The Directors have pleasure in presenting the 33rd annual report
together with the audited accounts for the year ended 31st March 2014.
The Company's financial performance during the year 2013-14 as compared
to the previous year 2012-13 is summarised below:
(Rs. in million)
Total revenue 445,235 444,003
Profit before tax 36,585 29,910
Tax expense 8,755 5,989
Profit after tax 27,830 23,921
Balance brought forward 153,043 130,777
Addition on amalgamation - 3,565
Profit available for appropriation 180,873 158,263
General reserve 2,783 2,392
Proposed dividend 3,625 2,417
Corporate dividend tax 616 411
Balance carried forward to balance sheet 173,849 153,043
The total revenue (net of excise) was Rs. 445,235 million as against Rs.
444,003 million in the previous year showing an increase of 0.28 per
cent. Sale of vehicles in the domestic market was 1,053,689 units as
compared to 1,051,046 units in the previous year showing an increase of
0.25 per cent. Total number of vehicles exported was 101,352 units as
compared to 120,388 units in the previous year.
Profit before tax (PBT) was Rs. 36,585 million against Rs. 29,910 million
showing an increase of 22 per cent and Profit after tax (PAT) stood at Rs.
27,830 million against Rs. 23,921 million in the previous year showing an
increase of 16 per cent.
The Board recommends a dividend of Rs. 12 (twelve) per equity share of Rs.
5 (five) each for the year ended 31st March 2014 amounting to Rs.
The operations are exhaustively discussed in the report on 'Management
Discussion and Analysis' which forms part of this annual report.
The Company was awarded the highest financial credit rating of
AAA/stable (long term) and A1 (short term) on its bank facilities by
CRISIL. The rating underscores the financial strength of the Company in
terms of the highest safety with regard to timely fulfllment of its
The Company was again awarded ISO:27001 certification by STQC
Directorate (Standardisation, Testing and Quality Certifcate), Ministry
of Communications and Information Technology, Government of India after
re- assessment. The Company has established and is maintaining an
Information Security Management System.
During the year, ISO 14001 Surveillance audit was carried out by M/s
AVI Belgium and the Auditors recommended continuation of the ISO 14001
The quality management system of the Company is certified against ISO
9001:2008 Standard. Re-assessment of the quality systems is done at
regular intervals and re-certification assessments are done at every 3
years by an accredited third party agency. Also, the Company has an
internal assessment mechanism to verify and ensure adherence of Defined
quality systems across the Company.
J.D. Power 2013 Customer Satisfaction Index (CSI) Study ranked the
Company highest for the 14th time in a row. J.D. Power Special
Recognition Excellence Award also honoured to the Company for
continuously being number one in customer satisfaction for more than
J.D. Power SSI Study ranked the Company highest.
Entry Compact Car of the year by J.D. Power IQS - 2013 awarded to Alto
800 and Premium Compact Car of the year by J.D. Power IQS - 2013
awarded to Swift.
Best launch car awarded to Celerio by CNB awards at auto expo 2014.
India Design Mark - Good Design Award 2013 given to Ertiga and Swift
Best Entry-Level Midsize Car by the India Vehicle Dependability Study
for the 3rd time in a row given to Swift Dzire.
Maruti 800 bagged "Hall of Fame" award
Limca Book of World Records - 2014 for highest genuine spare part
outlet at Leh
INSSAN honoured the Company with frst position in excellence in
suggestion scheme 2013
12th Annual Greentech Safety Award - 2013 for best safety practices and
Prsashnsa Patras Award 2013 honoured to the Company.
Platinum Award by Greentech Foundation honoured to the Company for best
SUBSIDIARY COMPANIES AND THEIR ACCOUNTS
The Company's subsidiaries which were engaged in the business of
insurance distribution in the past generated an investment income of Rs.
53.01 million including a dividend income of Rs. 0.32 million and long
term capital gain of Rs. 52.69 million through mutual funds
The Company's subsidiary True Value Solutions Limited has contributed
towards smooth operations of business processes and supported the
dealerships in enhancing the sale of pre-owned cars under the brand
Maruti True Value. It has contributed significantly to the efforts of
customer retention by facilitating sale and re-purchase of new cars
through exchange and has made significant contribution towards enhancing
In terms of the general circular dated 8th February 2011 issued by the
Government of India, Ministry of Corporate Affairs, the balance sheets,
Profit & loss accounts, reports of the Board of Directors and Auditors
of the subsidiary companies have not been attached with the balance
sheet of the Company. Annual accounts of the subsidiary companies and
the related detailed information shall be made available to
shareholders of the Company and subsidiary companies seeking such
information at any point of time. The annual accounts of the
subsidiary companies shall also be available for inspection by any
shareholder at the head office of the Company and of the subsidiary
companies. Hard copy of details of accounts of subsidiaries shall be
furnished to any shareholder on demand. Further, pursuant to Accounting
Standard - 21 issued by the Institute of Chartered Accountants of
India, consolidated financial statements presented by the Company
include the financial information of its subsidiaries.
HUMAN RESOURCES DEVELOPMENT
People are the assets and have been instrumental in driving the
Company's performance year on year. Their passion, commitment, sense of
ownership and team work has enabled the Company to sustain its
leadership position in the challenging market scenario of 2013-14. The
Company has always striven to offer a positive, supportive, open and
high performance work culture where innovation and risk taking is
encouraged, performance is recognised and employees are motivated to
realise their true potential.
The Company hired and integrated 904 people into its workforce in the
2013- 14. The Company has 12,547 regular employees out of which 366 are
women. The Company is an equal opportunity employer and believes in
recognising merit and potential in the selection process. There has
been a continuous effort to increase the number of women employees in
the organisation to bring diversity in terms of population mix,
versatility and value addition.
As in the past, the Company has been investing to strengthen positive
employee relations through continuous communication, education,
engagement and welfare initiatives. Several new initiatives have been
introduced to reinforce people connect and engagement. Focus has also
been to provide opportunities to employees to learn and grow within the
organisation. These initiatives over the last one and a half year have
given very encouraging results. One of the key initiatives in this
direction has been umbrella mentoring to hand hold, guide and develop
the young workforce. Associates are mentored and guided by supervisors
who are trained on coaching, mentoring, relationship building and
listening skills. With this initiative a total of 2906 associates have
been covered so far by 823 trained mentors across all three plants.
Another initiative is the Inbound Training called Nayi Kiran of mixed
group of employees (associates, supervisors and managers) is done in
series of group activities to build trust and confdence across levels
and work together to solve problems creatively. A total of 1628
employees across levels have been covered till date. Also people
connect and engagement initiatives like Parivar Milan (family visits to
factory), community development initiatives and sports and games have
helped in strengthening good relationship and positive team
environment. Continuous internal communication, policy sessions,
helpdesk and grievance handling forums helped us to strengthen connect
with the employees and reach out to the young team members at the shop
foor. Employees are also given the latest business and performance
information on a regular basis through structured communication
People development and capability building across functions and levels
remained a key focus area to build a strong talent pipeline. The
Company continued to invest in enhancing its human capital through
building skills and competencies for its employees. The learning
eco-system is being transformed by endowing e-learning modules and web
based trainings to employees across location through the interactive
web studio in the MSIL Training Academy. Special development
interventions have been taken to develop women employees in the
organisation through leadership workshops and training programs on
multitasking and women empowerment.
Apart from capability building interventions employees were educated on
health consciousness by organising various health awareness sessions,
health talks by senior doctors, periodic medical check-ups. A number of
events were organised throughout the year to enhance the awareness
level of our employees towards road safety.
With the commencement of the frst phase of Rohtak R & D Centre, the
Company posted its frst set of employees at the new, state of the art R
& D centre in November 2013. The Company took the necessary measures to
ensure a smooth transition of employees to the new location with the
right policy enablers in place.
The Company conducted an annual employee engagement / dipstick survey
which provides meaningful and actionable feedback to the leaders in the
organisation. The feedback of employees is read across several
dimensions in the areas such as job satisfaction, leadership, immediate
manager effectiveness, work culture and engagement. Feedback from this
survey forms the basis of holistic engagement plans, which are reviewed
regularly. The engagement scores saw an increase over last year which
has been possible due to various engagement initiatives and HR
interventions across the organisation. These initiatives helped us
control attrition. MSIL maintained an attrition loss of only 2.7 per
cent in the year 2013-14 which is much below the industry trends. This
has been possible due to a holistic focus on employees in terms of a
robust online performance management system, 360 degree feedback
process, feedback through assessment and development centres, job
rotation policy, training and development opportunities, higher
education, multiple career growth tracks offering right impetus for
greater motivation and retention.
As part of Corporate Social Responsibility, the Company adopts ITIs
(Industrial Training Institute) in order to improve quality of
trainings and upgrade the graduates' skills therein to meet industry
requirement and thus contribute to the society with increased
employability. 29 ITIs have so far been adopted across 9 states of
India. Several aspects of development viz. faculty development,
student development as well as industry connect and infrastructural
developmental activities are undertaken in these adopted
ITIs. Out of the 29 ITIs adopted, the Company has adopted two women
ITIs in Haryana state namely ITI (W) Gurgaon and ITI (W) Jhajjar under
its skill development initiative
Mr. Toshiaki Hasuike was appointed as Whole time Director designated as
Joint Managing Director with effect from 27th April 2013 to fll the
casual vacancy caused by resignation of Mr. Tsuneo Ohashi who resigned
from the post of Director & Managing Executive officer (Production) from
the close of the business hours of 26th April 2013. Mr. Toshihiro
Suzuki was appointed as Director with effect from 28th October 2013 to
fll the casual vacancy caused by resignation of Mr. Shinzo Nakanishi
who resigned from the post of Director from the close of business hours
of 27th October 2013. Mr. Masayuki Kamiya was appointed as Director
(Production) to fll the casual vacancy caused by resignation of Mr.
Keiichi Asai with effect from 28th October 2013 who resigned from the
post of Director & Managing Executive officer (Engineering) from the
close of business hours of 27th October 2013
CORPORATE SOCIAL RESPONSIBILITY (CSR) COMMITTEE
The Company constituted a CSR committee with Mr. R.C. Bhargava as its
Chairman and Mr. Kenichi Ayukawa and Mr. R.P Singh as its members Mr.
R.C. Bhargava is Non-Executive Chairman and Mr. R.P. Singh is an
INTERNAL COMPLAINTS COMMITTEE (ANTI-SEXUAL HARASSMENT POLICY)
During the period under review, no complaints were received by the
Internal Complaints Committee established under the Anti-Sexual
Harassment Policy of the Company.
DIRECTORS' RESPONSIBILITY STATEMENT
As required under section 217(2AA) of the Companies Act, 1956, your
That there were no material departures in the applicable accounting
standards followed while preparing the annual accounts
Having selected such accounting policies and applied them consistently
and made judgments and estimates that are reasonable and prudent so as
to give a true and fair view of the state of affairs of the Company at
the end of the financial year and of the Profit of the Company for that
Having taken proper and suffcient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies
Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
Having prepared the annual accounts on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
A statement giving details of conservation of energy, technology
absorption foreign exchange earnings and outgo in accordance with the
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 is annexed as Annexure A.
As required by the provisions of section 217(2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975,
as amended, the names and other particulars of the employees are set
out in Annexure B to the Directors' Report. However, as per the
provisions of section 219(1)(b)(iv) of the Companies Act, 1956, the
annual report is being sent to all the shareholders of the Company
excluding the aforesaid information. Any shareholder interested in
obtaining such particulars may write to the Company Secretary at the
registered office of the Company.
CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the Accounting Standard - 21 on Consolidated
Financial Statements read with Accounting Standard - 23 on Accounting
for Investments in Associates in and Accounting Standard - 27 on
Financial Reporting of Interest in Joint Ventures, the audited
consolidated financial statements are provided in the annual report.
The Company has complied with the corporate governance requirements, as
stipulated under clause 49 of the listing agreement and the stipulated
certifcate of compliance is contained in this annual report.
The Auditors, M/s Price Waterhouse, Firm Registration Number
FRN301112E, Chartered Accountants, hold office until the conclusion of
the ensuing annual general meeting and are recommended for
re-appointment. A certifcate from the Auditors has been received to the
effect that their re-appointment, if made, would be in accordance with
section 139(1) of the Companies Act, 2013. A certifcate has also been
obtained from the Auditors to the effect that the Company is in
compliance with the conditions of Foreign Direct Investment for the
downstream investment made by the Company in subsidiary companies.
In conformity with the directives of the Central Government, the
Company has appointed M/s R. J. Goel & Co., Cost Accountants, as the
Cost Auditors under Section 148 of the Companies Act, 2013 read with
the rule 14 of the Companies (Audit and Auditors) Rules, 2014 for the
audit of the cost accounts for the motor vehicles business for the year
ending on 31st March 2015. The cost audit report for the financial year
2012-13 was fled with the Ministry of Corporate Affairs on 30th
The Board of Directors would like to express its sincere thanks for the
co- operation and advice received from the Government of India and the
Haryana Government. Your Directors also take this opportunity to place
on record their gratitude for timely and valuable assistance and
support received from Suzuki Motor Corporation, Japan. The Board also
places on record its appreciation for the enthusiastic co-operation,
hard work and dedication of all the employees of the Company including
the Japanese staff, dealers, vendors, customers, business associates,
auto finance companies, state government authorities and all concerned
without which it would not have been possible to achieve all round
progress and growth of the Company. The Directors are thankful to the
shareholders for their continued patronage.
For and on behalf of the Board of Directors
Kenichi Ayukawa R.C. Bhargava
Managing Director & CEO Chairman
21st May 2014