ASSIGNMENT OF BUSINESS ETHICS

MARUTI SUZUKI
[Submitted By ]
BABU LAL Branch-IPE 09113011

Maruti Suzuki
Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation, Japan. Maruti Suzuki has been the leader of the Indian car market for over two and a half decades. The company has two manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce over a 1.5 million (1,500,000) vehicles annually. The company plans to expand its manufacturing capacity to 1.75 million by 2013. The Company offers 15 brands and over 150 variants ranging from people's car Maruti 800 to the latest Life Utility Vehicle, Ertiga. The portfolio includes Maruti 800, Alto, Alto K10, A-star, Estilo, WagonR, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Kizashi, Grand Vitara, Gypsy and Ertiga. In an environment friendly initiative, in August 2010 Maruti Suzuki introduced factory fitted CNG option on 5 models across vehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4. With this Maruti Suzuki became the first company in India to introduce factory fitted CNG vehicles. In terms of number of cars produced and sold, the Company is the largest subsidiary of Suzuki Motor Corporation. Cumulatively, the Company has produced over 10 million vehicles since the roll out of its first vehicle on 14th December, 1983. Maruti Suzuki is the only Indian Company to have crossed the 10 million sales mark since its inception. In 2011-12, the company sold over 1.13 million vehicles including 1,27,379 units of exports. The Company employs over 9000 people (as on 31st March, 2012). Maruti Suzuki's sales and service network is the largest among car manufacturers in India. The Company has been rated first in customer satisfaction in the JD Power survey for 12 consecutive years. Besides serving the Indian market, Maruti Suzuki also exports cars to several countries in Europe, Asia, Latin America, Africa and Oceania

Maruti Suzuki's revenue over the years: (Rs. in Million) Year 2006-07 2007-08 2008-09 Net Sales 1,45,922 1,78,603 2,03,583 Year 2009-10 2010-11 2011-12 Net Sales 3,01,198 3,58,490 3,47,059

Current Financial Report

Latest Quarterly/Halfyearly As On(Months) Sales of Products/Services Other Operating Income Other Income Total Income Total Expenses OPBDIT Interest Depreciation Exceptional & Extraordinary Items Prior Period Adjustments Provision for Tax After Tax Profit Equity Capital Reserves Detailed Quarterly 31-Dec-2011(3) 31-Dec-2010(3) % Change 77178.70 1645.30 1603.70 80427.70 74651.90 5775.80 173.50 2989.30 0.00 0.00 556.80 2056.20 1444.60 0.00 93261.30 1683.20 1282.70 96227.20 85926.60 10300.60 3.60 2369.40 0.00 0.00 2275.90 5651.70 1444.60 0.00 -17.24 -2.25 25.03 -16.42 -13.12 -43.93 4719.44 26.16 ---75.53 -63.62 0.00 --

Income Statement As on( Months ) 31-Mar31-Mar31-Mar-

08(12) Profit / Loss A/C Net Sales Operating Income (OI) OPBDIT OPBDT OPBT Non-Operating Income Extraordinary/Prior Period Tax Profit after tax(PAT) Cash Profit Dividend-Equity Balance Sheet As on Assets Gross Block Net Block Capital WIP Investments Inventory Receivables Other Current Assets 31-Mar-08 Rs mn %BT Rs mn %OI

07(12) Rs mn %OI

06(12) Rs mn 120159.00 %OI 97.99

178916.00 97.66 183206.00 100.00 27079.00 14.78 27293.00 14.90 21611.00 11.80 3419.00 -26.00 7696.00 17308.00 1.87 -0.01 4.20 9.45

146963.00 97.93 150064.00 100.00 22960.00 15.30 22490.00 14.99 19776.00 13.18 3022.00 -897.00 6281.00 2.01 -0.60 4.19

122629.00 100.00 19289.00 18685.00 15831.00 1669.00 321.00 5930.00 11891.00 14745.00 1011.00 15.73 15.24 12.91 1.36 0.26 4.84 9.70 12.02 0.82

15620.00 10.41 18334.00 12.22 1300.00 0.87

22990.00 12.55 1445.00 0.79

31-Mar-07 Rs mn %BT

31-Mar-06 Rs mn %BT 64.27 21.99 1.19 26.61 11.43 8.49 30.28

72853.00 58.73 61468.00 59.89 49546.00 32965.00 26.58 26597.00 25.91 16952.00 7363.00 5.94 2389.00 2.33 920.00

51807.00 41.77 34092.00 33.22 20512.00 10380.00 6555.00 8.37 5.28 7132.00 7474.00 6.95 7.28 8812.00 6548.00

14970.00 12.07 24954.00 24.31 23347.00

Balance Sheet Total(BT) 124040.00 100.00 102638.00 100.00 77091.00 100.00 Liabilities Equity Share Capital Reserves Total Debt Creditors and Acceptances Rs mn 1445.00 %BT 1.16 Rs mn 1445.00 %BT 1.41 Rs mn 1445.00 %BT 1.87 68.85 0.93 7.20

82709.00 66.68 67094.00 65.37 53081.00 9002.00 8549.00 7.26 6.89 6308.00 9096.00 6.15 8.86 717.00 5551.00

Other current liab/prov.

22335.00 18.01 18695.00 18.21 16297.00

21.14

Balance Sheet Total(BT) 124040.00 100.00 102638.00 100.00 77091.00 100.00 Ratio Analysis As on OPBIT/Prod.cap.empl.(%) PBIT/Cap. Employed (%) PAT/Networth (%) Tax/PBT (%) Total Debt/Networth (x) Long Term Debt/Networth (x) PBDIT/Finance Charges (x) Current Ratio (x) RM Inventory (days consumption) FG inventory (days cost of sales) Receivables (days gross sales) Creditors (days cost of sales) Op. curr. assets (days OI) 31-Mar-08 63.22 28.90 20.57 30.78 0.11 0.06 -142.39 1.03 10.39 12.64 11.38 19.99 61.00 31-Mar-07 52.77 30.87 22.79 28.68 0.09 0.08 53.37 1.42 12.58 6.45 15.86 26.12 94.00 31-Mar-06 48.61 33.92 21.81 33.28 0.01 0.01 35.23 1.77 12.33 17.16 16.20 19.61 112.00

CSR Polices
"While working to enhance shareholder wealth, Maruti Suzuki will regularly engage with all stakeholders to assess their needs and through its products, services, conduct and management initiatives, promote their sustained growth and well being"

Policy Guidelines
Company will follow responsible business practices in all its functions and operations and will strive to implement them at its suppliers, dealers and other business partners. Company will continue to remain ahead of law in pursuit of environment protection and energy conservation at its manufacturing facilities, and in development of products that use fewer natural resources and are environment friendly. Company will be deeply committed towards the welfare of its employees, their families and communities around its operations to improve quality of life as a whole. Company will develop products and services that fulfills the aspirations of customers,

build a strong and lasting bond with them, proactively support them during natural calamities, delight them with after sales services and availability of spares. Company will continue to provide technological and managerial support to its suppliers and dealers to further their profitable and sustainable growth. As an expression of thanks to the local community and the people of the country Company will undertake initiatives that might not be

directly linked to its business. Company will partner with government, NGOs, business partners to contribute positively towards economic and human development of the society especially underprivileged people. Company will encourage and recognize its employees for volunteering in the community in the spirit of serving and sharing their expertise and skills. Company will strive to constantly build organizational capabilities, like any other competency, position suitable people and have a proper organizational structure to ensure implementation of CSR policy, guidelines and programs. Company will engage with reputed external agencies for audit of its CSR activities for the purpose of identifying areas of improvement, authenticity of data and reporting. Company will monitor the progress on various CSR programs in a structured manner, document the performance against the set targets and publish a report every year on its CSR performance and share with its key stakeholders. Corporate Social Responsibility Maruti Suzuki has adopted a CSR policy, which serves as a guiding tool for the management and the employees in steering Maruti Suzuki towards long term sustained growth in harmony along with the interests of the stakeholder. The role of the CSR department is to professionalize CSR activities in Maruti Suzuki and strengthen the mechanisms involving the activities. Significant efforts have been taken to contribute to society at large, through its corporate activities, especially in the areas of Road Safety and Vocational Training. Maruti Suzuki has set up dedicated teams with requisite expertise to steer the social projects.

CSR Concepts

Maruti Suzuki has adopted a CSR policy, which serves as a guiding tool for the management and the employees in steering Maruti Suzuki towards long term sustained growth in harmony along with the interests of the stakeholder. The role of the CSR department is to professionalize CSR activities in Maruti Suzuki and strengthen the mechanisms involving the activities. Significant efforts have been taken to contribute to society at large, through its corporate activities, especially in the areas of Road Safety and Vocational Training. Maruti Suzuki has set up dedicated teams with requisite expertise to steer the social projects.