Home  »  Company  »  MothersonSumiSystems  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Motherson Sumi Systems Ltd.

Mar 31, 2016

1. General Information

Motherson Sumi Systems Limited was incorporated in India on 19th December, 1986 and is engaged primarily in the manufacture and sale of components to automotive original equipment manufacturers. Company has manufacturing plants in India and sells primarily in India, Europe and Japan. The Company is a public limited company and is presently listed on the Bombay Stock Exchange and National Stock Exchange. The Company is a joint venture entity between Samvardhana Motherson International Limited and Sumitomo Wiring Systems Limited, Japan.

2. The long term defined employee benefits and contribution schemes are as under

A) Defined Contribution Schemes

The Company deposits an amount determined at a fixed percentage of basic pay every month to the State administered Provident Fund and Employee State Insurance authority (ESI) for the benefit of the employees.

(B) Defined Benefit Schemes

(1) Gratuity: The Company operates a gratuity plan administered through Life Insurance Corporation of India (LIC) under its Group Gratuity Scheme. Every employee is entitled to a benefit equivalent to fifteen days'' salary last drawn for each completed year of service in line with the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier. The benefits vest after five years of continuous service. The Company pays contribution to Life Insurance Corporation of India to fund its plan.

3. SEGMENT REPORTING

The Company has considered the business segment as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and services. Consequently, the geographical segment has been considered as a secondary segment.

The business segment have been identified on the basis of the nature of products and services, the risks and returns, internal organisation and management structure and the internal performance reporting systems.

4. Related Party Disclosures

Related party disclosures, as required by AS18, "Related Party Disclosures", are given below:

I Relationships where control exists:

Subsidiaries of the Company:

1. MSSL Mauritius Holdings Limited

2. Motherson Electrical Wires Lanka Pvt. Ltd

3. MSSL Mideast (FZE)

4. MSSL (S) Pte Ltd.

5. MSSL Automobile Component Ltd

6. Samvardhana Motherson Polymers Ltd.

7. MSSL (GB) Limited

8. Motherson Wiring System (FZE)

9. MSSL GmbH

10. MSSL Tooling (FZE)

11. Samvardhana Motherson Invest Deutschland GmbH

12. MSSL Advanced Polymers s.r.o

13. Motherson Orca Precision Technology GmbH

14. MSSL s.r.l Unipersonale

15. Samvardhana Motherson Polymers Management Germany GmbH

16. Samvardhana Motherson Plastic Solutions GmbH & Co. KG

17. Motherson Techno Precision Mexico, S.A. de C.V

18. MSSL Australia Pty Ltd

19. MSSL Ireland Pvt. Limited

20. Global Environment Management (FZC)

21. Global Environment Management Australia Pty Limited

22. Motherson Elastomers Pty Limited

23. Motherson Investments Pty Limited

24. MSSL Global RSA Module Engineering Limited

25. MSSL Japan Limited

26. Vacuform 2000 (Proprietary) Limited.

27. MSSL Mexico, S.A. De C.V.

28. MSSL WH System (Thailand) Co., Ltd

29. MSSL Korea WH Limited

30. MSSL Consolidated Inc.

31. MSSL Overseas Wiring System Ltd., U.K.

32. MSSL Wiring System Inc., USA

33. Alphabet de Mexico, S.A. de C.V.

34. Alphabet de Mexico de Monclova, S.A. de C.V.

35. Alphabet de Saltillo, S.A. de C.V.

36. MSSL Wirings Juarez S.A. de C.V.

37. Samvardhana Motherson Global Holdings Ltd.

38. Samvardhana Motherson Automotive Systems Group B.V.

39. Samvardhana Motherson Reflectec Group Holdings Limited

40. SMR Automotive Technology Holding Cyprus Ltd.

41. SMR Automotive Mirror Parts and Holdings UK Ltd.

42. SMR Automotive Holding Hong Kong Limited

43. SMR Automotive Systems India Limited

44. SMR Automotive Systems France S. A.

45. SMR Automotive Mirror Technology Holding Hungary Kft

46. SMR Patents S.aR.L.

47. SMR Automotive Technology Valencia S.A.U.

48. SMR Automotive Mirrors UK Limited

49. SMR Automotive Mirror Services UK Ltd.

50. SMR Automotive Mirror International USA Inc.

51. SMR Automotive Systems USA Inc.

52. SMR Automotive Beijing Co. Limited

53. SMR Automotive Yancheng Co. Limited

54. SMR Automotive Mirror Systems Holding Deutschland GmbH

55. SMR Holding Australia Pty Limited

56. SMR Automotive Australia Pty Limited

57. SMR Automotive Mirror Technology Hungary Bt

58. SMR Poong Jeong Automotive Mirrors Korea Ltd.

59. SMR Automotive Beteiligungen Deutschland GmbH

60. SMR Hyosang Automotive Ltd.

61. SMR Automotive Mirrors Stuttgart GmbH

62. SMR Automotive Systems Spain S.A.U.

63. SMR Automotive Vision Systems Mexico S.A. de C.V.

64. SMR Automotive Servicios Mexico S.A. de C.V.

65. SMR Grundbesitz GmbH & Co. KG

66. SMR Automotive Brasil LTDA

67. SMR Automotive System (Thailand) Limited

68. SMR Automotives Systems Macedonia Dooel Skopje

69. SMR Automotive Operations Japan K.K.

70. SMR Automotive (Langfang) Co. Ltd.

71. SMR Automotive Vision System Operations USA INC

72. SMR Mirror UK Limited

73. Samvardhana Motherson Peguform GmbH

74. SMP Automotive Interiors (Beijing) Co. Ltd

75. SMP Deutschland GmbH

76. SMP Logistik Service GmbH

77. SMP Automotive Solutions Slovakia s.r.o

78. Changchun Peguform Automotive Plastics Technology Co. Ltd

79. Foshan Peguform Automotive Plastics Technology Co. Ltd.

80. SMP Automotive Technology Management Services (Changchun) Co. Ltd.

81. SMP Automotive Technology Iberica S.L

82. Samvardhana Motherson Peguform Barcelona S.L.U

83. SMP Automotive Technologies Teruel Sociedad Limitada

84. Samvardhana Motherson Peguform Automotive Technology Portugal S.A

85. SMP Automotive Systems Mexico S.A. de C.V

86. SMP Automotive Produtos Automotivos do Brasil Ltda.

87. SMP Automotive Exterior GmbH

88. Samvardhana Motherson Innovative Autosystems B.V. & Co. KG (known as SMIA BV & Co. KG)

89. Samvardhana Motherson Innovative Autosystems Holding Company BV

90. SM Real Estate GmbH

91. Samvardhana Motherson Innovative Autosystems de Mexico, S.A. de C.V

92. Samvardhana Motherson Real Estate Unit de Mexico, S.A. de C.V. . (Merged with Samvardhana Motherson Innovative Autosystems de Mexico, S.A. de C.V. w.e.f. 07.10.2015)

93. SMIA de Mexico Administrative Services, S.A. de C.V. (Merged with Samvardhana Motherson Innovative Autosystems de Mexico, S.A. de C.V. w.e.f. 07.10.2015)

94. SMP Automotive Systems Alabama Inc. (become the subsidiary w.e.f. 30.06.2015)

95. Motherson Innovations Company Limited, U.K. (incorporated on 18.11.2015)

96. Motherson Innovations Deutschland GmbH (become the subsidiary w.e.f. 26.02.2016)

97. Samvardhana Motherson Global (FZE) (become the subsidiary w.e.f. 03.02.2016)

II. Other Related Parties

a. Joint Ventures:

1. Kyungshin Industrial Motherson Pvt. Ltd. (converted into Pvt. Ltd. w.e.f. 06.04.2015)

2. Calsonic Kansei Motherson Auto Products Pvt. Ltd.

3. Samvardhana Motherson Nippisun Technology Ltd.

4. Woco Motherson Elastomer Ltd. (discontinued from 28.05.2015) (Refer Note 13)

5. Woco Motherson Advanced Rubber Technologies Ltd. (discontinued w.e.f. 28.05.2015) (Refer Note 13)

6. Woco Motherson Limited (FZC) (discontinued w.e.f. 28.05.2015)

7. Ningbo SMR Huaxiang Automotive Mirrors Co. Limited

8. Chongqing SMR Huaxiang Automotive Products Limited

9. Celulosa Fabril (Cefa) S.A. (Zaragoza, ES)

10. Modulos Rivera Alta S.L.U.

11. Eissmann SMP Automotive interieur Slovakia s.r.o.

b. Associate Companies:

1. Saks Ancillaries Limited

2. Re-time Pty Limited

c. Key Management Personnel:

i) Board of Directors: (From 01.04.2015 to 31.03.2016)

1. Mr. Vivek Chaand Sehgal

2. Mr. Laksh Vaaman Sehgal

3. Mr. S C Tripathi, IAS (Retd.)

4. Maj. Gen. Amarjit Singh (Retd.) (resigned w.e.f. 28.07.2015)

5. Mr. Toshimi Shirakawa

6. Mr. Arjun Puri

7. Mr. Gautam Mukherjee

8. Ms. Geeta Mathur

9. Mr. Naveen Ganzu (appointed on 14.10.2015)

10. Ms. Noriyo Nakamura

11. Mr. Pankaj Mital

ii) Other Key Management Personnel:

1. Mr. G.N. Gauba

2. Mr. Sanjay Mehta

iii) Relatives of Key Management Personnel:

1. Ms. Renu Sehgal (Wife of Mr. V.C. Sehgal)

2. Ms. Vidhi Sehgal (Daughter of Mr. V.C. Sehgal)

3. Ms. Geeta Soni (Sister of Mr. V.C. Sehgal)

4. Ms. Neelu Mehra (Sister of Mr. V.C. Sehgal)

5. Ms. Samriddhi Sehgal (Wife of Mr. L.V. Sehgal)

6. Master Siddh Vaasav Sehgal (Son of Mr. L.V. Sehgal)

d. Companies in which Key Managerial Personnel or their relatives have control/ significant influence:

1. Motherson Auto Limited

2. Motherson Air Travel Agencies Limited

3. Ganpati Auto Industries (Partnership Firm)

4. Southcity Motors Private Limited

5. Motherson Techno Tools Limited

6. Motherson Techno Tools Mideast (FZE)

7. SWS India Management & Support Service (P) Limited

8. Vaaman Auto Industry (Partnership Firm)

9. MothersonSumi INfotech and Designs Limited

10. Motherson Engineering Research and Integrated Technologies Limited

11. Moon Meadows Private Limited

12. Sisbro Motor and Workshop Private Limited

13. NACHI Motherson Tool Technology Limited

14. Motherson (Partnership Firm)

15. Samvardhana Motherson International Limited

16. A Basic Concepts Design Pty Limited

17. ATAR Mauritius Private Limited

18. Motherson Auto Solutions Limited

19. Motherson Machinery and Automations Limited

20. Spheros Motherson Thermal System Limited

21. Matsui Technologies India Limited

22. Motherson Moulds and Diecasting Limited

23. Anest Iwata Motherson Private Limited

24. Field Motor Private Limited

25. AES (India) Engineering Limited

26. Motherson Auto Engineering Service Ltd

27. Anest Iwata Motherson Coating Equipment Pvt. Ltd.

28. Nissin Advanced Coating Indo Co. Pvt. Ltd.

29. Magneti Marelli Motherson India Holding B.V.

30. Magneti Marelli Motherson Auto System Pvt. Ltd. (converted into Pvt. Ltd. w.e.f. 18.04.2015)

31. Samvardhana Motherson Finance Services Cyprus Limited

32. Samvardhana Motherson Refrigeration Product Limited

33. Samvardhana Motherson Virtual Analysis Ltd.

34. Tigers Connect Travel Systems and Solutions Limited

35. Samvardhana Motherson Holding (M) Private Limited

36. Motherson Advanced Tooling Solutions Limited

37. SCCL Infra Projects Limited

38. SCCL Global Project (FZE)

39. Fritzmeier Motherson Cabin Engineering Private Limited

40. Air Factory Energy Limited

41. CTM India Limited.

42. MSID U.S. Inc

43. Motherson Consultancies Service Limited

44. Spirited Auto Cars (I) Limited

45. Motherson Lease Solution Limited

46. Systematic Conscom Limited

47. MAS Middle East Ltd. (FZE)

48. Nachi Motherson Precision Pvt. Ltd.

49. Motherson Bergstrom HVAC Solutions Private Limited

50. Motherson Sintermetal Technology Limited

51. Advanced Technologies and Auto Resources Pte. Ltd.

52. Edcol Global Pte. Limited

53. Motherson Innovative Technologies and Research

54. Radha Rani Holdings Pte Ltd

55. Shri Sehgals Trustee Company Private Limited

56. Nirvana Niche Products Private Limited

57. Nirvana Foods GmbH

58. Magneti Marelli Motherson Shock Absorbers India Private Limited

59. Samvardhana Motherson Auto System Private Limited

60. Samvardhana Motherson Auto Component Private Limited

61. Mothersonsumi Infotech and Designs SG Pte. Ltd.

62. Mothersonsumi Infotech & Designs KK

63. MothersonSumi INfotekk and Design GmbH

64. Motherson Invenzen XLab Private Limited (formerly known as Invenzen Technologies Pvt. Ltd.)

65. Motherson Sintermetal Products S.A.

e. Joint Venturer:

1. Sumitomo Wiring Systems Limited, Japan

2. Kyungshin Corporation, Korea

3. Woco Franz Josef Wolf Holding GmbH, Germany (discontinued w.e.f. 28.05.2015)

4. Calsonic Kansei Corporation, Japan

5. E-Compost Pty. Limited, Australia

6. Dremotech GmbH & Co. KG., Germany

7. Cross Motorsport Systems AG

8. Blanos Partners S.L.

9. Changshu Automobile Interior Decoration Co., Ltd

10. Ningbo Huaxiang Electronic Co., Ltd.

11. Eissmann Automotive Slovensko s.r.o

12. Nippon Pigment(s) Pte. Ltd.

13. Toyota Tsusho Corporation, Japan

5. Leases As a lessee:

(i) Operating Lease

The Company has significant operating leases for premises, plant & machinery, vehicles and computers. These lease arrangements range for a period between 11 months and 15 years, which include both cancellable and non-cancellable leases. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses. Refer below the details of operating lease :

6. Current tax expense is net off provision for income tax for earlier years written back amounting to Rs.386 million (Previous year: Rs. Nil) due to completion of tax assessments for earlier year.

7. As per Section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been formed by the Company. The areas for CSR activities are of Skill Development and Vocation based education, Livelihood enhancement, Waste management and Sanitation, Environmental sustainability, Women and youth empowerment, Disaster relief, National Missions projects which are specified in Schedule VII of the Companies Act, 2013.

The Company is in the process of further formalising the process on CSR spends and hence has contributed Rs.23 million on promotion of girls education during the year as against Rs.136 million required to be spent in accordance with Section 135 of the Act.

8. The Company has a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company appoints independent consultants for conducting a Transfer Pricing Study to determine whether the transactions with associate enterprises are undertaken, during the financial year, on an "arm''s length basis". Adjustments, if any, arising from the transfer pricing study shall be accounted for as and when the study is completed for the current financial year. However, the management is of the opinion that its international and domestic transactions are at arm''s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

9. Previous year figures have been reclassified to conform to this year''s classification.


Mar 31, 2015

1. General Information

Motherson Sumi Systems Limited is incorporated in India on 19th December, 1986 and is engaged primarily in the manufacture and sale of components to automotive original equipment manufacturers. The Company has manufacturing plants in India and sells primarily in India, Europe and Japan. The Company is a public limited company and is listed on the Bombay Stock Exchange, National Stock Exchange, Ahmedabad Stock Exchange and Delhi Stock Exchange. The Company is a joint venture entity between Samvardhana Motherson International Limited and Sumitomo Wiring Systems Limited, Japan.

2. Contingent Liabilities

Particulars As at As at March 31, 2015 March 31, 2014

Claims against the Company not acknowledged as debts *

a) Excise Matters 56 46

b) Sales Tax Matters 51 98

c) Service Tax Matters 44 37

d) Stamp Duty 5 5

e) Claims made by Workmen 19 18

f) Income Tax Matters 94 55

g) Custom demand matters 59 -

* Against which Company has given bank guarantee amounting to Rs. 62 million (Previous Year Rs. 33 million)

(a) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings.

(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.

3. SEGMENT REPORTING

The Company has considered the business segment as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and services. Consequently, the geographical segment has been considered as a secondary segment.

The business segment have been identified on the basis of the nature of products and services, the risks and returns, internal organisation and management structure and the internal performance reporting systems.

The business segment comprise of the following:

Segments Products categories in respective segments

Automotive

Wiring Harness, High Tension Cords, Wire, Plastic Components, Rubber Components, Cockpit Assembly, Mould for wiring harness components and mould parts, plastic moulded components and brass terminals

Non-Automotive Wiring Harness, Plastic Components for white goods, Household Wires, Plates, Aerobin

Geographical segment is considered based on sales within India and outside India

c) Inter Segment Transfer Pricing

Inter Segment prices are normally negotiated amongst the segments with reference to the costs, market prices and business risks, with an overall optimisation objective for the Company.

4. Related Party Disclosures

Related party disclosures, as required by AS18, "Related Party Disclosures", are given below:

I Relationships where control exists:

Subsidiaries of the Company:

1. MSSL Mauritius Holdings Limited

2. Motherson Electrical Wires Lanka Pvt. Ltd

3. MSSL Mideast (FZE)

4. MSSL (S) Pte Ltd.

5. MSSL Handels GmbH (Liquidated on 23.07.2014)

6. MSSL Automobile Component Ltd

7. Samvardhana Motherson Polymers Ltd.

8. MSSL (GB) Limited

9. Motherson Wiring System (FZE)

10. MSSL GmbH

11. MSSL Tooling (FZE)

12. Samvardhana Motherson Invest Deutschland GmbH

13. MSSL Advanced Polymers s.r.o

14. Motherson Orca Precision Technology GmbH

15. MSSL s.r.l Unipersonale

16. Samvardhana Motherson Polymers Management Germany GmbH (through MSSL GmbH) (incorporated on 29.07.2014)

17. Samvardhana Motherson Plastic Solutions GmbH & Co. KG (through MSSL GmbH) (incorporated on 31.07.2014)

18. Motherson Techno Precision Mexico, S.A. de C.V

19. MSSL Australia Pty Ltd

20. MSSL Ireland Pvt. Limited

21. Global Environment Management (FZC)

22. Global Environment Management Australia Pty Limited.

23. Motherson Elastomers Pty Limited

24. Motherson Investments Pty Limited

25. MSSL Global RSA Module Engineering Limited

26. MSSL Japan Limited

27. Vacuform 2000 (Proprietary) Limited.

28. MSSL Mexico, S.A. De C.V.

29. MSSL WH System (Thailand) Co., Ltd

30. MSSL Korea WH Limited

31. MSSL Consolidated Inc. (w.e.f. 29.05.2014)

32. MSSL Overseas Wiring System Ltd. (w.e.f. 27.06.2014)

33. MSSL Wiring System Inc., USA (w.e.f. 29.05.2014)

34. Alphabet de Mexico, S.A. de C.V. (w.e.f 02.08.2014)

35. Alphabet de Mexico de Monclova, S.A. de C.V. (w.e.f 02.08.2014)

36. Alphabet de Saltillo, S.A. de C.V. (w.e.f 02.08.2014)

37 MSSL Wirings Juarez S.A. de C.V. (w.e.f. 20.03.2015)

38. Samvardhana Motherson Global Holdings Ltd.

39. Samvardhana Motherson Automotive Systems Group B.V.(SMRPBV) (earlier known as Samvardhana Motherson B.V.)

40. Samvardhana Motherson Reflectec Group Holdings Limited

41. SMR Automotive Technology Holding Cyprus Ltd.

42. SMR Automotive Mirror Parts and Holdings UK Ltd.

43. SMR Automotive Holding Hong Kong Limited

44. SMR Automotive Systems India Limited

45. SMR Automotive Systems France S. A.

46. SMR Automotive Mirror Technology Holding Hungary Kft

47. SMR Patents S.aR.L.

48. SMR Automotive Technology Valencia S.A.U.

49. SMR Automotive Mirrors UK Limited

50. SMR Automotive Mirror Services UK Ltd.

51. SMR Automotive Mirror International USA Inc.

52. SMR Automotive Systems USA Inc.

53. SMR Automotive Beijing Co. Limited

54. SMR Automotive Yancheng Co. Limited

55. SMR Automotive Mirror Systems Holding Deutschland GmbH

56. SMR Holding Australia Pty Limited

57. SMR Automotive Australia Pty Limited

58. SMR Automotive Mirror Technology Hungary Bt

59. SMR Poong Jeong Automotive Mirrors Korea Ltd.

60. SMR Automotive Beteiligungen Deutschland GmbH

61. SMR Hyosang Automotive Ltd.

62. SMR Automotive Mirrors Stuttgart GmbH

63. SMR Automotive Systems Spain S.A.U.

64. SMR Automotive Vision Systems Mexico S.A. de C.V.

65. SMR Automotive Servicios Mexico S.A. de C.V.

66. SMR Grundbesitz GmbH & Co. KG

67. SMR Automotive Brasil LTDA

68. SMR Automotive System (Thailand) Limited

69. SMR Automotives Systems Macedonia Dooel Skopje

70. SMR Automotive Operations Japan K.K.

71. SMR Automotive (Langfang) Co. Ltd.

72. SMR Automotive Vision System Operations USA INC

73. SMR Mirror UK Limited

74. Samvardhana Motherson Peguform GmbH

75. SMP Automotive Interiors (Beijing) Co. Ltd

76. SMP Deutschland GmbH

77. SMP Logistik Service GmbH

78. SMP Automotive Solutions Slovakia s.r.o

79. Changchun Peguform Automotive Plastics Technology Co. Ltd

80. Foshan Peguform Automotive Plastics Technology Co. Ltd.

81. SMP Automotive Technology Management Services (Changchun) Co. Ltd.

82. SMP Automotive Technology Iberica S.L

83. Samvardhana Motherson Peguform Barcelona S.L.U

84. SMP Automotive Technologies Teruel Sociedad Limitada

85. Samvardhana Motherson Peguform Automotive Technology Portugal S.A

86. SMP Automotive Systems Mexico S.A. de C.V

87. SMP Automotive Produtos Automotivos do Brasil Ltda.

88. SMP Automotive Exterior GmbH

89. SMP Tecnologia Parachoques S.A. de C.V. (Merged into SMP Automotive Systems Mexico S.A. de C.V. on 01.04.2014)

90. SMP Shock Absorber Fabrication Mexico S.A. de C.V. (Merged into SMP Automotive Systems Mexico S.A. de C.V. on 01.04.2014)

91. Samvardhana Motherson Innovative Autosystems B.V. & Co. KG (known as SMIA BV & Co. KG) (w.e.f. 31.01.2015)

92. Samvardhana Motherson Innovative Autosystems Holding Company BV (w.e.f. 31.01.2015)

93. SM Real Estate GmbH (w.e.f. 31.01.2015)

94. Kunstsoff-Technik Trier de Mexico S.A de C.V. (w.e.f. 31.01.2015)

95. Property Holdings Trier de Mexico S.A de C.V. (w.e.f. 31.01.2015)

96. Administrative Services Trier de Mexico S.A. de C.V (w.e.f. 31.01.2015)

II. Other Related Parties

a. Joint Ventures:

1. Kyungshin Industrial Motherson Limited

2. Woco Motherson Elastomer Limited

3. Woco Motherson Advanced Rubber Technologies Limited

4. Woco Motherson Limited (FZC) (Indirectly through Subsidiary)

5. Calsonic Kansei Motherson Auto Products Private Limited (converted in to Pvt. Ltd. Co. w.e.f. 31.03.2015)

6. Ningbo SMR Huaxiang Automotive Mirrors Co. Limited (Indirectly through Subsidiary)

7. Chongqing SMR Huaxiang Automotive Products Limited (Indirectly through Subsidiary)

8. Celulosa Fabril (Cefa) S.A. (Zaragoza, ES) (Indirectly through Subsidiary)

9. Modulos Rivera Alta S.L.U. (Indirectly through Subsidiary)

10. Samvardhana Motherson Nippisun Technology Ltd (SMNTL)

11. Eissmann SMP Automotive interieur Slovakia s.r.o. (Indirectly through Subsidiary)

b. Associate Companies:

1. Saks Ancillaries Limited

2. Re-time Pty Limited

c. Key Management Personnel:

i) Board of Directors: (From 01.04.2014 to 31.03.2015)

1. Mr. V.C. Sehgal

2. Mr. Laksh Vaaman Sehgal

3. Mr. Toshimi Shirakawa

4. Maj. Gen. Amarjit Singh (Retd.)

5. Mr. Arjun Puri

6. Mr. Pankaj Mital

7. Mr. S C Tripathi, IAS (Retd.)

8. Mr. Gautam Mukherjee

9. Ms. Geeta Mathur

10. Ms. Noriyo Nakamura

ii) Other Key Management Personnel:

1. Mr. G.N. Gauba

2. Mr. Sanjay Mehta

iii) Relatives of Key Management Personnel:

1. Ms. Renu Sehgal (Wife of Mr. VC. Sehgal)

2. Ms. Vidhi Sehgal (Daughter of Mr. VC. Sehgal)

3. Ms. Geeta Soni (Sister of Mr. VC. Sehgal)

4. Ms. Neelu Mehra (Sister of Mr. VC. Sehgal)

5. Ms. Samriddhi Sehgal (Wife of Mr. L.V. Sehgal)

6. Master Siddh Vaasav Sehgal (Son of Mr. L.V. Sehgal)

d. Companies in which Key Managerial Personnel or their relatives have control/ significant influence:

1. Motherson Auto Limited

2. Motherson Air Travel Agencies Limited

3. Ganpati Auto Industries (Partnership Firm)

4. Southcity Motors Private Limited (converted in to Pvt. Ltd. Co. w.e.f. 31.03.2015)

5. Motherson Techno Tools Limited

6. Motherson Techno Tools Mideast (FZE)

7. SWS India Management & Support Service (P) Limited

8. Vaaman Auto Industry (Partnership Firm)

9. Motherson Sumi INfotech and Designs Limited

10. Motherson Engineering Research and Integrated Technologies Limited

11. Moon Meadows Private Limited

12. Sisbro Motor and Workshop Private Limited

13. NACHI Motherson Tool Technology Limited

14. Motherson (Partnership Firm)

15. Samvardhana Motherson International Limited (also a Joint venturer)

16. A Basic Concepts Design Pty Limited

17. ATAR Mauritius Private Limited

18. Motherson Auto Solutions Limited

19. Motherson Machinery and Automations Limited

20. Spheros Motherson Thermal System Limited

21. Matsui Technologies India Limited

22. Motherson Moulds and Diecasting Limited

23. Anest Iwata Motherson Private Limited (converted in to Pvt. Ltd. Co. w.e.f. 31.03.2015)

24. Field Motor Private Limited (converted in to Pvt. Ltd. Co. w.e.f. 11.03.2015)

25. AES (India) Engineering Limited

26. Motherson Auto Engineering Service Ltd

27. Anest Iwata Motherson Coating Equipment Limited

28. Nissin Advanced Coating Indo Co. Limited

29. Magnetti Marelli Motherson Holding India BV

30. Magnetti Marelli Motherson Auto System Limited

31. Samvardhana Motherson Finance Services Cyprus Limited

32. Samvardhana Motherson Refrigeration Product Limited (earlier known as Motherson Zanotti Refrigeration System Limited Name Change w.e.f 11.08.2014)

33. Samvardhana Motherson Virtual Analysis Ltd.

34. Tigers Connect Travel Systems and Solutions Limited

35. Samvardhana Motherson Holding (M) Private Limited.

36. Motherson Advanced Tooling Solutions Limited

37. SCCL Infra Projects Limited

38. Fritzmeier Motherson Cabin Engineering Private Limited. (converted in to Pvt. Ltd. Co. w.e.f. 31.03.2015)

39. Air Factory Energy Limited

40. CTM India Limited.

41. MSID U.S. Inc

42. Motherson Consultancies Service Limited (earlier known as Motherson Climate System Ltd.)

43. Spirited Auto Cars (I) Limited

44. Motherson Lease Solution Limited

45. Systematic Conscom Limited

46. MAS Middle East Ltd. (FZE)

47. Nachi Motherson Precision Ltd.

48. Motherson Bergstrom HVAC Solutions Private Limited

49. Motherson Sintermetal Technology Limited

50. Advanced Technologies and Auto Resources Pte. Ltd.

51. Edcol Global Pte. Limited

52. Motherson Innovative Technologies and Research

53. Radha Rani Holdings Pte Ltd

54. Shri Sehgals Trustee Company Private Limited

55. Nirvana Niche Products Private Limited (earlier known as Nirvana Agro Products Private Limited name change w.e.f 11.11.2014))

56. Nirvana Foods GmbH (w.e.f. 16.04.2014)

57. Magneti Marelli Motherson Shock Absorbers India Private Limited (w.e.f. 01.08.2014)

58. Samvardhana Motherson Auto System Private Limited (name changed w.e.f. 19.12.2014, earlier known as Samvardhana Motherson Trading Private Limited (incorporated on 17.11.2014))

59. Samvardhana Motherson Auto Component Private Limited (SMACPL) (incorporated on 23.12.2014)

e. Joint Venturer:

1. Sumitomo Wiring Systems Limited, Japan

2. Kyungshin Corporation, Korea

3. Woco Franz Josef Wolf Holding GmbH, Germany

4. Calsonic Kansei Corporation, Japan

5. E-Compost Pty. Limited, Australia

6. Dremotech GmbH & Co. KG., Germany

7. Cross Motorsport Systems AG

8. Blanos Partners S.L.

9. Changshu Automobile Interior Decoration Co., Ltd

10. Ningbo Huaxiang Electronic Co., Ltd.

11. Eissmann Automotive Slovensko s.r.o

5. As per Section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been formed by the Company. The areas for CSR activities are of Skill Development and Vocation based education, Livelihood enhancement, Waste management and Sanitation, Environmental sustainability, Women and youth empowerment, Disaster relief, National Missions projects which are specified in Schedule VII of the Companies Act, 2013.

The Company is in the process of further formalising the process on CSR spends and hence has contributed Rs. 1.5 million on promotion of girls education during the year as against Rs. 117 million required to be spent in accordance with Section 135 of the Act.

6. The Company has a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company appoints independent consultants for conducting a Transfer Pricing Study to determine whether the transactions with associate enterprises are undertaken, during the financial year, on an "arm''s length basis". Adjustments, if any, arising from the transfer pricing study shall be accounted for as and when the study is completed for the current financial year. However, the management is of the opinion that its international and domestic transactions are at arm''s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

7. Previous year figures have been reclassified to conform to this year''s classification.


Mar 31, 2014

1. General Information

Motherson Sumi Systems Limited is incorporated in India on 19th December, 1986 and is engaged primarily in the manufacture and sale of components to automotive original equipment manufacturers. The Company has manufacturing plants in India and sells primarily in India, Europe and Japan. The Company is a public limited company and is listed on the Bombay Stock Exchange, National Stock Exchange, Ahmedabad Stock Exchange and Delhi Stock Exchange. The Company is a joint venture entity between Samvardhana Motherson International Limited and Sumitomo Wiring Systems Limited, Japan.

2. Related Party Disclosures

Related party disclosures, as required by AS18, "Related Party Disclosures", are given below:

Relationships where control exists: Subsidiaries of the Company:

MSSL Mauritius Holdings Limited

MSSL Mideast (FZE)

MSSL Ireland Pvt. Limited

MSSL Handels GmbH "in Liqu."

Motherson Electrical Wires Lanka Pvt. Ltd.

MSSL Tooling (FZE)

MSSL (S) Pte Ltd.

MSSL (GB) Limited

Motherson Wiring System (FZE)

MSSL GmbH

MSSL Polymers GmbH (till 26.08.2013 - merged with MSSL GmbH)

MSSL Advanced Polymers s.r.o

Motherson Orca Precision Technology GmbH

MSSL s.r.l Unipersonale

Samvardhana Motherson Invest Deutschland GmbH

Motherson Techno Precision México, S.A. de C.V (incorporated on April 9, 2013)

MSSL Australia Pty Ltd

Motherson Elastomers Pty Limited

Motherson Investments Pty Limited

Global Environment Management (FZC)

Global Environment Management Australia Pty Limited.

MSSL Global RSA Module Engineering Limited

MSSL Japan Limited

Vacuform 2000 (Proprietary) Limited.

MSSL México, S.A. De C.V.

MSSL WH System (Thailand) Co., Ltd

MSSL Korea WH Limited

MSSL Automobile Component Ltd.

Samvardhana Motherson Polymers Ltd.

Samvardhana Motherson Global Holdings Ltd.

Samvardhana Motherson Refl ectec Group Holdings Limited

SMR Automotive Holding Hong Kong Limited

SMR Automotive Technology Holding Cyprus Ltd.

SMR Automotive Mirror Systems Holding Deutschland GmbH

SMR Poong Jeong Automotive Mirrors Korea Ltd.

SMR Hyosang Automotive Ltd.

SMR Automotive (Langfang) Co. Ltd.

SMR Holding Australia Pty Limited

SMR Automotive Australia Pty Limited

SMR Automotive Mirror Technology Hungary Bt

SMR Grundbesitz GmbH & Co. KG

SMR Automotive Mirror Parts and Holdings UK Ltd.

SMR Automotive Mirrors UK Limited

SMR Automotive Services Portchester Ltd. (till 09.07.2013)

SMR Automotive Technology Valencia S.A.U.

SMR Automotive Mirrors Services UK Ltd.

SMR Automotive Technology Holdings USA Partners (till- 31.03.2014 - dissolved)

SMR Automotive Mirror International USA Inc.

SMR Automotive Systems USA Inc.

SMR Automotive Systems France S. A.

SMR Automotive Systems India Limited

SMR Automotive Yancheng Co. Limited

SMR Automotive Beijing Company Limited

SMR Automotive Mirror Technology Holding Hungary Kft

SMR Automotive Systems Spain S.A.U.

SMR Automotive Vision Systems Mexico S.A. de C.V.

SMR Automotive Servicios Mexico S.A. de C.V.

SMR Automotive Mirrors Stuttgart GmbH

SMR Patents S.aR.L.

SMR Automotive Beteiligungen Deutschland GmbH

SMR Automotive Brasil Ltda.

SMR Automotive System (Thailand) Limited

SMR Automotives Systems Macedonia Dooel Skopje

SMR Automotive Operations Japan K.K.

SMR Automotive Vision System Operations USA INC (Incorporated on 17.03.2014)

SMR Mirror UK Limited (Incorporated on 19.03.2014)

Samvardhana Motherson B.V.

Samvardhana Motherson Peguform GmbH

SMP Deutschland GmbH

SMP Logistik Service GmbH (earlier known as SMP Automotive Solutions

Personalleasings GmbH)

SMP Automotive Solutions Slovakia s.r.o

Changchun Peguform Automotive Plastics Technology Co. Ltd

SMP Automotive Technology Management Services (Changchun) Co. Ltd.

SMP Automotive Technology Iberica S.L

Samvardhana Motherson Peguform Barcelona S.L.U (Earlier known as Peguform Module

Division Iberica Cockpits S.L.)

SMP Automotive Technologies Teruel Sociedad Limitada

Samvardhana Motherson Peguform Automotive Technology Portugal S.A

PAINTYES – Sociedade Portuguesa de Pintura, S.A. (till- 30.12.2013- merged with SMP

Automotive Technology Portugal S.A.)

SMP Automotive Systems Mexico S.A. de C.V

SMP Tecnologia Parachoques S.A. de C.V.

SMP Shock Absorber Fabrication Mexico S.A. de C.V

SMP Automotive Produtos Automotivos do Brasil Ltda.

Foshan Peguform Automotive Plastics Technology Co. Ltd.

SMP Exterior Automotive GmbH (incorporated on 31.05.2013)

SMP Automotive Interiors (Beijing) Co. Ltd (incorporated on 31.03.2014)

II. Other Related Parties

a. Joint Ventures:

Kyungshin Industrial Motherson Limited

Woco Motherson Elastomer Limited

Woco Motherson Advanced Rubber Technologies Limited

Woco Motherson Limited (FZC) (Indirectly through Subsidiary)

Calsonic Kansei Motherson Auto Products Limited

Ningbo SMR Huaxiang Automotive Mirrors Co. Limited(Indirectly through Subsidiary)

Chongqing SMR Huaxiang Automotive Products Limited (w.e.f. 08.08.2013) (Indirectly through Subsidiary)

Celulosa Fabril (Cefa) S.A. (Zaragoza, ES) (Indirectly through Subsidiary)

Modulos Rivera Alta S.L.U. (Indirectly through Subsidiary)

Samvardhana Motherson Nippisun Technology Ltd (w.e.f. 11.09.2013)

Eissmann SMP Automotive Interieur Slovensko s.r.o. (w.e.f. 31.03.2014)

b. Associate Companies:

Saks Ancillaries Limited

Re-time Pty. Limited

c. Key Management Personnel:

i) Board of Directors:

Mr. V. C. Sehgal

Mr. Laksh Vaaman Sehgal

Mr. Toshimi Shirakawa

Maj. Gen. Amarjit Singh (Retd.)

Mr. Arjun Puri

Mr. Pankaj Mital

Mr. S C Tripathi, IAS (Retd.)

Mr. Gautam Mukherjee

Ms. Geeta Mathur (w.e.f. 31.01.2014)

Ms. Noriyo Nakamura (w.e.f. 31.01.2014)

Mr. Hideaki Ueshima (till- 23.12.2013)

Mr. S.P. Talwar (till- 23.05.2013)

ii) Other Key Management Personnel:

Mr. G.N. Gauba Mr. Sanjay Mehta

iii) Relatives of Key Management Personnel:

Ms. Renu Sehgal (Wife of Mr.V.C.Sehgal)

Ms. Vidhi Sehgal (Daughter of Mr.V.C.Sehgal)

Ms. Geeta Soni (Sister of Mr.V.C. Sehgal)

Ms. Neelu Mehra (Sister of Mr.V.C. Sehgal)

Ms. Samriddhi Sehgal (Wife of Mr. Laksh Vaaman Sehgal)

d. Companies in which Key Managerial Personnel or their relatives have control/ Significant infl uence:

Motherson Auto Limited

Motherson Air Travel Agencies Limited

Ganpati Auto Industries (Partnership Firm)

Southcity Motors Limited

Motherson Techno Tools Limited

Motherson Techno Tools Mideast (FZE)

SWS India Management & Support Service (P) Limited

Vaaman Auto Industry (Partnership Firm)

Motherson Sumi INfotech and Designs Limited

Motherson Engineering Research and Integrated Technologies Limited

Moon Meadows Private Limited

Sisbro Motor and Workshop Private Limited

NACHI Motherson Tool Technology Limited

Motherson (Partnership Firm)

Samvardhana Motherson International Limited (also a joint venturer)

A Basic Concepts Design Pty. Limited

ATAR Mauritius Private Limited

Motherson Auto Solutions Limited

Motherson Machinery and Automations Limited

Spheros Motherson Thermal System Limited

Matsui Technologies India Limited

Motherson Moulds and Diecasting Limited

Anest Iwata Motherson Limited

Field Motor Limited

AES (India) Engineering Limited

Motherson Auto Engineering Service Ltd

Anest Iwata Motherson Coating Equipment Limited

Nissin Advanced Coating Indo Co. Limited.

Magnetti Marelli Motherson Holding India BV

Magnetti Marelli Motherson Auto System Limited

Samvardhana Motherson Finance Services Cyprus Limited

Motherson Zanotti Refrigeration System Limited

Samvardhana Motherson Virtual Analysis Ltd.

Tigers Connect Travel Systems and Solutions Limited

Samvardhana Motherson Holding (M) Private Limited.

Motherson Advanced Tooling Solutions Limited

SCCL Infra Projects Limited

Fritzmeier Motherson Cabin Engineering Limited.

Air Factory Energy Limited

CTM India Limited.

MSID U.S. Inc.

Motherson Consultancies Service Limited (earlier known as Motherson Climate System Ltd.)

Spirited Auto Cars (I) Limited

Motherson Lease Solution Limited (formerly Style Motors Limited)

Systematic Conscom Limited

MAS Middle East Ltd. (FZE)

Nachi Motherson Precision Ltd.

Motherson Bergstrom HVAC Solutions Private Limited

Motherson Sintermetal Technology Limited

Advanced Technologies and Auto Resources Pte. Ltd.

Edcol Global Pte. Limited

Motherson Innovative Technologies and Research

Radha Rani Holdings Pte Ltd.

Sehgals Trustee Company Private Limited (incorporated on 20.03.2014)

Nirvana Agro Products Private Limited (incorporated on 22.01.2014)

e. Joint Venturer:

Sumitomo Wiring Systems Limited, Japan

Kyungshin Corporation, Korea

Woco Franz Josef Wolf Holding GmbH, Germany

Calsonic Kansei Corporation, Japan

E-Compost Pty. Limited, Australia

Dremotech GmbH & Co. KG., Germany

Cross Motorsport Systems AG

Blanos Partners S.L.

Changshu Automobile Interior Decoration Co., Ltd.

Ningbo Huaxiang Electronic Co., Ltd.

Eissmann Automotive Slovensko s.r.o.

3. Leases

As a lessee:

(i) Operating Lease

The Company has Significant operating leases for premises. These lease arrangements range for a period between 11 months and 10 years, which include both cancellable and non-cancellable leases. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses.

4. SEGMENT REPORTING

The Company has considered the business segment as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and services. Consequently, the geographical segment has been considered as a secondary segment.

The business segment have been identified on the basis of the nature of products and services, the risks and returns, internal organisation and management structure and the internal performance reporting systems.

The business segment comprise of the following:

Segments Products categories in respective segments

Automotive Wiring Harness, High Tension Cords, Wire, Plastic Components, Rubber Components, Cockpit Assembly,

Mould for wiring harness components and mould parts, plastic moulded components and brass terminals Non Automotive Wiring Harness, Plastic Components for white goods, Household Wires, Plates, Aerobin

Geographical segment is considered based on sales within India and outside India

5. The Company has a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company appoints independent consultants for conducting a Transfer Pricing Study to determine whether the transactions with associate enterprises are undertaken, during the fi nancial year, on an "arms length basis". Adjustments, if any, arising from the transfer pricing study shall be accounted for as and when the study is completed for the current financial year. However, the management is of the opinion that its international and domestic transactions are at arm''s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

6. Previous year figures have been reclassified to conform to this year''s classification.


Mar 31, 2013

1. General Information

Motherson Sumi Systems Limited is incorporated in India on 19th December, 1986 and is engaged primarily in the manufacture and sale of components to automotive original equipment manufacturers. The Company has manufacturing plants in India and sells primarily in India, Europe and Australia. The Company is a public limited company and is listed on the Bombay Stock Exchange, National Stock Exchange, Ahmadabad Stock Exchange and Delhi Stock Exchange. The Company is a joint venture entity between Samvardhana Motherson International Limited and Sumitomo Wiring Systems Limited, Japan.

2. Contingent Liabilities

As At As At March 31, 2013 March 31, 2012

Claims against the Company not acknowledge as debts

A) Excise Matters 50 53

B) Sales Tax Matters 60 48

C) Entry Tax Matters - 1

D) Service Tax Matters 29 21

E) Stamp Duty 5 5

F) Claims Made by Workmen 9 13

G) Income Tax Matters 32 42

(a) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings.

(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.

3. During previous year, the Hon''ble High Court of Delhi had approved a Scheme of Amalgamation of Sumi Motherson Innovative Engineering Limited (SMIEL) and wholly owned subsidiaries namely, India Nails Manufacturing Limited (INML) and MSSL Global Wiring Limited (MGWL) with the Company with effect from April 1, 2011. Pursuant to the Scheme the Company has issued 4,420,360 new shares to the shareholders of SMIEL on April 23, 2012, thereby increasing its equity share capital to Rs. 392 Mn. During the previous year, the Company had accounted for the Scheme and accordingly disclosed the amount of share capital to be issued in consideration as Share Capital Suspense Account.

Further, the preference shares of SMIEL amounting to Rs. 100 Mn were redeemed on March 28, 2012.

4. Related Party Disclosures

Related party disclosures, as required by AS18, "Related Party Disclosures", are given below:

I Relationships where control exists:

Subsidiaries of the Company:

MSSL Mauritius Holdings Limited

MSSL Mideast (FZE)

MSSL Ireland Pvt. Limited

MSSL Handels GmbH

Motherson Electrical Wires Lanka Pvt. Ltd.

MSSL Tooling (FZE)

MSSL (S) Pte Ltd.

MSSL GmbH MSSL Polymers GmbH

Samvardhana Motherson Invest Deutschland GmbH

MSSL Advanced Polymers s.r.o.

MSSL (GB) Limited

Global Environment Management (FZC)

Global Environment Management Australia Pty Limited

Motherson Wiring System (FZE)

MSSL Australia Pty Ltd

Motherson Elastomers Pty Limited

Motherson Investments Pty Limited

Motherson Orca Precision Technology GmbH

MSSL s.r.l Unipersonale

MSSL Global RSA Module Engineering Limited

MSSL Japan Limited

Samvardhana Motherson Global Holdings Ltd.

Samvardhana Motherson Reflectec Group Holdings Limited

SMR Automotive Holding Hong Kong Limited

SMR Automotive Technology Holding Cyprus Ltd.

SMR Automotive Mirror Systems Holding Deutschland GmbH

SMR Poong Jeong Automotive Mirrors Korea Ltd.

SMR Hyosang Automotive Ltd.

SMR Holding Australia Pty Limited

SMR Automotive Australia Pty Limited

SMR Automotive Taree Pty Limited (deleted on 22.05.2012 due to deregistred)

SMR Automotive Mirror Technology Hungary Bt

SMR Grundbesitz GmbH & Co. KG

SMR Automotive Mirror Parts and Holdings UK Ltd.

SMR Automotive Services Portchester Limited (formerly Portchester Limited)

SMR Automotive Mirrors UK Limited

SMR Automotive Technology Valencia S.A.U. (formerly Visiocorp Automotive Valencia S.A.U.)

SMR Automotive Mirror Services UK Ltd.

SMR Automotive Technology Holdings USA Partners

SMR Automotive Mirror International USA Inc.

SMR Automotive Systems USA Inc.

SMR Automotive Systems France S. A.

SMR Automotive Systems India Limited

SMR Automotive Yancheng Co. Limited

SMR Automotive Beijing Company Limited

SMR Automotive Mirror Technology Holding Hungary Kft

SMR Automotive Systems Spain S.A.U.

SMR Automotive Vision Systems Mexico S.A. de C.V.

SMR Automotive Servicios Mexico S.A. de C.V.

SMR Automotive Mirrors Stuttgart GmbH

SMR Patents S.aR.L.

SMR Automotive Beteiligungen Deutschland GmbH

SMR Automotive Brasil Ltda.

SMR Automotive System (Thailand) Limited

SMR Automotives Systems Macedonio Dooel Skopje

SMR Automotive Operations Japan K.K.

MSSL Automobile Component Ltd

Samvardhana Motherson Polymers Ltd.

Vacuform 2000 (Pty) Ltd.

MSSL Mexico, S.A. De C.V.

Samvardhana Motherson B.V.Netherland

Samvardhana Motherson Peguform GmbH (earlier known as Forgu GmbH, Germany)

SMP Deutschland GmbH (formerly known as Peguform GmbH)

Purpurin Grund stuecksverwaltungsgesellschaft mbH & Co. Vermietungs KG

SMP Automotive Solutions Personalleasings GmbH (Formerly known as Peguform Personaleasing GmbH)

SMP Automotive Solutions Slovakia sro (earlier known as Peguform Slovakia sro).

SMP Automotive Technology Management Services (Chanchun) Co. Ltd. (formerly known as Peguform Corporate Management Services (Chanchun) Co. Ltd.).

SMP Automotive Technology Iberica S L (earlier known as Pegurform Iberica S L)

Peguform Module Division Iberica Cockpits S.L.

SMP Automotive Technologies Teruel S. L. (formerly Peguform de Teruel S.L.)

Celulosa Fabril (Cefa) S.A. (Zaragoza, ES) Chanchun Peguform Automotive Plastics Technology Co. Ltd (Held by SMP Deutschland GmbH)

Samvardhana Motherson Peguform Automotive Technology Portugal S.A. (formerly Peguform Portugal S.A.)

SMP Automotive Systems Mexico S A De CV

SMP Tecnologia Parachoques S.A. de C.V. (formerly known as Fabrica de Parachoques de Mexico S.A. de C.V.)

SMP Shock Absorber Fabrication Mexico S.A. de C.V. (formerly known as Shock Absorb de Mexico S.A de C.V)

SMP Produtos Automotivos do Brasil Ltda. (formerly Peguform do Brasil Ltda.)

MSSL WH System (Thailand) Co, Ltd (incorporated on April 12, 2012)

MSSL Korea WH Limited (incorporated on December 5, 2012)

PAINTYES - Sociedade Portuguesa de Pintura, S A Foshan Peguform Automotive Plastics Technology Co Ltd

II. Other Related Parties

a. Joint Ventures:

Kyungshin Industrial Motherson Limited

Woco Motherson Elastomer Limited

Woco Motherson Advanced Rubber Technologies Limited

Woco Motherson Limited (FZC) (Indirectly through subsidiary)

Calsonic Kansei Motherson Auto Products Limited

Ningbo SMR Huaxiang Automotive Mirrors Co. Limited (Indirectly through subsidiary)

Celulosa Fabril S.A. (Indirectly through subsidiary)

Modulos Rivera Alta S.L.U. (Indirectly through subsidiary)

b. Associate Companies:

Saks Ancillaries Limited

Die Wethje GmbH Kunststofftechnik (Indirectly through subsidiary) Upto October 29, 2012

Wethje Carbon Composite GmbH (Indirectly through subsidiary) Upto October 29, 2012

Wethje Entwicklungs GmbH (Indirectly through subsidiary) Upto October 29, 2012

Re time Pty Limited (Indirectly through subsidiary)

c. Key Management Personnel:

i) Board of Directors:

Mr. V. C. Sehgal

Mr. Laksh Vaaman Sehgal

Mr. Toshimi Shirakawa

Mr. Hideaki Ueshima

Mr. Hiroto Murai (regigned on July 2, 2012)

Maj. Gen. Amarjit Singh (Retd.)

Mr. Pankaj Mital

Mr. Arjun Puri

Mr. M. S. Gujral (Late) (cessation due to death on May 4, 2012)

Mr. S P Talwar (Appointed on September 10, 2012)

Mr. S C Tripathi, IAS (Retd.) (Appointed on September 10, 2012)

Mr. Gautam Mukherjee (Appointed on September 10, 2012)

ii) Other Key Management Personnel:

Mr. G.N. Gauba

Mr. Sanjay Mehta

iii) Relatives of Key Management Personnel:

Ms. Renu Sehgal (Wife of Mr. V.C. Sehgal)

Ms. Vidhi Sehgal (Daughter of Mr. V.C. Sehgal)

Ms. Geeta Soni (Sister of Mr. V.C. Sehgal)

Ms. Nilu Mehra (Sister of Mr. V.C. Sehgal)

d. Companies in which Key Managerial Personnel or their relatives have control/ significant in%uence:

Motherson Auto Limited

Motherson Air Travel Agencies Limited

Ganpati Auto Industries

South City Motors Limited

Motherson Techno Tools Limited

Motherson Techno Tools Mideast (FZE)

SWS India Management Support & Service (P) Limited

Vaaman Auto Industries

A Basic Concepts Design India Private Limited

Motherson Sumi Infotech and Designs Limited

Motherson Engineering Research and Integrated Technologies Limited

Moon Meadows Private Limited

Sis Bro Motor and Workshop Private Limited

NACHI Motherson Tool Technology Limited

Motherson

Samvardhana Motherson International Limited (formerly Samvardhana Motherson Finance Limited) (also a joint venturer)

A Basic Concepts Design Pty Limited

ATAR Mauritius Private Limited

Motherson Auto Solutions Limited

Motherson Machinery and Automations Limited

Spheros Motherson Thermal Systems Limited

Matsui Technologies India Limited

Motherson Moulds and Diecasting Limited

Anest Iwata Motherson Limited

Field Motor Limited

AES (India) Engineering Limited

Motherson Auto Eng. Service Ltd (formerly Miyazu Motherson Eng. Design Ltd.)

Anest Iwata Motherson Coating Equipment Limited

Nissin Advance Coating Indo Company Limited

Magnetti Marelli Motherson Holding India B.V.

Magnetti Marelli Motherson Auto System Limited

Samvardhana Motherson Finance Services Cyprus Limited

Motherson Zanotti Refrigeration System Limited

Samvardhana Motherson Virtual Analysis Ltd.

Samvardhana Motherson Finance services Inc.

Tigers Connect Travel Systems and Solutions Limited

Samvardhana Motherson Holding (M) Private Limited.

Motherson Advanced Tooling Solutions Limited

SCCL Infra Projects Limited

Fritzmeier Motherson Cabin Engineering Limited.

Air Factory Energy Limited

CTM India Limited.

MSID U.S. Inc

Motherson Climate System Ltd.

Spirited Auto Cars (I) Limited

Motherson Lease Solution Limited (formerly Style Motors Limited)

Systematic Conscom Limited

MAS Middle East Ltd. (FZE)

Motherson Bergstrom HVAC Solutions Pvt. Ltd.

NACHI Motherson Precision Ltd.

Motherson Sintermetal Technology Limited

Samvardhana Motherson Nippisun Technology Limited

Advanced Technologies and Auto Resources Pte. Ltd.

Edcol Global Pte. Limited

Motherson Innovative Technologies and Research

Radha Rani Holdings Pte Ltd

e. Joint Venturer:

Sumitomo Wiring Systems Limited, Japan

Kyungshin Corporation, Korea

Woco Franz Josef Wolf Holding GmbH, Germany

Calsonic Kansei Corporation, Japan

Ningbo Huaxiang Electronic Co., Ltd

E-Compost Pty. Limited, Australia

Dremotech GmbH & Co. KG., Germany

Cross Motorsport Systems AG

Blanos Partners S.L.

Changshu Automobile Interior Decoration Co., Ltd

5. Leases

As a lessee:

(i) Operating Lease

The Company has significant operating leases for premises. These lease arrangements range for a period between 11 months and 10 years, which include both cancellable and non cancellable leases. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses. The Company has entered into some sub-leases and all such subleases are cancellable and are for a period of 11 months, with an option of renewal on mutually agreeable terms.

6. SEGMENT REPORTING

The Company has considered the business segment as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and services. Consequently, the geographical segment has been considered as a secondary segment.

The business segment have been identified on the basis of the nature of products and services, the risks and returns, internal organisation and management structure and the internal performance reporting systems.

7. The Company has a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company appoints independent consultants for conducting a Transfer Pricing Study to determine whether the transactions with associate enterprises are undertaken, during the financial year, on an "arms length basis". Adjustments, if any, arising from the transfer pricing study shall be accounted for as and when the study is completed for the current financial year. However, the management is of the opinion that its international and domestic transactions are at arm''s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

8. Previous year figures have been reclassified to conform to this year''s classification.


Mar 31, 2010

1. Contingent Liabilities

(Figures in Rs. Thousands)

As at As at

March 31, 2010 March 31, 2009

a) In respect of Excise 8,842 13,803

b) In respect of Customs - 444

c) In respect of Entry Tax 8,186 8,186

d) In respect of Sales Tax 18,781 13,505

e) In respect of Service Tax 6,240 4,581

f) In respect of Stamp Duty 4,754 4,754

g) In respect of Income Tax 2,185 3,557

h) In respect of Labour Cases 17,005 15,850

i) The Company has given corporate guarantee in respect of :

- Subsidiary Companies 2,164,243 1,117,221

j) Bank Guarantees / Letter of Credit furnished by the Company 199,715 59,174

2 Excludes interest

Further, in respect of certain subsidiary companies, the Company has furnished letter of support to enable the said companies continue the operations.

The amount shown in items "a to h" above represents the best possible estimates arrived at on the basis of available information. The uncertainty and possible reimbursement are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately.

3. Issue of Zero Coupon Convertible Bonds

During the year ended March 31, 2006, the Company issued Euro 50,300,000 Zero Coupon Convertible Bonds due 2010 (the "Bonds"). These Bonds are listed in the Singapore Exchange Securities Trading Limited (the "SGX-ST").The Bonds are convertible at the option of the holder at any time on or after August 24, 2005 (or such earlier date as is notified to the holders of the Bonds by the Company) upto July 6, 2010 into fully paid equity shares with full voting rights at par value of Re. 1.00 each of the Issuer ("Shares") at an initial Conversion Price (as defined in the "Terms & Conditions of the Bonds") of Rs. 74.32 per Share with a fixed rate of exchange on conversion of Rs. 52.01 = Euro 1.00. The Conversion Price is subject to adjustment in certain circumstances.

The Bonds may also otherwise be redeemed, in whole or in part, at the option of the Issuer, at any time on or after July 15, 2008 and prior to July 7, 2010 subject to satisfaction of certain conditions and at their "Early Redemption Amount" (as defined in the "Terms & Conditions of the Bonds") at the date fixed for such redemption if the "Closing Price" (as defined in the "Terms & Conditions of the Bonds") of the Shares translated into Euro at the "prevailing rate" (as defined in the "Terms & Conditions of the Bonds") for each of 20 consecutive "Trading Days" (as defined in the "Terms & Conditions of the Bonds") the last of which occurs not more than five days prior to the date upon which notice of such redemption is published, is greater than 130 per cent, of the "Conversion Price" (as defined in the "Terms & Conditions of the Bonds") then in effect translated into euro at the rate of Rs. 52.01 = Euro 1.00.

The Bonds may also be redeemed, in whole, but not in part, at any time at the option of the Issuer at their Early Redemption Amount, if less than 10 per cent, in aggregate, principal amount of the Bonds originally issued is outstanding.

The Bonds may also be redeemed in whole, but not in part, at the option of the Issuer subject to satisfaction of certain conditions including obtaining Reserve Bank of India ("RBI") approval, at their Early Redemption Amount, on the date fixed for redemption in the event of certain changes relating to taxation in India.

Unless previously redeemed, converted or purchased and cancelled, the Bonds will be redeemed by the Issuer in Euros on July 16, 2010 at 126.77 per cent of its principal amount.

The issuer will, at the option of any holder of any Bonds, repurchase at the Early Redemption Amount such Bonds at such time as the Shares cease to be listed or admitted to trading on the BSE and the NSE (as defined in the "Terms & Conditions of the Bonds") in respect of the Issuer.

Consequent to the exercise of conversion option by holders of bonds of face value Euro 27.2 million, the Company has allotted 19,040,000 equity shares during the year. Accordingly, an amount of Rs. 1,989.29 million, being the excess of the liabilities (including amortised premium/ issue expenditure on such bonds upto the date of conversion) extinguished in respect of such bonds over the face value of shares issued, has been credited to securities premium account.

The outstanding balance of FCCB as on March 31, 2010 is Euro 18.5 million. Subsequent to the year end, the Company has received notices for exercise of conversion option by holders of bonds of face value Euro 13 million.

4 Revised from Rs. 111.45, in accordance with the terms of issue, consequent to the issue of bonus shares by the Company.

5. As per information available with the management, the dues payable to enterprises covered under "The Micro, Small and Medium Enterprises Development Act, 2006" aggregate to Rs. 9,609 thousand (Previous year Rs. 2,403 thousand). This has been determined on the basis of responses received from vendors on specific confirmation sought by the Company in this regard.

Further, as determined by the management, there is no interest paid/ payable to such enterprises.

5. i) On June 29, 2009 The Company has purchased the minority interest of 43.87% in its subsidiary Motherson PUDENZ WICKMANN Limited for Rs. 18,011 thousand.

ii) The Company, subsequent to the year end has entered into an agreement to acquire the 60% stake held by Balda AG, its joint venture partner, in Balda Motherson Solution India Limited (BMSI). Upon transfer of shares, BMSI will become a 100 % owned subsidiary, which will thereafter be merged with the Company in due course.

iii) During the year the company has made a provision for diminution in the value of its investment amounting to Rs. 90,000 thousand and Rs. 110,000 thousand, in view of the continued losses incurred, on account of Balda Motherson Solution India Limited and MSSL Mauritius Holdings Limited, respectively.

6. The Company has the following unhedged foreign currency exposure:

7. The details of liabilities recognised by the Company in respect of long term defined benefits and contribution schemes in accordance with Accounting Standard 15 (Revised 2005) for its employees are as under:

(A) Defined Benefit Schemes

(i) Gratuity

The employees are entitled to gratuity that is computed as half-months salary, for every completed year of service and is payable on retirement/termination. The Company makes provision of such gratuity liability in the books of accounts on the basis of actuarial valuation. The Company pays contribution to Life Insurance Corporation of India to fund its plan.

(ii) Leave encashment /Compensated Absences

The employees are entitled for leave for each year of service and part thereof and subject to the limits specified, the un-availed portion of such leaves can be accumulated or encashed during / at the end of the service period. The plan is not funded.

(B) Defined Contribution Schemes

The Company deposits an amount determined at a fixed percentage of basic pay every month to the State administered Provident Fund and Employee State Insurance (ESI) for the benefit of the employees. Accordingly, the Companys contribution during the year that has been charged to revenue amounts to Rs. 98,535 thousand (Previous Year Rs. 82,123 thousand).

8. Related Party Disclosures

Related party disclosures, as required by AS18, "Related Party Disclosures", are given below:

I Relationships where control exists:

Subsidiaries of the Company: MSSL Mideast (FZE) MSSL Mauritius Holdings Limited MSSL Ireland PrivateLimited MSSL Handels GmbH Motherson Electrical Wires Lanka Private Limited MSSL (S) Pte Limited Motherson Tradings Limited (formerly Motherson PUDENZ WICKMANN Limited) MSSL (GB) Limited MSSL GmbH Motherson Sumi Wiring System Limited (FZC) MSSL Tooling (FZE) Global Environment Management (FZC) MSSL Australia Pty Limited Motherson Elastomers Pty Limited Motherson Investments Pty Limited Mothersonsumi Reiner GmbH MSSL Polymers GmbH Global Environment Management Australia Pty. Limited MSSL Advanced Polymers s.r.o Motherson Orca Precision Technology GmbH MSSL Global Wiring Limited MSSL s.r.l. Unipersonale MSSL Global RSA Module Engineering Limited (formerly Golden Dividend 629 Limited) Samvardhana Motherson Global Holdings Ltd. Samvarhana Motherson Reflectec Group Holdings Limited (formerly Samvardhana Motherson Visiocorp Solution Limited) SMR Automotive Holding Hong Kong Limited (formerly Elemental Growth Limited) SMR Automotive Technology Holding Cyprus Ltd. (formerly Horizonfield Limited)

SMR Automotive Mirror Systems Holding Deutschland GmbH (formerly Visiocorp Holding Germany GmbH)

SMR Automotive Parts GmbH (formerly Visiocorp Automotive GmbH)

SMR Poong Jeong Automotive Mirrors Korea Ltd. (formerly Visiocorp Poong Jeong Co Limited)

SMR Hyosang Automotive Ltd. (formerly Visiocorp Hyosang Limited)

SMR Holding Australia Pty Limited (formerly Visiocorp Holding Australia Pty Limited)

SMR Automotive Australia Pty Limited (formerly Visiocorp Australia Pty Limited)

SMR Automotive Taree Pty Limited (formerly Visiocorp Taree Pty Limited)

SMR Automotive Mirror Technology Hungary Bt (formerly Visiocorp Hungary BT)

SMR Grundbesitz GmbH & Co. KG (formerly Visiocorp Grundbesitz GmbH & Co. KG)

SMR Automotive Services GmbH (formerly Visiocorp Group Services GmbH)

SMR Automotive Mirror Parts and Holdings UK Ltd. (formerly Visiocorp Management UK Limited)

Portchester Limited

SMR Automotive Mirrors UK Limited (formerly Visiocorp UK Limited)

Visiocorp Automotive Valencia S.A.U.

SMR Automotive Services UK Ltd. (formerly Visiocorp Services UK Limited)

SMR Automotive Technology Holdings USA Partners (formerly Visiocorp Holding USA LLP)

SMR Automotive Mirror International USA Inc.(formerly Visiocorp International USA Inc.)

SMR Automotive Systems USA Inc. (formerly Visiocorp USA Inc.)

SMR Automotive Systems France S. A. (formerly Visiocorp France S.A.)

SMR Automotive Systems India Limited (formerly Visiocorp Motherson Limited)

SMR Automotive Yancheng Co. Limited (formerly Visiocorp Automotive Yancheng Co Limited)

SMR Automotive Beijing Company Limited (formerly Visiocorp Automotive Beijing Co Limited)

SMR Automotive Mirror Technology Holding Hungary Kft (formerly Visiocorp Holding Hungary KFT)

SMR Automotive Systems Spain S.A.U. (formerly Visiocorp Espana S.A.U. )

SMR Automotive Vision Systems Mexico S.A. de C.V. (formerly Visiocorp Mexico S.A. de C.V.)

SMR Automotive Servicios Mexico S.A. de C.V. (formerly Visiocorp Servicios S.A. de C.V.)

SMR Automotive Mirrors Stuttgart GmbH (formerly Visiocorp Verwaltungsgesellschaft GmbH)

SMR Automotive Patents S.aR.L. (formerly Visiocorp Patents SARL)

SMR Automotive Beteiligungen Deutschland GmbH (formerly Visiocorp Beteiligungs GmbH)

SMR Automotive Brasil Ltda.

II. Other Related Parties

a. Joint Ventures:

Kyungshin Industrial Motherson Limited

Balda Motherson Solution India Limited

Woco Motherson Elastomer Limited

Woco Motherson Advanced Rubber Technologies Limited

Woco Motherson Limited (FZC)

Calsonic Kansei Motherson Auto Product Limited

Ningbo Visiocorp Huaxiang Automotive Mirrors Co. Limited

b. Associate Companies: Saks Ancillaries Limited

c. Key Management Personnel:

i) Board of Directors:

Mr. V.C. Sehgal

Mr. Laksh Vaaman Sehgal (w.e.f. April 30, 2009)

Mr. Toshimi Shirakawa

Mr. Toshihiro Watanabe

Mr. M.S. Gujral

Mr. Bimal Dhar

Mr. H. Murai

Maj. Gen Amarjit Singh (Retd)

Mr. Pankaj Mital

Mr. Arjun Puri

Mr. Toshihide Ano

ii) Other Key Management Personnel:

Mr. Vivek Avasthi

Mr. Ravindra Mathur

Mr. G.N. Gauba

Mr. N Ramanathan

Mr. Sanjay Mehta

iii) Relatives of Key Management Personnel:

Ms. Renu Sehgal

Ms. Vidhi Sehgal

Ms. Geeta Soni

Ms. Neelu Mehra

Ms. Padma Avasthi

Mr. Harjit Singh

Ms. Upkar Gujral

Ms. Subina Avasthi

d. Companies in which Key Managerial Personnel or their relatives have control/ significant influence:

Motherson Auto Limited

Motherson Air Travel Agencies Limited

Ganpati Auto Industries

South City Motors Limited

ASI Motherson Communication Solution Limited

Motherson Techno Tools Limited

Motherson Techno Tools Mideast (FZE)

Sumi Motherson Innovative Engineering Limited

SWS India Management Support & Service (P) Limited

Vaaman Auto Industries

A Basic Concepts Design India Private Limited

Motherson Sumi Infotech and Designs Limited

Motherson Engineering Research and Integrated Technologies Limited

Moon Meadows Private Limited

Sis Bro Motor and Workshop Private Limited

Motoman Motherson Robotics Limited

NACHI Motherson Tool Technology Limited

Motherson

Samvardhana Motherson Finance Limited

A Basic Concepts Design Pty Limited

ATAR Mauritius Private Limited

Motherson Auto Solutions Private Limited

Motherson Machinery and Automations Private Limited

Spheros Motherson Thermal System Limited

Matsui Technologies India Limited

Motherson Moulds and Diecasting Limited

Webasto Motherson Sunroofs Limited

Anest Iwata Motherson Limited

Field Motor Private Limited

AES (India) Engineering Limited

Miyazu Motherson Engineering Design Limited

Anest Iwata Motherson Coating Equipment Limited

Nissin Advance Coating Indo Company Limited

Magnetti Marelli Motherson Holding India BV

Magnetti Marelli Motherson Auto System Limited

Samvardhana Motherson Finance Services Cyprus Limited

Motherson Zanotti Refrigeration System Limited

Samvardhana Motherson Virtual Analysis Ltd. (formerly Motherson Timetooth Technologies Ltd)

Samvardhana Motherson Finance Services Inc.

Motherson TimeTooth Technologies Inc.

Tigers Connect Travel Systems and Solutions Limited

Samvardhana Motherson Holding (M) Private Limited

Motherson Advanced Tooling Solutions Limited

Avon Hill Limited

Fritzmeier Motherson Cabin Engineering Limited

Air Factory Energy Limited

CTM India Limited

MSID U.S. Inc

Motherson Climate System Ltd.

Spirited Auto Cars (I) Limited

Style Motors Limited

e. Joint Venturer:

Sumitomo Wiring Systems Limited, Japan

Wilhelm Pudenz GmbH, Germany (Upto June 28, 2009)

Kyungshin Industrial Co., Korea

Woco Franz Josef Wolf Holding GmbH, Germany

Balda AG, Germany

Calsonic Kansei Corporation, Japan

E-Compost Pty. Limited, Australia

Dermotech GmbH, Germany



22. SEGMENT INFORMATION

c) Composition of Business Segments

The Company is organized into two main business segments, namely:

Segments Products categories in respective segments

Automotive Wiring Harness, High Tension Cords, Wires, Plastic Components, Rubber Components, Cockpit Assembly

Non Automotive Wiring Harness, Pen-Stamp Assembly, Plastic Components for white goods, Household Wires, Plates,

d) Inter Segment Transfer Pricing

Inter Segment prices are normally negotiated amongst the segments with reference to the costs, market prices and business risks, with an overall optimisation objective for the Company.

9. The Company has a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company appoints independent consultants for conducting a Transfer Pricing Study to determine whether the transactions with associate enterprises are undertaken, during the financial year, on an "arms length basis". Adjustments, if any, arising from the transfer pricing study shall be accounted for as and when the study is completed for the current financial year. However the management is of the opinion that its international transactions are at arms length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

10. The corresponding figures of previous year have been regrouped, rearranged wherever necessary to conform to the current years classification.

 
Subscribe now to get personal finance updates in your inbox!