to purchase raw materials and other supplies, any negative impact on supply chain disruptions and raw material shortages may have an adverse effect on production. As this will have a universal impact on the auto industry, your company will use its long-term relationships with its customers to solve the challenge of supply chain interruptions and RM shortages.
Environment, Occupational Health and Safety (EHS)
Environment, Social and Governance (ESG) standards are becoming an important aspect in the sustainability of each company and SEBI has made it mandatory for the 1000 listed companies to adopt the BRSR standards with effect from FY23. Though your company is not part of this list, the Board and Management have decided to form an ESG committee to monitor and implement the ESG standards in stages thereby your Company is ESG ready not only as a compliance matter but in the long term interest of all stakeholders of the Company.
The Company believes in "Safety First" and requires all employees, from the shop floor to senior management, to adhere to strict safety standards. Training and awareness programmes are held throughout the year to guarantee that staff are up to speed on all of the newest industry knowledge and sound skilled to manage the task with a zeal to excel.
The Company insisted on regular health check-ups of employees, thermal screening, and sanitization procedures in dealing with the initial wave of the COVID-19 pandemic. This ensured that the virus infected a very small number of employees.
The Company provides Annual health check-ups for all employees. Besides paramedical staff and emergency medical equipment are available in the Company to deal with industry specific health and safety issues among our people
The Company provides operators and staff with necessary fire-fighting, safety, and mock drill training on a regular basis. It also includes worker training in accident prevention, response, and emergency planning, as well as the usage of protective clothing and equipment. The Companys EHS management entails organising activities and procedures for recognising workplace potential risks, which aids in the reduction of accidents and exposure to hazardous conditions and chemicals.
Every year your Company celebrates safety week to reiterate its commitment to ensuring a safe workplace. Your company organizes training, sessions, mock drills and various competitions covering safety in all aspects of life such as health safety, household safety, Road safety etc. Towards social commitment, your Company arranges campaigns on Road for spreading awareness among the common public about Road safety by displaying banners.
The Company took a variety of measures to ensure successful prevention of CoronaVirus infection in the second and third waves, including thermal verification of employees at the entrance and exit gates, mandatory mask wear, and sanitization methods. In this regard, the Company complied with all instructions made by the Central, State, and Local Governments. Furthermore, it raised immunization awareness among its staff.
Wherever possible, the Companys manufacturing facilities are extensively automated. In addition, safety precautions are tightly maintained, and quality standards are strictly checked. The Companys quality system is being upgraded on an ongoing basis in order to bring it up to and maintain the worldwide standard. To avoid complaints, the Company meets all of the customers quality standards, and customer perceived quality is produced at work stations by adding "poka yoke." During the fiscal year 2018-19, the Company achieved QMS certification- IATF 16949 (created by The International Automotive Task Force (IATF) members). The Company has received the following quality certifications in the areas of TQM and QMS.
In addition to the foregoing, the Company employs a variety of other quality control measures, such as quality awareness, training, and involvement of all Shop floor team members in order to meet quality targets, regular and preventive maintenance of dies and other machines to produce high-quality parts, periodic review of supplier quality performance and escalation, and so on. Overall, the Company strives to consistently improve its product variety, product quality, and efficiency, resulting in client happiness and appreciation.
Internal Control Systems
Given the size and nature of the business, the Companys internal control system is appropriate. The rules and procedures of the Company are well-written and encompass the design, implementation, and maintenance of effective internal financial controls. External auditors undertake internal audits, auditing all parts of the business based on audit programs established by the Audit Committee and audit reports addressed quarterly by the Audit Committee in the presence of Auditors.
The Company ensures efficient resource use, precise financial transaction reporting, and rigorous adherence to applicable rules and regulations. The Board prepares and approves detailed annual and capital budgets for all of its functions on a yearly basis, and the committee monitors the process. The Company has replaced the existing Microsoft Dynamics AX 2009 with SAP ERP It is a low-cost and effective ERP system for strengthening the organizations internal control system. With the support of modern ERP and other constant upgrades, the Company would be in a better position to raise operational efficiency and cost effectiveness of overall operational controls.
Employees are recognized as the Companys most significant asset, and human resource management at Autoline has been a continual process in which various methods are constantly embraced and utilized to achieve the optimum performance. During the fiscal year under review, the Company took a number of efforts to improve employee morale and create a more cohesive working environment. Your Company provides pre-joining free health checkup to the new employee and welcomes with joining kit Towards aim of continual training to its personnel in the areas of skill development, managerial skills, innovation, creativity, and the development of quality workforce your Company has started Professor Friday. The Company arranges training every Friday on various topics including technical as well behavioural sessions through expert trainers. The Company encourages and motivates internal people to give training on their relevant field and thereby achieve sharing of information as well as personality development of the concerned employee. It is implementing a Performance Management System (PMS) to foster a performance-oriented culture throughout the organization.
To maximize potential, the Company has developed and implemented several human resource policies, such as the Policy on Death Benevolent Fund, the Rewards and Recognition Policy, the Star Award Policy, the Attendance Policy, and so on. In addition to the availability of self-funded Mediclaim known as the Autoline Employees Health Benefit Scheme. The Company sponsors/organizes programs and activities for the betterment of its employees such as birthday celebrations of employees, Sports events, cultural events Etc. for team building and a healthy environment. During 2021-22, the Company employed an average of 763 people.
The statements contained in this Annual Report, including the Directors Report and Management Discussion and Analysis may include forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations regarding future events. Numerous factors may cause the Companys actual results, performances, or achievements to differ materially from any future results, performances, or achievements that may be expressed or implied, given that the Companys operations are influenced by numerous external and internal factors beyond the control of the Management. The Company cannot guarantee the accuracy or achievement of these statements, assumptions, and aspirations. The Company assumes no obligation to publicly update, change, or revise any forward-looking statements in light of later events or developments.
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