undefined share price Management discussions


Global economic scenario

Global growth slowed to 3.2% in 2022, well below expectations at the start of the year, reflecting the effects of Russias war of aggression in Ukraine, the drag on household incomes from high inflation, rising interest rates and continued disruptions in China. More positive signs have now started to appear, with business and consumer sentiment starting to improve, food and energy prices falling back, and the full reopening of China. Headline inflation is declining, but core inflation remains elevated, held up by strong service price increases, higher margins in some sectors and cost pressures from tight labour markets.

The improvement in the outlook is still fragile. Risks have become somewhat better balanced, but remain tilted to the downside. Uncertainty about the course of the war in Ukraine and its broader consequences is a key concern. Global growth is projected to remain at a below-trend rate in 2023-24, with inflation moderating gradually as the quick and synchronized monetary policy tightening over the past year takes full effect. The strength of the impact from monetary policy changes is difficult to gauge and could continue to expose financial vulnerabilities from high debt and stretched asset valuations, and also in specific financial market segments. Pressures in global energy markets could also reappear, leading to renewed price spikes and higher inflation. (Source: OECD Economic Outlook, Interim Report March 2023: A Fragile Recovery)

Major forces that shaped the world economy in 2022 seem set to continue into this year, but with changed intensities. Debt levels remain high, limiting the ability of fiscal policymakers to respond to new challenges. Commodity prices that rose sharply following Russias invasion of Ukraine have moderated, but the war continues, and geopolitical tensions are high. Infectious COVID-19 strains caused widespread outbreaks last year, but economies that were hit hard—most notably China—appear to be recovering, easing supply-chain disruptions. Despite the fillips from lower food and energy prices and improved supply- chain functioning, risks are firmly to the downside with the increased uncertainty from the recent financial sector turmoil. (International Monetary Fund - Economic Outlook: A rocky recovery; April 2023)

Indian economic scenario

Indias gross domestic product (GDP) grew 7.2% during the fiscal year 20222023 (FY23), surpassing the estimate of 7% projected by the Reserve Bank of India (RBI). The latest data released by the National Statistical Office reveals that Indias GDP growth gained momentum in the January-March quarter, with an impressive expansion of 6.1%.

The Gross Value Added (GVA) for Q4 FY23 was at 6.5%, much higher than the consensus estimates of 4.9%. Manufacturing appeared to be in a sweet spot in Q4 FY23 with better-than-expected Q4 corporate earnings, likely on the back of lower input costs. The higher input costs had dragged lower the manufacturing GVA in Q2 and Q3 of FY23, that was not totally passed on to the end users. The robustness in the manufacturing sector is not reflected in a higher private consumption expenditure. The private household spending has been moderating and could moderate further as the lagged impact of the repo rate hikes of the RBI filters through. As a share of GDP, private consumption expenditure was reported

at 55.0% for Q4 FY23, the lowest over seven consecutive previous quarters. Its contribution to GDP is also the lowest since June 2021. With the government continuing to push for capital expenditure through the Budget, for FY24, this would once more remain the principal growth driver for the economy. While there are concerns of exports weakening due to slower global growth, the drag from net trade may not be large as imports are also expected to come lower due to weaker commodity prices.

GDP data suggests that India has emerged stronger from the pandemic than initially assumed, with growth gathering steady momentum since FY 2022-23. The Indian economy has shown incredible tenacity and shown that it can recover in the face of unheard-of difficulties. India has gone through a succession of ups and downs in recent years, including the COVID-19 pandemics effects, economic reforms, and changes in global dynamics. Flowever, it has demonstrated resilience and prospects of a strong recovery despite the COVID-19 Pandemic. A number of causes, including government stimulus programmes, a resurgence in consumer demand, and increasing industry output, are responsible for this recovery. Other factors like governments ‘Atmanirbhar Bharat initiative, which aims to increase Indias self-sufficiency and decrease reliance on imports, has had a considerable impact on how the Indian economy has performed recently. The government has encouraged local manufacturing through programmes like the Production-Linked Incentive (PLI) plan, attracting investments and boosting job creation across all industries.


Global Auto Scenario

Global auto sales posted a volume of 66.9 mn units in 2022; flat from the sales volume of 66.7 mn units posted in 2021. Sales activity had started the year on an upward trend with the seasonally adjusted annualized rate at 67.3 mn units until the Russia-Ukraine war shocked already-strained supply chains and derailed the recovery. Meanwhile, a wave of COVID lockdowns in China took global auto sales plunging in April. Sales embarked on a slow climb up from April to July, until compounding headwinds from dimming economic outlook and heightened uncertainty started to weigh on purchases again. New waves of COVID- related slowdowns in China dragged the headline number even lower towards the end of the year, and in December, global auto sales sat at a depressed seasonally adjusted annualized rate of 64.8 mn units. Weak sales prevailed across all regions except in the Asia Pacific where despite large disruptions in China, annual sales still grew by +8.6% y/y. Auto sales in the US were down to 13.3 mn units, well below the 15 mn units sold in 2021. South American sales saw a boom in the first half of the year, before sliding sharply in the second half and ending the year only slightly higher than 2021s weak sales. Western European sales picked up in the fourth quarter of 2022 but annual sales still ended the year -4.3% y/y, on top of the -2.1% y/y decline in 2021. North American sales posted the largest decline in 2022 with a -7.1% y/y contraction, offsetting the +3.9% recovery in 2021.

Barely gaining any lost ground in 2022, the global auto sector is looking at another challenging year of recovery. Disruptions in Europe and Asia seem to be stabilizing. Europe avoided the worst of the energy crisis and Chinas COVID surge has passed its painful peak since the zero-COVID policy was lifted; suggesting healing supply chains and rebounding demand down the line. Although strong headwinds can still be expected in the near term with financial conditions extremely tight across the world. The Industry expect global auto sales to gradually improve in 2023 to around 70 mn units; 6% higher than 2022 sales. The recovery is expected to be led by North America and Western Europe— the two regions that dragged down growth in 2022. In Chinese auto sales, growth of around +3% in 2023 after the eye-popping gain of +7% in 2022 despite the pandemic lockdowns was registered. There is heightened uncertainty around this outlook as rising cost of living continues to dampen growth around the world, layered on top of geo-political risks that also cloud the outlook. (Scotiabank Global Auto Report February 9. 2023)

Indian Scenario

The Indian passenger vehicle (PV) market has ended an impressive financial year FY23 with annual sales of 4.5 million units, posting a year-on-year growth of 25 percent (FY22: 3.6 million) - the highest-ever annual growth in more than a decade when the previous peak was achieved in FY18-19 at 4.05 million units. Indias passenger vehicle sales grew as chip shortages eased and demand for sport utility vehicles (SUVs) surged, as per data released by auto industry body SIAM. The Indian government has demonstrated its commitment to the industrys growth by allocating INR 51.72 billion towards its flagship scheme ‘FAME-II, for subsidizing and promoting the adoption of Hybrid and Electric Vehicles in India. This allocation is 80% more than the allocation in previous year.


The industry produced a total of 2,59,31,867 vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers, and Quadricycles in April 2022 to March 2023, as against 2,30,40,066 units in April 2021 to March 2022.

Domestic Sales

Total Passenger Vehicle Sales increased from 30,69,523 to 38,90,114 units. Sales of Passenger Cars also increased from 14,67,039 to 17,47,376, Utility Vehicles from 14,89,219 to 20,03,718 and Vans 1,13,265 to 1,39,020 units, in FY-2022-23, compared to the previous year.

The overall Commercial Vehicles sales increased from 7,16,566 to 9,62,468 units. Sales of Medium and Heavy Commercial Vehicles increased from 2,40,577 to 3,59,003 units and Light Commercial Vehicles increased from 4,75,989 to 6,03,465 units, in FY-2022-23, compared to the previous year.

Sales of Three Wheelers increased from 2,61,385 to 4,88,768 units, in FY-2022-23, compared to the previous year.

Two Wheelers sales increased from 1,35,70,008 to 1,58,62,087 units, in FY- 2022-23, compared to the previous year.


In April 2022 to March 2023, Passenger Vehicle Exports increased from 5,77,875 to 6,62,891 units while Commercial Vehicle Exports decreased from 92,297 to 78,645, ThreeWheeler Exports decreased from 4,99,730 to 3,65,549 and Two Wheelers Exports decreased from 44,43,131 to 36,52,122 units over the same period last year.


The Indian auto industry has faced multiple challenges over the past few years, especially with the onset of Covid-19. In FY2023, the first year of recovery since Covid-19, the industry continued to face headwinds, including the ongoing Russia-Ukraine war, steep increases in crude oil prices, and prolonged global semiconductor shortages. Despite these challenges, the industry has shown growth and signs of recovery. This could be attributed to a healthy replacement demand, relatively stable semiconductor supplies, and pre-buying prior to the second phase of BS-VI emission norms implementation on April 1, 2023.

A few initiatives announced in the budget will positively affect the passenger vehicle sectors growth in FY2024. Automotive sector is part of 13 sectors that Government of India (Gol) has introduced INR 1.97 lakh cr performance-linked incentives (PLI) schemes for five years in 2021-22 budget. In Sept 2021, to boost the automotive industry with the newer and green technology the GoI launched 3 PLI schemes, a INR 26,000 cr scheme for production of electric vehicles and hydrogen fuel vehicles (PEVHV), the INR 18,000 crore "Advanced Chemistry Cell" (ACC) scheme for new generation advance storage technologies, which are useful for the electric vehicles, and INR 10,000 crore "Faster Adaption of Manufacturing of Electric Vehicles" (FAME) scheme to go green by expediting production of more electronic vehicles and replacement of other types of existing vehicles with the greener vehicles. The INR 26,000 cr PLI scheme to boost automotive sector to boost the production of electric vehicles and hydrogen fuel vehicles will also generate 750,000 direct jobs in auto sector. These schemes will reduce pollution, climate change, carbon footprint, reduce oil and fuel import bill through domestic alternative substitution and boost job creation.

In Budget 2023, the INR 3,000 crore allocation for the Indian Semiconductor Mission will also help to reduce import reliance. Given the increased proliferation of tech-enabled features in passenger vehicles, the semiconductor mission is likely to impact this segment the most.

Indian government is pushing for electric mobility and imposing stricter emission norms. Budget 2023 announced the extension of the customs duty exemption for capital goods and machinery imports for manufacturing lithium-ion cells used in EVs. According to the Society of Manufacturers of Electric Vehicles (SMEV), EV sales constituted only 5 percent of the total vehicle sales in FY2023, and the path seems favorable for achieving 20-30 percent adoption by FY2030. In March 2023, the Union Minister of Heavy Industries announced the sanction of INR 800 crores under FAME India Scheme Phase II to the PSU Oil Marketing Companies (OMC) for setting up 7432 public fast charging stations across the country.

Despite positive Government support, the Indian automobile industry in fiscal 2023-24 is expected to see a single digit growth after closing the FY23 with double digit growth, said Federation of Automobile Dealers Associations (FADA). As the high-growth period has now passed, FY24 is expected to see tapered growth in the low single digits due to a high base, inflationary pressures, routine price hikes, and regulatory changes, FADA said. Additionally, for the third consecutive month, US Government agencies have warned of the possibility of EL Ninos arrival later this year, which could lead to poor monsoons, hampering rural Indias growth potential. According to FADA, the untimely rains and hailstorms in North and Central India have destroyed key rabi crops and delayed harvesting, which will have a negative impact on rural sales. "Overall, FY24 will be a year of consolidation for the India Auto Retail Industry with an overall single digit growth over previous year," FADA said.


Financial Review INR/Mn.

Consolidated Standalone
2022-23 2021-22 2022-23 2021-22
Net Income from Operation 20,251 15,745 20,549 15,966
Other Operating Income 188 143 184 139
Total Revenue 20,439 15,888 20,732 16,105
Raw Material 14,461 11,070 15,214 11,664
Staff Cost 2,162 2,036 2,011 1,895
Other Expenditure 1,948 1,508 1,849 1,433
EBIDTA 1,868 1,273 1,659 1,112
Other Income 86 102 125 103
Depreciation and Amortisation 732 709 676 659
EBIT 1,222 667 1,108 556
Finance Charges 47 37 47 37
PBT before Exceptional Items 1,174 630 1,061 520
Exceptional Items 33 68 33 68
Share of profit of associates
PBT 1,142 562 1028 452
Tax 271 151 230 121
PAT 871 411 798 331
Other Comprehensive Income -7 1 -6 -0.2
Total Comprehensive Income 864 413 792 331
Profit attributable to Owner 864 413 792 331
Capital Expenditure 873 1,361 845 1,356
EPS 3.33 1.51 3.26 1.36
D/E Ratio 0.09 0.11 0.09 0.12

Ratio Analysis

Details of significant changes (i.e., change of 25% or more as compared to the immediately previous financial year) in the key financial ratios are as under: -

Net Profit Margin

Net Profit margin improved from 2.06% to 3.85%, mainly due to higher sales in the current financial year. Further Return on Capital Employed has improved from 7.21% to 14.58%.

There has been no significant change in other financial ratios, including debt equity ratio, current ratio, debtor turnover, inventory turnover, and fixed assets turnover ratios.


During the fiscal, the Company received acclamations from its Customers. Toyota Kirloskar recognised the Companys efforts in the area of "Zero Defect supply", "Business Continuity Management" and "Achieving Quality Targets". Maruti Suzuki recognized Companys efforts in the achieving superior "Overall Performance".


JTEKT Fuji Kiko Automotive India Limited (JFIN)

During the year under review, the subsidiarys revenue increased by 23% to reach INR 1298 million. JFIN continued to work with better capacity utilization to reduce the negative impact on profitability. It also achieved a 100% OTIF (On Time In Full) delivery track record.

>JFIN(INR/Mn.) 2022-23 2021-22
Revenue 1298 994
EBITDA 214 166
EBITDA Margin 16.48% 16.70%
PAT 117 86
PAT Margin 9.01% 8.65%

The Company participated at the 32nd National Convention on "Employees Creativity & Innovation for Organizational Business Growth" Indian National Suggestion Schemes Association - Mumbai along with INSSAN-Northern India Chapter. This time the theme of the convention was "Creativity & Innovation of Employees for Organizations Business success". Two of our Units - Dharuhera-Unit 2 and Dharuhera-Unit 3 participated at the convention and won Par excellence award in presenting a Case Study at the Quality Circle Competition titled "M-12 Thread Plug Gauge No-Go Rejection reduced at Valve Housing Line"

Safety: Achieved 1335 accident-free days.

Training: Imparted training to employee in Production, HR, and Manufacturing Engineering to enhance knowledge and skill eg. DOJO training, Kiken Yochi Training (KYT) and position wise training.

Environment: Power consumption reduced with new kaizens such as installation of variable frequency drive (VFD), 80 KWp solar panel, replacement with LED lights and automated timers, PNG DG installed etc.


The Company follows a mission of continuously contributing to the Earth and Society by developing high quality Steering and driveline products that provide safety and comfort globally. The Company is in the continuous process of becoming development partner and make progress in design quality, technical responses, performance thereby achieving milestones year on year.

In the process of enhancing skills in Design and Testing to achieve self-reliance, members from the Companys Technical center are getting long-term training in Japan and the same will keep continuing in future till achieving self-reliance for core products. Number of testing facilities have been added and upgraded in last financial year.

In the process of upgrading protocell section, after successfully commissioning of R&P MS Gear assembly in the past, the Company during the Financial Year, commissioned facility for making proto samples for Manual Column and Intermediate shaft assembly line thereby avoiding dependence on use of mass production line for these products.

The technical center in India is, as a continuous process of adding value by developing new product, providing cost- effective solutions and develop products specific to the Indian market as well as support Global Technical Centers by taking up design responsibility for many global projects.

During the year, JIN has locally designed and developed solutions for customers, resulting in providing comfort to end users. We will keep on progressing with our focus on self-reliance, cost-effectiveness and service to the customer.


The Company has been working on the rationalization of its manufacturing operations to enhance overall operational efficiency and serving its customers efficiently.

Manufacturing operations of the Company are spread across six plants in North and South of India. These plants were originally established to serve our esteemed customers with specific steering and driveline products; however, the change in the business scenario, technological trend, customer demand and expanded product portfolio provides an opportunity to review manufacturing strategy for enhancing its operational efficiency and competitiveness for sustainable growth.

Based on detailed analysis of related factors and business plan, the Company has established a structured roadmap for rationalization and has been executing the same in phased manner. As result of previous years efforts, the Company completed rationalization of Stamping unit and its Sanand plant by consolidating the products and equipments with other plants that has resulted to improve efficiency and profitability.

As the Company is expanding its facilities for capacity expansion of current products as well as expanding product portfolio by introducing new products like Constant Velocity Joint, the rationalizations is key consideration in decision making. As per the report published by Allied Market Research, the global automotive Constant

Velocity Joint market was pegged at $2.9 billion in 2021, and is estimated to reach $4.7 billion by 2031, growing at a CAGR of 5.3% from 2022 to 2031. (Source: Allied Market Research). Our actions are aligned to make JTEKT India Ltd. a world-class manufacturing company and attain highest level of customer satisfaction.


At JTEKT India, human resource management spans from assessment of manpower need to the management and retention of manpower. HR is an integral part of our organization, which plays an essential role in the business and success of organization. Management is having focused approach in designing and implementation of various policies, procedures and programs to ensure a safe and productive work environment, and developing strategies for employee engagement and development.

During FY 2023, where digitalization has given a new turn to the industry, Corporate HR has introduced an Employee Self Service Portal named "ZING HR" which gives the opportunity to the employees to have a quick access to their professional information & provides a one-stop shop solution to all processes relating to HR & Payroll. The best feature of this software is its mobility as it can be easily operated from individual Mobile phones. Moreover, with the objective of keeping the employees engaged & work towards the betterment of the organization, the Company has launched Online Suggestion Scheme for our employees, where they can submit their suggestions & can get the reward & recognition from the Management.

The Company conducts regular trainings and skill enhancement activities to grow employees skills and support them to reach to their highest potential. During FY2023, 638 training sessions were conducted for the employees involving 3190 training hours for various learning & development activities. These training sessions covered topics like Safety, Health & Environment, Company Principles and Policies, Behavioral Competencies and Technical skills.

Employees are also making the optimum utilization of E-Learning platform, where more than 35 modules related to Company Principles, Technical & Behavioral skills are available. The best feature of this portal learning is that it can be accessed from any place & at any point of time.

In the India Training Centre, we have given the opportunity to our Team Leaders & Assistant Team Leaders of Production/ Quality / ME & Maintenance sections to understand and explore Toyota Production System that includes orientation and A-HA Tools, Material Information Flow that includes Kanban and Standardize Work on real ground by doing the demo by their own. Last year, we have conducted 32 batches, among them 214 Team Leaders and Assistant Team Leaders were trained on the subject.

In FY2022 Corporate HR has taken the initiative to develop the future shop floor leader through Japan Government driven scheme named JIM (Japan India Institute for Manufacturing). Under that flagship program, the young talented trainees of first batch successfully completed their one-year JIM training program and our organisation has hired all trainees and given the career path in the organisation in the sections such as Production, ME & Maintenance and in Quality as per their calibre and interest.

Upon successful completion of first batch of JIM training program, the Japan Government has approved to start second batch in Dharuhera location covering all three plants of Dharuhera. In addition permission has been received to start three new batches at our Plants located in Bawal. To inaugurate the JTEKT JIM Bawal, Ms. Kyoko HOKUGO - Minister (Economic & Development) from the Embassy of Japan in India was invited as the chief guest and Mr. Eiji Teshima from The Association for Overseas Technical Cooperation and Sustainable Partnerships(AOTS) was also invited as the special guest. The guest of honour Ms. Kyoko HOKUGO appreciated the Companys efforts for opening three new JIMs at three JTEKT Plants who are already practicing Japanese system, in true essence of Kaizen concept. Under this scheme, we have taken 48 new students from the government colleges from diverse locations for Bawal and Dharuhera plants, who are enthusiastic and eager to learn about the shop floor skills.


At JTEKT India, Purchasing Philosophy is to establish and maintain the world class function of purchasing, securing timely procurement of the best products at the lowest costs and thus strengthening competitiveness of the Company in Monozukuri.

In order to strengthen our competitiveness, we unite all capabilities of the Company and our business partners at each stage of development, production preparation and mass production and clear business hurdles.

The Companys Purchasing Department provides training to its partners to upgrade their technology and support them to improve their quality and performance. Fair assessment is done with partners while evaluating their performance. For motivating our partners, the Company rewards its best performer partners in the area of Quality, Delivery, VA/VE, Safety, Environment and overall support. Cost improvement (VA/VE) policy is shared with them for mutual growth. Partners are selected based on their capability and their potential.

Environment guidelines are shared with partners to make sure parts are free from prohibited chemical/substance to protect the environment. Safety trainings are provided to them to ensure no fatal and no fire accident. Risks are evaluated to make sure uninterrupted supplies to customers.

The Companys Purchasing supports MSME suppliers and local suppliers (including transporters & other service providers). While developing parts, we make sure that opportunities are given to MSME and local suppliers also. Training to improve their quality, delivery and efficiency are provided to them.


The Company continued to promote the ‘Zero Accident vision to prevent workplace accidents. During the financial year, the Company has taken several initiatives to further the cause of the safety vision.

Safety Award - This year on 26th January 2023, we have received the Haryana State

Safety Welfare & Health Award & certificate for our Gurgaon Plant for achieving "Lowest Accident Frequency Rate" from Honble Agriculture Minister Government of Haryana Mr. J. P. Dalai.

Improving Safety Mind-set - The Company continues to believe that all the members can always remain safe when they perform work with correct methods and tools and do not take shortcuts. Hence, the Company has been working on improving the thinking process of all employees towards Safety. This year the Company modified the evaluation and training process so that it becomes more effective to identify the shortcomings and members are taken through behavioral training programs to improve their mindset on safety.

Machine Risk Assessment - This year, we did machine risk assessment with the revised check sheet to ensure that all our machines are safe for work. The risks are identified and prioritized on the basis of its potential impact / probability. Actions are then planned to assure that all processes remain safe for the employees.

Installation of Chiller unit on Injection Moulding Machine - In order to reduce the temperature, we have installed chiller unit on all such machines where water consumption was high. Earlier the water was being used from the cooling tower. This initiative will help us in water saving.

New Safety initiatives - We have started ergonomics study to reduce human risk at the machine. We categorise the risk in three levels - high, medium and low and start taking countermeasures on the identified machines.

Safety Patrol Round by Top Management - This year we have started monthly Safety Patrol Round with Top Management on the Production lines to identify the unsafe conditions. The probable risks are identified and countermeasures are taken to avoid any accident.

Apart from the above actions, we provide a mandatory 2-days safety training for every new employee as part of the induction program.


The Major focus during the financial year has been to improve the manufacturing process efficiency, process automation and increase in productivity by implementing innovative IT Tools and Technologies.

Robotic Process Automation (RPA) system has been implemented to automate various manual Jobs effectively for better utilization of the human resources. RPA System will also offload the standard repetitive jobs to improve employee productivity and efficiency at functional level.

Supplier Kanban system has been setup as part of supply chain digitization roadmap to improve overall logistic operation to reduce the inventory and efficient management of BOP at production lines.

Traceability system has been deployed as per the customer demand and future manufacturing requirements of product traceability at bin level to meet the material traceability norms. Traceability system will help company to limit the financial losses due to product recall and defects.


The Company understands that effective risk management is critical in meeting its objectives and achieving sustainable growth. Risk management policies have been designed in a manner that the Company can respond swiftly and implement the necessary mitigation actions. In compliance with the prudential norms, we have constituted a Risk Management Committee and developed a risk management framework. The objective was to ensure sustainable business growth and promote a proactive approach in reporting, evaluating and mitigating risks associated with the business.

The Committee reviews the framework periodically in view of the dynamic business environment. This risk management policy has helped enhance process robustness, ensuring that strategic & operational risks are addressed effectively.

The Companys strategic & operational risks are broadly classified into the following four major categories:

Economic risk: Refers to risks resulting from the economic and political scenario in the country.

Operational risk: Refers to the risks that are inherent to the business and include manufacturing and distribution operations.

Financial risk: Refers to the risk that result from fluctuations in the currency market.

Human resource risk: Refers to the risk of losing out on skilled workforce due to competition in the market as lot of growth opportunities opened in market after COVID-19.

The Committee recognizes that risk management is an integral part of good management practices. Thus, it has made risk management an essential element in achieving business goals and deriving benefits from market opportunities. While the Company cannot completely rule out the possibility of a negative impact owing to risks, we continue to take cautious steps to mitigate risks.


The Company has in place a robust internal control system commensurate with its size and operations. The internal controls are aligned with global standards and processes while adhering to local statutory requirements. The internal controls systems are supported through management reviews, verification by internal and statutory auditors. The internal audit plans are also aligned to the business objectives of the Company, which are reviewed and approved by the Audit Committee. Further, the Audit Committee monitors the adequacy and effectiveness of the Companys internal control framework.

Our internal control system provides a high degree of assurance with respect to:

• effectiveness and efficiency of operations

• reliable, timely, and transparent reporting and

• compliance with laws and regulations.


The Company considers social responsibility as an integral part of its business activities. The Companys CSR initiatives are in the areas approved by the CSR Committee of the Company and include healthcare, education and rural development programs.

During FY23, the Company has further extended these activities and has significantly increased its financial commitment to these projects. The Company focusses on directly implementing these projects in local areas after a detailed assessment of the requirements of the community with the objective to derive maximum benefit from these activities and to ensure that these CSR projects achieve the norm of sustainability.

One of the major CSR initiative taken by the Company was to set up a 10 bedded Post Delivery Maternity cum isolation ward at Community Health Centre, Bawal. This is a state of art facility with 225 Square Meters of civil construction. The facility is air-conditioned for the comfort of mothers and infants and is equipped with separate enclosure for doctor / nurses with necessary infrastructure, Toilet, 10 nos. of beds, curtains, side tables and other essentials. The total expense on this project was INR 6.5 Million contributed by the Company and its subsidiary - JTEKT Fuji Kiko Automotive India Limited.

During the year, the Company provided Medical equipment - Zeiss IOL Master 700 system which is used for Day Care Centre for Cancer patients and Eye Centre at Vivekanand Arogya Kendra, Gurugram.

Other CSR projects carried out during the year included Purification Unit with Water Cooler to Govt. Primary School, Gurjar Majri, Braillers (typewriters) and Braille Books to the Captain Chandan Lal Special School for Blind, Gurugram, Water Cooler to Govt. Primary School, Sulkha, Rewari, Salary of Computer Teacher at Govt. Sr. Sec. School Banipur Village and Renovation of Traffic Police Office building, Dharuhera.


The Company made further efforts towards harnessing solar energy for generating electricity for our manufacturing units. Currently, our six manufacturing locations have solar power generating facilities, and the total solar power generating capacity stands at 3479.4 KWp. The Company has plans to further increase the capacity in the coming years. In addition to this, all other energy-saving efforts such as the adoption of energy-efficient fixtures and equipment, zero water discharge through water recycling, etc. continue to receive the focus of the management.


Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, and expectations may be forward-looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the Companys operations include a downtrend in the automobile sector, significant changes in the political and economic environment in India, exchange rate fluctuations, tax laws, litigation, labor relations, and interest cost.