Autoline Industries Ltd Management Discussions.
World Economy Overview
Trade tensions between United States (US) and China, weakening economic outlook and higher volatility in commodity market along with financial strain across economies resulted in deceleration of the global economic growth. As per IMF, the growth in world economic output is expected to decelerate to 3.2% in 2019. On the positive side, however, IMF expects world economic output to recover and grow to 3.5% in 2020. Emerging market is expected to record a growth of 4.7% in 2020 after registering a growth of 4.1% in 2019. The growth in emerging markets would majorly lead by China and India. Conducive policy stimulus aided by supportive demographics has led to stabilization in economic stress in emerging economies. Growth in advanced economies has been expected to decline to 1.9% in 2019 and 1.7% in 2020. A positive outlook in 2020 for global growth is projected on account of robust demand recovery and accommodative monetary and scal policy.
Indian Economy Overview:
India is emerging as one of the fastest growing economies in the world. Government push in the form of its robust initiatives along with measures such as implementation of GST (Goods and Service tax), Make in India and other key reforms have propelled faster economic development. Such measures have helped India to move up by 23 places to 77th position in the World Banks Ease of Doing Business Index 2018. The global economic slowdown and other domestic concerns such as credit constraint, reduction in private investment and its cascading effect on liquidity, low sentiments affected Indias GDP growth rate to grow slower than expected. Indias gross domestic product (GDP) growth is reported at 6.8% in FY 2018-19, as compared to 7.2% recorded in FY 2017-18. As per the IMF and economic survey report July 2019, Indian economy is projected to grow by 7.0% in FY 2019-20 backed by anticipated pickup in investments and acceleration in consumption. Also recently, RBI has been continuously revising its repo rate downwards and further liberalizing FDI policy to combat the current slowdown in growth. Such adequate scal and monetary measures would gradually revive the growth in India and would assist to achieve a level up performance.
The short term subsiding effects of demonetisation and GST combined with slowdown in business activities across the globe have also re ected in economic indicators like Indias Index of Industrial Production (IIP), which registered a growth of 3.6% in FY 2018-19 as compared to that of 4.4% recorded in FY 2017-18. Retail in ation stood at 3.2% in June 2019 while Nikkei Purchasing Managers Index (PMI) for manufacturing in India, reached to 52.1 in June 2019 re ecting the healthy economic growth in India. Robust push for technology, growth of social infrastructure, digitisation, reducing unemployment and other major issues faced by the economy have been addressed in the Union Budget FY 2019-20.With the wider adoption of programs such as "Start-up India" and "Stand up India" and reforms such as upgradation of water transport, sound infrastructural upgradation along with higher FDI in flow are expected to make Indian economy grow faster in future.
Global Auto and Auto Ancillary Industry
The global automobile industry has evolved significantly over the past decade led by digital technology, change in customer sentiment and healthy economy. The industry is expected to have entered into a challenging phase in 2019, mainly because of adjustments to new auto emissions standards, shockwaves of Brexit and USMCA (United States- Mexico- Canada Agreement) deal and US-China trade. However, along with market iversi cation, digitisation and shifting industry landscape from the second half of FY 2019-20, the industry is expected to completely rebound by around 2023. As per ACEA (European Automobile Manufacturers Association), the global vehicles sales volume declined from 98.9 million units in 2017 to 98.1 million units in 2018.
Bloomberg New Energy Finance (BNEF) projects that by 2040 over 30% of the global passenger eet would be electric. The increasing trend of shared mobility segment would contribute majorly in the growth of global Electric Vehicle (EV) industry. As per Inside EVs report, the global EV sales volume registered 12.50% growth to reach sales volume of 0.18 million units in May 2019 from 0.16 million units as recorded in May 2018.
Indian Auto and Auto Ancillary Industry
Indian automobile industry holds the 4th position in the world, along with being the worlds 4th largest manufacturer of cars and 7th largest manufacturer of commercial vehicles in 2018. The industry has been witnessing sales downtrend largely due to liquidity crunch and weak retail sales. The Industry is also worried on adoption of BS VI norms proposed from April 2020 since BS-VI compliant vehicle will be more expensive. The Automobile sales declined from 26.27 million units in FY 2017-18 to 24.98 million during FY 2018-19. Although, the industry produced about 30.92 million vehicles in FY 2018-19 as against 29.09 million units in FY 2017-18, registering a growth of 6.26%. The industry also registered significant growth rate of 14.50% in exports in FY 2018-19. Growing OEM presence in the country and expanding manufacturing activities driven by government support would led to the growth of automobile industry in India.
Commercial Vehicles (CV) Market:
CV market comprised for about 4% of total domestic automobile market. During FY 2018-19, the CV segment registered sales of 1.01 million units exhibiting an annual growth rate of 17.55%, as compares to 0.9 million units recorded in FY 2017-18. Medium & Heavy Commercial Vehicles (M&HCVs) segments grew by 14.66% and Light Commercial Vehicles grew by 19.46% for the FY 2018-19. CV exports registered a growth rate of 3.17% during FY 2018-19.
Passenger Vehicles (PV) Market:
PV market comprised for about 13% of total domestic automobile market. PV production increased from 4.020 million units to 4.026 million units during FY 2018-19 while sales increased by 2.70% from 3.289 million units to 3.774 million units in FY2018-19. The growth in FY 2018-19 was the lowest in the last 4 years as reported by SIAM. Tightened lending norms, coupled with an increase in insurance premiums, dampened buyer sentiment. Within the PV segment, the sales of Passenger Cars, Utility Vehicle & Vans grew by 2.05%, 2.08% and 13.10% respectively in FY 2018-19 over the previous year. While PV exports declined by 9.64% during FY 2018-19.
Electric Vehicle Industry (EV):
The electric vehicles industry is at a nascent stage in India. It contributes less than 1% of the total vehicle sales, however it has a potential to contribute more than 5% in few years. In 2018, the entire Indian EV industry saw sales of 0.056 million units. As per SMEV report (Society of Manufacturers of Electric Vehicles), at present there are more than 4 lakhs electric two wheelers and few thousand electric cars on Indian roads. The mass conversion to electric vehicles may generate a US$ 300 billion domestic market for EV batteries in India by 2030. According to the report by Bloomberg New Energy Finance (BNEF), India would record much progress on electric two-wheelers, rickshaws and electric buses over the next 10 years and by 2040, EVs will constitute 40% of the total passenger vehicle eet in the country. However, while transportation infrastructure continues to be augmented, EV-charging infrastructure (with less than 1000 charging stations in India) is yet to take off. The Indian automotive industry has seen significant transformation in the EV segment with respect to its sustainable growth and pro tability.
Auto Ancillary Industry:
The auto ancillary sector contributes a significant portion of GDP, by accounting 2.3% of GDP as in FY 2017-18. The auto ancillary industry has registered a CAGR of 7.26% over a period of FY 2009-10 to FY 2017-18 and had reached to US$ 51.20 billion in FY 2017-18. Auto component production registered a growth of 12-14% in FY 2018-19 backed by strong demand growth in domestic and international markets. The growth of global original equipment manufacturers (OEMs) sourcing from India is turning the country into a preferable designing and manufacturing base.
Contributing about 26.20% and 17.82% respectively. The auto ancillary industrys exports grew by a CAGR of 17% from US$ 3.99 billion to US$ 13.50 billion between the periods starting FY 2009-10 to FY 2017-18. Europe accounted most of the total auto ancillary industrys exports of about 34%, followed by North America and Asia which contributed 28% and 25% respectively. The Indian auto component industry is expected to achieve US$ 200 billion revenues by 2026 and auto ancillary exports are expected to touch US$ 80 billion by 2026. In conjunction with the overall economic growth, the Government has implemented as well as also proposed various reforms and policies eyeing long term growth in domestic automobile industry. Increasing investment in road infrastructure, growth in the working population, competitive advantages facilitating emergence of outsourcing hub, technological shift with focus on R&D are supposed to drive the market of auto and auto ancillaries in India. With rapid rise in demand, driven by increase in middle class income and young population, Indian automobile industry (including component manufacturing) is expected to reach Rs.16.16-18.18 trillion (US$ 251.4-282.8 billion) by the year 2026. The sector is likely to see an upward trend in demand in the coming years with the improvement in economic environment and increase in investments.
Source: IBEF report on Automobile Components, May 2019 Government Initiatives: The Government in order to ensure persistent growth over the next decade have articulated their objectives for the future of the industry. Major scal initiatives such as the following have been introduced :
Automotive Mission Plan (AMP) 2016-26:
AMP 2026 has targeted a 4-fold growth in the automobiles sector in India over the next 10 years, which also include, auto ancillary & tractor industry. The mission also aims at growing the automobile sectors value to over 12% of the countrys GDP and generating an additional 65 million jobs.Under the AMP plan, an amount of US$ 388 million will be spent under national Automotive Testing and R&D Infrastructure Project to create state-of-art R&D infrastructure.
Pradhan Mantri Gram Parivahan Yojana (PMGPY): PMGPY envisages government investment on the automobile sector and its plans for infrastructure development in rural areas. Under the PMGPY scheme 10-12 seater vehicles would receive interest free loan of up to Rs 6 lakhs with a term period of 6 months. This has helped in connecting with remote areas thereby promoting public transport and the usage of commercial vehicles in the rural areas.
* Corporate Average Fuel Ef ciency:
The implementation of Corporate Average Fuel Ef ciency norms requires the manufacturers to improve their products fuel ef ciency by 10% between 2017 and 2021 and 30% or more by 2022, that would gradually lead to less maintenance cost and would result as an increase in aftersales market.
Electric Vehicles Promotion Policies:
The government has envisioned complete transition to electric vehicles by 2030 under NITI Aayog 2030. In February 2019, the Government approved the FAME-II scheme with a fund requirement of Rs10,000 crores (US$ 1.39 billion) for FY 2020-22. Also the GST rate for EV have been slashed from 12% to 5% and an additional tax benefit of Rs1.5 lakhs on the interest paid on the loans taken for the purchase of the electric vehicles (EVs) has been sanctioned in the latest Union Budget.
Other Policy Support:
Other major policies introduced by the government include increased customs duty on ancillary parts imports, establishing special auto parks & virtual SEZs for auto ancillary, lower excise duty on specific parts of hybrid vehicles, Auto Policy 2002, Bharatmala Pariyojana etc. would also aid in the growth of automobile industry
Future Market Trends:
The industry is expected to witness significant changes in the coming years. Following future market trends are expected to bring complete evolution in the automobile industry: Tech Evolution: The future mobility vehicles would be electri ed, automated, shared, connected and updated yearly to make driving easier, safer, cheaper and more comfortable. In addition, with increasing acceptance of digital solutions, a new wave of emerging technologies would be on the cusp of affecting the industry at different levels such as mentioned below:
Upcoming features of Technological Upgradation in different Business segments
|Vehicles||Driverless, Electricity driven and connected with smart sensors, real time vehicle tracking, geo fencing,driveranalysisandremotediagnostics|
|SupplyChainand||Digitised trucking, upcoming logistics hubs,|
|Operations||automated warehouses, robotics, augmented realityandIoT|
Meeting Customer Expectations: With disparate and varying spend capacity, high levels of awareness of products, rapidly evolving expectations and the demand for personalised products and services, customers are taking the centre stage in the automobile ecosystem in the country. In this scenario, development of organisational capabilities that being aligned to business lines and are dynamic in nature would help in understanding changing customer needs and deliver accordingly to meet these needs.
Globalisation Effect: The need to implement effective global and local strategies to manage risks and build their capability to drive strategies would be of paramount importance. India has been also emerging as a sourcing hub for engine components, with OEMs increasingly setting up engine manufacturing units in the country. Vendor Consolidation: Vendor plays a crucial role for the growth of an automobile manufacturing company. There is an increasing trend of vendor consolidation by OEMs to develop strong relationships with their suppliers and to reduce complexity and alterations in vehicle cost composition. It would further help OEMs to engage in exclusive research and development (R&D) partnership with their most innovative suppliers to ensure an adequate level of product differentiation. Vendors are primarily judged based on their spending on research and development, stable balance sheet, attrition rate, product quality and product rejection rate.
Company Overview :
Autoline Industries Limited (herein referred as "Autoline" or "the Company") is engaged in manufacturing sheet metal components, assemblies and sub-assemblies for automobiles sector. Established on December 16, 1996, the Company is a prominent Pune based leading auto components manufacturer and supplier to Original Equipment Manufacturers(OEMs) and Automobile Companies with presence in both domestic and international markets. Autoline has 7 manufacturing facilities backed up with in-house design & engineering services and commercial tool room. The Company is catering to global OEMs supplying over 1500 products getting assembled into different passenger cars and commercial vehicles.
Business Division Portfolio:
The Company is manufacturing sheet metal components,sub-assemblies and assemblies, Foot Control Modules, parking brakes, hinges, cab stay and cab tilt, exhaust systems, tubular structures, fabrications, etc. for large OEMs in the Automobile Industry. Following are the major business divisions:
|Concept, Style, Design,|
|Analysis & Engineering Services||Automotive engineering services for product design, development and validation|
|Press tool design, formability analysis|
|Tool Room||Press tool manufacturing, Jigs & xture|
|Pedal Control Systems|
|Mechanical Assemblies||Door Hinges, Jack Assemblies|
|Cab Stay and Cab Tilt|
|Complete Floor and Door Assemblies, Sub Assemblies|
|Medium and Large Stamped Assemblies||Load Bodies and Cross Beams|
|Tubular Assemblies and Sheet Metal Stampings|
Strong Client Base: The Companys client portfolio consists of Tata Motors, General Motors, Volkswagen, Ashok Leyland, Ford Motors, Fiat, Mahindra, Cummins, Tata Hitachi and Daimler. Tata Motors continues to be its prime customer. The Company is working with reputed players in the industry and is expecting to increase its client portfolio further in future.
Strong Product Portfolio: The Company holds an expansive portfolio of over 1500 products and also continuously upgrades its quality and performance. It is engaged in manufacturing of a wide range of products including assemblies and subassemblies.
Skilled Workforce: The Companys team is comprised of highly experienced, skilled and qualified engineers. Best and customised quality products are being developed by the Company with the help of its highly skilled workforce that has enabled the Company to stay on the top among its other competitors.
State of the Art Manufacturing Facilities: The Company is majorly involved in designing and manufacturing of wide range of products. Also the Company owns second largest tool-room in the auto-hub of Pune and owns one of the most advanced robotic welding facilities. At present the Company operates through 7 manufacturing facilities spread across Pune, Karnataka, Uttarakhand and Chennai.
Diversi cation Strategy: The Company is meticulously working to expand its business by entering into the global market in auto as well as diversi cation to nonauto sector. The Company had entered into Memorandum of Understanding with Tae Sung, Korea on April 19, 2018 for getting technical assistance for low cost manufacturing of stamping die, prototype parts, pedal box, automobile camera etc. and to collaborate with Tae Sung for the development of products as well as local and overseas markets.
Leveraging Existing Capabilities: The Company has been continuously exploring various business opportunities in auto and non-auto sector. The Company has huge capabilities to service higher volumes either from existing clients or new clients without incurring any further capex. The Companys subsidiary Autoline Design Software Ltd. ("ADSL") has completed trial and error testing of its E-cycle project and veri ed it with different aspects so as to make the project technically and commercially strong, feasible and more viable. The Company has been looking for suitable partner for its e-cycle project. Fund raising and Cost Saving Strategy: During the year, the Company raised Equity capital worth Rs 4625 lakhs including Rs 225 lakhs through convertible warrants,out of which, the promoters invested Rs1125 lakhs and private equity funds invested Rs 3500 lakhs. The proceeds had been used for repayment of loans and financing of working capital requirements. The Company is also exploring debt restructuring to optimize the interest costs. The Company is focused on cost optimization by improving operational productivity, manpower rationalisation, effective inventory management, tight control over scrap generation etc.
Consolidating Manufacturing Capacities: The Company had undertaken the task to consolidate its current level of installed product manufacturing capacities. During the year under review, the Company has also consolidated its operation in Dharwad, Karnataka by shifting its rented manufacturing facility to its own manufacturing facility.
Asset Monetisation: The Company has entered into MoU with a buyer to sell the land of its Mahalunghe unit, Pune and the manufacturing facility and employees will be shifted to its other existing units. The transaction is expected to complete in FY 2019-20 and proceeds will be utilised for the repayment of outstanding loan amount. Business Outlook: The Company is expecting a turnaround that would lead to a positive outlook for the coming years. Autoline has been working on increasing its product base by prototyping its pilot products. Moreover, the Company is also anticipating higher growth in stamping tool manufacturing business and overseeing the possibilities to develop the new business and expand existing business with JBM Auto systems, Mahindra & Mahindra, Tata and several other automobile giants. The Company has also worked on incorporating advanced manufacturing technologies, adoption of the best methods and tools in manufacturing of its products and a strong focus on product innovation and improvisation. The Company intends to grasp all the future opportunities in Automobile Industry and lead the Sheet Metal Assembly business in future.
The automobile industry is currently facing a major transformation in the electric vehicles segment due to the strong socio-political impetus. The Company is majorly engaged in auto ancillary or parts business, where it provides parts and body stamping tools & services to commercial vehicle, passenger vehicle and electric vehicles segment. Hence such transformation into electric vehicle segment will open opportunities to Autolines business in the future. With improved operations, consolidation of manufacturing units, raising low cost fund, debt reduction and other effective strategies and plans, the Company is con dent of achieving positive cash ows in the coming years.
Consolidated financial Performance:
The Company recorded consolidated operating revenue of Rs 45,213.32 lakhs during FY 2018-19 as compared to Rs 39,499.36 lakhs in FY 2017-18, exhibiting a growth rate of 14.48%. With efficient and effective cost savings and increased top line, the core EBIDTA (earnings before interest, depreciation and tax) stood at Rs 744.00 lakhs in FY 2018-19 as compared to loss of Rs 303.49 lakhs in FY 2017-18. The Company reported loss of Rs 494.84 lakhs in FY 2018-19, as compared to Rs 5,237.80 lakhs in FY 2017-18. During the year,Autoline recorded an exceptional gain worth Rs4,398.06 lakhs, which includes Industrial Promotion Subsidy (IPS) worth Rs 4,460.57 lakhs as reduced by the payment made for TDS compounding fees worth Rs 62.51 lakhs
The Companys net worth grew during the year to
Rs16,969.00 lakhs as against Rs13,180.80 lakhs during the previous year, registering a growth of 29% from FY 2017-18. This is mainly due to equity nance raised to repay its debt and working capital purpose. While Cash and Cash Equivalents also reduced from Rs 215.00 lakhs in FY 2017-18 to Rs 47.00 lakhs in FY 2018-19.
Details of significant changes in Key Consolidated Ratios, if any (i.e. change of 25% or more as compared to the immediately previous financial year)
· The Debtor turnover ratio has improved to 10.11x in FY2018-19 from 7.99x in FY 2017-18 due to significant improvement in revenue stream.
· The Interest Coverage Ratio has improved to -0.30x from -0.42x, due to better cost efficiencies achieved and significant debt reduction activities during the year.
· The Debt Equity ratio (excluding current maturities of debt in FY 2018-19) has accelerated from 1.84x in FY 2017-18 to 0.75x in FY 2018-19 largely on account of debt repayment by raising low cost equity nance.
· During the year, the Company has recorded lower losses at both operating and net profit level as compared to previous year led by increase in top line along with cost saving measures and major subsidy sanctioned during the year. Consequently, Operating Pro t Margin turned positive and stood at 1.65% in FY2018-19 as compared to -0.77% in the previous year and Net Pro t Margin recorded at 1.09% in FY2018-19 as compared to -13.26% in the previous year.
· Return on Net worth although negative at -3.28%, it has seen huge improvement by 92% year-on-year owing to better operational ef ciency, raising of equity funds to reduce the debt level and VAT subsidy received during the year.
Corporate Social Responsibility
The Company has appointed a CSR Committee to monitor and maintain its CSR activities. Since the Company has been suffering losses in its previous few years and hence the provisions of Section 135 of the Companies Act, 2013 with respect to CSR activities are not applicable to the Company. However, the Company has taken various CSR Initiatives voluntarily such as tree plantation, donation of necessary things during cultural events, visit and helping to orphanages and needy ones etc.
Risks and Mitigation Strategies
The entire auto ancillary industry is currently facing liquidity crunch due to weak consumer demand, volatile markets, transition to BS VI norms, liquidity crisis among non-banking lenders and several other factors.
Liquidity crunch is being faced by all the sectors and a major reform is expected from the government to address the issue. The company, as visible in the past, continuously works towards attracting various sources of funds to support its operations and to reduce debt levels. These include equity infusion,monetisation of non-core assets and consolidation of its manufacturing facilities to maintain its liquidity position.
Economic slowdown adversely impacted Indian economy as well as the automobile markets. The Companys revenue stream may get affected from certain unfavourable macroeconomic slowdown across the globe.
With efficient government stimuli, India is well set for strong growth in the coming years. The Company has wide array of products in its portfolio and the rising establishments of foreign and domestic OEMs in India augur well to diversify its client base. Also the Company is eyeing to enter into electric vehicle segment and further diversify its business to non-auto sector.
Raw Material Risk:
Raw material price uctuations along with dependency on thirdparty may have a significant effect on the costs, which might affect profit margins.
The Company adopts and pursues various cost control measures that enables to optimise its cost ef ciency. The Company passes through any increase in the price of raw materials, especially steel, so that there is a limited impact on its pro tability.
One of the myriad challenges automobile industry faces is ever increasing and tough competition. Under such circumstances it might be dif cult for the Company to achieve profound growth.
The Company enjoys strong and long standing direct relationship with many global OEMs. It has continued its investment in newer products and better quality control in order to stay ahead of the value chain.
Technology Obsolescence Risk:
The automobile industry is entering a new era, driven by the increasing move toward electric and hybrid-powered vehicles and the development of autonomous technology. Certain automobile equipment and software are prone to obsolescence risk which may adversely impact productivity.
The Company adapts its business models aligned with new trends and has adopted new ways to co-operate and collaborate with these technology players in order to thrive. The Company tackles obsolescence risk with proactive life-cycle management. This includes identifying the existing obsolescence risks and planning to facilitate easier maintenance of legacy equipment and access to spare parts.
Due to changes in international and domestic laws, tax regulations, technical standards and trade policies, the Company might face regulatory risk. Risk area particularly comprises of those related to more stringent vehicle safety and environmental norms.
Autoline stringently follows all the due policy and regulatory requirements. The Company constantly monitors the changing regulatory scenario and makes necessary modi cations as per the requirement. Customer Concentration Risk:
The performance of the Company is majorly dependent on its key customer Tata Motors. Any decline in demand of nal products of the companys customer might adversely affect the Companys performance financially and operationally.
The Company has been offering robust range of products and also has been proactively looking for new clients. Apart from major client, the Company is also planning to gradually increase its medium and small scale client base by offering customised products to its customers. It has been using different customer relationship enhancing strategies to retain existing clients and also to gain prospective new clients.
Environment, Health and Safety (EHS)
The Companys EHS management involves creating organized efforts & procedures for identifying workplace potential hazards which in turn assists in reducing accidents and exposure to harmful situations and substances. The Company provides periodic mandatory training to operators and staff on re- ghting, safety & mock drill. It also includes training of personnel in accident prevention, accident response, emergency preparedness, and use of protective clothing and equipment. EHS management also include the use of end-to-end business processes and requirements that are designed to systematically achieve continuous improvement in EHS performance. EHS management include increased integration with other software systems such as ERP to better streamline it in order to achieve overall sustainability management.
In order to achieve best in class quality control processes and to manufacture absolute quality products, the Company focuses on vigorous efforts and adopts high end technological advancements. It eventually helps in gaining significant customer satisfaction. The Companys manufacturing facilities are highly automated. Also the safety protocols are being diligently enforced and quality standards are being strictly monitored. The Quality system upgradation is an ongoing process in the Company to bring and keep the same to the level of global standard. The Company achieves all the customers quality requirements and Customer perceived Quality is produced at work station by adding "poka yoke" to avoid complaints. The Company has obtained QMS certi cation- IATF 16949 (developed by The International Automotive Task Force (IATF) members) during the year 2018-19. In addition of above the Company adopts various other quality control measures such as quality awareness, training & involvement of all Shop floor team members in order to achieve quality targets, regular and preventive maintenance of dies and other machines to produce good quality parts, periodic review of suppliers quality performance and escalation etc.
Internal Control Systems
The Companys policies and procedures are well-framed so that they include the design, implementation and maintenance of proper internal financial controls considering the size and nature of business. The Companys internal team and an independent Internal Audit Firm regularly monitor all of its business operations and any deviations are immediately brought to the notice of the Management and Audit Committee for immediate correction and to suggest the standard operating and control process. The Company ensures the optimal utilization of resources and the accurate reporting of financial transactions and compliance with applicable laws and regulations.
The Audit Committee periodically reviews the significant audit ndings, internal controls adequacy, accounting policies compliances, practices and standards as well as the statutory compliances. The Audit Committee reviews internal audit reports and the adequacy of internal controls from time to time. It aids in review and reporting of ef ciency and effectiveness of different processes and operations. The Company has implemented Microsoft Dynamics AX 2009, Enterprise Wide Solution and Enterprise Resource Planning (ERP) at all its plants covering all its businesses, planning and accounting processes. The Company would be in a better position to increase the operational ef ciency and cost effectiveness of overall operational controls with the help of ERP and other continuous improvements.
The Company provides rm atmosphere for development of different skills which enables it to recruit and retain quality professionals in all the elds. Autoline rmly believes that key to best business results is a superior talent pool. Employees are acknowledged as most valuable asset and human resource management at Autoline has been a continuous process, where different methods are being constantly adopted and applied for the achieving best performance. During the year under review the Company has taken various steps for the betterment of the employees and cohesive working atmosphere in the Company. Autolines HR policies provide a work atmosphere that leads to employee satisfaction, un agging motivation, and a high retention rate. The Company is devoted towards maintenance of employees entire work life cycle, to ensure timely interventions that help build future leaders. Autoline provides training to its employees on a continuous basis for skill building, management skills, innovation, creativity and developing quality manpower.
Autoline is driving Performance Management System (PMS) to build Performance oriented culture across the Organisation. For attaining the best potential the Company has formed and implemented various Human resource policies such as Policy on Death Benevolent Fund, Rewards and Recognition Policy, star award policy, a t t the n d a n c the P o l i c y the t c . T h the C o m p a n y a l s o sponsors/organizes programme and activities for betterment of its employees such as Annual Health Check-up, Sports events etc. in addition of availability of self-funded Mediclaim known as Autoline Employees Health Bene t Scheme, etc. As on March 31, 2019, the Company had a total strength of 962 employees.
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 Companys operations are in uenced 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.