Page 1

Resurgence

Resolve

Resilience

Maruti Suzuki India Limited Annual Report 2012-13


what’s inside

Corporate Overview

Financial Statements

Maruti Suzuki at a Glance

2

Standalone

Corporate Highlights

4

Independent Auditors’ Report

74

Business Highlights

6

Balance Sheet

78

6WDWHPHQWRI3URˉWDQG/RVV

79

Cash Flow Statement

80

Notes

82

Resilience Resurgence

Resolve

Resilience against headwinds

10

Resolve to hold our ground and push forward

12

Resurgence and a new era of sustainable growth

14

Management Review

Statement Pursuant to Section 212

134

Financial Statement of Subsidiary Companies

135

Consolidated

Chairman’s Message

16

From the MD’s Desk

18

Board of Directors

20

Executive Management Team

22

Statutory Reports Directors’ Report

24

Corporate Governance Report

32

Management Discussion & Analysis

48

Business Responsibility Report

58

Auditors’ Report

136

Balance Sheet

138

6WDWHPHQWRI3URˉWDQG/RVV

139

Cash Flow Statement

140

Notes

142


,QOLIHDVLQEXVLQHVVLWLVRIWHQGLIˉFXOWWR SUHGLFWURDGEORFNV %XWWKH\UHJXODUO\LPSHGHRXUSDWKDQGˉOOWKHMRXUQH\ZLWKFKDOOHQJHVDQGJURZWK At Maruti Suzuki, 2012-13 tested our ability to withstand challenges and bounce back. We saw one of the worst car demand slowdowns in a decade, market distortion between petrol and diesel cars, and continued adverse impact of foreign currency movement. The violence at our Manesar plant, and the tragic death of a General Manager, cast a shadow.

+RZGRZHUHVSRQGWRVXFKD situation? The most obvious response would be: shock, disbelief, denial, blame, withdrawal or even rationalisation. At Maruti Suzuki, however, we didn’t do the obvious thing.

Rather than being overwhelmed by the external adversity, we looked inwards for LQWHUQDOVWUHQJWKVWRˉJKWEDFN Our collective resolve helped us stay together, think positive, display composure and focus on the future rather than just the present. We operated with agility and consistent focus and pulled off the not-so-obvious: we stayed close to our people and their families, made the Manesar plant operational within a month after disruption, launched an exciting new model, increased our market VKDUHDQGSURˉWVDQGDOVRNHSWRXUIXWXUHLQYHVWPHQWSODQVRQVFKHGXOH Most importantly, we continued our transparent communication with investors, media and all other stakeholders. Leadership is not just about highest market share for decades; it is also about

Resilience

Resolve

Resurgence


Fighting Fit for Decades For more than n th hree de ecaade es, Maaruti Suzu uki hass be een n a ho oussehold d nam me acrosss urban and rurral India, through h multtiplle bu usine ess challe enges. We comm menced d our journe ey in n 19 982.. Siince e the en the sto ory ro ollss on. The e storry of an auto omobile e revolution‌ ‌

2-3

Overr the ye earss, th he prride e of ownin ng a Maru uti Suzu uki veh hiccle hass grow wn desspite bilitty of mu ultiiple e braandss. Todaay, we pro oducce more e thaan 1 milliion unitts the availab ually, with 15 annu 5 difffe eren nt mod dels and over  YYDULDDQWWV

3DVVHQJHUFDUV

Maruti 800

Alto 800 (also available Alto K 10)

Wagon R

Estilo

A-star

Ritz


58 - 59

Business Responsibility Report (As per Clause 55 of the Listing Agreement)

The Company gives focused attention to all aspects of sustainability – economic, environmental and social. As a responsible corporate, it is concerned about the holistic growth and development of its operations and the welfare, prosperity and growth of its stakeholders.

As a responsible corporate, Maruti Suzuki India Limited (Company) is concerned about the holistic growth of its operations and the welfare, prosperity and development of its stakeholders. The Company gives focused attention to all aspects of sustainability – HFRQRPLFHQYLURQPHQWDODQGVRFLDO,WVˉUVW%XVLQHVV5HVSRQVLELOLW\5HSRUWFDSWXUHVNH\ highlights of its sustainability performance in 2012-13. In 2012-13, Suzuki Powertrain India Limited was amalgamated with the Company. The Company accounted for the amalgamation in its books of account in accordance with the method of accounting prescribed by the Central Government. However, other processes and UHSRUWLQJ VWUXFWXUHV DUH EHLQJ LQWHJUDWHG 7KLV %XVLQHVV 5HVSRQVLELOLW\ 5HSRUW FRQWDLQV combined information on Maruti Suzuki India Limited and Suzuki Powertrain India Limited on economic indicators only.


SECTION A Corporate Identity Number (CIN) of the Company

L34103DL1981PLC011375

2

Name of the Company

Maruti Suzuki India Limited

3

5HJLVWHUHGDGGUHVV

1, Nelson Mandela Marg, Vasant Kunj, New Delhi-110070

4

Website

www.marutisuzuki.com

5

E-mail id

msilinvestorrelations@maruti.co.in

6

Financial year reported

2012-13

7

Sector(s) that the Company is engaged in (industrial activity code-wise)

Automobile

8

List three key products/services that the Company manufactures/provides (as in Passenger Cars, Multi Utility Vehicles (MUV), balance sheet) Multi Purpose Vehicles (MPV)

9

Total number of locations where business activity is undertaken by the Company

10

i. Number of international locations

Company manufactures cars only in India

ii. Number of national locations

Company manufactures cars at its Gurgaon and Manesar plants located in Haryana

Markets served by the Company – Local/State/National/International

Domestic: across India. International: Europe, Africa, Asia, Oceania, Latin America

Details

1

Paid up Capital (`)

1,510,400,300

2

Total Turnover (` million)

499024

3

7RWDOSURˉWDIWHUWD[HV ` million)

23921

4

7RWDO6SHQGLQJRQ&RUSRUDWH6RFLDO5HVSRQVLELOLW\ ` million)

189.4

E$VSHUFHQWDJHRISURˉWDIWHUWD[RI

0.79 %

/LVWWKHDFWLYLWLHVDVSHU6FKHGXOH9,,RI&RPSDQ\Č V%LOOLQZKLFKH[SHQGLWXUH in 4. above has been incurred

FINANCIAL STATEMENTS

5

STATUTORY REPORTS

SECTION B Financial Details of the Company

D5RDG6DIHW\ b. Skill Development c. Community development (Key focus on education and health)

SECTION C Other Details

Details

1

Does the Company have any Subsidiary Company / Companies?

Yes

2

'R WKH 6XEVLGLDU\ &RPSDQ\&RPSDQLHV SDUWLFLSDWH LQ WKH %5 ,QLWLDWLYHV RI WKH No parent company? If yes, then indicate the number of such subsidiary company(s)

3

Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company No GRHV EXVLQHVV ZLWK SDUWLFLSDWH LQ WKH %5 LQLWLDWLYHV RI WKH &RPSDQ\" ,I \HV then indicate the per cent of such entity/entities? [Less than 30 per cent, 30-60 per cent, More than 60 per cent]

MANAGEMENT REVIEW

Details

1

CORPORATE OVERVIEW

General Information about the Company

ANNUAL REPORT 2012-13


Business Responsibility Report

SECTION D: BR INFORMATION 1. Details of Director/Directors responsible for BR D  'HWDLOVRIWKH'LUHFWRU'LUHFWRUVUHVSRQVLEOHIRULPSOHPHQWDWLRQRIWKH%5SROLF\SROLFLHV DIN Number Name Designation

00108491 Mr. Shinzo Nakanishi* Managing Director & CEO

0U6KLQ]R1DNDQLVKLZDVUHVSRQVLEOHIRU%XVLQHVV5HVSRQVLELOLW\IRU+HUHWLUHGIURPWKHSRVWRI0' &(2ZLWKHIIHFWIURP close of business hours on 31st March 2013. Mr. Kenichi Ayukawa was appointed as MD&CEO with effect from 1st April 2013 and shall be UHVSRQVLEOHIRU%XVLQHVV5HVSRQVLELOLW\IRU E  'HWDLOVRIWKH%5KHDG

60 - 61

DIN Number Name Designation Telephone number e-mail id

N.A. Mr. Kanwaldeep Singh Vice President, Corporate Services 011-46781123 Kanwaldeep.singh@maruti.co.in

2. Principle-wise (as per National Voluntary Guidelines) Business Responsibility Policy/policies (Reply in Y/N) Principle (Yes/No)

Sr. No. Questions

1

2

1

Do you have a policy for?

Y

Y

Y

Y

N

Y

N

Y

Y

2

Has the policy being formulated in consultation with the relevant stakeholders?

Y

Y

Y

Y

N

Y

N

Y

Y

3

Does the policy conform to any national /international standards? If yes, specify?

N

N

Y

Y

N

Y

N

Y

Y

4

+DV WKH SROLF\ EHLQJ DSSURYHG E\ WKH %RDUG" ,I \HV KDV LW EHHQ VLJQHG E\ 0'RZQHU&(2DSSURSULDWH %RDUG Director?

Y

Y

Y

Y

N

Y

N

Y

Y

5

'RHV WKH &RPSDQ\ KDYH D VSHFLˉHG FRPPLWWHH RI WKH %RDUG'LUHFWRU2IˉFLDOWRRYHUVHHWKHLPSOHPHQWDWLRQRI the policy?

Y

N

Y

Y

N

Y

N

Y

Y

6

Indicate the link for the policy to be viewed online?

Y

Y

Y

Y

N

Y

N

Y

Y

7

Has the policy been formally communicated to all relevant LQWHUQDODQGH[WHUQDOVWDNHKROGHUV"

Y

Y

Y

Y

N

Y

N

Y

Y

8

Does the Company have in-house structure to implement the policy/policies.

Y

Y

Y

Y

N

Y

N

Y

Y

9

Does the Company have a grievance redressal mechanism related to the policy/policies to address stakeholders’ grievances related to the policy/policies?

Y

Y

Y

Y

Y

Y

Y

Y

Y

10

Has the Company carried out independent audit/evaluation RI WKH ZRUNLQJ RI WKLV SROLF\ E\ DQ LQWHUQDO RU H[WHUQDO agency?

N

N

N

N

N

Y

N

N

Y

3

4

5

6

7

8

9


List of Principles PRINCIPLE 1: %XVLQHVVHVVKRXOGFRQGXFWDQGJRYHUQWKHPVHOYHVZLWK(WKLFV7UDQVSDUHQF\DQG$FFRXQWDELOLW\ PRINCIPLE 3: %XVLQHVVHVVKRXOGSURPRWHWKHZHOOEHLQJRIDOOHPSOR\HHV PRINCIPLE 4: %XVLQHVVHV VKRXOG UHVSHFW WKH LQWHUHVWV RI DQG EH UHVSRQVLYH WRZDUGV DOO VWDNHKROGHUV HVSHFLDOO\ WKRVH ZKR DUH disadvantaged, vulnerable and marginalised PRINCIPLE 5: %XVLQHVVHVVKRXOGUHVSHFWDQGSURPRWHKXPDQULJKWV PRINCIPLE 6: %XVLQHVVVKRXOGUHVSHFWSURWHFWDQGPDNHHIIRUWVWRUHVWRUHWKHHQYLURQPHQW

CORPORATE OVERVIEW

PRINCIPLE 2: %XVLQHVVHVVKRXOGSURYLGHJRRGVDQGVHUYLFHVWKDWDUHVDIHDQGFRQWULEXWHWRVXVWDLQDELOLW\WKURXJKRXWWKHLUOLIHF\FOH

PRINCIPLE 7: %XVLQHVVHVZKHQHQJDJHGLQLQËŠXHQFLQJSXEOLFDQGUHJXODWRU\SROLF\VKRXOGGRVRLQDUHVSRQVLEOHPDQQHU PRINCIPLE 8: %XVLQHVVHVVKRXOGVXSSRUWLQFOXVLYHJURZWKDQGHTXLWDEOHGHYHORSPHQW

2a. If answer to S.No. 1 against any principle is ‘No’, please explain why: (Tick up to 2 options) Principle (Yes/No) 1

2

3

4

5

6

7

1.

The Company has not understood the Principles

-

-

-

-

-

-

-

2.

7KH &RPSDQ\ LV QRW DW D VWDJH ZKHUH LW ˉQGV LWVHOI LQ D position to formulate and implement the policies on VSHFLˉHGSULQFLSOHV

-

-

-

-

-

-

3.

7KH &RPSDQ\ GRHV QRW KDYH ˉQDQFLDO RU PDQSRZHU resources available for the task

-

-

-

-

-

-

4.

,WLVSODQQHGWREHGRQHZLWKLQQH[WPRQWKV

-

-

-

-

-

-

-

-

-

5.

,WLVSODQQHGWREHGRQHZLWKLQWKHQH[W\HDU

-

-

-

-

Y

-

-

-

-

6.

Any other reason (please specify)

-

-

-

*

-

-

**

-

-

8

9

-

-

-

-

-

-

**Policy Advocacy: The Company doesn’t have a policy on policy advocacy. However, advocacy on policies related to the automobile industry are done through Society of Indian Automobile Manufactures (SIAM). The Company has an independent department responsible for interaction with SIAM and for government affairs. 3. Governance related to BR  ,QGLFDWH WKH IUHTXHQF\ ZLWK ZKLFK WKH %RDUG RI 'LUHFWRUV &RPPLWWHH RI WKH %RDUG RU &(2 WR DVVHVV WKH %5 SHUIRUPDQFH RI WKH Company. Within 3 months, 3-6 months, Annually, More than 1 year. 

7KH 0DQDJLQJ 'LUHFWRU DQG WRS PDQDJHPHQW SHULRGLFDOO\ UHYLHZ WKH %5 SHUIRUPDQFH RI WKH &RPSDQ\ WKURXJK %XVLQHVV 5HYLHZ 0HHWLQJVDQG6WUDWHJ\0HHWLQJV%XVLQHVV5HYLHZ0HHWLQJVDUHKHOGRQDZHHNO\EDVLVDQG6WUDWHJ\0HHWLQJVDUHKHOGRQFHLQDPRQWK

ANNUAL REPORT 2012-13

FINANCIAL STATEMENTS

*Human Rights:  7KH &RPSDQ\ FXUUHQWO\ GRHVQČ W KDYH D VWDQGDORQH +XPDQ 5LJKWV SROLF\ +RZHYHU DVSHFWV RI KXPDQ ULJKWV VXFK DV FKLOGODERXUIRUFHGODERXURFFXSDWLRQDOVDIHW\GLVFULPLQDWLRQDUHFRYHUHGE\LWVYDULRXV+XPDQ5HVRXUFHSROLFLHV7KH&RPSDQ\PDNHV concerted efforts to strengthen mechanisms to ensure implementation of such policies. The Company will also be developing a Human 5LJKWV3ROLF\LQWKHQHDUIXWXUH

STATUTORY REPORTS

Sr. No. Questions

MANAGEMENT REVIEW

PRINCIPLE 9: %XVLQHVVHVVKRXOGHQJDJHZLWKDQGSURYLGHYDOXHWRWKHLUFXVWRPHUVDQGFRQVXPHUVLQDUHVSRQVLEOHPDQQHU


Business Responsibility Report

 'RHVWKH&RPSDQ\SXEOLVKD%5RUD6XVWDLQDELOLW\5HSRUW":KDWLVWKHK\SHUOLQNIRUYLHZLQJWKLVUHSRUW"+RZIUHTXHQWO\LWLVSXEOLVKHG" 

7KH&RPSDQ\SXEOLVKHVD6XVWDLQDELOLW\5HSRUWDVSHU*5,*IUDPHZRUNDQQXDOO\7KHUHSRUWLV$OHYHODQGLVH[WHUQDOO\DVVXUHG 7KH&RPSDQ\KDVEHHQSXEOLVKLQJLWV6XVWDLQDELOLW\5HSRUWVLQFH



7KH6XVWDLQDELOLW\5HSRUWVRIWKH&RPSDQ\FDQEHYLHZHGDWWKHFRUSRUDWHZHEVLWHKWWSZZZPDUXWLVX]XNLFRPVXVWDLQDELOLW\UHSRUWVDVS[

SECTION E: PRINCIPLE-WISE PERFORMANCE PRINCIPLE 1 : Businesses should conduct and govern themselves with Ethics, Transparency and Accountability  'RHVWKHSROLF\UHODWLQJWRHWKLFVEULEHU\DQGFRUUXSWLRQFRYHURQO\WKH&RPSDQ\"<HV1R'RHVLWH[WHQGWRWKH*URXS-RLQW9HQWXUHV Suppliers/Contractors/NGOs /Others?

62 - 63

As a responsible corporate citizen, the Company believes in the highest standards of professionalism, ethical behaviors and corporate governance. 

7KH&RPSDQ\Č V&RGHRI%XVLQHVV&RQGXFWDQG(WKLFVHQVXUHVFRPSOLDQFHZLWKWKH&RPSDQ\Č VVWDQGDUGVRIEXVLQHVVFRQGXFWDQGHWKLFV DQGDOVRZLWKUHJXODWRU\UHTXLUHPHQWV$OOHPSOR\HHVVLJQDGHFODUDWLRQRQMRLQLQJWKH&RPSDQ\DQGDUHH[SHFWHGWRFRPSO\ZLWKWKH letter and spirit of this Code.



-RLQWYHQWXUHVVXSSOLHUVDQGFRQWUDFWRUVRIWKH&RPSDQ\DUHLQGHSHQGHQWHQWLWLHV7KH&RPSDQ\Č V&RGHRI&RQGXFWDQG:KLVWOH%ORZHU 3ROLF\GRQČ WH[WHQGWRWKHP

 +RZPDQ\VWDNHKROGHUFRPSODLQWVKDYHEHHQUHFHLYHGLQWKHSDVWË&#x2030;QDQFLDO\HDUDQGZKDWSHUFHQWDJHZDVVDWLVIDFWRULO\UHVROYHGE\ the management? If so, provide details thereof, in about 50 words or so. There were no cases of violation of the Companyâ&#x20AC;&#x2122;s Code of Conduct and there were no cases reported under the Companyâ&#x20AC;&#x2122;s Whistle %ORZHU3ROLF\LQ PRINCIPLE 2 : Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle 1. List up to three of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities. The Company is conscious of the need for developing environmentally and socially responsible products and has incorporated various design innovations in its products to tackle such concerns, risks and opportunities. Alternate Fuel Vehicles

Hybrid and Electric Technology

End-of-Life Vehicles (ELV)

The Company has developed a new Intelligent Gas Port Injection (i-GPI) technology for CNG bi-fuel vehicles. The i-GPI technology promotes uniform and complete combustion in the combustion chamber, resulting in lesser pollutants, without compromising on the vehicleâ&#x20AC;&#x2122;s power and performance.

([SHULPHQWDO SURMHFWV LQ WKH Ë&#x2030;HOG RI K\EULG electric vehicle have been undertaken by the &RPSDQ\6XEVHTXHQWWRWKHGHPRQVWUDWLRQRI SX4 Hybrid and EECO Electric demonstration DWWKH&RPPRQZHDOWK*DPHV5 'FDSDELOLW\ was further enhanced in HEV-EV by taking up study projects, such as further testing/ LPSURYHPHQW RI 6; +(9 IXHO HIË&#x2030;FLHQF\ ,GOH Start Stop system testing & validation, Swift 5DQJH ([WHQGHU (OHFWULF 9HKLFOH RQURDG testing.

The Company has voluntarily taken initiatives to eliminate hazardous substances that have impacts on the environment and human health, VXFK DV 0HUFXU\ &DGPLXP /HDG +H[DYDOHQW Chromium and Asbestos from its vehicles. ELV vehicles are easy to scrap and over 85 per cent of the vehicles parts can be recycled.

Since 2006-07, by selling over 369,928 alternate fuel vehicles, the Company has been able to cumulatively reduce CO2 emissions by 157,232.8 tonnes per year.

,Q DGGLWLRQ QHZ SURFHVVHV  VXFK DV [(9 Hardware-In-Loop/Model-In-Loop based controls GHYHORSPHQWWHVWLQJ [(9 YHKLFOH VLPXODWLRQ for fuel economy evaluation and others were initiated.

Currently in India there is no system of vehicle recycling or scrapping. In order to encourage old vehicle recycling in ,QGLD1$75L3DORQJZLWK02+,KDVHVWDEOLVKHG a dismantling demonstration unit in Chennai. 7KH&RPSDQ\KDVH[WHQGHGVXSSRUWWRWKLVQHZ initiative by providing a few older vehicles and by providing guidance in environment-friendly vehicle dismantling methods.


CORPORATE OVERVIEW

2. For each such product, provide the following details in respect of resource use (energy, water, raw material and so on) per unit of product (optional):



However, for the overall volume of vehicle produced, the reduction in resources is as under: a) Electricity: There has been a reduction in the per unit electricity consumption at both *XUJDRQDQG0DQHVDU,QGH[HG to base year 2000-01, there has been a reduction of nearly 30 per cent in Gurgaon plant since 2000-01. Similarly, in 0DQHVDU LQGH[HG WR EDVH \HDU 2007-08, there has been a reduction of nearly 40 per cent since 2007-08.

100 82

51

FYâ&#x20AC;&#x2122; 01

FYâ&#x20AC;&#x2122; 02

43

FYâ&#x20AC;&#x2122; 03

FYâ&#x20AC;&#x2122; 04

39

38

36

FYâ&#x20AC;&#x2122; 05

FYâ&#x20AC;&#x2122; 06

FYâ&#x20AC;&#x2122; 07

39

FYâ&#x20AC;&#x2122; 08

43

40

38

39

42

FYâ&#x20AC;&#x2122; 09

FYâ&#x20AC;&#x2122; 10

FYâ&#x20AC;&#x2122; 11

FYâ&#x20AC;&#x2122; 12

FYâ&#x20AC;&#x2122;13

58 per cent reduction achieved since 2000-01 Water consumption per car, indexed to base year 2007-08, Manesar

(%)

100

64 46

FYâ&#x20AC;&#x2122; 08

FYâ&#x20AC;&#x2122; 09

FYâ&#x20AC;&#x2122; 10

39

FYâ&#x20AC;&#x2122; 11

44

42

FYâ&#x20AC;&#x2122; 12

FYâ&#x20AC;&#x2122;13

58 per cent reduction achieved since 2007-08 ANNUAL REPORT 2012-13

FINANCIAL STATEMENTS

,W LV GLIË&#x2030;FXOW IRU WKH &RPSDQ\ WR determine the resource utilisation (energy, water, raw material) for its alternate fuel vehicles, End-of-life vehicles or its hybrid and electric vehicles. The Company currently doesnâ&#x20AC;&#x2122;t manufacture hybrid or electric cars on a commercial scale. $V LWV SURGXFWLRQ OLQHV DUH Ë&#x160;H[LEOH and produce multiple models, there LV SUDFWLFDO GLIË&#x2030;FXOW\ LQ LVRODWLQJ model-wise resource utilisation data.

Water consumption per car, indexed to base year 2000-01, Gurgaon (%)

STATUTORY REPORTS

L 5HGXFWLRQ GXULQJ VRXUFLQJ  production / distribution achieved since the previous year throughout the value chain?

b) Water: The Company has been able to reduce the per car water consumption at its Gurgaon and Manesar facilities over the years.

MANAGEMENT REVIEW

Harnessing solar energy

(IË&#x160;XHQWWUHDWPHQWSODQWDW*XUJDRQ


Business Responsibility Report

100 km radius of the Company. The Company constantly encourages suppliers to set-up base near its SODQWV %RWK *XUJDRQ DQG 0DQHVDU plants have Suppliersâ&#x20AC;&#x2122; Parks. The Company has set up a separate group responsible for localisation of parts. This reduces the Companyâ&#x20AC;&#x2122;s H[SRVXUH WR FXUUHQF\ Ë&#x160;XFWXDWLRQ and boosts local economy.

c) Material: Two main ways through which the Company reduces material usage is yield improvement and â&#x20AC;&#x153;One Gram One Componentâ&#x20AC;? weight reduction initiative.

4. Has the Company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work? If yes, what steps have been taken to improve the capacity and capability of local and small vendors? Supplier capacity building initiatives of the Company include:

The end users of the vehicles produced by the Company are LQGLYLGXDO FXVWRPHUV ,W LV GLIË&#x2030;FXOW for the Company to determine the reduction in energy and water usage during usage by customers.

100%

350 300

72.6%

250 200

50 0

58.7%

100 80 60 40

32.8%

271

100

55.7%

234

150

45.2%

49.6%

60.0%

66.2%

216

The Company places immense focus on local sourcing of parts. Nearly 86 per cent of the supplier base by value is located within a

120

400

211

The Company has laid down robust sourcing processes and procedures that include competitive bidding and each new supplier is evaluated by all concerned agencies (Engineering, Quality and Supply Chain) before induction.

(%)

165

If yes, what percentage of your inputs was sourced sustainably? Also, provide details thereof, in about 50 words or so.

ISO 14001 status of Tier-I suppliers

147

i.

The Company also drives green initiative at suppliers. It is encouraging its Tier-I supplier to adopt ISO 14001 standard. As on 31st March 2013, 72.6 per cent suppliers ZHUH,62FHUWLË&#x2030;HGDQGDLPV at having 100 per cent suppliers ,62  FHUWLË&#x2030;HG E\  'HFHPEHU 2014 and provide support through training programmes, sensitisation sessions.

The Company works closely with its suppliers. Maruti Center of ([FHOOHQFH 0$&( ZDVVHWXSE\WKH Company along with 21 suppliers in 2004. The activities of MACE include providing training, support, and consultation to Tier-I and Tier-II suppliers and sales network to help them achieve world-class standards LQ TXDOLW\ FRVW VHUYLFH WHFKQRORJ\ orientation.

LL 5HGXFWLRQ GXULQJ XVDJH E\ consumers (energy, water) has been achieved since the previous year?

3. Does the Company have procedures in place for sustainable sourcing (including transportation)?

 7R DVVHVV DQG HQKDQFH +5 capability of its suppliers, the Company launched a programme FDOOHG Č&#x;%XVLQHVV ([FHOOHQFH through Peopleâ&#x20AC;&#x2122; where it engaged NQRZOHGJHSDUWQHUVWRLPSURYH+5 practices of suppliers and to make them harmonious with those of the Company.

113

64 - 65

Optimisation of material is central to the component design and development right at the product design stage.

The Company has recently formulated Green Procurement Guidelines. This will be rolled out in a phased manner, starting with Tier -I suppliers.

82

The intent of the â&#x20AC;&#x153;One Gram One Componentâ&#x20AC;? programme is to identify opportunities for weight reduction through design PRGLË&#x2030;FDWLRQV RI FRPSRQHQWV with an objective to reduce overall weight of the vehicle. The scrap generated from press shop operations at the Company is used for producing child parts IRU PD[LPLVLQJ VWHHO VKHHW utilisation. In 2012-13, over 31,343T of steel scrap was given to suppliers for manufacturing of small parts.

The Shikhar programme was launched four years ago to upgrade TXDOLW\ SUDFWLFHV DW VXSSOLHUVČ  HQG ,W SURYLGHV D SODWIRUP IRU TXDOLW\ teams to educate suppliers on basic principles of 4M (man, machine, method, material), tool maintenance, VNLOO PDWUL[ DQG RWKHUV ZLWK DQ REMHFWLYH WR VWUHQJWKHQ TXDOLW\ V\VWHPVDWVXSSOLHUV'XULQJTXDOLW\ month, top management of the &RPSDQ\YLVLWVVXSSOLHUVKRSË&#x160;RRUV WRUHLQIRUFHTXDOLW\LPSURYHPHQW

FYâ&#x20AC;&#x2122; 06

FYâ&#x20AC;&#x2122; 07

FYâ&#x20AC;&#x2122; 08

FYâ&#x20AC;&#x2122; 09

FYâ&#x20AC;&#x2122; 10

FYâ&#x20AC;&#x2122; 11

FYâ&#x20AC;&#x2122; 12

FYâ&#x20AC;&#x2122; 13

20 0 Dec-14

(Target)

9HQGRUZLWK,62FHUWLË&#x2030;FDWLRQ RI9HQGRUSODQWVFHUWLË&#x2030;HGIRU,62


Water use and recycling: The Companyâ&#x20AC;&#x2122;s primary source of water is canal water. The Company recycles and reuses water within its manufacturing units. The Company has achieved zero waste water discharge status (outside factory premises) since 2003-04 at its Gurgaon facility and since 2006-07 at its Manesar facility. Sources of water Canal water Tube well water 5DLQZDWHU TOTAL

2012-13 1,967,786 m3 23,207 m3 1,800 m3 1,992,793 m3

PRINCIPLE 3 : Businesses should promote the wellbeing of all employees 1. Please indicate the total number of employees. 

7KH&RPSDQ\LVDQHTXDORSSRUWXQLW\HPSOR\HUDQGKLUHVWDOHQWHGSURIHVVLRQDOVZLWK YDULHGH[SHUWLVH$EUHDNXSRIWKHZRUNIRUFHDVRQst March, 2013 is outlined below. Manpower Category

2012-13

5HJXODUPDQSRZHU Assistant supervisor & above

4,648

Associates/technicians

3,029

Trainees

1,744

Total regular manpower

9,421

Apprentices Contractual manpower/temporary workers TOTAL MANPOWER

936 8,554 18,911

2. Please indicate the total number of employees hired on temporary/contractual/casual basis. Mentioned in table above. 3. Please indicate the number of permanent women employees. Manpower Male Female TOTAL REGULAR

2012-13 9,091 330 9,421

ANNUAL REPORT 2012-13

FINANCIAL STATEMENTS

In 2012-13, 4264 T of hazardous waste ZDV JHQHUDWHG  7KH H[LVWLQJ ODQGË&#x2030;OO LV being gradually emptied out by sending waste to cement industry. In all 6133.6 T of hazardous waste was sent to the cement industry for co-processing.

7KH&RPSDQ\PHWSHUFHQWRIWKHWRWDOZDWHUUHTXLUHPHQWRIERWKWKHSODQWVWKURXJK UHF\FOHG ZDWHU LQ  7UHDWHG HIË&#x160;XHQW ZDWHU PHHWV WKH QHFHVVDU\ ZDWHU TXDOLW\ standards and is used for horticulture by the Company.

STATUTORY REPORTS

The saleable solid waste, such as metal scrap and glass waste are sold to recyclers and reusers. The used oil is sold to authorised recyclers. All e-waste management, maintenance and disposal are carried out through authorised recyclers.

Tree plantation by employees in Manesar village

MANAGEMENT REVIEW

Waste Management: The Company has strong procedures for waste handling and management. The hazardous wastes produced as by-products of manufacturing include paint sludge, phosphate sludge, (IË&#x160;XHQW7UHDWPHQW 3ODQW (73  VOXGJH incinerator ash and used oil. The Company has been sending paint sludge, phosphate sludge and ETP sludge to the cement industry for coprocessing since 2010-11. This has reduced the need for incineration and ODQGË&#x2030;OOLQJ

CORPORATE OVERVIEW

5. Does the Company have a mechanism to recycle products and waste? If yes, what is the percentage of recycling of products and waste (separately as <5 per cent, 5-10 per cent, >10 per cent). Also, provide details thereof, in about 50 words or so.


Business Responsibility Report

4. Please indicate the number of permanent employees with disabilities There were 10 differently abled male employees in the Company in 2012-13. 5. Do you have an employee association that is recognised by management? 

7KH&RPSDQ\Č VPDQDJHPHQWRIË&#x2030;FLDOO\UHFRJQLVHVWZRHPSOR\HHDVVRFLDWLRQVXQLRQVRQHHDFKDWLWV*XUJDRQSODQW0DQHVDUSODQW

6. What percentage of your permanent employees is members of this recognised employee association? The unions represent 100 per cent of the workers.  3OHDVHLQGLFDWHWKHQXPEHURIFRPSODLQWVUHODWLQJWRFKLOGODERXUIRUFHGODERXULQYROXQWDU\ODERXUVH[XDOKDUDVVPHQWLQWKHODVW Ë&#x2030;QDQFLDO\HDUDQGSHQGLQJDVRQWKHHQGRIWKHË&#x2030;QDQFLDO\HDU S.No. Category

1RRIFRPSODLQWVË&#x2030;OHGGXULQJ WKHË&#x2030;QDQFLDO\HDU

No. of complaints pending as on HQGRIWKHË&#x2030;QDQFLDO\HDU

1.

Child labour/forced labour/involuntary labour

Nil

Nil

2.

6H[XDOKDUDVVPHQW

Nil

Nil

3.

Discriminatory employment

Nil

Nil

8. What percentage of your under mentioned employees were given safety & skill up-gradation training in the last year?

66 - 67

Permanent Employees Permanent Women Employees Casual/Temporary/Contractual Employees Employees with Disabilities The Company values people and understands their needs for personal and career growth, and organises learning and development programmes across all functional roles. The Company conducts various programmes to train people in line with the business UHTXLUHPHQWDVRXWOLQHGEHORZ Category - wise training achievement Category

Man-days

Examples of training

([HFXWLYHVDQGDERYH

7.27

&DSLWDO %XGJHWLQJ (IIHFWLYH %XVLQHVV &RPPXQLFDWLRQ (QYLURQPHQW 0DQDJHPHQW 6\VWHP -DSDQHVH 0DQDJHPHQW Practices, Personal Effectiveness etc.

Supervisors

4.30

1HHY$VSHFLDOWUDLQLQJIRUEHKDYLRXUDOLPSURYHPHQWFRQË&#x160;LFW management, empowerment and innovative thinking. /HYHO 8S &DWHUHG WRZDUGV VKRS Ë&#x160;RRU ZRUNHUV WHDFKHV ways to focus on safety, collection of defect and rejection GDWD DQDO\VLV DQG FRXQWHUPHDVXUHV ,W DOVR DFTXDLQWV WKH HPSOR\HHVZLWKWKHEHVW-DSDQHVHVKRSË&#x160;RRUSUDFWLFHVDQG focuses on the importance of positive attitude and team ZRUNDWVKRSË&#x160;RRU

Associates

2.60

Pragati: Positive awareness of self, innovative thinking and creativity, work-life balance and so on Adhaar: Special training that promotes understanding of an employeeâ&#x20AC;&#x2122;s dual contribution to self and company for enhanced employee motivation. It assesses the ability to work with teams and achieve target orientation, consistent learning and its application.

Overall

5.15


In 2012-13, as many as 19,590 training manhours were dedicated on safety WUDLQLQJIRUVKRSË&#x160;RRUZRUNHUV PRINCIPLE 4 : Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised.



Employees and their families

a. Socio-economically disadvantaged members of society b. Schedule Caste/ Schedule Tribes c.

Local community consisting of large number of migrant population and %3/IDPLOLHV

3. Are there any special initiatives taken by the Company to engage with the disadvantaged, vulnerable and marginalised stakeholders. If so, provide details thereof, in about 50 words or so. a. Socio-economically disadvantaged members of society The Company is partnering with state governments for upgrading Industrial Training Institutes (ITIs).

Local community and society

Environment and regulatory authorities

Shareholders and investors

Customers and their families

1. Infrastructure improvements such as repair and maintenance of building  5DLQ ZDWHU KDUYHVWLQJ horticulture and landscaping 3. Provision of machines and tools  ,QGXVWU\ H[SRVXUH WKURXJK factory visits and interaction with industry personnel 5. Addition of modules to augment H[LVWLQJFRXUVHFRQWHQW 6. Faculty development  (GXFDWLRQDO H[SRVXUH WKURXJK visits for students In 2012-13, the total number of VWXGHQWV EHQHË&#x2030;WWLQJ IURP WKH Companyâ&#x20AC;&#x2122;s interventions in ITIs, were 8233. Across the 21 ITIs, there are about 1000 women and about 1600 SC/ST students. The Company also entered into tripartite MoU with ITIs, along with LWV GHDOHUV  WR XSJUDGH VSHFLË&#x2030;FDOO\ the automobile trade. The Company has 80 technical tie ups with ITIs for automobile trade upgradation as on 31st March, 2013. Through this initiative, 895 students from these institutes were absorbed into the Companyâ&#x20AC;&#x2122;s service network. Cumulatively, over 2100 students have been absorbed in the service network so far. b. Schedule Caste/ Schedule Tribes The Company partnered with the Government to actively take steps to develop driving training as a vocation. An MoU was signed

ANNUAL REPORT 2012-13

FINANCIAL STATEMENTS

Dealers, suppliers & other business partners

The Company carries out multiple activities at ITIs such as:

STATUTORY REPORTS

7KH &RPSDQ\ KDV LGHQWLË&#x2030;HG VL[ GLUHFW stakeholder groups. The Company engages with them to understand their needs and concerns, and undertakes action to address them. It recognises the importance of constant, continued and collaborative engagement with all organisations and individuals involved in or impacted by its operations.

Within the stakeholder group Local Community and Society, the Company KDVLGHQWLË&#x2030;HGWKHIROORZLQJYXOQHUDEOH and marginsalised sections:

The Company works with 21 government-run ITIs across the nation, of these 2 are Womenâ&#x20AC;&#x2122;s ITIs and 1 is an ITI for SC/STs

MANAGEMENT REVIEW

1. Has the Company mapped its internal DQGH[WHUQDOVWDNHKROGHUV"<HV1R

2. Out of the above, has the Company LGHQWLË&#x2030;HGWKHGLVDGYDQWDJHGYXOQHUDEOH & marginalised stakeholders?

CORPORATE OVERVIEW

Safety training is a part of the induction process and all employees mandatorily go through one day safety training. For shop Ë&#x160;RRU ZRUNHUV SHULRGLF VDIHW\ WUDLQLQJ LV organised as per the annual safety calander.


Business Responsibility Report

with the National Schedule Caste Finance Development Corporation (NSFDC) to train unemployed Schedule Caste youth in driving with a commitment to train 3000 youth. The Company designed a special 30 day training programme, comprising practical training, behavioral aspects, safe driving practices and so on. Initially, the programme was launched in Karnataka, Punjab, Haryana and Maharashtra. It is gradually being H[WHQGHGWRRWKHUVWDWHVDVZHOO In 2012-13, the Company successfully enrolled 1711 SC/ST youth for training in safe driving under this partnership. c. Local community

68 - 69

The Company is working in four neighbouring communities in Gurgaon and Manesar each. The areas of interventions include health, education, infrastructure development and skill training. Large sections of the community, especially in Gurgaon, are migrants who have moved to the city in VHDUFK RI HPSOR\PHQW %RWK LQ Manesar and Gurgaon communities, VHYHUDO %3/ IDPLOLHV DOVR UHVLGH After understanding the needs of the community, the Company undertakes social projects to address them. 

'HWDLOV RI WKH &65 SURJUDPPHV RI the Company are available in the Social Performance section of the &RPSDQ\Č V 6XVWDLQDELOLW\ 5HSRUW 2012-13.

PRINCIPLE 5 : Businesses should respect and promote human rights 1. Does the policy of the Company on human rights cover only the Company RUH[WHQGWRWKH*URXS-RLQW9HQWXUHV Suppliers/Contractors/NGOs/Others? The Company currently doesnâ&#x20AC;&#x2122;t have D VWDQGDORQH +XPDQ 5LJKWV SROLF\ However, aspects of human rights,

such as child labour, forced labour, occupational safety, discrimination are FRYHUHGE\LWV+XPDQ5HVRXUFHSROLFLHV The Company makes concerted efforts to strengthen mechanisms to ensure implementation of such policies. The Company will be developing a Human 5LJKWV3ROLF\LQWKHQHDUIXWXUH

H[WHQWE\QDWXUDOFDODPLWLHVVXFKDVWKH -DSDQ WVXQDPL LQ 0DUFK  DQG WKH 7KDLODQG Ë&#x160;RRGV WKDW IROORZHG VKRUWO\ 7KH &RPSDQ\ XQGHUWRRN DQ H[WHQVLYH ULVN PDSSLQJ H[HUFLVH ZLWK UHJDUG WR its value chain during the year and also continued its focus on localisation and 2nd source development.

2. How many stakeholder complaints have EHHQUHFHLYHGLQWKHSDVWË&#x2030;QDQFLDO\HDU and what per cent was satisfactorily resolved by the management?

To minimise the environmental impact of its product, the Company attempts to continually improve its products in WHUPV RI IXHO HIË&#x2030;FLHQF\ PDWHULDO XVH DQGUHF\FODELOLW\,WRIIHUVIDFWRU\Ë&#x2030;WWHG CNG vehicle options to its customers. CNG is a cleaner fuel and is also more economical.

The Company did not receive any stakeholder complaints in 2012-13 regarding human rights. PRINCIPLE 6 : Business should respect, protect, and make efforts to restore the environment



1. Does the policy related to Principle 6 FRYHURQO\WKH&RPSDQ\RUH[WHQGVWR WKH *URXS-RLQW 9HQWXUHV6XSSOLHUV Contractors/NGOs/others. The Company has a robust Environment Policy. It applies to the Company only. The Environment Policy is regularly reviewed and made available to the employees and general public through website. The Company has recently developed Green Procurement Guidelines for its suppliers. The Company regularly assesses and revises its environmental risks. Potential environmental risks feature in the Companyâ&#x20AC;&#x2122;s risk library. 2. Does the Company have strategies/ initiatives to address global environmental issues, such as climate change, global warming, etc? Y/N. If yes, please give hyperlink for webpage and others. The Company is conscious that changes in the global climate change scenario would have an impact on its operations and long-term sustainability. In 201213, while the Company itself didnâ&#x20AC;&#x2122;t face any risk due to climate change, its suppliers were impacted by climate change. Suppliers were hit, to some

$OO WKH &RPSDQ\Č V PRGHOV H[SHFW M800, Omni and Gypsy) are End-of-Life compliant, which means they are free from hazardous substances and over  SHU FHQW PDWHULDO FDQ EH H[WUDFWHG and reused without impacting the environment.

3. Does the Company identify and assess potential environmental risks? Y/N Yes, the Company is aware of its potential environmental risks. 4. Does the Company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if Yes, whether any environmental FRPSOLDQFHUHSRUWLVË&#x2030;OHG" 

7KH &RPSDQ\ LV WKH Ë&#x2030;UVW DXWRPRELOH company in India to register a Clean Development Mechanism (CDM) project with the United Nations Framework Convention on Climate Change (UNFCCC). The Company presently has registered two CDM projects: Shifting a part of vehicle transportation from roadways to railways through specially designed railway wagons. Waste heat recovery from gas turbines by installing a steam turbine generator in Gurgaon. The project was registered in 2013.


100 29872.8

80 60 40

117340.7

300 250 200 150 100 50

20 0

FYâ&#x20AC;&#x2122; 07

FYâ&#x20AC;&#x2122; 08

FYâ&#x20AC;&#x2122; 09

Cumulative CO2 reduction

FYâ&#x20AC;&#x2122; 10

FYâ&#x20AC;&#x2122; 11

FYâ&#x20AC;&#x2122; 12

0

FYâ&#x20AC;&#x2122;13

No. of alt. fuel vehicles sold

E (QHUJ\(IË&#x2030;FLHQF\ The per car electricity consumption at Gurgaon and Manesar plants has been reducing due to various innovations and technical improvements. Electricity consumption per car, indexed to base year 2000-01, Gurgaon

(%)

100 87

80

82

72

73

71

69

70

FYâ&#x20AC;&#x2122; 04

FYâ&#x20AC;&#x2122; 05

FYâ&#x20AC;&#x2122; 06

FYâ&#x20AC;&#x2122; 07

FYâ&#x20AC;&#x2122; 08

80

During the implementation of 2%',, 2Q %RDUG 'LDJQRVWLFV  V\VWHP LQ  IXHO HIË&#x2030;FLHQF\ of all models was improved.  )XHO HIË&#x2030;FLHQF\ IRU &1* PRGHOV was improved in the range of 2 per cent to 14 per cent by effective implementation of i-GPI technology and lowering the friction in the engine.

350

Cumulative sales of alternatefuel vehicles

67631.4

120

92957.4

140

FYâ&#x20AC;&#x2122; 01

FYâ&#x20AC;&#x2122; 02

FYâ&#x20AC;&#x2122; 03

FYâ&#x20AC;&#x2122; 09

FYâ&#x20AC;&#x2122; 10

68

70

73

FYâ&#x20AC;&#x2122; 11

FYâ&#x20AC;&#x2122; 12

FYâ&#x20AC;&#x2122;13

Nearly 30 per cent reduction achieved since 2000-01

ANNUAL REPORT 2012-13

FINANCIAL STATEMENTS

 )XHO HIË&#x2030;FLHQF\ RI GLHVHO YHKLFOHV was improved by 2 per cent to 10 per cent for all models. The use RI D QH[W JHQHUDWLRQ HQJLQH DQG transmission oil helped in reducing frictional losses and enhancing IXHO HIË&#x2030;FLHQF\ )XHO HIË&#x2030;FLHQF\ ZDV improved by over 10 per cent for WKH 5LW] GLHVHO PRGHO E\ IULFWLRQ reduction and engine calibration changes.

160

400

STATUTORY REPORTS

 6LJQLË&#x2030;FDQW IXHO DQG WKHUPDO HIË&#x2030;FLHQF\ZDVLPSURYHGLQ$OWR through technical advancements, and by using low-friction engine KDUGZDUH DQG UHË&#x2030;QHG LQWDNH system. Alto 800 has the bestLQFODVV IXHO HIË&#x2030;FLHQF\  3HWURO 22.74 kmpl and 30.46 km/kg for CNG. Improvement of over 15 per cent in petrol and 13.03 per cent in CNG)

180

MANAGEMENT REVIEW

Product emissions: The Company has successfully reduced CO2 emission WKURXJKIXHOHIË&#x2030;FLHQF\LPSURYHPHQWV UHGXFWLRQ RI H[KDXVW HPLVVLRQV DQG development of alternate fuel vehicles. ,PSURYHPHQWRIIXHOHIË&#x2030;FLHQF\DQG&22 HPLVVLRQV UHGXFWLRQV LQ WKH H[LVWLQJ YHKLFOHV)RUH[DPSOH

157231.8

a. Clean Technology

tonne/year

143756.6

Cumulative CO2 reduction

13408.9

6RPH H[DPSOHV RI WKH &RPSDQ\Č V efforts towards clean technology, energy HIË&#x2030;FLHQF\UHQHZDEOHHQHUJ\DUH

7KH&RPSDQ\ZDVWKHË&#x2030;UVWLQ,QGLDWRLQWURGXFHIDFWRU\Ë&#x2030;WWHG&1*YHKLFOHV7KHVDOHRI CNG vehicles has helped in reducing CO2 emissions.

Cumulative CO2 reduction, tonne/yr



 ,GOH 6WDUW 6WRS ,66   IHDWXUH KDV EHHQ LQWURGXFHG LQ WKH H[SRUW PDUNHW WR PHHW VWULQJHQWHPLVVLRQUHJXODWLRQUHTXLUHPHQWV (XUR 

CORPORATE OVERVIEW

5. Has the Company undertaken any other initiatives on â&#x20AC;&#x201C; clean technology, HQHUJ\ HIË&#x2030;FLHQF\ UHQHZDEOH HQHUJ\ and others? Y/N. If yes, please give hyperlink for web page and others.


Business Responsibility Report

Electricity consumption per car, indexed to base year 2007-08, Manesar

Society of Indian Automobile Manufacturers (SIAM)

(%)

SIAM SAFE (Society for Automotive Fitness and Environment)

100

 %XUHDXRI,QGLDQ6WDQGDUGV %,6

80

72 62

62

64

Society of Automotive Engineers (SAE) Combat Climate Change (CCC), a Sweden-based international NGO Advertising Standards of India (ASCI)

FYâ&#x20AC;&#x2122; 08

FYâ&#x20AC;&#x2122; 09

FYâ&#x20AC;&#x2122; 10

FYâ&#x20AC;&#x2122; 11

FYâ&#x20AC;&#x2122; 12

FYâ&#x20AC;&#x2122;13

Nearly 40 per cent reduction achieved since 2007-08

The International Automation (ISA)

Council

Society

of

 0HGLD8VHUV5HVHDUFK&RXQFLO 085&

70 - 71

UN Global Compact, India c. 5HQHZDEOH HQHUJ\ 6RODU OLJKWV have been installed in the pathways of Gurgaon and Manesar plants. A 1 MW solar power plant is planned in Manesar. Only LED lights have been XVHGLQSODQW%0DQHVDU

7.

Environmental Impact Assessments (EIA) are carried out as per the Guidelines of EIA 1RWLË&#x2030;FDWLRQ  DQG DV UHFRPPHQGHG E\WKH6WDWH([SHUW$SSUDLVDO&RPPLWWHH After getting the Environment Clearance, compliance reports are submitted twice a year.

6. Are the Emissions/Waste generated by the Company within the permissible OLPLWV JLYHQ E\ &3&%63&% IRU WKH Ë&#x2030;QDQFLDO\HDUEHLQJUHSRUWHG" All emissions and waste generated by the Company are within the SHUPLVVLEOH OLPLWV JLYHQ E\ &3&% 63&%7KHKD]DUGRXVZDVWHVSURGXFHG as by-products of manufacturing include paint sludge, phosphate sludge, (IË&#x160;XHQW7UHDWPHQW 3ODQW (73  VOXGJH incinerator ash and used oil. The used oil is sold to authorised recyclers. The saleable solid wastes, such as metal scrap and glass waste are sold to recyclers and reusers. The Company has been sending paint sludge, phosphate sludge and ETP sludge to the cement industry for coprocessing since 2010-11. This has minimised the need for incineration DQGODQGË&#x2030;OOLQJ7KLVZDVFRQWLQXHGLQ the reporting year as well.

Number of show cause/ legal notices UHFHLYHG IURP &3&%63&% ZKLFK DUH pending (i.e. not resolved to satisfaction) as at the end of the Financial Year.



1R VKRZ FDXVH QRWLFHV IURP 63&% RU &3&% DUH SHQGLQJ DQG VDWLVIDFWRU\ replies have been given to all notices IRUWKHË&#x2030;QDQFLDO\HDU

PRINCIPLE 7 : Businesses, when engaged LQLQË&#x160;XHQFLQJSXEOLFDQGUHJXODWRU\SROLF\ should do so in a responsible manner 1. Is your Company a member of any trade and chamber or association? If yes, name only those major ones that your business deals with: The Company regularly engages with LQGXVWU\ ERGLHV H[SHUW DJHQFLHV DQG contributes to the policy making process. The Company is a member of the following organisations: Confederation of Indian Industry (CII)

2. Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No; if yes specify the broad areas (Governance DQG $GPLQLVWUDWLRQ (FRQRPLF 5HIRUPV Inclusive Development Policies, Energy security, Water, Food Security, Sustainable %XVLQHVV3ULQFLSOHVDQGRWKHUV  The Company participates actively in the committees set up by the automobile industry association, SIAM and the government to decide on future regulations, policies and implementation plans. The Company deliberates upon matters of sustainable industrial growth and takes proactive steps towards this at forums, such as Confederation of Indian Industry (CII). Along with Society of Indian Automobile Manufacturers (SIAM), the Company discusses issues pertinent to the automobile sector and jointly engages with the government. 7KH &RPSDQ\  SURYLGHV WKH %XUHDX RI ,QGLDQ6WDQGDUGV %,6 LQSXWVIRUQHZ regulations for vehicles, study new standards feasibility. The Company also engages with the United Nations Global Compact India on issues of environment and climate change.


CORPORATE OVERVIEW MANAGEMENT REVIEW

$OHDUQHURQDGULYLQJVLPXODWRUDW,'751HZ'HOKL

 'RHV WKH &RPSDQ\ KDYH VSHFLË&#x2030;HG programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes details thereof. 

7KH &RPSDQ\ KDV DQ H[WHQVLYH &65 programme with three main focus areas: road safety, skill development and community development in neighbouring villages. The Company KDV ZHOO GHË&#x2030;QHG &65 SROLF\ JLYHV a high degree of importance to

2. Are the programmes/projects undertaken through in-house team/own foundation/ H[WHUQDO1*2JRYHUQPHQWVWUXFWXUHVDQ\ other organisation? 

7KH &65 SURJUDPPHV RI WKH &RPSDQ\ are run largely by in-house teams. However, wherever needed, services of 1*2SDUWQHUVZLWKVXEMHFWH[SHUWLVHLV taken.

3. Have you done any impact assessment of your initiative? 

7KH &65 SURJUDPPHV DQG WKHLU impacts/outcomes are monitored and reviewed by the management periodically.

4. What is your Companyâ&#x20AC;&#x2122;s direct contribution to community development projects$PRXQW LQ ,15 DQG WKH GHWDLOV RI WKH projects undertaken. 

'HWDLOV RI WKH &RPSDQ\Č V programmes are as under.

&65

Road safety: The Company runs a nationwide road safety programme

hat focuses on training on driving skill and behaviour. The Company has in â&#x20AC;&#x2DC;partnershipâ&#x20AC;&#x2122; with the state governments set up Institutes of 'ULYLQJDQG7UDIË&#x2030;F5HVHDUFK ,'75  and with its dealers set up Maruti Driving Schools (MDS). About 50 per cent of those trained at MDS are women. The Company runs VL[,'75VDQG0'6DFURVVWKH country. The Company has trained over 1.5 million persons cumulatively in safe driving since 2000. Skill Development: The Company partners with Government ITIs for their overall upgradation. It has adopted two distinct approachescomplete adoption of the institute and technical support in strengthening automobile trade at the ITIs. The Company is working with 21 ITIs for their complete RYHUDOO GHYHORSPHQW EHQHË&#x2030;WWLQJ over 8233 students in 2012-13. It is working with 80 ITIs for automobile trade upgradation. Most people studying at the ITIs come from ANNUAL REPORT 2012-13

FINANCIAL STATEMENTS

PRINCIPLE 8 : Businesses should support inclusive growth and equitable development

stakeholder engagement. The policy of the Company can be viewed on its corporate website.

STATUTORY REPORTS

The Company has advocated for reduced emissions through technology improvements for the betterment of Indian commuters through the National Electric Mobility Mission Plan (NEMMP 2020). It has assisted in the formulation of the mission document. The objective of NEMMP 2020 is to develop a roadmap which will promote electric vehicles in Indian by 2020. The engineering staff of the Company and SMC Engineering is continuously studying HEV/EV systems and these are being further tested and evaluated for Indian conditions.


Business Responsibility Report

School health camp organised at a village in Gurgaon

72 - 73

underprivileged sections of the society. Students studying at the ITIs have a placement rate of about 80 per cent. The Company also has technical tie ups with ITIs wherein the automobile trade is upgraded. As far as possible, trained boys from these institutes are absorbed in the Companyâ&#x20AC;&#x2122;s service network. So far, cumulatively over 2100 students from ITIs have been absorbed in the Companyâ&#x20AC;&#x2122;s service network. Community development: The community development activities are carried out in villages surrounding Gurgaon and Manesar plants (eight villages in all). The Companyâ&#x20AC;&#x2122;s community development programmes include healthcare, infrastructure development education and skill training for employment. The programmes reach out to special sections of the society such DV%3/DQGPLJUDQWV

Annual function at Sarhaul school, Gurgaon, supported by Maruti Suzuki

The Company spent ` 189.4 million RQLWV&65SURJUDPPHLQ 5. Have you taken steps to ensure that this community development initiative is successfully adopted by the community? 3OHDVHH[SODLQLQZRUGVRUVR To ensure successful implementation of community development programmes in the neighbouring villages of Manesar and Gurgaon, the Company adopts the following approaches: D %XLOGV UDSSRUW ZLWK FRPPXQLW\ leaders and opinion makers E 8QGHUWDNHV SURMHFW LGHQWLË&#x2030;FDWLRQ in association with community members c.

Involves villagers/community members in project implementation

d. Maintains continuous and close interaction with community PHPEHUVWKURXJKË&#x2030;HOGWHDPV e. Carries out impact assessment and perception survey to measure impact of social initiatives

PRINCIPLE 9 : Businesses should engage with and provide value to their customers and consumers in a responsible manner 1. What percentage of customer complaints/ consumer cases are pending as at the end RIWKHË&#x2030;QDQFLDO\HDU The Company has a robust system for addressing customer complaints with regard to sales and service. 

7KH FXVWRPHU FDVHV Ë&#x2030;OHG DJDLQVW company alleging defect in the vehicles RUUHODWLQJWRVDOHVDUHLQVLJQLË&#x2030;FDQWLQ number vi-a-vis compared with annual sales volume.

2. Does the Company display product information on the product label, over and above what is mandated as per local ODZV" <HV1R1$5HPDUNV DGGLWLRQDO information) The Company shares all important information about its products with its customers. The Ownerâ&#x20AC;&#x2122;s Manual and 6HUYLFH %RRNOHW LV SURYLGHG WR HDFK customer with the purchase of a car and contains all information relating


The company being a responsible corporate citizen has complied to all the rules and regulations including â&#x20AC;&#x153;ASCI Codeâ&#x20AC;? . There are no complaints Ë&#x2030;OHG E\ VWDNHKROGHUV IRU LUUHVSRQVLEOH advertising that are pending. The Director General, Competition Commission of India has conducted an investigation on 17automobile original HTXLSPHQW PDQXIDFWXUHUV LQ ,QGLD  including the company for alleged anti-competitive behavior. The matter is pending adjudicating in Competition Commission of India.

In ordinary course of business, customers who had purchases the FRPSDQ\Č V SURGXFWV Ë&#x2030;OHG FODLPV alleging unfair trade practices under â&#x20AC;&#x153;The Consumer Protection Act ČŁ ZKLFK DJDLQ DUH LQVLJQLË&#x2030;FDQW

STATUTORY REPORTS

The Company regularly engages with customers to get their feedback on the product and carries out internal surveys to gauge their satisfaction level. In addition, the Company closely VWXGLHVË&#x2030;QGLQJVRIWKHYDULRXVVXUYH\V FRQGXFWHGE\-'3RZHUDQGXVHVWKHP in product improvements.

 ,VWKHUHDQ\FDVHË&#x2030;OHGE\DQ\VWDNHKROGHU against the Company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour during WKHODVWË&#x2030;YH\HDUVDQGSHQGLQJ DVDWWKH HQGRIË&#x2030;QDQFLDO\HDU,IVRSURYLGHGHWDLOV thereof, in about 50 words or so.

in number. The company has been effectively defending all such claims before various fora.

&XVWRPHUVDWLVIDFWLRQLQGH[ -'3RZHU$VLD3DFLË&#x2030;FCSI Survey) 879

MANAGEMENT REVIEW

3. Did your Company carry out any consumer survey/ consumer satisfaction trends?

The Company has been ranked No.1 LQWKH-'3RZHU&XVWRPHU6DWLVIDFWLRQ 6XUYH\  WLPHV LQ D URZ 7KH LQGH[ is based on a study that measures satisfaction among vehicle owners IRU RYHUDOO VDWLVIDFWLRQ LQ Ë&#x2030;YH IDFWRUV VHUYLFHTXDOLW\YHKLFOHSLFNXSVHUYLFH advisor; service facility; and service initiation. Overall customer satisfaction is measured on a 1,000-point scale, with a higher score indicating higher satisfaction.

CORPORATE OVERVIEW

to safety, operation and maintenance of the vehicle. At the time of vehicle delivery, technical features of the YHKLFOHDUHH[SODLQHGWRWKHFXVWRPHU Product-related information is also available on the Companyâ&#x20AC;&#x2122;s website. Critical information on product usage HJ $& JDV WLUH SUHVVXUH EUDNH Ë&#x160;XLG and others) is displayed on the labels and provided on the products for information and educational purposes. In addition, periodic customer meets are conducted at dealer workshops for customer education and awareness on product usage.

879

849

FYâ&#x20AC;&#x2122; 11

MSIL

824

FYâ&#x20AC;&#x2122; 12

834

FINANCIAL STATEMENTS

812

FYâ&#x20AC;&#x2122; 13

Industry

ANNUAL REPORT 2012-13


,QOLIHDQGLQEXVLQHVVLWLVVRPHWLPHVGLIË&#x2030;FXOW to predict roadblocks in advance. But they do impede our path unexpectedly and make the journey forward challenging.

5HJLVWHUHG2IË&#x2030;FH

Registrar and Transfer Agent

1, Nelson Mandela Road, Vasant Kunj New Delhi â&#x20AC;&#x201C; 110 070

.DUY\&RPSXWHUVKDUH3YW/WG Plot No. 17 â&#x20AC;&#x201C; 24, Vittal Rao Nagar Madhapur, Hyderabad â&#x20AC;&#x201C; 500 081 Andhra Pradesh

Phone: +91 11 4678 1000 Resilience

Resolve www.marutisuzuki.com

Phone: +91 40 2342 0815/ 2342 0816 www.karvycomputershare.com

Resurgence

Š0DUXWL6X]XNL,QGLD/LPLWHG


Maruti Suzuki India Limited

concept and design at

(info@aicl.in)

www.marutisuzuki.com

Maruti brr 2012 13  
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