Maruti Suzuki AR 2012 13

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

6WDWHPHQW RI 3URˉW DQG /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

6WDWHPHQW RI 3URˉW DQG /RVV

139

Cash Flow Statement

140

Notes

142


,Q OLIH DV LQ EXVLQHVV LW LV RIWHQ GLIˉFXOW WR SUHGLFW URDGEORFNV %XW WKH\ UHJXODUO\ LPSHGH RXU SDWK DQG ˉOO WKH MRXUQH\ ZLWK FKDOOHQJHV DQG JURZWK 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.

+RZ GR ZH UHVSRQG WR VXFK D 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 LQWHUQDO VWUHQJWKV WR ˉJKW EDFN 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 VKDUH DQG SURˉWV DQG DOVR NHSW RXU IXWXUH LQYHVWPHQW SODQV RQ VFKHGXOH 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


Momentum Across Rough and Smooth Territories Business Highlights

NET SALES

` MN

203,583

289,585

358,490

347,059

426,126 Y- O -Y GROWTH

22.7% 2008-09

2009-10

6-7

NET WORTH

2010-11

2011-12

2012-13

` MN

138,675

118,351

185,789

151,874

93,449

Y- O -Y GROWTH

22.3% 2008-09

2009-10

BOOK VALUE & EPS

2010-11

2011-12

2012-13

`

Y- O -Y GROWTH

17.1% 615 Y- O -Y GROWTH

525

480

38.6%

410 86

323

79

79 57

42 Book Value

EPS

2008-09

2009-10

2010-11

2011-12

2012-13


Numbers paint a credible picture than words. Every time we encountered a roadblock, it made us determined to perform with more resolve and persistence.

` MN

24,976

12,187

22,886

16,352

23,921 Y- O -Y GROWTH

CORPORATE OVERVIEW

PROFIT AFTER TAX

46.3% 2009-10

2010-11

TOTAL UNIT SALES

1,133,695

2009-10

J.D. Power Customer Satisfaction Index

2010-11

MSIL Industry Avg.

2012

Look around. You will find us close by.

1,204

2011

2011-12 1,100

824

801 849

2010

Cities

874 879

2010-11 933 668

812 824

2009

Outlets

2012-13

834

2009-10 802

785

555 820

780

2012-13

2008-09 681 454 ANNUAL REPORT 2012-13

FINANCIAL STATEMENTS

879

2011-12

1,171,434

STATUTORY REPORTS

2008-09

2012-13

1,271,005 1,018,365

792,167

2008

2011-12

MANAGEMENT REVIEW

2008-09


8-9

Resilience against headwinds. Resolve to hold our ground and push forward. Resurgence and a new era of sustainable growth. That’s our story in a nutshell. The full narrative follows...


1,171,434

4/5

Vehicles sold in 2012-13

)RXU RXW RI WRS ˉYH VHOOLQJ PRGHOV LQ WKH FRXQWU\ DUH IURP Maruti Suzuki

1st

62%

393,000

Growth of diesel vehicle sales over 2011-12

Total diesel vehicle sales in 2012-13

291,000

7,150

Growth of rural sales over 2011-12

Total rural sales in 2012-13

Total Resident Dealer Sales Executives (RDSEs) by 2012-13

640

240,000

Number of E-outlets (smaller format outlets) across India in 2012-13

Number of new cars sold through exchange in 2012-13

Market share in utility vehicle segment in 2012-13

79,000

41%

Zero

Number of utility vehicles sold in 2012-13

Of the total water need met through recycled water at both plants in 2012-13

Waste water discharged status at factories

In J. D. Power Customer Satisfaction Index (CSI) study for the 13th consecutive year

Rounded off to nearest ‘000


Tough Challenges. Tougher Resilience. Challenges have a EULJKWHU VLGH 7KH\ test the extent of our UHVLOLHQFH


GDP GROWTH

(%)

9.5

9.6

9.3

6.7

8.6

9.3

6.2

5.0

FY’06

FY’07

FY’08

FY’09

FY’10

FY’11

FY’12

FY’13

Challenge ,QGLDȠV *'3 JURZWK KLWV D GHFDGH ORZ DFFRPSDQLHG E\ KLJK LQWHUHVW UDWHV ULVLQJ LQˊDWLRQ DQG D EOHDN LQYHVWPHQW VFHQDULR

PETROL PRICES IN DELHI

MSIL PETROL VEHICLE SALES

(` / litre)

893,000 43.9 FY’10

52.7 FY’11

64.5 FY’12

(in units)

701,000

598,000

68.2 FY’13

FY’11

FY’12

FY’13

Challenge 3HWURO SULFH GHUHJXODWLRQ DQG D GHSUHFLDWLQJ UXSHH DJDLQVW WKH GROODU LQFUHDVHG SHWURO SULFHV OHDGLQJ WR DQ LPSDFW RQ SHWURO YHKLFOH VDOHV

FY’10

43,000

FY’11

Challenge

28,000

FY’12

:HDNQHVV LQ WKH (XUR]RQH DQG ZLWKGUDZDO RI VFUDSSDJH LQFHQWLYH VFKHPH LPSDFWHG WKH &RPSDQ\ȠV H[SRUW VDOHV WR WKH (XURSHDQ FRXQWULHV

FY’13

| (Rounded off to nearest ‘000)

59,000

114,000

(in units)

YEN vs RUPEE 0.51

0.53

0.61

0.66

Challenge <HQ DSSUHFLDWLRQ LQ WKH ODVW IHZ \HDUV LPSDFWHG SURˉW PDUJLQV E\ VLJQLˉFDQWO\ LQFUHDVLQJ WKH FRVW RI LPSRUWV

FY’10

FY’11

FY’12

FY’13

Source: Economic Survey, Economic Outlook, Company

(Graphs not to scale)

EXPORTS TO EUROPEAN COUNTRIES


Firm Resolve. Seasoned Foresight. $W 0DUXWL 6X]XNL ZH EHOLHYH ˉUP UHVROYH is not enough to ZHDWKHU D FULVLV one needs seasoned IRUHVLJKW Firm resolve $ URXJK VNHWFK ZLWK VHQVXDO FXUYHV 6XGGHQ EUDLQZDYHV &RQYHUWLQJ WKRVH SHQFLO OLQHV LQWR DFWXDO VKDSH RYHU D FXS RI KLJK RFWDQH FRIIHH ,QWHQVH GLVFXVVLRQ DPRQJ GHVLJQ KHDGV RQ H[WHULRU DQG LQWHULRUV )LQDOLVLQJ WKH FRORXUV PDWHULDOV DQG VW\OH 0HWLFXORXV H[HFXWLRQ $QG WKHQ WKH ELJ ODXQFK

%LUWK RI WKH FRXQWU\È V ˉUVW /LIH 8WLOLW\ 9HKLFOH /89 (UWLJD

5HELUWK RI WKH FRXQWU\È V ODUJHVW VHOOLQJ FDU 1HZ $OWR

76,000

124

Number of Ertiga sold in just a year of its launch

DIESEL VEHICLE SALES

(in units)

199,000

163,000

FY’10

1XPEHU RI GD\V WDNHQ to sell 1 lakh units of New Alto 800

FY’11

243,000

FY’12

393,000

FY’13

,QFUHDVH LQ VDOH RI 6ZLIW GLHVHO over 2011-12

,QFUHDVH LQ VDOH RI DZire (diesel) over 2011-12

Seasoned foresight :LWQHVVLQJ WKH ZLGH JDS EHWZHHQ SHWURO DQG GLHVHO SULFHV DQG XQGHUVWDQGLQJ WKH ,QGLDQ FRQVXPHU VHQWLPHQW WKH &RPSDQ\ TXLFNO\ UDPSHG XS WKH GLHVHO HQJLQH SURGXFWLRQ DQG WLHG XS IRU PRUH HQJLQHV IURP ),$7 ,QGLD

RURAL SALES 151,000

(in units)

Sales

228,000 16.5%

FY’10

245,000 20.5%

FY’11

291,000 25%

FY’12

Contribution to domestic sales (%)

28% FY’13

Firm Resolve :H LQFUHDVHG RXU QHWZRUN SUHVHQFH LQ 7LHU ,, DQG 7LHU ,,, FLWLHV DQG DGGHG GHGLFDWHG PDQSRZHU IRU UXUDO VDOHV 7KLV UHVXOWHG LQ DQ RYHUDOO UXUDO FRQWULEXWLRQ RI SHU FHQW WR GRPHVWLF VDOHV


NEW CAR SALES THROUGH EXCHANGE 151,000 17%

194,000 17%

FY’10

(in units)

Sales

211,000 22%

FY’11

FY’12

Contribution to domestic sales (%)

240,000 23%

FY’13

Seasoned foresight

FY’11

3,200

FY’12

4,200

FY’13

EXPORTS TO NON-EUROPEAN COUNTRIES (in units) 33,000

FY’10

79,000

FY’11

84,000

FY’12

92,000

FY’13

Seasoned foresight

Firm resolve

7KH KLJK SULFHV RI SHWURO DQG GLHVHO KDYH UHVXOWHG LQ HPHUJHQFH RI &1* DV D YLDEOH DQG SUHIHUUHG IXHO RSWLRQ

The Company made strong efforts to develop the non(XURSHDQ PDUNHWV DQG WKLV FRPSHQVDWHG WR D ODUJH H[WHQW IRU WKH IDOO LQ (XURSHDQ VDOHV Source: Company

|

1,300

(average sales/ month)

(Graphs not to scale)

CNG CAR SALES

(Rounded off to nearest ‘000)

:H OHYHUDJHG RXU EUDQG VWUHQJWK DQG HQGXULQJ FXVWRPHU OR\DOW\ WR JHQHUDWH UHSODFHPHQW GHPDQG WKURXJK DWWUDFWLYH H[FKDQJH VFKHPHV


Resurgence. Hard Earned. Our industry leadership has been sustained by our IRFXVHG UHVXUJHQFH

DFUHV

/DQG DFTXLUHG for setting up an assembly capacity in Gujarat

~ ` FURUHV

~ ` FURUHV

Amount of investment in setting up the third assembly plant at Manesar

Amount of investment in setting up a diesel engine unit at Gurgaon

5HVXUJHQFH (YHQ ZKHQ GRPHVWLF DQG JOREDO DXWRPRELOH LQGXVWU\ LV EHVHW ZLWK FKDOOHQJHV ZH FRQWLQXH WR H[SDQG DQG UHPDLQ SRVLWLYH RQ WKH ORQJ WHUP ,QGLDQ JURZWK VWRU\

EBITDA AND PAT MARGIN 9.0 6.0 FY’09

EBITDA

(%)

13.7 8.6

10.1 6.3

FY’10

FY’11

7.2 4.7 FY’12

10.0 5.6 FY’13

5HVXUJHQFH 'HVSLWH HVFDODWLQJ FRVWV ZH LPSURYHG RXU PDUJLQV E\ IRFXVLQJ RQ RSHUDWLRQDO HIˉFLHQF\ DQG FRVW UDWLRQDOLVDWLRQ VWUDWHJLHV

MARUTI SUZUKI MARKET SHARE 46.5 FY’09

(%)

44.6 FY’10

45.3 FY’11

38.3 FY’12

80

39.1 FY’13

Basis Points 5HVXUJHQFH &RQVLVWHQW SHUIRUPDQFH LUUHVSHFWLYH RI VHYHUDO PDFUR DQG PLFUR IDFWRUV KHOSHG XV LQFUHDVH RXU PDUNHW VKDUH

PAT Margin


25.7

FY’10

28.2

FY’11

(%)

5.1

FY’12

2.2

FY’13

7RWDO JURZWK in domestic sales by Maruti Suzuki in 2012-13 (Graphs not to scale)

PASSENGER VEHICLE INDUSTRY GROWTH

5HVXUJHQFH ,Q D SDVVHQJHU YHKLFOH LQGXVWU\ JURZLQJ DW SHU FHQW ZH JUHZ E\ SHU FHQW Source: SIAM, Company


24 - 25

Directors’ Report

The Company ranked third in the list of 100 most successful and LQˊXHQWLDO FRPSDQLHV in India listed by TLG Partners, London.

Your directors have pleasure in presenting the 32nd annual report together with the audited accounts for the year ended 31st March 2013.

FINANCIAL RESULTS 7KH &RPSDQ\ȠV ˉQDQFLDO SHUIRUPDQFH GXULQJ WKH \HDU DV FRPSDUHG WR WKH SUHYLRXV \HDU LV VXPPDULVHG EHORZ (` in million) Total revenue 3URˉW EHIRUH WD[ 7D[ H[SHQVH 3URˉW DIWHU WD[ %DODQFH EURXJKW IRUZDUG Addition on amalgamation

2012-13

2011-12

444,003

364,139

29,910

21,462

5,989

5,110

23,921

16,352

130,777

118,578

3,565

158,263

134,930

General reserve

2,392

1,635

Proposed dividend

2,417

2,167

3URˉW DYDLODEOH IRU DSSURSULDWLRQ $SSURSULDWLRQV

&RUSRUDWH GLYLGHQG WD[ %DODQFH FDUULHG IRUZDUG WR EDODQFH VKHHW

411

351

153,043

130,777


FINANCIAL HIGHLIGHTS

DIVIDEND

'XULQJ WKH \HDU ,62 6XUYHLOODQFH DXGLW ZDV FDUULHG RXW E\ 0 V $9, Belgium and the auditors recommended FRQWLQXDWLRQ RI WKH ,62

Compact Sedan of the year 2013

The quality management system of WKH &RPSDQ\ LV FHUWLˉHG DJDLQVW ,62 6WDQGDUG 5H DVVHVVPHQW RI WKH quality systems is done at regular intervals DQG UH FHUWLˉFDWLRQ DVVHVVPHQWV DUH GRQH DW HYHU\ \HDUV E\ DQ DFFUHGLWHG WKLUG party agency. Also, the Company has an internal assessment mechanism to verify DQG HQVXUH DGKHUHQFH RI GHˉQHG TXDOLW\ systems across the Company.

AWARDS/RECOGNITION/ RANKINGS - ' 3RZHU $VLD 3DFLˉF &XVWRPHU 6DWLVIDFWLRQ ,QGH[ &6, 6WXG\ UDQNHG the Company highest for the 13th time in a row.

OPERATIONAL HIGHLIGHTS

Golden Peacock Award – 2012 for occupational health and safety in DXWRPRELOH VHFWRU

7KH RSHUDWLRQV DUH H[KDXVWLYHO\ GLVFXVVHG in the report on ‘Management Discussion and Analysis’ which forms part of this annual report.

The Company was awarded the highest ˉQDQFLDO FUHGLW UDWLQJ RI $$$ VWDEOH ORQJ WHUP DQG $ VKRUW WHUP RQ LWV EDQN IDFLOLWLHV E\ &5,6,/ 7KH UDWLQJ XQGHUVFRUHV WKH ˉQDQFLDO VWUHQJWK RI WKH &RPSDQ\ LQ terms of the highest safety with regard WR WLPHO\ IXOˉOOPHQW RI LWV ˉQDQFLDO REOLJDWLRQV

QUALITY The Company was again awarded ,62 FHUWLˉFDWLRQ E\ 674& 'LUHFWRUDWH 6WDQGDUGLVDWLRQ 7HVWLQJ DQG 4XDOLW\ &HUWLˉFDWH 0LQLVWU\ RI &RPPXQLFDWLRQV DQG ,QIRUPDWLRQ 7HFKQRORJ\ *RYHUQPHQW RI ,QGLD DIWHU UH DVVHVVPHQW 7KH &RPSDQ\

Some of the awards given to Ertiga ZHUH 089 RI WKH \HDU E\ &DU ,QGLD $ZDUGV 039 RI WKH \HDU E\ (7 =LJZKHHOV $XWRFDU ,QGLD DQG %6 0RWRULQJ &RPSDFW 689 IRU WKH \HDU E\ &1%& 2YHUGULYH Top Gear family car of the year Some of the awards given to Alto 800 ZHUH (QWU\ +DWFKEDFN &DU RI WKH <HDU E\ 1'79 &1%& $ZDUGV (QWU\ OHYHO +DWFKEDFN &DU RI WKH <HDU E\ (7 =LJZKHHOV $ZDUGV %HVW 9DOXH IRU 0RQH\ &DU RI WKH \HDU E\ $XWRFDU $ZDUGV &RPSDFW &DU RI WKH \HDU E\ &1%& 2YHUGULYH

The Company ranked third in the list RI PRVW VXFFHVVIXO DQG LQˊXHQWLDO FRPSDQLHV LQ ,QGLD OLVWHG E\ 7/* 3DUWQHUV /RQGRQ 0U 5 & %KDUJDYD &KDLUPDQ ZDV DZDUGHG WKH $XWRPRELOH 3HUVRQ RI WKH <HDU E\ 1'79 3URˉW

SUBSIDIARY COMPANIES AND THEIR ACCOUNTS 7KH &RPSDQ\Č V VXEVLGLDULHV ZKLFK ZHUH HQJDJHG LQ WKH EXVLQHVV RI LQVXUDQFH GLVWULEXWLRQ LQ WKH SDVW JHQHUDWHG DQ investment income of ` 141.75 million including a dividend income of ` 8.93 million and long term capital gain of ` 132.82 million through mutual funds. 7KH &RPSDQ\Č V VXEVLGLDU\ Č&#x;7UXH 9DOXH 6ROXWLRQV /LPLWHGČ KDV FRQWULEXWHG WRZDUGV VPRRWK RSHUDWLRQV RI EXVLQHVV processes and supported the dealerships LQ HQKDQFLQJ WKH VDOH RI SUH RZQHG FDUV XQGHU WKH EUDQG 0DUXWL 7UXH 9DOXH ,W KDV FRQWULEXWHG VLJQLˉFDQWO\ WR WKH HIIRUWV RI FXVWRPHU UHWHQWLRQ E\ IDFLOLWDWLQJ VDOH DQG UH SXUFKDVH RI QHZ FDUV WKURXJK H[FKDQJH DQG KDV PDGH VLJQLˉFDQW FRQWULEXWLRQ WRZDUGV HQKDQFLQJ GHDOHUVČ SURˉWDELOLW\ ,Q WHUPV RI WKH JHQHUDO FLUFXODU GDWHG 8th )HEUXDU\ LVVXHG E\ WKH *RYHUQPHQW RI ,QGLD 0LQLVWU\ RI &RUSRUDWH $IIDLUV WKH EDODQFH VKHHWV SURˉW ORVV DFFRXQWV UHSRUWV RI WKH ERDUG RI GLUHFWRUV DQG DXGLWRUV RI WKH VXEVLGLDU\ FRPSDQLHV KDYH QRW EHHQ DWWDFKHG ZLWK WKH EDODQFH sheet of the Company. Annual accounts RI WKH VXEVLGLDU\ FRPSDQLHV DQG WKH UHODWHG GHWDLOHG LQIRUPDWLRQ VKDOO EH PDGH DYDLODEOH WR VKDUHKROGHUV RI WKH &RPSDQ\ DQG VXEVLGLDU\ FRPSDQLHV seeking such information at any point of

9LHZHUV &KRLFH E\ &1%& 2YHUGULYH

ANNUAL REPORT 2012-13

FINANCIAL STATEMENTS

CRISIL RATINGS

Golden Peacock Award – 2012 for VXVWDLQDELOLW\

0LGVL]HG &DU RI WKH \HDU E\ &1%& 2YHUGULYH

STATUTORY REPORTS

7KH ERDUG UHFRPPHQGV D GLYLGHQG RI ` 8 (eight) per equity share of ` 5 each for the year ended 31st March 2013 amounting to ` 2,417 million.

&RPSDFW 6HGDQ RI WKH \HDU E\ &DU ,QGLD

MANAGEMENT REVIEW

3URˉW EHIRUH WD[ 3%7 ZDV ` 29,910 million against ` 21,462 million showing DQ LQFUHDVH RI SHU FHQW DQG SURˉW DIWHU WD[ 3$7 VWRRG DW ` 23,921 million against ` 16,352 million in the previous year showing an increase of 46 per cent.

Some of the awards given to Swift '=LUH ZHUH

CORPORATE OVERVIEW

7KH WRWDO UHYHQXH QHW RI H[FLVH ZDV ` 444,003 million as against ` 364,139 million in the previous year showing an increase of 22 per cent. Sale of vehicles in the domestic market was 1,051,046 units as compared to 1,006,316 units in the previous year showing an increase of 4 SHU FHQW 7RWDO QXPEHU RI YHKLFOHV H[SRUWHG was 120,388 units as compared to 127, 379 units in the previous year.

KDV HVWDEOLVKHG DQG LV PDLQWDLQLQJ DQ ,QIRUPDWLRQ 6HFXULW\ 0DQDJHPHQW 6\VWHP


Maruti Suzuki India Limited

concept and design at

(info@aicl.in)

www.marutisuzuki.com


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.