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Notes to Accounts of Maruti Suzuki India Ltd.

Mar 31, 2015

1. Rights, preferences and restriction attached to shares The Company has one class of equity shares having a par value of Rs. 5 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Shares allotted as fully paid up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceding March 31, 2015):

13,170,000 Equity Shares of Rs. 5 each have been allotted as fully paid up during Finanical Year 2012-13 to Suzuki Motor Corporation pursuant to the Company's scheme of amalgamation with erstwhile Suzuki Powertrain India Limited.

2. Foreign currency loans from banks include:

- loan amounting to Rs. 1,738 million (USD 27.80 million) (Previous year Rs. 2,499 million; USD 41.71 million) taken from Japan Bank of International Cooperation (JBIC) at an interest rate of LIBOR 0.125, repayable in 4 half yearly instalments (acquired pursuant to a scheme of amalgamation). Out of the above, Rs. 869 million (Previous year Rs. 833 million) repayable within one year has been transferred to current maturities of long term debts. The repayment of the loan is guaranteed by Suzuki Motor Corporation, Japan (the holding company).

- loan amounting to Rs. 1,906 million (Previous year Rs. 1,827 million) (USD 30 million) taken from banks at an average interest rate of Libor 1.375 and repayable in July 2015 hence the entire amount outstanding has been transferred to current maturities of long term debts.

3. A loan amounting to Rs. 1,158 million (USD 18.53 million) (Previous year Rs. 1,666 million; USD 27.80 million) taken from the holding company at an interest rate of LIBOR 0.48, repayable in 4 half yearly instalments (acquired pursuant to a scheme of amalgamation). Out of the above, Rs. 579 million (Previous year Rs. 555 Million) repayable within one year has been transferred to current maturities of long term debts.

4. CONTINGENT LIABILITIES

a) Claims against the Company disputed and not acknowledged as debts:

As at As at Particulars 31.03.2015 31.03.2014

(i) Excise Duty

(a) Cases decided in the Company's favour by Appellate authorities 2,965 3,601 and for which the department has filed further appeal and show cause notices / orders on the same issues for other periods

(b) Cases pending before Appellate authorities in respect of which 13,741 11,548 the Company has filed appeals and show cause notices for other periods

(c) Show cause notices on issues yet to be adjudicated 15,670 11,646

Total 32,376 26,795

Amount deposited under protest 383 361

(ii) Service Tax

(a) Cases decided in the Company's favour by Appellate authorities 385 699 and for which the department has filed further appeal and show cause notices / orders on the same issues for other periods

(b) Cases pending before Appellate authorities in respect of which 4,912 4,689 the Company has filed appeals and show cause notices for other periods

(c) Show cause notices on issues yet to be adjudicated 183 474

Total 5,480 5,862

Amount deposited under protest 19 10

(iii) Income Tax

(a) Cases decided in the Company's favour by Appellate authorities 6,033 5,950 and for which the department has filed further appeals

(b) Cases pending before Appellate authorities / Dispute 21,825 14,358 Resolution Panel in respect of which the Company has filed appeals

Total 27,858 20,308

Amount deposited under protest 7,140 7,140

(iv) Custom Duty

(a) Cases pending before Appellate authorities in respect of which 103 118 the Company has filed appeals

(b) Others 32 20

Total 135 138

Amount deposited under protest 22 22

(v) Sales Tax

Cases pending before Appellate authorities in respect of which the 53 53

Company has filed appeals Amount deposited under protest 2 2

(vi) Claims against the Company for recovery of Rs. 339 million (Previous year Rs. 542 million) lodged by various parties.

(vii) Pursuant to the Supreme Court order setting aside the judgment of the Punjab & Haryana High Court ("High Court") and directing the High Court for fresh determination of the compensation payable to the landowners, in an appeal filed by the Haryana State Industrial & Infrastructure Development Corporation Limited ("HSIIDC"), relating to the demand raised for enhanced compensation by landowners for land acquired from them at Manesar for industrial purposes, the Company's impleadment applications / appeals are pending with the High Court for adjudication.

The various demands raised by HSIIDC total Rs. 10,317 million. Against this the Company has made a payment of Rs. 3,742 million to HSIIDC under protest and based on its assessment, capitalised it as part of land cost.

(viii) In respect of disputed Local Area Development Tax (LADT) (upto April 15, 2008) / Entry Tax, the Sales Tax department has filed an appeal in the Supreme Court of India against the order of the Punjab & Haryana High Court. The amounts under dispute are Rs. 21 million (Previous year Rs. 21 million) for LADT and Rs. 18 million (Previous year Rs. 17 million) for Entry Tax. The State Government of Haryana has repealed the LADT effective from April 16, 2008 and introduced the Haryana Tax on Entry of Goods into Local Area Act, 2008 with effect from the same date.

(ix) The Competition Commission of India had passed an order dated August 25, 2014 stating that the Company has violated certain sections of the Competition Act, 2002 and has imposed the penalty of Rs. 4,712 million. An interim stay is in operation on the above order of CCI pursuant to the writ petition filed by the Company before the Delhi High Court.

b) The amounts shown in the item (a) represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate cannot be made. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.

5. Outstanding commitments under Letters of Credit established by the Company aggregate Rs. 2,029 million (Previous year Rs. 2,155 million).

6. Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amount to Rs. 20,295 million (Previous year Rs. 19,950 million).

7. Consumption of raw materials and components has been computed by adding purchases to the opening stock and deducting closing stock physically verified by the management.

8. The Company was granted sales tax benefit in accordance with the provisions of Rule 28C of Haryana General Sales Tax Rules, 1975 for the period from August 1, 2001 to July 31, 2015. The ceiling amount of concession to be availed of during the entitlement period is Rs. 5,644 million. Till March 31, 2015, the Company has availed of / claimed sales tax benefit amounting to Rs. 2,626 million (Previous year Rs. 2,585 million).

9. The Company has considered "business segment" as its primary segment. The Company is primarily in the business of manufacture, purchase and sale of motor vehicles, components and spare parts ("automobiles"). The other activities of the Company comprise facilitation of pre-owned car sales, fleet management and car financing. The income from these activities, which are incidental to the Company's business, is not material in financial terms but such activities contribute significantly in generating the demand for the products of the Company. Accordingly, the Company operates in one business segment and thus no business segment information is required to be disclosed.

The "Geographical Segments" have been considered for disclosure as the secondary segment, under which the domestic segment includes sales to customers located in India and the overseas segment includes sales to customers located outside India.

10. Derivative Instruments outstanding at the Balance Sheet date:

1 (a) Forward Contracts against imports and royalty:

* Forward contracts to buy JPY 14,500 million (Previous year JPY 9,000 million) against USD amounting to Rs. 7,575 million (Previous year Rs. 5,363 million).

* Forward contracts to buy USD Nil (Previous year USD 30 million) against INR amounting to Rs. Nil (Previous year Rs. 1,824 million).

* Forward contracts to buy EURO 13 million (Previous year EURO Nil) against USD amounting to Rs. 882 million (Previous year Rs. Nil). The above contracts have been undertaken to hedge against the foreign exchange exposures arising from transactions like import of goods and royalty.

(b) Forward Contracts against exports:

- Forward contracts to sell USD 35.8 million (Previous year Nil million) against INR amounting to Rs. 2,279 million (Previous year Nil million). The above contracts have been undertaken to hedge against the foreign exchange exposures arising from export of goods.

(c) USD Floating rate/INR Floating rate cross-currency swap: Outstanding USD/INR Floating rate cross-currency swap USD 46.34 million (Previous year USD 69.51 million) amounting to Rs. 2,896 million (Previous year Rs. 4,165 million).

(d) Forward Contracts against buyers credit : Forward Contracts to buy JPY Nil (Previous year JPY 2,244 millions) against INR amounting to Rs. Nil (Previous year Rs.1,303 million). Forward Contracts to buy USD 30.49 millions (Previous year USD 142 millions) against INR amounting to Rs.1,905 million (Previous year Rs.8,500 million). The above contracts have been undertaken to hedge against the foreign exchange exposure arising from foreign currency loan.

11. STATEMENT OF TRANSACTIONS WITH RELATED PARTIES

Holding Company

Suzuki Motor Corporation

Joint Ventures

Mark Exhaust Systems Limited

BeUsonica Auto Component India Private Limited

FMI Automotive Components Private Limited

Krishna Ishizaki Auto Limited

Inergy Automotive Systems Manufacturing India Private Limited

Maruti Insurance Broking Private Limited

Manesar Steel Processing India Private Limited

Subsidiaries

Maruti Insurance Agency Services Limited

Maruti Insurance Agency Logistics Limited

Maruti Insurance Distribution Services Limited

Maruti Insurance Agency Network Limited

Maruti Insurance Agency Solutions Limited

True Value Solutions Limited

Maruti Insurance Business Agency India Limited

Maruti Insurance Broker Limited

J.J. Impex (Delhi) Private Limited

Key Management Personnel

Mr. Kenichi Ayukawa

Mr. Toshiaki Hasuike

Mr. Kazuhiko Ayabe

Mr. Masayuki Kamiya (upto July 30, 2014)

Mr. Shigetoshi Torii (w.e.f. July 31, 2014)

Mr. Tsuneo Ohashi

Mr. Keiichi Asai

Associates

Asahi India Glass Limited

Bharat Seats Limited

Caparo Maruti Limited

Halla Visteon Climate Systems India Limited

Denso India Limited

Jay Bharat Maruti Limited

Krishna Maruti Limited

Machino Plastics Limited

SKH Metals Limited

Nippon Thermostat (India) Limited

Sona Koyo Steering Systems Limited

Magneti Marelli Powertrain India Private Limited

Fellow Subsidiaries (Only with whom the Company had transactions during the current year)

Suzuki Italia S.P.A.

Suzuki Motor Gujarat Private Limited Magyar Suzuki Corporation Ltd.

Pak Suzuki Motor Co., Ltd.

PT Suzuki Indomobil Motor Suzuki (Myanmar) Motor Co., Ltd.

Suzuki Australia Pty. Ltd.

Suzuki Austria Automobile Handels G.m.b.H.

Suzuki Auto South Africa (Pty) Ltd Suzuki Cars (Ireland) Ltd.

Suzuki France S.A.S.

Suzuki GB PLC

Suzuki International Europe G.m.b.H.

Suzuki Motor (Thailand) Co., Ltd.

Suzuki Motor de Mexico, S.A. de C.V.

Suzuki Motor Iberica, S.A.U.

Suzuki Motor Poland Sp. Z.O.O. (Former Suzuki Motor Poland Ltd.)

Suzuki Motorcycle India Ltd.

Suzuki New Zealand Ltd.

Suzuki Philippines Inc.

Taiwan Suzuki Automobile Corporation

Thai Suzuki Motor Co., Ltd.

Vietnam Suzuki Corporation


Mar 31, 2014

1. CONTINGENT LIABILITIES:

a) Claims against the Company disputed and not acknowledged as debts:

As at As at Particulars 31.03.2014 31.03.2013

(i) Excise Duty

(a) Cases decided in the Company''s favour by Appellate authorities and for which the 3,601 2,990 department has fled further appeal and show cause notices / orders on the same issues for other periods

(b) Cases pending before Appellate authorities in respect of which the Company has filed 11,548 10,484 appeals and show cause notices for other periods

(c) Show cause notices on issues yet to be adjudicated 11,646 8,581

Total 26,795 22,055

Amount deposited under protest 361 361

(ii) Service Tax

(a) Cases decided in the Company''s favour by Appellate authorities and for which the 699 3,767 department has fled further appeal and show cause notices / orders on the same issues for other periods

(b) Cases pending before Appellate authorities in respect of which the Company has fled 4,689 2,857 appeals and show cause notices for other periods

(c) Show cause notices on issues yet to be adjudicated 474 1,358

Total 5,862 7,982

Amount deposited under protest 10 3

(iii) Income Tax

(a) Cases decided in the Company''s favour by Appellate authorities and for which the 5,950 5,918 department has fled further appeals

(b) Cases pending before Appellate authorities / Dispute Resolution Panel in respect of which 14,358 12,058 the Company has fled appeals

Total 20,308 17,976

Amount deposited under protest 7,140 6,770

(iv) Customs Duty

Cases pending before Appellate authorities in respect of which the Company has filed appeals 118 118

Others 20 10

Total 138 128

Amount deposited under protest 22 22

(v) Sales Tax

Cases pending before Appellate authorities in respect of which the Company has filed appeals 53 50

Amount deposited under protest 2 2

(vi) Claims against the Company for recovery of Rs. 542 million (Previous year Rs. 604 million) lodged by various parties.

(vii) Pursuant to the Supreme Court order setting aside the judgment of the Punjab & Haryana High Court ("High Court") and directing the High Court for fresh determination of the compensation payable to the landowners, in an appeal fled by the Haryana State Industrial & Infrastructure Development Corporation Limited ("HSIIDC"), relating to the demand raised for additional compensation by landowners for land acquired from them at Manesar for industrial purposes, the Company has fled an impleadment application before the High Court and HSIIDC has revised the demand on the Company from Rs. 5,012 million to Rs. 7,496 million.

In respect of the demand for Rs. 1,376 million for the remaining part of the land of the Company at Manesar received from HSIIDC in the previous year, consequent to the order of the High Court the Company''s appeal is pending adjudication with the High Court.

As the amount(s), if any, of final price adjustment(s) is/ are not determinable at this stage, the Company considers that no provision is required to be made at present. Any additional compensation, if payable, will have the effect of enhancing the asset value of the freehold land. The penal interest payable, if any, would be charged to the statement of Profit and loss. The Company has made a payment of Rs. 3,700 million to HSIIDC under protest.

(viii) In respect of disputed Local Area Development Tax (LADT) (upto 15th April 2008) / Entry Tax, the Sales Tax department has fled an appeal in the Supreme Court of India against the order of the Punjab & Haryana High Court. The amounts under dispute are Rs. 21 million (previous year Rs. 21 million) for LADT and Rs. 17 millions (previous year Rs. 15 million) for Entry Tax. The State Government of Haryana has repealed the LADT effective from 16th April 2008 and introduced the Haryana Tax on Entry of Goods into Local Area Act, 2008 with effect from the same date.

b) The amounts shown in the item (a) represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate cannot be made. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.

2. Outstanding commitments under Letters of Credit established by the Company aggregate Rs. 2,155 million (Previous year Rs. 6,488 million).

3. Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amount to Rs. 19,950 million (Previous year Rs. 28,760 million).

4. Consumption of raw materials and components has been computed by adding purchases to the opening stock and deducting closing stock physically verifed by the management.

5. The Company was granted sales tax benefit in accordance with the provisions of Rule 28C of Haryana General Sales Tax Rules, 1975 for the period from 1st August, 2001 to 31st July, 2015. The ceiling amount of concession to be availed of during the entitlement period is Rs. 5,644 million. Till 31st March 2014, the Company has availed of / claimed sales tax benefit amounting to Rs. 2,585 million (Previous year Rs. 2,483 million).

6. The scheme of amalgamation of Suzuki Powertrain India Limited (SPIL) with the Company as approved by the High Court of Delhi became effective on 1st April 2012 on completion of all the required formalities on 17th March 2013. The scheme envisaged transfer of all properties, rights and powers and liabilities and duties of the amalgamating company to the amalgamated company.

The amalgamation was accounted for in the previous year under the "Pooling of Interest Method" as prescribed by the Accounting Standard 14 "Accounting for Amalgamations" notifed under Companies (Accounting Standards) Rules.

The assets and liabilities of the amalgamating company were accounted for in the books of account of the Company in accordance with the approved scheme in the previous year.

7. The Company has considered "business segment" as its primary segment. The Company is primarily in the business of manufacture, purchase and sale of motor vehicles, components and spare parts ("automobiles"). The other activities of the Company comprise facilitation of pre-owned car sales, feet management and car fnancing. The income from these activities, which are incidental to the Company''s business, is not material in financial terms but such activities contribute significantly in generating the demand for the products of the Company. Accordingly, the Company operates in one business segment and thus no business segment information is required to be disclosed.

The "Geographical Segments" have been considered for disclosure as the secondary segment, under which the domestic segment includes sales to customers located in India and the overseas segment includes sales to customers located outside India.

8. DERIVATIVE INSTRUMENTS OUTSTANDING AT THE BALANCE SHEET DATE: 1 (a) Forward Contracts against imports and royalty:

- Forward contracts to buy JPY 9,000 million (Previous year JPY 45,200 million) against USD amounting to Rs. 5,363 million (Previous year Rs. 26,053 million).

- Forward contracts to buy USD 30 million (Previous year USD 20 million) against INR amounting to Rs. 1,824 million (Previous year Rs. 1,086 million).

The above contracts have been undertaken to hedge against the foreign exchange exposures arising from transactions like import of goods and royalty.

(b) Forward Contracts / Range Forward Contract against exports:

Forward contracts to sell USD Nil (Previous year USD 150 million) against INR amounting to Rs. NIL (Previous year Rs. 8,144 million). The above contracts have been undertaken to hedge against the foreign exchange exposures arising from export of goods.

(c) USD Floating rate/INR Floating rate cross-currency swap:

Outstanding USD/INR Floating rate cross-currency swap USD 69.51 million (Previous year USD 69.51 million) amounting to Rs. 4,165 million (Previous year Rs. 3,773 million).

(d) Forward Contracts against buyers credit :

Forward Contracts to buy JPY 2,244 millions (Previous year JPY 798 millions) against INR amounting to Rs. 1,303 million (Previous year Rs. 460 million).

Forward Contracts to buy USD 142 millions (Previous year USD 165 millions) against INR amounting to Rs. 8,500 million (Previous year Rs. 8,933 million).

The above contracts have been undertaken to hedge against the foreign exchange exposure arising from foreign currency loan.

9 Previous Year''s figures have been recasted / regrouped where considered necessary to make them comparable with the current year''s figures.


Mar 31, 2013

1. Outstanding commitments under Letters of Credit established bythe Company aggregate Rs. 6,488 million (Previous yearRs. 1,773 million).

2. Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amount to Rs. 28,760 million (Previous yearRs. 26,338 million).

3. Consumption of raw materials and components has been computed by adding purchases to the opening stock and deducting closing stock physically verified bythe management.

4. The Company was granted sales tax benefit in accordance with the provisions of Rule 28C of Haryana General Sales Tax Rules, 1975 for the period from 1st August 2001 to 31st July 2015. The ceiling amount of concession to be availed of during the entitlement period is Rs. 5,644 million. Till 31st March 2013, the Company has availed of / claimed sales tax benefit amounting to Rs. 2,483 million (Previous year Rs. 2,331 million).

5. The scheme of amalgamation of Suzuki Powertrain India Limited (SPIL) with the Company as approved by the High Court of Delhi has become effective on 1st April 2012 on completion of all the required formalities on 17th March 2013.The scheme envisages transfer of all properties, rights and powers and liabilities and duties ofthe amalgamating company to the amalgamated company.

SPIL was primarily engaged in the business of engineering, manufacturing, assembling and selling all kinds of powertrain parts and components for automobiles, which includes engines and transmissions for such engines and their components like transmission cases, gears, shafts and yorks.

The amalgamation was accounted for under the "Pooling of Interest Method" as prescribed by the Accounting Standard 14"Accounting for Amalgamations" notified under Companies (Accounting Standards) Rules.

The assets and liabilities ofthe amalgamating company have been accounted for in the books of account of the Company in accordance with the approved scheme.

i) The assets and liabilities as at 1st April 2012 were incorporated at book value of SPIL, subject to adjustments made to ensure uniformity of accounting policies.

ii) The authorised capital of SPIL after splitting each share into 2 shares of face value of Rs. 5 each has became part of authorised share capitalofthe Company.

iii) The balance of''Surplus of Statement of Profit and Loss'' of SPIL amounting to Rs. 3,565 million (net of adjustments on account of policy differences of Rs. 275 million) as at 1st April 2012 have been included in the balance of ''Surplus of Statement of Profit and Loss'' ofthe Company.

iv) 395,100,000 equity shares of Rs. 10 each fully paid in SPIL held as investment by the Company have been cancelled and extinguished.

v) The equity shareholders of SPIL have, for every 70 fully paid equity shares of Rs. 10 each held as on the record date, been issued 1 fully paid equity share of Rs. 5 each of the Company. Accordingly, the Company has issued 13,170,000 equity shares on 29th March 2013 thereby increasing its equity capital to Rs. 1,510 million.

vi) The surplus amounting to Rs. 9,153 million, arising as a result of the amalgamation, i.e. excess of the value of net assets of SPIL transferred to the Company over the paid-up value of shares issued to equity shareholders of SPIL, has been added to the reserves of the Company.

6. The Company has considered "business segment" as its primary segment. The Company is primarily in the business of manufacture, purchase and sale of motor vehicles, components and spare parts ("automobiles"). The other activities of the Company comprise facilitation of pre-owned car sales, fleet management and car financing.The income from these activities, which are incidental to the Company''s business, is not material in financial terms but such activities contribute significantly in generating the demand for the products ofthe Company. Accordingly, the Company operates in one business segment and thus no business segment information is required to be disclosed.

The "Geographical Segments" have been considered for disclosure as the secondary segment, under which the domestic segment includes sales to customers located in India and the overseas segment includes sales to customers located outside India.

7. DERIVATIVE INSTRUMENTS OUTSTANDING AT THE BALANCE SHEET DATE: 1(a) Forward Contracts against imports and royalty:

- Forward contracts to buyJPY 45,200 million (Previous yearJPY 48,477 million) against USD amounting to Rs. 26,053 million (Previous yearRs. 29,794 million).

- Forward contracts to buy USD 20 million (Previous year USD 90 million) against INR amounting to Rs. 1,086 million (Previous year Rs. 4,579 million).

The above contracts have been undertaken to hedge againstthe foreign exchange exposures arising from transactions like royalty and import of goods.

(b) Forward Contracts / Range Forward contract against Exports:

- Forward contracts to sell USD 150 million (Previous year USD 25 million) against INR amounting to Rs. 8,144 million (Previous yearRs. 1,272 million).

- Forward contracts to sell EURO NIL (Previous year EURO 28 million) against INR amounting to NIL (Previous yearRs. 1,901 million)

- Range Forward Contracts to sell USD NIL (Previous year USD 30 million) against INR amounting NIL (Previous year Rs. 1,526 million)

The above contracts have been undertaken to hedge against the foreign exchange exposures arising from export of goods.

(c) USD Floating rate/INR Floating rate cross-currency swap:

Outstanding USD/INR Floating rate cross-currency swap is USD 69.51 million (Previous year USD 31.175 million) amounting to Rs. 3,773 million (Previous year Rs. 1,586 million)

(d) Forward Contracts against Buyers Credit :

Forward Contracts to buyJPY 798 million (Previous year JPY 3,961 million) against INR amounting to Rs. 460 million (Previous year Rs. 2,434 million).

Forward Contracts to buy USD 165 million (Previous year USD 108 million) against INR amounting to Rs. 8,933 million (Previous year Rs. 5,495 million).

The above contracts have been undertaken to hedge against the foreign exchange exposure arising from foreign currency loan.

8. STATEMENT OF TRANSACTIONS WITH RELATED PARTIES

Holding Company

Suzuki Motor Corporation Joint Ventures

Mark Exhaust Systems Limited

BeLLsonica Auto Component India Private Limited

FMI Automotive Components Limited

Krishna Auto Mirrors Limited

Inergy India Automotive Components Limited

Maruti Insurance Broking Private Limited

Manesar Steel Processing India Private Limited

Subsidiaries

Maruti Insurance Agency Services Limited

Maruti Insurance Agency Logistics Limited

Maruti Insurance Distribution Services Limited

Maruti Insurance Agency Network Limited

Maruti Insurance Agency Solutions Limited

True Value Solutions Limited

Maruti Insurance Business Agency India Limited

Maruti Insurance Broker Limited

JJ. Impex (Delhi) Private Limited **

Key Management Personnel

Mr Shinzo Nakanishi

Mr.Shuji Oishi (upto 28th April 2012)

Mr Tsuneo Ohashi Mr Keiichi Asai

Mr.Kazuhiko Ayabe (w.e.f 28th April 2012) Associates

Asa hi India Glass Limited

Bharat Seats Limited

Caparo Maruti Limited

Climate Systems India Limited

Denso India Limited

Jay Bharat Maruti Limited

Krishna Maruti Limited

Machino Plastics Limited

SKH Metals Limited

Nippon Thermostat (India) Limited

Sona Koyo Steering Systems Limited

Magneti Marelli Powertrain India Private Limited

Suzuki Powertrain India Limited*

Fellow Subsidiaries (Only with whom the Company had transactions during the current year)

Jinan Oingqi Suzuki Motorcycle Co., Limited

Magyar Suzuki Corporation Limited

PT Suzuki indomobil Motor (Former PT Indomobil Suzuki International)

Suzuki Australia Pty. Limited

Suzuki Austria Automobile Handels G.m.b.H.

Suzuki Auto South Africa (Pty) Limited Suzuki Cars (Ireland) Limited Suzuki France S.A.S.

Suzuki GB PLC

Suzuki International Europe G.m.b.H.

Suzuki Italia S.P.A.

Suzuki Motor (Thailand) Co., Limited

Suzuki Motor lberica,S.A.U.

SUZUKI MOTOR POLAND SP.Z.O.O. (Former Suzuki Motor Poland Limited)

Suzuki Motorcycle India Private Limited Suzuki New Zealand Limited Suzuki Philippines Inc.

Taiwan Suzuki Automobile Corporation


Mar 31, 2012

Rights, preferences and restriction attached to shares

The Company has one class of equity shares with a par value of Rs. 5 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

a) Provision for litigation / disputes represents the estimated outflow in respect of disputes with various government authorities.

b) Provision for warranty and product recall represents the estimated outflow in respect of warranty and recall cost for products sold.

c) Provision for others represents the estimated outflow in respect of disputes or other obligations on account of excise duty, export obligation etc.

d) Due to the nature of the above costs, it is not possible to estimate the timing / uncertainties relating to their outflows as well as the expected reimbursements from such estimates.

(1) Freehold land costing Rs. 5,268 million (Previous year Rs. 5,304 million) is not yet registered in the name of the Company. A part of this land has been made available to group companies.

(2) Plant and Machinery (gross block) includes pro-rata cost amounting to Rs. 374 million (Previous year Rs. 374 million) of a Gas Turbine jointly owned by the Company with its group companies and other companies.

(3) Freehold Land includes 600 acres of land allotted to the Company by Haryana State Industrial Development Corporation, a part of which has been made available to group companies.

(4) Additions to free hold land includes Rs. 2,354 million accrued for as price adjustment claimed by the authority which alloted the land in an earlier year.

c. Defined Benefit Plans and other Long Term Benefits

a) Contribution to Gratuity Funds - Employee's Gratuity Fund.

b) Leave Encashment/ Compensated Absence.

c) Retirement Allowance

d) Provident Fund

The return on the investment is the nominal yield available on the format of investment as applicable to Approved Gratuity Fund under Rule 101 of Income Tax Act 1961.

Expected contribution on account of Gratuity for the year ending 31st March, 2012 can not be ascertained at this stage.

1. CONTINGENT LIABILITIES:

a) Claims against the Company disputed and not acknowledged as debts:

As at As at 31.03.2012 31.03.2011

(i) Excise Duty

(a) Cases decided in the Company's favour by Appellate authorities and 1,065 1,066 for which the department has filed further appeal

(b) Show cause notices / orders on the subjects covered in (i) (a) above 1,652 1,932 for other periods

(c) Cases pending before Appellate authorities in respect of which the 14,842 10,631 Company has filed appeals and show cause notices for other periods

TOTAL 17,559 13,629

Amount deposited under protest 3 3

(ii) Service Tax

(a) Cases decided in the Company's favour by Appellate authorities and 11 357 for which the department has filed further appeal

(b) Show cause notices / orders on the subjects covered in (ii) (a) above 3,690 2,775 for other periods

(c) Cases pending before Appellate authorities in respect of which the 1,729 3,348 Company has filed appeals and show cause notices for other periods

TOTAL 5,430 6,480

Amount deposited under protest 3 2

(iii) Income Tax

(a) Cases decided in the Company's favour by Appellate authorities and 6,230 6,491 for which the department has filed further appeal

(b) Cases pending before Appellate authorities / Dispute Resolution 9,699 6,002 Panel in respect of which the Company has filed appeal

TOTAL 15,929 12,493

Amount deposited under protest 6,135 4,178

(iv) Customs Duty

Cases pending before Appellate authorities in respect of which the 118 118 Company has filed appeals

Amount deposited under protest 22 22

(v) Sales Tax

Cases pending before Appellate authorities in respect of which the 50 50 Company has filed appeals

Amount deposited under protest 2 2

(v) Claims against the Company for recovery of Rs. 576 million (Previous year Rs. 597 million) lodged by various parties

(vi) The company has received and accounted for a demand for an interim price adjustment of Rs. 2,354 million for a freehold land acquired from a state government authority in an earlier year. The amount payable, if any, on account of final price adjustment can not be ascertained at this stage.

b) The amounts shown in the item (a) represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.

2. Outstanding commitments under Letters of Credit established by the Company aggregate Rs. 1,773 million (Previous year Rs. 9,294 million).

3. Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amount to Rs. 26 338 million (Previous year Rs. 25,943 million).

4. Consumption of raw materials and components has been computed by adding purchases to the opening stock and deducting closing stock physically verified by the management.

5. The Company was granted sales tax benefit in accordance with the provisions of Rule 28C of Haryana General Sales Tax Rules, 1975 for the period from 1st August, 2001 to 31st July, 2015. The ceiling amount of concession to be availed of during entitlement period is Rs. 5,644 million. Till 31st March 2012, the Company has availed of / claimed sales tax benefit amounting to Rs. 2,331 million (Previous year Rs. 2,118 million).

6. The Company has considered " business segment" as the primary segment .The Company is primarily in the business of manufacture, purchase and sale of motor vehicles and spare parts ("automobiles"). The other activities of the Company comprise facilitation of pre-owned car sales, fleet management and car financing. The income from these activities, which are incidental to the Company's business, is not material in financial terms but contribute significantly in generating the demand for the products of the Company. Accordingly, the Company has considered "Business Segment"as the primary segment and thus no business segment information is required to be disclosed.

The "Geographical Segments" have been considered for disclosure as the secondary segment, under which the domestic segment includes sales to customers located in India and the overseas segment includes sales to customers located outside India.

Notes:-

a) Domestic segment includes sales and services to customers located in India.

b) Overseas segment includes sales and services rendered to customers located outside India.

c) Unallocated revenue includes interest income, dividend income and profit on sale of investments.

d) Unallocated assets include other deposits, dividend bank account and investments.

e) Segment assets includes fixed assets, inventories, sundry debtors, cash and bank balances (except dividend bank account), other current assets, loans and advances (except other deposits).

f) Capital expenditure during the year includes fixed assets (tangible and intangible assets) and net additions to capital work in progress.

Notes:

* Licensed Capacity is not applicable from 1993-94.

** Installed Capacity is as certified by the management and relied upon by the auditors, being a technical matter. Previous Year figures are in brackets.

Notes :

1. Traded goods comprise vehicles, spares, components and dies and molds. During the year 561 vehicles (previous year 331 vehicles) were purchased

2. Closing Stock of vehicles is after adjustment of 61 vehicles (previous year - 22) totally damaged.

3. Sales quantity excludes own use vehicles 961 Nos. (previous year - 962 Nos.)

4. Sales quantity excludes sample vehicles 188 Nos. (previous year - 81 Nos.)

5. Previous year figures are in brackets.

* In view of the innumerable sizes/numbers (individually less than 10%) of the components, spare parts and dies and moulds it is not possible to give quantitative details.

7. derivative INSTRUMENTS outstanding AT THE balance SHEET DATE:

1 (a) Forward Contracts:

- Forward contracts to buy JPY 48,477 million (Previous year JPY 9,200 million) against USD amounting to Rs. 29,794 million (Previous year Rs. 4,934 million).

- Forward contracts to buy USD 90 million (Previous year USD 196.50 million) against INR amounting to Rs. 4,579 million (Previous year Rs. 8,764 million). The above contracts have been undertaken to hedge against the foreign exchange exposures arising from transactions like royalty, import of goods and fixed assets.

(b) Forward Contracts / Range Forward contract against Exports:

- Forward contracts to sell USD 25 million (Previous year USD 15 million) against INR amounting to Rs. 1,272 million (Previous year Rs. 669 million).

- Forward contracts to sell EURO 28 million (Previous year EURO 100 million) against INR amounting to Rs. 1,901 million (Previous year Rs. 6,316 million)

- Forward contracts to sell GBP NIL (Previous year GBP 4 million) against INR amounting to NIL (Previous year Rs. 286 million)

- Range Forward Contracts to sell USD 30 million (Previous year USD 69 million) against INR amounting Rs. 1,526 million (Previous year Rs. 3,077 million).

The above contracts have been undertaken to hedge against the foreign exchange exposures arising from export of goods.

(c) USD Floating rate/INR Floating rate cross-currency swap: Outstanding USD/INR Floating rate cross- currency swap is USD 31.175 million (Previous year USD 62.35 million) amounting to Rs. 1,586 million (Previous year Rs. 2,781 million)

(d) Forward Contracts against Buyers Credit :

Forward Contracts to buy JPY 3,961 million (Previous year Nil) against INR amounting to Rs. 2,434 million Forward Contracts to buy USD 108 million (Previous year Nil) against INR amounting to Rs. 5,495 million. The above contracts have been undertaken to hedge against the foreign exchange exposure arising from foreign currency loan.

8. The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2010

1) Contingent Liabilities:

a) Claims against the Company disputed and not acknowledged as debts:

i. Sales-tax demands of Rs. 50 million (Previous year Rs. 50 million). Against this, the Company has deposited a sum of Rs. 2 million (Previous year Rs. 2 million) under protest.

ii. Excise duty demands/show-cause notices of Rs. 11,192 million (Previous year Rs. 4,799 million). Against this, the Company has deposited a sum of Rs. 3 million (Previous year Rs. 23 million) under protest.

iii. Customs duty demands of Rs. 118 million (Previous year Rs. 118 million). Against this, the Company has deposited a sum of Rs. 22 million (Previous year Rs. 22 million) under protest. iv. Income-tax demands of Rs. 8,936 million (Previous year Rs. 4,466 million). Against this, the Company has deposited a sum of Rs. 3,797 million under protest (Previous year Rs. 3,802 million).

v. Service-tax demands of Rs. 2,212 million (Previous year Rs. 1,234 million).

vi. Claims against the Company for recovery of Rs. 480 million (Previous year Rs.472 million) lodged by various parties.

b) As co-lessee in agreements entered into between various vendors of the Company, as lessee, and banks as lessors for leasing of dies and moulds of certain models aggregating Rs. 2 million (Previous year Rs. 2 million).

c) The amounts shown in the item (a) represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.

The amount shown in item (b) represent guarantees given in the normal course of the Companys operations and are not expected to result in any loss to the Company on the basis of the beneficiaries fulfilling their ordinary commercial obligations.

2) Outstanding commitments under Letters of Credit established by theCompany aggregating Rs. 3,977 million (Previous year Rs. 2,255 million).

3) Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amount to Rs.l 7,408 million (Previousyear Rs. 11,593 million).

4) a) Consumption of raw materials and components has been computed by adding purchases to the opening stock and deducting closing stock verified physically by the management. b) Consumption of raw material and components includes a provision of Rs. 7 million (Previous year Rs. 9 million) on account of estimated reversal of tax benefit on quantity differences on inputs.

5) The Company was granted sales tax benefit in accordance with the provisions of Rule 28C of Haryana General Sales Tax Rules, 1975 for the period from 1 st August, 2001 to 31 st July, 2015. The ceiling amount of concession to be availed of during the entitlement period is Rs. 5,644 million.Till 31 st March, 2010, the Company has availed of sales tax benefit amounting to Rs. 1,675 million (Previousyear Rs. 1,675 million).

6) "The Company has considered" business segment" as the primary segment .The Company is primarily in the business of manufacture, purchase and sale of motor vehicles and spare parts ("automobiles"). The other activities of the Company comprise facilitation of Pre-Owned Car sales, Fleet Management and Car Financing, The income from these activities, which are incidental to the Companys business, is not material in financial terms but contribute significantly in generating the demand for the products of the Company. Accordingly, the Company has considered "Business Segment" as the primary segment and thus no business segment information is required to be disclosed.

The "Geographical Segments" has been considered for disclosure as secondary segment, under which domestic segment includes sales to customer located in India and overseas segment includes sales to customers located outside India.

7)The Balance due for more than 30 days to Micro and Small Scale Enterprises as at March 31, 2010 is Rs. 0.1 million (Previous year Rs. 0.2 million). The above mentioned amount of Rs. 0,1 million (Previous year 0.2 million) due to these enterprises is under reconciliation as at March 31,2010. The Company pays its vendors within 30 days and no interest during the year has been paid or is payable under the terms of The. Micro, Small and Medium Enterprises Development Act, 2006.

8) The Company has calculated the various benefits provided to employees as under A. Defined Contribution Plans

a) Superannuation Fund

b) Post Employment Medical Assistance Scheme

c) Provident Fund

9) STATEMENT OF TRANSACTIONS WITH RELATED PARTIES

Holding Company

Suzuki Motor Corporation Joint Ventures

JJ. impex (Delhi) Private Limited Mark Exhaust Systems Limited Bellsonica Auto Component India Pvt Ltd. FM! Automotive Components Ltd. Krishna Auto Mirrors Limited (Krishna ishizak! Auto Limited)

Subsidiaries

Maruti Insurance Agency Services Ltd. Maruti Insurance Agency Logistics Ltd. Maruti Insurance Distribution Services Ltd. Maruti insurance Agency Network Ltd. Maruti Insurance Agency Solutions Ltd. True Value Solutions Ltd. Maruti Insurance Business Agency India Ltd.

Key Management Personnel

MrShinzo Nakanishi Mr Shuji Oishi MrTsuneoOhashi Mr Kehcht Asai

Associates

Asahi India Glass Limited

Bharat Seats Limited

Caparo Maruti Limited

Climate Systems India Limited

Denso india Limited

Jay Bharat Maruti Limited

Krishna Maruti Limited

Machine Plastics Limited

SKH Metals Limited

Nippon Thermostat (India) Limited

Sona Koyo Steering Systems Limited

Citicorp Maruti Finance Limited

Maruti Countrywide Auto Financial Services Limited

Magneti Marelli Powertraln india Pvt. Ltd.

Suzuki Powertrain india *

Fellow Subsidiaries (Onty with whom the Company had transactions during the year)

Suzuki international Europe G.m.b.H.

Suzuki Motor iberica, S.A.U.

Suzuki Italia S.P.A.

Suzuki Austria Automobile Handels G.m.b.H.

Suzuki France 5.A.S.

Magyar Suzuki Corporation Ltd.

Suzuki GB PLC

Suzuki Cars (Ireland) Ltd.

Suzuki Motor Poland Sp. Z.O.CU Formerly Suzuki Motor Poland Ltd.)

Suzuki Motorcycle India Private Ltd.

PT Suzuki indomobi! Motor (Formerly PT Indomobil Suzuki International)

Suzuki Philippines Inc.

Suzuki Automobile (Thailand) Co. Ltd.

Suzuki Australia Pty. Ltd.

Suzuki New Zealand Ltd.

Suzuki Auto South Africa (Pty) Ltd.

Taiwan Suzuki Automobile Corporation

10) Previous Years figures have been recast / regrouped where considered necessary to make them comparable with the current years figures.

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