Promoters of Affordable Robotic & Automation Limited Company are: (i) Milind Padole, aged 45 years is the Promoter and Managing Director of our Company. He has been a director of our Company since its inception viz. January 12, 2010 and has been designated as Managing Director of w.e.f February 1, 2018. He has completed his Bachelor of Engineering in Production from Mumbai University. He has more than twenty years of work experience in the field ranging from engineering and design, process study, robotic application, offline programming, assembly, material handling design, offline programming, project management, bulk storage and system design etc. He looks after the research and development along with the new product development. (ii)Manohar Padole, aged 75 years is the Promoter and Whole-time Director of our Company. He has been a director of our Company since its inception viz., January 12, 2010, and has been designated as the Whole-time Director w.e.f February 1, 2018. He is a graduate and has more than forty-five years of work experience in administration. Further, he looks after the business development, finance and formulation of the overall strategy for growth and future prospects of the Company.

Company Business Process: 1. Requirement understanding of the Industry. 2. Process formulation & Designing. 3. Simulation. 4. Parts Assembling. 5. Inspections and Corrections 6. Trials 7. Approval and Dispatch. With the successful completion of trial and satisfaction of the customer meeting their exact requirement, final approval from the customer is taken indicating their satisfaction with their requirement. Then they prepare to dispatch the automated machines to the customer’s site. They also ensure proper packaging and safe transit of the machines to the customer and help the customer with the installation .of the machine at their site. The Company business presently caters to both domestic as well as international markets. A small portion of their revenue which is roughly around 5% is derived from international markets. However, they have only 1 offshore office in China which looks after their operations in that country.

1. Assets and Liabilities Key Parameter
Year	Asset(Lacs)	Liabilities(Lacs)	Net Worth(Lacs)	Book Value	D/E	RONW	Receiveable days
FY13	916.22	837.96	78.26	31	10.71	55.39%	90
FY14	1670.49	1511.04	159.45	64	9.48	50.93%	41
FY15	2285.85	2113.89	171.96	69	12.29	8.18%	67
FY16	3239.97	2945.98	293.99	24	10.02	41.51%	149
*FY17	5,498.64	4,832.96	665.68	53	7.26	55.84%	143
*9MFY18	5,633.91	4,592.09	1,041.82	17	4.41	36.12%	72
Post Issue			4334.94	43	1.1	11.57%

*Since the Company started its Joint Venture ARAPL Intelligent Equipment Shanghai Co. Ltd in the financial year 2016-17, so consolidated financial statements have been prepared for the financial year 2016-17 onwards. 2. Profit n Loss Key Parameter (i) The Reveune of the company in last 5 years ( FY13 to 6MFY18) is 17.27 Cr, 24.23 Cr, 25.95 Cr, 47.09 Cr , 41.55 Cr and 46.74 Cr respectively. The Company is growing at a CAGR of 24.62%. (ii) The PAT of the company in last 5 years ( FY13 to 6MFY18) is 43.35 Lacs, 81.2 Lacs, 14.07 Lacs, 1.22.04 Cr, 3.71 Cr and 3.76 Cr respectively. The Company is growing at a CAGR of 71.39%. (iii) The EBITDA Margins of the company for FY13( 4.69%), FY14(6%) ,FY15(5.5%) , FY16(9%), FY17(20%) and 9MF18(16%) . (iv) P/B(post issue)= 1.97 (at cutoff price of 85) (v) Annualized EPS(post issue)= 4.93 (vi) Annualized P/E(post issue)= 17 .24 at the cutoff price of 85

3. Cash Flow Statement(all figures in Lacs)
Particulars	FY17	FY16	FY15	FY14	FY13
(i) Net Cash Generated from Operation	-70.18	391.58	20.08	-26.31	293.48
(ii) Net Cash Generated from Investment	-153.9	-203.66	-277.98	-70.65	-220.34
(iii) Net Cash Generated from Financing Activity	91.02	-146.37	446.36	144.89	-39.45
(iv) Total[ (i)+(ii)+(iii) ]	-133.06	41.55	188.46	47.93	33.69

Key Observations 1.The Company has issued 2,48,000 Shares at an Issue price of 75 to Pantomath Fund Managers LLP[48000 no. of Shares] and Pantomath Sabrimala AIF Pantomath Sabrimala SME Growth Fund I Series[2,00,000 no. of Shares]. 2. The Company has been facing working capital issues due to the nature of the business it operates into. Owing to this, the Company has accumulated unpaid tax liability as on 31st December 2017 totaling to Rs. 9.95 Cr as per Restated Standalone Financial Statements. However, out of the above-mentioned amount, the Company has partly paid its Income Tax dues of Rs. 3.32 Cr in the month of March 2018. However, still, around 6 Cr of liability is still pending which is double the PAT of FY17. 3.The Revenue from Operations in FY17 was at Rs. 40.26 Cr compared to Rs. 47.02 Cr in FY16. As per management, this decline in revenue has been majorly due to fewer orders compared to previous year; also certain of their orders took longer than expected time for completion. 4.The Company has recently started a new business vertical i.e Secondary Packaging. However, till date, the company has no order book into this category. 5.The Company mainly caters to automation in Automobile Industry. So their success is highly dependent on the growth of this industry. 6.The Promoters Mr. Milind Manohar Padole and Mr. Manohar Pandurang Padole together hold 62,49,500 Shares at a meager cost of 40 paise per share. 7.The Company has entered into joint venture with ARAPL Intelligent Equipment Shanghai Co. Ltd in FY16-17, so consolidated financials is prepared from FY17 onwards considering this joint venture as well. 8.EBITDA Margins has gone from 9% in FY16 to 20% in FY17, mainly due to the decrease in cost of material consumed and other expenses. 9.PAT was dipped to 14 Lacs in FY15 as compared to 81.20 Lacs in FY14 mainly due to increase in the cost of Finance, high employee cost and Depreciation.

Company believe that there are no listed Companies in India which are engaged in the business of providing turnkey automation solution to automotive, semi-automotive and manufacturing industries. Further there are no listed entities which are focused exclusively on the segment in which we operate.

Review and Recommendation of

Affordable Robotic & Automation Limited IPO

from our side is: Rating: 4/10. 1-5: Fair 5-7: Good 7-10: Excellent

Affordable Robotic & Automation Limited Village Wadki, Gat No. 1209, Taluka Haveli, Dist. Pune – 412308, India Phone No. +91-7720018914 E-mail: info@arapl.co.in Website: www.arapl.co.in