annual report 2012/13 Registerd Offce Address 2nd Floor, F-7, Block B-1, Mohan Cooperative Induatrial Estate, Mathura Road, New Delhi 110 044, India Press Thomson at Printed PDF processed with CutePDF evaluation edition www.CutePDF.com Cover_010813-FINAL.indd 1 8/5/2013 22:54:25 Annual Report 2012-13 Years of Rela onship Years of Lis ng A Rela onship Built on Trust Cover_010813-FINAL.indd 2 8/5/2013 22:54:38 The year 2012-13 is a special year in the history of Motherson Sumi Systems Limited. MSSL achieves two landmarks on completion of this year. Years of Listing (1993-2013) MSSL was listed on stock exchange in 1993. During this journey of 20 years MSSL has consistently 20 performed well to create more value for its investors. Investment of `2,500 (100 shares in the IPO) is worth `1,466,732 on Mar 31, 2013 Thank you all stakeholders for your continued support throughout this transformational journey 2 TogetherTogether wewe makemake itit happenhaapppen 2-48-MSSL_Insides pages-FINAL.indd 1 8/5/2013 21:42:48 Years of Relationship Motherson completes 30 years of relationship with Sumitomo Wiring Systems Ltd., Japan A journey studded with milestones that saw this relationship grow from strength to strength, growing, expanding and reaching new 30 heights. In this journey MSSL has grown its relationship with its partners by establishing new JVs, adding new products and building bonds with customers globally. 1st 11 Joint Collaboration Ventures 9 JV in 1983 Partners Global Tier 9 1 supplier Acquisitions Supplying to top global Car Makers 126 Manufacturing Facilities A Relationship Built on Trust Motherson Sumi Systems Limited 3 2-48-MSSL_Insides pages-FINAL.indd 2 8/3/2013 19:49:35 Contents Corporate Information 5 20 Years of Listing 31 Vision Mission & Values 6 • 20 years performance at a glance 32 • Creating value for investors 34 Market Position 7 • Increasing Content per Car 36 Motherson Sumi Systems Limited 8 • Continuous Growth 37 Samvardhana Motherson Group 10 • Creating a Global Organization 38 Samvardhana Motherson International Limited 11 From the Desk of the Chairman 40 Samvardhana Motherson Re$ ectec 14 Financial Highlights 44 Samvardhana Motherson Peguform 19 Awards & Recognitions 46 30 Years of Relationship 24 Management Discussion and Analysis 49 • Sumitomo Wiring Systems, Ltd. 25 Directors’ Report 67 • Building Bonds with Collaborators 26 Report on Corporate Governance 72 • A Trusted Partner to Customers 27 • Creating a Global Family 28 Auditor’s Report 79 • Contributing to the Society 29 Balance Sheet 82 • Relationship with Investors 30 Pro; t and Loss Account 83 Cash Flow Statement 84 Notes 86 Consolidated Financial Statements 138 Disclaimer In this Annual Report, we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. This report and other statements – written and oral – that we periodically make contain forward-looking statements that set out anticipated results based on the management’s plans and assumptions. We have tried, wherever possible, to identify such statements by using words such as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realized, although we believe we have been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. 4 Together we make it happen 2-48-MSSL_Insides pages-FINAL.indd 3 8/5/2013 21:43:37 Corporate Information Founder Chairperson Registered O ce (Late) Smt. S.L. Sehgal 2nd Floor, F-7, Block B-1, Mohan Cooperative Industrial Estate, Chairman Emeritus Mathura Road, New Delhi 110 044, India (Late) Sh. K.L. Sehgal Investor Cell Board of Directors Mr. G.N. Gauba Mr. Vivek Chaand Sehgal (Company Secretary & Chief Financial O2 cer) Chairman E-mail: [email protected] Maj. Gen. Amarjit Singh (Retd.) Registrar Director Karvy Computershare Pvt. Ltd. Mr. Sushil Chandra Tripathi, IAS (Retd.) 17-24, Vittal Rao Nagar, Madhapur, Director Hyderabad - 500 081, Andhra Pradesh, India. Mr. Arjun Puri Auditors Director Price Waterhouse Chartered Accountants Mr. Gautam Mukherjee Building 8, 7th & 8th Floor, DLF Cyber City Director Gurgaon 122 002, Haryana, India Mr. Toshimi Shirakawa Bankers Director State Bank of India ICICI Bank Ltd. Mr. Hideaki Ueshima Citibank N.A. Director HDFC Bank Ltd. Mr. Laksh Vaaman Sehgal Bank of Tokyo Mitsubishi UFJ Ltd. Director Axis Bank Ltd. The Hongkong and Shanghai Banking Corporation Ltd. Mr. Pankaj Mital DBS Bank Ltd. Whole-time Director Japan Bank for International Cooperation Motherson Sumi Systems Limited 5 2-48-MSSL_Insides pages-FINAL.indd 4 8/3/2013 19:49:46 Vision, Mission & Values VISION To be a Globally Preferred Solutions Provider MISSION Ensure Customer Delight Involve Employees as “Partners” in Progress Enhance Shareholder Value Set New Standards in Good Corporate Citizenship VALUES Be a lean, responsive and learning organisation Continuously improve to achieve world-class standards and total customer satisfaction Proactively manage change Maintain high standards of integrity and safety Ensure a common culture and a common set of values throughout the organisation Recognize individuals’ contributions Develop stronger leadership skills, greater teamwork and a global perspective Constantly upgrade skill levels across the organization through knowledge sharing programmes 6 Together we make it happen 2-48-MSSL_Insides pages-FINAL.indd 5 8/3/2013 19:49:50 Market Position MSSL’s growing network of relationships across a wide customer base in diverse geographies has enabled it to build a leadership position across the entire range of products. MSSL is considered among the largest auto ancillaries in India, as part of one of the most diversi& ed groups in the Indian automotive industry with an ever growing global presence. Global One of the largest manufacturers of automotive rear view mirrors for passenger cars in the world One of the largest manufacturers of IP modules, door trims and bumpers in Europe India Largest manufacturer of automotive wiring harnesses in India, with more than 65%* market share in passenger car segment, serving the entire automotive industry Largest manufacturer of rear view mirrors for passenger cars and MUVs in India, with nearly 48%* share in the segment One of the largest manufacturers and suppliers of plastic components to automotive industry One of the most diversi& ed groups in the Indian automotive industry * as assessed by the Company Motherson Sumi Systems Limited 7 2-48-MSSL_Insides pages-FINAL.indd 6 8/3/2013 19:49:56 Motherson Sumi Systems Limited (MSSL), the agship company its customers comes essentially from a broad spectrum of of the Samvardhana Motherson Group is a joint venture products which include rearview mirrors, wiring harnesses, between Samvardhana Motherson International Limited (SMIL) moulded plastic parts, complete modules including and Sumitomo Wiring Systems, Ltd., Japan (SWS). bumpers, dashboards, door trims, air - lter systems, HVAC systems, rubber components for automotive and industrial A collaboration with Tokai Electric Co. (now SWS) led to the applications, high-precision machined metal parts and incorporation of MSSL in 1986 primarily as a wiring harness injection moulding tools. manufacturer in India. MSSL has grown into a diversi- ed manufacturer of automotive components with market The company’s ability to be a one-stop solution for its leading position in its major product verticals. Today, MSSL customers is further strengthened by its manufacturing is one of the largest manufacturers of rearview mirrors presence across Asia, Europe, North America, South for passenger cars in the world as well as India’s largest America, Australia and Africa. The geographic spread of manufacturer of automotive wiring harnesses and mirrors its manufacturing bases, design centres, logistics centers, for passenger cars. It is also one of the largest manufacturers marketing support and sourcing hubs allows MSSL of IP modules, door trims and bumpers for mainly European the exibility to supply to its customers from various OEMs and a leading supplier of plastic components and manufacturing locations using the best suited logistics modules to the global automotive industry. model. The company has evolved to its present stature on the MSSL’s relationship with all its joint venture partners has strength of the relationships it has with all its stakeholders strengthened over the years and today the company has since inception. The relationship of mutual trust, respect evolved into a joint venture specialist. MSSL’s strength in and the ability to cater to emerging needs of its customers partnering growth, which began with its SWS alliance, has have been the core strengths of MSSL and have supported evolved with a number of joint ventures for a varied product its growth year after year. MSSL’s pro- ciency in delighting range. Shareholding in MSSL* Sehgal Family Samvardhana Motherson 3.80% International Limited