Annual Report - Motherson Sumi Systems

1 AnnualReport2015 2016 Year 1/5 of our2020 Sumi Systems LimitedCorporate HeadquarterPlot , Sector-127 Noida-Greater Noida ExpresswayNoida - 201301 Uttar Pradesh, India29th Annual Report 2015 -2016motherson sumi Systems limitedDisclaimerIn this Annual Report , we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. This Report and other statements written and oral that we periodically make contain forward-looking statements that set out anticipated results based on the management s plans and assumptions.

2 We have tried, wherever possible, to identify such statements by using words such as anticipate , estimate , expects , projects , intends , plans , believes , and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realized, although we believe we have been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected.

3 Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or Report 2015 -20161(Late) Smt. SehgalFounder Chairperson(Late) Sh. SehgalChairman EmeritusBoard of directorSMr. Vivek chaand SehgalChairmanMr. Sushil chandra tripathi, iaS (retd.)Independent DirectorMr. toshimi ShirakawaDirectorMr. arjun PuriIndependent DirectorMr. Gautam MukherjeeIndependent DirectorMs. Geeta MathurIndependent DirectorMr. Naveen GanzuIndependent DirectorMr. Laksh Vaaman SehgalDirectorMs.

4 Noriyo NakamuraDirectorMr. Pankaj MitalWhole-time Director/Chief Operating Officerregistered officeUnit 705, C Wing, ONE BKC, G Block,Bandra Kurla Complex, Bandra East,Mumbai 400051, Maharashtra, Indiainvestor cellMr. GaubaCompany Secretary & Chief Financial Computershare Pvt. Selenium Tower B Plot number 31 & 32 Financial District Nanakramguda Serilingampally Mandal Hyderabad 500032, IndiaauditorsPrice Waterhouse Chartered Accountants 8, 7th & 8th Floor DLF Cyber City, Gurgaon 122002 Haryana, IndiaBankers State Bank of India Axis Bank Ltd. Citibank DBS Bank Ltd.

5 HDFC Bank Ltd. ICICI Bank Ltd. Japan Bank for International Cooperation The Bank of Tokyo Mitsubishi UFJ Ltd. The Hongkong and Shanghai Banking Corporation Annual Report information of a bigger story About SMG Our principal partner sumitomo Wiring Systems Ltd. Motherson Sumi Systems Limited and Vision 2020 Financial highlights of 2015 -16 business overview Letter from the Chairman Our business heads harnesses Polymers and modules MirrorsMotherson Innovations 10 Awards and recognition ofa biggermotherson sumi Systems limited217 Statement of profit and loss Cash flow statement 19 Consolidated financial statements 14 Report on corporate governance Auditor s Report Balance sheet Management discussions and analysis Business Responsibilty Report Directors Report Report 2015 -20163

6 Chapter 02motherson sumi Systems limited4 The 2015 -16 Annual Report marks the first year of our fifth five-year plan. The idea behind our five-year plans is to see the big picture and work hard to constantly strengthen our foundation and consolidate the gains, so that each year of the plan contributes to the overall outcome. This means that every division, every department, every person and every action within MSSL is always part of a bigger story . The company as a whole is part of a bigger story too. We are part of the success of our customers, the growing prosperity of our investors and the strength of the communities we work this Annual Report we look behind the numbers and present to you a more in-depth look at our main divisions.

7 We hope you will find this overview useful and sumi Systems limited6 Samvardhana Motherson Group (SMG) is a leading supplier to the global automotive industry. It is a full system solutions provider with a diversified, industry-leading portfolio of auto ancillary products and services that focus principally on the automotive industry in India and around the world. It also caters to a number of other industries. The Group recorded a turnover of approximately USD billion during is a global partner of a well balanced customer base spread across five continents, with more than 180 manufacturing plants and a global network of modern design centres in 25 countries across North America, South America, Europe, South Africa, Middle East, Asia Pacific and combines the power of innovation and high quality to passionately create world-class products that cater to customer needs across various industries.

8 Our business portfolio is diverse, comprising electrical distribution Systems (wiring harnesses), rear view mirrors, polymer processing, injection moulding tools, elastomer processing, modules and Systems including cockpits and instrument panels, door trims, bumpers, lighting Systems , air intake manifolds, pedal assemblies, HVAC Systems , machined metal products, IT services, engineering and design, CAE services, cabins for off-highway vehicles, environment management Systems , cutting tools and thin film coating metals. The Group has also invested in technologies that provide manufacturing support, including compressors, paint coating equipment, auxiliary equipment for injection moulding machines and automotive manufacturing engineering is proud to support its customers from the initial stages of product development including conceptualisation and design, through to prototyping and tool manufacturing, and finally production and delivery.

9 This ability of the Group to provide end-to-end solutions to its customers has helped it become a Tier One supplier and a preferred solutions provider. Further, SMG has expanded its presence and enhanced its leadership position in the market through a combination of steady organic growth and strategic acquisitions. SMG is a global partner of a well balanced customer base spread across five continents, withmore than 180 manufacturing plants and a global network of modern design centres. Chapter 03 Samvardhana Motherson Report 2015 -20167 Samvardhana Motherson International Limited (SMIL) is the principal holding company of the Samvardhana Motherson Group (SMG).

10 It holds of the equity share capital of Motherson Sumi Systems Limited (MSSL), the flagship company of is the nerve centre of the Group, providing support, strategy and management not only to MSSL, but also to all other companies under the SMG umbrella. It binds and manages the different ventures of the Group and provides direction to drive growth by creating value for all its stakeholders. SMIL s diversified product portfolio encompasses the entire range of SMG products, and its multiple businesses have deep manufacturing and design capabilities to cater to various customer vertical and horizontal integration has been the cornerstone of the evolution and growth of SMG, and SMIL has led the way by developing the ability to source from within the Group.