Printed at LSGP 9841011561 WABCO INDIALIMITED WABCO 15th Annual Report2019 Networth Return On Capital Employed Revenue 1,780 In Rs. Cr. In Rs. Cr. % 2,854 1,526 27.2 26.9 2,614 1,266 2,261 2,000 1,068 25.3 24.9 863 1,348 20.9 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 Profit After Tax 282 Earnings Per Share 149 Dividend Per Share 273 9 In Rs. Cr. In Rs. 144 In Rs. 8 7 213 113 203 107 6 5 121 64 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 41x Shareholder Value Creation Rs. Per Share 8284.55 27x 8x 196.85 18-Jun-09 18-Jun-10 18-Jun-11 18-Jun-12 18-Jun-13 18-Jun-14 18-Jun-15 18-Jun-16 18-Jun-17 31-Mar-19 WABCO INDIA LIMITED Board of Directors Listing of Shares with Large Sector, M LAKSHMINARAYAN National Stock Exchange of India Limited Adityapur Industrial Area, Gamharia, Chairman Mumbai Seraikella-Kharsawan Dist. Jharkhand 832 108 NARAYAN K SESHADRI BSE Limited, Mumbai Tel. : 0657 398 5700 DR LAKSHMI VENU Share Transfer Agent Fax : 0657 238 7997 LISA J BROWN Sundaram-Clayton Limited Unit - 1 & Unit - 2 SEAN DEASON "Jayalakshmi Estates", 1st Floor, Plot No. AA8, Central Avenue, 29 Haddows Road, Chennai - 600 006 Auto Ancillary SEZ, CHRISTIAN BRENNEKE Tel. : 044 - 2827 2233 Mahindra World City, PHILIPPE COLPRON 044 - 2828 4959 Natham Sub-Post, Chengalpet, Kancheepuram District 603 002 Fax : 044 - 2825 7121 Managing Director Tamil Nadu P KANIAPPAN E-mail : [email protected] Tel. : 044 3090 1200 [email protected] Chief Financial Officer Plot No.11, Sector 4, SIDCUL, R S RAJAGOPAL SASTRY Bankers IIE Pantnagar, Rudrapur Udham Singh Nagar, Citibank N.A. Company Secretary Uttarakhand - 263 153 3rd Floor, 2 Club House Road, M C GOKUL Tel. : 05944 250885 Chennai 600 002 Audit Committee KH 159-162, 164 Village Dhakauli BNP Paribas NARAYAN K SESHADRI Nawabganj, Barkeni Dewa Road, Prince Towers, 3rd Floor, 25/26 College Road, Chairman Somaiya Nagar, Barabanki, Chennai 600 006 M LAKSHMINARAYAN Lucknow, Uttar Pradesh 225 123 SEAN DEASON State Bank of India Tel. : 05248 230065 Corporate Accounts Group Branch Stakeholders Relationship WABCO Technology Centre of India 3rd Floor, Sigappi Achi Building Committee & Global Business Services 18/3, Rukmanilakshmipathy Road LISA J BROWN "First Software Park", Chairperson Egmore, Chennai 600 008 Third and Second Floor, M LAKSHMINARAYAN 110, Mount Ponnamallee Road, Porur, Auditors P KANIAPPAN Chennai 600 116 Corporate Social Responsibility S.R. BATLIBOI & ASSOCIATES LLP Tel. : 044 6689 8000 Committee Chartered Accountants Tidel Park, 6th Floor, P KANIAPPAN Contents Page No. Chairman A - Block (Module 601, 701-702), 4, Rajiv Gandhi Salai, M LAKSHMINARAYAN Notice to the Shareholders 4 Chennai 600 113 LISA J BROWN Directors’ Report to the Shareholders 19 DR. LAKSHMI VENU Registered Office Management Discussion and Analysis Report 40 Nomination and Remuneration Plot No. 3 (SP), III Main Road, Committee Ambattur Industrial Estate, Business Responsibility Report 47 NARAYAN K SESHADRI Chennai 600 058 Chairman Tel. : 044 4224 2000 Report on Corporate Governance 55 M LAKSHMINARAYAN Fax : 044 4224 2009 LISA J BROWN Website : www.wabcoindia.com Auditors’ Certificate on Corporate Governance 66 SEAN DEASON Email: [email protected] Auditors’ Report to Shareholders 68 Risk Management Committee CIN: L34103TN2004PLC054667 NARAYAN K SESHADRI Balance Sheet 78 Chairman Factories Statement of Profit & Loss 79 SEAN DEASON Plot No. 3 (SP), III Main Road, P KANIAPPAN Ambattur Industrial Estate, Cash Flow Statement 81 R S RAJAGOPAL SASTRY Chennai 600 058 M S RAVIKUMAR Tel. : 044 4224 2000 Notes to Financial Statements 83 V RAMANATHAN Fax : 044 4224 2009 1 WABCO INDIA Limited 21.06.2019.p65 1 7/19/2019, 3:45 PM WABCO INDIA LIMITED 2 WABCO INDIA Limited 21.06.2019.p65 2 7/19/2019, 3:45 PM WABCO INDIA LIMITED FINANCIAL HIGHLIGHTS Rupees in lakhs Year ended March 31st 2014-15 2015-16 2016-17 2017-18 2018-19 Profit and loss Account Revenue from Operations 134,796 199,954 226,057 261,385 285,414 Other income 2,030 4,012 3,615 4,653 7,247 Total income 136,826 203,966 229,672 266,038 292,661 Gross profit before interest, depn & tax 22,365 32,670 36,255 44,514 48,235 Depreciation 4,667 5,620 6,163 6,174 7,144 Profit before interest & tax 17,699 27,049 30,092 38,340 41,091 Interest 36 15 46 162 – Profit before taxation 17,663 27,034 30,045 38,178 41,091 Profit after taxation 12,066 20,337 21,348 27,283 28,217 Balance Sheet Net Fixed assets 34,137 37,254 37,960 41,134 45,926 Investments 3,920 21,835 29,814 44,565 31,343 Net current assets 49,407 46,594 55,809 61,762 92,973 Non-current assets other than Fixed assets 2,292 3,426 5,579 8,163 11,270 Total 89,756 109,110 129,161 155,623 181,512 Share capital 948 948 948 948 948 Reserves & surplus 85,356 105,830 125,694 151,640 177,049 Networth 86,304 106,778 126,643 152,589 177,998 Noncurrent liabilities 1,807 1,326 1,660 2,659 3,119 Deferred taxation (net) 1,645 1,006 859 376 396 Total 89,756 109,110 129,161 155,623 181,512 EPS (Rs) 63.6 107.2 112.6 143.8 148.8 DPS (Rs) 5.0 6.0 7.0 8.0 9.0 Book value per share (Rs) 455.0 562.9 667.7 804.5 938.4 Return on capital employed (ROCE)% 20.9 27.2 25.3 26.9 24.9 Return on networth (RONW)% 14.9 21.1 18.3 19.5 17.1 Fixed assets turnover (no. of times) 4.1 5.5 6.1 6.5 6.4 Working capital turnover (no.of times) 3.0 4.4 4.4 4.5 3.7 Gross profit as % of sales (EBITDA) 16.6 16.3 16.0 17.0 16.9 Gross profit as % of total income 16.3 16.0 15.8 16.7 16.5 Net profit as % of total income 8.8 10.0 9.3 10.3 9.6 Debtors turnover ratio 5.1 5.4 4.7 4.5 4.5 Inventory turnover ratio 6.9 7.5 7.7 11.5 12.9 Current ratio 3.6 2.6 2.9 2.7 3.4 a) Figures for 2015-16, 2016-17 and 2017-18 are as per Indian Accounting Standards (Ind AS) prescribed under the Companies Act, 2013. Hence, the figures are not comparable with those of the previous years' figures. b) ROCE is profit before interest and taxation divided by average networth plus loan funds. c) Fixed assets turnover is sales divided by average net fixed assets as at the end of the year. d) Working capital turnover is sales divided by average net current assets as at the end of the year. e) DPS is dividend declared for the year. f) RONW is profit after tax divided by average networth. While the return in absolute terms has increased for the year, the RONW % has decreased as the rate of increase in average networth was more than the rate of increase in returns. The rate of return was weighed down by higher effective tax rate due of completion of tax holiday status at one of the plants and unfavorable change in the sales mix. 3 WABCO INDIA Limited 21.06.2019.p65 3 7/19/2019, 3:45 PM WABCO INDIA LIMITED Notice to the Members appointed as the statutory auditors of the Company NOTICE is hereby given that the Fifteenth Annual General to hold office for the term of five years from the Meeting of the Company will be held at "The Narada Gana conclusion of the fifteenth Annual General Meeting Sabha" (Sathguru Gnananandha Hall), No. 314, T.T.K. until the conclusion of the twentieth Annual General Road, Alwarpet, Chennai 600018 on Wednesday, the 14th Meeting, in the place of M/s. S R Batliboi & Associates day of August 2019 at 09.30 A.M to transact the following LLP, Chartered Accountants, the present Auditors who business: hold such office upto the conclusion of the fifteenth annual general meeting. 1. To consider and to give your assent or dissent to the following ordinary resolution: RESOLVED FURTHER THAT the board of directors of the Company be and is hereby authorised to fix RESOLVED THAT the audited financial statement of their remuneration and reimburse their travelling and st the company for the financial year ended 31 March out of pocket expenses. 2019 consisting of the balance sheet as at 31st March, 2019, the statement of profit and loss, the cash flow 5. To consider and, if thought fit, to pass with or statement and statement of changes in equity for the without modification, the following resolution as year ended on that date and the explanatory notes a special resolution: annexed to or forming part thereof together with the RESOLVED THAT the re-appointment of reports of the Board of Directors and Auditors' thereon, Mr M Lakshminarayan (DIN 00064750), as a Non- be and are hereby adopted. Executive and Independent Director for another term 2.