Autoline Industries Ltd Management Discussions.

Management Discussion and Analysis Report

Economic Overview

India’s economy is forecasted to grow at 7.4% in the current fiscal from 6.7% in Financial Year 2017-18 and accelerate further in FY 2019-20 to 7.8%, shows the International Monetary Fund’s (IMF) latest forecast. India’s economic growth will accelerate in the current and next fiscal years, according to the IMF consolidating the country’s position as the world’s fastest-growing major economy and opening a wider gap with China, which is projected to slow. IMF world economic outlook report forecasts that the stronger momentum experienced in 2017 is expected to carry into 2018 and 2019, with global growth to 3.9% for both years. For the two-year forecast horizon, the upward revisions to the global outlook result mainly from advanced economies, where growth is now expected to exceed 2% in 2018 and 2019. This forecast reflects the expectation that favorable global financial conditions and strong sentiment will help maintain the recent acceleration in demand, especially in investment, with a noticeable impact on growth in economies with large exports.

Report further shows that Emerging and developing Asia will grow at around 6.5 % over 2018–19, broadly the same pace as in 2017. The region continues to account for over half of world growth. Growth is expected to moderate gradually in China, pick up in India, and remain broadly stable in the ASEAN-5 region. This can be expected to provide further boost to India’s exports, which have already shown an acceleration in the current financial year. Indian economic growth is projected to strengthen, gradually recovering from the transitory adverse impact of rolling out the Goods and

Services Tax (GST) and measures to choke off the black economy, including Demonetisation. The Indian economy continued to grow strongly, as the economy recovered in the 2nd half post stabilisation of the GST regime. With improving investments, there are signs that a recovery is underway. Industrial activity has rebounded with strong industrial production growth, led by a rise in consumption, manufacturing. Strong vehicle sales growth and improvement in road freight transport following stabilisation of GST are further positive signs for continuing demand growth. Services indicators also show positive trends with services credit, services exports and imports clocking double digit growth. In the longer run, it is expected that GST will boost corporate investment, productivity and growth by creating a single market and reducing the cascading effect of tax.

As per the Asian Development Bank (ADB), India’s economic growth will pick up in 2018-19 to 7.3% on the back of improved rural consumption and a modest rise in private investment while the debilitating effects of Demonetisation and goods and services tax (GST) implementation dissipate. With respect to the Automobile Sector, India continued to attract Foreign Investments by major Auto Giants like Suzuki, Honda. Suzuki Moto Corp has lined up its investments of about $3 billion ( Rs. 20,000 Crores) in the Indian market over the next three years to maintain its market position and cater the big leap in the electric segment of its passenger cars.

Industry structure and developments

The auto industry is set to witness major changes in the form of electric vehicles (EVs), shared mobility, Bharat Stage- VI emission and safety norms. Electric cars in India are expected to get new green number plates and may also get free parking for three years along with toll waivers. India’s electric vehicle (EV) sales increased to 25,000 units during FY 2017-18 and are poised to rise further on the back of cheaper energy storage costs and the Government of India’s vision to see six million electric and hybrid vehicles in India by 2020.

The Indian auto industry is one of the largest in the world. The industry accounts for 7.1% of the country’s Gross Domestic Product (GDP). The Two Wheelers segment with 80 per cent market share is the leader of the Indian Automobile market owing to a growing middle class and a young population. Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has 14% market share.

Indian Automobile Industry (Performance during FY 2017-18) Production

The Industry produced 29,073,892 vehicles including passenger vehicles, commercial vehicles, three wheelers and quadricycle in April- March 2018 as against 2,53,29,383 in April-March 2017.

In volume terms the passenger vehicles sales including export stood at 40,35,252 units in 2017-18 as compared with 38,06,309 units in 2016-17. The growth is driven by Positive consumer sentiment, advanced technologies such as Automatic Manual Transmission (AMT Gearboxes), new launches, attractive schemes & offers by the manufacturers, good rainfall, and reduced lending rates. During the year under review, the country witnessed a steep rise in the prices of Petrol & Diesel and the same can be a point of concern for the growth of the industry as expected for FY 2018-2019. The overall commercial vehicles segment grew by 19.94% in the year under review with medium and heavy commercial vehicles (M&HCVs) growing by 12.48% and light Commercial Vehicles grew by 25.42%. In terms of volume, total commercial vehicles sold including export in the year under review are 9,53,320 against 8,22,353 in the year of 2016-17, 1,30,967 units more than the previous year. Three Wheelers segment registered a growth of 24.19% in April-March 2018 over April-March 2017.

The rapidly globalising world is opening up newer avenues for the transportation industry, especially while it makes a shift towards electric, electronic and hybrid cars, which are deemed more efficient, safe and reliable modes of transportation. Over the next decade, this will lead to newer verticals and opportunities for auto-component manufacturers, who would need to adapt to the change via systematic research and development.

The Indian auto-components industry is set to become the third largest in the world by 2025, Indian auto-component makers are well positioned to benefit from the globalisation of the sector as exports potential could be increased by up to four times to US$ 40 billion by 2020.

Your Company’s prime customer’s performance

Tata Motors passenger vehicle sales grew by approx. 19% YoY (Year on Year basis) with total volume of 184,743 vehicles. Tata Motors sold 1,34,860 cars with a marginal de-growth of 1.2% and 49,883 Utility Vehicles (UV) with a growth of 165.6% as compared with Fiscal 2017. The growth in UV segment was driven by strong demand for Nexon and Hexa. The Cumulative Domestic sales of Tata Motors Ltd. for Financial Year 2017-18 were 584,564 nos. (All vehicles), a growth of 21.9% over Fiscal 2017. Sales of Tata Tiago, Tigor and the newly launched Tata Nexon contributed to the higher sales as compared to previous year.

Auto Ancillary Industry

The Indian auto-components industry has experienced healthy growth over the last few years. Some of the factors attributable to this include: a buoyant end-user market, improved consumer sentiment and return of adequate liquidity in the financial system. The auto-component industry of India has expanded by 14.3 per cent because of strong growth in the after-market sales to reach at a level of Rs 2.92 lakh Crores (US$ 43.55 billion) in FY 2016-17. The industry is further expected to grow to US$ 47-49 billion in FY 2018. The auto-components industry accounts for 2.3 per cent of India’s Gross Domestic Product (GDP) and employs as many as 1.5 million people directly and indirectly each. A stable government framework, increased purchasing power, large domestic market, and an ever increasing development in infrastructure have made India a favorable destination for investment.

The Foreign Direct Investment (FDI) inflows into the Indian automobile industry during the period April 2000 – December 2017 were recorded at US$ 18.41 billion, as per data by the Department of Industrial Policy and Promotion (DIPP).


Government has taken host of measures in past and during the year under review to boost industrial growth and attract foreign investment in India, reforms include implementation of GST, Insolvency and Bankruptcy Code and Bank recapitalization plan. The out-turn of those measures can be noted that India has leapt 30 ranks over its previous rank of 130 in the World Bank’s Doing Business Report 2018. Automobile Industry being an interlinked sector, it is more prone to demand fluctuations, growth in other sectors and economic performance. The Government has undertaken many steps for the growth prospect such as the Government notified anti-dumping duties and countervailing duties on various steel products to address dumping of cheap steel imports. The Government also rolled out a New Steel Policy in May 2017. The Government has initiated the Pradhan Mantri toYojana for development and refinancing micro industrial units. To address some of the constraints faced by apparel firms, cabinet announced a Rs. 6000 crore package for the apparel sector on June 2016. Government in December 2017, approved the scheme for capacity building in textile sector with an outlay of Rs. 1300 crore for the period from 2017-18 to 2019-2020. For the purpose of promotion of employment in the leather & footwear sector, a scheme was announced in December 2017 with an outlay of Rs. 2600 crore over three financial years from 2017-18 to 2019-2020.

The Government has been increasing its investment over the period of time on building infrastructure in the sectors of Roads, Railways, Ports, Telecom, Civil Aviation, Power etc. to support India’s long-term growth.

The Service sector continued to be the key driver of India’s economic growth, and is expected to contribute almost 72.5 % of GVA (gross value added) growth in 2017-18. The Government has taken many initiatives in the different services sector, which include digitization, e-visas, infrastructure status to logistics start-up India, schemes for the housing sector etc. which could give a further fillip to the growth of Indian Economy.

With good monsoon and the measures taken by the Government as above including Make in India programme and Start-up India are attracting foreign investments and will surely help to boost manufacturing in India, Industrial as well as Consumer demand is expected to rise.

Some of the major initiatives taken by the Government for Automobile Industry are:

The Government of Karnataka is going to obtain electric vehicles under FAME Scheme and set up charging infrastructure across Bengaluru, according to Mr. R V Deshpande, Minister for Large and Medium Industries of Karnataka.

The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for introduction of electric vehicles (EVs) in their public transport systems under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The government will also set up incubation centre for startups working in electric vehicles space.

Energy Efficiency

Ministry for Power and New and Renewable Energy, Government of India, is planning to procure 10,000 e-vehicles via demand aggregation, and has already awarded contracts to Tata Motors Ltd for 250 e-cars and to Mahindra and Mahindra for 150 e-cars.

The government is planning to set up a committee to develop an institutional framework on large-scale adoption of electric vehicles in India as a viable clean energy mode, especially for shared mass transport, to help bring down pollution level in major cities.

Automotive Mission Plan: 2016-26 is collective mission of Government of India and the Indian Automotive Industry on where the Vehicles, Auto-Components and tractor industries should reach over the next ten years in terms of size, contribution to India’s development, global footprint, technology, competitiveness and institutional structure and capabilities. It further envisages that the government and the Indian Automotive industry will work together to address all the key issues to take India to its rightful position in the global auto industry’s sweepstakes. AMP 2026 will help Indian Automotive industry to focus on its strengths and improve its competitiveness in select segments.

In order to keep up with the growing demand, several auto makers have started investing heavily in various segments of the industry during the last few months. The industry has attracted Foreign Direct Investment (FDI) worth US$ 18.413 billion during the period April 2000 to December 2017, according to data released by Department of Industrial Policy and Promotion (DIPP). This growth has been attributed to robust demand for auto components from domestic original equipment manufacturers (OEMs), particularly the two-wheeler and passenger-vehicle industries that together constitute about two-third of overall ancillary industry size. Additionally, stellar growth in commercial vehicles as well as the tractor segment has further supported overall volume growth. A further pick-up in rural income combined with overall improved demand outlook and increased construction and mining activities bode well for the growth to sustain.

Investments in India

As per a trade review released by The Commonwealth in 2018, India emerged as the top recipient of greenfield FDI Inflows from the Commonwealth.

According to Department of Industrial Policy and Promotion (DIPP), the total FDI investments in India during 2017-18 stood at US$ 44.86 billion, indicating that government’s effort to improve ease of doing business and relaxation in FDI norms is yielding results.

Some of the recent/planned investments and developments in the automobile sector in India are as follows:

The only electric automaker in India, Mahindra and

Mahindra Ltd, has partnered with Uber for deploying its electric sedan e-Verito and hatchback e2o Plus on Uber platforms in New Delhi and Hyderabad.

Mahindra & Mahindra (M & M) is planning to make an additional investment of Rs 500 crore (US$ 77.23 million) for expanding the capacity for electric vehicles in its plant in Chakan.

In April 2018, Motherson Sumi Systems signed a deal to acquire Reydel Automotive for US$ 201 million. The acquisition will help the company to enter new geographies and get new customer portfolios. and industrial parts maker, is planning to invest Rs 300 crore (US$ 46.66 million) per annum over FY18-19.

Setco Automotive is going to invest Rs 250 crore (US$ 38.62 million) over the next two to three years for capacity expansion and modernisation. By 2026, India is expected to be the third largest automotive market by volume in the world.

Global car majors have been ramping up investments in India to cater to growing domestic demand. These manufacturers plan to leverage India’s competitive advantage to set up export-oriented production hubs.

Ashok Leyland has planned a capital expenditure of Rs 1,000 crore (US$ 155.20 million) to launch 20-25 new models across various commercial vehicle categories in 2018-19.

References: Media Reports, Press Releases, Department of Heavy Industries, Department of Industrial Policy and Promotion (DIPP), Automotive Component Manufacturers Association of India (ACMA), Society of Indian Automobile Manufacturers (SIAM), Economic Survey & Union Budget 2017-18, Indian Brand Equity Foundation (IEBF) etc.


Increase in Fuel prices may lead to cut in demand of Passenger and Commercial vehicles

The recent steep increase in the crude oil prices of Petrol as well as Diesel may lead to lesser purchases of new Passenger & Commercial Vehicles which may affect the sale of the OEM’s and in turn, your company, as it is a part of the automobile industry.

Increase in input prices may have a material adverse effect on the Company’s operations

Due to intense price competition and the Company’s high level of fixed and borrowing costs, the Company faces a threat of not being able to cope with the changes in commodity prices.

Pressure on margins may affect the projected financials

Autoline’s prime customer is Tata Motors Ltd. Pricing and costing pressure by the client may lead to lower margins and thus affecting the projected financials and cash flows.

Transition to Green Effect

Sales of electric vehicles are hard to predict as consumer demand may fail to shift in favour of electric vehicles. Beyond the costs, electric car makers have a lot of convincing to do with consumers. Electric car makers are finding that people are worried about how far they can travel in electric cars before their batteries peter out. Those charging stations are another challenge. Setup of proper charging station can alleviate a number of concerns consumers have about electric cars.

Impact of foreign markets

Economic growth of foreign markets also influences the Indian economy and automobile market, a slower than expected global economic recovery or a significant disruption could have a material adverse effect on the Company’s business and its operations. Any fluctuation/ change in the Foreign policies is a threat which cannot be ignored.

Threats from Competitors the Indian arm of Germany’s automotive

There are general threats from competitors on account of longer operating histories, strong financials etc.

Fall in the performance of any of its Subsidiary/ Joint venture Companies may have an impact on the Company’s operations

The Company has made and proposes to make investments in its subsidiary companies. Any deterioration in the performance of such subsidiary companies/ Joint ventures may or may not have an impact on the Company’s financial performance.

Impact of Government policy and regulatory changes

The change in government policies, taxes and regulatory restriction etc. may have some impact on sales figures for certain time span.

Notwithstanding the various challenges, the industry’s long-term prospects remain bright and threats can be avoided by adopting latest technology, contributing in the development of electric and hybrid vehicles market and its manufacturing eco-system, proper fund planning, diversifying the product portfolio. The growth will be driven mainly by healthy economic growth, good performance of interlinked sectors, advanced technologies, changing consumer preferences, replacement demand and rising aspirations, Government’s increased spending on infrastructure development, thrust on rural economy and new product launches, among others.


Your Company has always been a firm believer in the long term potential of the Indian automotive industry. The Company’s capacity expansions have underpinned its robust growth in the first last few years, several macro headwinds have obstructed the full swing growth of the automotive components industry including flagging vehicle sales, high interest rates, government policy, rising inflation etc The Company has suffered a lot from said setback and has undermined the Company’s capacity expansions, infrastructure and utilizations and impacted profitability in the Financial Year 2017-2018.

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

Infrastructure Development in rural as well as urban areas and pro-active policies are signs of economic revival after the setbacks of Demonetisation and Goods & Services Tax (GST) implementation. In February 2018, Ministry of Heavy Industries and Public Enterprises, Government of India, unveiled Draft National Auto Policy. The objective of the policy is to create an enabling environment for the automotive industry and address the key issues impacting the industry. Few of the proposed guidelines of the policy are as under:

Implementation of a comprehensive long-term roadmap to define the emission standards, with a target to harmonizing the most stringent global standards by 2028.

Adopt reduction in CO2 through Corporate Average Fuel Economy (CAF) regulations.

Introduce acompositecommoncriteriontoreduceCO2 costs in the areas of SCM, Process Improvements emissions.

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

Your Company geographically expanded by setting up facility in Chennai, a largest automotive and auto component manufacturing hub of India in terms of volumes and investment. Also, during the year under review, the new plant at Dharwad Manufacturing Facility became operational and the Company has started receiving orders. The order of Rs. 25 Crore for load body manufacturing is received from existing customer. It is expected that turnover of Dharwad Unit will reach the mark of Rs. 40 Crores in two years.

In order to survive in the challenging and competitive environment, the company kept its focus on improving operational efficiencies.

Diversification & Expansion

Your Company is exploring various business opportunities inhalfofthelast decade.However, the automotive sector. The company is currently pursuing its ‘Electronic Cycle’ (E-Cycle) project; the Company is currently in search of a marketing partner for the same. The Companycapital costs, . is currently working on prototyping of its pilot products. In addition to the above, the company is also anticipating higher growth in stamping tool manufacturing business and overseeing the possibilities to develop the business with Bajaj Auto, JBM Auto systems, Mahindra & Mahindra, Tata and several other automobile majors.

In line of the Diversification strategy, your Company has recently signed a Memorandum of Understanding (MoU) with TS Engineering Limited ("Tae Sung") of Korea for getting technical assistance for low cost manufacturing of stamping dies, prototype parts, pedal box, automotive camera etc. and to collaborate with Tae Sung for the development of products as well as markets local and overseas.

Fund Raising/Cost Saving

A negative cash flow leads to lack of availability of liquid funds. As such, for the purposes of expansion, diversification, repayment of term loans and overall improvements, funds which have low cost need to be infused in the Company’s share capital. Your Company’s efforts fructify during the year under review again and the Company has raised 40.25 Crore by way of allotment of 49,69,134 equity shares to the promoters and other investors and the proceeds have been applied for repayment of loans, financing of working capital requirements. In line with the same, the Company is also exploring possibilities to raise funds equity as well as debt in organic and inorganic manner to mobilize funds for working capital requirements, expansion, diversification, repayment of identified loan and other general corporate purposes.

During the year under review, the company has saved significant and Manpower reduction. The Cost saving initiatives are being taken on regular basis and the Company has been able to achieve satisfactory cost savings with the task of supplier rationalization, inventory management, system improvement, revising credit periods etc.

Manufacturing capabilities

The Company is one of the largest sheet metal components manufacturers primarily engaged in designing and manufacturing of a wide range of products weighing from a gram to 400 kilograms including assemblies and sub-assemblies like loadbody, outer-door-assembly, roof assembly, floor assembly, foot control modules, parking brakes, door hinges, cab stay and cab tilt, exhaust systems, tubular structures, fabrications, etc; the product catalogue boasts over 2,500 products. The company owns second largest tool-room in the auto-hub of Pune and one of the most advanced robotic welding facilities. It operates through 10 manufacturing facilities scattered across Pune, Dharwad, Uttarakhand and Chennai; 8 of these facilities are built on company’s own land totaling over 120,000 sqmt. The clientele include General Motors, Volkswagen, Ashok Leyland, Ford Motors, Fiat, Mahindra, Cummins, Tata Hitachi and Daimler along with, of course, Tata Motors which still continues to be their largest customer.

Since its inception, your Company always focused on adherence to quality standards, enhancing production efficiency, upgrading to fast changing requirements

OEMs, customization of products and solutions according to customer needs, 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 have yielded fruitful results now.

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

Due to excellent quality in work, cost competitiveness, and operationally. timely deliveries and State of the Art Tool Room facility with latest CAD /CAE/ CAM facilities, the Company is able to accept and execute new orders from existing as well as new customers. The Company is expecting upward sales trend from July, 2018 onwards as the demand from its OEMs would be increased.

Your company is confidentto grab all the opportunities arising in Automotive Industry and lead the Sheet Metal Assembly business in the years to come.


Auto Ancillary Industry requires high amount of capital outflow and for which a proper cash flow is required to andmaintained in order to perform the operations efficiently effectively.

The Company is currently facing several adverse financial and other constraints:

Tight Financial Position & Liquidity crunch: Due to incurring of losses in previous few years and increased cost of borrowed funds, incurring of fixed cost and rise in direct costs, a negative cash flow round the year has resulted into a severe liquidity crunch in the Company. Even, the whole auto ancillary industry is facing high cash crunch due to low demand, volatile markets, increased fuel and oil prices and several other factors.

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

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

Technological Changes: New technology is arriving every day. To be successful, one has to be updated and well versed with the latest manufacturing technologies. The changing technologies have led to a shortening of the life cycle of new vehicles. The Company is in the process to install automated machines and robots to cope with demand and also to compete. In addition, our focus on rationalization both in terms of size and functions, enables us to continue to complement the manufacturing excellence programs that are being developed. Also, the new Automated Manual Transmission gearboxes (AMT) are in good demand by the consumers.

High dependency on few customers: The performance of the Company is completely dependent on the performance of its key customers and decline in demand of finalproducts of the company’s customer will definitelyadversely affect Inthe company’s performance financially addition of above there are possibilities to intensify risks by change in economic and monetary policies of government adversely affecting business sentiments of the company, risks associated with human resource, Force Majeure, occurrence of unforeseen events, growing used car market with several new chains entering may create obstacle to the rapid growth of Automotive Industry and any other business risks.

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


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


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

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

Your Company has implemented Microsoft Dynamics AX 2009, Enterprise Wide Solution, Enterprise Resource Planning (ERP) at all its plants covering all its businesses, planning and accounting processes. With the help of ERP and continuous improvements, your Company will be in a better position to increase the operational effectiveness of overall operational controls. Your Company had also appointed M/s. Ketan H. Shah & Associates, Pune,

Chartered Accountants as Internal Auditors for the financial year 2017-18. The Audit Committee reviews internal audit reports and the adequacy of internal controls from time to time.


In FY 2017-18, the consolidated revenue of the Company was Rs. 39499.36 Lakhs, an increase of Rs. 532.9 Lakhs as compared to the previous year ( Rs. 38966.47). Increase in Sales and the measures undertaken to reduce the costs have shown results as the income from operations have gone up. The Consolidated EBIDTA for the year decreased by 28.94% to Rs. 686.5 Lakhs from Rs. 966.1 Lakhs in the previous year. Management remained focused on cost optimization and value enhancement during this period.

Consolidated loss after tax for Financial Year 2017-2018 before minority interest and associate income is Rs. 5237.8 Lakhs.

Rs. In Lakhs except EPS data
PARTICULARS Consolidated Financials
2017-18 2016-17*
Income from Operations 39499.36 38966.47
Other Income 989.96 411.59
Employee Benefit Cost 3583.44 3521.77
Profit Before Interest, 686.47 966.13
Depreciation & Taxes
Finance Costs 3686.03 3675.17
Depreciation 2225.98 2347.00
Profit Before Tax but (5225.54) (5056.03)
before Exceptional Items
Exceptional Items 0 (3390.97)
Tax expense 12.26 (1256.24)
Profit After Tax but before (5237.80) (7190.76)
deducting minority interest
Profit/(Loss) for the year (5186.40) (7131.75)
Earnings per share ( Rs. ) – (29.05) (50.31)

* The previous year’s figures are made comparable with current year’s figures due to IND AS applicability in the current year. .

Capital expenditure:

During the year under review your Company has invested Rs. 106.93 Lakhs towards capital expenditure mainly in plant and machinery and other miscellaneous fixed assets. The capital infusion will continue in a planned manner to further improve, enhance, automate and modernize plants and designing and development activities in the current year 2018-19.


Your Company had a total strength of 1301 employees as on March 31, 2018. During the year under review your Company has taken various steps for the betterment of the employees and cohesive working atmosphere in the Company. Your Company believes in people and acknowledges its employees as most valuable asset and therefore human resource management is an ongoing activity in the Company which work for providing tools and methods to the Company for moving forward.

The Company aims to retain its talent pool from separation with the Company and for the same the Company introduced employee retention programme. The Company has formed and implemented various Human Resource Policies such as Policy on Death Benevolent Fund, Rewards and Recognition Policy, Star Award Policy, Attendance Policy etc. The Company also sponsors/organizes programme and activities for betterment of its employees such as Annual Health Checkup, Sports events etc. in addition of already started self-funded Mediclaim known as ‘Autoline Employees Health Benefit Scheme’, etc.

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

Trade Union at E-12-17, Bhosari, Pune unit is dissolved by the workers on April 29, 2017. A cordial Industrial Relations environment prevailed in all the manufacturing units of the Company during the year under the review.


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