Skoda Auto Volkswagen India, the Indian subsidiary of the German automotive manufacturer Volkswagen Group, has spent Rs 445.2 crore on ads for the fiscal year ended 31 March 2020.
The Skoda Auto India Private Limited (SAIPL) and Volkswagen Group Sales India Private Limited (VWGSIPL) amalgamation scheme with the corporation was authorized by the Hon’ble National Company Law Tribunal, Mumbai, during the year under examination. All assets, liabilities, rights, and responsibilities of SAIPL and VWGSIPL were transferred to and vested in the company under that order.
The name of the company was changed from Volkswagen India Private Limited to Skoda Auto Volkswagen India Private Limited and the Registrar of Companies, Pune, granted a new Certificate of Incorporation on 20 September 2019.
The designated date for accounting purposes was 1 April 2019 and 5 October 2019 was the effective date of the merger. Because of the above-mentioned merger, the financial statements show the figures for the combined company on a consolidated basis effective from 1 April 2019 onwards.
SAIPL was engaged in the manufacture and marketing of passenger cars and had its headquarters in Aurangabad. VWGSIPL was in the business of selling the cars made by the company to different distributors around the country as well as other Volkswagen Group brands.
For the financial year ended 31 March 2020, net profit stood at Rs 261,3 crore compared to Rs 323,4 crore in the previous fiscal year. Owing to the identification of deferred tax assets to the extent of deferred tax liability and adverse exchange rate variations, total comprehensive income during the year (net) decreased to Rs 123.5 crore from Rs 390.9 crore.
For the financial year, the revenue of the combined company decreased from Rs 11,238.3 crore to Rs 9300.5 crore as a result of the decline in domestic and export sales volumes due to adverse market conditions in the automotive sector and the restructuring of the product portfolio. Results were also affected by the implementation of new emission standards [BSVI].
The company said the board is working hard to enhance the company’s financial position and has embarked on numerous measures to increase revenue, control costs, and improve the plant’s performance.
