Cummins India : Annual Report 2021-22

POWERING

INDIA FOR

YEARS

WITH INNOVATION

AND DEPENDABILITY

Contents

1		2
Chairman's		Our Story
Letter		and Top 3 Priorities

3		18
Managing		Board of
Director's		Directors
Letter

21

Directors'

Report

and its Annexures

105	283	322
Standalone and	Business	Cummins
Consolidated	Responsibility	India Limited
Financial	Report
Statements

About the Cover

Everything Cummins has done for the past 60 years in India defines who we are today. Since 1962, we have approached every moment as an opportunity to innovate at work, empower our people and communities, and positively impact our planet. Playing an integral role in driving the India growth story, Cummins has earned the trust of our stakeholders through the reliability of our products and the excellence of our people. This trust is our responsibility and will continue to guide our future success and commitment to 'Powering India'.

Annual Report 2021-22

Steven M. Chapman

Chairman

Cummins India Limited (CIL)

Dear Shareholders,

2022 is a landmark year for your company in India, as we mark 60 glorious years of powering an incessantly resilient, diverse, inclusive, and progressive country.

Your trust and confidence in our brand have been integral to building this robust legacy and will be instrumental in shaping our future for the next 60 years and more.

For the past six decades, our success has been guided by Cummins' mission of 'making people's lives better by powering a more prosperous world'. It has particularly inspired our strategy and actions to navigate the pandemic-hit world order - one that has been in a constant state of flux for the past two years, with universal disruptions, colossal devastation, and recent geopolitical developments.

In many ways, 2022 was a culmination of a series of changes that happened in the year that preceded it. Unravelling a multitude of challenges, 2021 was the year of resurgence for Cummins globally and in India. Not only did we achieve remarkable financial growth, but we also made strides across a gamut of issues impacting our communities and the planet.

In response to the COVID-19 pandemic, the company launched a dedicated global campaign to vaccinate our employees, their families, and other stakeholders. We partnered with local governments and healthcare providers to facilitate delivery of over 45,000 doses of approved vaccines to our employees worldwide, including over 32,500+ doses to our Cummins Group employees in India.

With renewed vigor, we set on the path to zero emissions via our PLANET 2050 strategy. We recently launched Destination Zero - our global strategy

to go further and faster to reduce the greenhouse gas (GHG) and air quality impacts of our products. It is a step towards reaching net-zero emissions

by 2050 in a way that is best for Cummins and all stakeholders. This is a bold step up from October 2021, when Cummins Inc. was named to the S&P Dow Jones World Index for the first time since 2013 for demonstrating stellar performance across the environmental, social and governance matrix.

Our industry remains afflicted by the ongoing impact of the COVID-19 pandemic and the Russia- Ukraine conflict, resulting in global supply chain constraints driving up costs and reducing margins. Your company is uniquely positioned to address these complex issues with a remarkable history of effectively overcoming challenges and resiliently demonstrating our vision of 'Innovating for our customers to power their success'. I am confident that the Company is in a strong position to innovate and invest in future growth while continuing to return cash to our shareholders.

Once again, I thank each one of you for entrusting us with your confidence and sharing our mission in these past 60 years. Today, our success in India is etched in the Integrity, Diversity & Inclusion, Caring, Excellence, and Teamwork demonstrated by our employees and partners as well as the foresight and courage exhibited by our shareholders. As we embark on the next chapter of our growth story in India, I look forward to your continued support, optimism, and faith.

Thank You,

Steven

1

Our Story

OUR MISSION

OUR VISION

OUR VALUES

Making people's	Innovating for our	Integrity,
lives better by	customers to power	Diversity & Inclusion,
powering a more	their success	Excellence, Caring
prosperous world		and Teamwork

Top 3 Priorities

Transforming lives by empowering our employees and communities.

Committed to innovation and dependability to power the success of our customers.

Building a sustainable future by addressing environmental challenges today.

Annual Report 2021-22

Dear Shareholder Family,

I hope this note finds you and your loved ones healthy and safe.

Cummins commenced its India journey in 1962 and has become synonymous with innovation and dependability. As a second-generationCummins employee, I have had the privilege and honor of first witnessing and then contributing

to Cummins' growth story in India over five momentous decades. As we commemorate our remarkable 60-year legacy, I am incredibly proud of what we have built together. We have been working relentlessly on our mission of "Making people's lives better by powering a more prosperous world" through pioneering technological innovation and human ingenuity.

2021 was a testing year fraught with challenges for Cummins, as it was for the world. It was excruciatingly demanding on our business, people, processes, and communities because of the Covid-19implications and uncertainties exacerbated by the second wave. But, true to the Cummins spirit, we traversed these continuously evolving complexities through collective strength, resilience, and agility. We emerged stronger through the waves of isolation and grief and demonstrated immense care and compassion. We chose hope over fear and continued to march forward with optimism.

Cummins' commitment to ensuring the well-being of our people was reflected through the robust vaccination drives organized for our employees, suppliers, business partners, and their family members. These efforts focused on protecting our people have resulted in 99.5% of our employees vaccinated. We also committed ourselves to caring for our communities by providing them COVID-19 relief support in the form of oxygen cylinders, cooked meals, critical equipment, supporting sanitization

Ashwath Ram

Managing Director

Cummins India Limited (CIL)

workers, and community vaccinations impacting over 1.75 Lakh lives. We embraced new ways of working, accelerated digitalization across our offices and sites, and renewed our commitment to

Diversity, Equity, and Inclusion.

Despite mammoth challenges, the sheer brilliance and grit of our teams across different businesses and functions in the past year led to us launching a range of power generation products, providing strong aftermarket service support to over 110,000 engines in the field, navigating complex supply chain constraints successfully.

I am pleased to share that this demonstration of agile strength, exceptional teamwork, and customer-centricity helped us emerge stronger and resulted in an excellent financial year, with your company reporting the highest ever revenue, outstanding domestic sales, and record exports.

We are deeply grateful for the trust and faith that our employees, customers, shareholders, partners, investors, suppliers, and communities put in Cummins every single day. Their trust inspires us to deliver on our vision of innovating for our customers to power their success. As Cummins celebrates 60 years of its presence in India in 2022, we are committed to strengthening our relationships with all our stakeholders and continuing to deliver value to all.

With great excitement, I share the Cummins India Limited FY 2021-22 overview with you, comprising updates on our financial performance, awards and recognitions, business activities, corporate responsibility initiatives, and a snapshot of our

glorious 60-year legacy.

3