The case of Motherson Sumi’s unaudited subsidiaries

A mismatch between what the auditor and the company list is leading to a difference in unaudited income.

At first, it looked all wrong.

How could there be chinks in the story of Motherson Sumi Systems Ltd, one of the world’s largest makers of wiring harnesses and mirrors for passenger cars, and which has been hailed as a shining success story of corporate India? How could the auditor, one of the Big Four, not flag a misrepresented revenue figure on the company’s website? How is it that both the media and analysts who pore over the fine print largely take the company’s spectacular performance at face value?

However, multiple checks that we made over the last fortnight suggest that the real story of Motherson Sumi has remained untold, until now.

To access this post, you must purchase Subscription, Regular, Regular – Annual, Regular – Monthly or Student.

Lead photo of Samvardhana Motherson Group chairman Vivek Chaand Sehgal by Richter Frank-Jurgen via Flickr, licensed under Creative Commons CC-BY-SA 2.0. The Morning Context has raised money from a clutch of investors, entirely in their personal capacity. It is quite likely that some of them may be directly or indirectly involved in a competing line of business similar to the companies we write about. Our full list of investors is here.


Subscribe to read this story and more
100+ new, deeply reported stories and 50+ shorts a year
Things Change, TMC’s weekly newsletter
Full access to the archives