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					                               Compiled by : Religare Technova Global Solutions Limited




                                                                  Quest Unlimited




OUR
VISION

The Leader in the Indian Automobile
Industry, Creating Customer Delight and
Shareholder's Wealth; A pride of India.

                   We believe our core values drive us
                   in every endeavour.
                       CUSTOMER OBSESSION
                       FAST, FLEXIBLE & FIRST MOVER
                       INNOVATION & CREATIVITY
                       NETWORKING & PARTNERSHIP
                       OPENNESS & LEARNING




                    Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED         01
                                                             Compiled by : Religare Technova Global Solutions Limited




Quest Unlimited




QUEST
UNLIMITED

The Company completed 25 years on December 14, 2008. We acknowledge the
milestone by expressing gratitude to all our partners and stakeholders.

This quarter century has been one of profound transformation for India, and for
our industry. From a nation priding on self reliance and tentative about facing the
world, India is now a vibrant, self-assured economic entity with abundant
promise for the future...




02   MARUTI SUZUKI INDIA LIMITED   Annual Report 2008 - 09
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...India's car industry has evolved from next-to-        Our Quest has led us constantly to look beyond
nothing to a sector that now fulfils a wide              the near and immediate, explore frontiers,
variety of customer needs, plays a critical role in      forge partnerships and connect with India in
growing incomes and employment and nurtures              all her richness and diversity. We may have
a global aspiration.                                     met expectations in certain areas, fallen short
                                                         in others.
Maruti Suzuki is privileged to have lived through
this change and, on occasion, contributed to it.         Through our theme for last year, A Million
While remaining focused on our business, we              Promises, we sought to convey that we would
tried never to lose sight of our larger social           strive to excel in all the multiple facets of our
agenda: build the foundation for India's modern          business. While our business is about offering a
auto manufacturing industry, promote fuel                range of quality products, it also demands a
efficiency and environment friendliness and              robust sales and service network and the ability
disseminate the best of Japanese management              to partner and nurture a supplier base over long
practices across corporate India.                        periods of time. Success in this business, we said,
                                                         asks for “stamina and patience, order and
                                                         creativity, skills hard and soft and it needs all of
                                                         them to co-exist in the right proportion.”

                                                         During the past year, in the midst of a market
                                                         downturn, we have taken decisive steps forward
                                                         in enhancing our R & D capability, unveiled a
                                                         national road safety mission, expanded capacity
                                                         to a million cars, got our new K-series engine
                                                         programme on stream and launched the A-star
                                                         in India and Europe and kept focus on
                                                         recruitment and people development. We have
                                                         not allowed the short term to interfere and cloud
                                                         our vision for the future.
SUCCESS IN THIS
BUSINESS, WE SAID,                                       In the past few months, we have often been
                                                         asked: “After 25 years of leadership, what
ASKS FOR “STAMINA                                        next?” It is not for us to predict the future. Other
AND PATIENCE, ORDER                                      than to say that the Quest is unceasing. We
                                                         continue on our journey, uninterrupted and
AND CREATIVITY, SKILLS                                   without distraction, avoiding complacence and
HARD AND SOFT AND IT                                     flamboyance, to explore newer frontiers,
                                                         strengthen and expand partnerships, connect
NEEDS ALL OF THEM TO                                     with the layers and layers of a still larger
CO-EXIST IN THE RIGHT                                    world and embed ourselves deeper in the
                                                         lives of people.
PROPORTION.”

                                             Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED           03
                                                               Compiled by : Religare Technova Global Solutions Limited




COMPANY AT
A GLANCE

                  Maruti Suzuki's
           SILVER JUBILEE YEAR                                722, 144 DOMESTIC SALES
                                                                in 2008-09, a growth of 1.5%
                       in India



          OVER 7 MILLION CARS                                   70,023 EXPORTS SALES
         produced & sold cumulatively                          in 2008-09, a growth of 32.1%




            OVER 500,000 CARS                                     Rs. 214,538 MILLION
              exported cumulatively                               total income in 2008-09,
                                                                    a growth of 14.28%



     ABOVE 50% MARKET SHARE                                       Rs. 12,187 MILLION
        in passenger cars and van type
            vehicles for all 25 years                        recorded profit after tax in 2008-09




04   MARUTI SUZUKI INDIA LIMITED   Annual Report 2008 - 09
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                                                                             Quest Unlimited




Ist IN CUSTOMER SATISFACTION                  ONE MILLION UNITS/ ANNUM
     for 9 consecutive years                                  total capacity
      - JD Power CSI Survey



    681 SALES OUTLETS                                 GURGAON FACILITY
          in 454 cities                           capacity 700,000 units/ annum




     2767 WORKSHOPS                                    MANESAR FACILITY
         in 1314 cities                            capacity 300,000 units/annum




315 PRE-OWNED CAR OUTLETS                               7159 EMPLOYEES
          in 181 cities                                      in March 2009




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CHAIRMAN'S MESSAGE



Our continuous efforts at cost cutting and improving productivity, even in
good times, have helped us in making reasonable profits despite the impact
of higher commodity prices and a weaker rupee.




A land mark was achieved in 2008-09. Your company                       higher commodity prices and a weaker rupee. Even in 2008-09
completed 25 years of the start of sale of its first car in India. It   we had a small growth in sale volumes. We do not have idle
was on 14th December 1983 that the then Prime Minister, the             capacity and have not had to lay off our employees.
late Smt. Indira Gandhi, released the first Maruti 800 car. Maruti
Udyog Limited has had a very eventful and successful journey            The financial crisis has shown the danger of having incentive
since then. From a company which was started to produce                 schemes which distort values and prudent decision making,
100,000 cars a year, we have reached a production rate of a             and give scope for the greed factor to dominate top
million cars a year. Thanks to the support and confidence               management actions. Fortunately, we have followed policies
shown by our customers, we have a market share in excess of             which have been based on a good value system. We expect
55% in cars and vans. Maruti cars are exported to over 100              that by the time this recession ends, MSIL will emerge as an
countries and the volume of exports is likely to cross 100,000          even stronger company.
units in 2009-10. Export of small cars will be one of the major
elements of our future growth strategy.                                 Maruti was listed in 2003, and has been a consistent and strong
                                                                        performer on the stock exchange, giving handsome returns to
The world wide recession which started in 2008 has taught us            investors. The company is now a totally private company, with
many lessons and also confirmed the validity of our strategies.         government having exited. The company is now Maruti Suzuki
As a consequence, we have weathered the recession much                  India Limited.
better than those who are highly leveraged. We are practically
debt free and have a healthy cash balance. We have financed all         Thus there is much to be satisfied about. However, Maruti has
growth from internal resources. Our continuous efforts at cost          never been a company which has rested on its laurels. We have
cutting and improving productivity, even in good times, have            learned that continuous improvements have to be made. A
helped us in making reasonable profits despite the impact of            company needs to keep its eyes on the future and what it
                                                                        should be doing to bring greater delight to its customers and
                                                                        higher rewards to those who have invested in the equity of the
WHAT WE HAVE ACHIEVED TILL                                              company. The automobile industry in India is just coming of
                                                                        age and the potential for growth is huge. We have to find, and
NOW IS BECAUSE WE HAVE AN                                               implement, ways by which we can be major participants in
                                                                        realising this potential.
OUTSTANDING SET OF                                                      To do this, we have to rapidly develop our ability to design and
                                                                        manufacture small cars. Suzuki Japan is giving full support in
EMPLOYEES IN THE COMPANY.                                               this effort. We are in the process of acquiring land for building a
                                                                        modern research facility, complete with a test track of
THE WORKERS, SUPERVISORS,                                               international standards. The engineering manpower is being
                                                                        rapidly increased. At the same time, we are persuading our
ENGINEERS AND MANAGERS ALL                                              suppliers to establish their own engineering capabilities to
                                                                        design and test products, as otherwise our own efforts cannot
WORK AS A SINGLE TEAM FOR THE                                           be fully successful. To the extent necessary, we will support our
                                                                        vendors in this task.
GROWTH AND PROSPERITY OF
THE COMPANY.

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The continuous upgrading of component quality is, in fact, a     vendors and dealers, so that they can share the experiences of
necessary condition for MSIL to become a large supplier of       Maruti Suzuki in developing the potential of their employees.
small cars to the world markets. We have been working with       Strong dealers and vendors means a strong Maruti Suzuki.
our vendors in this area since the last 25 years. We are now
extending our scope of activity to ensure that tier 2 vendors    The future is exciting, and full of promise. The Indian economy
also adopt modern systems which will increase productivity       will be amongst the two having the highest rates of growth. We
and reduce costs. The small and mini scale industry would        expect that this government will accelerate the reform process
stand to benefit enormously from this effort.                    and build good infrastructure. As a consequence, companies
                                                                 with strong fundamentals will also grow rapidly. We are
What we have achieved till now is because we have an             prepared to take advantage of the opportunities which we see
outstanding set of employees in the company. The workers,        coming, and this will benefit our shareholders, customers and
supervisors, engineers and managers all work as a single team    employees. The next 25 years should be no less successful than
for the growth and prosperity of the company. They are           the period which has elapsed.
partners in the growth and prosperity of Maruti Suzuki.
Continued success in the future requires that we keep on
finding ways to making them even more creative. At the same      R. C. Bhargava
time, we recognize that we should continue to help our           Chairman



                                                     Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                     07
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INTERVIEW WITH MR. S. NAKANISHI,
MANAGING DIRECTOR AND CEO



FLEXIBILITY
AND CAPABILITY FOR
A VOLATILE ECONOMY
Planning for uncertainty for us would mean building flexibility and agility
throughout our value chain. It means speed. Lower response times.
Faster decision making. A positive approach to change.




Last year was a year of challenges for the auto industry. In         progressive and have high aspirations. The governments are
the past few months there has been good growth. What do              sensitive and balanced and the economy is resilient and stable.
you see as the way forward?                                          All this will help it to grow steadily for a long time. However,
Last year, we had issues like limited retail finance availability    there are infrastructure and talent availability issues. If these
and a low consumer sentiment. The scope for reviving the             are overcome, perhaps the Indian market will grow at quite a
domestic market through discounts was limited by                     fast pace. In our case, thanks to our engineers, capacity
commodity inflation and the adverse foreign exchange                 expansion lead times are generally short, between one to two
movement. The market picked up in the fourth quarter with            years, and this gives us room to calibrate our expansion and at
manufacturers' efforts and positive government intervention.         the same time stretch our existing capacities.
For the first five months of the calendar year 2009, the domestic
passenger vehicle market has grown by 1.6% and Maruti                India is gradually becoming a small car hub for exports
Suzuki has grown by 11.6%.                                           with Maruti and Hyundai new export-dedicated models.
                                                                     What are your long term plans in this regard?
We are optimistic, but given the dynamic market situation,           India is gradually achieving global economies of scale in compact
both in India and all over the world, we think we have to accept     car manufacturing both with auto manufacturers and auto
uncertainty and consciously plan for it. Planning for                component manufacturers. Over the years, we have worked with
uncertainty for us would mean building flexibility and agility       our component manufacturers in technology, quality and
throughout our value chain. It means speed. Lower response           reliability. This has enabled the industry to reach a level of quality in
times. Faster decision making. A positive approach to change.        manufacturing that we can hope to export respectable volumes.
We are realigning our thinking and our dealers and vendors'          The infrastructure in the country is also improving and while we
thinking on these lines. We have about 15,000 sales people to        have commissioned a Roll-on Roll-off terminal at Mundra port, we
feel the pulse of the customer. We are relying on them and will      are also working on a direct railway link from our Manesar
watch the market quarter to quarter, month to month.                 assembly line to this terminal. Our world strategic model, A-star
                                                                     has been launched in many countries and customer feedback is
How do you see the growth potential of the Indian car                positive. Nissan is buying the same product from us and retailing it
market in the medium to long term?                                   under the “Pixo” badge. In a stable year in the future, our total
                                                                     exports should reach significant levels. If there is further
Our parent Company, Suzuki Motor Corporation (Suzuki), has
                                                                     opportunity beyond that also we can consider scaling up further
been optimistic on the potential of this country much before
                                                                     but at the same time, we should strengthen our back end. Which
the high economic growth witnessed in this decade. And
                                                                     means build quality and reliability in India's second tier and third
today, India occupies a much larger role in the Suzuki frame of
                                                                     tier vendors. It also means strengthening the logistics link from our
things than ever before. It has a big and growing middle class. It
                                                                     factory to the port.
has a huge young population. The people are intelligent,


08    MARUTI SUZUKI INDIA LIMITED       Annual Report 2008 - 09
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What roles are you planning for Maruti and Suzuki, Japan in         How is Maruti Suzuki preparing for intensified competition
technology and R&D for future models of Maruti Suzuki?              in the next few years?
The rapid growth of the Indian market and the promise of            I would like to think in terms of what Maruti Suzuki is doing to
Indian talent have given a lot of confidence to Suzuki. The view    prepare for the evolving customer in the next few years. That
is that though Suzuki models have been embraced very well by        for us, takes care of competition also.
the Indian customer, the growth in the Indian market deserves
and needs an additional local R&D capability to help keep
                                                                    Our biggest area of focus is the Product. We would continue to
refreshing our model portfolio. At the same time, the success of
                                                                    offer models with newer technologies, with more fuel efficiency
Indian engineers and managers encourages us to think of
                                                                    and economy, models which are cleaner and safer and more
larger global roles for them.
                                                                    exciting, models that meet more and more mobility needs. For
                                                                    this, we are scaling up our R&D capability. We have to strengthen
Suzuki will continue providing technology to Maruti for global      our back end, which means institutionalizing quality and
platforms. Indian engineers will focus on the Indian market and     manufacturing excellence at the 2nd tier and 3rd tier vendors.
come out with India specific models apart from bringing             We have to ensure regular training of our dealer sales people and
customized versions of global models to India. In addition, they    service technicians, so that their actions and interactions are in
will try to develop new models on existing platforms and            step with the changes in customer profile and expectations. We
powertrains with alternate fuel technologies.                       are also complementing their efforts by opening cars and spare



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Quest Unlimited




parts stockyards in the country for serving the customers faster       We do not know what future has in store for us. For instance,
and better. We are opening brand centers in a number of cities in      five years ago we thought investment is all about plant
India to engage with the customer.                                     capacity expansion; we did not know that we would need to
                                                                       invest in a big way in non-production areas like brand centers
All such efforts are actually driven by the zeal, the ingenuity and    and stockyards for our marketing and a test track and crash test
the capability of people. So, it all starts with people                facility for our R&D. We need to stay prepared for any such
development. My effort is to empower them and they will take           requirement. There are many such companies who faced major
care of the rest.                                                      problems, because they did not have cash when they needed it
                                                                       most. Though we will not shy away from making whatever
                                                                       investments the market and technology environment would
How do you think will profit margins move in the future for            need, we will largely try to stay within our area of core
Maruti Suzuki? Is it possible to go to March '07 levels (Net           competence. In our operations, we try to work within minimum
Profit margins above 10%)?                                             budgets. With our shareholders, we try to maintain a dividend
Barring last year, Maruti Suzuki has been able to generate good        pay-out ratio and keep striving to generate long term capital
margins till now. In the short term, some reversal of commodity        appreciation to honour the trust they have put in us.
price increases and better forex management may help improve
margins. In the long term, a more competitive environment will
                                                                       What are your biggest concerns about the business? What
ask for faster product refreshment, more investment in quality,
                                                                       kind of issues takes most of your time?
technology and brand, which may put a downward pressure on
margins. While we will try to generate more profits through            Interesting. Maruti Suzuki is a big family now with four plants,
exciting products, work on more productivity, cost reduction           nineteen related companies, several hundred vendors, dealers,
and economies of scale, the levels you have mentioned were             authorized service stations and other business associates. I am
unusual and we are not targeting those at present.                     concerned that the dealer salesman should treat our customer
                                                                       well; I am concerned that our vendors should have a good
                                                                       relationship with their workforce; I am concerned that our Tier 2
What are your plans on alternate powertrains like Diesel,              and 3 vendor technicians should be trained on the station
LPG, CNG and Hybrids?                                                  they work on; I am concerned that the person who drives our
Maruti Suzuki is conscious that it has to work on all technologies     export cars into the ship at Mundra, should learn safe professional
that help reduce the fuel cost for customers. So, the foremost is      driving. Similarly I am cautious of the stock levels in the value chain;
bringing to India, high performance, high fuel efficiency gasoline     I am cautious that we always maintain the balance between
engine technology, like the K-series engines. Next, our diesel         profitability and growth; I am cautious that we should not be
engine performance has been received well by the market and            missing any opportunity in the Indian and export markets.
though we do not have more options currently than the 1.3 litre
diesel engine, we have expanded our manufacturing capacity to
                                                                       The only way this is possible in such a large family is by training,
200,000 units per year. We were the first Company to launch cars
                                                                       developing and empowering people. By motivating people. How
with inhouse LPG assembly. CNG availability is expected to see a
                                                                       do we do that? I think it starts from the top. I want to consciously
major boost in the country in the next few years and if the city gas
                                                                       give a lot of operating freedom to our managing executive officers
distribution expands can help see more CNG proliferation in cars.
                                                                       in the hope that they will feel like treating their team in the same
We are working on next generation technologies in this area.
                                                                       way and vendors and dealers also copy the example.

Though hybrids in compact cars are yet to prove their commercial
                                                                       Suzuki is pursuing Sustainability as a way of doing
attractiveness to the customer, Maruti Suzuki is working on a
                                                                       business in Japan. What is your approach to Sustainability
project “National Hybrid Propulsion Platform” in partnership with
                                                                       for Maruti Suzuki?
the government and other industry players. At an appropriate
time in the future, we may also ask Suzuki for support.                Sustainability is a concept that describes our core philosophy of
                                                                       growth very well. Suzuki wants to be a Company loved and trusted
                                                                       in the world for spearheading environment friendly technology
Maruti Suzuki has a very healthy cash position and is also             and processes. Similarly Maruti's genesis had been for a larger
generating net cash every year even after investment.                  purpose; to raise the level of manufacturing industry in India. While
What is your plan for this cash?                                       we are conscious of this starting aspiration, we are sensitive
We cannot afford to be complacent looking at our cash                  everyday that in the conduct of our business, we take care of all our
position. Organisations that start with their available cash or        stakeholders' interests and well being. In their sustained well-
their potential of leveraging may tend to make investments             being lies our longevity. This year we want to take it to a different
that are not in the best interest of their business. In fact our       level. We are adopting a professional methodology to map our
starting point should not be our cash position; it should be the       engagement with our stakeholders and share information of the
market and technology dynamics and the investment needs                economic, environmental and social impact of our business in a
that they may call for. This may be tomorrow; this may be five         transparent manner.
years hence.



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BOARD OF
DIRECTORS




                                              MR. R. C. BHARGAVA                     MR. SHINZO NAKANISHI
                                              Chairman                               Managing Director & CEO




 MR. AMAL GANGULI                               MR. TSUNEO OHASHI                       MR. KEIICHI ASAI
 Director                                       Director & Managing Executive           Director & Managing Executive
                                                Officer (Production)                    Officer (Engineering)



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                                                                                    Quest Unlimited




MR. SHUJI OISHI                 MR. OSAMU SUZUKI                          MR. KENICHI AYUKAWA
Director & Managing Executive   Director                                  Director
Officer (Marketing & Sales)




MR. DAVINDER SINGH BRAR         MS. PALLAVI SHROFF                        MR. MANVINDER SINGH BANGA
Director                        Director                                  Director




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Quest Unlimited




BUSINESS
HIGHLIGHTS


                                                          PROFIT BEFORE TAX                                                                                NET SALES
 EBIDTA & PROFIT BEFORE TAX                                          EBIDTA      NET SALES & PROFIT AFTER TAX                                       PROFIT AFTER TAX


     35,000 Rs. millions                                                         20,000 Rs. millions                                                                250,000
                                                           31,308                                                                            17,308
                                                                                 18,000                                                                             230,000
     30,000                                                                                                                        15,620
                                                 25,888                          16,000                                                                   203,583   210,000
                                                                    24,334
     25,000                                                                      14,000                                                                             190,000
                                        20,558                      25,030                                               11,891                          12,187
                                                           22,798                12,000
                               18,140                                                                                                                               170,000
     20,000                                                                                                                                       178,603
                                                                                 10,000                         8,536                                               150,000
                     13,104                      17,500
     15,000                                                                       8,000                                                 145,922                     130,000
                                                                        16,758
                                        13,049                                                        5,421
                                                                                  6,000                                        120,034                              110,000
     10,000 6,560
                                                                                                                     109,108
                              7,698                                               4,000                                                                             90,000
                                                                                                         90,812
      5,000                                                                                  1,464
     PROFIT                                                                       2,000           68,795                                                            70,000
     BEFORE         2,821
                                                                                  PROFIT                                                                            NET
        TAX                                                                        AFTER                                                                            SALES
     EBDITA                                                                          TAX
              2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09                                2003-04             2005-06             2007-08
                                                                                           2002-03             2004-05             2006-07               2008-09




                                                                                 EARNINGS PER SHARE &                                                BOOK VALUE
                                                                                 BOOK VALUE                                                   EARNINGS PER SHARE


                                                                                  70                                                                                   350
                                                                                                                                              60              323
                                                                                  60                                               54                                  300
                                                                                                                                                   291

                                                                                  50                                                                                   250
                                                                                                                     41             237                     42
                                                                                  40                                                                                   200
                                                                                                        30               189
                                                                                  30                          154                                                      150
                                                                                              124

                                                                                  20          19                                                                       100

                                                                                  10                                                                                   50
                                                                                 EARNINGS                                                                              BOOK
                                                                                 PER SHARE                                                                             VALUE
                                                                                 Rs.                                                                                   Rs.
                                                                                           2003-04     2004-05      2005-06    2006-07       2007-08      2008-09




14       MARUTI SUZUKI INDIA LIMITED                Annual Report 2008 - 09
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PROFIT AND LOSS RATIOS                                         MATERIAL COST
                                                               EMPLOYEE COST
AS % TO NET SALES                                               DEPRECIATION

84.0%                                                                             7.0%
            82.3%     6.2%
82.0%                                                                             6.0%
                                 Changed To Accelerated
                                     Depreciation Policy          79.8%
80.0%       4.7%                                                                  5.0%
                              4.3%
78.0%                77.3%                                                        4.0%
                              78.1%     76.8%                      3.5%
                                                           3.2%
                                                75.7%                             3.0%
76.0%       3.2%      3.3%                                76.4%
                                        2.4%
                                                 1.9%
74.0%                                                               2.3%          2.0%
                                        1.9%     2.0%      2.0%
                               1.8%
72.0%                                                                             1.0%
                                                                             EMPLOYEE
MATERIAL                                                                          COST
COST                                                                      DEPRECIATION

         2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09




MARUTI SUZUKI'S MARKET SHARE                                                                UNIT SALES:                                               DOMESTIC SALES
                                                                                                                                                         EXPORT SALES
IN PASSENGER VEHICLE (FY09)                                                                 DOMESTIC & EXPORT                                 TOTAL UNITS SOLD BY MSIL

                                                                                                                                                                      792,167
                                                                                             800,000                                                      764,842
         80.00%
                                                                    73.10%                   700,000                                            674,924

                                                                                             600,000                                561,822
         60.00%                                                                                                           536,301
                               52.20%                                                        500,000            472,122

         40.00%                                                                              400,000 362,415

                                                                                             300,000
         20.00%                                                                              200,000

                                                4.00%                                        100,000
           0.00%
     MARKET SHARE                                                                          DOMESTIC SALES                                                            TOTAL UNITS
IN THESE SEGMENTS                                                                            EXPORT SALES                                                           SOLD BY MSIL
                    A: Passenger Cars    B: Utility Vehicles   C: Multi Purpose                        2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
                                                                  Vehicles




                                                                              Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                                                  15
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OUR LATEST OFFERINGS
A-STAR




RITZ




16   MARUTI SUZUKI INDIA LIMITED   Annual Report 2008 - 09
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OUR PEOPLE, OUR QUEST




MARKETING & SALES BUSINESS VERTICAL
Headed by Mr. Mayank Pareek, Executive Officer
Mr. S. Oishi, Director & Managing Executive Officer

It has been 25 glorious years of leadership in the Indian automobile space, delighting millions of customers and transforming the way India
moves. It is our constant endeavour to meet aspirations of a large and diverse demography, by providing the best through innovative products
and services. Leadership for us is not confined to market statistics, but also covers responsible corporate citizenship, leadership in customer
satisfaction, and being the country's most trusted and admired brand. We have regularly increased our product portfolio, giving today's
dynamic young India more choice, narrowing price points and increasing value. We have a granular understanding of our markets, the needs
and preferences of customers; close interface with Research and Development helps us develop and deliver products that meet evolving
consumer needs . Our quest is to continuously expand the market and search for blue oceans. We have focused on rural markets with positive
results. Next, the taxi segment is a big opportunity. In some cities, we introduced “green cabs”: fuel efficient and environment friendly. We intend
to replicate this in other cities. Our network is our big strength; in our quest to move closer to our customer we are reaching out to India's interiors
to cater to future demand. We also want to make an impact globally; we have a presence across geographies from Europe to Africa. In the
current situation small and fuel efficient cars are in demand. We have suitable products . We are excited about the changes in the market, and
equipped to take advantage of them. Our quest is unceasing. We believe the future will be better than the past, and that we have a crucial role in
shaping it. We can change; we can do even better than the past.




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OUR PEOPLE, OUR QUEST




PRODUCTION BUSINESS VERTICAL
Headed by Mr. M. M. Singh, Managing Executive Officer
Mr. T. Ohashi, Director & Managing Executive Officer

Our Quest is to consistently manufacture world-class products that surpass customer expectations in Quality and Cost. We have
regularly enhanced capacities, using latest technologies and robust systems, to meet customer demand. As model life cycles shorten and
customer demands evolve, our systems are flexible to take care of future requirements. This flexibility is built in while setting up the line,
reducing the lead time for new models. At our Manesar Plant, 150 variants of A-star are produced on a single line. This flexibility is
achieved through continuous focus on people and on systems like multi-level production system (MLPS). Our line change set-up time, a
key factor in flexibility, is 1.5 days, from 7 days earlier. In an economic slowdown, innovation is key. Our employee suggestion scheme
saved Rs 707 million, through 132,804 suggestions last year. Our special cost reduction drive saved Rs 161.4 million. Innovation is
encouraged through company- wide events like “Nav Nirmaan”. Besides the financial saving, such initiatives involve and empower
employees. The right balance between people and automation has been our strength. Cost-effective inhouse automation has helped
overcome operational bottlenecks. As the company prepares to launch more models, complying with stringent emission norms, the
Production team is well equipped with new Casting, Engine and Machine plants. Our in-house technical training centre (TTC) trains
people through class-room sessions and practical modules. Our overall vehicle quality measure - Direct Pass Rate and our assembly and
machine shop efficiencies are comparable to the best in the world. Our overall production capability is one million vehicles. In the last
four years, we have followed a unified approach called Production Management System (PMS). Through PMS, the ideas of every
individual are captured and developed in alignment to manufacturing strategies. Through a highly motivated and enthusiastic team,
world-class infrastructure and systems, our quest for excellence continues.
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OUR MANAGEMENT TEAM




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                              Quest Unlimited
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                                                                                                             Quest Unlimited




ENGINEERING BUSINESS VERTICAL
Headed by Mr. I. V. RAO, Managing Executive Officer
Mr. K. Asai, Director & Managing Executive Officer


“Scientists investigate that which already is; Engineers create that which has never been.'' - Albert Einstein

Customers increasingly demand improved products and services, with accelerated delivery times and at lower prices. To address
these needs, MSIL R&D had laid down its vision in 2002~2003 in line with the company vision. We have worked towards it, to achieve
the targeted strategic objectives and milestones. Our R&D vision is to “Build on our engineering skills to design and develop cars to
delight the Indian consumer and establish Maruti Suzuki as the R&D hub of Suzuki Motor Corporation (SMC) in Asia outside Japan.”

The strategic objectives set up for achieving the vision are:
Product Design & Development: New Models & Minor change (face-lift) introduction
?
Engineering Capability Development: Design & Development of Full Body Change
?                                                                                                followed by development of new
platform(s)
Cost Management: To meet target cost for model development
?


We have already achieved capability for face-lifts, and undertaken co design activity with SMC for new models. Our next milestone
is to develop full body change capability.
Systematic efforts are on to achieve full body change capability through the following:
?    Training of engineers (Overseas/In-house)
?    Full vehicle in-house design , development and evaluation
?    Facilities up gradation
?    Prototype build capability
?    Experimental projects like concept cars

One significant step in this direction has been the increase in manpower from 398 people in 2007-08 to 730 people in 2008-09. We
plan to increase our strength to more than 1000 people by 2011.
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SNAPSHOTS
OF THE YEAR

Highest ever domestic sales 722,144 units

Highest ever export sales 70,023 units

Highest ever total sales 792,167 units

Highest ever net sales Rs. 203,583 Mn

Annual manufacturing capacity expanded to 1,000,000 units

The Company's next generation fuel-efficient K-series program went on stream from a
highly integrated plant at Gurgaon.

To support its export ambitions, the Company commissioned a dedicated Roll-on Roll-off car
terminal at Mundra sea port in partnership with MPSEZL (Mundra Port and Special
Economic Zone Limited).

The Company took a lead in voluntary disclosure of fuel efficiency, as certified by
government labs of all its models across all its dealerships.

Launched fifth World Strategic Model A-star in the domestic and international markets.

The Company strengthened its R&D capability by increasing the strength of design engineers
from 398 to 730 and work is in progress for a world class test track and crash
test facility.
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                                                                                          Quest Unlimited




Launched National Road Safety Mission, a nation-wide initiative to train 500,000 people in
safe driving in next three years.

Focus on infrastructure development of Driving Training-the Company entered into
partnerships with State Governments of Uttarakhand & Haryana to set up
IDTRs (Institute of Driving Training & Research) in the States.

The Company expanded the network of Maruti Driving Schools further and crossed 50
schools.

Maruti Suzuki was rated first in Customer Satisfaction for the ninth consecutive year
in the annual survey conducted by JD Power Asia Pacific.

In the J D Power survey on excellence in Automotive Performance, Execution and
Layout (APEAL) four Maruti models adjudged the best. WagonR in Entry Compact,
Swift in Premium Compact, Swift Dzire in Entry Midsize and SX4 in Midsize segments.

In the 'Global Reputation Pulse Survey', the Company's global rank has risen to 49 from 77
in previous year.
Amongst global car companies, Maruti Suzuki India rank has gone up to
3rd from 4th the previous year, in the 'Global Reputation Pulse Survey'.




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       Quest Unlimited




     MOTORSPORTS AT
     MARUTI SUZUKI
 The Company takes pride in
 supporting exciting
 motorsport events like the
 annual Maruti Suzuki
 Raid-de- Himalaya and Maruti
 Suzuki Desert Storm.
 In recent years, participation
 by professional and amateur
 motoring enthusiasts has
 grown making the two rallies
 the flagship motorsport
 events of the country.




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     Quest Unlimited




 NEW MODEL
 NEW GEOGRAPHIES
 Silvio Demartini (in center),
 an entrepreneur from
 picturesque Italy can't
 conceal his happiness over
 his newly bought Suzuki
 Alto. The Company took a
 big leap in exports with a
 new offering, A-star, branded
 as Suzuki Alto in Europe.
 The mega car terminal set up
 by the Company in
 partnership with MPSEZL
 last year now exports
 A-star to Europe.




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     Quest Unlimited




 TRAIN AND
 EMPOWER
 22-year- old Hemlata
 Chouhan is a confident cab
 owner (in picture 2 from top)
 who ferries school children
 every morning. She is one of
 the beneficiaries of Maruti
 Suzuki National Road
 Safety Mission which was
 unveiled last year. The
 Company aims to train
 500,000 people in safe
 driving in three years
 through this novel
 initiative.




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     Quest Unlimited




 TAKING THE JOY
 OF MOTORING
 TO THE HEART
 OF INDIA
 55-year-old Kashi Ram from
 Balia district in UP and
 58-year-old Bhagat Singh from
 Kila Raipur Punjab have
 something in common.
 They want to bring their
 daughters-in-law home
 in their brand new Maruti
 Omni which they bought last
 year. They have fondly
 christened their village as
 'Maruti ka Gaon.'




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     Quest Unlimited




 LETS LEARN
 TO GIVE
 12-year-old Raju was scared
 of algebra until he found a
 new teacher in Anoop.
 Anoop is one of 200
 Marutians who
 love to spend their Sundays
 in a different way.
 The Company launched an
 employee voluntary
 programme titled- E-
 Parivartan last year.
 Through this novel initiative,
 Marutians are reaching out to
 many more layers of people
 with "Nishkam Bhav".




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       Quest Unlimited




     CONNECTING WITH
     CUSTOMERS
 The Company connects with
 customers through 681 sales
 outlets spread over 454 cities
 and with 2767 service
 workshops across 1314 cities.
 The quest however, is
 unceasing and we want to
 connect with more and more
 layers of people. We
 continue to discover new
 cities, new geographies.




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       Quest Unlimited




     PROFITABLE
     PARTNERSHIPS
 The Company, by virtue
 of its sustainable practices,
 enjoys a healthy base of
 partnerships.
 Going forward, The
 Company has identified
 up gradation and
 modernization of
 tier-II vendors as its
 top priority.




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     Quest Unlimited




 MANUFACTURING
 EXCELLENCE
 Built to fulfil global
 aspirations of Suzuki and
 MSIL, the state-of-the-art
 Manesar facility attained
 capacity of 300,000
 units/annum last fiscal.
 This facility alone offers
 over 150 variants of export
 model A-star.




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DIRECTORS' REPORT




Your directors have pleasure in presenting the 28th annual report together with the audited accounts for the year ended 31st
March 2009.


FINANCIAL RESULTS
The Company's performance during the year is summarized below:                                                     (Rs. in million)
                                                                                                     2008-09          2007-08

Gross total income                                                                                    241,807           218,623
Profit before tax                                                                                      16,758            25,030
Provision for taxation (including previous year)                                                        4,571              7,722
Profit after tax                                                                                       12,187            17,308
Balance brought forward                                                                                70,257            56,373
Profit available for appropriation                                                                     82,444            73,681
Appropriations:
    General reserve                                                                                     1,219              1,731
    Proposed dividend                                                                                   1,011              1,445
    Corporate dividend tax                                                                                172                248
Balance carried forward to balance sheet                                                               80,042            70,257


FINANCIAL HIGHLIGHTS
The gross revenue (net of excise) of the Company for the year     The increase in the material cost on account of substantial
was Rs. 214,538 million as against Rs. 187,733 million in the     increase in commodity prices and adverse foreign exchange
previous year showing growth of 14.3%. Sales of vehicles in       fluctuations adversely affected the profits of the Company.
the domestic market increased to 722,144 as compared to           The Company made all out efforts to mitigate this impact
711,818 in the previous year showing a growth of 1.5%.            undertaking measures to curtail cost in various areas of its
Exports of vehicles grew at an impressive rate of 32% from        business operations.
53,024 to 70,023 in the current year. The overall growth was
                                                                  Earnings before depreciation, interest, tax and amortization
3.6% which was achieved in spite of the difficult economic
                                                                  (EBDITA) stood at Rs. 24,333 million against Rs. 31,308 million
and market conditions prevailing particularly in the later half
                                                                  in the previous year.
of the year due to the global financial and economic crisis
which did not spare the Indian economy.
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                                                                                                                    Quest Unlimited




Profit before tax (PBT) stood at Rs. 16,758 million against          the report on 'Management Discussion and Analysis' which
Rs. 25,030 million in the previous year and profit after tax         forms part of this annual report.
(PAT) stood at Rs. 12,187 million against Rs. 17,308 million in
the previous year.                                                   AWARDS/RECOGNITION
                                                                     The Company is featured at 49th rank among the world's
DIVIDEND                                                             most reputed companies in the annual World's Most
The board recommends a dividend of Rs. 3.50 per equity               Reputed Company Survey - 2009. In the passenger car sector,
share of Rs. 5 each for the year ended 31st March 2009               the Company is ranked 3rd .
amounting to Rs.1011 million.
                                                                     Some of the other awards/recognition won by the Company
                                                                     during the year under review are:
SHIFTING OF REGISTERED OFFICE
The registered office of the Company was shifted from 11th           lThe    Company stands 5th in all India ratings in the TNS
Floor, Jeevan Prakash, 25, Kasturba Gandhi Marg, New Delhi -             Corporate Reputation Index and tops the ratings in the
110 001 to Company's owned premises at 1, Nelson Mandela                 auto sector, at first position.
Road, Vasant Kunj, New Delhi- 110 070 with effect from 15th          lJD Power Customer Satisfaction Award for the 9th time in
December 2008.                                                           a row.
                                                                     lZigwheels “Car of the year award” for “A-star”.
CRISIL RATINGS                                                       l“A-star” rated as the best small car of the year by Autocar-UTVi.
The Company has been awarded the highest financial credit            lCNBC TV18 Overdrive awards for:
rating of AAA/stable (long term) and P1+ (short term) on its
                                                                         a. Automotive technology of the year for newly
bank facilities by CRISIL. The rating underscores the financial
                                                                            launched K10 B Engine;
strength of the Company in terms of the highest safety with
regard to timely fulfillment of its financial obligations.               b. Manufacturer of the year;
                                                                         c. Special commendation to the Company for its
QUALITY                                                                     contribution to the Indian auto industry, a tribute to
                                                                            the Company's silver jubilee.
The Company has again been awarded ISO: 27001
certification by STQC Directorate (Standardization,                  ? CNBC AWAAZ Consumer Award 2008 in the automobiles
                                                                     l

Testing & Quality Certificate), Ministry of Communications and           category for the most preferred brand of cars.
Information Technology, Government of India after                    ? National
                                                                     l              award for best value engineering organization
re-assessment. The Company is thus certified to meet                     in India at the INVEST (Indian Value Engineering Society).
international standards for maintaining information security.
                                                                     SUBSIDIARY COMPANIES AND THEIR
The Company also has an ISO 14001:2004 certification which
has been similarly awarded once again on re-assessment by
                                                                     ACCOUNTS
AIB-Vincotte International Ltd., Brussels, Belgium.                  The Company's six subsidiaries i.e. Maruti Insurance Business
                                                                     Agency Limited, Maruti Insurance Distribution Services
The Company's plants at Gurgaon and Manesar are ISO: 9001            Limited, Maruti Insurance Agency Solutions Limited, Maruti
certified. The Company is subject to re-assessment at regular        Insurance Agency Network Limited, Maruti Insurance Agency
intervals for re-certification.                                      Services Limited and Maruti Insurance Agency Logistics
                                                                     Limited are engaged in the business to sell motor insurance
The Company's press shop has TS 16949 certification which
                                                                     policies to owners of Maruti Suzuki vehicles.
is subject to re-assessment at regular intervals.
                                                                     In 2008-09, the insurance business generated a total income
HIGHLIGHTS OF OPERATIONS                                             of Rs. 1152.82 million which includes dividend income of
The operations during the year are exhaustively discussed in

                                                    Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                             39
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Rs. 37.35 million earned from investments in mutual funds.        The training programmes vary for employees at different
Profit before tax (PBT) for 2008-09 was Rs. 498.80 million. The   levels. With the aim of encouraging a competitive spirit and
total new policies issued during the year were 662,606 while      a winning attitude to take on future challenges among the
1,459,328 policies were renewed.                                  employees in the technical and supervisory band,
                                                                  programmes such as “Winning Strategy”, “Chunauti” and
The seventh subsidiary namely True Value Solutions Limited
                                                                  “Ahead Forever” are held. Similarly, for employees at
has contributed towards smooth operations of business
                                                                  executive and senior executive levels, programmes based
processes and supported the dealerships in enhancing the
                                                                  on six sigma, lean manufacturing, negotiation skills, MS-
sale of certified pre-owned cars under the brand 'Maruti True
                                                                  project, finance management and vehicle financing, value
Value'. It has contributed significantly to the efforts of
                                                                  stream mapping, project management, quality control
customer retention by facilitating re-purchase of new cars
                                                                  tools, neuro linguistic skills, innovation and creativity,
and has made significant contribution towards enhancing
                                                                  corporate business etiquette, communication and
dealers' profitability.
                                                                  presentation skills, etc. are held. For employees at top
In terms of approval granted by the Central Government            management level, programmes based on leadership,
under Section 212(8) of the Companies Act, 1956, copy of the      business strategy, etc. are held.
balance sheets, profit & loss accounts, reports of the board of
                                                                  The Company also has higher education schemes for its
directors and auditors of the subsidiary companies have not
                                                                  employees.
been attached with the balance sheet of the Company.
These documents will be made available upon request by
any investor of the Company or subsidiary companies and
                                                                  DIRECTORS
shall be kept for inspection by any investor at the registered    Mr. R.C. Bhargava, Ms. Pallavi Shroff and Mr. Shuji Oishi,
office of the Company. However, as directed by the Central        directors of the Company, retire by rotation at the ensuing
Government, the financial data of the subsidiaries have been      annual general meeting and being eligible, offer themselves
furnished under “Financial Statement of Subsidiary                for re-appointment. Mr. Shuji Oishi was re-appointed as a
Companies” forming part of the annual report. Further,            whole-time director designated as Director and Managing
pursuant to Accounting Standard AS-21 issued by the               Executive Officer (Marketing & Sales) for a further period of 3
Institute of Chartered Accountants of India, consolidated         years effective 13th April 2009.
financial statements presented by the Company include the
financial information of its subsidiaries.                        DIRECTORS' RESPONSIBILITY STATEMENT
                                                                  As required under section 217(2AA) of the Companies Act,
HUMAN RESOURCE DEVELOPMENT                                        1956, your directors confirm:
The Company has always focussed on employees'
                                                                  a.   that there were no material departures in the
development. A total of 38000 man-days of training were                applicable accounting standards followed while
conducted for employees across all levels with an average              preparing the annual accounts;
training of 5 days per employee during the year. The
Company has spent about Rs. 95 million on training of its         b.   having selected such accounting policies and applied
employees during 2008-09.                                              them consistently and made judgments and estimates
                                                                       that are reasonable and prudent so as to give a true and



40    MARUTI SUZUKI INDIA LIMITED       Annual Report 2008 - 09
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                                                                                                                   Quest Unlimited




     fair view of the state of affairs of the Company at the         agreement and the stipulated certificate of compliance is
     end of the financial year and of the profit of the              contained in this annual report.
     Company for that period;

c.   having taken proper and sufficient care for the                 AUDITORS
     maintenance of adequate accounting records in                   The auditors, M/s Price Waterhouse, Chartered Accountants,
     accordance with the provisions of the Companies Act,            hold office until the conclusion of the ensuing annual
     1956, for safeguarding the assets of the Company and            general meeting and are recommended for re-appointment.
     for preventing and detecting fraud and other                    A certificate from the auditors has been received to the effect
     irregularities; and
                                                                     that their re-appointment, if made, would be in accordance
d.   having prepared the annual accounts on a going                  with section 224 (1B) of the Companies Act, 1956.
     concern basis.
                                                                     COST AUDITORS
CONSERVATION OF ENERGY, TECHNOLOGY                                   In conformity with the directives of the Central Government,
ABSORPTION, FOREIGN EXCHANGE                                         the Company has appointed M/s R. J. Goel & Co., Cost
EARNINGS AND OUTGO                                                   Accountants, as the cost auditors under section 233B of the
A statement giving details of conservation of energy,                Companies Act, 1956 for the audit of the cost accounts for
technology absorption, foreign exchange earnings and                 the motor vehicles business for the year ended 31st March
outgo in accordance with the Companies (Disclosure of                2009.
Particulars in the Report of Board of Directors) Rules, 1988 is
annexed as Annexure A.
                                                                     ACKNOWLEDGMENT
                                                                     The board of directors would like to express its sincere thanks
PERSONNEL                                                            for the co-operation and advice received from the
As required by the provisions of section 217(2A) of the              Government of India and the Haryana Government. Your
Companies Act, 1956, read with the Companies (Particulars            directors also take this opportunity to place on record their
of Employees) Rules, 1975, as amended, the names and                 gratitude for timely and valuable assistance and support
other particulars of the employees are set out in Annexure B         received from Suzuki Motor Corporation, Japan. The board
to the Directors' Report. However, as per the provisions of          also places on record its appreciation for the enthusiastic co-
section 219(1)(b)(iv) of the Companies Act, 1956, the annual
                                                                     operation, hard work and dedication of all the employees of
report is being sent to all the shareholders of the Company
                                                                     the Company including the Japanese staff, dealers, vendors,
excluding the aforesaid information. Any shareholder
                                                                     customers, business associates, auto finance companies,
interested in obtaining such particulars may write to the
                                                                     state government authorities and all concerned without
Company Secretary at the registered office of the Company.
                                                                     which it would not have been possible to achieve all round
                                                                     progress and growth of the Company. The directors are
CONSOLIDATED FINANCIAL STATEMENTS                                    thankful to the shareholders for their continued patronage .
In accordance with the Accounting Standard AS-21 on
consolidated financial statements read with Accounting               For and on behalf of the board of directors
Standards AS -23 on accounting for investments in
associates and AS - 27 on financial reporting for interest in        Shinzo Nakanishi                          R.C. Bhargava
joint ventures, the audited consolidated financial                   Managing Director & CEO                   Chairman
statements are provided in the annual report.                        New Delhi
                                                                     29th May 2009
CORPORATE GOVERNANCE
The Company has complied with the corporate governance
requirements, as stipulated under clause 49 of the listing


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DIRECTORS' REPORT - ANNEXURE A




Information in accordance with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, and
forming part of the Directors' Report for the year ended 31st March 2009.


A. ENERGY CONSERVATION
                                                                  ----   The hazardous waste storage pit in Manesar plant has
In pursuit of continual improvement in energy conservation
                                                                         been expanded.
and to comply fully with environmental regulations, many
initiatives have been taken and implemented in the year             -
                                                                  ---    Energy efficient pumps and motors for new air washers
2008-09.                                                                 have been installed resulting in power saving.

ISO:14001 certification was extended for three more years         ----   The installation of energy efficient air dryers of
(2011), after an exhaustive audit by an external auditing                compressors has resulted in power saving of 35%.
agency to check the demonstration of continual
improvement in the Environment Management System                   -
                                                                  --     Environment friendly refrigerant is in use for water
(EMS). The Manesar plant has been certified for the                      coolers and air dryers.
ISO:14001 system for the first time after its inclusion in the
                                                                  ----   A design change namely a circular duct in place of the
scope of EMS.
                                                                         previous design of a rectangular duct in new projects
Major investments made/initiatives taken for reduction of                has reduced pressure drop losses.
consumption of energy/improving environment during
                                                                  ----   Installation of in-let air cooling system equipment in
2008-09 are:
                                                                         gas turbine -no. 2 at Gurgaon plant.
----   A green belt has been planned and its development
                                                                  ----   Installation of magnetic fuel saver in natural gas
       was kicked off during the “Environment Month”.
                                                                         pipeline at Gurgaon plant.
       Around 7000 trees have been planted in the Manesar
       plant.                                                     Various energy efficiency measures initiated for the new
                                                                  head office at Vasant Kunj are as follows:
----   New gas turbines were set up for the Manesar plant
       with dry low NOx burners.                                  ---    Building envelope
                                                                         • Autoclaved aerated concrete blocks for construction;
----   The capacity of the effluent treatment plant has been
                                                                         • Thermal insulation of roof deck;
       increased in line with capacity expansion at Manesar
       and water re-cycling for re-use in various processes has          • Double glass for fenestration area.
       started resulting in reduction of water consumption
       per vehicle by 44% in Manesar.
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---   Heating, ventilation and air conditioning system             lCapability      enhancement in design of the complete
      Building management system;
      l                                                                 exterior of a car has been carried out starting with a
      Backward curved blowers;
      l                                                                 detailed study of the Indian market to arrive at a right
      Variable
      l           frequency drive in blower and          pump           styling design language for the Indian market.
         motor.                                                    lFor     interior design, the Company enhanced its
                                                                        capability in the areas of complete interior concept
---   Lighting                                                          image generation, interior CAD based computer
      l lighting with electronic ballast for office area;
         28 W                                                           graphics (CG), full interior buck design and lay outing of
      l height lighting;
         Low                                                            components based on engineering layouts and
      l lighting for basements and landscaping.
         Solar                                                          occupant packaging.

For the Manesar plant, the consumption per vehicle of                  Engineering design
electricity (kWH/veh), compressed air (Nm3/veh), process           lCapability      in the field of engine development was
gas (m3/veh), steam (kg/veh) and water (m3/veh) have                    enhanced with the design and development of the
reduced by 20 %, 35%, 36%, 43% and 44% respectively. For                new KB series engine which is a result of enormous R&D
the Gurgaon plant, a new facility for the manufacture of KB             efforts and thousands of man-hours of design,
engines for "A-star" and casting of the cylinder head and               validation and testing.
block in-house has been commissioned resulting in an               lCapability in the area of body in white design (BIW) has
increase in the consumption per vehicle of electricity                  taken the next leap in its journey of achieving the 'Full
(kWH/veh), compressed air (Nm3/veh) and process gas                     Body Change (FBC) Capability' in coming years. This
(m3/veh) and water (m3/veh) by 18%, 20%, 34% and12%                     will envisage capability to engineer the BIW, interior
respectively though there are reductions in the variable                trims, instrument panel, noise vibration and harshness,
component of the consumption of these inputs per vehicle.               lighting system & seats for the vehicle.
Steam consumption (kg/veh) has remained the same as in
the last year.                                                     lResearch       in the area of development of electronic
                                                                        systems and controllers for new generation vehicles
                                                                        was carried out in-house during the year, an example
B. RESEARCH & DEVELOPMENT (R&D)
                                                                        of which is the keyless alarm system for the new model
I     SPECIFIC AREAS IN WHICH R&D HAS BEEN CARRIED                      "A-star".
      OUT BY THE COMPANY
                                                                   lResearch      in the area of new materials i.e. steel &
A     Building full model change capability
                                                                        polymer for BIW/interior applications has helped in
                                                                        evaluating and using stronger, lighter & safer materials
A1) Vehicle design and development                                      which has contributed towards unmatched safety, fuel
      Vehicle planning and design                                       efficiency and performance for the new model
                                                                        "A-star".
lCapability        in new model planning right from the
      concept stage has been enhanced by establishing an           lCapability       in the area of brake design and
      advance planning and lay out section, which tracks the            development has been enhanced with the
      market, its changing requirements, technology trends,             introduction of the latest global technologies in the
      future regulatory requirements and competitor                     new model "A-star". These were supported by
      activity in order to plan India specific models                   advanced technologies in the field of testing and
      effectively.


                                                   Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                         43
                                                                     Compiled by : Religare Technova Global Solutions Limited




DIRECTORS' REPORT - ANNEXURE A (CONTD.)




   manufacture of parts to provide high performance and         ment activity as well as up-gradation of existing models
   quality parts to meet growing expectations and               using various simulation tools.
   rigorous demands of brake systems in India's rigorous    lThe      computer aided engineering simulations are
   traffic conditions.                                          carried out for full vehicles and the component levels.
lCapability   enhancement in areas such as instrument
   panel, door, fuel tank & seating systems was done for        Engineering information management
   carrying out full body change.                           lThe     increased focus on R&D requires a knowledge
lSkills have been upgraded for evaluation of customer           management process to ensure that the knowledge
   perception/feedback for ergonomics, seating comfort          gained is harnessed effectively for future needs.
   and other parameters of interior design for                  Knowledge based engineering techniques have been
   incorporating them in our design right from concept          employed to maintain a knowledge data base of
   stage.                                                       various design processes. This has reduced the time
                                                                taken by a designer/engineer for iterative design
lThe    capability in the field of design and development       processes and enables him to capture expertise
   of storage vessels and structural frames for alternate       knowledge and come up with accurate results in the
   fuel vehicles has been enhanced.                             minimum span of time.
lPresentation      of engineering design studies at          The
                                                            l Product Life Cycle Management (PLM) System has
   international platforms like the Society of Automobile       been optimally utilized with the increase of
   Engineers International, the Society of Indian               “Teamcenter Community Usage” for information
   Automobile Manufacturers and others during the last          exchange with suppliers.
   few years, has given a global outlook to the engineers
   of the Company.                                          lTear down data management software was developed
                                                                to manage the component level benchmark data and
   Virtual design validation                                    that has resulted in carrying out VAVE (Value Analysis
   To enhance the virtual validation skills and reduce          Value Engineering) effectively during the year.
   design cycle time and development cost, digital          lTo     streamline the process of maintaining a technical
   engineering and engineering information manage-              specification repository, a web based document
   ment techniques are being effectively used.                  lifecycle management system is under imple-
                                                                mentation.
   Digital engineering
lThe     Company has been carrying out crash, noise             Development and testing
   vibration and harshness, strength and computational      ? Research
                                                            l            in the specific areas of emission reduction
   fluid dynamics simulations for new model develop-            and emission testing was carried out along with the
                                                                 Compiled by : Religare Technova Global Solutions Limited




     engine development for Bharat Stage IV counter-                    Engine and transmission testing
     measure. Electronic control unit calibration and               lUpgradation of AC dyno lab: The facility for AC dyno lab
     engine performance improvements were done in                        has been upgraded for carrying out engine calibration
     order to optimize the performance of the engine.                    to meet future emission norms and Indian fuel
lFatigue       analysis and endurance testing of vehicles,               requirements.
     vehicle systems & engines was conducted. Exterior and          lNew       mass emission lab: Another facility for testing
     interior parts safety & strength testing was also carried           vehicle exhaust emission levels has been set up in
     out for new model development.                                      addition to the four existing mass emission labs. The
lPassive     homologation testing of domestic and export                 new lab will improve the testing capability and help in
     models was conducted in-house. Omni Cargo was                       gearing up to satisfy future emission norms.
     successfully up-graded for compliance with survival            lSynchromesh        tester for transmission testing: The
     space regulation. All new models are being developed                setting up of a synchromesh tester for endurance
     to meet the latest safety and emission norms                        testing of various transmission parts was another
     applicable in future.                                               major achievement which has enabled carrying out of
l part of consciousness towards the environment, the
 As                                                                      all transmission related development activities in-
     "A-star" has been made free from hazardous material                 house.
     (end life of vehicle compliant). The Company shares
     the honour of being the second company in world to                  Vehicle performance
     comply with RRR (Reuse-Recycle-Recovery) norms.                ? A
                                                                    l brake noise chassis dynamometer with environment
                                                                         chamber has been set up for improving performance
lAn      ambitious plan has been drawn up to make all
                                                                         as regards noise vibration and harshness of brake
     models free from hexavalent chromium and other
                                                                         systems by laboratory simulation of braking situations
     hazardous materials by 2010 (first automobile
                                                                         under varied driving and environmental conditions.
     company in India). In order to achieve this, the
                                                                         This will help in refined braking performance and at the
     Company has undertaken a major initiative of up-
                                                                         same time significantly reduce development cost and
     grading tier 2 and tier 3 suppliers for supplying parts
                                                                         time.
     free of Cr6 .
                                                                         NVH
A2) Facility set up for R&D
                                                                    ? Noise
                                                                    l           and vibration analyzer: The facility has been set
     Body design & fatigue testing
                                                                         up in-house for capturing the basic body modes /
lBumper        crash facility: An in-house fabrication of                critical frequency for computer aided engineering
     bumpers test facility has been set up for compliance                inputs ranging from in-vehicle tracking to MIMO (Multi
     with the homologation testing standard.                             Input Multi Output) analysis. This has resulted in early
lWheel force transducer: For simulating actual test track                prediction of problem sources and implementation of
     conditions on a bench setup, a facility has been set up             necessary counter measures.
     in-house for accelerator fatigue testing.




                                                   Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                        45
                                                                            Compiled by : Religare Technova Global Solutions Limited




DIRECTORS' REPORT - ANNEXURE A (CONTD.)




      End life of vehicle (ELV) compliance evaluation           ? Emphasis
                                                                l            on value analysis / value engineering &
? Energy
l             dispersive X-ray fluorescence analyzer and salt     innovative cost reduction ideas to cut down costs.
      spray chamber: To improve quality of incoming parts,      ? Developing costing knowledge of various automotive
                                                                l

      the metallurgy lab has been upgraded with new               technologies through standard cost tables and cost
      devices to check the quality of the coating material of     benchmarking.
      various components to ensure ELV compliance.              ? Cost planning of new products right at the new
                                                                l
                                                                  product planning stage to put cost in the right
      New design softwares and licenses                           perspective during the concept stage and give target
? 40
l          softwares and licenses for computer aided              costs to designers.
      designing have been procured to enhance the               ? Emphasis on focussed cost down models for
                                                                l
      designing and testing capability of engineering             competitiveness.
      division engineers.
                                                                IV      EXPENDITURE INCURRED ON R&D
II    BENEFITS DERIVED AS A RESULT OF ABOVE R&D                                                           (Rs. in Million)
      a)   Launch of "A-star" (domestic and export).            Particulars                    2008-09        2007-08
      b)   Launch of next generation K10B engine.
      c)   Omni cargo regulation compliance.                    A Capital expenditure               244              259
      d)   M800 & Zen Estilo limited editions.                  B    Recurring expenditure          666              379
      e)   Focussed model cost down.                            Total                              910               638
      f)   Future new model & engine development.               Total R&D expenditure as a
      g)   End life of vehicle compliance evaluation.           percentage of total income        0.42%           0.34%

III   FUTURE PLAN OF ACTION
? Develop
l          capability for full model change in all aspects      C. TECHNOLOGY ABSORPTION,
  planning, design, development and testing.                       ADAPTATION AND INNOVATION
? Develop more products with alternative fuel option(s).
l
                                                                  Efforts in brief made towards technology
? Compliance with Bharat Stage IV emission norms and
l
                                                                  absorption, adaptation and innovation
  other new regulations.
                                                                ? Design of components and systems including design
                                                                l
? Carry out continuous up-gradation of existing models.
l
                                                                  review process.
? Build a knowledge base and Company image in tune
l
                                                                ? Localization including child part localization,
                                                                l
  with the times by working on technology and design              development and testing of parts for existing & new
  showcase projects for auto exhibitions.                         models.
                                                                Compiled by : Religare Technova Global Solutions Limited



                                                                                                                 Quest Unlimited




? Capabilities
l               strengthened in component and vehicle                   Technology imported
  evaluation, benchmarking and design optimization.                 ESP
                                                                   l (Electronic Stability Program).
? Capabilities being further strengthened in the area of
l                                                                  lELV  (End-of-life vehicles) compliance for ensuring a
  alternative fuels.                                                high degree of re-cycling of raw material.
? Value engineering at the time of design and
l                                                                  lDouble overhead cam with offset crank shaft in new
  localization to minimize cost.                                    K10B engine - resulting in better volumetric efficiency,
? Acquiring design and cost knowledge through
l                                                                   improved power and fuel efficiency.
  teardown and benchmarking and using it in future                 lIntroduction of advanced DLI (Distributor Less Ignition)
  designs and cost reduction. Setting up of a state of art “i       system for better reliability.
  Value” lab for strengthening benchmarking and                    lAnti-vibration mechanism for dual horn to improve
  innovation.                                                       sound quality and reduce echo noise.
                                                                   lYear of Import: 2008-09
     Benefits derived as a result of above efforts
                                                                   lStatus of absorption: The above technologies have
lIndigenization      of various vehicle aggregates at lower
                                                                    been used in products introduced during the year.
     costs.
lImprovement and up-gradation of existing models for
     improved comfort, style and better value for money.           D. FOREIGN EXCHANGE EARNINGS &
lContinuous        reduction in product cost through Value            OUTGO (CASH BASIS)     (Rs. in million)
     Analysis / Value Engineering.                                 Particulars                            2008-09      2007-08
lSignificant     cost reduction of new model parts
     compared to existing models, ensuring that the new            Foreign exchange used: equivalent
     models are profitable from day one.                              Raw materials and components          16,842       13,355
                                                                      Capital goods                         10,817       10,542
lContinuous quality upgradation and weight reduction
     in products.                                                     Dies & moulds, maintenance
                                                                      spares & other items                       720       711
     Imported technology                                              Royalty, interest, dividend
     The Company has been a pioneer in offering latest                and others                             8,604        6,027
     technologies at affordable prices. As a market leader,        Foreign exchange earned: equivalent      12,648        7,812
     the Company intends to keep this momentum in
     future.                                                        Activities relating to exports
                                                                   lInitiatives taken to increase exports: Please refer to
                                                                    Management Discussion and Analysis Report.
                                                                   lDevelopment of new export markets for products and
                                                                    services - Please refer to Management Discussion &
                                                                    Analysis Report.
                                                                   lExports plans
                                                                    The
                                                                   l Company will continue to export "A-star" and other
                                                                    models. By 2010-11, the Company plans to export
                                                                    200,000 units.

                                                                   For and on behalf of the board of directors


                                                                   Shinzo Nakanishi                    R.C. Bhargava
                                                                   Managing Director & CEO             Chairman

                                                                   New Delhi
                                                                   29th May 2009

                                                   Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                       47
                                                                                     Compiled by : Religare Technova Global Solutions Limited




CORPORATE GOVERNANCE REPORT




CORPORATE GOVERNANCE PHILOSOPHY                                           ? Operational
                                                                          l                management remains focussed on
                                                                               implementation;
Maruti Suzuki India Limited (the Company) is fully
committed to practising sound corporate governance and                    ? Information
                                                                          l                 regarding the Company's operations and
upholding the highest business standards in conducting                         financial performance are made available adequately;
business. Being a value-driven organisation, the Company                  ? Delegation
                                                                          l                  of decision making with accountability is
has always worked towards building trust with shareholders,                    achieved;
employees, customers, suppliers and other stakeholders
                                                                          ? Financial
                                                                          l             and operating control and integrity are
based on the principles of good corporate governance, viz.,
                                                                               maintained at an optimal level;
integrity, equity, transparency, fairness, disclosure,
accountability and commitment to values.                                  ? Risk
                                                                          l         is suitably evaluated and dealt with.

The Company fosters a culture in which high standards of
ethical behaviour, individual accountability and transparent
                                                                          BOARD OF DIRECTORS
disclosure are ingrained in all its business dealings and shared          Composition of the board
by its board of directors, management and employees. The                  As on 31st March 2009, the Company's board of directors
Company has established systems and procedures to ensure                  consists of eleven members. The chairman of the board is a
that its board of directors is well-informed and well-equipped            non-executive director. The Company has an optimum
to fulfil its overall responsibilities and to provide the                 combination of executive and non-executive directors in
management with the strategic direction needed to create                  accordance with the provisions of clause 49 of the listing
long-term shareholder value.                                              agreement. The board is made up of four executive directors
                                                                          and seven non-executive directors, of whom four are
MANAGEMENT STRUCTURE                                                      independent as given in Table 1. No director is related to any
                                                                          other director. All Independent directors are persons of
The Company has a multi-tier management structure,                        eminence and bring a wide range of expertise and
comprising the board of directors at the top and followed by              experience to the board thereby ensuring best interest of
managing executive officers, executive officers, divisional               stakeholders and the Company.
heads and departmental heads. Through this, it is ensured
that:
? Strategic supervision is provided by the board;
l

? Control
l            and implementation of Company's strategy is
      achieved effectively;

Table 1: Composition of the board of directors as on 31st March 2009
                                                                                                               1
S.    Name of the directors        Category                                     No. of other directorship(s)   No. of other committee(s)
No.                                                                              Public            Private      Member        Chairman
1     Mr. R. C. Bhargava           Chairman, non-executive                          8                 1            4             4
2     Mr. Shinzo Nakanishi         Managing Director and CEO, executive             5                 1            1             -
3     Mr. Tsuneo Ohashi            Executive                                        2                 -            1             -
4     Mr. Shuji Oishi              Executive                                        1                 1            -             -
5     Mr. Keiichi Asai             Executive                                        1                 -            -             -
6     Mr. Osamu Suzuki             Non-executive                                    1                 -            -             -
      2
7      Mr. Kenichi Ayukawa         Non-executive                                    -                 -            -             -
8     Mr. Amal Ganguli             Independent                                     11                 4            4             4
9     Ms. Pallavi Shroff           Independent                                     6                  2            -             -
10    Mr. Manvinder Singh Banga    Independent                                      -                 -            -             -
11    Mr. Davinder Singh Brar      Independent                                     1                 10            2             -

1.    Foreign companies, private companies and companies under section 25 of the Companies Act, 1956 are excluded. The committees
      considered for the purpose are those prescribed under clause 49 (I) (C) of the listing agreement.
2.    Joined w.e.f. 21st July 2008.



48     MARUTI SUZUKI INDIA LIMITED       Annual Report 2008 - 09
                                                                       Compiled by : Religare Technova Global Solutions Limited




In terms of clause 49 of the listing agreement:                             Information supplied to the board
                                                                            The board has complete access to all information of the
1.   None of the directors was a member of more than 10
                                                                            Company. The following information is provided to the
     committees or chairman of more than 5 committees
                                                                            board and the agenda papers for the meetings are circulated
     across all companies in which he/she is a director.
                                                                            in advance of each meeting:
2.   None of the directors holds equity shares in the
                                                                            ? Annual
                                                                            l               operating plans, capital and revenue budgets
     Company except Mr. Shinzo Nakanishi, who holds 20
                                                                                     and updates;
     equity shares of Rs. 5/- each in capacity of the nominee
     of Suzuki Motor Corporation, Japan.                                    ? Quarterly
                                                                            l                   results of the Company and its operating
                                                                                     divisions or business segments;
BOARD MEETINGS                                                              ? Minutes
                                                                            l               of meetings of audit committee and other
The board met six times during the year - on 24th April 2008,                        committees of the board;
21st July 2008, 1st September 2008, 24th October 2008, 29th                 ? Information
                                                                            l                      on recruitment and remuneration of
January 2009 and 23rd March 2009. The board meets at least                           senior officers just below the board level including
once in a quarter with a gap of not more than four months                            appointment or removal of chief financial officer and
between any two meetings. However, additional meetings                               company secretary;
are held, whenever necessary. Table 2 gives the attendance                  ? Materially
                                                                            l                   important show cause, demand, prose-
record of the directors at the board meetings as well as the                         cution and penalty notices;
last annual general meeting (AGM).
                                                                            ? Fatal or serious accidents and dangerous occurrences;
                                                                            l




Table 2: Board meeting and AGM attendance record of the directors in 2008-2009
Name of director                                    Number of meetings attended                                      Whether attended
                                                       (Total meetings held: 6)                                         last AGM
Mr. R.C. Bhargava                                                                      6                                     Yes
Mr. Shinzo Nakanishi                                                                   6                                     Yes
1
  Mr. Hirofumi Nagao                                                                   1                                     N.A.
Mr. Shuji Oishi                                                                        6                                     Yes
Mr. Tsuneo Ohashi                                                                      6                                     Yes
Mr. Keiichi Asai                                                                       6                                     Yes
Mr. Osamu Suzuki                                                                       1                                     Yes
2
 Mr. Kenichi Ayukawa                                                                   2                                     Yes
Ms. Pallavi Shroff                                                                     1                                     Yes
Mr. Amal Ganguli                                                                       5                                     Yes
Mr. Manvinder Singh Banga                                                              2                                     No
Mr. Davinder Singh Brar                                                                6                                     Yes

1.   Ceased to be a director with effect from close of business on 10th July 2008.
2.   Appointed with effect from 21st July 2008.




                                                         Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                           49
                                                                                     Compiled by : Religare Technova Global Solutions Limited




CORPORATE GOVERNANCE REPORT (CONTD.)




? Any
l         materially significant effluent or pollution                    ? Any
                                                                          l          significant development in the human resources
     problems;                                                                  and industrial relations fronts;
? Any material relevant default in financial obligations to
l                                                                         ? Sale
                                                                          l          of material nature of investments, subsidiaries,
     and by the Company or substantial non-payment for                          assets which is not in the normal course of business;
     goods sold by the Company;                                           ? Quarterly details of foreign exchange exposure and the
                                                                          l
? Any
l          issue which involves possible public or product                      steps taken by management to limit the risks of
     liability claims of a substantial nature;                                  adverse exchange rate movement; and
? Details of any joint venture or collaboration agreement;
l                                                                         ? Non-compliance of any regulatory, statutory nature or
                                                                          l

? Transactions
l               that involve substantial payments                               listing requirements and shareholder services such as
     towards goodwill, brand equity or intellectual                             non-payment of dividend, delay in share transfer, etc.
     property;
                                                                          Remuneration paid / payable to directors
? Significant
l                  labour problems and their proposed                     Table 3 gives details of the remuneration paid to directors
     solutions;                                                           during the year 2008-09. The Company did not advance any
                                                                          loans to any of its directors in the year under review.

Table 3: Remuneration paid or payable to directors during 2008-09
Name of director                           Salary &            Performance            Sitting fees      Commission              Total
                                         Perquisites           linked bonus
                                               (Rs.)                   (Rs.)                 (Rs.)               (Rs.)           (Rs.)
Mr. Shinzo Nakanishi                       13,644,470               6,072,000                                             19,716,470
Mr. Keiichi Asai                           11,080,290               4,470,000                                             15,550,290
Mr. Kenichi Ayukawa                                                                        20,000                             20,000
Mr. Shuji Oishi                            10,641,400               4,470,000                                             15,111,400
Mr. Tsuneo Ohashi                          10,641,400               4,470,000                                             15,111,400
Mr. R. C. Bhargava                                                                         80,000           2,690,000      2,770,000
Mr. O. Suzuki                                                                              10,000                             10,000
Mr. Amal Ganguli                                                                          100,000           1,400,000      1,500,000
Ms. Pallavi Shroff                                                                         20,000             400,000        420,000
Mr. Manvinder Singh Banga                                                                  20,000             400,000        420,000
Mr. Davinder Singh Brar                                                                   140,000           1,300,000      1440,000
1
  Mr. Hirofumi Nagao                        2,678,590               1,236,900                                              3,915,490
1
Ceased to be director with effect from close of business on 10th July 2008.
                                                                Compiled by : Religare Technova Global Solutions Limited



                                                                                                                   Quest Unlimited




The performance criteria for the purpose of payment of             The chief financial officer, the head of internal audit and the
performance linked bonus as defined by the board for the           representative of the statutory auditors, internal auditors and
whole-time directors including managing director is as             cost auditors are permanent invitees to the audit committee.
under:                                                             The company secretary acts as the secretary to the audit
                                                                   committee. Other directors and members of management are
a.   Actual achievement in terms of growth in sales, profit,       also invited from time to time as appropriate.
     etc. as compared to the previous year;
                                                                   Role
b.   Actual achievement of growth as compared to the
                                                                   The role of the audit committee includes the following:
     budget approved at the beginning of the year; and
                                                                   1.     Oversight of the Company's financial reporting process
c.   Growth of market share of Company's products as
                                                                          and the disclosure of its financial information to ensure
     compared to key competitors in the industry.
                                                                          that the financial statements are correct, sufficient and
No employee of the Company is related to any director of                  credible.
the Company.
                                                                   2.     Recommending the appointment, re-appointment
Non-executive directors' remuneration                                     and, if required, the replacement or removal of
                                                                          statutory auditors, fixation of audit fee and also
Members of the Company had approved payment of
                                                                          approval for payment for any other services.
remuneration by way of commission to non-executive
directors at a sum not exceeding 1% of the net profits of the      3.     Reviewing, with the management, the annual financial
Company subject to a ceiling of Rs.10 million per annum.                  statements before submission to the board for
                                                                          approval, with particular reference to:
The payment of commission is based on certain criteria such
as attendance at the board/ board level committee                         a.   Matters required to be included in the directors'
meetings, time devoted, current trends prevailing in the                       responsibility statement to be included in the
industry, etc.                                                                 board's report in terms of clause (2AA) of section
                                                                               217 of the Companies Act, 1956.
Sitting fees are also paid to the non-executive directors for
attending board and committee meetings.                                   b.   Changes, if any, in accounting policies and
                                                                               practices and reasons for the same.
COMMITTEES OF THE BOARD
                                                                          c.   Major accounting entries involving estimates
I. Audit Committee
                                                                               based on the exercise of judgment by the
Composition                                                                    management.
Table 4 shows the composition of the audit committee. All
the members of the audit committee are financially literate               d.   Significant adjustments made in the financial
and Mr. Amal Ganguli, the Chairman, has expertise in                           statements arising out of audit findings.
accounting and financial management. The Chairman
                                                                          e.   Compliance with listing and other legal require-
attended the last annual general meeting to answer
                                                                               ments relating to financial statements.
shareholder queries.
                                                                          f.   Disclosure of any related party transactions.
Table 4: Composition of audit committee
                                                                          g.   Qualifications in the draft audit report.
Name                        Category           Designation
                                                                   4.     Reviewing, with the management, the quarterly/annual
Mr. Amal Ganguli            Independent        Chairman
                                                                          financial statements before submission to the board
Mr. Shinzo Nakanishi        Executive          Member
                                                                          for approval.
Mr. Davinder Singh Brar     Independent        Member
Ms. Pallavi Shroff          Independent        Member              5.     Reviewing with the management, performance of
                                                                          statutory and internal auditors, the adequacy of
                                                                          internal control system.


                                                  Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                           51
                                                                              Compiled by : Religare Technova Global Solutions Limited




CORPORATE GOVERNANCE REPORT (CONTD.)




6.   Reviewing the adequacy of internal audit function            II. Shareholders' / Investors' Grievance Committee
     including the structure of the internal audit
     department, staffing and seniority of the official           Composition
     heading the department, reporting structure coverage         Table 6 shows the composition of the shareholders' /
     and frequency of internal audit.                             investors' grievance committee of the Company. Mr. R. C.
                                                                  Bhargava, the Chairman attended the last annual general
7.   Discussion with internal auditors about any significant      meeting to address shareholders' queries.
     findings and follow up thereon.
                                                                  Table 6: Composition of shareholders'/investors'
8.   Reviewing the findings of any internal investigations        grievance committee
     by the internal auditors into matters where there is
     suspected fraud or irregularity or a failure of internal     Name                          Category           Designation
     control systems of a material nature and reporting the       Mr. R.C. Bhargava             Non-Executive      Chairman
     matter to the board.                                         Mr. Shinzo Nakanishi          Executive          Member
                                                                  Mr. Davinder Singh Brar       Independent        Member
9.   Discussion with statutory auditors before the audit
                                                                  Mr. Kenichi Ayukawa*          Non-Executive      Member
     commences, about the nature and scope of audit as well
     as post audit discussion to ascertain any area of concern.   *Appointed as member with effect from 21st July 2008.

10. Looking into the reasons for substantial defaults, if any,    The company secretary acts as the secretary to the
    in the payment to the depositors, debenture holders,          committee.
    shareholders (in case of non-payment of declared
                                                                  Objective
    dividends) and creditors.
                                                                  The committee oversees redressal of shareholders' and
11. Reviewing the functioning of the whistle blower               investors' grievances, transfer of shares, non - receipt of
    mechanism on a regular basis.                                 balance sheet, non - receipt of declared dividends and
                                                                  related matters. The committee also oversees the
12. Carrying out any other function as is mentioned in the
                                                                  performance of the registrar and transfer agents,
    terms of reference of the audit committee.
                                                                  recommends measures for overall improvement in the
13. Reviewing any other matter which may be specified as          quality of investors' services, approves issue of duplicate /
    role of the audit committee under the amendments, if          split / consolidation of share certificates and reviews all
    any, from time to time, to the listing agreement,             matters connected with the securities' transfers.
    Companies Act, 1956 and other statutes.
                                                                  In order to provide efficient and timely services to investors,
Meetings                                                          the board has delegated the power of approval of issue of
                                                                  duplicate / split / consolidation of share certificates, transfer
The audit committee met six times in the year under review -
on 24th April 2008, 21st July 2008, 29th September 2008,
24th October 2008, 29th January 2009 and 23rd March 2009.
Table 5 gives the details of attendance of audit committee
members.

Table 5: Attendance record of audit committee members
Name                        Category       Meetings
                                           attended in
                                           2008 -09 (Total
                                           meetings held: 6)
Mr. Amal Ganguli            Chairman                 5
Mr. Shinzo Nakanishi        Member                   6
Mr. Davinder Singh Brar     Member                   6
Ms. Pallavi Shroff          Member                   1


52    MARUTI SUZUKI INDIA LIMITED       Annual Report 2008 - 09
                                                                 Compiled by : Religare Technova Global Solutions Limited




of shares, transmission of shares, dematerialisation /              MANAGEMENT
rematerialisation of shares not exceeding 2000 equity
                                                                    Management discussion and analysis report
shares per transaction to the managing director, director &
managing executive officer and company secretary                    This annual report has a detailed report on management
severally.                                                          discussion and analysis.

Meetings                                                            Disclosures made by the management to the board
During the year, shareholders'/investors' grievance                 During the year, there were no transactions of material nature
committee met twice i.e. on 24th April 2008 and 24th                with the promoters, the directors or the management, their
October 2008. Table 7 gives the attendance record.                  subsidiaries or relatives, etc. that had potential conflict with the
                                                                    interest of the Company. All disclosures related to financial and
Table 7: Attendance record of shareholders' / investors'            commercial transactions where directors may have a potential
grievance committee members                                         interest are provided to the board and the interested directors do
                                                                    not participate in the discussion nor do they vote on such matters.
Names                     Meetings attended in 2008 09
                            (Total Meetings held: 2)
                                                                    Related party transactions
Mr. Shinzo Nakanishi                      2                         None of the transactions with any of the related parties was
Mr. Kenichi Ayukawa*                      -                         in conflict with the interests of the Company. Details of
Mr. Hirofumi Nagao**                      1                         transactions between the Company and its subsidiaries,
Mr. R. C. Bhargava                        2                         fellow subsidiaries, joint ventures, associates during 2008-09
Mr. Davinder Singh Brar                   2                         are given in note no. 25 in schedule 23 to the annual
                                                                    accounts.
* appointed with effect from 21st July 2008.
** Ceased to be a member with effect from close of business on
   10th July 2008.                                                  All related party transactions are negotiated on an arm's
                                                                    length basis and are in the interests of the Company.

Investor grievance redressal                                        Code of conduct for the board of directors and senior
During the year, 48 complaints were received and resolved.          management personnel
No transfer of shares was pending as on 31st March 2009.            The Company has laid down a code of conduct for the
                                                                    members of the board and identified senior management
                                                                    personnel of the Company.

                                                                    A copy of the code of conduct has been posted on the
                                                                    Company's website www.marutisuzuki.com

                                                                    The code of conduct has been circulated to all the members
                                                                    of the board and senior management personnel and they
                                                                    have affirmed their compliance with the said code of
                                                                    conduct for the financial year ended 31st March 2009. A
                                                                    declaration to this effect signed by Mr. Shinzo Nakanishi,
                                                                    Managing Director & CEO of the Company forms part of this
                                                                    report as Annexure A.



                                                   Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                               53
                                                                                                                                                                                                                                                                                                                                                                                                           Compiled by : Religare Technova Global Solutions Limited




CORPORATE GOVERNANCE REPORT (CONTD.)




CEO/ CFO certification                                                                                                                                                                                                                                         reporting, thereby reinforcing the commitment to adopt
The Company has in place a well defined and transparent                                                                                                                                                                                                        best corporate governance practices.
control self assessment mechanism to evaluate the                                                                                                                                                                                                              As required by clause 49 of the listing agreement, the
effectiveness of internal controls over financial reporting. To                                                                                                                                                                                                certificate duly signed by Managing Director & CEO and
facilitate certification by CEO/CFO for the financial year                                                                                                                                                                                                     Chief Financial Officer was placed before the board of
                                                                                                                                                                                                                                                               directors at its meeting held on 24th April 2009.
Enabling controls self-assessments through the "Controls Manager"

     PROCESS FOR REPORTING

                                                  Risks & Controls Map
                                                  Cycle (Level 1):     Accounting
                                                                                                       RACM
                                                                                               Major Process (level Process (level 3):
                                                                                                                                             Pages: 18 Version: Final
                                                                                                                                                        Sub Process
                                                                                                                                                                                                                                     Risks & Controls Map
                                                                                                                                                                                                                                     Cycle (Level 1):     Accounting
                                                                                                                                                                                                                                                                                          RACM
                                                                                                                                                                                                                                                                                  Major Process (level Process (level 3):
                                                                                                                                                                                                                                                                                                                                Pages: 18 Version: Final
                                                                                                                                                                                                                                                                                                                                           Sub Process
                                                                                                                                                                                                                                                                                                                                                                                                                        Risks & Controls Map
                                                                                                                                                                                                                                                                                                                                                                                                                                                RACM                    a
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Questionnaires
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              Controls




       Circulate online
                control
              feedback

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Control
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       DashBoard


                                     Surveys inputs




                                      Approving
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Flow to Upper Hierarchy




                                      Authority


                                      Reviewing
                                      authority


       Seek and report                 Control
           inputs from                 Owners
        control owners


                                                                                      * RACM : Risk & Control Matrix


2008-09, key internal controls over financial reporting were                                                                                                                                                                                                   Risk assessment and minimization procedure
identified and adequately assessed to provide sufficient                                                                                                                                                                                                       The Company is impacted by changes in the business
comfort. To ensure complete transparency and effectiveness
                                                                                                                                                                                                                                                               environment from time to time that necessitate continuous
of the self assessment, the whole process was carried out
through an on-line web based tool called “Controls                                                                                                                                                                                                             evaluation and management of significant risks faced by the
Manager”.                                                                                                                                                                                                                                                      Company. The Company has established appropriate risk
                                                                                                                                                                                                                                                               assessment and minimisation procedures. The process for
With the successful implementation of the on-line controls                                                                                                                                                                                                     formulating a defined risk assessment framework
self assessment framework, the Company has become one
                                                                                                                                                                                                                                                               encompassed, inter-alia, a methodology for assessing and
of the few companies in India to have a transparent
framework for evaluating the internal controls over financial                                                                                                                                                                                                  identifying risks on an ongoing basis, risk prioritising, risk



54     MARUTI SUZUKI INDIA LIMITED      Annual Report 2008 - 09
                                                                Compiled by : Religare Technova Global Solutions Limited



                                                                                                                   Quest Unlimited




mitigation, monitoring plan and comprehensive reporting             Code for prevention of insider trading practices
on management of enterprise wide risks.                             The Company has instituted a comprehensive code of
                                                                    conduct in compliance with the SEBI regulations on
An Executive Risk Management Committee (ERMC) is in
                                                                    prevention of insider trading. The code lays down
place to review the risk management activities of the
                                                                    guidelines, which advise on procedures to be followed and
Company on a regular basis. The composition of the
                                                                    disclosures to be made, while dealing with shares of the
committee consists of Managing Director & CEO and all
                                                                    Company and cautions on the consequences of non-
Managing Executive Officers of the Company. Risks are
                                                                    compliances.
evaluated by ERMC. In addition to the Company level risks,
ERMC also reviews, from time to time, any new risks that may        Details of non - compliance
arise due to market dynamics and changes in the business
                                                                    No penalties or strictures were imposed on the Company by
environment. The audit committee and the board of
                                                                    stock exchanges or SEBI or any statutory authority on any
directors also review the status of the risk management
                                                                    matter related to capital market since the last three years.
activities in the Company.
                                                                    Subsidiary companies information
Legal compliance reporting
                                                                    A statement, wherever applicable, of all significant
The board periodically reviews reports of compliance with
                                                                    transactions and arrangements entered into by the
all laws applicable to the Company, as well as steps taken by
                                                                    Company's subsidiaries is presented to the board of the
the Company to rectify instances of non-compliances.
                                                                    Company at its meetings.
The Company has developed comprehensive legal
                                                                    The audit committee of the Company reviews the financial
compliance scheduling and management software by
                                                                    statements and investments made by unlisted subsidiary
which specific compliance tasks are assigned to each
                                                                    companies. The minutes of unlisted subsidiary companies
individual. The software enables in planning and
                                                                    are placed before the board of the Company.
monitoring all compliance activities across the Company.

SHAREHOLDERS INFORMATION
Means of communication

Financial results                      Quarterly and annual financial results are published in “Times of India”, “Economic Times”,
                                       “Business Standard”, “Financial Express” and in Hindi editions of “Jansatta”.
Monthly sales                          Monthly sales figures are sent to stock exchanges as well as displayed on Company's website
                                       www.marutisuzuki.com.
News releases                          All official news releases are sent to stock exchanges as well as displayed on the Company's
                                       website www.marutisuzuki.com.
Website                                The Company's website www.marutisuzuki.com contains a dedicated segment called
                                       'investors' where all information needed by shareholders is available including ECS mandate,
                                       nomination form and annual report. The website also displays information regarding
                                       presentation made to media/ analysts/ institutional investors etc.
Annual report                          Annual report is circulated to members and all others entitled there to like auditors, equity
                                       analysts, etc.
Corporate Filing and Dissemination     All disclosures and communications to BSE and NSE are filed electronically through Corpfiling.
System (Corpfiling)                     Hard copies of the said disclosures and correspondence are also filed with the exchanges.
Exclusive e-mail id's for investors    Following e-mail id's have been exclusively dedicated for the investors queries:
                                       msilinvestorrelations@maruti.co.in
                                       mailmanager@karvy.com
                                       Queries relating to annual report may be sent to msilinvestorrelations@maruti.co.in and
                                       queries relating to transfer of shares and splitting/ consolidation / remat of shares,
                                       revalidation of expired dividend warrants and other queries relating to dividend may be
                                       sent to mailmanager@karvy.com




                                                   Annual Report 2008 - 09    MARUTI SUZUKI INDIA LIMITED                         55
                                                                                Compiled by : Religare Technova Global Solutions Limited




General body meetings
Table 8: Details of the last three AGMs of the Company

Financial Year          Location                                             Date                              Time
2005 - 06               Airforce Auditorium, Subroto Park, New Delhi         5th September 2006                10:00 a. m.
2006 - 07               Airforce Auditorium, Subroto Park, New Delhi         6th September 2007                10:00 a. m.
2007 - 08               Airforce Auditorium, Subroto Park, New Delhi         2nd September 2008                10:00 a. m.


The Company had passed special resolutions in the previous           Dividend payment
three AGM's. No special resolutions were required to be put          A dividend payment of Rs.3.50/- per equity share (face value
through postal ballot last year.                                     Rs.5/- per equity share) will be paid on or after 2nd
                                                                     September 2009, to those whose names appear in the
ADDITIONAL SHAREHOLDER                                               register of members / beneficial owners at the close of
INFORMATION                                                          business hours on 20th August 2009 subject to the approval
                                                                     of the members in the annual general meeting.
ANNUAL GENERAL MEETING
                                                                     Listing on stock exchanges
Date:             2nd September 2009
                                                                     The equity shares of the Company are listed on Bombay
Day:              Wednesday                                          Stock Exchange Limited, Mumbai (BSE) and National Stock
Time:             10:00 a.m.                                         Exchange of India Limited (NSE). The annual listing fees for
Venue:            Airforce Auditorium,                               the year 2009-10 have been paid to both the stock
                  Subroto Park, New Delhi - 110010.                  exchanges. Table 9 lists the Company's stock exchange
                                                                     codes. The Company has also paid the annual custodial fee
Financial year                                                       for the year 2009-10 to both the depositories namely,
Financial year: 1st April to 31st March.                             National Securities Depository Limited (NSDL) and Central
                                                                     Depository Services (India) Limited (CDSL).
For the year ending 31st March 2010, results will be
announced:                                                           Table 9: Stock code
By end of July 2009: First quarter results                           Bombay Stock Exchange Ltd., Mumbai (BSE)      532500
By end of October 2009: Second quarter results                       National Stock Exchange of India Ltd. (NSE)   MARUTI
                                                                     ISIN                                          INE585B01010
By end of January 2010: Third quarter results
By end of June 2010: Fourth quarter and annual results.
                                                                     Stock market data
Book closure                                                         Table 10 gives the monthly high and low prices of the
The period of book closure is from Friday, 21st August 2009          Company's equity shares on BSE and NSE for the year 2008 -
to Wednesday, 2nd September 2009 (both days inclusive).              09. Chart A plots the movement of Company's share prices
                                                                     on BSE vis-a-vis BSE Sensex for the year 2008 -09.




56      MARUTI SUZUKI INDIA LIMITED        Annual Report 2008 - 09
                                                                                                  Compiled by : Religare Technova Global Solutions Limited



                                                                                                                                                                Quest Unlimited




Table 10: Monthly high & low quotation of the Company's                                               Registrar and transfer agent
equity share                                                                                          Karvy Computershare Pvt. Limited
                 Bombay                 National                                                      Plot No. 17-24, Vittal Rao Nagar
              Stock Exchange        Stock Exchange
                                                                                                      Madhapur, Hyderabad 500 081
Month      High (Rs.) Low (Rs.) High (Rs.) Low (Rs.)
                                                                                                      Ph. No: 040-2342 0815-28
Apr 08                              854.40           718.00            855.00        720.00           Fax No. : 040-2342 0814 / 2342 0857
May 08                              834.90           735.30            835.00        751.10           Mail Id: mailmanager@karvy.com
                                                                                                      Website: www.karvycomputershare.com
Jun 08                              804.00           612.05            802.00        610.00
Jul 08                              662.00           530.50            660.00        520.50           Share transfer system
Aug 08                              720.00           474.90            725.70        553.00           The Company's shares are transferred in dematerialised
Sep 08                              750.00           618.35            766.00        618.50           form and are traded on the stock exchanges compulsorily in
                                                                                                      the demat mode. Any request for rematerialisation and / or
Oct 08                              747.60           476.15            749.00        475.00           transfer of shares in physical mode is also attended within
Nov 08                              635.00           468.25            639.00        467.80           the stipulated time.
Dec 08                              569.70           446.00            568.90        433.00
                                                                                                      Shareholding pattern
Jan 09                              607.00           428.40            604.00        502.30
                                                                                                      Table 11 and 12 lists the shareholding pattern and
Feb 09                              714.00           557.00            709.40        555.00           distribution schedule of equity shares of the Company as on
Mar 09                              798.00           639.00            799.00        640.40           31st March 2009 respectively.



 CHART A: MSIL STOCK PERFORMANCE AT BSE RELATIVE TO SENSEX
                                                                                                                                                                      Maruti
                            1200                                                                                                               18000                  Sensex
                            1100
   MSIL share price (Rs.)




                            1000                                                                                                               16000
                             900                                                                                                               14000
                             800                                                                                                                       Sensex
                             700                                                                                                               12000
                             600
                             500                                                                                                               10000
                             400                                                                                                               8000
                             300
                             200                                                                                                               6000
                                   Apr-08   May-08   Jun-08   Jul-08   Aug-08   Sep-08   Oct-08   Nov-08   Dec-08   Jan-09   Feb-09   Mar-09
                                                                                Compiled by : Religare Technova Global Solutions Limited




CORPORATE GOVERNANCE REPORT (CONTD.)




Table 11: (I) (a) Shareholding pattern as on 31st March 2009
Category Category of shareholder                             Number             Total      Number        Total shareholding as a
code                                                              of        number of     of shares         percentage of total
                                                         shareholder           shares       held in          number of shares
                                                                                         demateri-            As a          As a
                                                                                              alized   percentage percentage
                                                                                               form     of (A+B) 1   of (A+B+C)
(I)       (II)                                                      (III)         (IV)           (V)           (VI)        (VI1)
(A)       PROMOTER AND PROMOTER GROUP 2
(1)       INDIAN
(a)       Individuals /Hindu Undividend Family                         0            0             0           0.00          0.00
(b)       Central Government/State Government(s)                       0            0             0           0.00          0.00
(c)       Bodies Corporate                                             0            0             0           0.00          0.00
(d)       Financial Institutions / Banks                               0            0             0           0.00          0.00
(e)       Any Others                                                   0            0             0           0.00          0.00
          Sub-Total (A) (1)                                            0            0             0           0.00          0.00
(2)       FOREIGN
(a)       Individuals (NRIs/Foreign Individuals)                      0             0             0           0.00         0.00
(b)       Bodies Corporate                                            5     156618440             0          54.21        54.21
(c)       Institutions                                                0             0             0           0.00         0.00
(d)       Any Others                                                  0             0             0           0.00         0.00
          Sub-Total (A)(2)                                            5     156618440             0          54.21        54.21
          Total Share Holding of Promoter and
          Promoter Group (A)=(A)(1)+(A)(2)                            5     156618440             0          54.21        54.21
(B)       PUBLIC SHAREHOLDING 3
(1)       INSTITUTIONS
(a)       Mutual Funds /UTI                                         118       8917144      8917144            3.09         3.09
(b)       Financial Institutions /Banks                              52      53693847     53693847           18.58        18.58
(c)       Central Government / State Government(s)                    0             0            0            0.00         0.00
(d)       Venture Capital Funds                                       0             0            0            0.00         0.00
(e)       Insurance Companies                                         0             0            0            0.00         0.00
(f)       Foreign Institutional Investors                           345      55930494     55930494           19.36        19.36
(g)       Foreign Venture Capital Investors                           0             0            0            0.00         0.00
(h)       Any Others                                                  0             0            0            0.00         0.00
          Sub-Total (B)(1)                                          515     118541485    118541485           41.03        41.03
(2)       NON-INSTITUTIONS
(a)       Bodies Corporate                                         1267       6576273      6576273            2.28          2.28
(b)       Individuals
          (i) Individual shareholders holding nominal
          share capital up to Rs.1 lakh                       105740          6426742      6419535            2.22          2.22
          (ii) Individual shareholders holding nominal
          share capital in excess of Rs.1 lakh                        1         95000        95000            0.03          0.03
(c)       Any Others
          Clearing Members                                       186           469659       469659           0.16          0.16
          Non Resident Indians                                  1499           177881       177881           0.06          0.06
          Trusts                                                  17             4116         4116           0.00          0.00
          Foreign Nationals                                        2              464          464           0.00          0.00
          OCB                                                      0                0            0           0.00          0.00
          Sub-Total (B)(2)                                    108712         13750135     13742928           4.76          4.76
          Total Public Share Holding (B)=(B)(1)+(B)(2)        109227        132291620    132284413          45.79         45.79
          Total (A)+(B)                                       109232        288910060    132284413         100.00        100.00
(C)       Shares held by custodians, against which
          Depository Receipts have been issued                     0                0            0           0.00          0.00
          GRAND TOTAL (A)+(B)+(C)                             109232        288910060    132284413         100.00        100.00




58    MARUTI SUZUKI INDIA LIMITED        Annual Report 2008 - 09
                                                                      Compiled by : Religare Technova Global Solutions Limited




(I) (b) Statement showing shareholding of persons belonging to the category "promoter and promoter group"
                                                            Total shares held             Shares pledged or otherwise encumbered
Sl No. Name of the Shareholder                            Number          As a %        Number      As a Percentage        As a % of
                                                                       of Grand                                          Grand Total
                                                                           Total                                       (A)+(B)+(C) of
                                                                      (A)+(B)+(C)                                    Sub Clause (I) a

(I)       (II)                                                (III)            (IV)          (V)     (VI)=(V)/(III)*100             (VII)
1         SUZUKI MOTOR CORPORATION (SMC)                156618360            54.21             0                    0.00           0.00
2         SHINZO NAKANISHI NOMINEE OF SMC                      20             0.00             0                    0.00           0.00
3         KINJI SAITO NOMINEE OF SMC                           20             0.00             0                   0.00            0.00
4         SHINICHI TAKEUCHI NOMINEE OF SMC                     20             0.00             0                   0.00            0.00
5         MOTOHIRO ATSUMI NOMINEE OF SMC                       20             0.00             0                   0.00            0.00
          TOTAL                                        156618440             54.21             0                   0.00            0.00

No shares have been pledged by the Promoters as on 31st March 2009.


(I) (c) Statement showings hareholding of persons belonging to the category "Public" and holding more than 1% of the
        total number of shares
Sr. No.    Name of the shareholder                                        Number of shares                      Shares as a percentage
                                                                                                             of total number of shares
                                                                                                          {i.e. Grand Total (A)+(B)+(C)
                                                                                                       indicated in Statement at para
                                                                                                                           (I)(a) above}
1          HSBC GLOBAL INVESTMENT FUNDS A/C HSBC GLOBALINVEST                      7972000                                        2.76
2          STATE BANK OF INDIA, (EQUITY)                                           4958362                                        1.72
3          LIFE INSURANCE CORPORATION OF INDIA                                    31910182                                       11.05
4          LIC OF INDIA - MARKET PLUS                                              4786403                                        1.66
5          LIC OF INDIA MONEY PLUS                                                 5474518                                        1.89
           TOTAL                                                                 55101465                                        19.08



(I) (d) Statement showing details of locked-in shares
Sr No.         Name of the shareholder       Category of shareholders       Number of locked-in             Locked-in shares as a
                                                (Promoters/Public)               shares                      percentage of total
                                                                                                        number of shares {i.e. Grand
                                                                                                        Total (A)+(B)+(C) indicated in
                                                                                                       Statement at para (I)(a) above}

1                          Nil                            Nil                         Nil                                  Nil
2                          Nil                            Nil                         Nil                                  Nil
      TOTAL




                                                        Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                             59
                                                                               Compiled by : Religare Technova Global Solutions Limited




CORPORATE GOVERNANCE REPORT (CONTD.)




(II)(a) Statement showing details of Depository Receipts (DRs)
Sr. No.   Type of outstanding DR (ADRs,       Number of outstanding DRs   Shares underlying             Shares underlying
          GDRs, SDRS, etc.)                                                outstanding DRs            outstanding DRs as a
                                                                                                  percentage of total number
                                                                                                    of shares {i.e. Grand Total
                                                                                                     (A)+(B)+(C) indicated in
                                                                                                 Statement at para (I)(a) above}
1         Global Depository Receipts (GDRs)                0                       0                           0
          TOTAL                                            0                       0                           0




(II)(b) Statement showing holding of Depository Receipts (DRs), where underlying shares are in excess of 1% of the total
        number of shares
Sr No.    Name of the DR Holder                Type of outstanding DRs    Shares underlying             Shares underlying
                                               (ADRs, GDRs, SDRs, etc.)    outstanding DRs            outstanding DRs as a
                                                                                                  percentage of total number
                                                                                                    of shares {i.e. Grand Total
                                                                                                     (A)+(B)+(C) indicated in
                                                                                                 Statement at para (I)(a) above}
1         0                                                0                       0                           0
          TOTAL                                            0                       0                           0




Table 12: Distribution schedule as on 31st March 2009
Shareholding Class                Number of shareholders                  %              Number of shares                    %
1 to 5000                                        108,415               99.25                      31,737,905              2.20
5,001 to 10,000                                      223                0.20                       1,627,335              0.11
10,001 to 20,000                                      93                0.09                       1,338,090              0.09
20,001 to 30,000                                      49                0.04                       1,219,735              0.08
30,001 to 40,000                                      30                0.03                       1,061,360              0.07
40,001 to 50,000                                      20                0.02                         930,585              0.06
50,001 to 1,00,000                                    68                0.06                       4,872,745              0.34
1,00,001 and above                                   334                0.31                   1,401,762,545             97.05
TOTAL                                           109,232               100.00                  1,444,550,300             100.00
                                                                    Compiled by : Religare Technova Global Solutions Limited




Table 13: Top ten shareholders                                         audit is carried out every quarter and the report thereon is
List of top-ten shareholders as on 31st March 2009 is as follows:      submitted to the stock exchanges and is also placed before
                                                                       the board of directors. The audit, inter-alia, confirms that the
    Name                                                % of
                                                                       total listed and paid up capital of the Company is in
                                                     holding
                                                                       agreement with the aggregate of the total number of shares
1  Suzuki Motor Corporation                              54.21         in dematerialized form (held with NSDL and CDSL) and total
2  Life Insurance Corporation of India                   11.05         number of shares in physical form.
3  HSBC Global Investments Funds A/C HSBC                 2.76
   Global Investment Funds Mauritius Limited                           Outstanding GDRs / ADRs / warrants or any convertible
4 LIC of India Money Plus                                 1.89         instruments, conversion date and likely impact on equity
5 State Bank of India, (Equity)                           1.72         The Company had no outstanding GDRs / ADRs / warrants or
6 LIC of India Market Plus                                1.66         any convertible instruments.
7 The Master Trust Bank of Japan Ltd. A/C                 0.80
   HSBC Indian Equity Mother Fund                                      Details of public funding obtained in the last three years
8 Norges Bank A/C Government                                           The Company has not obtained any public funding in the last
   Petroleum Fund                                         0.80         three years.
9 T Rowe Price International Inc A/C T Rowe
   Price New Asia Fund                                    0.77         Adoption of non-mandatory requirements
10 JP Morgan Asset Management (Europe)                                 The Company complies with the following non-mandatory
   S.A.R.L A/C Flagship Indian Investment
   Company (Mauritius) Limited                           0.70          requirements as provided in listing agreement:
   Total                                                76.36          a. The chairman's office with required facilities is being
                                                                            maintained by the Company at its expense, for use by
                                                                            its non-executive chairman.
Dematerialisation of shares and liquidity                              b. The Company has established an effective mechanism
As on 31st March 2009, 45.79% of the Company's total paid                   called Whistle Blower Policy (Policy). The mechanism
up equity capital representing 132,284,413 equity shares                    under the policy has been appropriately communicated
was held in dematerialised form and the balance 54.21%                      within the organisation. The purpose of this policy is to
representing 156,625,647 equity shares was held in physical                 provide a framework to promote responsible whistle
form. The equity shares of the Company are listed under                     blowing by employees. It protects employees wishing to
specified category in BSE and are part of Nifty in NSE.                     raise a concern about serious irregularities, unethical
                                                                            behaviour, actual or suspected fraud within the
Secretarial audit                                                           Company.
As stipulated by the Securities and Exchange Board of India
(SEBI), a qualified practising Company Secretary carries out                Mr. Amal Ganguli, the Chairman of audit committee has
secretarial audit and provides a report to reconcile the total              been appointed as the ombudsperson and direct
admitted capital with the National Securities Depository                    access has been given to the employees to contact him
Limited (NSDL) and Central Depository Services (India)                      through e-mail, post and telephone for reporting
Limited (CDSL) and the total issued and listed capital. This                any matter.




                                                      Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                           61
                                                                 Compiled by : Religare Technova Global Solutions Limited




CORPORATE GOVERNANCE REPORT (CONTD.)




Plant location                                              Maruti Suzuki India Limited
The Company has four plants, three located in Palam         1, Nelson Mandela Road, Vasant Kunj
Gurgaon Road, Gurgaon, Haryana and one located at           New Delhi-110070.
Manesar Industrial Town, Gurgaon, Haryana.                  Phone No.: (91)-11-4678 1000
                                                            Email Id: msilinvestorrelations@maruti.co.in
Address for correspondence                                  Website: www.marutisuzuki.com
Investors may please contact for queries related to:
                                                       Secretarial standards issued by the Institute of
I.    Shares held in dematerialised form               Company Secretaries of India (ICSI)
      Their Depository Participant(s)                  ICSI, one of the premier professional bodies in India, has
      and/or                                           issued 9 secretarial standards as on 31st March 2009. These
      Karvy Computershare Pvt. Limited                 secretarial standards are recommendatory in nature. The
      Plot No. 17-24, Vittal Rao Nagar                 Company substantially observes secretarial standards
      Madhapur, Hyderabad-500 081.                     voluntarily as good corporate governance practice and for
      Phone No.: 040-2342 0815-28                      protection of interest of all stakeholders.
      Fax No. : 040-2342 0814 / 2342 0857
      Mail Id: mailmanager@karvy.com
      Website: www.karvycomputershare.com

II.   Shares held in physical form
      Karvy Computershare Pvt. Limited
      (at the above given address)
      or
      The Company at the following address:
                                                                Compiled by : Religare Technova Global Solutions Limited




ANNEXURE A                                                                                                       Quest Unlimited




DECLARATION OF THE MANAGING DIRECTOR & CEO

This is to certify that the Company has laid down code of conduct for all the board members and senior management personnel
of the Company and the same is uploaded on the website of the company www.marutisuzuki.com.

Further, certified that the members of the board of directors and senior management personnel have affirmed the compliance
with the code applicable to them during the year ended 31st March 2009.


Date: 28th April 2009                                                                                        Shinzo Nakanishi
Place: New Delhi                                                                                        Managing Director & CEO




AUDITORS' CERTIFICATE REGARDING COMPLIANCE OF CONDITIONS OF CORPORATE
GOVERNANCE

To the Members of Maruti Suzuki India Limited

We have examined the compliance of conditions of Corporate Governance by Maruti Suzuki India Limited, for the year ended
March 31, 2009, as stipulated in Clause 49 of the Listing Agreement(s) of the said Company with stock exchange(s) in India.

The compliance of conditions of Corporate Governance is the responsibility of the Company's management. Our examination
was carried out in accordance with the Guidance Note on Certification of Corporate Governance (as stipulated in Clause 49 of the
Listing Agreement), issued by the Institute of Chartered Accountants of India and was limited to procedures and
implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is
neither an audit nor an expression of opinion on the financial statement of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has
complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement(s).

We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the management has conducted the affairs of the Company.

                                                                                                             Anupam Dhawan
                                                                                                                        Partner
                                                                                                       Membership No: F 084451
                                                                                                           For and on behalf of
Place: Gurgaon                                                                                                Price Waterhouse
Date: May 29, 2009                                                                                       Chartered Accountants




                                                   Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                          63
                                                                            Compiled by : Religare Technova Global Solutions Limited




MANAGEMENT DISCUSSION AND ANALYSIS




OVERVIEW                                                          Plate1: Industry Growth - The flatness in growth was
                                                                  actually an aggregate of huge quarterly swings
Industry Overview
The financial year 2008-09 witnessed unprecedented                 QUARTERLY YOY GROWTH
fluctuation in the macroeconomic environment both                  OF PASSENGER VEHICLES FY09                        YOY GROWTH

globally and in India. The Indian economy was less affected        20.00%    15.10%
and managed to grow well above 6%. Within the year, there
                                                                   15.00%
was a huge swing in business and consumption sentiment
                                                                   10.00%
with the growth rates steeply declining in the second and
                                                                                                            1.60%
third quarters and then showing some recovery in the fourth         5.00%              0.50%                           0.10%

quarter.                                                            0.00%
                                                                               Q1       Q2         Q3        Q4       Industry total
                                                                   -5.00%
Car loans, which are a critical growth driver for the industry,
saw a major curtailment by banks and finance companies,           -10.00%

owing to a liquidity crunch and court directives against          -15.00%
                                                                                                 -15.50%
forced repossession of financed assets during default. Most        YOY
                                                                   GROWTH
commodity prices went up and this hurt the profits of
                                                                            Q1 FY09   Q2 FY09   Q3 FY09    Q4 FY09
manufacturing businesses and disposable incomes of
households alike. The news of gloom and doom in the global
economy also depressed consumer sentiment and                     Company Overview
customers adopted a 'wait and watch' approach before              Overall, the Company managed to grow faster than industry
making discretionary purchases. All these factors hit the         in unit sales at 1.5% in the domestic market and at 3.6%
passenger vehicle industry severely and it could barely           including exports. Market share went up from 45.9% to
manage to remain flat after six years of robust growth.           46.5% in passenger vehicles overall. Some of the models like
                                                                  the Swift and DZire had buoyant demand and the Company
                                                                  improved processes to produce more cars from the same
                                                                  facility and serve a waitlist in the market.
                                                                                 Compiled by : Religare Technova Global Solutions Limited



                                                                                                                                   Quest Unlimited




Plate 2: Industry Growth - How did car sales move                                     Benefiting from a change in the product mix, the Company
across India over time                                                                registered a growth of 14.28 % in its total income to Rs
                                                                                      214,538 million.
 INDUSTRY GROWTH:
 GEOGRAPHIC DISTRIBUTION                                                              The combined impact of sales volumes not growing as
                                                      Growth %
                                                                                      planned, foreign currency fluctuations and a steep
                                                                                      hardening of commodities led to net profit going down
                                            Q1   Q2     Q3       Q4    Total          about 29.6% (PAT/Net Sales from 9.7% in FY '0708 to 6% in
                                                                                      FY '0809 and EBIDTA/Net Sales from 17.5% in FY '0708 to 12%
                                Top 10
                                Cities      7    -7     -23      -9     -8            in FY '0809). This impact on the margin was lower than most
                                                                                      other passenger vehicle manufacturers whose financial data
                                Next 10
                                                                        1
                                                                                      are public.
                                Cities      8    0      -12      8
     CITY WISE CLASSIFICATION




                                                                                      The Company was on schedule on its capital investment
                                Next 20                                               programmes, and the operational cashflows were sufficient
                                Cities      14   -4     -11      10     2
                                                                                      to cover the Company's capital expenditure at the peak of its
                                Next 60
                                                                                      investment cycle.
                                Cities      17   12      2       23     13
                                                                                      Long term programmes & capital expenditure
                                                                                      For the Company it was also its 25th year of operation and
                                Other
                                Cities      31   22     11       34     25            beyond the action and excitement of short term market
                                                                                      challenges, it was able to keep its focus on taking steady and
                                                                                      substantial measures for the long term.
                                All India   12   -1     -13   4.2       0.1




Plate 3: Auto Industry Growth: Indian Automobile Domestic Sales Growth Rate (%)
Category                                              2003-04               2004-05      2005-06         2006-07         2007-08         2008-09
Total CVs                                                 36%                   22%           10%            33%               5%          -21.7%
  - M&HCVs                                                39%                   23%            5%            33%               0%            -33%
  - LCVs                                                  32%                   21%           19%            34%              12%             -7%
Total Passenger Vehicles                                  28%                   18%            8%            21%              12%            0.1%
  - Passenger Cars                                        29%                   18%            8%            22%              12%            1.3%
    - A1                                                  17%                  -31%          -23%           -11%             -12%            -29%
    - A2                                                  23%                   34%           15%            31%              14%            3.1%
    - A3                                                  51%                   26%            7%             6%              15%            7.1%
    - A4, A5 & A6                                        209%                   60%            7%            40%               4%          -13.3%
  - Utility Vehicles                                      29%                   20%           10%            13%              11%           -7.9%
  - MPVs                                                  14%                    9%            2%            25%              21%            5.7%
Total Two Wheelers                                        11%                   16%           14%            11%              -8%            2.6%
  - Scooters                                                7%                   4%           -2%             4%              12%            9.1%
  - Motorcycles                                           14%                   19%           17%            13%             -12%            1.2%
  - Mopeds                                                 -9%                   5%            3%             7%              16%            4.2%
Three Wheelers                                            23%                    8%           17%            12%             -10%           -4.1%
Grand Total                                               15%                  16%           13%           13.7%            -4.6%            0.7%

Source: Society of Indian Automobile Manufacturers.

                                                                      Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                        65
                                                                                 Compiled by : Religare Technova Global Solutions Limited




MANAGEMENT DISCUSSION AND ANALYSIS (CONTD.)




The Company raised its production capacity to a landmark 1            The external environment comprised unprecedented
million cars. It launched the A-star- the fifth World Strategic       macroeconomic challenges and strong product launches
Model of Suzuki and its most fuel efficient car ever. This car is     and aggressive prices from competition. The shared
branded as the Alto in Europe, the Pixo as retailed by Nissan         leadership model enabled a measured response to the
in Europe, the Celerio in non-European markets and the A-             dynamic market situation. Encouraged by the experience, a
star in India.                                                        number of people development initiatives are being taken
                                                                      at senior, middle and junior management to take this
The Company's next generation fuel efficient K-series engine
                                                                      concept deeper and wider in the organization.
program went onstream from a highly integrated plant. In
the area of R&D capability, the strength of design engineers          Sustainability
increased from 398 to 730 and work is in progress for a world         Whether it is the successful experience of 25 years or the factors
class test track and crash test facility.                             that kept the Company strong in the current difficult
                                                                      environment, most of the Company's learnings converge to
The Company's first Brand Centre is ready in Vasant Kunj, New
                                                                      Sustainable practices. We do think, this approach is at the heart
Delhi and land is in the process of being acquired near
                                                                      of the Company's business philosophy and merits a discussion.
Bangalore for a stockyard. Both initiatives seek to enhance
connection with customers. To create port capacity for shipping       The Company's relationship with its stakeholders is one of
out cars in large numbers, a roll-on roll-off terminal was built at   mutual respect and trust. Its products, services,
Mundra in Gujarat in partnership with the Adani group.                management initiatives and conduct will aspire to promote
                                                                      their sustained growth and well-being.
The Company incurred a total capital expenditure of about
Rs 16,749 million in the year on some of the projects                 For instance, the Company's payment practices with its
mentioned above. The cash profit was sufficient to cover this         vendors and dealers encourage and facilitate financial
capital expenditure. In the year 2009-10, the Company will            discipline in them; vendors get weekly payments and
continue to modernize some part of its Gurgaon plant,                 dealers do not get any credit. This self reliance has given the
expand its K-series capacity, invest further in new model             dealers strength to tide over working capital challenges in
development and take the projects of test track and crash             this year. The Company has over the years, worked with
course facility and Brand Centres further.                            them to build downstream businesses like service, insurance
                                                                      and pre-owned cars to strengthen their profitability.
Management Restructuring
                                                                      Similarly, the Company's vendors were relatively less
This was the first full year after the management change in
                                                                      affected by the slowdown.
December, 2007 with a new Managing Executive Officer
structure. The Company created a second line of leadership
in charge of five critical verticals in the organization.
                                                                     Compiled by : Religare Technova Global Solutions Limited




In another area, for instance, the Company has adopted four             The passenger vehicle market has three segments:
villages in the vicinity of its Manesar plant and is working in                                   PASSENGER VEHICLE MARKET
partnership to improve the quality of life of the community.
                                                                                     A                                 B                                C
The Company is committed to promoting road safety in India,
                                                                              Passenger Cars                   Utility Vehicles                   Multi Purpose
and is concerned that the ratio of road accidents to car                  (further classified into                                                  Vehicles
                                                                               A1, A2… A6
population in India is among the highest in the world. In the past           depending on the
                                                                              size of the car)
seven years, the Company has set up two institutes of driving
training in partnership with the Delhi Government. In addition,
50 neighbourhood driving training schools have been set up in           The share of each industry segment and the market share of
partnership with dealers in various cities across the country.          the company in each segment are as follows:
                                                                        Plate 4: Segments A, B, C and MSIL share in each Segment
This year, giving shape and structure to its effort, the
Company unveiled a national road safety mission, wherein it              SHARE OF SEGMENTS
will train 500,000 people in safe driving in the next three              IN THE TOTAL PASSENGER                                        A: PASSENGER CARS
                                                                                                                                        B: UTILITY VEHICLES
                                                                         VEHICLE MARKET                                         C: MULTI PURPOSE VEHICLES
years. At least 100,000 of these will be from economically
under-privileged sections of society. It is planned that the                225,800
                                                                                                                              106,607
                                                                                                                              C: Multi Purpose Vehicles
                                                                            B: Utility Vehicles
quality of training of drivers would be upgraded by
modernizing the system and training a large number of
trainers. Given the magnitude of the problem, this novel
initiative is designed to facilitate and catalyse a wider
national participation in promoting road safety. The
Company hopes for strong support in this venture from                                                                                                1,219,473
                                                                                                                                                A: Passenger Cars
State Governments.
                                                                                                            UNITS SOLD IN FY09
While the Company has always been sensitive to the
interests of multiple stakeholders, it has now decided to
                                                                         MARUTI SUZUKI'S MARKET SHARE
adopt best practices in mapping and engaging stakeholders                IN THESE SEGMENTS (FY09)
and share information about the economic, environmental
                                                                                    80.00%
and social impact of its business in a transparent manner.                                                                                          73.10%

                                                                                    60.00%
BUSINESS PERFORMANCE                                                                                        52.20%
Domestic Market                                                                     40.00%
For the larger part, the financial year was marked with
limited availability of retail finance and depressed consumer
                                                                                    20.00%
sentiment. On the competition front, there were new
models in both A2 and A3 segments. Some models also                                                                         4.00%
introduced aggressive pricing in a bid to capture volumes. In                         0.00%
                                                                              MARKET SHARE
such a backdrop, the domestic industry performance was                   IN THESE SEGMENTS
flat at 0.1% growth. The Company grew by 1.5%.                                                    A: Passenger Cars   B: Utility Vehicles    C: Multi Purpose
                                                                                                                                                Vehicles



                                                       Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                                                          67
                                                                                        Compiled by : Religare Technova Global Solutions Limited




MANAGEMENT DISCUSSION AND ANALYSIS (CONTD.)




The Company increased its share marginally in the total                     this with the launch of the Ritz the last of five World Strategic
passenger vehicle market from 45.9% to 46.5% and in                         models of Suzuki.
passenger cars from 51.4% to 52.2%. While the company's
share in A1 and A2 segments remained the same, the                          The car industry took a big step in favour of the customer by
Company was able to increase its market share in the A3                     voluntarily deciding to display government certified fuel
sedan segment from 15% in 2006-07 to 22% in 2007-08 to                      efficiency figures at showrooms. The Company was the first
30% in 2008-09.                                                             one to implement this across all its models and showrooms.

The Company launched a new A2 segment car, branded the                      The Company was recognized for the ninth consecutive year
A-star in India and in Europe as the new Alto. Powered by the               for the highest customer satisfaction in India in the annual
new, state-of-the-art, light weight, 998cc K-series petrol                  survey by JD Power Asia Pacific. The Company was the only
engine, A-star has the best in class mileage of 19.59                       manufacturer with its score above industry average.
kilometers per litre. It is positioned as an environment
                                                                            Recognizing the increasingly busier lifestyles of the urban
friendly vehicle in Europe owing to its low emission, while its
                                                                            car owner, the Company has started night servicing of cars
attractive design makes it suitable for the young, upwardly
                                                                            with pick up and drop facilities. While it is an effort to fit into
mobile urban Indian. The A-star meets the European ELV
                                                                            the customer's life style, it also helps improve asset
norms, which implies that 85 per cent of the car is recyclable.
                                                                            utilization in the service workshop operations.
With the A-star, the Company has given eight new models to
                                                                            Apart from exciting products and customer friendly steps, the
the Indian customer in forty months.
                                                                            Company tried to address the slowdown by targeting specific
The Swift and the DZire continued to be popular with a                      consumer segments and by tying up with more public sector
wait-list extending to a few months. The Company stretched                  banks to help provide car loans to willing customers.
and produced more units of these models in an otherwise
dull market.                                                                The rural segment, with wealth generation from increased
                                                                            crop realizations and the government employees after a
Within the compact car A2 segment, the premium A2 (or                       major salary hike by the government, have become
Swift) segment is showing excellent growth. The Company                     potentially lucrative consumers for most marketers. The
also believes this will be the focus of more new model                      Company has dedicated a large sales force along with
launches by competition. The Company seeks to strengthen                    innovative marketing methods to leverage these segments.

Plate 5: Retail Finance Penetration & Share of PSU and Private Banks
                                                                                                                                PSU BANKS
                                                                                                                            PRIVATE BANKS
 RETAIL FINANCE PENETRATION                                                                                           FINANCE PENETRATION


         80%
                            72%       72%        71%      71%
                    70%                                              71%
         70%                                                                      67%
                                                                                                                                      65%
                                                                                                                62%         61%
                                                                                            60%      60%
         60%


         50%


         40%

         30%


         20%

         10%
     PSU BANKS
 PRIVATE BANKS
       FINANCE
  PENETRATION

         FY09    April    May      June       July     August   September     October   November December   January     February   March


68     MARUTI SUZUKI INDIA LIMITED        Annual Report 2008 - 09
                                                                  Compiled by : Religare Technova Global Solutions Limited




A liquidity crunch in the economy, and fears of a                    Export Market
government clampdown on repossession of assets for                   The Company clocked its highest ever exports at 70,023
defaults on loans caused some major private sector banks to          units, a growth of 32.1% over the previous year.
withdraw drastically from auto loans. The Company signed
agreements with six public sector banks, to help improve             This was a year of a major boost to the Company's export
retail finance availability.                                         business with the launch of A-star as the new Alto in Europe.
                                                                     With a CO2 emission as low as 103 g/km, a fuel consumption
Plate 5 shows how finance penetration dipped during the              of 4.4litres /100km, conformance to Euro V emission norms
year, to recover somewhat in the later part and the role of          that are expected in 2010 and sporting premium features
public sector banks who stepped in to arrest the fall. The           like Electronic Brakeforce Distribution, the Company has
Company is working along with the auto industry and the              made it clear that safety, eco-friendliness, fuel economy and
banking and finance industry to request the Reserve Bank of          style can all be combined in a single product at a very
India to ease and clarify repossession norms in India. The           affordable price. Given these product features and the
liquidity position has already improved and it is hoped that         Company's quality levels, Nissan has contracted to buy this
private sector banks will restore focus on auto loans.               car and retail it in Europe under their brand name “Pixo”. This
                                                                     deal is expected to add upwards of 30,000 units in export
The Sales and Service network is a key strategic strength of
                                                                     sales in the coming years.
the Company. This year also network expansion was done,
but with caution so as to capture more ground while taking           The European market was showing a heavy downward slide
care not to cannibalize the volumes of existing dealers. The         in the year, but the small car segment was largely intact.
Sales network added 81 more outlets to reach 681 and                 Towards the end of the financial year, some countries like
increase the number of cities from 393 to 454. Similarly 139         Germany, Italy and France announced scrappage benefits
more service workshops (total 2767) were activated to                on old cars and this has suddenly revived car sales in these
increase cities covered from 1220 to 1314 cities.                    markets. The sustenance of this demand pattern and the
                                                                     continuity of the government package remain to be seen.
One of the key initiatives that maintained dealer profitability
                                                                     Towards the end of the financial year, there was weakness in
in these difficult times was productivity in the dealer service
                                                                     non European markets of Algeria, Chile, Egypt, etc.
workshops. A smart use of lean manufacturing techniques,
                                                                     Considering the market dynamics in the year 2009-10,
normally employed in manufacturing was done to improve
                                                                     markets will have to be closely watched and inventories and
asset utilization, improve productivity and reduce service
                                                                     production mix will have to be planned in a flexible and agile
lead time in workshops all over the country. With this
                                                                     manner. With the new Alto, the Company is hopeful of a
network capacity and productivity, the Company's dealers
                                                                     significant increase in its export volumes in the year 2009-10.
and authorized service stations serviced more than 11
million cars in the year.
                                                                     Spare Parts & Accessorries
The pre-owned car business of the Company under the                  The parts and accessories business served as a good cushion
“TrueValue” brand also helped generate a sale of 104,550             to both revenues and profits this year.
new cars through exchange or trade in. This business
enhances residual value of the in-use cars of the company for        The total parts and accessories sales grew by 13% from
the new car customer and also generates an additional                Rs 10,858 Million to Rs 12,264 Million.
revenue stream for dealers.                                          The spare parts operations works at a high level of
                                                                     complexity and scale: more than 30,000 parts, purchasing



                                                    Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                          69
                                                                            Compiled by : Religare Technova Global Solutions Limited




MANAGEMENT DISCUSSION AND ANALYSIS (CONTD.)




from more than 200 vendors and dispatching to more than          building is an integrated and orchestrated effort on several
600 dealer showrooms in India and more than 70                   fronts:
distributors abroad. The Company's parts operations have         l    induction and training of engineers
been adjudged the best within Suzuki group.                      l    putting up Computer Aided Engineering infrastructure
                                                                      with sharing with collaborators and vendors
The team is now working on a new initiative to reduce
                                                                 l    installation of test laboratories and equipment
dealers' spare parts inventory. This may unlock sizeable
working capital for the dealers' car business and also           l    R&D capability enhancement with vendors with
generate operational efficiencies.                                    compatibility in design culture and IT tools
                                                                 l    putting the knowledge into practice through live
RESEARCH & DEVELOPMENT                                                projects

Suzuki technology has given products which are just right        The Company is on schedule on all these fronts. It continued
                                                                 its recruitment programme increasing the R&D strength
for India. Interestingly, the new design philosophy of sporty,
                                                                 from 398 to 730 engineers, well on course towards the target
bold, European styled products which are at the same time
                                                                 of 1000 engineers. A dedicated human resource department
high on value and reliability, is also moving in tandem with
                                                                 customized for R&D has been set up to cater to this scale of
the changing India. The Company believes that while Suzuki       induction and training. Work has started on a world class
support is extremely valuable going forward, the way the         test track and crash test facility.
Indian market is growing, it additionally needs to develop its
own R&D capability.                                              The Company has made a quantum jump in engine
                                                                 technology by the successful launch of its next generation K-
The Company's evolution in this area started with                series engine. This technology makes the engine light
localization of parts with Suzuki design. It then started        weight, low friction, low on noise and vibrations, high on fuel
making facelifts of existing models like that of M800, Esteem,   efficiency and more eco-friendly.
WagonR, Zen. The next step was to do collaborative design
along with Suzuki engineers on World Strategic models. The       The Company's effort in developing design capability is
Swift, the SX4, the A-star and the new model Ritz all belong     showing visible results. JD Power Asia Pacific conducts a
to this category. Upgrading engines to meet stricter             survey on excellence in Automotive Performance, Execution
emission norms and developing alternate fuel options have        and Layout (APEAL). The Company's models were awarded
also been independently handled by the Company. The              best in category in four passenger car segments this year:
Company is now targeting developing independent full             WagonR in Entry Compact, Swift in Premium Compact, Swift
body design capability.                                          Dzire in Entry Midsize and SX4 in Midsize segments.

The Company started with a structured competency and             Cost management is also a very structured function in the
capacity mapping and needs analysis. R&D capability              Engineering vertical. For new products a highly disciplined
                                                                   Compiled by : Religare Technova Global Solutions Limited



                                                                                                                   Quest Unlimited




approach of “Design to cost” is adopted. For cost reduction           regularly performed beyond its capacity through
in existing products, various tools like value engineering,           productivity improvements.
localization, raw material yield improvement continue to be
employed. Cost reduction projects are driven by cross-                Modernisation of Gurgaon plant
functional teams with involvement of procurement,                     There are three plants in the Gurgaon factory commissioned
engineering and quality functions along with the vendors of           in 1983, 1994 and 1999 respectively. While all equipment
the subject components or systems. An IT system to record             and systems are under kaizen (continuous improvement),
and process cost reduction ideas helps make the process of            the Company completed the major part of modernization
innovation a line function in the Company. With organized             for its first plant. All new model development and old model
efforts on quality improvement, the Company was able to               discontinuation is facilitated by a team of production
reduce its warranty claim ratio by about 10% in the year.             engineers who reconfigure the manufacturing process and
                                                                      equipment with optimal use of space and time.
OPERATIONS
                                                                      K-series engine plant
The scale and complexity of the Company's manufacturing
operations have now moved to a different league. The                  The Company commissioned its next generation
Company reached a capacity of one million cars annual                 technology K-series engine plant in Gurgaon this year. It is a
production this year and was also able to operate at this             vertically integrated plant comprising assembly and
average rate in the month of March, 2009. The operations              machining operations along with a state of the art
comprise four car plants across two locations, two engine             aluminium foundry for key LPDC and HPDC (low pressure die
plants (including a diesel engine joint venture), twelve              cast and high pressure die cast) parts of the engine. One of
models with more than two hundred variants.                           the key technologies employed is that of Cold engine
                                                                      testing, wherein engines do not need to be run on ignition
The Company has identified four major pillars of                      for testing thereby making the engine manufacturing much
manufacturing excellence: Safety, Quality, Productivity and           faster and safer.
Cost. The entire effort of Japanese best practices and Indian
innovation seek to achieve these objectives. The Company's            Energy and environment conservation
engineers have deployed software tools developed inhouse              The Company took a host of measures to reduce, reuse and
to adjust to major changes in production plan with speed              recycle critical resources, frequently employing latest
and agility without compromising productivity or quality.             technologies to achieve this. A project has been conceived
                                                                      to utilize the waste heat from the existing power generation
Safety has received top management focus in the Company               gas turbine for further power generation and steam
and a culture of strict observance of safety principles is being      production for use in the paint shop.
driven through the organization through innovative
methods of communication and education.                               New Registered Office
The Company's recently commissioned Technical Training                The Company shifted its Head Office and North Zone Sales
Centre is supporting capability building of people. A                 Office from erstwhile leased offices in Connaught Place, New
number of inhouse automation projects were taken up                   Delhi to its own constructed Head Office in Vasant Kunj, New
which have generated savings of about Rs 102 million                  Delhi. The new office is eco-friendly and designed to use
through import substitution of robots, AGVs (automated                natural resources to meet a large part of its lighting, heating
guided vehicles) and other capital equipment.                         and cooling requirements.

Expansion of capacity at Manesar                                      Logistics
The Company produces the Swift, DZire, SX4 and A-star                 To support its export shipments, the Company
models at its Manesar plant. Following a strong demand for            commissioned a dedicated Roll-on Roll-off car terminal at
these models, the Company increased production capacity               Mundra sea port in partnership with MPSEZL (Mundra Port
at this plant from 130,000 cars to 300,000 cars a year. Right         and Special Economic Zone Limited). Built with an initial
from inception in the year 2006, the Manesar plant has




                                                     Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                          71
                                                                             Compiled by : Religare Technova Global Solutions Limited




MANAGEMENT DISCUSSION AND ANALYSIS (CONTD.)




investment of Rs 1 billion, of which the Company's share is       COMPONENTS & RAW MATERIAL
40%, the mega car terminal houses a state-of-the-art              PROCUREMENT
'Washing and Waxing Inspection' centre, a car stockyard and
a parking area.                                                   The Component and Raw material cost of the Company saw
                                                                  a steep increase this year as most commodity prices shot up
The Company has jointly developed with the Indian                 to their highest levels ever in the first half of the year.
Railways, special Auto Wagons, to support a high capacity,        Coincident to commodity price increase was the
high speed and safe car transportation system. The                depreciation in the value of rupee and a strengthening of the
Company is also working on a railway line from inside its         Japanese Yen. This translated into a huge cost impact on the
Manesar plant which can directly connect with the terminal        Company's imports and its vendors' imports.
at Mundra.
                                                                  The last few months of the year saw a correction in the prices
Information Technology                                            of most commodities, but given the inventories in the
                                                                  system and the periodicity of contracts, it will take some time
While core business processes of production, logistics,
                                                                  before the benefits can accrue to the Company.
upstream and downstream supply chain operations of the
Company are built on Japanese management principles, a            The Company worked hard along with its vendors on cost
strong value add from the Indian side is the IT enabling of       reduction initiatives. The key initiative was a raw material
these processes. The combination of Japanese management           yield improvement program with a micro focus on each
wisdom and Indian IT systems is a potent one. It has helped       component on the lines of Suzuki philosophy. Called “One
generate process efficiencies and lean operations. It also        Component One Gram”, this program calls for weight
helps manage complexity and scale, both inhouse and at            reduction of one gram for every component. With this micro
dealers and vendors.                                              focus, the raw material yield improvement savings increased
                                                                  by a factor of three this year as compared to the previous
The Company's Dealer Management System enhanced its
                                                                  year.
coverage across the network of dealers throughout the
country. This system enables the Company and its dealers to       The Company has in the past instituted sustainable practices
have real time access to information on dealer operations,        in its relationship with vendors like communicating realistic
customer information and feedback.                                volumes to avoid excess capacities and inventories and
                                                                  making quick payments to facilitate healthy cashflows and
The Company's data centre incorporates risk mitigation for
                                                                  financial discipline. The Company's vendors were relatively
earthquake, fire, flood safety with a parallel link to Disaster
                                                                  less affected by the economic slowdown and the liquidity
Recovery sites. The Company is ISO270001 certified. There is
                                                                  crunch, compared to those with a major exposure to the
a comprehensive set of security policies and procedures to
                                                                  commercial vehicle segment. The Company is careful to
protect & safeguard all critical information assets from
                                                                  guard against any supply disruption in the future because of
internal & external threat sources in order to ensure secure
                                                                  financial problems with vendors or their collaborators or 2nd
provision of business operations.
                                                                  or 3rd tier vendors.
Future
                                                                  The Company was able to localize at inception some new
The Company has over the past few years benefited                 technology parts for the A-star like dual cam technology
immensely from Japanese principles of productivity and            parts, offset crankshaft, electronic throttle body, plastic
quality and Indian innovation in its operations. The year         intake manifold, high tensile steel body panels etc.
2009-10 will however put to test a different set of
competencies - its flexibility and agility in meeting a           Future
fluctuating and unpredictable demand scenario. The                The Company has identified some key areas for action in the
Company at the same time has to stay lean so that it is not       coming year:
burdened with unnecessary costs. The Company is
conscious it needs to be lean and agile at the same time and      ? Enhancing
                                                                  l              reliability in the supply chain, with special
has begun work to meet this challenge.                               focus on financial and industrial relations issues.




72    MARUTI SUZUKI INDIA LIMITED       Annual Report 2008 - 09
                                                               Compiled by : Religare Technova Global Solutions Limited




? Continuation
l                of cost reduction programmes including           image as a respected and caring organization, offering
   raw material yield improvement or developing alternate         challenging assignments and growth opportunities, helped
   sources of raw material.                                       attract bright engineers. The compensation package was
l Tier vendor upgradation. Over the past 25 years, the
? 2nd                                                             also made more attractive.
   Company has done substantial work in bringing high             The Company organized customized trainings at various
   product and process technology and quality                     levels. The top managers had programmes in strategy and
   manufacturing to its suppliers, facilitating some 114          leadership. Sales managers were trained in quality tools like
   technology collaborations. The tier 1 suppliers have           root cause analysis, and their application in enhancing
   reached a self sustaining level, but there is significant      customer satisfaction. The workmen union members were
   scope for modernization of tier 2 suppliers which should       given awareness training on the market scenario, critical
   get the Company incremental benefits in both quality           drivers of growth and profitability, competition plans and
   and cost. The programme of upgrading tier 2 vendors,           business risks. There were also programmes for Indian
   started in 2008-09, will gain further momentum in              middle managers and Suzuki advisors on shared
   2009-10.                                                       leadership, team synergy and cultural awareness to build
? Global
l         procurement of high technology components,              further on this synergy. Similarly, employees handling
   not available in India.                                        specific responsibilities are trained in self assessment in
                                                                  internal controls to broad base and institutionalize the
HUMAN RESOURCES                                                   internal control function.

The Company introduced the Managing Executive Officer             Innovation is encouraged through a Suggestion Scheme,
(MEO) system in December, 2007 on the philosophy of               wherein each employee has both targets and incentives for
“Shared leadership”. The concept organized the Company in         contributing suggestions. The number of implemented
five key verticals, each headed jointly by two MEOs, one of       suggestions rose to an all time high of 132,804 generating a
whom is also a Board member. The Company has observed a           saving of Rs 707 million in the company.
substantial and visible benefit in terms of decision speed,
execution agility, business performance and ownership. The        A number of sports tournaments and family meets were
concept is being taken deeper and wider in the organization       organized for family members of workmen and supervisors
through a series of initiatives.                                  to have a continuous personal connect with all sections of
                                                                  people. Industrial relations were highly cordial and one of
The Company is now doing systematic succession planning,          mutual understanding, appreciation and respect. The
at middle management and has also completed an                    Company is sensitizing the HR managers of its vendors in
exhaustive project on Role Clarity across all levels and all      industrial relations best practices to promote these vendors'
functions. This envisages clearly defining and classifying        well-being and sustainable growth.
roles and their requirements of competencies, level,
experience and qualification. This is expected to enhance         FINANCIAL PERFORMANCE
speed, flexibility and management effectiveness across the
                                                                  The year 2008-09 witnessed a multiplicity of challenges,
organization.
                                                                  coming together at the same time. In most economic cycles,
The Company is on course to increase its R&D strength, and        commodity prices generally move in tandem with the
recruitment was undertaken as planned. The Company's




                                                  Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                       73
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Compiled by : Religare Technova Global Solutions Limited
                                                                                            Compiled by : Religare Technova Global Solutions Limited




MANAGEMENT DISCUSSION AND ANALYSIS (CONTD.)




Internal Controls and Adequacy                                                    OUTLOOK
The Company has a proper and adequate system of internal                          The Company registered its highest ever domestic and
control to ensure that all assets are safeguarded and                             export sales, with a slight increment over the previous year.
protected against loss from unauthorized use or disposition,                      The year 2008-09 was marked by pressure on both volumes
and that all transactions are authorized, recorded and                            and costs, and posed challenges to the Company's dealers
reported correctly. The internal control system is designed                       and vendors as well. Though there was an impact on profit
to ensure that financial and other records are reliable for                       margins, this impact was relatively less than that on other
preparing financial information and other data, and for                           players.
maintaining accountability of assets. A CEO/CFO certificate
on effectiveness of key internal controls over financial                          Amidst such a severe market downturn, the Company was
reporting is required under Clause 49 of the listing                              able to take substantial steps for the long term: It has
agreement. The Company has institutionalized a self                               expanded its capacity to a million cars, put up a new-
assessment process for this purpose which is executed                             generation engine plant, launched the A-star and is on
through an online web-based tool. The internal control                            course to build R&D capability. The Company has a big but
system is supplemented by an extensive program of internal                        young product portfolio with eight models launched in less
audits, reviews by management, the Audit Committee and                            than forty months. It has a big and profitable sales and
the Board, and documented policies, guidelines and                                service network which serves the customer through the
procedures.                                                                       entire life cycle of car ownership. The Company also enjoys
                                                                                  good brand equity among car buyers, going by the
RISK FACTORS                                                                      percentage of loyal customers and the customer satisfaction
                                                                                  ratings. In terms of financial strength, coping comfortably
The Company operates in an environment which is affected
                                                                                  with its capital investment programme, the Company's
by various factors some of which are controllable while some
                                                                                  liquid surplus continues to be healthy with some safety
are outside the control of the company. The activity of risk
                                                                                  margin for the future. These factors are an investment for the
management in the company is reviewed by the Audit
                                                                                  future in both tangible and intangible ways.
Committee through a management sub committee, namely
the Executive Risk Management Committee (ERMC). The                               Though governments around the world are quite sensitive
ERMC consists of Managing Director & CEO and all Managing                         to and proactive in making efforts to revive consumption
Executive Officers of the Company. It reviews the risk                            and the financial health of its businesses and households,
management activities on a regular basis in addition to                           the time of revival is anybody's guess. Most experts however,
scanning for any new risks that may arise due to changes in                       agree that India may be able to stage a recovery faster
the business environment. While the possibility of a negative                     relative to the rest of the world.
impact due to one or more such risks cannot be totally
precluded the Company proactively takes reasonable steps
and makes efforts to mitigate significant risks that may affect
it. Some of the risks that are potentially significant in nature
and need careful monitoring are listed hereunder:
Plate 6: Key Risk Factors


                     Macro Economic              Competition Product
                         Factors                     Launches




      Geographic                         RISK                Talent Acquisition
     concentration                     FACTORS                  & Retention




                     High dependence             Continuance and
                       on suppliers              Growth of channel
                                                     partners




76     MARUTI SUZUKI INDIA LIMITED                 Annual Report 2008 - 09
                                                                    Compiled by : Religare Technova Global Solutions Limited




Apart from the uncertainty on overall market size,                     Company will have to keep raising the bar avoiding
competition is expected to intensify as more manufacturers             complacence and flamboyance and keep rediscovering
will launch more products and try to capture some share of a           itself in the light of the consumer of tomorrow.
growing market. With import barriers on auto components
virtually non-existent, there is no restriction for any
technology to come to India.
                                                                          DISCLAIMER
For the short term, the Company believes that the challenge               Statements in this management discussion
of uncertainty has to be met with flexibility and agility. It has         and analysis describing the Company's
to be careful, to have thin inventories in a low demand                   objectives, projections, estimates and
scenario and also agility not to miss any growth opportunity              expectations are categorized as 'forward
in the market. It calls for an extra set of competencies-speed,           looking statements' within the meaning of
flexibility and above all openness to change. The basics of               applicable laws and regulations.
the business productivity, cost, quality and customer
service have to be of course right, as these factors will weigh           Actual results may differ substantially or
ever more in the consumer's mind while making a choice in                 materially from those expressed or implied.
uncertain times. The Company is also consciously studying
its relationship with its stakeholders to promote their well              Important developments that could affect the
being and growth.                                                         Company's operations include a downward
                                                                          trend in the domestic auto- industry, rise in
For the medium to long term, the Company's product
                                                                          input costs, exchange rate fluctuations, and
portfolio and R&D capability, investment in new powertrain
                                                                          significant changes in the political and
technologies, its network penetration and further
                                                                          economic environment in India,
expansion, its focus on cost and productivity and
                                                                          environmental standards, tax laws, litigation
strengthening its back end through vendor upgradation are
                                                                          and labour relations.
all efforts to ensure sustained customer delight. The
                                                                              Compiled by : Religare Technova Global Solutions Limited




SUSTAINABILITY




Sustainability @ MSIL                                              have empowered employees while also securing their
                                                                   contribution in the growth of the organisation.
We had promised you last year that we would evolve a
comprehensive 'Sustainability Policy' during the year to           As the Company grew in size and stature, its stakeholders
measure our engagement with all our stakeholders.                  also thrived. In the last couple of years, the management felt
                                                                   that looking after stakeholders such as suppliers, customers,
We are pleased to share with you that we shall soon share the
                                                                   employees etc has become part of the company's business
information of the economic, environmental and social              philosophy. Therefore, the management took a conscious
impact of our business via the company's first Sustainability      decision to step up sustainability efforts of the company to a
Report prepared as per GRI guidelines.                             next level by deepening the engagement with various
                                                                   stakeholders.
The genesis
The foundation of the Company rests on sound sustainable           The management has set up an independent team at the
practices.                                                         corporate level to drive sustainability in the organization.
                                                                   The objective is to build capability of employees within the
The Company was born as a Joint Venture (JV) between               company to network with national and international
Government of India and Suzuki Motor Corporation 26 years          agencies, learn latest practices in sustainability, develop
ago through an Act of Parliament. The JV, while entrusted          capability to implement those practices within the company
with manufacturing a fuel efficient, high quality and              and exchange company's best practices with other
environment friendly small car, was also assigned the role of      organizations.
developing a modern Indian manufacturing industry
through a strong base of suppliers and a network of                The sustainable business philosophy of the company has
workshops for post sale service.                                   now been properly documented in the form of a CSR policy
                                                                   and guidelines to ensure that the direction and priorities of
The Company has followed a partnership approach with its           the company are clearly understood by all employees and
various stakeholders. It has carefully balanced profitability      partners.
with value creation and satisfaction for stakeholders. The
                                                                   The parent company, Suzuki Motor Corporation, has deep
Company established robust systems for good governance,
                                                                   commitment to sustainable practices through manufacture
transparency and disclosures.
                                                                   of small and highly fuel efficient cars and use of environemt
The Company set up the largest sales and service network           friendly material. This approach of the parent has helped
across the country. The car servicing facilities introduced by     strengthen sustainable efforts in the Company.
the Company have become a benchmark for the automobile
                                                                   The Company firmly believes that if it fulfills the needs of its
industry. It established robust channels for engagement
                                                                   stakeholders, they will identify their prosperity and well
with dealers and customers for constant flow of feedback.
                                                                   being with the growth of the company and support the
Their feedback is given utmost consideration while                 company in ensuring its long term and sustained growth.
upgrading products and services of the company.
                                                                   Adopting corporate social responsibility policy
While the Company's operations in Haryana gave
employment opportunities to a large number of skilled and          “While working to enhance shareholder wealth, Maruti
semi-skilled people from local communities, the Company's          Suzuki will regularly engage with all stakeholders to
associates in upstream and downstream value chain spread           assess their needs and through its products, services,
across the country provided manifold employment                    conduct and management initiatives, promote their
opportunities for people.                                          sustained growth and well-being”

Over the years, the Company has kept all its employees in          CSR Policy Guidelines are available on the company's
high esteem by introducing Japanese system of common               website www.marutisuzuki.com
offices, uniform and canteen facilities at its manufacturing       The management is now focusing on specific social projects
facilities and offices. All employees across levels are entitled   that may not be directly linked to its business but can benefit
to medical facilities in the same reputed hospitals. The           from the technical expertise and management capabilities
Company's Suggestion Scheme, Quality Circles and Kaizen            of the Company. The two key areas identified for


78    MARUTI SUZUKI INDIA LIMITED        Annual Report 2008 - 09
                                                              Compiled by : Religare Technova Global Solutions Limited




   First press advertisement issued by the Company, in 1982




intervention are Road Safety and upgradation of Industrial       The Company complies with all SEBI and stock exchange
Training Institutes (ITI). The Company has set up dedicated      guidelines of good corporate governance. This year, the
teams to work in these areas.                                    Company introduced “Whistle Blower Policy” to further
                                                                 strengthen its Corporate Governance framework. In
The management has taken a conscious decision to                 addition, the Company has a robust system of internal and
implement structured and mutually designed programs in           external audit of its accounts and financial transactions for
partnership with local communities, rather than undertake        ensuring transparency to protect shareholders' interest.
piecemeal social projects. The Company has appointed
dedicated resources for community programs. These                A dedicated Investor Relations team provides information
programs are being implemented with the help of                  on company's sales and financial performance to investors
community, NGOs and local government machinery.                  and addresses their queries. Regular engagement with
                                                                 investors helps the company understand their expectations
The Company is establishing mechanism within the                 and business perspectives, and incorporate them in
company for monitoring and reporting its sustainability          finalizing targets and strategies.
practices and social projects. The management has decided
to report the company's sustainability practices and             The Company has put in place a robust Risk Management
performance as per international guidelines through a            framework, which is coordinated by a Chief Risk Officer
Sustainability Report.                                           (CRO) through the Executive Risk Management Committee
                                                                 (ERMC) comprising all executive directors and led by the


                                                 Annual Report 2008 - 09   MARUTI SUZUKI INDIA LIMITED                     79
                                                                           Compiled by : Religare Technova Global Solutions Limited




SUSTAINABILITY (CONTD.)




Managing Director. A library of risks has been identified that   annualized saving of over Rs.700 Million. The employees are
can impact the company and its stakeholders. The progress        duly recognized and rewarded financially for their
on all mitigation plans are periodically monitored by ERMC.      contribution.

Economic sustainability                                          Despite slowdown, the Company kept focus on its long term
The complex nature of automobile industry places                 plans. The expansion of sales and service network and
responsibility on Original Equipment Manufacturers (OEMs)        manpower recruitment continued as per plan. The
like Maruti Suzuki. The sustainability of a number of            Company expanded its reach to rural markets by adding
enterprises in the value chain depends to a larger extent on     sales outlets in rural areas and appointing more rural
the OEM's sustainability.                                        resident dealer sales executives, thus creating employment
                                                                 opportunities for rural youth.
The unprecedented market slow down in FY '08-09 coupled
with increase in input cost put considerable pressure on the     The management is committed to the identified social
Company's profitability. At the same time, some of its           causes. Even during a slowdown year like FY '08-09, the
suppliers went into a short term financial crisis. To ensure     management devoted time and resources to start a national
sustainability of their operations, the company supported a      road safety program to promote consciousness for safe
few vendors with short term financial loans while imparting      driving in the country. While during economic slowdown,
them guidance on financial management.                           the general tendency is to cut down on CSR expenses,
                                                                 the company enhanced CSR spend to Rs. 76.7 Millions in
Low consumer sentiment impacted car sales in the middle of       FY '08-09 from Rs.73 Millions in FY '07-08.
FY '08-09 and high interest rates made inventory funding
expensive for dealers. To avoid any undue financial pressure     Environmental sustainability
on its dealers, the Company strictly controlled network          Environment is a silent stakeholder and the Company is
vehicle inventories even if it required closing of its           highly conscious of its responsibility towards environment
manufacturing plants for some days.                              protection. The Company has put in place Environment
                                                                 Management System (EMS) at all its facilities and has a
During a market slowdown, sustainable practices become all       defined Environment Policy.
the more important. The Company launched “One
Component, One Gram Weight Reduction” programme to               MSIL is the first ISO 14001 certified automobile company
improve component designs with an objective to reduce            in India. In 1999, the Gurgaon Plant was certified to ISO
raw material usage.                                              14001 by AIB-Vincotte International Ltd, Brussels, Belgium.
                                                                 Last year its newly constructed Manesar Plant and K-series
The Suggestion Scheme of the Company continues to                engine plant were also certified to ISO 14001.
motivate employees for creativity and innovation.
Collectively, the employees of the company implemented           In FY '08-09, no non-conformity was observed in ISO 14001
over one lac (100,000) suggestions giving the company an         surveillance audit. The Company met all regulatory
                                                                 Compiled by : Religare Technova Global Solutions Limited




compliance requirements during the year. The Company                The Company has constructed Rain Water Harvesting
assists its suppliers in implementing EMS and in ISO 14001          structures within the factory premises to collect rain water
certification.                                                      and recharge back into the aquifer below ground level. Total
                                                                    recharge rain water handling storage and recharging
The K-series engines introduced in 2008-09 are the most fuel        capacity is 20,000 cubic meters.
efficient and environment friendly engines. The Ritz, a new
car with a K-series engine launched recently by the                 The steam generated from exhaust gases of gas turbine is
Company, is the first car in India that meets Bharat Stage - 4      used as a prime mover for compressor to reduce electricity
emission requirements, ahead of the deadline of 1st April,          consumption. This steam is then further supplied for process
2010 set by Government to meet Bharat Stage - 4 norms.              requirement during car manufacturing.

The Company promotes 3 R (Reduce, Reuse and Recycle) in             The wastes are collected as per the waste category
its manufacturing facilities, supply chain and logistic             classification in the generation area. The recyclable wastes
operations. MSIL has initiated projects toward waste                are sold to recyclers, the burnable waste are incinerated in
minimization and utilization.                                       the industrial waste incinerator and the hazardous waste
                                                                    paint sludge is incinerated and other hazardous waste are
A multi axes painting robot at paint shops has improved             stored in the secured landfill pits.
paint transfer efficiency and thereby reduced paint
consumption and paint sludge generation.                            The Company celebrates Environment Month in June every
                                                                    year to promote awareness about environment protection
Sheet metal press stampings coming out of the press shop            among its employees, suppliers and local communities.
are reused at the company's sheet metal component                   Various activities are organized such as tree plantation,
suppliers that make smaller parts for use in car                    nukkar nataks (Street Shows) for community people, training
manufacturing. The protection caps of sensitive                     programs for employees and suppliers. In FY '08-09, the
components and supply bins are collected and are sent back          company planted over 1000 trees in Manesar plant and in
to the suppliers for reuse.                                         the nearby villages.
The Company has introduced Production Management
                                                                    Children's park
System to identify wastages in the manufacturing process
and to minimize them. A similar system is being replicated at       The Company manages Children's Park near India Gate, New
service workshops across the country.                               Delhi. This Children's Park spread over 10 acres area has been
                                                                    developed to give clean, green and safe playgrounds where
The Company has its own captive power plants to meet its            children can have fun together even as they learn and grow.
power requirements and of its joint venture companies               The construction of play area and play equipments have
located in its vicinity. The major fuel used for power              been undertaken to give children a fulfilling experience.
generation is natural gas. The Manesar plant is currently
being run on diesel power but natural gas supply is expected        Social sustainability
to be extended by Gas Authority of India Limited (GAIL) to          The company made conscious efforts to engage with the
Manesar by end FY '09-10.                                           society to understand their changing aspirations. That set
                                                                    the task of engineers at Maruti Suzuki and they made
MSIL is a zero waste water discharge company. Canal water is
                                                                    'Customer Delight' their passion. The company met the
the main source of fresh water. All the waste water
                                                                    aspirations of Indian consumers with its latest technology,
generated is recycled and reused.
                                                                    high quality and value added products at affordable prices.



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SUSTAINABILITY (CONTD.)




The people of the country recognized the efforts of the          Human resource
company by buying its products and spreading a good word         The Company has an effective employee engagement
of mouth about its products and services.                        process. The inputs received through this process are
                                                                 considered while formulating HR policies. The Company
National Road Safety Mission                                     enjoys a good image among prospective employees and has
As a mark of gratitude to the people of the country, on the      ongoing engagement with premium professional institutes.
occasion of completing twenty five years of successful           Thus, the company is able to attract and retain talented
operations, the Company launched a National Road Safety          people.
Mission to promote a culture of safe and accident free
driving on Indian roads.                                         The Company prepares annual training calendar to cater to
                                                                 the developmental needs of its employees. Besides, job
Under this mission, the Company will expand its driving          specific training, training program also covers topics such as
training infrastructure across the country, spread awareness     leadership development, work life balance, safety,
about safe driving and engage with government, NGOs and          environment etc. Engineers are also sent to Suzuki Motor
other interested parties to promote road safety.                 Corporation, Japan for technical training.
Also, the company will train 500,000 people in safe driving in   The Company is providing recreational opportunities to
the next three years. Of these 500,000 people, 100,000 will be   employees like Yoga classes, sports tournaments etc.
from underprivileged section of society, who are keen to         Employee families are invited for factory visits. Apart from a
take driving as a profession. The Company will bear the          visit to the factory, they get an opportunity to interact with
training cost of these 100,000 people.                           top management of the company.
The Company is currently managing two Institutes of              In FY '08-09 a unique Employee Volunteering Program, 'e-
Driving Training and Research (IDTR) in Delhi in partnership     Parivartan' was launched so that employees can
with Delhi Government. Four IDTRs are in the implementa-         meaningfully associate themselves with some social cause.
tion stage: one each in Gujarat and Uttarakhand and two in       Employees are given a host of social options to choose from
Haryana. The Company has set up 50 Maruti Driving Schools        and they can visit any of the eleven volunteering centers
(MDS) across India in collaboration with dealers and will add    identified for them in NCR region as per their convenience.
100 more MDS in FY '09-10.
                                                               Compiled by : Religare Technova Global Solutions Limited




The families of the employees also participate in                 toilets, pavements and erecting drinking water supply
volunteering activity.                                            system. This year the Company has planned to upgrade
                                                                  infrastructure of school in another village. The upgradation
The Company engages with its suppliers periodically to            work is undertaken as per the specific needs of that school.
discuss IR related issues and it makes conscious efforts to
maintain cordial and peaceful industrial relationships in         School students are given exposure to the company's
Gurgaon and Manesar industrial areas.                             manufacturing facilities by organizing plant visits. Career
                                                                  guidance is part of the factory visit program. From time to
The Company keeps its labour representatives informed of          time, the company organizes events in schools for their
the business environment and engages with them on a               development such as painting competitions, plays on social
continuous basis. As a result, the industrial relations           issues, health and nutrition workshops etc.
remained peaceful in the company during the year.
                                                                  Besides, the Company is running two schools in Gurgaon
Local community                                                   area in collaboration with DPS society. These schools cater
The Company considers local community its important               to the educational needs of the children of MSIL employees
stakeholder. The CSR team along with the NGO partner              and the people living in the local communities of Gurgaon.
works with the community, identify their needs and do social
projects accordingly. These community initiatives have            Vocational training
helped in developing a cohesive relationship between the          The government has identified upgradation of ITIs in the
community and the company.                                        country to meet the future requirement of skilled manpower
                                                                  as per industry requirements. In order to support this
The Company has adopted four villages around Manesar              initiative, the Company has adopted four ITIs in Haryana in
manufacturing facility for overall development of these           association with two of its suppliers in Public Private
villages and for the well being of people living in these         Partnership mode to develop them as Centers of Excellence.
villages.
                                                                  The Company set up a separate team headed by an
Based on the need analysis, four areas of intervention are        experienced technical expert to make these ITIs best
chosen. These are Health Care, Education, Employability and       institutions for vocational training in the country.
Infrastructure. Free health camps are organized regularly in
these villages. These health camps cover women, children          The Company gave external exposure to the ITI staff by
and elderly people. Free vision glasses are given to people       taking them to the benchmark technical training institutes
with weak eyesight. More emphasis is given to health              to its own manufacturing facilities. The Company is regularly
awareness through expert lectures and Nukkar Nataks               imparting training to ITI staff on topics such as behavioral
(Street Plays).                                                   and attitudinal aspects.

Unemployed educated youth are identified from these               The Company facilitated maintenance and upgradation of
villages and given vocational training at ITI Gurgaon (Being      training equipments, class room facilities and workshop
upgraded by Maruti Suzuki) and Maruti Driving School,             infrastructure. The Company introduced training on safety,
Gurgaon. The Company also facilitates their employment.           cleanliness, computer education and English language.

The Company has improved infrastructure of a Government
Senior Secondary School, Kasan last fiscal, by constructing




                                                  Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                       83
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SUSTAINABILITY (CONTD.)




The Company has also signed MoUs with seven ITIs in other          Every year, the Company observes Safety Month. All
states with an the objective of strengthening automobile           employees, starting from Managing Director take Safety
engineering discipline in these institutes and giving              Oath to work safely and promote safety at the work place.
exposure to students of the latest technological                   Safety awareness programs are organized for the
developments in the modern automobiles.                            employees, their families and school children.

The Company imparts training to the faculty, improves              The data related to accidents and injury is reported in the
training facilities at the institutes, updates course curriculum   Management Committee Meeting every week and
and provides students on-the-job training at its own               countermeasures to avoid recurrence of accidents are
workshops. The Company also offers placements to the               discussed and monitored.
suitable students in the Maruti service network. The
Company has plans to extend this program to more                   The Company organizes health awareness and
institutes in future.                                              immunization programs in association with reputed
                                                                   hospitals and Government Health Centers through out the
Occupational health and safety                                     years for its employees.
The Company has a robust framework to promote work
                                                                   Sustainability: a way of life for MSIL
place safety at its manufacturing facilities, offices and other
business operations.                                               The success of the company's sustainability efforts can be
                                                                   gauged from the fact that in 2008-09, despite adverse
The Company has constituted a structured Safety                    economic conditions, the company continued to implement
Leadership organization comprising of Central Safety               all its long term plans as scheduled: Launch of two global
Leadership Council (CSLC) and Business Vertical Safety             models A-star and Ritz, a new K series engine plant,
Leadership Committees (BVSLC). The key role of this safety         dedicated car export facility at Mundra Port, expansion of
organization is to focus on safety process improvements in         manufacturing capacity to 1 million cars per year, sales and
measurable terms. These committees meet quarterly to               service network expansion and recruitment of engineers.
recommend strategic guidelines and decisions towards               Amidst rising commodity prices and unfavourable foreign
continual improvement of Safety Performance.                       exchange movements, the company registered a growth of
                                                                   1.5% in domestic market and overall 3.6% including exports
Besides, there is a dedicated safety department in the             sales, increased market share from 45.9% to 46.5% and
company and a safety coordinator in each department. All           earned Profit After Tax (PAT) of Rs. 12.19 billion. In the last 25
new employees are given compulsory safety training at the          years, MSIL has retained its leadership position in passenger
time of joining. Regular training programs on work place           car market in India despite tough competition.
safety and mock drills happen all through the year.
                                                                          Compiled by : Religare Technova Global Solutions Limited




                                                                                                                              Quest Unlimited
AUDITORS' REPORT


TO THE MEMBERS OF MARUTI SUZUKI INDIA LIMITED
1. We have audited the attached Balance Sheet of Maruti Suzuki India Limited, as at 31st March, 2009, and the related Profit and Loss
   Account and Cash Flow Statement for the year ended on that date annexed thereto, which we have signed under reference to this report.
   These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these
   financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and
   perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
   includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
   assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial
   statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, as amended by the Companies (Auditor's Report) (Amendment) Order,
   2004, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of 'The Companies Act, 1956' of India (the
   'Act') and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the
   information and explanations given to us, we further report that:
   i)       (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed
                assets.
            (b) The fixed assets are physically verified by the management according to a phased programme designed to cover all the
                items, except furniture and fixtures, office appliances and certain other assets having an aggregate net book value of Rs. 367
                million, over a period of three years, which in our opinion, is reasonable having regard to the size of the Company and the
                nature of its assets. Pursuant to the programme, a portion of the fixed assets have been physically verified by the
                management during the year and no material discrepancies between the book records and the physical inventory have
                been noticed.
            (c) In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been
                disposed off by the Company during the year.
    ii)     (a) The inventory (excluding materials lying with vendors) has been physically verified by the management during the year. In
                respect of inventory lying with the vendors, these have substantially been confirmed by them. In our opinion, the frequency
                of verification is reasonable.
            (b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and
                adequate in relation to the size of the Company and the nature of its business.
            (c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of
                inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
   iii)    The Company has not taken or granted any loans, secured or unsecured, from / to companies, firms or other parties covered in
           the register maintained under Section 301 of the Act.
    iv)    In our opinion and according to the information and explanations given to us, having regard to the explanation that certain items
           purchased are of special nature for which suitable alternative sources do not exist for obtaining comparative quotations, there is
           an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase
           of inventory, fixed assets and for the sale of goods and services. Further, on the basis of our examination of the books and records
           of the Company, and according to the information and explanations given to us, we have neither come across nor have been
           informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.
   v)       (a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements
                 referred to in Section 301 of the Act have been entered in the register required to be maintained under that section.
            (b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance
                of such contracts or arrangements and exceeding the value of Rupees Five Lakhs in respect of any party during the year,
                which have been made at prices which are not reasonable having regard to the prevailing market prices at the relevant time.
                In respect of purchase of goods and materials including components from the holding company, the prices paid for these
                items are not comparable as these are of special nature.
   vi)     The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA or any other relevant
           provisions of the Act and the rules framed there under.
    vii)    In our opinion, the Company has an internal audit system commensurate with its size and nature of its business.




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AUDITORS' REPORT


     viii)      We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the Rules
               made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of sub-section
               (1) of Section 209 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and
               maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are
               accurate or complete.
     ix)       (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion,
                   the Company is regular in depositing undisputed statutory dues in respect of provident fund, investor education and
                   protection fund, employees' state insurance, income tax, sales-tax, wealth tax, service tax, customs duty, excise duty, cess and
                   other material statutory dues as applicable with the appropriate authorities.
               (b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of
                   dues of income-tax, sales-tax, wealth tax, service tax, customs duty, excise duty and cess as at March 31, 2009 which have not
                   been deposited on account of any dispute are as follows:
                                                                                                                                       (Rs. in Million)
                   Name of the statute                     Amount           Amount       Period to                 Forum where the dispute
                   (Nature of Dues)                                        deposited     which the                 is pending
                                                                         under protest amount relates

                   Income Tax Act, 1961                     5,271           3,799          1992 to 2006            Income Tax Appellate
                   (Tax & Interest)                                                                                Tribunal/ High Court/
                                                                                                                   Commissioner Income
                                                                                                                   Tax (Appeals)
                   Wealth Tax Act, 1957 (Tax)                  1              1            1998 to 1999            High Court
                   Haryana General Sales                       3               -           1984 to 1989            Assessing Authority
                   Tax Act (Tax & Interest)
                   Delhi Sales Tax Act (Tax)                  47              2            1988 to 1992            Additional Commissioner
                   The Central Excise                       1,774             51          April 1986 to            Customs Excise & Service
                   Act, 1944 (Duty, Interest                                              January 2008             Tax Appellate Tribunal/
                   & Penalty)                                                                                      High Court/ Supreme Court/
                                                                                                                   Commissioner Appeals
                   The Finance Act, 1994                     370               -           July 1997 to            Customs Excise & Service
                   (Service Tax, Interest &                                              September 2004            Tax Appellate Tribunal
                   Penalty)
                   Customs Act, 1962                          27              22        February 2003 to           Customs Excise & Service
                   (Duty & Interest)                                                      August 2003              Tax Appellate Tribunal

                   For detailed listing refer Note 30 on Schedule 23

     x)        The Company has no accumulated losses as at March 31, 2009 and it has not incurred any cash losses in the financial year ended
               on that date or in the immediately preceding financial year.
     xi)       According to the records of the Company examined by us and the information and explanations given to us, the Company has
               not defaulted in repayment of dues to any bank or debenture holders as at the balance sheet date.
     xii)      The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other
               securities.
     xiii)     The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund/societies are not applicable to the
               Company.
     xiv)      In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments.
     xv)       In our opinion and according to the information and explanations given to us, the terms and conditions of the guarantees given
               by the Company, for loans taken by others from banks or financial institutions during the year, are not prejudicial to the interest of
               the Company.
     xvi)      In our opinion, and according to the information and explanations given to us, on an overall basis, the term loans have been
               applied for the purposes for which they were obtained.



86         MARUTI SUZUKI INDIA LIMITED         Annual Report 2008 - 09
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                                                                                                                                 Quest Unlimited
AUDITORS' REPORT


    xvii)    On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and
             explanations given to us, there are no funds raised on a short-term basis which have been used for long-term investment.
    xviii)   The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained
             under Section 301 of the Act during the year.
    xix)     The Company has no outstanding debentures as at the year end.
    xx)      The Company has not raised any money by public issue during the year.
    xxi)     During the course of our examination of the books and records of the Company, carried out in accordance with the generally
             accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across
             any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the
             management.
4. Further to our comments in paragraph 3 above, we report that:
    (a)      We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the
             purposes of our audit;
    (b)      In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our
             examination of those books;
    (c)      The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of
             account;
    (d)      In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report have been prepared
             in compliance with the applicable accounting standards referred to in sub-section(3C) of Section 211 of the Act and Accounting
             Standard 30, Financial Instruments: Recognition and Measurement issued by the Institute of Chartered Accountants of India to
             the extent it does not contradict any other accounting standard referred to in sub-section (3C) of Section 211 of the Act;
    (e)      On the basis of written representations received from the directors as on March 31st 2009 and taken on record by the Board of
             Directors, none of the directors is disqualified as on 31st March 2009 from being appointed as a director in terms of clause (g) of
             sub-section (1) of Section 274 of the Act;
    (f)      In our opinion and to the best of our information and according to the explanations given to us, the said financial statements
             together with the notes thereon and attached thereto give in the prescribed manner the information required by the Act and
             give a true and fair view in conformity with the accounting principles generally accepted in India:
             (i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2009;
             (ii) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and
             (iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.


                                                                                                                   Anupam Dhawan
                                                                                                                   Membership Number- F084451
                                                                                                                   Partner
                                                                                                                   For and on behalf of
Place: New Delhi                                                                                                   Price Waterhouse
Date: April 24, 2009                                                                                               Chartered Accountants




                                                              Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                               87
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BALANCE SHEET
AS AT MARCH 31, 2009

                                                                                                                        (Rs. in Million)

                                                                                                       As at                    As at
                                                                  Schedule                         31.03.09                 31.03.08

SOURCES OF FUNDS
SHAREHOLDERS' FUNDS
Capital                                                              1                  1,445                     1,445
Reserves and Surplus                                                 2                 92,004        93,449      82,709        84,154
LOAN FUNDS
Secured Loans                                                        3                       1                          1
Unsecured Loans                                                      4                  6,988         6,989       9,001          9,002
DEFERRED TAX (Note 19 on Schedule 23)
Deferred Tax Liabilities                                                                2,340                     2,697
Deferred Tax Assets                                                                      (789)        1,551       (996)          1,701
Total                                                                                               101,989                    94,857
APPLICATION OF FUNDS
FIXED ASSETS                                                         5
Gross Block                                                                            87,206                    72,853
Less: Depreciation                                                                   (46,498)                  (39,888)
                                                                                       40,708                    32,965
Capital Work-In-Progress                                             6                  8,613        49,321       7,363        40,328
INVESTMENTS                                                          7                               31,733                    51,807
CURRENT ASSETS, LOANS AND ADVANCES
Inventories                                                          8                  9,023                    10,380
Sundry Debtors                                                       9                  9,189                     6,555
Cash and Bank Balances                                              10                 19,390                     3,305
Other Current Assets                                                11                    981                         331
Loans and Advances                                                  12                 16,328                    10,408
                                                                                       54,911                    30,979
LESS: CURRENT LIABILITIES AND PROVISIONS
Current Liabilities                                                 13                 30,169                    24,562
Provisions                                                          14                  3,807                     3,695
                                                                                       33,976                    28,257
Net Current Assets                                                                                   20,935                      2,722
Total                                                                                               101,989                    94,857
SIGNIFICANT ACCOUNTING POLICIES                                     22
NOTES TO ACCOUNTS                                                   23

This is the Balance Sheet referred to                                          The Schedules referred to above form an
in our report of even date.                                                    integral part of the Balance Sheet.


ANUPAM DHAWAN                                                            SHINZO NAKANISHI                  S. OISHI
Membership Number - F 084451                                             Managing Director & CEO           Director
Partner
For and on behalf of
PRICE WATERHOUSE                                                         AJAY SETH                         S. RAVI AIYAR
Chartered Accountants                                                    Chief Financial Officer           Company Secretary
New Delhi                                                                                                  & Chief Legal Officer
April 24, 2009


88      MARUTI SUZUKI INDIA LIMITED     Annual Report 2008 - 09
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                                                                                                                   Quest Unlimited
PROFIT & LOSS ACCOUNT
FOR THE YEAR ENDED MARCH 31, 2009

                                                                                                                       (Rs. in Million)
                                                                                             For the                        For the
                                                                                         year ended                     year ended
                                                              Schedule                     31.03.09                       31.03.08

INCOME
Gross Sales                                                      15                          230,852                        209,493
less: Excise Duty                                                                             27,269                         30,890
Net Sales                                                                                    203,583                        178,603
Income from Services [Net of expenses Rs 153 million                                             970                            759
(Previous year Rs 208 million)]
Other Income                                                     16                            9,985                          8,371
Total                                                                                        214,538                        187,733
EXPENDITURE
Consumption of Raw Materials and Components                                                  150,598                        130,342
(Note 4,14 and 17 on Schedule 23)
Purchase of Traded Goods                                                                           7,256                       7,771
Consumption of Stores                                                                              1,978                       1,470
"Employees Remuneration and Benefits
(Note 8 and 24 on Schedule 23)"                                  17                            4,711                          3,562
Manufacturing, Administrative and Other Expenses                 18                           15,685                         10,793
Selling and Distribution Expenses                                19                            7,382                          5,602
Total                                                                                        187,610                        159,540
Less: Vehicles/ Dies for Own Use                                                                 223                            198
Add : (Increase) /Decrease in Work-in-Progress and
Finished Goods and Spare Parts                                   21                            2,818                         (2,917)
Total                                                                                        190,205                        156,425
Earnings before Interest, Depreciation,
Tax and Amortizations (EBIDTA)                                                                24,333                          31,308
Interest                                                         20                              510                             596
Depreciation                                                     5                             7,065                           5,682
                                                                                               7,575                           6,278
Profit before Tax                                                                             16,758                          25,030
Less : Tax Expense - Current Tax                                                               4,592                           7,509
Deferred Tax (Note 19 on Schedule 23)                                                          (118)                              26
Fringe Benefit Tax                                                                                97                              98
Previous Years                                                                                     -                              89
Profit after Tax                                                                              12,187                          17,308
Add: Brought forward from previous year's account                                             70,257                          56,373
Profit available for appropriation                                                            82,444                          73,681
Less: Appropriation :
General Reserve                                                                                1,219                           1,731
Proposed Dividend                                                                              1,011                           1,445
Corporate Dividend Tax                                                                           172                             248
Balance carried forward to Balance Sheet                                                      80,042                          70,257
Basic/Diluted Earnings Per Share (in Rupees)
(Note 18 on Schedule 23)                                                                           42.18                       59.91
SIGNIFICANT ACCOUNTING POLICIES                                  22
NOTES TO ACCOUNTS                                                23

This is the Profit and Loss Account referred to                                The Schedules referred to above form an
in our report of even date.                                                    integral part of the Balance Sheet.


ANUPAM DHAWAN                                                            SHINZO NAKANISHI                  S. OISHI
Membership Number - F 084451                                             Managing Director & CEO           Director
Partner
For and on behalf of
PRICE WATERHOUSE                                                         AJAY SETH                         S. RAVI AIYAR
Chartered Accountants                                                    Chief Financial Officer           Company Secretary
New Delhi                                                                                                  & Chief Legal Officer
April 24, 2009



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CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH, 2009

                                                                                                      (Rs. in Million)
                                                                                       For the            For the
                                                                                   year ended         year ended
                                                                                   31.03.2009         31.03.2008

A. Cash flow from Operating Activities:
     Net Profit before Tax                                                             16,758                25,030
     Adjustments for:
     Depreciation                                                                       7,065                  5,682
     Interest Expense                                                                     510                    596
     Interest Income                                                                   (2,436)               (1,408)
     Dividend Income                                                                   (1,440)               (1,668)
     Net Loss on Sale / Discarding of Fixed Assets                                        125                     24
     Profit on Sale of Investments                                                     (2,137)                 (898)
     Provisions no longer required written back                                          (379)                 (855)
     Unrealised Foreign Exchange (Gain)/ Loss                                            (610)                   443
     Operating Profit before Working Capital changes                                   17,456                26,946


     Adjustments for changes in Working Capital :
     - (Increase)/Decrease in Sundry Debtors                                           (2,650)                   920
     - (Increase)/Decrease in Other Current Assets, Loans & Advances                   (6,161)               (1,191)
     - (Increase)/Decrease in Inventories                                               1,357                (3,366)
     - Increase/(Decrease) in Current Liabilities and Provisions                        6,455                  3,566
     Cash generated from Operating Activities                                          16,457                26,875
     - Taxes (Paid) (Net of Tax Deducted at Source)                                    (4,524)               (8,647)
     Net Cash from Operating Activities                                                11,933                18,228


B. Cash flow from Investing Activities:
     Purchase of Fixed Assets                                                         (16,207)             (16,858)
     Sale of Fixed Assets                                                                  71                     69
     Sale of Investments                                                              192,372               170,123
     Purchase of Investments                                                         (170,191)            (186,966)
     Interest Received                                                                  2,029                  1,490
     Dividend Received                                                                  1,440                  1,668
     Net Cash from Investing Activities                                                 9,514              (30,474)




90     MARUTI SUZUKI INDIA LIMITED          Annual Report 2008 - 09
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                                                                                                                      Quest Unlimited
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH, 2009

                                                                                                                           (Rs. in Million)
                                                                                               For the                         For the
                                                                                           year ended                      year ended
                                                                                           31.03.2009                      31.03.2008

C. Cash flow from Financing Activities:
    Proceeds from Short Term borrowings                                                            4,548                           3,999
    Repayment of Short Term borrowings                                                           (7,887)                           (634)
    Interest Paid                                                                                  (579)                           (743)
    Dividend Paid                                                                                (1,444)                         (1,299)
    Net Cash from Financing Activities                                                           (5,362)                           1,323


    Net Increase/(Decrease) in Cash & Cash Equivalents                                           16,085                         (10,923)


    Cash and Cash Equivalents as at 1st April (Opening Balance)                                    3,305                         14,228
    Cash and Cash Equivalents as at 31st March (Closing Balance)                                 19,390                            3,305


    Cash and Cash Equivalents comprise                                                           19,390                            3,305
    Cash & Cheques in Hand                                                                         2,124                           1,339
    Balance with Scheduled Banks in Current Accounts                                                 266                           1,966
    Balance with Scheduled Banks in Deposit Accounts                                             17,000                                  -

Notes :
1   The above Cash Flow Statement has been prepared under the indirect method as set out in Accounting Standard -3 on "Cash Flow
    Statement" notified Under Section 211 (3C) of the Companies Act, 1956.
2   Cash and Cash Equivalent includes Rs 4 Million (Previous Year Rs. 3 Million) in respect of unclaimed dividend, the balance of which
    is not available to the Company.
3   Figures in bracket represents cash outflow.




This is the Cash Flow Statement referred to
in our report of even date.


ANUPAM DHAWAN                                                                    SHINZO NAKANISHI               S. OISHI
Membership Number - F 084451                                                     Managing Director & CEO        Director
Partner
For and on behalf of
PRICE WATERHOUSE                                                                 AJAY SETH                      S. RAVI AIYAR
Chartered Accountants                                                            Chief Financial Officer        Company Secretary
New Delhi                                                                                                       & Chief Legal Officer
April 24, 2009




                                                         Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                            91
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SCHEDULE

                                                                                                                        (Rs. in Million)
                                                                                                           As at               As at
                                                                                                       31.03.09            31.03.08
SCHEDULE 1 - SHARE CAPITAL
Authorised Capital
744,000,000 Equity Shares of Rs. 5 each (Previous year                                                    3,720                  3,720
744,000,000 equity shares of Rs. 5 each)
ISSUED, SUBSCRIBED AND PAID UP CAPITAL                                                                    1,445                  1,445
288,910,060 Equity Shares of Rs. 5 each (Previous year 288,910,060 equity shares
of Rs. 5 each) fully paid up
Of the above -
8,840,000 Equity Shares of Rs. 5 each (Previous year 8,840,000 equity shares of Rs.
5 each) were issued for consideration other than cash.                                                                                    -
156,618,440 Equity Shares of Rs. 5 each (Previous year 156,618,440 equity shares
of Rs. 5 each) are held by Suzuki Motor Corporation, the Holding Company
and its nominees
                                                                                                          1,445                  1,445




                                                                    Balance as at          Additions     Transfer /    Balance as at
                                                                   1st April, 2008        during the   Adjustment       31st March
                                                                                                Year        during            2009
                                                                                                          the year

SCHEDULE 2 - RESERVES AND SURPLUS
Share Premium Account                                                       4,241                  -               -            4,241
Hedge Reserve Account (Note 27 on Schedule 23)                                  -            (1,709)               -          (1,709)
General Reserve                                                             8,211              1,219               -            9,430
Balance as per Profit and Loss Account                                     70,257              9,785               -          80,042
Total                                                                      82,709             9,295                -          92,004




                                                                                                           As at               As at
                                                                                                       31.03.09            31.03.08

SCHEDULE 3 - SECURED LOANS
LONG TERM LOANS
FROM OTHERS
Loan from Sundaram Finance Limited                                                                            -                      1
(Secured against vehicles taken on finance lease)
SHORT TERM LOANS
FROM OTHERS
Loan from Sundaram Finance Limited (Payable within 1 Year)                                                    1                       -
(Secured against vehicles taken on finance lease)
                                                                                                              1                      1




92      MARUTI SUZUKI INDIA LIMITED      Annual Report 2008 - 09
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                                                                                                                                           Quest Unlimited
SCHEDULE

                                                                                                                                                (Rs. in Million)
                                                                                                                    As at                                 As at
                                                                                                                31.03.09                              31.03.08

SCHEDULE 4 - UNSECURED LOANS
SHORT TERM LOANS - FROM BANKS
Export Credit                                                                                                         660                                 3,999
LONG TERM LOANS - FROM BANKS
Foreign Currency Loans *                                                                                            6,328                                 5,002
Loan from Japan Bank for International Cooperation and Bank of Tokyo Mitsubishi
*(Guaranteed by Suzuki Motor Corporation, Japan, the Holding Company)
{Payable within one year Rs. 1582 million (Previous Year Rs. Nil)}
                                                                                                                    6,988                                 9,001



SCHEDULE 5 - FIXED ASSETS
(Note 23 on Schedule 23)
Particulars                                        Gross Block                                       Depreciation                             Net Block
                                    As at    Additions Deductions/            As at         As at   For the   Deductions/         As at       As at        As at
                                01.04.08               Adjustments        31.03.09      01.04.08      year    Adjustments     31.03.09    31.03.09     01.04.08
Freehold land (Note 1 & 3)         1,274              -              -      1,274              -         -               -          -       1,274         1,274
Leasehold land                       570              -              -        570              4         1               -          5         565           566
Building                           5,452            895            (7)      6,340            972       174             (3)      1,143       5,197         4,480
Plant and Machinery (Note 2)      63,409         13,611          (440)     76,580         37,740     6,570           (360)     43,950      32,630        25,669
Electronic Data Processing         1,222            179           (57)      1,344            862       243            (57)      1,048         296           360
Equipment
Furniture , Fixtures and             412           155              (1)        566           173        29               -         202         364          239
Office Appliances
Vehicles:
  - Owned                            511           164            (146)       529           135         47            (35)        147         382           376
  - Leased                             3             -                -         3             2          1               -          3           -             1
Total                             72,853        15,004           (651)     87,206        39,888      7,065          (455)      46,498      40,708        32,965
Previous Year Figures             61,468        12,143            (758)    72,853        34,871      5,682           (665)     39,888      32,965

(1)   Land costing Rs. 4 million (Previous year Rs. 4 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 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.




                                                                                                                    As at                             As at
                                                                                                                31.03.09                          31.03.08

SCHEDULE 6 - CAPITAL WORK-IN-PROGRESS
Plant and Machinery                                                                                                 5,851                               3,653
Civil Work-in-progress                                                                                                832                                 576
Capital Advances                                                                                                    1,930                               3,134
                                                                                                                    8,613                               7,363




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SCHEDULE

                                                                                                (Rs. in Million)
                                                                                    As at                 As at
                                                                                31.03.09              31.03.08
SCHEDULE 7 - INVESTMENTS
(Note 28 on Schedule 23)
Trade Investments :
    Long Term:
        Quoted Equity Shares (Fully Paid)                                            111                   111
        Unquoted Equity Shares (Fully Paid)                                        3,706                 3,037
    Investment in Subsidiary Companies
        Unquoted Equity Shares (Fully Paid)                                            9                      3
Other Investments:
    Long Term (Unquoted):
        Mutual Funds                                                              18,635                37,710
    Current (Unquoted):
        Mutual Funds                                                               9,272                10,946
                                                                                  31,733                51,807
Aggregate Value of Unquoted Investments                                           31,622                51,696
Aggregate Value of Quoted Investments                                                111                   111
Market Value of Quoted Investments                                                 1,087                 2,195




SCHEDULE 8 - INVENTORIES
Components and Raw Materials
In Transit                                                              2,075                 1,053
With vendors                                                              160                  120
At Factory                                                              3,292      5,527      2,204       3,377
Stores and Spares
Vehicles                                                                1,044                  877
Machinery                                                                  31                   20
Consumables                                                                85                   67
In Transit                                                                 34      1,194        25         989
Tools at Factory                                                                     152                   147
Work-in-Progress                                                                     489                   459
Finished Goods                                                                     1,661                  5,408
                                                                                   9,023                 10,380




94     MARUTI SUZUKI INDIA LIMITED     Annual Report 2008 - 09
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                                                                                                           Quest Unlimited
SCHEDULE

                                                                                                               (Rs. in Million)
                                                                                         As at                        As at
                                                                                     31.03.09                     31.03.08

SCHEDULE 9 - SUNDRY DEBTORS
(Note 21 on Schedule 23)
Debts outstanding for more than six months
Unsecured - Considered Good                                                    939                   1,128
            - Considered Doubtful                                              266                       266
                                                                             1,205                   1,394
Less: Provision for Doubtful Debts                                             266        939            266            1,128
Other Debts :
Unsecured - Considered Good                                                             8,250                           5,427
                                                                                        9,189                           6,555




SCHEDULE 10 - CASH AND BANK BALANCES
Cash in hand                                                                                2                                4
Cheques in hand                                                                         2,122                           1,335
Bank balances with Scheduled Banks in:
Current Accounts                                                                          262                           1,963
Dividend Accounts                                                                           4                                3
Deposit Accounts                                                                       17,000                                -
                                                                                       19,390                           3,305




SCHEDULE 11 - OTHER CURRENT ASSETS
Interest accrued on Deposits, Loans and Advances
Secured      - Considered Good                                                  37                        40
             - Considered Doubtful                                               6                         6
                                                                                43                        46
Less: Provision for Doubtful Interest                                            6         37              6                40
Unsecured - Considered Good                                                    528                       119
             - Considered Doubtful                                               1                         1
                                                                               529                       120
Less: Provision for Doubtful Interest                                            1        528              1               119
Claims       - Unsecured
             - Considered Good                                                 416                       172
             - Considered Doubtful                                              31                        43
                                                                               447                       215
Less: Provision for Doubtful Claims                                             31        416             43               172
                                                                                          981                              331




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SCHEDULE

                                                                                                            (Rs. in Million)
                                                                                            As at                  As at
                                                                                        31.03.09               31.03.08

SCHEDULE 12 - LOANS AND ADVANCES
(Notes 21 & 22 on Schedule 23)
Loans
Secured     - Considered Good                                                      36                  45
            - Considered Doubtful                                                   8                   9
                                                                                   44                  54
Less: Provision for Doubtful Loans                                                  8         36        9               45
Unsecured - Considered Good                                                     3,988               1,594
             - Considered Doubtful                                                  1                   1
                                                                                3,989               1,595
Less: Provision for Doubtful Loans                                                  1      3,988        1            1,594
Advances recoverable in cash or in kind or for value to be received:
Unsecured - Considered Good                                                     6,563               2,816
             - Considered Doubtful                                                110                  72
                                                                                6,673               2,888
Less: Provision for Doubtful Advances                                             110      6,563       72            2,816
Deposits - Considered good unless otherwise stated
Balance with Customs, Port Trust and Other
Government Authorities                                                                     5,665                     5,896
Inter Corporate Deposits Considered Doubtful                                     140                 140
Less :Provision for Doubtful Deposits                                            140           -     140                -
Other Deposits                                                                                76                       57
                                                                                          16,328                   10,408




SCHEDULE 13 - CURRENT LIABILITIES
Sundry Creditors (Note 20 on Schedule 23)
Due to Micro and Small enterprises                                                            80                      234
Others                                                                                    25,616                   16,728
Advances from Customers/Dealers                                                            1,503                      737
Book Overdraft                                                                               549                    3,590
Unclaimed Dividend *                                                                           4                        3
Other Liabilities                                                                            784                    1,747
Deposits from Dealers, Contractors and Others                                              1,606                    1,427
Interest Accrued but Not Due on:
    Loans                                                                         24                   93
    Others                                                                         3          27        3              96
                                                                                          30,169                   24,562
*Not due to be credited to the Investor Education and Protection Fund




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                                                                                                                       (Rs. in Million)
                                                                                                  As at                       As at
                                                                                              31.03.09                    31.03.08

SCHEDULE 14 - PROVISIONS
(Note 24 and 26 on Schedule 23)
Litigation Related Provisions                                                                      611                            596
Leave Encashment                                                                                   550                            457
Warranty & Product Recall                                                                          432                            253
Proposed Dividend                                                                                1,011                          1,445
Corporate Dividend Tax                                                                             172                            246
Others Provisions                                                                                  195                            273
Taxation [Net of Tax Paid Rs 41,433 million (Previous year Rs 37,121 million)]                     836                            425
                                                                                                 3,807                          3,695



                                                                                              For the                      For the
                                                                                          year ended                   year ended
                                                                                            31.03.09                     31.03.08
SCHEDULE 15 - SALES
Vehicles                                                                                      216,590                       197,990
Spare Parts / Dies and Moulds / Components                                                     14,262                        11,503
                                                                                              230,852                       209,493




SCHEDULE 16 - OTHER INCOME
Interest on:
a) Fixed Deposits / Securities (Gross) [Includes Tax Deducted at Source of             660                       645
    Rs. 150 million (Previous year Rs. 146 million)]
b) Receivables from Dealers (Gross) [includes Tax Deducted at Source                   474                       423
    of Rs. 78 million (Previous year Rs. 35 million)]
c) Advances to Vendors (Gross) [Includes Tax Deducted at Source of                     670                       317
    Rs. 132 million (Previous year Rs. 65 million)]
d) Income tax refund                                                                   627                        15
e) Others                                                                                5       2,436             8           1,408
Sale of Scrap (Net of Excise)                                                                    1,923                         1,616
Sales Tax Benefit                                                                                   70                           136
Miscellaneous Receipts (Gross) [Includes Tax Deducted at Source of Rs. 9 Million
(Previous year Rs.8 million)]                                                                      390                           324
Cash Discount                                                                                      918                           859
Profit on Sale of Investments:
    - Long Term Investments                                                           1,754                      849
    - Short Term Investments                                                            383      2,137            49             898
Dividend:
    - Trade Investments - Long Term                                                      41                     31
    - Others                                                                          1,399      1,440       1,637             1,668
Provisions/ Liabilities no longer required Written Back                                            379                           855
Recovery of Service Charges                                                            369                       346
Less: Repair Cost of Damaged Vehicles                                                   77         292            44             302
Exchange Variation (Net)                                                                             -                           305
                                                                                                 9,985                         8,371



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                                                                                                               (Rs. in Million)
                                                                                               For the             For the
                                                                                           year ended          year ended
                                                                                             31.03.09            31.03.08

SCHEDULE 17 - EMPLOYEES REMUNERATION AND BENEFITS
Salaries , Wages , Allowances and Other Benefits
[Net of Staff cost recovered Rs 73 million (Previous year Rs 64 million)]                        4,166                 3,134
Contribution to Provident and Other Funds                                                          229                   181
Staff Welfare Expenses                                                                             308                   242
Group Insurance                                                                                      8                     5
                                                                                                 4,711                 3,562




SCHEDULE 18 - MANUFACTURING, ADMINISTRATIVE AND OTHER EXPENSES
 Power and Fuel [Net of amount recovered Rs 909 million,
(Previous year Rs 574 million)]                                                                  1,936                  1,473
Rent                                                                                               218                     72
Rates, Taxes and Fees                                                                              325                    233
Insurance                                                                                           66                     73
Repairs and Maintenance:
    Plant and Machinery                                                              370                 281
    Building                                                                          82                 137
    Others                                                                           117          569     90             508
Royalty                                                                                         6,791                  4,952
Tools / Machinery Spares Charged Off                                                              729                    774
Net Loss on Sale/Discarding of Fixed Assets                                                       125                     24
Provision for Doubtful Debts, Claims, Loans and Advances                                           38                      -
Exchange Variation (Net)                                                                        1,842                      -
Other Miscellaneous Expenses                                                                    3,046                  2,684
                                                                                               15,685                 10,793




SCHEDULE 19 - SELLING AND DISTRIBUTION EXPENSES
Advertisement                                                                                    2,585                  2,715
Sales Promotion                                                                                  1,403                  1,015
Warranty & Product Recall                                                                          472                    254
Transportation and Distribution Expenses                                                         2,922                  1,618
                                                                                                 7,382                  5,602




98    MARUTI SUZUKI INDIA LIMITED         Annual Report 2008 - 09
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                                                                                                                       (Rs. in Million)
                                                                                             For the                       For the
                                                                                         year ended                    year ended
                                                                                           31.03.09                      31.03.08

SCHEDULE 20 - INTEREST
Interest
Fixed :
Foreign Currency Loans                                                                249                        425
Export Credits                                                                        113                         22
Debentures                                                                              -        362              21              468
Others                                                                                           148                              128
                                                                                                 510                              596




SCHEDULE 21 - (INCREASE)/ DECREASE IN WORK-IN-PROGRESS,
FINISHED GOODS & SPARE PARTS
Work-in-Progress
Opening Stock                                                                         459                       309
Less: Closing Stock                                                                   489       (30)            459             (150)
Finished Goods
Opening Stock                                                                        5,408                   2,247
Less: Closing Stock                                                                  1,661                   5,408
                                                                                     3,747                 (3,161)
Less: Excise Duty on Increase/ (Decrease) of Finished Stock                            748     2,999         (446)            (2,715)
Spare Parts-Traded
Opening Stock                                                                         742                       690
Less: Closing Stock                                                                   893      (151)            742              (52)
                                                                                               2,818                          (2,917)




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SCHEDULE 22 - SIGNIFICANT ACCOUNTING POLICIES

1) BASIS FOR PREPARATION OF ACCOUNTS
   These financial statements have been prepared to comply in all material respects with all the applicable accounting principles in India, the
   applicable accounting standards notified under section 211(3C) of the Companies Act, 1956 and the relevant provisions of the
   Companies Act, 1956.

2) REVENUE RECOGNITION
   Domestic and export sales are recognised on transfer of significant risks and rewards to the customer which takes place on dispatch of
   goods from the factory / stockyard / storage area and port respectively.

3) FIXED ASSETS
   Fixed assets (except freehold land which is carried at cost) are carried at cost of acquisition or construction or at manufacturing cost (in
   case of own manufactured assets) in the year of capitalisation less accumulated depreciation.
   Assets acquired under finance lease are capitalized at the lower of their fair value and the present value of minimum lease payments.

4) BORROWING COSTS
   Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised till the
   month in which each asset is put to use as part of the cost of that asset.

5) DEPRECIATION
   a) Fixed assets except leasehold assets viz land and vehicles are depreciated on the straight line method on a pro-rata basis from the
      month in which each asset is put to use.
      Depreciation has been provided at the rates prescribed in Schedule XIV to the Companies Act, 1956 except for certain fixed assets
      where, based on the management's estimate of the useful life of the assets, higher depreciation has been provided on the straight line
      method over the following useful lives:
      Plant and Machinery                                      8 - 11 Years
      Dies and Jigs                                                 4 Years
      Electronic Data Processing Equipments                         3 Years
      In respect of assets whose useful life has been revised, the unamortised depreciable amount is charged over the revised remaining
      useful life of the assets.
   b) Leasehold assets viz land & vehicles are amortised over the period of lease.
   c) All assets, the individual written down value of which at the beginning of the year is Rs. 5,000 or less, are depreciated at the rate of
      100%. Assets purchased during the year costing Rs 5,000 or less are depreciated at the rate of 100%.

6) INVENTORIES
   a) Inventories are valued at the lower of cost, determined on the weighted average basis, and net realisable value.
   b) Tools are written off over a period of three years except for tools valued at Rs. 5,000 or less individually which are charged off to
      revenue in the year of purchase.
   c) Machinery spares (other than those supplied along with main plant and machinery, which are capitalized and depreciated
      accordingly) are charged to revenue on consumption except those valued at Rs. 5,000 or less individually, which are charged off to
      revenue in the year of purchase.

7) INVESTMENTS
   Current investments are valued at the lower of cost and fair value. Long-term investments are valued at cost except in the case of a
   permanent diminution in their value, in which case the necessary provision is made.

8) RESEARCH AND DEVELOPMENT
   Revenue expenditure on research and development is charged off against the profit of the year in which it is incurred. Capital expenditure
   on research and development is shown as an addition to fixed assets and depreciated accordingly.




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9) FOREIGN CURRENCY TRANSLATIONS AND DERIVATIVE INSTRUMENTS
   a) Foreign currency transactions are recorded at the exchange rates prevailing at the date of the transaction. Exchange differences
      arising on settlement of transactions, are recognised as income or expense in the year in which they arise.
   b) At the balance sheet date, all monetary assets and liabilities denominated in foreign currency are reported at the exchange rates
      prevailing at the balance sheet date by recognizing the exchange difference in profit and loss account. However, the exchange
      difference arising on foreign currency monetary items that qualify and are designated as hedge instrument in a cash flow hedge is
      initially recognized in 'hedge reserve' and subsequently transferred to profit & loss account on occurrence of the underlying hedged
      transaction.
   c) Effective April 1, 2008, the Company adopted Accounting Standard -30, "Financial Instruments: Recognition and Measurement"
      issued by The Institute of Chartered Accountants of India to the extent that the adoption does not contradict with the accounting
      standards notified under Section 211(3C) of the Companies Act, 1956 and other regulatory requirements.
   d) Derivative contracts are fair valued at each reporting date. The Company records the gain or loss on effective hedges, if any, in a
      “Hedge Reserve”, until the transaction is complete. On completion, the gain or loss is transferred to the profit and loss account of that
      period. Change in fair value relating to the ineffective portion of the hedges and derivatives not qualifying or not designated as hedge
      is recognized in the profit and loss account in the accounting period in which it arises.
   e) In case of forward foreign exchange contracts where an underlying asset or liability exists at the balance sheet date, the difference
      between the forward rate and the exchange rate at the inception of the contract is recognised as income or expense over the life of
      the contract. Profit or loss arising on cancellation or renewal of a forward contract is recognised as income or expense in the year in
      which such cancellation or renewal is made.
      (Refer Note 27 on Schedule 23)

10) EMPLOYEE BENEFIT COSTS
    The Company has Defined Contribution Plans for post employment benefits namely Provident Fund and Superannuation Fund which
    are recognised by the income tax authorities. These Funds are administered through Trusts and the Company's contributions thereto are
    charged to revenue every year. The Company also maintains an insurance policy to fund a post-employment medical assistance scheme,
    which is a Defined Contribution plan administered by The New India Insurance Company Limited. The Company's contribution to State
    Plans namely Employees' State Insurance Fund and Employees' Pension Scheme are charged to revenue every year.
    The Company has Defined Benefit Plans namely leave encashment/ compensated absence, Gratuity, Interest on Provident Fund and
    Retirement Allowance for employees, the liability for which is determined on the basis of an actuarial valuation at the end of the year. The
    Gratuity Fund is recognised by the income tax authorities and is administered through a Trust.
    Termination benefits are recognised as an expense immediately.
    Gains and losses arising out of actuarial valuations are recognised immediately in the Profit and Loss Account as income or expense.

11) CUSTOMS DUTY
    Custom duty available as drawback is initially recognized as purchase cost and is credited to consumption on export of vehicles.

12)GOVERNMENT GRANTS
   Government grants are recognised in the profit and loss account in accordance with the related scheme and in the period in which these
   are accrued.

13) TAXES
    Tax expense for the period, comprising current tax, fringe benefit tax and deferred tax, is included in determining the net profit/ (loss) for
    the year.
    Current tax is recognised based on assessable profit computed in accordance with the Income Tax Act and at the prevailing tax rate.
    Deferred tax is recognized for all timing differences. Deferred tax assets are carried forward to the extent it is reasonably / virtually certain
    that future taxable profit will be available against which such deferred tax assets can be realized. Deferred tax assets are reviewed at each
    balance sheet date and written down/ written up to reflect the amount that is reasonably/ virtually certain (as the case may be) to be
    realized.
    Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted at the balance sheet date.

14) DIVIDEND INCOME
    Dividend from investments is recognized when the right to receive the payment is established and when no significant uncertainty as to
    measurability or collectability exits.



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15) INTEREST INCOME
    Interest income is recognized on the time basis determined by the amount outstanding and the rate applicable and where no significant
    uncertainty as to measurability or collectability exists.

16) IMPAIRMENT OF ASSETS
    At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication
    exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an
    impairment loss is recognised in the profit and loss account to the extent the carrying amount exceeds the recoverable amount.

17) PROVISIONS AND CONTINGENCIES
    The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of
    resources and a reliable estimate can be made of the amount of the obligation. A disclosure of contingent liability is made when there is a
    possible obligation or a present obligation that will probably not require outflow of resources or where a reliable estimate of the
    obligation cannot be made.

SCHEDULE 23 - NOTES TO ACCOUNTS

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. 4,799 million (Previous year Rs. 3,130 million). Against this, the Company has
            deposited a sum of Rs. 23 million (Previous year Rs. 27 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. 4,466 million (Previous year Rs. 9,905 million). Against this, the Company has deposited a sum of Rs.
            3,802 million under protest (Previous year Rs. 4,745 million).
      v. Service-tax demands of Rs. 1234 million (Previous year Rs. 253 million).
      vi. Claims against the Company for recovery of Rs 606 million (Previous year Rs. 639 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) A guarantee given to HDFC Bank Limited against Non-Fund based facilities granted by the bank to a group company Suzuki
       Powertrain India Limited of Rs. Nil (Previous year Rs. 2,000 million). Against this, the balance outstanding as at the year-end is Rs. Nil
       (Previous year Rs. 194 million).
   d) A guarantee given to HSBC Limited against Non-Fund based facilities granted by the bank to a group company Suzuki Powertrain
       India Limited of Rs. Nil (Previous year Rs. 3,000 million). Against this, the balance outstanding as at the year-end is Rs. Nil (Previous year
       Rs. 1,543 million).
   e) 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 items (b) to (d) represent guarantees given in the normal course of the Company's 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 the Company aggregate to Rs 2,255 million (Previous year Rs. 2,764
   million).

3) Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amount to
   Rs.11,593 million (Previous year Rs. 12,692 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. 9 million (Previous year Rs. 26 million) on account of
         estimated reversal of tax benefit on quantity differences on inputs.


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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 2009, the Company has availed of sales tax benefit amounting to Rs. 1,675 million (Previous year Rs. 1,605 million).

6) 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, segment information has not been disclosed.

                                                                                                                                   (Rs. in Million)
                                                                                                           2008-09                     2007-08

7 a) The following expenses incurred on Research and
     Developement are included under respective account heads:
     Revenue Expenditure
     Employees Remuneration and Benefits                                                                        375                           200
     Other Expenses of Manufacturing and Administration                                                         291                           179
     Capital Expenditure                                                                                        244                           259
                                                                                                                910                           638
7 b) The corresponding expenses incurred on Research and Development for
     FY2006-07 and FY 2005-06 were included under respective account heads:
     Revenue Expenditure
     Employees Remuneration and Benefits                                                                        157                            92
     Other Expenses of Manufacturing and Administration                                                         185                           113
     Capital Expenditure                                                                                        102                           222
                                                                                                                444                           427
8 a) MANAGERIAL REMUNERATION
     Salaries and Allowances                                                                                      30                           35
     Commission / Performance linked Bonus                                                                        27                           27
     Contribution to Provident Fund                                                                                2                            2
     Gratuity and Leave Encashment Paid                                                                            -                           15
     Estimated value of Perquisites                                                                               17                           15
                                                                                                                 76*                           94
       *Includes profit linked bonus amounting to Rs 27 million which is
       subject to approval of shareholders
   b) Computation of net profit in accordance with Section 349/ 198 of
        the Companies Act, 1956
       Profit before Taxation                                                                                16,758                       25,030
   Add: Depreciation as per Accounts                                                             7,065                     5,682
       Managerial Remuneration to Whole Time Directors                                              70                        88
       Commission to Non-Whole Time Directors                                                        6                         6
       Director's Sitting Fees                                                                       0                         0
       (Rs. 0.4 million - Previous year Rs. 0.5 million)
       Provision for Diminution in value of Investment                                              30                        26
       Provision for Doubtful Advances                                                              38                         -
       Net Loss on Sale/Discarding of Fixed Assets                                                 125        7,334           24           5,826
                                                                                                             24,092                       30,856
   Less: Depreciation as per Section 350 of The Companies Act,1956                               7,065                     5,682
       Provision no longer required Written Back                                                   379                       855
       Profit on Sale of Investments                                                             2,137        9,581          898           7,435
       Net Profit as per Sections 349/350                                                                    14,511                       23,421



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                                                                                                         (Rs. in Million)
                                                                                         31.03.09           31.03.08

       Maximum Commission payable to Non-Whole-time Directors @ 1% on Rs. 14,511             145                    234
       million (Previous Year 1% on Rs. 23,421 million)
       Restricted to                                                                           6                       6
9)     AUDITORS' REMUNERATION*
       Statutory Audit                                                                        8.0                    6.8
       Other Audit Services / Certification                                                   3.0                    0.7
       Reimbursement of Expense                                                               0.6                    0.3
       *Excluding Service Tax
10)    CIF VALUE OF IMPORTS
       Raw Materials and Components                                                        17,388               13,279
       Capital Goods                                                                       12,095                8,753
       Maintenance Spares                                                                     205                  237
       Dies and Moulds                                                                         61                  263
       Other Items                                                                            213                   79
11)    EXPENDITURE IN FOREIGN CURRENCY (CASH BASIS)
       Fees for Technical Services (Net of TDS)                                             1,466                   631
       Traveling Expenses                                                                     107                   107
       Royalty (Net of TDS)                                                                 5,410                 3,834
       Interest                                                                               484                   417
       Others                                                                                 354                   333
12)    EARNINGS IN FOREIGN CURRENCY
       Export of Goods (FOB basis)                                                         15,022                 7,413
13)    DIVIDEND REMITTED IN FOREIGN CURRENCY (CASH BASIS)
       Dividend for the year 2007-08 (Previous year 2006-07)                                 783                  705
       No. of non-resident shareholders                                                         5                   5
       No. of shares for which dividend remitted                                      156,618,440         156,618,440
14)    VALUE OF IMPORTED AND INDIGENOUS
       MATERIALS CONSUMED
       i) RAW MATERIALS AND COMPONENTS
            Imported                                                                       17,626               14,138
            Indigenous                                                                    132,972              116,204
                                                                                          150,598              130,342
           PERCENTAGE OF TOTAL CONSUMPTION
           Imported                                                                          12%                   11%
           Indigenous                                                                        88%                   89%
       ii) MACHINERY SPARES
           Imported                                                                          174                    246
           Indigenous                                                                        332                    351
                                                                                             506                    597
          PERCENTAGE OF TOTAL CONSUMPTION
          Imported                                                                           34%                   41%
          Indigenous                                                                         66%                   59%




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15) LICENSED CAPACITY, INSTALLED CAPACITY AND ACTUAL PRODUCTION
   PRODUCT                                                            UNIT            LICENSED               INSTALLED          ACTUAL
                                                                                      CAPACITY              CAPACITY**      PRODUCTION
   Passenger Cars and
   Light Duty Utility Vehicles                                         Nos.                     -*             920,000                774,738
                                                                                           ( - )*             (520,000)              (777,017)

   Notes:
      * Licensed Capacity is not applicable from 1993-94.
      Previous Year figures are in brackets.
      **Installed Capacity is as certified by the management and relied upon by the auditors, being a technical matter.




16) SALES, OPENING STOCK AND CLOSING STOCK                                                                                             (Rs. in Million)
   PRODUCT                                        SALES                       OPENING STOCK                         CLOSING STOCK
                                          QTY.(Nos.)       VALUE        QTY.(Nos.)         VALUE                  QTY.(Nos.)           VALUE
   Passenger Vehicles                        792,167      216,590              24,174        5,408                        5,838         1,661
                                            (764,842)   (197,990)             (11,976)     (2,247)                   (24,174)          (5,408)
   Spare Parts / Components                         *      14,067                     *          877                            *       1,044
                                                    *     (11,026)                    *         (818)                           *        (877)
   Dies and Moulds                                  *         195                     *                 -                       *                  -
                                                    *        (477)                    *          (41)                           *                 -

   Notes:
   1. Purchase of traded goods comprise of Vehicles, Spares, Components and Dies and Moulds. During the year 50 Vehicles
      (Previous year 1,016 Vehicles) were purchased.
   2. Closing stock of vehicles is after adjustment of 29 vehicles (Previous Year - 23 vehicles) totally damaged.
   3. Sales quantity excludes own use vehicles 763 Nos. (Previous Year - 901 Nos.)
   4. Sales quantity excludes sample vehicles 165 Nos. (Previous Year - 69 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.




17) STATEMENT OF RAW MATERIALS AND COMPONENTS CONSUMED
                                                                                      2008-09                                       2007-08
  GROUP OF MATERIAL                                       UNIT                QTY.        AMOUNT                      QTY.              AMOUNT
  Steel Coils                                               MT          179,085                  8,254             154,880                    5,713
  Ferrous Castings                                          MT            24,389                 1,900              23,624                    1,693
  Non-ferrous Castings                                      MT            11,619                 2,526              13,260                    2,344
  Other Components                                                                *        136,620                          *             119,302
  Paints                                                  K.LTR            5,782                                      5,809
                                                            MT             3,998                 1,298                3,654                   1,290
                                                                                           150,598                                        130,342

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


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18) STATEMENT OF EARNING PER SHARE
                                                                                                              2008-09                2007-08

   Net Profit after tax attributable to shareholders (in Million Rupees)                                        12,187                 17,308
   Weighted Average Number of Equity Shares Outstanding
   during the year (Nos.)                                                                                 288,910,060              288,910,060
   Nominal value per share (In Rupees)                                                                           5.00                     5.00
   Basic/Diluted Earning Per Share (In Rupees)                                                                  42.18                    59.91


19)DEFERRED TAX
   Major Components of Deferred Tax arising on account of temporary timing differences along with their movement as at March 31, 2009
   are:                                                                                                                 (Rs. in Million)
                                                                                              Movement During
   Assets                                                                           31.03.08             the year           31.03.09
   Provision for Doubtful Debts / Advances                                                         162                     21            183
   Contingent Provisions                                                                           495                   (311)           184
   Others                                                                                          339                     83            422
   Total (A)                                                                                       996                   (207)           789
   Liabilities
   Depreciation on Fixed Assets                                                                  1,989                    156           2,145
   Exchange variation on Capital Account                                                           228                   (258)           (30)
   Allowances under Income Tax Act, 1961                                                           468                   (243)           225
   Deferred Revenue Expenditure                                                                      12                   (12)              -
   Total (B)                                                                                     2,697                   (357)          2,340
   Net Deferred Tax Liability* (B) - (A)                                                         1,701                   (150)          1,551
   Previous Year                                                                                 1,675                     26           1,701

   * Includes adjustment of Rs. 32 million on account of reclassification of Deffered Tax Liabilities to Provision for Taxation.

20)The Balance due to Micro and Small Scale Enterprises as at March 31, 2009 is Rs. 6 million (Previous year Nil) (Amount due more than 30
   days). A sum of Rs. 6 million (Previous year Nil) due to these enterprises is under reconciliation as at March 31, 2009. 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.

21)AMOUNT DUE FROM COMPANIES UNDER THE SAME MANAGEMENT
                                                                                                              2008-09                2007-08

   Sundry Debtors
   Balance at year end
       Suzuki Motor Corporation Japan                                                                               64                     17
       Ireland Suzuki Cars (Ireland) Ltd.                                                                            2                      -
       Suzuki Austria Automobil Handels GmBH                                                                        74                      -
       Suzuki Motor Iberica S.A.                                                                                    47                      -
       Suzuki Powertrain India Limited                                                                             325                    407
       Suzuki France SA                                                                                            296                      4
       Suzuki GB PLC                                                                                               286                     10
       Suzuki Italia SPA                                                                                             0                      1
       Suzuki International Europe GMBH                                                                            274                     19
       Suzuki Philippines                                                                                            0                      1
   Loans and Advances
       Suzuki Powertrain India Limited                                                                           1,395                    472
       Maximum Balance During the Year                                                                           1,800                    598
       Suzuki Motorcycle India Limited                                                                              15                      2
       Maximum Balance During the Year                                                                              15                      2


106   MARUTI SUZUKI INDIA LIMITED          Annual Report 2008 - 09
                                                                        Compiled by : Religare Technova Global Solutions Limited




                                                                                                                           Quest Unlimited
SCHEDULE


22) LOANS AND ADVANCES IN NATURE OF LOANS GIVEN TO SUBSIDIARIES AND ASSOCIATES ETC:                                             (Rs. in Million)
   Name of Company                                                         As at            Maximum          As at              Maximum
                                                                         31.3.09              Balance      31.3.08                Balance
                                                                                       during the year                     during the year
   Suzuki Powertrain India Limited                  Associate             2,947                   2,986          248                       341




23)The company normally acquires vehicles under Finance Leases with the respective underlying assets as security. Minimum lease
   payments outstanding as of 31st March 09 in respect of these assets are as follows.
                                                            March 31, 2009                                       March 31, 2008
   Due                                    Total Minimum      Interest     Present                      Total      Interest     Present
                                          Lease Payment      not due      Value of                 Minimum        not due      Value of
                                            Outstanding                 Minimum               Lease Payment                  Minimum
                                                    as on                   Lease           OutstandingAs on                     Lease
                                           31st March 09                 Payment               31st March 08                  Payment

   Within One Year                                     1            -              1                         1              0                 1
   Later than one Year but less
   than five Years                                     -            -              -                         1              0                 0
   Total                                               1            -              1                         2              0                 1

   Minimum Lease payments outstanding as on 31st March 09 in respect of assets taken on operating leases are as follows.




   Due                                                            March 31, 2009                               March 31, 2008
                                                      Total Minimum           Contingent             Total Minimum        Contingent
                                                       Lease Payment                Rent              Lease Payment             Rent
                                                    Outstanding as on                              Outstanding as on
                                                        31st March 09                                  31st March 08

   Within One Year                                                  58                        1                     49                        1
   Later than one Year but less than five Years                    241                        -                    238                        1
   later than five years                                         1,121                        -                  1,183                        -




                                                                 March 31, 2009                                March 31, 2008
                                                            Minimum          Contingent                    Minimum        Contingent
                                                       Lease Payment               Rent               Lease Payment             Rent

   Paid During the year                                              1                        1                        1                      1
   Charged to P&L                                                   63                        1                        1                      1




                                                        Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                                  107
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SCHEDULE


24) 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
           During the year the Company has recognised the following amounts in the Profit and Loss account:
                                                                                                                                         (Rs. in Million)
                                                                                                                  March 31, 2009        March 31, 2008
             Employers Contribution to Superannuation Fund*                                                                   23                       19
             Employers Contribution to Post Employment Medical Assistance Scheme.                                              1                        1
             Provident Fund                                                                                                  114                       86
      B. State Plans
         a) Employers contribution to Employee State Insurance.*
         b) Employers contribution to Employee's Pension Scheme 1995.*
             During the year the Company has recognised the following amounts in the Profit and Loss account:
                                                                                                                    (Rs. in Million)
                                                                                               March 31, 2009 March 31, 2008
             Employers contribution to Employee State Insurance.*                                              6                   4
             Employers contribution to Employee's Pension Scheme 1995.*                                      41                   34
             * Included in Contribution to Provident and Other Funds under Employee Remuneration and Benefits (Refer schedule 17)
      C. Defined Benefit Plans
         a) Contribution to Gratuity Funds - Employee's Gratuity Fund.
         b) Leave Encashment/ Compensated Absence.
         c) Retirement Allowance
             In accordance with Accounting Standard 15 (revised 2005), an acturial valuation was carried out in respect of the aforesaid
             defined benefit plans based on the following assumptions.



                                                                    March 31, 2009                                                March 31, 2008
                                                                Leave   Employees              Retirement              Leave       Employees     Retirement
                                                          Encashment/      Gratuity             Allowance        Encashment/         Gratuity     Allowance
                                                         Compensated           Fund                             Compensated             Fund
                                                              Absence                                                Absence
   Discount Rate (per annum)                                     8.00%            8.00%             8.00%                8.50%          8.50%            8.50%
   Rate of increase in compensation levels                       6.00%            6.00%             0.00%                6.00%          6.00%            0.00%
   Rate of return on plan assets.                       Not Applicable            8.00% Not Applicable          Not Applicable          8.50% Not Applicable
   Expected Average remaining working                                22               22                22                   21             21               21
   lives of employees (years)

         In calculating the leave encashment/ compensated absence liability 24% (Previous year - 23%) of the leave has been assumed to be availed of/ encashed
         during the year.
         Estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as
         supply and demand in the employment market.




108     MARUTI SUZUKI INDIA LIMITED            Annual Report 2008 - 09
                                                                                   Compiled by : Religare Technova Global Solutions Limited




                                                                                                                                         Quest Unlimited
SCHEDULE


Changes in Present Value Of Obligations
                                                               March 31, 2009                                           March 31, 2008
                                                            Leave    Employees            Retirement                Leave    Employees        Retirement
                                                      Encashment/       Gratuity           Allowance          Encashment/       Gratuity       Allowance
                                                     Compensated           Fund                              Compensated           Fund
                                                          Absence                                                 Absence
Present value of obligation as at beginning
of the year                                                     429              524              25                  441              484            22
Interest cost                                                     26               41                 2                31                40            -
Current service cost                                              65               35                 -                59                27            3
Benefits Paid                                                     57               17                 -                80                23            -
Actuarial (gain)/ loss on Obligations                             87               38             (0)                 (22)              (4)            -
Present value of obligation as at the year end                  550              621              27                  429              524            25




Changes in the Fair value of Plan Assets
                                                                                                          March 31, 2009                March 31, 2008
                                                                                                             Employees                     Employees
                                                                                                                Gratuity                      Gratuity
                                                                                                                    Fund                          Fund

Fair value of Plan Assets as at beginning of the year                                                                491                            456
Expected return on Plan Assets                                                                                        39                             39
Contribution                                                                                                          73                              -
Benefits Paid                                                                                                         17                             23
Actuarial gain/ (loss) on Obligations                                                                                 36                             19
Fair value of Plan Assets as at the year end                                                                         621                            491




Reconciliation of Present value of Defined Benefit Obligation and Fair value of Assets


                                                                      March 31, 2009                                         March 31, 2008
                                                          Leave         Employees        Retirement                Leave       Employees      Retirement
                                                    Encashment/           Gratuity        Allowance          Encashment/         Gratuity      Allowance
                                                   Compensated               Fund                           Compensated              Fund
                                                        Absence                                                  Absence
Present value of obligation as at the year end                550              621              27                   429              524            25
Fair value of Plan Assets as at the year end                      -            621                -                     -             491              -
Surplus/ (Deficit)                                           (550)                -            (27)                 (429)             (33)          (25)
Unfunded Net Asset/ (Liability) recognised in
Balance Sheet.                                               (550)                -            (27)                 (429)                -          (25)




                                                                  Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                                 109
                                                                                            Compiled by : Religare Technova Global Solutions Limited




SCHEDULE


  Expenses Recognised in Profit & Loss Account

                                                                              March 31, 2009                                   March 31, 2008
                                                                   Leave        Employees Retirement         Leave           Employees Retirement
                                                             Encashment/          Gratuity   Allowance Encashment/             Gratuity   Allowance
                                                            Compensated              Fund              Compensated                Fund
                                                                 Absence                                   Absence
  Current service cost                                                  65             35              -               59               27               3
  Interest cost                                                         27             41              2               31               40               -
  Expected return on Plan Assets                                          -          (39)                               -             (39)               -
  Settlement cost                                                         -            22                               -
  Net Actuarial (gain)/ loss recognised during the year                 87              2            (0)             (22)             (23)               -
  Total Expense recognised in Profit & Loss Account*                   179             61              2               68                   5            3

  * Included in Salaries, Wages, Allownaces and Other Benefits under Employee Remuneration and Benefits (Refer schedule 17)



  Constitution of Plan Assets                                                                                                    Gratuity
                                                                                                            March 31, 2009                  March 31, 2008

  a)     Debt Funds                                                                                                     543                           437
  b) Special Deposit with RBI                                                                                                -                         52
  c)     Others                                                                                                             78                          2
      Total                                                                                                             621                           491

  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 1962.
  Expected contribution on account of Gratuity for the year ending March 31, 2010 can not be ascertained at this stage.




110     MARUTI SUZUKI INDIA LIMITED         Annual Report 2008 - 09
                                                      25) STATEMENT OF TRANSACTIONS WITH RELATED PARTIES
                                                      NAME OF THE PARTIES
                                                      Holding Company                               Key Management Personnel                          Associates                                             Fellow Subsidiaries (Only with whom the company had transaction during the year)
                                                      Suzuki Motor Corporation                      Mr Shinzo Nakanishi                               Asahi India Glass Limited                              Suzuki Motor Iberica, S.A.         Suzuki Automobile Manufacturing (Thailand) Co.,Ltd
                                                      Joint Ventures                                Mr. Hirofumi Nagao (Resigned on 10th July 2008)   Bharat Seats Limited                                   Suzuki France S A                  Suzuki Auto South Africa (Pty) Ltd
                                                      J.J. Impex (Delhi) Private Limited            Mr.Shuji Oishi                                    Caparo Maruti Limited                                  Suzuki Italia S P A                PT Indomobil Suzuki International
                                                      Mark Exhaust Systems Limited                  Mr Tsuneo Ohashi                                  Climate Systems India Limited                          Suzuki Australia Pty. Ltd.
                                                      Bellsonica Auto Component India Pvt Ltd       Mr Keiichi Asai                                   Denso India Limited                                    Suzuki Austria Automobil Handels GmBH
                                                                                                                                                                                                                                                                                                     SCHEDULE




                                                      FMI Automotive Components Ltd.                                                                  Jay Bharat Maruti Limited                              Suzuki GB PLC
                                                                                                                                                      Krishna Maruti Limited                                 Magyar Suzuki Corporation Ltd.
                                                      Subsidiaries                                                                                    Machino Plastics Limited                               Suzuki Motor Espana, S.A.
                                                      Maruti Insurance Agency Services Ltd                                                            SKH Metals Limited                                     Suzuki International Europe Gmbh
                                                      Maruti Insurance Agency Logistics Ltd.                                                          Nippon Thermostat (India) Limited                      Suzuki Motor (Poland)
                                                      Maruti Insurance Distribution Services Ltd.                                                     Sona Koyo Steering Systems Limited                     Suzuki Cars (Ireland) Ltd.
                                                      Maruti Insurance Agency Network Ltd.                                                            Citicorp Maruti Finance Limited                        SUZUKI PHILIPPINES, INC.-814
                                                      Maruti Insurance Agency Solutions Ltd                                                           Maruti Countrywide Auto Financial Services Limited     Suzuki Motorcycle India Private Ltd.
                                                      True Value Solutions Ltd.                                                                       Magneti Marelli Powertrain India Pvt. Ltd.             American Suzuki Motor Corporation
                                                      Maruti Insurance Business Agency India Ltd.                                                     Suzuki Powertrain India Limited *                      Suzuki Automobile (Thailand) Co., Ltd.

                                                                                                                                       2008-09                                                                                              2007-08
                                                                                                                 Joint Subsidiaries Associates  Holding                Fellow          Key                   Joint    Subsidiaries Associates   Holding     Fellow                  Key      Total
                                                                                                              Ventures                         Company            Subsidiaries Management        Total     Venture                             Company subsidiaries         Management
                                                                                                                                                                                 Personnel                                                                                    Personnel
                                                      Outstanding at year end
                                                      Loans and advances recoverable
                                                      Suzuki PowerTrain India Limited                                -                       4,781           -                              -    4,781           -               -       472             -                              -     472
                                                      Krishna Maruti Limited                                         -                         711           -              -               -      711           -               -       104             -             -                -     104
                                                      Others                                                       127             40        1,123           4              1               -    1,295          72               -       165             3             3                -     243
                                                      Total                                                        127             40        6,615           4              1               -    6,787          72               -       741             3             3                -     819
                                                      Amounts payable
                                                      Suzuki Motor Corporation                                       -                           -       3,932              -               -    3,932           -               -          -       3,045               -               -   3,045
                                                      Suzuki PowerTrain India Limited                                -                       1,983           -              -               -    1,983           -               -        560           -                               -     560
                                                      Others                                                       438                       2,905           -             21               -    3,364          90               -      1,224           -             14                -   1,328
                                                      Total                                                        438                       4,888       3,932             21               -    9,279          90               -      1,784       3,045             14                -   4,933
                                                      Guarantees given by the Company
                                                      Suzuki Motor Corporation                                        -                           -      6,328               -              -    6,328            -              -           -      5,002               -               -   5,002
                                                      Others                                                          -              -            -          -               -              -                     -              -           -          -               -               -       -
                                                      Total                                                           -              -            -      6,328               -              -    6,328            -              -           -      5,002               -               -   5,002
                                                      Guarantees given to third parties by the Company
                                                      Suzuki PowerTrain India Limited                                 -                           -           -              -              -         -           -              -      1,814            -              -               -   1,814
                                                      Others                                                          -                           -           -              -              -         -                          -          -            -              -               -       -
                                                      Total                                                           -              -            -           -              -              -         -           -              -      1,814            -              -               -   1,814
                                                      Finances (Equity & Loans)
                                                      Suzuki PowerTrain India Limited                                 -                        600            -              -              -      600           -              -         966            -                              -      966
                                                      Magneti Marelli Powertrain                                      -                         68            -              -              -       68           -              -          17            -              -               -       17
                                                      Others                                                          -             6            -            -              -              -        6         759              1           -            -              -               -      760
                                                      Total                                                           -             6          668            -              -              -      674         759              1         983            -              -               -    1,743
                                                      Amount recoverable
                                                      SKH Metals Limited                                             -                         314           -              -               -      314           -               -        137           -              -                -     137
                                                      Suzuki France SA                                               -                           -           -            296               -      296           -               -          -           -              4                -       4
                                                      Suzuki GB PLC                                                  -                           -           -            286               -      286           -               -          -           -             10                -      10
                                                      Suzuki International Europe Gmbh                               -                           -           -            274               -      274           -               -          -           -             19                -      19
                                                      Suzuki PowerTrain India Limited                                -                         325           -              -               -      325           -               -        407           -              -                -     407




Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED
                                                      Others                                                       245                         684          64            107               -    1,100          35               -        747          17             12                -     811
                                                      Total                                                        245               -       1,323          64            963               -    2,595          35               -      1,291          17             45                -   1,388
                                                      Transaction during the year
                                                      Purchases of Capital items
                                                      Suzuki Motor Corporation                                        -                           -      3,571              -               -    3,571          -                -          -       2,211              -                -   2,211
                                                      Others                                                          -                           -          -              1               -        1        409                -          3           -             85                -     497
                                                      Total                                                           -              -            -      3,571              1               -    3,572        409                -          3       2,211             85                -   2,708
                                                                                                                                                                                                                                                                                                         Quest Unlimited




  111
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 112
                                                                                                                     2008-09                                                                                 2007-08
                                                                                         Joint     Subsidiaries   Associates    Holding        Fellow          Key             Joint   Subsidiaries Associates   Holding     Fellow            Key    Total
                                                                                      Ventures                                 Company    Subsidiaries Management    Total   Venture                            Company subsidiaries   Management
                                                                                                                                                         Personnel                                                                       Personnel
                              Goods In Transit - Comp Etc.
                              Suzuki Motor Corporation                                         -                          -        834              -          -      834          -             -         -       972             -             -     972
                                                                                                                                                                                                                                                              SCHEDULE

                              Others                                                           -                          -          -              -          -        -          -             -         -         -             -             -       -
                              Total                                                            -              -           -        834              -          -      834          -             -                 972                                 972
                              Sale of goods
                              Suzuki France SA                                                 -              -          -           -            879          -       879        -              -        -          -            3              -       3
                              Suzuki GB PLC                                                    -              -          -           -            935          -       935        -              -        -          -           25              -      25
                              Suzuki International Europe Gmbh                                 -              -          -           -         1 ,043          -     1,043        -              -        -          -           46              -      46
                              PT Indomobil Suzuki International                                -              -          -           -            691          -       691        -              -        -          -        1,199              -   1,199
                              Others                                                         596                     1,189         317            545          -     2,647      215              -      637        119          207                  1,178
                              Total                                                         596               -      1,189         317         4,093           -     6,195      215              -      637        119        1,480              -   2,451




MARUTI SUZUKI INDIA LIMITED
                              Other Income
                              Finance income/ commission/Dividend
                              Krishna Maruti Limited                                           -                        86            -             -          -       86         -              -       65           -            -             -      65
                              Suzuki PowerTrain India Limited                                  -                       450            -             -          -      450         -              -      189           -            -             -     189
                              Others                                                          21                       294            -             -          -      315        22              -      238           -            -             -     260
                              Total                                                           21              -        830            -             -          -      851        22              -      492           -            -             -     514
                              Other Misc Income
                              Suzuki PowerTrain India Limited                                  -                       671            -                        -      671         -              -      278          -            -              -     278
                              Others                                                          81                       210            -             -                 291         6              -      226          1            4                    237
                              Total                                                           81              -        881            -             -          -      962         6              -      504          1            4              -     515
                              Expenditure




Annual Report 2008 - 09
                              Purchases of goods
                              Suzuki Motor Corporation                                         -                         -       11,294            -           - 11,294           -              -        -     10,202            -              -   10,202
                              Suzuki Powertrain India Ltd.                                     -                    19,291            -            -           - 19,291           -              -   13,616          -            -              -   13,616
                              Others                                                       2,976                    30,646            -            4           - 33,626       1,919              -   26,670          -            2              -   28,591
                              Total                                                       2,976               -     49,937       11,294            4           - 64,211       1,919              -   40,286     10,202            2              -   52,409
                              Proposed Dividend
                              Suzuki Motor Corporation                                         -                          -        548              -          -      548          -             -         -       783             -             -     783
                              Total                                                            -              -           -        548              -          -      548          -             -         -       783             -             -     783
                              Royalty
                              Suzuki Motor Corporation                                         -                          -       6,777             -          -     6,777         -             -         -      4,931            -             -   4,931
                              Total                                                            -              -           -       6,777             -          -     6,777         -             -         -      4,931            -             -   4,931
                              Receiving of services
                              Suzuki Motor Corporation                                         -                          -        736              -          -      736          -             -        -        554            -              -     554
                              Others                                                           -                          -          -              -          -        -          -             -       38          -            2              -      40
                              Total                                                            -              -           -        736              -          -      736          -             -       38        554            2              -     594
                              Other-expenditure
                              Suzuki GB PLC                                                    -                         -            -           22           -       22         -                       -           -           3              -       3
                              Suzuki International Europe Gmbh                                 -                         -            -            8           -        8         -              -        -           -           2              -       2
                              Magyar Suzuki Corporation Ltd.                                   -                         -            -            5           -        5         -              -        -           -           -              -       -
                              Others                                                           -                         1            -            5           -        6         4              -        1           -           -              -       5
                              Total                                                            -              -          1            -           40           -       41         4              -        1           -           5              -      10
                              Managerial Remuneration
                              Mr Shinzo Nakanishi                                              -                          -           -             -         20       20          -                       -          -            -            5        5
                              Mr. Hirofumi Nagao (Resigned on 10th July.2008)                  -                          -           -             -          5        5          -                       -          -            -           14       14
                              Mr Tsuneo Ohashi                                                 -                          -           -             -         15       15          -             -         -          -            -            3        3
                              Mr Keiichi Asai                                                  -                          -           -             -         15       15          -             -         -          -            -            2        2
                              Mr. Shuji Oishi                                                  -                          -           -             -         15       15          -             -         -          -            -           13       13
                              Total                                                            -                          -           -             -         70       70          -             -         -          -            -           37       37
                              Note:
                              * Suzuki Powertrain India Limited is also a Fellow Susidiary
                                                                                                                                                                                                                                                                         Compiled by : Religare Technova Global Solutions Limited
                                                                                        Compiled by : Religare Technova Global Solutions Limited




                                                                                                                                                  Quest Unlimited
SCHEDULE

                                                                                                                                                    (Rs. in Million)
26) THE COMPANY HAS THE FOLLOWING PROVISIONS IN THE BOOKS OF ACCOUNT AS ON 31.03.2009 :
Description                                                                               Balance            Additions Utilized/Reversed                  Balance
                                                                                   as on 31.03.08       during the year  during the year           as on 31.03.09


    a)   Litigation Related Provisions                                                          596                    37                    22                611
    b)   Warranty / Product Recall Provisions                                                   253                   472                   293                432
    c)   Others Provisions                                                                      273                    41                   119                195

    a)   Litigation Related Provisions pertain to the estimated outflow in respect of disputes with various government authorities .The information required by
         AS 29, Provisions, Contingent Liabilities and Contingent Assets has not been disclosed on the grounds that it can be expected to prejudice the interest
         of the Company.
    b)   Warranty and Product Recall Provisions relate to the estimated outflow in respect of warranty and recall cost for products sold during the year. Due to
         the very nature of such costs, it is not possible to estimate the timing / uncertainties relating to there outflows as well as the expected reimbursements
         from such estimates.
    c)   Other Provisions relate to excise duty, export obligation and guarantees etc. given. Due to the very nature of such costs, it is not possible to estimate the
         timing / uncertainties relating to their outflows as well as the expected reimbursements from such estimates.

27) With effect from April 1, 2008, the company has adopted Accounting Standard 30 - Financial Instruments - Recognition and Measurement issued by The
    Institute of Chartered Accountants of India to the extent it does not contradict with any other Accounting Standard notified u/s 211(3C) of The Companies
    Act. Accordingly, during the current year, in respect of derivative instruments which qualify for hedge accounting, the net unrealised loss aggregating Rs.
    1,709 million has been accounted for as a Hedging Reserve to be ultimately recognized in the profit and loss account when the underlying transaction
    arises, as against the earlier practice of recognizing the same in the profit and loss account, on valuation at the end of each period. Other derivative
    instruments that do not qualify for hedge accounting have been recorded at fair value at the reporting date and the resultant loss/ gain has been accounted
    in the profit and loss account.
28) THE DETAILS OF INVESTMENT AS PER SCHEDULE 7 ARE PROVIDED BELOW:
Name of the Company                                        Interest /      Face Value    Face Value        Number             Number
                                                           Dividend           Rupees        Rupees           AS AT               AS AT        AS AT          AS AT
                                                               %age       31.03.2009     31.03.2008     31.03.2009          31.03.2008   31.03.2009     31.03.2008

Long Term Trade Investments:
Quoted Equity Shares (Fully Paid):
   Asahi India Glass Limited                                                       1               1    17,760,000          17,760,000              2             2
   Bharat Seats Limited                                                            2               2     4,650,000           4,650,000              5             5
   Denso India Limited                                                            10              10     2,862,758           2,862,758             73            73
   Jay Bharat Maruti Limited                                                       5               5     6,340,000           6,340,000             16            16
   Machino Plastics Limited                                                       10              10       941,700             941,700              5             5
   Sona Koyo Steering Systems Limited                                              2               2     6,900,000           6,900,000             10            10
                                                                                                                                                  111           111
Unquoted Equity Shares (Fully Paid):
   Caparo Maruti Limited                                                          10              10      2,500,000          2,500,000             25            25
   Citicorp Maruti Finance Limited                                                10              10     25,999,990         25,999,990            260           260
   Climate Systems India Limited                                                 100             100        518,700            518,700             52            52
   J.J. Impex (Delhi) Private Limited                                             10              10      4,323,750          4,323,750             72            72
   Krishna Maruti Limited                                                         10              10        670,000            670,000              7             7
   SKH Metals Limited                                                             10              10      2,645,000          2,645,000             49            49
   Maruti Countrywide Auto Financial Services Limited                             10              10     10,400,000         10,400,000            104           104
   Nippon Thermostat (India) Limited                                              10              10        125,000            125,000              1             1
   Mark Exhaust Systems Limited                                                   10              10      4,437,465          4,437,465             57            57
   Bellsonica Auto Components India Private Limited                              100             100      3,540,000          3,540,000            354           354
   Suzuki Powertrain India Limited
   (Company under same management)                                                10              10    232,800,000     172,800,000            2,328          1,728
   Magneti Marelli Powertrain India Limited                                       10              10     8,550,000        1,710,000               86             17
   FMI Autmotive Components Limited                                               10              10    44,100,000       44,100,000              441            441
                                                                                                                                               3,836          3,167

    Less: Provision for diminution in value                                                                                                      130            130
                                                                                                                                               3,706          3,037


                                                                        Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                                       113
                                                                                           Compiled by : Religare Technova Global Solutions Limited




SCHEDULE


Name of the Company                                     Interest /    Face Value   Face Value      Number      Number
                                                        Dividend         Rupees       Rupees         AS AT        AS AT        AS AT        AS AT
                                                            %age     31.03.2009    31.03.2008   31.03.2009   31.03.2008   31.03.2009   31.03.2008

Unquoted Equity Shares in Subsidiary Companies (Fully Paid):
   Maruti Insurance Business Agency Limited                                  10           10      150,000       50,000           1.5          0.5
   Maruti Insurance Distribution Services Limited                            10           10      150,000       50,000           1.5          0.5
   True Value Solutions Limited                                              10           10       50,000       50,000           0.5          0.5
   Maruti Insurance Agency Solutions Limited                                 10           10      150,000       50,000           1.5          0.5
   Maruti Insurance Agency Network Limited                                   10           10      150,000       50,000           1.5          0.5
   Maruti Insurance Agency Services Limited                                  10           10      150,000       50,000           1.5          0.5
   Maruti Insurance Agency Logistic Limited                                  10            -      150,000       50,000           1.5          0.5
                                                                                                                                 9.5          3.5
Other Long Term Investments :
Unquoted Redeemable Preference Shares (Fully Paid):
   Western Paques (India) Limited                   14.50%                  100          100      500,000      500,000           50           50
                                                                                                                                 50           50
      Less :Provision for diminution in value                                                                                    50           50
                                                                                                                                  -            -
Units of Debt Mutual Funds:
Long Term (Unquoted)
    ABN Amro FTP Series 4 17 Month Growth                                     -         10.0             -   15,000,000           -          150
    ABN Amro FTP Series 5 13 Month Growth                                     -         10.0             -   15,000,000           -          150
    ABN Amro FTP Series 8 yearly Plan E Inst Growth                           -         10.0             -   15,000,000           -          150
    ABN Amro FTP Series 10 Plan E Inst Growth                              10.0         10.0    10,000,000   10,000,000         100          100
    Birla FTP Series O Growth                                                 -         10.0             -   15,000,000           -          150
    Birla FTP Series AE Growth                                                -         10.0             -   20,000,000           -          200
    Birla FTP Series AR Growth                                             10.0         10.0    10,000,000   10,000,000         100          100
    Canbank Fixed Maturity Plan Growth                                        -         10.0             -   10,000,000           -          100
    DBS Chola FMP Series 6 ( 371 days Plan ) Growth                           -         10.0             -   10,000,000           -          100
    DSP ML FMP 12.5 M Series 1 Inst Growth                                 10.0         10.0    40,000,000   40,000,000         400          400
    DSP ML FMP 13 M Series 1 Inst Growth                                   10.0         10.0    30,000,000   30,000,000         300          300
    DSP ML FMP 15 M Series 2 Inst Growth                                   10.0         10.0    15,000,000   15,000,000         150          150
    DSP ML FTP Series 3F Dividend                                             -        1,000             -      100,000           -          100
    DWS Fixed Term Fund Series 18 Inst Plan Growth                            -           10             -   10,000,000           -          100
    DWS Fixed Term Fund Series 21 Inst Plan Growth                            -           10             -   20,000,000           -          200
    DWS Fixed Term Fund Series 24 Inst Plan Growth                            -           10             -   25,000,000           -          250
    DWS Fixed Term Fund Series 25 Inst Plan Growth                            -           10             -   15,000,000           -          150
    DWS Fixed Term Fund Series 35 Inst Plan Growth                            -           10             -   15,000,000           -          150
    DWS Fixed Term Fund Series 41 Inst Plan Growth                          10            10    10,000,000   10,000,000         100          100
    DWS Fixed Term Fund Series 46 Inst Plan Growth                          10            10    20,000,000   20,000,000         200          200
    DWS Fixed Term Fund Series 47 Inst Plan Growth                          10            10    20,000,000   20,000,000         200          200
    Fidelity FMP Series 1 Growth                                            10             -    15,000,000            -         150            -
    HDFC FMP 14 M March 07 (3) Growth                                         -           10             -   20,000,000           -          200
    HDFC FMP 16 M Jan 07 (3) Growth                                           -           10             -   15,000,000           -          150
    HSBC fixed Term Series 21 Growth                                          -           10             -   15,000,000           -          150
    HSBC fixed Term Series 23 Growth                                          -           10             -   10,000,000           -          100
    ING FMP Series 32 Growth                                                  -           10             -   20,000,000           -          200
    JM Fixed maturity fund series IV Yearly plan growth                       -           10             -   10,000,000           -          100
    JM Fixed maturity fund series VII 13 Month plan 1inst growth              -           10             -   20,000,000           -          200
    JM Fixed maturity fund series XI 13 Month plan 1inst growth             10            10    10,000,000   10,000,000         100          100
    Kotak FMP 13M Series 1 Inst Growth                                        -           10             -   20,000,000           -          200
    Kotak FMP 13M Series 2 Inst Growth                                        -           10             -   15,000,000           -          150
    Kotak FMP 15M Series 2 Growth                                             -           10             -   10,000,000           -          100
    Kotak FMP 16M Series 1 Growth                                             -           10             -   10,000,000           -          100
    Kotak FMP 14M Series 3 Growth                                           10            10    10,000,000   10,000,000         100          100
    Kotak FMP 14M Series 4 Growth                                           10            10    10,000,000   10,000,000         100          100




114      MARUTI SUZUKI INDIA LIMITED            Annual Report 2008 - 09
                                                                                          Compiled by : Religare Technova Global Solutions Limited




                                                                                                                                         Quest Unlimited
SCHEDULE


Name of the Company                                        Interest /        Face Value    Face Value      Number       Number
                                                           Dividend             Rupees        Rupees         AS AT         AS AT        AS AT        AS AT
                                                               %age         31.03.2009     31.03.2008   31.03.2009    31.03.2008   31.03.2009   31.03.2008

   Kotak FMP 13M Series 3 Growth                                                    10            10     20,000,000   20,000,000         200          200
   Kotak FMP 15M Series 4 Growth                                                    10            10    30,000,000    30,000,000         300          300
   Kotak FMP 13M Series 5 Growth                                                    10             -    25,000,000             -         250            -
   LIC MF FMP Series 19 13 months Growth                                             -            10              -   25,000,000           -          250
   LIC MF FMP Series 20 14 months Growth                                             -            10              -   15,000,000           -          150
   LIC MF FMP Series 21 15 months Growth                                             -            10              -   15,000,000           -          150
   LIC MF FMP Series 32 13 months Growth                                             -            10              -   25,000,000           -          250
   LIC MF FMP Series 34 16 months Growth                                             -            10              -   30,000,000           -          300
   Lotus India FMP 14 Month Series 3 Growth                                          -            10              -   12,000,000           -          120
   Lotus India FMP 14 Month Series 2 Growth                                          -            10              -   10,000,000           -          100
   Lotus India FMP 13 Month Series 4 Growth                                          -            10              -   10,000,000           -          100
   Lotus India FMP 375 days Series 7 Growth                                          -            10              -   10,000,000           -          100
   Principal PNB Fixed maturity plan (FMP 33)
   540 days Series I Jan 07 Growth                                                    -           10              -   25,000,000            -         250
   Principal PNB Fixed maturity plan (FMP 36)
   460 days Series III March 07 Growth                                                -           10              -   20,000,000            -         200
   Principal PNB Fixed maturity plan (FMP 44)
   540 days Series II March 08 Growth                                               10            10    12,000,000    12,000,000         120          120
   Principal PNB Fixed maturity plan (FMP 50)
   385 days Series IX Growth                                                        10             -     7,136,776             -          71            -
   Pru ICICI FMP series 34 One year plan B IP growth                                 -            10             -    25,000,000           -          250
   Pru ICICI FMP series 34 Sixteen month IP growth                                   -            10             -    25,000,000           -          250
   Pru ICICI FMP series 35 Thirteen months Plan B IP growth                          -            10             -    20,000,000           -          200
   Pru ICICI FMP series 37 Fourteen months IP growth                                 -            10             -    20,000,000           -          200
   ICICI Prudential FMP series 41 14 M Growth                                       10            10    10,000,000    10,000,000         100          100
   ICICI Prudential FMP series 43 13 M Plan D Growth                                10            10    10,000,000    10,000,000         100          100
   Reliance Fixed horizon fund II Annual Plan Plan Series VI Inst Growth             -            10             -    20,000,000           -          200
   Reliance Fixed horizon fund III Annual Plan Plan Series I Inst Growth             -            10             -    40,000,000           -          400
   Reliance Fixed horizon fund III Annual Plan Plan Series IV Inst Growth            -            10             -    40,000,000           -          400
   Reliance Fixed horizon fund IV Series 5 Inst Growth                              10            10    50,000,000    50,000,000         500          500
   Reliance Fixed horizon fund IV Series 6 Inst Growth                              10            10    40,000,000    40,000,000         400          400
   Reliance Fixed horizon fund IV Series 7 Inst Growth                              10            10    50,000,000    50,000,000         500          500
   Reliance Fixed horizon fund VI Series 3 Inst Growth                              10            10    40,000,000    40,000,000         400          400
   Reliance Fixed horizon fund VI Series 4 Inst Growth                              10            10    60,000,000    60,000,000         600          600
   Reliance Fixed horizon fund VI Series 6 Inst Growth                              10            10     9,603,562    35,000,000          96          350
   SBI Debt fund series (13 months II) March 07 Growth                               -            10             -    20,000,000           -          200
   SBI Debt fund series (13 months) March 07 Growth                                  -            10             -    20,000,000           -          200
   SBI Debt fund series (13 months) 7 March 08 Growth                                -            10             -    60,000,000           -          600
   SBI Debt fund series (13 months) 10 March 09 Growth                              10             -    50,000,000             -         500            -
   Standard Chartered fixed maturity Plan Yearly Series 3 Growth                     -            10             -    20,000,000           -          200
    Standard Chartered fixed maturity Plan Yearly Series 5 Growth                    -            10             -    20,000,000           -          200
    Standard Chartered fixed maturity Plan Yearly Series 17 Growth                  10            10    15,000,000    15,000,000         150          150
   Standard Chartered fixed maturity Plan Yearly Series 19 Growth                   10            10    25,000,000    25,000,000         250          250
   Standard Chartered fixed maturity Plan Yearly Series 20 Growth                   10            10    25,000,000    25,000,000         250          250
   Sundaram BNP Paribas FTP Series 32 Growth                                         -            10             -    15,000,000           -          150
   Sundaram BNP Paribas FTP 367 days plan 1 Growth                                   -            10             -    12,000,000           -          120
   Sundaram BNP Paribas FTP plan D Growth                                           10            10    10,000,000    10,000,000         100          100
   Sundaram BNP Paribas FTP plan E Growth                                           10            10    10,000,000    10,000,000         100          100
   Tata Fixed horizon fund series 7 scheme B Growth Inst plan                        -            10             -    20,000,000           -          200
   Tata Fixed horizon fund series 7 scheme D Growth Inst plan                        -            10             -    10,000,000           -          100
   Templeton fixed horizon fund series I 15 Month Plan Growth                        -            10             -    20,000,000           -          200
   Templeton Fixed Tenure Fund Serie VII Plan C Growth                              10            10    30,000,000    30,000,000         300          300
   Deutsche FTF Series 52 Dividend                                                  10             -    30,000,000             -         300            -
   Deutsche FTF Series 54 Dividend                                                  10             -    11,621,654             -         116            -



                                                                        Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                             115
                                                                                          Compiled by : Religare Technova Global Solutions Limited




SCHEDULE


Name of the Company                                    Interest /    Face Value   Face Value      Number        Number
                                                       Dividend         Rupees       Rupees         AS AT          AS AT        AS AT        AS AT
                                                           %age     31.03.2009    31.03.2008   31.03.2009     31.03.2008   31.03.2009   31.03.2008

    DSP Blackrock FMP 12 M Series 1 Dividend                                10            -    10,511,742              -         105            -
    DSP Blackrock FMP 12 M Series 2 Dividend                                10            -    15,653,471              -         157            -
    ICICI Prudential FMP Series 47 One year plan B Dividend                 10            -    40,000,000              -         400            -
    IDFC FMP 13 month Series 1 dividend                                     10            -    20,000,000              -         200            -
    Kotak FMP 12 Month Series 7 Dividend                                    10            -    15,694,401              -         157            -
    Kotak FMP 12 Month Series 8 Dividend                                    10            -    41,914,480              -         419            -
    Principal PNB FMP (47) 385 days series VII dividend                     10            -    15,000,000              -         150            -
    Reliance FMP X Series 2 dividend                                        10            -    50,000,000              -         500            -
    SBI SDFS 13 month series 8 Dividend                                     10            -    46,220,290              -         463            -
    Sundaram FMP 13 month series H dividend                                 10            -     9,314,508              -          93            -
    Sundaram FMP 13 month series I dividend                                 10            -     6,344,534              -          63            -
    Sundaram FMP 367 days series 4 dividend                                 10            -    29,655,643              -         297            -
    Birla sunlife liquid plus inst growth                                   10           10    114,877,934   114,877,934       1,750        1,750
    Deutsche Money Plus Fund Inst Growth                                     -           10              -    77,637,983           -          800
    HDFC Floating rate income fund short term wholesale growth               -           10              -   109,853,894           -        1,500
    HDFC Liquid Fund premium plus plan Growth                                -           10              -    33,406,382           -          500
    HSBC Liquid plus fund Inst Plus Growth                                   -           10              -    96,558,755           -        1,000
    ICICI Prudential Flexible income plan growth                            10           10    93,861,613     93,861,613       1,400        1,400
    ING Vysay Liquid fund Super Inst Plan growth                             -           10              -    89,830,413           -        1,000
    JM Money Manager Fund Super Plus Plan Growth                            10           10    154,666,149   154,666,149       1,750        1,750
    Kotak Flexi debt Growth                                                  -           10              -    19,772,537           -          250
    Kotak Liquid Inst Premium Growth                                         -           10              -    19,814,143           -          300
    Lotus India Liquid plus fund Inst growth                                 -           10              -    45,302,165           -          500
    Principal CMF Liquid Inst Premium Growth                                 -           10              -    34,244,816           -          400
    Principal floating rate fund FMP Inst Growth                             -           10              -   121,682,041           -        1,550
    Prudential ICICI Liquid Plan Super Inst Growth                           -           10              -   182,568,132           -        2,000
    Reliance Liquid Plus fund Inst growth                                    -        1,000              -     1,878,155           -        2,050
    Reliance liquidity fund growth                                           -           10              -    44,632,098           -          500
    Tata Floater Fund growth                                                 -           10              -   125,295,574           -        1,500
    Tata liquid fund SHIP growth                                             -           10              -       362,940           -          500
    UTI Liquid cash plan Inst plan growth                                    -           10              -       406,207           -          500
    UTI Liquid plus fund Inst plan Growth                                    -        1,000              -     1,622,514           -        1,750
    DSP Blackrock bond fund dividend                                        10            -    13,752,016              -         149            -
    HDFC Short term fund Growth                                             10            -    20,965,646              -         350            -
    ICICI Prudential Income fund Dividend                                   10            -    42,539,439              -         493            -
    ICICI Short term plan Growth                                            10            -    22,086,147              -         400            -
    Kotak Bond fund Dividend                                                10            -    36,462,582              -         393            -
    Reliance income fund Dividend                                           10            -    57,221,830              -         743            -
    Reliance income fund growth                                             10            -     8,636,175              -         250            -
    Reliance short term fund growth                                         10            -    15,486,301              -         250            -
                                                                                                                              18,635       37,710
Current (Unquoted)
    Principal Cash management fund inst dividend                            10            -    129,409,745             -       1,300            -
    SBI Premier Liquid fund super inst plan dividend                         -           10              -    44,151,268           -          467
    Sundaram Money Fund Super inst dividend                                 10            -    31,952,485              -         340            -
    ABN Amro Money plus fund inst dividend                                  10            -    86,010,504              -         861            -
    Birlasunlife liquid plus fund inst dividend                              -           10              -     2,344,064           -           23
    Deutsche Credit Opportunities cash Fund dividend                         -           10              -    77,846,260           -          785
    HSBC Liquid plus fund Inst Plus dividend                                 -           10              -    46,847,263           -          470
    ICICI Prudential Flexible income plan dividend                          10           10    157,513,830     5,138,366       1,661           52
    JM Money Manager Fund Super Plus Plan Dividend                           -           10              -    33,028,345           -          333
    Kotak Flexi debt dividend                                                -           10              -       962,826           -           10
    Kotal floater long term inst dividend                                   10            -    83,994,141              -         847            -
    LIC MF Liquid Plus Fund Dividend                                         -           10              -   133,189,703           -        1,333


116    MARUTI SUZUKI INDIA LIMITED         Annual Report 2008 - 09
                                                                                       Compiled by : Religare Technova Global Solutions Limited




                                                                                                                                       Quest Unlimited
SCHEDULE


                                                                                                                                          (Rs. in Million)
Name of the Company                                       Interest /      Face Value    Face Value      Number       Number
                                                          Dividend           Rupees        Rupees         AS AT         AS AT        AS AT         AS AT
                                                              %age       31.03.2009     31.03.2008   31.03.2009    31.03.2008   31.03.2009    31.03.2008

   Lotus India liquid plus fund inst dividend                                    10            10    73,214,251    18,228,226           733          183
   Lotus India Short term plan inst dividend                                     10             -    47,314,869             -           481            -
   Principal floating rate fund FMP Inst dividend                                10            10    114,152,057   42,521,703         1,142          426
   Reliance Liquid Plus fund Inst dividend                                        -         1,000              -       39,305             -           39
   Reliance Medium term fund inst dividend                                       10             -    111,566,031            -         1,907            -
   Sundaram BNP Paribas liquid plus fund super inst plan dividend                 -            10              -    8,436,818             -           86
   Tata Floater Fund Dividend                                                     -            10              -   15,263,137             -          154
    Templeton India Ultra Short Bond Fund Inst Plan Dividend                      -            10              -   50,182,446             -          503
   UTI Liquid plus fund Inst plan dividend                                        -         1,000              -    1,317,839             -        1,319
   Birla Sunlife interval income inst quarterly S2 Inst Dividend                  -            10              -   51,276,782             -          513
   Birla Sunlife interval income inst quarterly S3 Inst Dividend                  -            10              -   50,339,408             -          503
   Birla Sunlife interval income inst quarterly S8 Inst Dividend                  -            10              -   40,381,501             -          404
   HSBC Interval Fund Plan 1 Inst Dividend                                        -            10              -   20,141,904             -          201
   JM interval fund quarterly plan 3 Inst Dividend                                -            10              -   18,169,199             -          182
   JM interval fund quarterly plan 6 Inst Dividend                                -            10              -   20,127,180             -          201
   Kotak quarterly interval plan series 3 dividend                                -            10              -   19,995,601             -          200
   Kotak quarterly interval plan series 4 dividend                                -            10              -   30,124,433             -          301
   Kotak quarterly interval plan series 5 dividend                                -            10              -   59,725,819             -          597
   Lotus India FMP 3 Month Series 22 dividend                                     -            10              -   25,329,353             -          253
   Lotus India FMP 3 Month Series 23 dividend                                     -            10              -   15,140,031             -          151
   Standard Chartered fixed maturity Plan Quarterly Series 25 Dividend            -            10              -   35,303,009             -          353
    Sundaram BNP Paribas interval fund quarterly plan c Dividend                  -            10              -   24,993,752             -          250
    Sundaram BNP Paribas FTP 90 days Series 3 inst Dividend                       -            10              -   15,000,000             -          150
   Tata Fixed horizon fund series 17 scheme Dividend                              -            10              -   50,373,888             -          504
                                                                                                                                      9,272       10,946
   Total Investment                                                                                                                  27,907       48,656


29) FOLLOWING SHORT TERM INVESTMENTS WERE PURCHASED AND REDEEMED / SOLD DURING THE YEAR:
    Name of the Company / Mutual Fund
                                                                         Face Value                                  Purchase Cost Sale / Redemption
                                                                                                                                             Proceeds

   Units of Mutual Funds                                                                             145,703               153,477               153,537
                                                                                                     145,703               153,477               153,537
   Previous Year:                                                                                    145,725               150,805               150,852




                                                                       Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                             117
                              30)   PURSUANT TO CLAUSE IX(B) OF SECTION 227 (4A) OF THE COMPANIES ACT, 1956,THE DETAILS OF DISPUTED DUES ARE AS FOLLOWS:




 118
                                    Name of the Statute                  Nature of       Amount (Rs.in Millions)       Amount deposited under          Period to which the       Forum where dispute is pending
                                                                         the Dues                                        protest (Rs.in Millions)      amount relates

                                    Income Tax Act, 1961                 Income Tax                           6                               20       1992-93 A.Y               Income Tax Appleant Tribunal (ITAT) & High Court
                                                                         Interest                            15
                                                                         Income Tax                          16                               18       1994-95 A.Y               ITAT & High Court
                                                                         Interest                             2
                                                                         Income Tax                         242                              725       1995-96 A.Y.              ITAT & High Court
                                                                         Interest                           483
                                                                                                                                                                                                                                     SCHEDULE

                                                                         Income Tax                         123                              123       1996-97 A.Y.              ITAT & High Court
                                                                         Interest                             -
                                                                         Income Tax                           -                               25       1997-98 A.Y.              ITAT & High Court
                                                                         Income Tax                         177                              136       1998-99 A.Y.              ITAT & High Court
                                                                         Interest                             7
                                                                         Income Tax                           -                                4       1999-2000 A.Y.            High Court
                                                                         Interest                             -
                                                                         Income Tax                           2                               21       2000-2001 A.Y.            High Court
                                                                         Interest                             -
                                                                         Income Tax                           -                                0       2002-2003 A.Y.            ITAT
                                                                         Interest                             -
                                                                         Income Tax                       1,093                            1,151       2003-04 A.Y.              Commissioner of Income Tax (Appeals) [CIT(A)]




MARUTI SUZUKI INDIA LIMITED
                                                                         Interest                           433
                                                                         Income Tax                         348                              493       2004-05 A.Y.              High Court
                                                                         Interest                           145
                                                                         Income Tax                       1,495                            1,083       2005-06 A.Y.              CIT (A) and High Court
                                                                         Interest                           684
                                                                         Total                            5,271                            3,799
                                    Wealth Tax Act, 1957                 Wealth Tax                           1                                1       1998-99 A.Y.              Appeal is pending before High Court
                                                                         Total                                1                                1
                                    Haryana General Sales Tax Act        Interest                             1                                -       1984-85 to 1985-86 A.Y.   Assessing Authority , Gurgaon
                                                                         Sales Tax                            2                                -       1988-89 A.Y.              Assessing Authority , Gurgaon
                                                                         TOTAL                                3                                -
                                    Delhi Sales Tax Act                  Sales Tax                           47                                2       A.Y. 1988-89 to 1991-92   Additional Commissioner, Delhi
                                                                         TOTAL                               47                                2
                                    The Central Excise Act, 1944
                                                                         Excise Duty                        127                               20       Apr-97 to Mar-02          High court of Haryana & Punjab
                                                                         Excise Duty                         61                                -       Jul 01 to Jun. 07         Customs, Excise & Service Tax Appellate Tribunal




Annual Report 2008 - 09
                                                                         Interest                            39
                                                                         Penalty                             47
                                                                         Excise Duty                        411                                 -      June 88 to June 93        High Court of Delhi.
                                                                         Penalty                            100
                                                                         Excise duty                         17                                3       Aug96 to Mar01            Supreme Court of India.
                                                                         Excise duty                          7                                        March 03 to March 05      Customs, Excise & Service Tax Appellate Tribunal
                                                                         Penalty                              7
                                                                         Excise duty                         72                                        Mar99 to Mar00            Supreme Court of India.
                                                                         Excise duty                         46                                        Apr-00 to Mar-01          Supreme Court of India.
                                                                         Excise Duty                         85                               10       Apr 01 to March 03        Supreme Court of India.
                                                                         Excise duty                         72                                        Aug-01 to Jul-02          Supreme Court of India
                                                                         Penalty                             10
                                                                         Excise duty                          6                                        Apr-86 to Feb-87          High Court of Delhi.
                                                                         Excise duty                         15                               15       Jan-03 to Apr-04          Supreme Court of India
                                                                         Excise duty                          5                                        Dec 99-Aug 2004           Customs, Excise & Service Tax Appellate Tribunal.
                                                                         Penalty                              5
                                                                         Interest                             5
                                                                         Excise duty                          4                                        Aug95-Aug00               High court of Haryana & Punjab
                                                                         Penalty                              1
                                                                         Excise duty                          8                                        Aug 00-Feb 02             High court of Haryana & Punjab
                                                                         Penalty                              2
                                                                         Excise duty                         32                                        Oct.06 to Sep.07          Customs, Excise & Service Tax Appellate Tribunal
                                                                         Penalty                              4
                                                                         Interest                             9
                                                                         Excise duty                        325                                        Mar.05 to Jan.08          Customs, Excise & Service Tax Appellate Tribunal
                                                                         Penalty                             17
                                                                         Interest                           113
                                                                         Excise duty                         92                                        Aug 01 to Dec 03          Customs, Excise & Service Tax Appellate Tribunal
                                                                         Penalty                             18                                        Apr.00 to Mar.01          Supreme Court of India
                                                                         Excise duty                          4                                1       Feb.03                    Customs, Excise & Service Tax Appellate Tribunal
                                                                         Penalty                              2                                        Apr.96 to Mar.00          High Court of Punjab & Haryana
                                                                         Excise duty                          2                                        Nov.06 to Jul.07          Commissioner (A)
                                                                         Penalty                              2
                                                                         Excise duty                          1                                1       May.89 to Mar.92          High Court of Delhi.
                                                                         Penalty                              1                                1
                                                                         Total                            1,774                               51
                                    The Finance Act, 1994                Service Tax                          5                                        Jul.03 to Aug.04          Commissioner (A)
                                                                         Penalty                              5
                                                                         Inerest                              3
                                                                         Service Tax                        238                                        Jul.97 to Mar.02          Customs, Excise & Service Tax Appellate Tribunal
                                                                         Service Tax                        119                                        Dec.03 to 09th Sep.04     Customs, Excise & Service Tax Appellate Tribunal
                                                                         TOTAL                              370                                -
                                    Customs Act, 1962                    Customs duty                        22                               22       Feb-03 to August03        Customs, Excise & Service Tax Appellate Tribunal.
                                                                         Interest                             5
                                                                         TOTAL                               27                               22
                                                                         GRAND TOTAL                     11,834                            4,810
                                                                                                                                                                                                                                                Compiled by : Religare Technova Global Solutions Limited
                                                                     Compiled by : Religare Technova Global Solutions Limited




                                                                                                                   Quest Unlimited
SCHEDULE


31) STATEMENT ON ASSETS, LIABILITIES, INCOME & EXPENSES OF JOINT VENTURES
    Details of the Company's share in the Joint Venture Assets, Liabilities, Income & Expenses as required by Accounting Standard 27
    "Financial Reporting of Interest in Joint Venture" is as indicated below.

   Sr. No.                               Name of                                       % Ownership                     Country of
                                         Company                                           Interest                 Incorporation

   1                                     J.J Impex (Delhi) Private Limited                       49.13                         India
   2                                     Mark Exhaust Systems Limited                            44.37                         India
   3                                     Bellsonica Auto Components India Limited                30.00                         India
   4                                     FMI Automotive India Limited                            49.00                         India
                                                                                                                    (Rs. In Million)
                                                                                             2008-09                       2007-08
   Detail of Assets
   Fixed Assets - Gross Block                                                                   1,796                           707
   Accumulated Depreciation                                                                       379                           280
   Net Block                                                                                    1,417                           427
   Capital Work-in-Progress                                                                        20                           383
   Investments                                                                                      0                             0
   Inventories                                                                                    195                           108
   Sundry Debtors                                                                                 335                           115
   Cash and Bank Balances                                                                         101                           554
   Other Current Assets                                                                             5                             7
   Loans and Advances                                                                             210                            92
   Deferred Tax Assets                                                                              3                             2

   Detail of Liabilities
   Secured Loans                                                                                  118                           125
   Unsecured Loans                                                                                481                           268
   Current Liabilities                                                                            934                           331
   Provisions                                                                                       3                             4
   Deferred Tax Liabilities                                                                        49                            45

   Detail of Income
   Sales(Net)                                                                                   1,997                         1,605
   Income from services                                                                            87                            73
   Other income                                                                                    36                            35

   Detail of Expenses
   Consumption of Raw Material and Components                                                   1,676                         1,349
   Purchase of Traded Goods                                                                        68                            50
   Consumption of Stores                                                                             4                            0
   Employees Remuneration and Benefits                                                            102                            81
   Manufacturing Administrative and Other Expenses                                                334                           152
   Selling and Distribution Expenses                                                               12                            11
   Financial Expenses                                                                              35                            29
   Depreciation                                                                                    99                            46
   (Increase) / Decrease to Work in progress and Finished Goods                                    (9)                            7
   Tax Expense Current                                                                               8                            7
   Tax Expense Deferred                                                                              4                            7




                                                        Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                      119
                                                                                    Compiled by : Religare Technova Global Solutions Limited




SCHEDULE


                                                                                                                           (Rs. in Million)
                                                                                               2008-09                            2007-08
   Details of Contingent Liabilities
   Claims against the Company lodged by various parties                                              3                                   3
   Capital commitments                                                                               4                                 155
   Outstanding commitments under letter of credit                                                   46                                  17


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




   ANUPAM DHAWAN                                          SHINZO NAKANISHI                         S. OISHI
   Membership Number - F 084451                           Managing Director & CEO                  Director
   Partner
   For and on behalf of
   PRICE WATERHOUSE
   Chartered Accountants                                  AJAY SETH                                S. RAVI AIYAR
   New Delhi                                              Chief Financial Officer                  Company Secretary
   April 24, 2009                                                                                  & Chief Legal Officer




120   MARUTI SUZUKI INDIA LIMITED     Annual Report 2008 - 09
                                                           Compiled by : Religare Technova Global Solutions Limited




                                                                                                         Quest Unlimited
BALANCE SHEET ABSTRACT AND
COMPANY'S GENERAL BUSINESS PROFILE

 I.     Registration Details
        Registration No.                                                11,375 of 1980-81                State Code 55
        Balance Sheet Date                                                      31-03-09

 II.    Capital Raised During the year
        (Amount in Rupees Million)                                            Public Issue                   Right Issue
                                                                                        Nil                           Nil
                                                                              Bonus Issue            Private Placement
                                                                                        Nil                           Nil

 III.   Position of Mobilisation and Deployment of Funds
        (Amount in Rupees Million)                                        Total Liabilities               Total Assets
                                                                                  101,989                     101,989
        Sources of Funds                                                  Paid-up Capital            Reserve & Surplus
                                                                                    1,445                       92,004
                                                                           Secured Loans             Unsecured Loans
                                                                                          1                      6,988
        Application of Funds
                                                                         Net Fixed Assets                  Investments
                                                                                  49,321                         31,733
                                                                       Net Current Assets            Misc. Expenditure
                                                                                  20,935                              -
                                                                     Accumulated Losses
                                                                                      Nil

 IV.    Performance of Company
        (Amount in Rupees Million)                                               Turnover            Total Expenditure
                                                                                  230,852                       197,780
                                                                         Profit Before Tax              Profit After Tax
                                                                                   16,758                        12,187
                                                                   Earning per share in Rs.              Dividend rate
                                                                         (Face Value Rs.5)                         70%
                                                                                    42.18

 V.     Generic Name of Principal Product of Company
        (As per monetary terms)
        Item Code No.(ITC Code)                                                                               8703.00
        Product Description                                                                                 Motor Cars




                                               Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                     121
                                                                                                                Compiled by : Religare Technova Global Solutions Limited




  STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956,
  RELATING TO SUBSIDIARY COMPANIES
  Name of the Subsidiary Company                           Maruti              Maruti          True Value           Maruti              Maruti                Maruti               Maruti
                                                         Insurance           Insurance         Solutions          Insurance           Insurance             Insurance            Insurance
                                                        Distribution          Business          Limited            Agencies            Agencies              Agencies             Logistics
                                                          Services            Agency                              Solutions            Network               Services             Limited
                                                          Limited             Limited                               Limited             Limited              Limited

  The financial year of the subsidiary                 31st March 2009     31st March 2009   31st March 2009    31st March 2009    31st March 2009        31st March 2009    31st March 2009
  company ended on
  Number of shares in the subsidiary company               150,000            150,000            50,000             150,000             150,000              150,000               150,000
   held by Maruti Suzuki India Limited
  at the above date
  Extent of Holding                                         100%               100%               100%               100%                100%                 100%                  100%
  The net aggregate of profit/(loss)
  of the subsidiary company so far as
  these concern the members of
  Maruti Suzuki India Limited:
  i)    dealt with in the accounts of
        Maruti Suzuki India Limited amounted to:
        a)    For subsidiary's financial year                Nil                 Nil               Nil                Nil                  Nil                  Nil                    Nil
              ended on March 31st,2009
        b)    For previous financial years                   Nil                 Nil               Nil                Nil                  Nil                  Nil                    Nil
              of the subsidiary since it become
              subsidiary of
              Maruti Suzuki India Limited
  ii)   not dealt with in the accounts of
        Maruti Suzuki India Limited amounted to:
        a)    For subsidiary's financial year           Rs. 27,364,690     Rs. 193,415,391    Rs. (-) 249,546    Rs. 38,512,125      Rs. 56,131,460        Rs.11,407,721        Rs. 19,773,503
              ended on March 31st, 2009
        b)    For previous financial years              Rs. 81,711,932     Rs. 507,311,375    Rs.2,093,550       Rs. 76,144,526     Rs 104,679,801         Rs. 1,186,647          Rs. 34,801
              of the subsidiary since it become
              subsidiary of
              Maruti Suzuki India Limited




             New Delhi                     SHINZO NAKANISHI                       S. OISHI                            AJAY SETH                                S. RAVI AIYAR
             April 24, 2009                Managing Director & CEO                Director                            Chief Financial Officer                  Company Secretary
                                                                                                                                                               & Chief Legal Officer




                                            Directors'
  FINANCIAL STATEMENT OF SUBSIDIARY COMPANIES 2008-09                                                                                                                  Report
                                                                                                                                                                           (Amount in Rs)

  No Particulars                                       Maruti              Maruti                Maruti               Maruti                Maruti           True Value              Maruti
                                                    Insurance          Insurance              Insurance            Insurance            Insurance             Solutions           Insurance
                                                     Business        Distribution               Agency               Agency                Agency                   Ltd.            Agency
                                                      Agency             Services              Network             Solutions              Services                                 Logistics
                                                          Ltd.               Ltd.                   Ltd.                 Ltd.                 Ltd.                                      Ltd.
  1    Capital                                       1,500,000             1,500,000           1,500,000             1,500,000           1,500,000                500,000          1,500,000
  2    Reserves & Surpluses                        700,726,766           109,076,622         160,811,261         114,657,394           12,594,368              1,844,005 19,808,304
  3    Total Assets                                702,226,766           110,576,622         162,311,261         116,157,394           14,094,368              2,344,005 21,308,304
  4    Total Liabilities                           702,226,766           110,576,622         162,311,261         116,157,394           14,094,368              2,344,005 21,308,304
  5    Investments                                 577,526,132            13,504,260          46,195,275           12,503,043                         -                     - 10,012,643
  6    Turnover Income                             614,270,205            86,015,813         201,002,986         130,544,371           44,267,510                           - 76,718,976
  7    Profit Before Tax                           273,330,369            38,571,834          82,780,661           56,575,125          17,407,721               (249,546) 29,973,503
  8    Tax                                          82,764,690            11,500,000          26,800,000           18,200,000            6,000,000                          - 10,200,000
  9    Prior Period Item                            (2,849,712)            (292,856)           (150,799)             (137,743)                        -                     -                    -
  10 Profit After Tax                              193,415,391            27,364,690          56,131,460           38,512,868          11,407,721               (249,546) 19,773,503




122   MARUTI SUZUKI INDIA LIMITED                     Annual Report 2008 - 09
                                                                             Compiled by : Religare Technova Global Solutions Limited




                                                                                                                                  Quest Unlimited
AUDITORS' REPORT


TO THE BOARD OF DIRECTORS OF MARUTI SUZUKI INDIA LIMITED
1. We have audited the attached consolidated balance sheet of Maruti Suzuki India Limited and its subsidiaries, joint ventures and
   associates (The Group) as at 31st March, 2009, the consolidated profit and loss account for the year ended on that date and the
   consolidated cash flow statement for the year ended on that date, annexed thereto, which we have signed under reference to this report.
   These consolidated financial statements are the responsibility of Company's management. Our responsibility is to express an opinion on
   these consolidated financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and
   perform the audit to obtain reasonable assurance about whether the financial statements are prepared, in all material respects, in
   accordance with an identified financial reporting framework and are free of material misstatement. An audit includes examining, on a test
   basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
   principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We
   believe that our audit provides a reasonable basis for our opinion.
3. We did not audit the financial statements of the subsidiaries, joint ventures and associate companies for the year ended March 31, 2009.
   The financial statements of the subsidiaries and joint ventures reflect total assets of Rs 1,168 million and Rs 3,502 million, respectively as at
   March 31, 2009, total revenue of Rs.1,153 million and Rs. 4,805 million respectively, and net cash flows from operating activities of Rs. 545
   million and Rs. (784) million respectively, for the year ended on that date. The Financial Statements of associates reflect net Loss after tax
   of Rs 311 million for the year ended March 31, 2009.These financial statements have been audited by other auditors whose reports have
   been furnished to us, and our opinion, in so far as it relates to the amounts included in respect of these subsidiaries, joint ventures and
   associates, is based solely on the report of the other auditors. Attention is invited to Note 8 (a) and (b) of Notes to accounts (Schedule 23)
   regarding certain associates and a joint venture whose financial statements are unaudited, the impact of which is not likely to be material.
4. We report that the consolidated financial statements have been prepared by the company in accordance with the requirements of
   Accounting Standard 21 - Consolidated Financial Statements, Accounting Standard 23 - Accounting for investments in Associates in
   Consolidated Financial Statements and Accounting Standard 27 Financial Reporting of Interests in Joint Ventures, issued by the Institute
   of Chartered Accountants of India and on the basis of the separate audited financial statements of Maruti Suzuki India Limited and its
   subsidiaries, joint ventures and associates included in the consolidated financial statements.
5. On the basis of the information and explanations given to us and on consideration of the separate audit reports on individual audited
   financial statements of Maruti Suzuki India Limited and its aforesaid subsidiaries, joint ventures and associates, in our opinion, the
   consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India:
    (a) in the case of the consolidated balance sheet, of the consolidated state of affairs of the Group as at 31st March 2009;
    (b) in the case of the consolidated profit and loss account, of the consolidated results of operations of the Group for the year ended on
        that date; and
    (c) in the case of the consolidated cash flow statement, of the consolidated cash flows of the Group for the year ended on that date.




                                                                                                               Anupam Dhawan
                                                                                                               Membership Number - F084451
                                                                                                               Partner
                                                                                                               For and on behalf of
New Delhi                                                                                                      Price Waterhouse
Date: April 24, 2009                                                                                           CHARTERED ACCOUNTANTS




                                                              Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                               123
                                                                             Compiled by : Religare Technova Global Solutions Limited




CONSOLIDATED BALANCE SHEET
AS AT MARCH 31, 2009

                                                                                                                        (Rs. in Million)

                                                                                                       As at                    As at
                                                                  Schedule                         31.03.09                 31.03.08

SOURCES OF FUNDS
SHAREHOLDERS' FUNDS
Capital                                                              1                  1,445                     1,445
Reserves and Surplus                                                 2                 94,208        95,653      84,826        86,271
LOAN FUNDS
Secured Loans                                                        3                    119                         126
Unsecured Loans                                                      4                  7,469         7,588       9,269          9,395
DEFERRED TAX (Note 10 on Schedule 23)
Deferred Tax Liabilities                                                                2,389                     2,742
Deferred Tax Assets                                                                      (791)        1,598       (998)          1,744
Total                                                                                               104,839                    97,410
APPLICATION OF FUNDS
FIXED ASSETS                                                         5
Gross Block                                                                            89,041                    73,561
Less: Accumulated Depreciation                                                       (46,878)                  (40,168)
                                                                                       42,163                    33,393
Capital Work-In-Progress                                             6                  8,674        50,837       7,746        41,139
INVESTMENTS                                                          7                               32,772                    52,649
CURRENT ASSETS, LOANS AND ADVANCES
Inventories                                                          8                  9,213                    10,483
Sundry Debtors                                                       9                  9,599                     6,798
Cash and Bank Balances                                              10                 19,868                     3,901
Other Current Assets                                                11                    988                         338
Loans and Advances                                                  12                 16,548                    10,569
                                                                                       56,216                    32,089
LESS: CURRENT LIABILITIES AND PROVISIONS
Current Liabilities                                                 13                 31,431                    25,037
Provisions                                                          14                  3,555                     3,430
                                                                                       34,986                    28,467
Net Current Assets                                                                                   21,230                      3,622
Total                                                                                               104,839                    97,410
SIGNIFICANT ACCOUNTING POLICIES                                     22
NOTES TO ACCOUNTS                                                   23

This is the Consolidated Balance Sheet referred to
in our report of even date.


ANUPAM DHAWAN                                                            SHINZO NAKANISHI                  S. OISHI
Membership Number - F 084451                                             Managing Director & CEO           Director
Partner
For and on behalf of
PRICE WATERHOUSE                                                         AJAY SETH                         S. RAVI AIYAR
Chartered Accountants                                                    Chief Financial Officer           Company Secretary
New Delhi                                                                                                  & Chief Legal Officer
April 24, 2009


124     MARUTI SUZUKI INDIA LIMITED     Annual Report 2008 - 09
                                                                      Compiled by : Religare Technova Global Solutions Limited




                                                                                                                      Quest Unlimited
CONSOLIDATED PROFIT & LOSS ACCOUNT
FOR THE YEAR ENDED MARCH 31, 2009

                                                                                                                         (Rs. in Million)
                                                                                                For the                      For the
                                                                                            year ended                   year ended
                                                                 Schedule                     31.03.09                     31.03.08

INCOME
Gross Sales                                                         15                          233,076                        211,333
less: Excise Duty                                                                                27,497                         31,125
Net Sales                                                                                       205,579                        180,208
Income from Services [Net of expenses Rs 153 million                                              1,059                            833
(Previous year Rs 208 million)]
Other Income                                                        16                           11,173                          9,363
Total                                                                                           217,811                        190,404
EXPENDITURE
Consumption of Raw Materials and Components
(Note 4 on Schedule 23)                                                                         152,274                        131,694
[Share of Joint Ventures Rs 1,676 million (Previous
Year Rs 1,349 million)]
Purchase of Traded Goods                                                                              7,323                       7,821
[Share of Joint Ventures Rs 68 million (Previous
Year Rs 50 million)]
Consumption of Stores                                                                             1,982                          1,470
Employees Remuneration and Benefits                                 17                            4,813                          3,644
Manufacturing, Administrative and Other Expenses                    18                           16,024                         10,923
Selling and Distribution Expenses                                   19                            8,044                          6,135
Total                                                                                           190,460                        161,687
Less: Vehicles / Dies for Own Use                                                                   223                            198
Add : (Increase) /Decrease in Work-in-Progress and
 Finished Goods & Spares Parts                                      21                            2,810                         (2,909)
Total                                                                                           193,047                        158,580
Earnings before interest , depreciation , tax and
amortizations (EBIDTA)                                                                           24,764                         31,824
Interest                                                            20                              545                            625
Depreciation                                                                                      7,165                          5,727
                                                                                                  7,710                          6,352
Consolidated Profit before Tax                                                                   17,054                         25,472
Less : Tax Expense - Current Tax                                                                  4,754                          7,657
- Deferred Tax (Note 10 on Schedule 23 )                                                          (114)                             32
- Fringe Benefit Tax                                                                                  97                           100
- Previous Years                                                                                       -                            89
Consoliated Profit after Tax                                                                     12,317                         17,594
Share of Profit in respect of Investment in Associates                                              (43)                           305
Profit for the year                                                                              12,274                         17,899
Add: Brought forward from previous year's account                                                72,338                         57,863
Profit available for appropriation                                                               84,612                         75,762
Less: Appropriation :
General Reserve                                                                                   1,219                           1,731
Proposed Dividend                                                                                 1,011                           1,445
Corporate Dividend Tax                                                                              172                             248
Balance carried forward to Balance Sheet                                                         82,210                          72,338
Basic/Diluted Earnings Per Share (in Rupees)
(Note 9 on Schedule 23)                                                                               42.48                       61.95
SIGNIFICANT ACCOUNTING POLICIES                                     22
NOTES TO ACCOUNTS                                                   23

This is the Consolidated Balance Sheet referred to
                         Profit and Loss Account referred to
in our report of even date.


ANUPAM DHAWAN                                                               SHINZO NAKANISHI                  S. OISHI
Membership Number - F 084451                                                Managing Director & CEO           Director
Partner
For and on behalf of
PRICE WATERHOUSE                                                            AJAY SETH                         S. RAVI AIYAR
Chartered Accountants                                                       Chief Financial Officer           Company Secretary
New Delhi                                                                                                     & Chief Legal Officer
April 24, 2009


                                                          Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                         125
                                                                        Compiled by : Religare Technova Global Solutions Limited




CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH, 2009

                                                                                                       (Rs. in Million)
                                                                                        For the            For the
                                                                                    year ended         year ended
                                                                                    31.03.2009         31.03.2008

A. Cash flow from Operating Activities:
      Net Profit before Tax                                                             17,054                25,472
      Adjustments for:
      Depreciation                                                                       7,165                  5,727
      Interest Expense                                                                     545                    625
      Interest Income                                                                   (2,454)               (1,413)
      Dividend Income                                                                   (1,478)               (1,676)
      Share of Profit in respect of Investment in Associates                               (43)                   305
      Net Loss on sale / discarding of Fixed Assets                                        125                     23
      Profit on sale of Investments                                                     (2,157)                 (898)
      Provision for Doubtful Debts and Advances                                             50                       -
      Provisions no longer required written back                                          (379)                   858
      Unrealised Foreign Exchange (Gain)/ Loss                                            (610)                   443
      Operating Profit before Working Capital changes                                   17,818                29,466
      Adjustments for changes in Working Capital:
      - (Increase)/Decrease in Sundry Debtors                                           (2,801)                   969
      - (Increase)/Decrease in Other Current Assets, Loans & Advances                   (6,221)               (1,311)
      - (Increase)/Decrease in Inventories                                               1,270                (3,360)
      - Increase/(Decrease) in Current Liabilities and Provisions                        7,195                  2,106
      Cash generated from Operating Activities                                          17,261                27,870
      - Taxes (Paid) (Net of Tax Deducted at Source)                                    (4,672)               (8,812)
      Net Cash from Operating Activities                                                12,589                19,058
B. Cash flow from Investing Activities:
      Purchase of Fixed assets                                                         (17,060)             (17,430)
      Sale of Fixed Assets                                                                  71                     71
      Sale of Investments                                                              192,372               170,123
      Purchase of Investments                                                         (170,338)            (186,754)
      Interest received                                                                  2,046                  1,491
      Dividend received                                                                  1,478                  1,676
      Net Cash from Investing Activities                                                 8,569              (30,823)




126     MARUTI SUZUKI INDIA LIMITED          Annual Report 2008 - 09
                                                                       Compiled by : Religare Technova Global Solutions Limited




                                                                                                                       Quest Unlimited
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH, 2009

                                                                                                                             (Rs. in Million)
                                                                                                   For the                       For the
                                                                                               year ended                    year ended
                                                                                                  31.03.09                     31.03.08

C. Cash flow from Financing Activities:
   Proceeds from Short term borrowings                                                                        -                     4,392
   Repayment of Short term borrowings                                                                (3,133)                       (1,031)
   Proceeds from Long term borrowings                                                                         -                           -
   Repayment of Long term borrowings                                                                          -                           -
   Interest paid                                                                                          (614)                      (770)
   Dividend paid                                                                                     (1,444)                       (1,299)
   Net Cash from Financing Activities                                                                (5,191)                        1,292
   Net Increase/(Decrease) in Cash & Cash Equivalents                                                15,967                      (10,473)
   Cash and Cash Equivalents as at 1st April (Opening Balance)                                            3,901                    14,374
   Cash and Cash Equivalents as at 31st March (Closing Balance)                                      19,868                         3,901
   Cash and Cash Equivalents comprise                                                                19,868                         3,901
   Cash & Cheques in hand                                                                                 2,167                     1,713
   Balance with Scheduled Banks in Current Accounts                                                        352                      2,173
   Balance with Scheduled Banks in Deposit Accounts                                                  17,349                             15

Notes:
1. The Consolidated Cash Flow Statement has been prepared under the indirect method as set out in Accounting Standard -3 on
   "Cash Flow Statement" notified Under Section 211(3C) of the Companies Act, 1956.
2. Cash and Cash Equivalent includes Rs 4 Million (Previous Year Rs 3 Million) in respect of unclaimed dividend, the balance of which
   is not available to the Company.
3. Figures in bracket represents cash outflow.




This is the Consolidated Cash Flow Statement referred to
in our report of even date.


ANUPAM DHAWAN                                                                   SHINZO NAKANISHI                  S. OISHI
Membership Number - F 084451                                                    Managing Director & CEO           Director
Partner
For and on behalf of
PRICE WATERHOUSE                                                                AJAY SETH                         S. RAVI AIYAR
Chartered Accountants                                                           Chief Financial Officer           Company Secretary
New Delhi                                                                                                         & Chief Legal Officer
April 24, 2009




                                                           Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                          127
                                                                                        Compiled by : Religare Technova Global Solutions Limited




SCHEDULE

                                                                                                                            (Rs. in Million)
                                                                                                               As at               As at
                                                                                                           31.03.09            31.03.08
SCHEDULE 1 - SHARE CAPITAL
Authorised Capital
744,000,000 Equity Shares of Rs. 5 each (Previous year                                                        3,720                  3,720
744,000,000 equity shares of Rs. 5 each)
ISSUED, SUBSCRIBED AND PAID UP CAPITAL                                                                        1,445                  1,445
288,910,060 Equity Shares of Rs. 5 each (Previous year 288,910,060 equity shares
of Rs. 5 each) fully paid up
Of the above -
- 8,840,000 Equity Shares of Rs. 5 each (Previous year 8,840,000 equity
shares of Rs. 5 each) were issued for consideration other than cash.
- 156,618,440 Equity Shares of Rs. 5 each (Previous year 156,618,440 equity shares of Rs. 5
each) are held by Suzuki Motor Corporation, the Holding Company and its nominees
                                                                                                              1,445                  1,445




                                                                       Balance as at           Additions     Transfer /    Balance as at
                                                                      1st April, 2008         during the   Adjustment       31st March
                                                                                                    Year        during            2009
                                                                                                              the year

SCHEDULE 2 - RESERVES AND SURPLUS
Capital Reserve on consolidation (includes Joint                                  31                   -               -                31
Venture share of Rs. 3 Million, Previous Year Rs. 3 million)
Share Premium Account (Includes Joint Venture Share of Rs. 5 Million           4,246                   -               -            4,246
Previous Year Rs. 5 Million)
Hedge Reserve Account (Note 12 on Schedule 23)                                     0             (1,709)               -          (1,709)
General Reserve                                                                8,211               1,219               -            9,430
Balance as per Profit and Loss Account (Includes Joint
Venture share of Rs (187) Million , Previous Year
Rs.27 Million)                                                               72,338               9,872                -          82,210
                                                                             84,826               9,382                -          94,208



                                                                                                               As at               As at
                                                                                                           31.03.09            31.03.08
SCHEDULE 3 - SECURED LOANS
LONG TERM LOANS
FROM OTHERS
Loan from Sundaram Finance Limited                                                                                 -                     1
(Secured against vehicles taken on finance lease)
SHORT TERM LOANS
FROM OTHERS
Loan from Sundaram Finance Limited                                                                                1                       -
(Secured against vehicles taken on finance lease)
(Payable within 1 Year Rs. 0 million - Previous year Rs. 0 million)
                                                                                                                  1                     1
Share in Joint Venture                                                                                          118                   125
                                                                                                                119                   126


128    MARUTI SUZUKI INDIA LIMITED         Annual Report 2008 - 09
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                                                                                                                                            Quest Unlimited
SCHEDULE

                                                                                                                                                (Rs. in Million)
SCHEDULE 4 - UNSECURED LOANS
                                                                                                                    As at                                 As at
                                                                                                                31.03.09                              31.03.08
SHORT TERM LOANS - FROM BANKS
Export Credit                                                                                                          660                               3,999
LONG TERM LOANS - FROM BANKS
Foreign Currency Loans *                                                                                            6,328                                5,002
Loan from Japan Bank for International Cooperation and Bank of Tokyo Mitsubishi
                                                                                                                    6,988                                9,001
Share in Joint Venture                                                                                                481                                  268
                                                                                                                    7,469                                9,269
*(Guaranteed by Suzuki Motor Corporation, Japan, the Holding Company)
(Payable within one year Rs. 1582 million (Previous Year Rs. Nil))



SCHEDULE 5 - FIXED ASSETS
(Note 11 on Schedule 23)
Particulars                                        Gross Block                                Accumulated Depreciation                    Net Block
                                     AS AT  Additions/ Deductions/           AS AT        AS AT    For the   Deductions/         AS AT       AS AT        AS AT
                                  01.04.08 Adjustments Adjustments        31.03.09     01.04.08      year    Adjustments      31.03.09    31.03.09     01.04.08
Freehold land (Note 1 & 4)           1,283            -              -       1,283             -         -                -          -       1,283        1,283
Leasehold land                         589            -              -         589             5         -                -          5         584          584
Building                             5,581        1,184            (8)       6,757           996       188              (3)      1,181       5,576        4,585
Plant and Machinery (Note 2)        63,904       14,434          (440)      77,898        37,974     6,650            (360)     44,264      33,634       25,930
Electronic Data Processing
Equipment                            1,238          187            (57)      1,368          872        246             (56)       1,062        306         366
Furniture , Fixtures and
Office Appliances                     427           159             (1)        585          178         31              (1)         208        377         249
Vehicles:
- Owned                               536           168           (146)        558          141         50             (36)        155         403         395
- Leased                                3             -               -          3            2          1                -          3           -           1
Total                              73,561        16,132          (652)      89,041       40,168      7,166           (456)      46,878      42,163      33,393
Previous Year Figures              62,102        12,218           (759)     73,561       35,106      5,727            (665)     40,168      33,393
Share in Joint Venture (Note 3)       707         1,089               -      1,796          280         99                -        379       1,417
Previous Year Figures                 661            46               -        707          235         46              (1)        280         427

(1) Land costing Rs. 4 million (Previous year Rs. 4 million) is not yet registered in the name of the Maruti Suzuki India Ltd. A part of this land has been made
    available to group companies.
(2) Plant and Machinery includes pro-rata cost amounting to Rs. 374 million (Previous year Rs. 374 million) of a Gas Turbine jointly owned by the group
    companies and other companies.
(3) The Joint Ventures' share is included in the above schedule.
(4) 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.



                                                                                                                    As at                              As at
                                                                                                                31.03.09                           31.03.08

SCHEDULE 6 - CAPITAL WORK-IN-PROGRESS
Plant and Machinery                                                                                                 5,851                               3,653
Civil Work-in-progress                                                                                                873                                 576
Capital Advances                                                                                                    1,930                               3,134
                                                                                                                    8,654                               7,363
Share in Joint Venture                                                                                                 20                                 383
                                                                                                                    8,674                               7,746




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SCHEDULE

                                                                                                  (Rs. in Million)
                                                                                      As at                 As at
                                                                                  31.03.09              31.03.08
SCHEDULE 7 - INVESTMENTS
TRADE INVESTMENT:
Long Term:
   Investment in Associates
   [Includes Rs. 28 Million of capital reserves on accquisition                      4,205                 3,580
   of certain Associates (Previous year Rs. 28 million)]
Other Investments:
   Long Term (Unquoted):
   Mutual funds                                                                     18,663                38,123
   Current (Unquoted):
   Mutual funds                                                                      9,904                10,946
                                                                                    32,772                52,649
Share in Joint Venture                                                                   0                     0
                                                                                    32,772                52,649




SCHEDULE 8 - INVENTORIES
Components and Raw Materials
In transit                                                                2,075                 1,053
With vendors                                                                159                  120
At factory                                                                3,286      5,520      2,204       3,377
Stores and Spares
Vehicles                                                                  1,038                  872
Machinery                                                                    31                   20
Consumables                                                                  86                   67
In transit                                                                   34      1,189        25         984
Tools at factory                                                                      152                    147
In transit
Dies and Moulds                                                                          6                      0
Work-in-Progress                                                                      490                    459
Finished Goods                                                                       1,661                  5,408
                                                                                     9,018                 10,375
Share in Joint Venture                                                                195                    108
                                                                                     9,213                 10,483




130    MARUTI SUZUKI INDIA LIMITED       Annual Report 2008 - 09
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                                                                                                           Quest Unlimited
SCHEDULE

                                                                                                               (Rs. in Million)
                                                                                         As at                        As at
                                                                                     31.03.09                     31.03.08

SCHEDULE 9 - SUNDRY DEBTORS
Debts Outstanding for more than six months
Unsecured - Considered Good                                                  1,014                   1,128
           - Considered Doubtful                                               266                     266
                                                                             1,280                   1,394
Less: Provision for Doubtful Debts                                           (266)      1,014        (266)              1,128
Other Debts:
Unsecured - Considered Good                                                             8,250                           5,555
                                                                                        9,264                           6,683
Share in Joint Venture                                                                    335                             115
                                                                                        9,599                           6,798




SCHEDULE 10 - CASH AND BANK BALANCES
Cash in hand                                                                                2                               4
Cheques in hand                                                                         2,164                           1,335
Bank balances with Scheduled Banks in :
Current Accounts                                                                          295                           2,003
Dividend Accounts                                                                           4                               3
Deposit Accounts:                                                                      17,302                               2
                                                                                       19,767                           3,347
Share in Joint Venture                                                                    101                             554
                                                                                       19,868                           3,901




SCHEDULE 11 - OTHER CURRENT ASSETS
Interest accrued on Deposits, Loans and Advances
Secured      - Considered Good                                                  37                        40
             - Considered Doubtful                                               6                         6
                                                                                43                        46
Less: Provision for Doubtful Interest                                            6         37              6              40
Unsecured - Considered Good                                                    530                       119
             - Considered Doubtful                                               1                         1
                                                                               531                       120
Less: Provision for Doubtful Interest                                            1        530              1             119
Claims      - Unsecured
            - Considered Good                                                  416                       172
            - Considered Doubtful                                               31                        43
                                                                               447                       215
Less: Provision for Doubtful Claims                                             31        416             43             172
                                                                                          983                            331
Share in Joint Venture                                                                      5                              7
                                                                                          988                            338




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SCHEDULE

                                                                                                            (Rs. in Million)
                                                                                            As at                  As at
                                                                                        31.03.09               31.03.08

SCHEDULE 12 - LOANS AND ADVANCES
Loans
Secured  - Considered Good                                                        36                  45
         - Considered Doubtful                                                     8                   9
                                                                                  44                  54
Less: Provision for Doubtful Loans                                                 8          36       9                45
Unsecured - Considered Good
             - to Subsidiary Companies
             - to Others                                                        3,988               1,594
             - Considered Doubtful                                                  1                   1
                                                                                3,989               1,595
Less: Provision for Doubtful Loans                                                  1      3,988        1           1,594
Advances recoverable in cash or in kind or for value to be received:
Unsecured - Considered Good                                                     6,555               2,868
             - Considered Doubtful                                                110                  72
                                                                                6,665               2,940
Less: Provision for Doubtful Advances                                             110      6,555       72           2,868
Deposits - Considered Good unless otherwise stated
Balance with Customs, Port Trust and other
Government Authorities                                                                     5,683                    5,914
Inter Corporate Deposits Considered Doubtful                                     140                 140
Less :Provision for Doubtful Deposits                                            140           -     140                -
Other Deposits                                                                                76                       58
                                                                                          16,338                   10,479
Share in Joint Venture                                                                       210                       92
                                                                                          16,548                   10,571




SCHEDULE 13 - CURRENT LIABILITIES
Sundry Creditors                                                                         25,972                    17,080
Advances from Customers/Dealers                                                           1,504                       737
Book Overdraft                                                                              545                     3,590
Unclaimed Dividend *                                                                          4                         3
Other Liabilities                                                                           823                     1,759
Deposits from Dealers, Contractors and Others                                             1,622                     1,443
Interest Accrued but not due on :
    - Loans                                                                       24                  93
    - Others                                                                       3         27        3               96
                                                                                         30,497                    24,708
Share in Joint Venture                                                                      934                       331
                                                                                         31,431                    25,039
*Not due to be credited to the Investor Education and Protection Fund




132   MARUTI SUZUKI INDIA LIMITED        Annual Report 2008 - 09
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                                                                                                                 Quest Unlimited
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                                                                                                                     (Rs. in Million)
                                                                                                 As at                      As at
                                                                                             31.03.09                   31.03.08

SCHEDULE 14 - PROVISIONS (Note 14 on Schedule 23)
Litigation Related Provisions                                                                     611                          596
Leave Encashment                                                                                  550                          457
Warranty & Product Recall                                                                         432                          253
Proposed Dividend                                                                               1,011                        1,445
Corporate Dividend Tax                                                                            172                          246
Others Provisions                                                                                 195                          273
Taxation (Net of Advance-Tax)                                                                     581                          156
                                                                                                3,552                        3,426
Share in Joint Venture                                                                              3                            4
                                                                                                3,555                        3,430




                                                                                                                     (Rs. in Million)
                                                                                               For the                   For the
                                                                                           year ended                year ended
                                                                                             31.03.09                  31.03.08

SCHEDULE 15 - SALES
Vehicles                                                                                      216,589                     197,990
Spare Parts / Dies and Moulds / Components                                                     14,262                      11,503
                                                                                              230,851                     209,493
Share in Joint Venture                                                                          2,225                       1,840
                                                                                              233,076                     211,333




SCHEDULE 16 - OTHER INCOME
Interest on:
a) Fixed Deposits / Securities (Gross) [Includes Tax Deducted at source of          662                        645
    Rs. 150 million [Previous year Rs. 146 million)]
b) Receivables from Dealers (Gross) [Includes Tax Deducted at source                474                        423
    of Rs. 78 million (Previous year Rs. 35 million)]
c) Advances to Vendors (Gross) [Includes Tax Deducted at source of                  670                        317
    Rs. 132 million (Previous year Rs. 65 million)]
d) Income tax refund                                                                627                         15
d) Others                                                                            21         2,454           13           1,413
Sale of Scrap (Net of Excise)                                                                   1,923                        1,616
Sales Tax Benefit                                                                                  70                          136
Miscellaneous Receipts (Gross) [Tax Deducted at source of Rs. 243 Million
(previous year Rs.223 million)]                                                                 1,466                        1,265
Cash Discount                                                                                     918                          859
Profit on Sale of Investments
    Long Term Investments                                                            849                       849
    Short Term Investments                                                         1,308        2,157           49             898




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SCHEDULE

                                                                                                              (Rs. in Million)
                                                                                            For the                For the
                                                                                        year ended             year ended
                                                                                          31.03.09               31.03.08
SCHEDULE 16 - OTHER INCOME
Dividend:
    Trade Investments - Long Term                                                      41                 31
    Others                                                                          1,437     1,478    1,645          1,676
Provisions/ Liabilities no longer required Written Back                                         379                     858
Recovery of Service Charges                                                          369                346
Less: Repair Cost of Damaged Vehicles                                                 77        292      44             302
Exchange Variation                                                                                -                     305
                                                                                             11,137                   9,328
Share in Joint Venture                                                                           36                      35
                                                                                             11,173                   9,363




 SCHEDULE 17 - EMPLOYEES REMUNERATION AND BENEFITS
Salaries ,Wages ,Allowances and Other Benefits
[Net of Staff cost recovered Rs 73 million (Previous year Rs 64 million)]                     4,166                   3,135
Contribution to Provident and Other Funds                                                       229                     181
Staff Welfare Expenses                                                                          308                     242
Group Insurance                                                                                   8                       5
                                                                                              4,711                   3,563
Share in Joint Venture                                                                          102                      81
                                                                                              4,813                   3,644




 SCHEDULE 18 - MANUFACTURING, ADMINISTRATIVE AND OTHER EXPENSES
Power and Fuel (Net of amount recovered Rs 909 million,                                       1,936                   1,473
- previous year Rs 574 million)
Rent                                                                                           218                       72
Rates, Taxes and Fees                                                                          325                      233
Insurance                                                                                       67                       73
Repairs and Maintenance :
    Plant and Machinery                                                              370                281
    Building                                                                          82                137
    Others                                                                           117        569      90             508
Royalty                                                                                       6,791                   4,952
Tools / Machinery Spares Charged Off                                                            729                     774
Net Loss on Sale/discarding of Fixed Assets                                                     125                      24
Provision for Doubtful Debts, Claims, Loans and Advances                                         50                       -
Exchange Variation                                                                            1,843                       -
Other Miscellaneous Expenses                                                                  3,037                   2,662
                                                                                             15,690                  10,771
Share in Joint Venture                                                                          334                     152
                                                                                             16,024                  10,923




134   MARUTI SUZUKI INDIA LIMITED         Annual Report 2008 - 09
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                                                                                                                 Quest Unlimited
SCHEDULE

                                                                                                                      (Rs. in Million)
                                                                                            For the                       For the
                                                                                        year ended                    year ended
                                                                                          31.03.09                      31.03.08

SCHEDULE 19 - SELLING AND DISTRIBUTION EXPENSES
Advertisement and Sales Promotion                                                             4,638                            4,251
Warranty Claims                                                                                 472                              254
Transportation and Distribution Expenses                                                      2,922                            1,619
                                                                                              8,032                            6,124
Share in Joint Venture                                                                           12                               11
                                                                                              8,044                            6,135




SCHEDULE 20 - INTEREST
Interest
    Fixed:
    Foreign Currency Loans                                                           249                        425
    Debentures                                                                         -        249              21              446
Others                                                                                          261                              150
                                                                                                510                              596
Share in Joint Venture                                                                           35                               29
                                                                                                545                              625




SCHEDULE 21 - (INCREASE)/ DECREASE IN WORK-IN-PROGRESS,
FINISHED GOODS & SPARE PARTS
Work-in-Progress
    Opening Stock                                                                    459                       309
    Less: Closing Stock                                                              489       (30)            459             (150)
Finished Goods
    Opening Stock                                                                   5,408                   2,247
    Less: Closing Stock                                                             1,661                   5,408
                                                                                    3,747                 (3,161)
   Less: Excise Duty on (Increase)/Decrease of Finished Stock                         748     2,999         (446)           (2,715)
Spare Parts-Traded
   Opening Stock                                                                     743                       691
   Less: Closing Stock                                                               893      (150)            742             (51)
                                                                                              2,819                         (2,916)
Share in Joint Venture                                                                           (9)                              7
                                                                                              2,810                         (2,909)




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SCHEDULE


SCHEDULE 22 - SIGNIFICANT ACCOUNTING POLICIES

1) GROUP COMPANIES
   Maruti Suzuki India Limited (Formerly Maruti Udyog Limited) (The Company) has seven wholly owned subsidiaries, four joint venture
   companies and fifteen associate companies (The Group), as given in the following table.

   Sl.No. Name of Company                                           Relationship        Country of            Percentage of ownership
                                                                                      Incorporation        interest as on 31st March 2009
   1        Maruti Insurance Business Agency Limited*               Subsidiary             India                        100.00
   2        Maruti Insurance Distribution Services Limited          Subsidiary             India                        100.00
   3        True Value Solutions Limited                            Subsidiary             India                        100.00
   4        Maruti Insurance Agency Network Limited                 Subsidiary             India                        100.00
   5        Maruti Insurance Agency Solutions Limited               Subsidiary             India                        100.00
   6        Maruti Insurance Agency Services Limited                Subsidary              India                        100.00
   7        Maruti Insurance Logistic Limited                       Subsidary              India                        100.00
   8        J.J Impex (Delhi) Private Limited                       Joint Venture          India                        49.13
   9        Mark Exhaust Systems Limited                            Joint Venture          India                        44.37
   10       Bellsonica Auto Components India Limited                Joint Venture          India                        30.00
   11       FMI Automotive India Limited                            Joint Venture          India                        49.00
   12       Suzuki Powertrain India Limited                         Associate              India                        30.00
   13       Climate Systems India Limited                           Associate              India                        39.00
   14       SKH Metals Limited                                      Associate              India                        48.71
   15       Jay Bharat Maruti Limited                               Associate              India                        29.28
   16       Maruti Countrywide Auto Financial Services Limited      Associate              India                        26.00
   17       Citicorp Maruti Finance Limited                         Associate              India                        26.00
   18       Caparo Maruti Limited                                   Associate              India                         25.00**
   19       Machino Plastics Limited                                Associate              India                        15.35
   20       Bharat Seats Limited                                    Associate              India                        14.81
   21       Krishna Maruti Limited                                  Associate              India                        15.80
   22       Asahi India Glass Limited                               Associate              India                        11.11
   23       Denso India Limited                                     Associate              India                        10.27
   24       Nippon Thermostat (India) Limited                       Associate              India                        10.00
   25       Sona Koyo Steering Systems Limited                      Associate              India                          6.94***
   26       Magneti Marelli Powertrain India Limited                Associate              India                        19.00

   * Formerly known as Maruti Insurance Brokers Limited.
   ** Percentage of ownership has changed from 20.00 % as at 31st March 2008.
   ** * Percentage of ownership has changed from 7.12 % as at 31st March 2008.

2) BASIS FOR PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
   The consolidated financial statements of The Group have been prepared and presented under the historical cost convention on the
   accrual basis of accounting in accordance with the accounting principles generally accepted in India and comply with the mandatory
   Accounting Standards notified under section 211(3C) of the Companies Act, 1956 to the extent applicable.
   Financial statements of the Company and the subsidiaries have been combined on a line-by-line basis by adding together the book
   values of like items of assets, liabilities, income and expenses after eliminating intra-group balances / transactions in full as per
   Accounting Standard 21 on Consolidated Financial Statements.
   Investment in associates (entity over which the company exercises significant influence, which is neither a subsidiary nor a joint venture)
   are accounted for using the equity method as per Accounting Standard 23 on Accounting for Investments in Associates in Consolidated
   Financial Statements.
   Investments in joint venture undertakings over which the company exercises joint control are accounted for using proportionate
   consolidation as per Accounting Standard 27 on Financial Reporting of Interests in Joint Ventures.




136     MARUTI SUZUKI INDIA LIMITED      Annual Report 2008 - 09
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    All unrealized surpluses and deficits on transactions between the group companies are eliminated.
    Accounting policies between group companies are consistent to the extent practicable. Appropriate disclosure is made of significant
    deviations from the company accounting policies, which have not been adjusted.

3) REVENUE RECOGNITION
   Domestic and export sales are recognised on transfer of significant risk and rewards to the customer which takes place on dispatch of
   goods from the factory / stockyard / storage area and port respectively.
   Finance charges on hire purchase business/ lease rental income are recognized on the basis of implicit rate of return on the value of assets
   hired out/leased.
   Agency Commission income from insurance companies and remuneration to dealers are recognised based on the insurance policies
   issued by the dealers.

4) FIXED ASSETS
   Fixed assets (except freehold land which is carried at cost) are carried at cost of acquisition or construction or at manufacturing cost (in
   case of own manufactured assets) in the year of capitalisation less accumulated depreciation.
   Assets acquired under finance lease are capitalized at the lower of their fair value and the present value of minimum lease payments.

5) BORROWING COSTS
   Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised till the
   month in which each asset is put to use as part of the cost of that asset.

6) DEPRECIATION
   a) Fixed assets except leasehold assets viz land and vehicles are depreciated on the straight line method on a pro-rata basis from the
      month in which each asset is put to use.
      Depreciation has been provided at the rates prescribed in Schedule XIV to the Companies Act, 1956 except for certain fixed assets
      where, based on the management's estimate of the useful life of the assets, higher depreciation has been provided on the straight
      line method over the following useful lives:
      Plant and Machinery                             8 -11 Years
      Dies and Jigs                                        4 Years
      Electronic Data Processing Equipments                3 Years
      Depreciation has been provided on Straight Line Method at rate higher than Schedule XIV for some associate companies as follows:
       Assets                                Depreciation rates
      Electrical Fittings                                  3 Years
      Plant & Machinery                               5 -13 Years
      Furniture & Fittings                              5 -7 Years
      Vehicles                                             5 Years
      Electronic Data Processing Equipments             3 -5 Years
      In respect of assets whose useful life has been revised, the unamortised depreciable amount is charged over the revised remaining
      useful life of the assets.
   b) Leasehold assets viz land & Vehicles are amortised over the period of lease.
   c) All assets, the written down value of which at the beginning of the year is Rs. 5,000 or less, are depreciated at the rate of 100%. Assets
      purchased during the year costing Rs 5,000 or less are depreciated at the rate of 100%.

7) GOODWILL
   Goodwill arising on consolidation is charged to profit and loss account.
   INVENTORIES
   a) Inventories are valued at lower of cost, determined on the weighted average basis, and net realisable value.
   b) Tools are written off over a period of three years except for tools valuing Rs. 5,000 or less individually which are charged off to revenue
      in the year of purchase.
   c) Machinery spares (other than those supplied alongwith main plant and machinery, which are capitalized and depreciated
      accordingly) are charged to revenue on consumption except those valuing Rs. 5,000 or less individually, which are charged to
      revenue in the year of purchase.
      In case of certain associates inventory is valued at lower of cost, determined on the first in first out basis, and net realisable value.


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SCHEDULE


8) INVESTMENTS
   Current investments are valued at the lower of cost and fair value. Long-term investments are valued at cost except in case of a permanent
   diminution in their value, in which case necessary provision is made.

9) RESEARCH AND DEVELOPMENT
   Revenue expenditure on research and development is charged against the profit of the year in which it is incurred. Capital expenditure on
   research and development is shown as an addition to fixed assets and depreciated accordingly.

10) FOREIGN CURRENCY TRANSLATIONS AND DERIVATIVE INSTRUMENTS
    a) Foreign currency transactions are recorded at the exchange rates prevailing at the date of the transaction. Exchange differences
       arising on settlement of transactions, are recognised as income or expense in the year in which they arise.
    b) At the balance sheet date, all monetary assets and liabilities denominated in foreign currency are reported at the exchange rates
       prevailing at the balance sheet date by recognizing the exchange difference in profit and loss account. However, the exchange
       difference arising on foreign currency monetary items that qualify and are designated as hedge instrument in a cash flow hedge is
       initially recognized in 'hedge reserve' and subsequently transferred to profit & loss account on occurrence of the underlying hedged
       transaction.
    c) Effective April 1, 2008, the Company adopted Accounting Standard -30, "Financial Instruments: Recognition and Measurement"
       issued by The Institute of Chartered Accountants of India to the extent that the adoption does not contradict with the accounting
       standards notified under Section 211(3C) of the Companies Act, 1956 and other regulatory requirements.
    d) Derivative contracts are fair valued at each reporting date. The Company records the gain or loss on effective hedges, if any, in a
       "Hedge Reserve", until the transaction is complete. On completion, the gain or loss is transferred to the profit and loss account of that
       period. Change in fair value relating to the ineffective portion of the hedges and derivatives not qualifying or not designated as hedge
       is recognized in the profit and loss account in the accounting period in which it arises.
    e) In case of forward foreign exchange contracts where an underlying asset or liability exists at the balance sheet date, the difference
       between the forward rate and the exchange rate at the inception of the contract is recognised as income or expense over the life of the
       contract. Profit or loss arising on cancellation or renewal of a forward contract is recognised as income or expense in the year in which
       such cancellation or renewal is made.
       (Refer Note 12 on Schedule 23)

11) EMPLOYEE BENEFIT COSTS
    The Company has Defined Contribution Plans for post employment benefits namely Provident Fund and Superannuation Fund which are
    recognised by the income tax authorities. These Funds are administered through Trusts and the Company's contributions thereto are
    charged to revenue every year. The Company also maintains an insurance policy to fund a post-employment medical assistance scheme,
    which is a Defined Contribution plan administered by The New India Insurance Company Limited. The Company's contribution to State
    Plans namely Employees' State Insurance Fund and Employees' Pension Scheme are charged to revenue every year.
    The Company has Defined Benefit Plans namely leave encashment/ compensated absence, Gratuity, Interest on Provident Fund and
    Retirement Allowance for employees, the liability for which is determined on the basis of an actuarial valuation at the end of the year. The
    Gratuity Fund is recognised by the income tax authorities and is administered through a Trust.
    Termination benefits are recognised as an expense immediately.
    Gains and losses arising out of actuarial valuations are recognised immediately in the Profit and Loss Account as income or expense.
    In case of certain joint venture and associate companies, contributions towards gratuity are charged to Profit & Loss Account on the basis
    of premium paid to the Life Insurance Corporation of India.

12) CUSTOMS DUTY
    Custom duty available as drawback is initially recognized as purchase cost and is credited to consumption on export of vehicles.

13) GOVERNMENT GRANTS
    Government grants are recognised in the profit and loss account in accordance with the related scheme and in the period in which these
    are accrued.

14) TAXES
    Tax expense for the period, comprising current tax, fringe benefit tax and deferred tax, is included in determining the net profit/(loss) for
    the year.
    Current tax is recognised based on assessable profit computed in accordance with the Income Tax Act and at the prevailing tax rate.


138   MARUTI SUZUKI INDIA LIMITED         Annual Report 2008 - 09
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    Deferred tax is recognized for all the timing differences. Deferred tax assets are carried forward to the extent it is reasonably/ virtually
    certain that future taxable profit will be available against which such deferred tax assets can be realized. Deferred tax assets are reviewed
    at each balance sheet date and written down/ written up to reflect the amount that is reasonably/ virtually certain (as the case may be) to
    be realized.
    Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted at the balance sheet date.

15) DIVIDEND INCOME
    Dividend from investments is recognized when the right to receive the payment is established and when no significant uncertainty as to
    measurability or collectability exits.

16) INTEREST INCOME
    Interest income is recognized on the time basis determined by the amount outstanding and the rate applicable and where no significant
    uncertainty as to measurability or collectability exists.

17) IMPAIRMENT OF ASSETS
    At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication
    exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an
    impairment loss is recognized in the profit and loss account to the extent the carrying amount exceeds the recoverable amount.

18) PROVISIONS AND CONTINGENCIES
    The Company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of
    resources and a reliable estimate can be made of the amount of obligation. A disclosure of contingent liability is made when there is a
    possible obligation or a present obligation that will probably not require outflow of resources or where a reliable estimate of the
    obligation cannot be made.



SCHEDULE 23 - CONSOLIDATED NOTES TO ACCOUNTS
1) Contingent Liabilities:
   a) Claims against the Group disputed and not acknowledged as debts
      i. Sales-tax demands of Rs. 52 million (includes share of Joint Venture Rs. Nil) (Previous year Rs. 54 million, includes share of Joint
           Venture Rs. Nil million). Against this, the Group has deposited a sum of Rs. 2 million under protest (Previous year Rs 2 million).
      ii. Excise duty demands/show-cause notices of Rs. 4,920 million (Previous year Rs.3,208 million). Against this, the Group has
           deposited a sum of Rs. 23 million (Previous year Rs. 27 million) under protest.
      iii. Customs duty demands of Rs. 120 million (Previous year Rs. 118 million). Against this, the Group has deposited a sum of Rs. 22
           million (Previous year Rs. 22 million) under protest.
      iv. Income-tax demands of Rs. 4,486 million (Previous year Rs. 9,918 million). Against this, the Group has deposited a sum of Rs. 3,804
           million under protest (Previous year Rs. 4,745 million).
      v. Service-tax demands of Rs. 1,234 million (Previous Year Rs 253 million).
      vi. Claims against the Group for recovery of Rs 624 million (includes share of Joint Venture Rs. 3 million) (Previous year Rs. 677
           million) (includes share of Joint Venture Rs. 3 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 to Rs. 2 million(Previous year Rs. 2 million).
   c) A guarantee given to HDFC Bank Limited against Non-Fund based facilities granted by the bank to a group company Suzuki
      Powertrain India Limited of Rs. Nil (Previous year Rs. 2,000 million). Against this, the balance outstanding as at the year-end is Rs. Nil
      (Previous year Rs. 194 million).
   d) A guarantee given to HSBC Limited against Non-Fund based facilities granted by the bank to a group company Suzuki Powertrain
      India Limited of Rs. Nil (Previous year Rs. 3,000 million). Against this, the balance outstanding as at the year-end is Rs. Nil (Previous year
      Rs. 1,543 million).
   e) 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 items (b) to (d) represent guarantees given in the normal course of the Company's operations and are not
      expected to result in any loss to the company on the basis of the beneficiaries fulfilling their ordinary commercial obligations.


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2) Outstanding commitments under Letters of Credit established by the Group aggregate to Rs. 2,583 million (includes share of Joint
   Venture Rs. 46 million) (Previous year Rs. 3,344 million) (includes share of Joint Venture Rs. 17 million).

3) Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amounts to
   Rs. 12,715 million (includes share of Joint Venture Rs. 4 million) (Previous year Rs. 14,743 million) (includes share of Joint Venture Rs. 155
   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.9 million (Previous year Rs. 26 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 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 2009, the Company has availed of sales tax benefit amounting to Rs. 1,675 million (Previous year Rs. 1,605 million).

6) The Group 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 the financial terms but contribute significantly in generating
   the demand for the products of the Company. Accordingly segment information has not been disclosed.

7) Differences between accounting policies of the Company and other group companies, the impact of which is not going to be material.
   a) In case of certain associate and joint venture companies, contributions towards gratuity are charged to Profit & Loss Account on the
       basis of premium paid to the Life Insurance Corporation of India.
   b) Deferred Revenue Expenditure of Joint Venture and Associate Companies have been charged to Profit & Loss Account in the year of
       incurrence.
   c) In case of certain associate companies, First In First Out method of inventory valuation is followed.
   d) In case of a joint venture company, fair value (mark to market) of a derivative instrument i.e. an interest rate swap has not been
       computed as at March 31, 2009.
   e) In case of certain associates, written down value method of depreciation is followed.

8) a) The Profit after tax of Denso India Limited, Machino Plastics Limited, Sona Koyo Steering Systems Limited & Asahi India Glass Limited
      has been annualised based on unaudited financial statements of nine months ended 31st December 2008. It is unlikely that the
      audited results would be materially different from annualised results.
   b) The Profit after tax of Climate Systems India Limited, Krishna Maruti Limited, SKH Metals Limited, Suzuki Powertrain India Limited, Jay
      Bharat Maruti Limited, Nippon Thermostat (India) Limited, Magneti Marelli Powertrain India Limited and FMI Automotive India
      Limited has been taken on the basis of unaudited financial statements for financial year ended 31st March 2009. It is unlikely that the
      audited results would be materially different from un audited results.


9) STATEMENT OF EARNING PER SHARE
                                                                                                            2008-09                   2007-08

   Net Profit after tax attributable to shareholders
                                                                                                              12,274                    17,899
   (in Million Rupees)
   Weighted Average Number of Equity Shares Outstanding
   during the year                                                                                     288,910,060                 288,910,060
   Nominal value per share (In Rupees)                                                                        5.00                        5.00
   Basic/Diluted Earnings Per Share (In Rupees)                                                              42.48                       61.95




140   MARUTI SUZUKI INDIA LIMITED         Annual Report 2008 - 09
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                                                                                                                                   Quest Unlimited
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10) DEFERRED TAX
    Major Components of Deferred Tax arising on account of temporary timing differences along with their movement as at March 31, 2009
    are:                                                                                                                 (Rs. in Million)

                                                                                                          Movement During
                                                                                              31.03.08           the year               31.03.09

   Assets
   Provision for Doubtful debts / advances                                                          162                    21                183
   Contingent Provisions                                                                            495                 (311)                184
   Others                                                                                           339                    82                421
                                                                                                    996                 (208)                788
   Share in Joint Ventures                                                                            2                      1                 3
   Total (A)                                                                                        998                 (207)                791
   Liabilities
   Depreciation on Fixed Assets                                                                   1,989                   156              2,145
   Exchange variation on Capital Account                                                            228                 (258)                (30)
   Allowances under Income Tax Act, 1961                                                            468                 (243)                225
   Deferred Revenue Expenditure                                                                      12                   (12)                 0
                                                                                                  2,697                 (357)              2,340
   Share in Joint Ventures                                                                           45                      4                49
   Total (B)                                                                                      2,742                 (353)              2,389
   Net Deferred Tax Liability* (B) - (A)                                                          1,744                 (146)              1,598
   Previous Year                                                                                  1,712                    32              1,744

   * Includes adjustment of Rs. 32 million on account of reclassification of Deffered Tax Liabilities to Provision for Taxation.



11)The Company normally acquires vehicles under Finance Leases with the respective underlying assets as security. Minimum lease
   payments outstanding as of 31st March 09 in respect of these assets are as follows.
   Due                                                                Total Minimum                       Interest                     Present
                                                                      Lease Payment                       not due                      Value of
                                                                                                                                      Minimum
                                                                                                                                         Lease

   Within One Year                                                                    1                          0                            1
   Later than one Year but less
   than five Years                                                                    -                          -                            -
   Total                                                                              1                          0                            1
   Minimum Lease payments outstanding as on 31st March 09 in respect of assets taken on operating leases are as follows.




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   Due                                                                              Total Minimum                              Contingent
                                                                                     Lease Payment                                   Rent
                                                                                  Outstanding as on
                                                                                      31st March 09

   Within One Year                                                                                  58                                   49
   Later than one Year but less than five Years                                                    308                                  299
   later than five years                                                                         1,055                                 1118




                                                                                           Minimum                             Contingent
                                                                                      Lease Payment                                  Rent

   Paid During the year                                                                              1                                    1
   Charged to Profit and Loss Account                                                                -                                    -




12)With effect from April 1, 2008, the company has adopted Accounting Standard 30 - Financial Instruments - Recognition and Measurement
   issued by The Institute of Chartered Accountants of India to the extent it does not contradict with any other Accounting Standard notified
   u/s 211(3C) of The Companies Act. Accordingly, during the current year, in respect of derivative instruments which qualify for hedge
   accounting, the net unrealised loss aggregating Rs. 1,709 Millions. has been accounted for as a Hedging Reserve to be ultimately
   recognized in the profit and loss account when the underlying transaction arises, as against the earlier practice of recognizing the same in
   the profit and loss account, on valuation at the end of each period. Other derivative instruments that do not qualify for hedge accounting
   have been recorded at fair value at the reporting date and the resultant loss/ gain has been accounted in the profit and loss account.




142   MARUTI SUZUKI INDIA LIMITED        Annual Report 2008 - 09
                                                      13) STATEMENT OF TRANSACTIONS WITH RELATED PARTIES
                                                      NAME OF PARTIES (Only with whom the company had a transaction during the year)
                                                      Holding Company                         Key Management Personnel                            Associates                                           Fellow Subsidiaries (Only with whom the company had transaction during the year)
                                                      Suzuki Motor Corporation                Mr Shinzo Nakanishi                                 Asahi India Glass Limited                            Suzuki Motor Iberica, S.A.         Suzuki Automobile Manufacturing (Thailand) Co.,Ltd
                                                      Joint Ventures                          Mr. Hirofumi Nagao (Resigned on 10th July 2008)     Bharat Seats Limited                                 Suzuki France S A                  Suzuki Auto South Africa (Pty) Ltd
                                                      J.J. Impex (Delhi) Private Limited      Mr.Shuji Oishi                                      Caparo Maruti Limited                                Suzuki Italia S P A                PT Indomobil Suzuki International
                                                      Mark Exhaust Systems Limited            Mr Tsuneo Ohashi                                    Climate Systems India Limited                        Suzuki Australia Pty. Ltd.
                                                      Bellsonica Auto Component India Pvt Ltd Mr Keiichi Asai                                     Denso India Limited                                  Suzuki Austria Automobil Handels GmBH
                                                      FMI Automotive Components Ltd.                                                              Jay Bharat Maruti Limited                            Suzuki GB PLC
                                                                                                                                                                                                                                                                                                SCHEDULE




                                                                                                                                                  Krishna Maruti Limited                               Magyar Suzuki Corporation Ltd.
                                                                                                                                                  Machino Plastics Limited                             Suzuki Motor Espana, S.A.
                                                                                                                                                  SKH Metals Limited                                   Suzuki International Europe Gmbh
                                                                                                                                                  Nippon Thermostat (India) Limited                    Suzuki Motor (Poland)
                                                                                                                                                  Sona Koyo Steering Systems Limited                   Suzuki Cars (Ireland) Ltd.
                                                                                                                                                  Citicorp Maruti Finance Limited                      SUZUKI PHILIPPINES, INC.-814
                                                                                                                                                  Maruti Countrywide Auto Financial Services Limited   Suzuki Motorcycle India Private Ltd.
                                                                                                                                                  Magneti Marelli Powertrain India Pvt. Ltd.           American Suzuki Motor Corporation
                                                                                                                                                  Suzuki Powertrain India Limited *                    Suzuki Automobile (Thailand) Co., Ltd.

                                                                                                                                      2008-09                                                                                         2007-08
                                                                                                               Joint     Associates       Holding           Fellow           Key                           Joint     Associates       Holding           Fellow          Key             Total
                                                                                                            Ventures                    Company         Subsidiaries Management             Total        Venture                     Company       subsidiaries Management
                                                                                                                                                                       Personnel                                                                                  Personnel
                                                      Outstanding at year end
                                                      Loans and advances recoverable
                                                      Suzuki PowerTrain India Limited                              -          4,781                -              -              -          4,781              -            472               -              -               -           472
                                                      Krishna Maruti Limited                                       -            711                -              -              -            711              -            104               -              -               -           104
                                                      Others                                                     127          1,123                4              1              -          1,255             72            165               3              3               -           243
                                                      Total                                                      127          6,615                4              1              -          6,747             72            741               3              3               -           819
                                                      Amounts payable
                                                      Suzuki Motor Corporation                                     -              -             3,932             -              -          3,932              -              -          3,045               -               -         3,045
                                                      Suzuki PowerTrain India Limited                              -          1,983                 -             -              -          1,983              -            560              -               -               -           560
                                                      Others                                                     438          2,905                 -            21              -          3,364             90          1,224              -              14               -         1,328
                                                      Total                                                      438          4,888             3,932            21              -          9,279             90          1,784          3,045              14               -         4,933
                                                      Guarantees given to third parties by the Company
                                                      Suzuki PowerTrain India Limited                               -             -                 -              -             -               -              -         1,814                -              -              -         1,814
                                                      Others                                                        -             -                 -              -             -               -              -             -                -              -              -             -
                                                      Total                                                         -             -                 -              -             -               -              -         1,814                -              -              -         1,814
                                                      Guarantees given by the Company
                                                      Suzuki Motor Corporation                                      -             -             6,328              -             -          6,328               -              -         5,002                -              -         5,002
                                                      Others                                                        -             -                 -              -             -              -               -              -             -                -              -             -
                                                      Total                                                         -             -             6,328              -             -          6,328               -              -         5,002                -              -         5,002
                                                      Finances (Equity & Loans)
                                                      Suzuki PowerTrain India Limited                               -          600                  -              -             -           600               -            966                -              -              -           966
                                                      Magneti Marelli Powertrain                                    -           68                  -              -             -            68               -             17                -              -              -            17
                                                      Others                                                        -            -                  -              -             -             -             759              -                -              -              -           759
                                                                                                                    -          668                  -              -             -           668             759            983                -              -              -         1,742
                                                      Amount recoverable
                                                      SKH Metals Limited                                           -            314                -              -              -            314              -            137               -              -               -           137
                                                      Suzuki France SA                                             -              -                -            296              -            296              -              -               -              4               -             4
                                                      Suzuki GB PLC                                                -              -                -            286              -            286              -              -               -             10               -            10
                                                      Suzuki International Europe Gmbh                             -              -                -            274              -            274              -              -               -             19               -            19




Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED
                                                      Suzuki PowerTrain India Limited                              -            325                -              -              -            325              -            407               -              -               -           407
                                                      Others                                                     245            684               64            107              -          1,100             35            747              17             12               -           811
                                                      Total                                                      245          1,323               64            963              -          2,595             35          1,291              17             45               -         1,388
                                                      Transaction during the year
                                                      Purchases of Capital items
                                                      Suzuki Motor Corporation                                      -             -             3,571             -              -          3,571              -              -          2,211               -               -         2,211
                                                      Others                                                        -             -                 -             1              -              1            409              3              -              85               -           497
                                                      Total                                                         -             -             3,571             1              -          3,572            409              3          2,211              85               -         2,708
                                                                                                                                                                                                                                                                                                    Quest Unlimited




  143
                                                                                                                                                                                                                                                                                                                      Compiled by : Religare Technova Global Solutions Limited
                                                                                                                     2008-09                                                                      2007-08




 144
                                                                                                Joint   Associates       Holding       Fellow           Key                 Joint   Associates    Holding        Fellow          Key    Total
                                                                                             Ventures                  Company     Subsidiaries Management     Total     Venture                 Company    subsidiaries Management
                                                                                                                                                  Personnel            Personnel                                           Personnel
                              Goods In Transit - Comp Etc.
                              Suzuki Motor Corporation                                              -            -          834             -             -     834             -            -       972              -            -     972
                              Others                                                                -            -            -             -             -       -             -            -         -              -            -       -
                              Total                                                                 -            -          834             -             -     834             -            -       972              -            -     972
                                                                                                                                                                                                                                                SCHEDULE


                              Sale of goods
                              Suzuki France SA                                                     -            -             --          879             -      879           -            -          -             3             -        3
                              Suzuki GB PLC                                                        -            -              -          935                    935           -            -          -            25             -       25
                              Suzuki International Europe Gmbh                                     -            -              -        1,043             -    1,043           -            -          -            46             -       46
                              PT Indomobil Suzuki International                                    -            -              -          691             -      691           -            -          -         1,199             -    1,199
                              Others                                                             596        1,189           317           545             -    2,647         215          637        119           207             -    1,178
                              Total                                                              596        1,189           317         4,093             -    6,195         215          637        119         1,480             -    2,451
                              Other Income




MARUTI SUZUKI INDIA LIMITED
                              Finance income/ commission/Dividend
                              Krishna Maruti Limited                                               -           86              -            -             -      86            -           65           -             -            -      65
                              Suzuki PowerTrain India Limited                                      -          450              -            -             -     450            -          189           -             -            -     189
                              Others                                                              21          294              -            -             -     315           22          238           -             -            -     260
                              Total                                                               21          830              -            -             -     851           22          492           -             -            -     514
                              Other Misc Income
                              Suzuki PowerTrain India Limited                                      -          671              -            -             -     671            -          278          -             -             -     278
                              Others                                                              81          210              -            -                   291            6          226          1             4             -     237
                              Total                                                               81          881              -            -             -     962            6          504          1             4             -     515
                              Expenditure
                              Purchases of goods
                              Suzuki Motor Corporation                                             -            -        11,294             -             -   11,294           -            -      10,202            -             -   10,202




Annual Report 2008 - 09
                              Suzuki Powertrain India Ltd.                                         -       19,291             -             -             -   19,291           -       13,616           -            -             -   13,616
                              Others                                                           2,976       30,646             -             4             -   33,626       1,919       26,670           -            2             -   28,591
                              Total                                                            2,976       49,937        11,294             4             -   64,211       1,919       40,286      10,202            2             -   52,409
                              Proposed Dividend
                              Suzuki Motor Corporation                                              -            -          548             -             -     548             -            -       783              -            -     783
                              Total                                                                 -            -          548             -             -     548             -            -       783              -            -     783
                              Royalty
                              Suzuki Motor Corporation                                              -            -         6,777            -             -    6,777            -            -      4,931             -            -    4,931
                              Total                                                                 -            -         6,777            -             -    6,777            -            -      4,931             -            -    4,931
                              Receiving of services
                              Suzuki Motor Corporation                                              -            -          736             -             -     736             -           -        554             -             -     554
                              Others                                                                -            -            -             -             -       -             -          38          -             2             -      40
                              Total                                                                 -            -          736             -             -     736             -          38        554             2             -     594
                              Other-expenditure
                              Suzuki GB PLC                                                         -           -              -           22             -      22            -            -           -            3             -       3
                              Suzuki International Europe Gmbh                                      -           -              -            8             -       8            -            -           -            2             -       2
                              Magyar Suzuki Corporation Ltd.                                        -           -              -            5             -       5            -            -           -            -             -       -
                              Others                                                                -           1              -            5             -       6            4            1           -            -             -       5
                              Total                                                                 -           1              -           40             -      41            4            1           -            5             -      10
                              Managerial Remuneration
                              Mr Shinzo Nakanishi                                                   -            -             -            -           20       20             -            -          -             -           5        5
                              Mr. Hirofumi Nagao (Resigned on 10th July.2008)                       -            -             -            -            5        5             -            -          -             -          14       14
                              Mr Tsuneo Ohashi                                                      -            -             -            -           15       15             -            -          -             -           3        3
                              Mr Keiichi Asai                                                       -            -             -            -           15       15             -            -          -             -           2        2
                              Mr. Shuji Oishi                                                       -            -             -            -           15       15             -            -          -             -          13       13
                              Total                                                                 -            -             -            -           70       70             -            -          -             -          37       37
                              Note:
                              * Suzuki Powertrain India Limited is also a Fellow Susidiary
                                                                                                                                                                                                                                                           Compiled by : Religare Technova Global Solutions Limited
                                                                             Compiled by : Religare Technova Global Solutions Limited




                                                                                                                                    Quest Unlimited
SCHEDULE


14) THE COMPANY HAS THE FOLLOWING PROVISIONS IN THE BOOKS OF ACCOUNT AS ON 31.03.200:
                                                                                                                                       (Rs. in Million)

Description                                                                      Balance           Additions Utilized/Reversed               Balance
                                                                          as on 31.03.08      during the year  during the year        as on 31.03.09


a)   Litigation Related Provisions                                                      596              37                    22               611
b) Warranty / Product Recall Provisions                                                 253             418                   239               432
c)   Others Provisions                                                                  273              38                   116               195

a)  Litigation related provisions pertain to the estimated outflow in respect of disputes with various government authorities .The
   information required by AS 29, Provisions, Contingent Liabilities and Contingent Assets' has not been disclosed on the grounds that it
   can be expected to prejudice the interest of the Company.
b) Warranty and product recall provisions relate to the estimated outflow in respect of warranty and recall cost for products sold during the
   year. Due to the very nature of such costs, it is not possible to estimate the timing / uncertainties relating to their outflows as well as the
   expected reimbursements from such estimates.
c) Other provisions relate to excise duty, export obligation and guarantees, etc. given. Due to the very nature of such costs, it is not possible
   to estimate the timing / uncertainties relating to their outflows as well as the expected reimbursements from such estimates.

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




     ANUPAM DHAWAN                                            SHINZO NAKANISHI                                S. OISHI
     Membership Number - F 084451                             Managing Director & CEO                         Director
     Partner
     For and on behalf of
     PRICE WATERHOUSE
     Chartered Accountants                                    AJAY SETH                                       S. RAVI AIYAR
     New Delhi                                                Chief Financial Officer                         Company Secretary
     April 24, 2009                                                                                           & Chief Legal Officer




                                                             Annual Report 2008 - 09 MARUTI SUZUKI INDIA LIMITED                                   145

				
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