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4427.45 +0.40(0.01%)
Last Updated on: 04 Aug 2015 10:35 Hrs
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Last Updated on: 04 Aug 2015 10:48 Hrs
Maruti Suzuki India Director's Speech March 2014 
Dear Members,

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)

2013-14 2012-13

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. 3,624,960,720.


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 financial obligations.


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 ten years.

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 Dzire

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 HR strategy.


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 dealers' Profitability.

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.


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 meetings.

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


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 Independent Director


During the period under review, no complaints were received by the Internal Complaints Committee established under the Anti-Sexual Harassment Policy of the Company.


As required under section 217(2AA) of the Companies Act, 1956, your Directors confirm

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 period;

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.


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.


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 September 2013.


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

New Delhi 21st May 2014

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