Sona Koyo Steering Systems Ltd. Business Report FY ended Mar. 2015

Financial Overview

(in million INR)

	FY ended Mar. 31, 2015	FY ended Mar. 31, 2014	Rate of change (%)	Factors
Net Sales	15,578.4	15,320.2	1.7	1)
Profit before tax	857.1	1,110.4	(22.8)	-

Factors
1) Sales
-The Company's sales for the fiscal year ended March 31, 2015 increased by 1.7% from the previous fiscal year to INR 15,578.4 million. The increase in sales was primarily due to corresponding growth in India's passenger vehicle market.

-The Company operates primarily in the Indian market. The Company's yearly exports have consistently amounted to less than ten percent of its total sales turnover.

Activity of Subsidiaries

JTEKT Sona Automotive India Limited (JSAI)
-In the fiscal year ended March 31, 2015, JTEKT Sona began production of Column-type Electric Power Steering systems for the Maruti Suzuki "Ciaz" and Honda "Mobilio", as well as steering gears for the Toyota "Corolla".

Sona Fuji Kiko Automotive Limited (SFAL)
-Sona Fuji Kiko began production of jacket column assemblies for the Maruti Suzuki "Ciaz" in the fiscal year ended March 31, 2015.

Recent Developments

-Capacity utilization based on product line

(FY ended Mar. 31, 2015)

Product line	Capacity utilization (%)
Steering components	57
Column components	68
Driveline components	32

Contracts

-In 2015, the Company began supplying power steering systems and jacket column assemblies for the Maruti Suzuki "Ciaz".

Awards

-JTEKT Sona received an Excellence & Supplier Delivery Performance Award for EDI (Electronic Data Interchange) from Renault Nissan in 2014.

R&D Expenditure

(in million INR)

	FY ended Mar. 31, 2015	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013
Overall	24.0	30.7	28.0

-The Company was engaged in the following automotive research and development activities during the fiscal year ended in March 31, 2015:

Studying advanced driver assistance systems and steering systems for automated vehicles
Determining factors which cause oil degradation in hydraulic power steering systems
Developing a process to die cast ADC12 aluminum alloy

Capital Expenditures

(in million INR)

	FY ended Mar. 31, 2015	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013
Sona Koyo Steering Systems Ltd.	650	855	815

-The INR 650 million invested in capital expenditure for the fiscal year ended March 31, 2015 was used primarily on projects focusing on backwards integration, the reduction of production cycle times, and the increase of manual gear production capacity.

Investments in India

-The Company invested INR 170 million to increase production capacity at its die casting plant in Dharuhera. The investment included the import of an 850 ton machine.