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maruti suzuki annual report 2011-12 - pdf download free

ANNUAL REPORT 2011-12
SONA KOYO STEERING SYSTEMS LTD.
Deming Award winner Sona Koyo Steering Systems Ltd. has the latest testing facilities to
ensure top quality standards
C O N T E N T S
Chairman's Letter
2
Vice Chairman & Managing Director's Letter
4
Board of Directors
6
Management Discussion and Analysis
9
Corporate Governance Report
17
Additional Shareholder Information
33
Directors' Report
42
Auditors' Report
47
Financials
50
Auditors' Report (Consolidated)
75
Financials (Consolidated)
76
1
C H A I R M A N ' S
2
L E T T E R
3
V I C E - C H A I R M A N
D I R E C T O R ' S
4
A N D
L E T T E R
M A N A G I N G
Dear Shareholders,
A positive look at 2011-12, a year full of challenges
for the Automotive sector, shows multiple gains at
Sona Koyo both in terms of financial and operational
performance.
The company has followed a conscious strategy of
adding new customers and increasing penetration
amongst existing customers. The impact of this move
can be corroborated by 10% growth in revenues
despite strong headwinds in the automotive sector.
Company’s entry into a new segment with orders
from John Deere, one of the world’s leading players
in off-road vehicle market, is a testimony to the
technological prowess & strong market standing.
Let me take this opportunity to outline the progress
that Sona Koyo has made in some of the key focus
areas, namely Strengthening Partnerships with
Suppliers & JV Partners, Improving Competitiveness &
Strategic Investments in People & IT systems.
Sona Koyo believes in the power of partnerships
and the unique capabilities of its partners to
complement and supplement each other. Sona Koyo
has collaborated with multiple partners for different
products, technologies and customer requirements.
A testimony to this is the long standing relationship
with our partners such as JTEKT, Maruti Suzuki
and Fuji Kiko. The company, in collaboration with
Confederation of Indian Industry (CII) is also leading
the VSME (Visionary Small & Medium Enterprises)
program aimed at improving technical & operational
efficiency of tier-2 & tier-3 suppliers. The Company
organized Supplier Conference which was attended
by 220 suppliers. The theme for the conference was
"Partnering Growth" and was aimed at enabling both
Sona Koyo and the suppliers to be mutually aligned
to the changing market scenario.
With Cost Competitiveness being a source of crucial
strategic advantage in the current market scenario,
your company has placed considerable emphasis on
enhancing efficiency & productivity of operations. We
have taken a multi-pronged approach in execution of
this strategy by increasing localization and enhancing
our Backward Integration & Insourcing program.
The company has followed a structured approach
aimed at greater localization of imported parts,
exploring weight reduction opportunities and
competitive dual sourcing of components. The
company continues to make strong efforts aimed at
further reducing percentage of imported components.
The Insourcing program is a strategic move to not
only bring back processes that had been outsourced
but also improve quality, reduce cost and increase
value addition, all of which would have a positive
impact on our profitability. Also the company has
set up an aluminium die casting plant as part of its
backward integration program which would further
enhance operational efficiency.
The organization undertook a strategic exercise
aimed at developing a leadership pipeline and at the
same time build a strong pool of talent. The company
through its program called the “Drivers of Tomorrow”
has identified future leaders and is implementing