Auditors Report

AUDITORS’ REPORT
TO THE MEMBERS OF MARUTI UDYOG LIMITED and explanations given to us, a substantial part of
fixed assets has not been disposed off by the
1. We have audited the attached Balance Sheet of Maruti Udyog company during the year.
Limited, as at 31st March, 2007 and the related Profit and Loss
Account and Cash Flow Statement for the year ended on that ii) (a) The inventory (excluding materials lying with
date annexed threto, which we have signed under reference vendors) has been physically verified by the
to this report. These financial statements are the responsibility management during the year. Confirmations have
of the company’s management. Our responsibility is to express been received for materials lying with vendors at
an opinion on these financial statements based on our audit. the year end.In our opinion, the frequency of
verification is reasonable.
2. We conducted our audit in accordance with the auditing
standards generally accepted in India. Those Standards require (b) In our opinion, the procedures of physical
that we plan and perform the audit to obtain reasonable verification of inventory followed by the
assurance about whether the financial statements are free of management are reasonable and adequate in
material misstatement. An audit includes examining, on a test relation to the size of the company and the nature
basis, evidence supporting the amounts and disclosures in the of its business.
financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by (c) On the basis of our examination of the inventory
management, as well as evaluating the overall financial records, in our opinion, the company is maintaining
statement presentation. We believe that our audit provides a proper records of inventory. The discrepancies
reasonable basis for our opinion. noticed on physical verification of inventory as
compared to book records were not material.
3. As required by the Companies (Auditor’s Report) Order,
2003, as amended by the Companies (Auditor’s Report) iii) The company has not taken or granted any loans, secured or
(Amendment) Order, 2004, issued by the Central Government unsecured, from/ to companies, firms or other parties covered
of India in terms of sub-section (4A) of Section 227 of the in the register maintained under Section301 of the Act.
‘The Companies Act, 1956’ of India (the ‘Act’) and on the
iv) In our opinion and according to the information and
basis of such checks of the the books and records of the
explanations given to us, there are adequate internal control
company as we considered appropriate and according to the
procedures commensurate with the size of the the company
information and explanations given to us, we further report
and nature of its business for the purchase of inventory, fixed
that:
assets and for the sale of goods and services. Further, on the
i) (a) The company is maintaining proper records showing basis of our examination of the books and records of the
full particulars including quantitative details and company, and according to the information and explanations
situation of fixed assets. given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses
(b) The fixed assets are physically verified by the in the aforesaid internal control procedures.
management according to a phased programme
designed to cover all the items, except furniture v) (a) In our opinion and according to the information and
and fixtures, office appliances and certain other explanations given to us, the particulars of contracts or
assets aggregating to Rupees 339 million, over a arrangements referred to in Section 301 of the Act have
period of three years, which in our opinion, is been entered into the Register maintained under Section
reasonable having regard to the size of the company 301 of the Act.
and the nature of its assets. Pursuant to the
(b) In our opinion and according to the information and
programme, the fixed assets have been physically
explanation given to us, there are no transactions made
verified by the management during the year and no
in pursuance of such contracts or arrangements and
material discrepancies between the book records
exceeding the value of Rupees Five Lakhs in respect of
and the physical inventory have been noticed.
any party during the year, which have been made at prices
(c) In our opinion and according to the information which are not reasonable having regard to the prevailing
Maruti Udyog Limited | ANNUAL REPORT | 2006-2007 51

market prices at the relevant time. In respect of purchase xii) The company has not granted any loans and advances on the
of goods and materials including components from t h e basis of security by way of pledge of shares, debentures and
holding company, the prices paid for these items are not other securities.
comparable as these are of special nature.
xiii) The provisions of any special statute applicable to chit fund
vi) The company has not accepted any deposits from the public / nidhi / mutual benefit fund / societies are not applicable to
within the meaning of Section 58A and 58AA or any other the company.
relevant provisions of the Act and the rules framed there
xiv) In our opinion, the company is not a dealer or trader in
under.
shares, securities, debentures and other investments.
vii) In our opinion, the company has an internal audit system xv) In our opinion and according to the information and
commensurate with its size and nature of its business. explanations given to us, the terms and conditions of the
viii) We have broadly reviewed the books of account maintained gurantee given by the company, for loans taken by others
by the company in respect of products where, pursuant to from banks or financial institutions during the year, are not
the Rules made by the Central Government of India, the prejudicial to the interest of the company.
maintenance of cost records has been prescribed under clause xvi) In our opinion, and according to the information and
(d) of sub section (1) of Section 209 of the Act and are of the explanations given to us, on an overall basis, the term loans
opinion that prima facie, the prescribed accounts and records have been applied for the purposes for which they were
have been made and maintained. We have not, however, made obtained.
a detailed examination of the records with a view to determine
whether they are accurate or complete. xvii) On the basis of an overall examination of the balance sheet
of the company, in our opinion and according to the
ix) (a) According to the information and explanations given to information and explanations given to us, there are no funds
us and the records of the company examined by us, in raised on a short-term basis which have been used for long-
our opinion, the company is regular in depositing term investment.
undisputed statutory dues in respect of provident fund,
investor education and protection fund, exployees’ state xviii) The company has not made any preferential allotment of
insurance, income tax, sales-tax, wealth tax, service tax, shares to parties and companies covered in the register
customs duty, excise duty, cess and other material maintained under Section 301 of the Act during the year.
statutory dues as applicable with the appropriate
xix) The company has created security and charge in respect of
authorities.
debentures issued and outstanding to the year-end.
(b) According to the information and explanations given to xx) The company has not raised any money by public issue
us and the records of the company examined by us, the during the year.
particulars of dues of income- tax, sales-tax, wealth tax,
service tax, customs duty, excise duty and cess as at March xxi) During the course of our examination of the books and
31, 2007 which have not been deposited on account of a records of the Company, carried out in accordance with
dispute have been stated in Note 32 on schedule 23. the generally accepted auditing practices in India, and
according to the information and explanations given to us,
x) The company has no accumulated losses as at March 31, 2007 we have neither come across any instance of fraud on or
and it has not incurred any cash losses in the financial year by the company, noticed or reported during the year, nor
ended on that date or in the immediately preceding financial have we been informed of such case by the management.
year.
4. Further to our comments in paragraph 3 above, we report
xi) According to the records of the company examined by us that :
and the information and explanations given to us, the company
has not defaulted in repayment of dues to any bank or a) We have obtained all the information and explanations,
debenture holders as at the balance sheet date. which to the best of our knowledge and belief were
necessary for the purpose of our audit;
52 Maruti Udyog Limited | ANNUAL REPORT | 2006-2007

b) In our opinion, proper books of account as required by statements together with the notes theron and attached
law have been kept by the company so far as appears thereto give in the prescreibed manner the information
from our examination of those books; required by the Act and give a true and fair view in
conformity with the accounting principles generally
c) The Balance Sheet, Profit and Loss Account and Cash accepted in India
Flow Statement dealt with by this report are in agreement
with the books of account; i. in the case of Balance Sheet, of the state of affairs of
the company as at 31st March 2007
d) In our opinion, the Balance Sheet, Profit and Loss Acount
and Cash Flow Statement dealt with by this report have ii. in the case of Profit and Loss Account, of the profit
been prepared in compliance with the applicable for the year ended on that date; and
accounting standards referred to in sub-section (3C) of
Section 211 of the Act; iii. in the case of the Cash Flow Statement, of the cash
flows for the year ended on that date.
e) On the basis of written representions received from the
directors as on March 31, 2007 and taken on record by
the Board of Directors, none of the directors is disqualified
as on March 31, 2007 from being appointed as a director Anupam Dhawan
in terms of clause (g) of sub-section (1) of Section 274 of Membership Number- F084451
the Act; Partner
For and on behalf of
f) In our opinion and to the best of our information and Place : New Delhi PRICE WATERHOUSE
according to the explanations given to us, the said financial Date : 24th April, 2007 Chartered Accountants

BALANCE SHEET
AS AT 31ST MARCH, 2007 (Rs. in Million)
SCHEDULE As at As at
31.03.07 31.03.06
SOURCES OF FUNDS
SHAREHOLDERS’ FUNDS
Capital 1 1,445 1,445
Reserves and Surplus 2 67,094 68,539 53,081 54,526
LOAN FUNDS
Secured Loans 3 635 717
Unsecured Loans 4 5,673 6,308 - 717
DEFERRED TAX (Note 19 on Schedule 23)

Deferred Tax Liabilities 2,776 1,990
Deferred Tax Assets (1,101) 1,675 (1,211) 779
Total 76,522 56,022
APPLICATION OF FUNDS
FIXED ASSETS 5
Gross Block 61,468 49,546
Less: Depreciation (34,871) (32,594)
26,597 16,952
Capital Work-In-Progress 6 2,389 28,986 920 17,872
INVESTMENTS 7 34,092 20,512
CURRENT ASSETS, LOANS AND ADVANCES

Inventories 8 7,132 8,812
Sundry Debtors 9 7,474 6,461
Cash and Bank Balances 10 14,228 14,016
Other Current Assets 11 384 458
Loans and Advances 12 9,241 7,662
38,459 37,409
LESS: CURRENT LIABILITIES AND PROVISIONS

Current Liabilities 13 20,110 15,058
Provisions 14 4,905 4,713
25,015 19,771
Net Current Assets 13,444 17,638
Total 76,522 56,022
SIGNIFICANT ACCOUNTING POLICIES 22

NOTES TO ACCOUNTS 23
This is the Balance Sheet referred to The Schedules referred to above form
in our report of even date. an integral part of the Balance Sheet.
ANUPAM DHAWAN JAGDISH KHATTAR H. NAGAO ANIL RUSTGI

Membership Number - F 084451 Managing Director & CEO Joint Managing Director Company Secretary & Chief Legal Officer
Partner
For and on behalf of PRICE WATERHOUSE
Chartered Accountants
New Delhi
24th April, 2007

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31ST MARCH, 2007 (Rs. in Million)
SCHEDULE For the year For the year
ended 31.03.07 ended 31.03.06
INCOME
Gross Sales 15 171,442 147,043
Less: Excise Duty 25,520 27,009
Net Sales 145,922 120,034
Income from Services [Net of expenses Rs 705 million 617 488
(previous year Rs 2,025 million)]
Other Income 16 5,984 4,292
Total 152,523 124,814
EXPENDITURE
Consumption of Raw Materials and Components 101,374 88,779
(Note 4 on Schedule 23)
Purchase of Traded Goods 6,159 4,644
Consumption of Stores 1,097 824
Employees Remuneration and Benefits 17 2,884 2,287
Manufacturing, Administrative and Other Expenses 18 8,258 6,226
Selling and Distribution Expenses 19 4,999 3,560
Total 124,771 106,320
Less: Vehicles/ Dies for Own Use 143 67
Add : (Increase) /Decrease in Work-in-progress,
Finished Goods and Spare Parts 21 2,007 (1,997)
Total 126,635 104,256
Earnings before Interest, Depreciation, Tax and Amortizations (EBIDTA) 25,888 20,558
Interest 20 376 204

Depreciation 5 2,714 2,854
3,090 3,058
Profit before Tax 22,798 17,500
Less : Tax Expense - Current Tax 6,089 5,873
- Deferred Tax (Note 19 on Schedule 23 ) 897 (321)
- Fringe Benefit Tax 67 57
- Previous Years 125 -
Profit after Tax 15,620 11,891
Add: Brought forward from previous year’s account 43,939 34,421
Less: Loss of Maruti Suzuki Automobile India Limited adjusted on 84 -
amalgamation
Less: Impact of Transition adjustment for ‘Employee Benefit’ 4 -
Profit available for appropriation 59,471 46,312
Less: Appropriation :
Debenture Redemption Reserve 17 31
General Reserve 1,562 1,189
Proposed Dividend 1,300 1,011
Corporate Dividend Tax 219 142
Balance carried forward to Balance Sheet 56,373 43,939
Basic/Diluted Earnings Per Share (in Rupees) (Note 18 on Schedule 23) 54.06 41.16
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 Profit and Loss Account.
Partner
New Delhi
24th April, 2007

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH, 2007 (Rs. in Million)
For the year For the year
ended 31.03.07 ended 31.03.06
A. Cash flow from Operating Activities:

Net Profit before Tax 22,798 17,500
Adjustments for:
Depreciation 2,714 2,854
Interest Expense 376 204
Interest Income (1,109) (1,069)
Dividend Income (1,528) (720)
Net Loss on Sale / discarding of Fixed Assets 4 220
Profit on sale of Investments (389) (100)
Debts / Advances Written off 22 -
Provision for Doubtful Debts and Advances - 10
Provisions no longer required written back (459) (54)
Opening Loss of MSAIL adjusted from opening surplus on amalgamation (84)
Impact of transition provision of Accounting Standard 15 (5)
Employee Benefit’
Operating Profit before Working Capital changes 22,340 18,845
Adjustments for changes in Working Capital :

- (Increase)/Decrease in Sundry Debtors (1,035) (553)
- (Increase)/Decrease in Other Current Assets, Loans & advances (1,523) (1,301)
- (Increase)/Decrease in Inventories 1,680 (2,146)
- Increase/(Decrease) in Current Liabilities and Provisions 5,170 3,185
Cash generated from Operating Activities 26,632 18,030
- Taxes (Paid) / Received (Net of TDS) (6,352) (5,804)
Net Cash from Operating Activities 20,280 12,226
B. Cash flow from Investing Activities:

Purchase of fixed assets (13,955) (2,103)
Sale of fixed Assets 123 315
Sale of investments 109,253 88,222
Purchase of investments (122,444) (93,469)
Interest received (revenue) 1,127 1,008
Dividend received 1,528 720
Net Cash from Investing Activities (24,368) (5,307)

(Rs. in Million)
ended 31.03.07 ended 31.03.06
C. Cash flow from Financing Activities:

Proceeds from Short term borrowings 233 17
Proceeds from Long term borrowings 5,675 -
Repayment of short term borrowings (317) (2,376)
Interest paid (280) (260)
Dividend paid (1,011) (578)
Net Cash from Financing Activities 4,300 (3,197)
Net Increase/(Decrease) in Cash & Cash Equivalents 212 3,722
Cash and Cash Equivalents as at 1st April (Opening Balance) 14,016 10,294
Cash and Cash Equivalents as at 31st March (Closing Balance) 14,228 14,016
Cash and Cash Equivalents comprise 14,228 14,016

Cash, Cheques & Drafts (in hand) 946 462
Balance with Scheduled Banks in Current Accounts 202 54
Balance with Scheduled Banks in Deposit Accounts 13,080 13,500
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” issued by the Institute of Chartered Accountants of India.
2 Cash and Cash equivalent includes Rs 2 Million (Previous Year Rs. 2 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.

Partner
New Delhi
24th April, 2007

SCHEDULES
SCHEDULE 1 - SHARE CAPITAL (Rs. in Million)
As at As at
31.03.07 31.03.06
AUTHORISED CAPITAL
744,000,000 Equity Shares of Rs. 5 each (Previous year 3,720 1,550
310,000,000 Equity shares of Rs. 5 each)
Of the above -
As per the scheme of amalgamation of the Company’s wholly owned subsidiary
Maruti Suzuki Automobile India Limited (MSAIL) with the Company
from the appointed date of 01-April-2006, the authorised capital of MSAIL
after splitting each share into 20 share of the face value of Rs 5 each has became
part of authorised capital of the Company
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 to
Government of India for vesting assets under Maruti Limited (Acquisition
and Transfer of Undertaking) Act, 1980
- 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
SCHEDULE 2 - RESERVES AND SURPLUS

Balance As at Additions Transfer/Adjustment Balance as at
1st April, during the during the 31st March
2006 year year 2007
Share Premium Account 4,241 - - 4,241
Debenture Redemption Reserve 158 17 75 100
General Reserve 4,743 1,637 - 6,380
Balance as per Profit and Loss Account 43,939 12,522 88 56,373
Total 53,081 14,176 163 67,094
SCHEDULE 3 - SECURED LOANS

As at As at
31.03.07 31.03.06
LONG TERM LOANS
9% Non-Convertible Debentures- Series II secured by mortgage on specific Buildings
and Plant and Machinery (the total loan of Rs. 1,000 million Redeemable
at par - 30% on 4th December, 2005, 30% on 4th December, 2006 (already paid) - 400
and balance 40% on 4th December, 2007 (classified as short term as at 31st March 2007)
(See below)
- FROM OTHERS
Loan from Sundaram Finance 1 -
(Secured against vehicles taken on finance lease)
SHORT TERM LOANS

- FROM BANKS
Cash Credit/Working Capital Demand Loans/Rupee Loans secured by pari passu first 233 17
charge on the stock, book debts and other current assets.
- FROM OTHERS
9% Non-Convertible Debentures- Series II secured by mortgage on
specific Buildings and Plant and Machinery ( Redeemable at par on
4th December 2007) (Long-term as at 31st March 2006) (Previous year redeemable at 400 300
par 4th December 2006)
(See above)
Loan from Sundaram Finance (Payable within 1 Year) 1 -
(Secured against vehicles taken on finance lease)
635 717

SCHEDULE 4 - UNSECURED LOAN (Rs. in Million)
As at As at
31.03.07 31.03.06
LONG TERM LOANS - FROM BANKS

Foreign Currency Loans 5,673 -
Loan from Japan Bank of International Corporation and Bank of Tokyo Mitsubishi
(Guaranteed by Suzuki Motor Corporation, Japan, the Holding Company)
5,673 -
SCHEDULE 5 - FIXED ASSETS

Particulars Gross Block Accumulated Depreciation Net Block
As at Additions Deductions/ As at As at For the Deductions/ As at As at As at
01.04.06 Adjustments 31.03.07 1.04.06 year Adjustments 31.03.07 31.03.07 31.03.06
Freehold land (Note 1 ) 223 - - 223 - - - - 223 223
Leasehold land (Note 4 ) 1,621 - - 1,621 4 0 - 4 1,617 1,617
Building (Note 2) 2,765 1,497 (19) 4,243 727 110 (1) 836 3,407 2,038
Plant and Machinery (Note 3) 43,471 10,573 (317) 53,727 31,100 2,450 (281) 33,269 20,458 12,371
Electronic Data Processing Equipment 843 240 (134) 949 560 103 (134) 529 420 283
Furniture , Fixtures and Office Appliances 295 41 (4) 332 133 19 (2) 150 182 162
Vehicles:
- Owned 328 132 (90) 370 70 31 (19) 82 288 258
- Leased - 3 - 3 - 1 - 1 2 -
Total 49,546 12,486 (564) 61,468 32,594 2,714 (437) 34,871 26,597 16,952
Previous Year Figures 50,531 1,604 (2,589) 49,546 31,794 2,854 (2,054) 32,594 16,952
(1) Cost of land amounting to 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) Cost of building amounting to Rs. 32 million (Previous year Rs. 32 million) is not yet registered in the name of the Company.
(3) 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.
(4) Leasehold 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.
(5) Maruti Suzuki Automobile India Limited (MSAIL), a wholly owned subsidiary was merged with the Company from appointed date of 1 April, 2006. The additions to Fixed Assets and Depreciation
for the year includes the following balances of MSAIL.
Particulars Gross Block Depreciation

Building 1,429 28
Plant and Machinery 9,546 335
Electronic Data Processing Equipment 44 3
Furniture , Fixtures and Office Appliances 13 1
Vehicles - Owned 1 0
- Leased 3 1
Total 11,036 368
(6) Additions include Rs 101 million interest capitalised on foreign currency loan (Previous year Rs Nil).
SCHEDULE 6 - CAPITAL WORK-IN-PROGRESS

As at As at
31.03.07 31.03.06
Plant and Machinery 943 667

Civil Work-in-progress 447 78
Capital Advances 999 175
2,389 920

SCHEDULE 7 - INVESTMENTS (Rs. in Million)
As at As at
31.03.07 31.03.06
TRADE INVESTMENTS:
Long Term :
Quoted Equity Shares (Fully Paid) 111 111
Unquoted Equity Shares (Fully Paid) 1,321 866
Investment in Subsidiary Companies
Unquoted Equity Shares (Fully Paid) 3 282
Other Investments:
Long Term (Unquoted) :
Mutual Funds 24,052 14,398
Current (Unquoted) :
Mutual Funds 8,605 4,855
34,092 20,512
Aggregate Value of Unquoted Investments 33,981 20,401
Aggregate Value of Quoted Investments 111 111
Market Value of Quoted Investments 2,704 2,898
SCHEDULE 8 - INVENTORIES
As at As at
31.03.07 31.03.06
COMPONENTS AND RAW MATERIALS
In transit/under inspection 1,616 1,880
With vendors 117 101
At factory 1,747 3,480 846 2,827
STORES AND SPARES
Vehicles 818 684
Machinery 23 5
Consumables 58 35
In transit/under inspection 18 917 33 757
Tools at factory 138 87
Dies and Moulds 41 36
Work-in-Progress 309 248
Finished Goods 2,247 4,857
7,132 8,812
SCHEDULE 9 - SUNDRY DEBTORS
(Note 21 on Schedule 23) As at As at
31.03.07 31.03.06
DEBTS OUTSTANDING FOR MORE THAN SIX MONTHS
Unsecured - Considered Good 1,017 474
- Considered Doubtful 273 273
1,290 747
Less: Provision for Doubtful Debts 273 1,017 273 474
Other Debts :
Unsecured - Considered Good 6,457 5,987
7,474 6,461
SCHEDULE 10 - CASH AND BANK BALANCES As at As at

31.03.07 31.03.06
Cash in hand 5 6
Cheques in hand 941 456
Bank balances with Scheduled Banks in :
Current Accounts: * 202 54
Deposit Accounts: 13,080 13,500
*Includes unclaimed Dividend amounting to Rs. 2 Million (Previous year Rs. 2 Million) 14,228 14,016

SCHEDULE 11 - OTHER CURRENT ASSETS (Rs. in Million)
As at As at
31.03.07 31.03.06
INTEREST ACCRUED ON DEPOSITS, LOANS AND ADVANCES

Secured - Considered Good 42 41
48 47
Less: Provision for Doubtful Interest 6 42 6 41
Unsecured - Considered Good 199 218

200 219
Less: Provision for Doubtful Interest 1 199 1 218
CLAIMS - UNSECURED
Considered Good 143 199
Considered Doubtful 56 62
199 261
Less: Provision for Doubtful Claims 56 143 62 199
384 458
SCHEDULE 12 - LOANS AND ADVANCES As at As at

31.03.07 31.03.06
(Note 21 & 22 on Schedule 23)
LOANS
Secured - Considered Good 47 59
58 76
Less: Provision for Doubtful Loans 11 47 17 59
Unsecured - Considered Good

- to Subsidiary Company – 1,239
- to Others 362 469
363 1,709
Less: Provision for Doubtful Loans 1 362 1 1,708
ADVANCES RECOVERABLE IN CASH OR IN KIND
OR FOR VALUE TO BE RECEIVED:
Unsecured - Considered Good 2,275 1,391
2,347 1,464
Less: Provision for Doubtful Advances 72 2,275 73 1,391
DEPOSITS - CONSIDERED GOOD UNLESS OTHERWISE STATED
Balance with Customs, Port Trust and other
Government Authorities 6,546 4,466
Inter Corporate Deposits Considered Doubtful 140 313
Less :Provision for Doubtful Deposits 140 — 313 —
Other Deposits 11 38
9,241 7,662

SCHEDULES
SCHEDULE 13 - CURRENT LIABILITIES (Rs. in Million)
As at As at
31.03.07 31.03.06
Sundry Creditors (Note 20 on Schedule 23) 9,096 5,551

Advances from Customers/Dealers 440 960
Book Overdraft 928 946
Unclaimed Dividend * 2 2
Other Liabilities 7,604 5,840
Deposits from Dealers, Contractors and Others 1,797 1,612
Interest Accrued but not due on :
Loans 12 20
Others 231 243 127 147
20,110 15,058
*Not due to be credited to the Investor Education and Protection Fund
SCHEDULE 14 - PROVISIONS
As at As at
31.03.07 31.03.06
Litigation related provisions 710 833
Leave Encashment 441 307
Warranty & Product Recall 541 714
Proposed Dividend 1,300 1,011
Corporate Dividend Tax 219 142
Others Provisions 539 622
Taxation (Net of Advance-tax) 1,155 1,084
4,905 4,713
SCHEDULE 15 - SALES
ended 31.03.07 ended 31.03.06
Vehicles 161,367 138,661
Spare Parts/Dies and Moulds/Components 10,075 8,382
171,442 147,043

SCHEDULE 16 - OTHER INCOME (Rs. in Million)
ended 31.03.07 ended 31.03.06
Interest on:
a) Fixed Deposits / Securities (Gross) (TDS of 318 538
Rs. 69 Million - previous year Rs. 120 million)
b) Receivables from Dealers (Gross) (TDS 339 317
of Rs. 22 Million - previous year Rs. 29 million)
c) Advances to Vendors (Gross) (TDS of 190 207
Rs. 43 Million - previous year Rs. 47 million)
d) Others 262 1,109 7 1,069
Sale of Scrap (Net of Excise) 1,206 1,134
Sales Tax Benefit (Previous Year includes Prior Period Rs. 55 million) 319 323
Miscellaneous Receipts (Gross) (TDS of Rs. 3 Million - previous year Rs.1 million ) 750 720
Profit on Sale of Investments:
Long Term Investments 337 68
Short Term Investments 52 389 32 100
Dividend:
Trade Investments - Long Term 61 46
Others 1,467 1,528 674 720
Provisions no longer required written back 459 54
Recovery of Service Charges 291 239
Less: Repair Cost of Damaged Vehicles 67 224 67 172
5,984 4,292
SCHEDULE 17 - EMPLOYEES REMUNERATION AND BENEFITS

ended 31.03.07 ended 31.03.06
Salaries ,Wages ,Allowances and Other Benefits 2,551 2,002
Contribution to Provident and Other Funds 156 130
Staff Welfare Expenses 173 153
Group Insurance 4 2
2,884 2,287

SCHEDULES
SCHEDULE 18 - MANUFACTURING, ADMINISTRATIVE AND OTHER EXPENSES (Rs. in Million)

ended 31.03.07 ended 31.03.06
Power and Fuel (Net of amount recovered Rs 362 million, 974 572
previous year Rs 222 million)
Rent 65 61
Rates, Taxes and Fees 5 3
Insurance 65 63
Repairs and Maintenance :
Plant and Machinery 251 480
Building 106 46
Others 81 438 63 589
Royalty 3,673 2,544
Tools / Machinery Spares Charged Off 517 304
Net Loss on Sale/discarding of Fixed Assets 4 220
Bad Debts/Advances Written Off 22 -
Provision for Doubtful Debts, Claims, Loans and Advances - 10
Exchange Variation (Net) 94 400
Other Miscellaneous Expenses 2,401 1,460
8,258 6,226
SCHEDULE 19 - SELLING AND DISTRIBUTION EXPENSES

ended 31.03.07 ended 31.03.06
Advertisement and Sales Promotion 3,389 2,257
Warranty Claims 234 234
Transportation and Distribution Expenses 1,376 1,069
4,999 3,560
SCHEDULE 20 - INTEREST

ended 31.03.07 ended 31.03.06
INTEREST :
Fixed :
Foreign Currency Loans 238 -
Debentures 44 282 130 130
Others 94 74
376 204

SCHEDULE 21 - (INCREASE)/DECREASE IN WORK-IN-PROGRESS, FINISHED GOODS & SPARE PARTS (Rs. in Million)

ended 31.03.07 ended 31.03.06
WORK-IN-PROGRESS
Opening Stock 248 499
Less: Closing Stock 309 (61) 248 251
FINISHED GOODS
Opening Stock 4,857 2,261
Less: Closing Stock 2,247 4,857
2,610 (2,596)
Less: Excise Duty on Increase/(Decrease) of Finished Stock 424 2,186 (363) (2,233)
SPARE PARTS - TRADED
Opening Stock 573 559
Less: Closing Stock 691 (118) 574 (15)
2,007 (1,997)
SCHEDULE 22 - SIGNIFICANT ACCOUNTING POLICIES
1) BASIS FOR PREPARATION OF ACCOUNTS

These accounts have been prepared in accordance with the historical cost convention, the applicable accounting standards issued by the Institute
of Chartered Accountants of India 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 capitalized 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 for lease hold land are depreciated on the straight line method on a pro-rata basis from the month in which each asset is
put to use, at the following rates:
i) Assets capitalised before 02.04.1987
Depreciation has been provided at the rates computed in accordance with Section 205 (2) (b) of the Companies Act, 1956, in terms of
Circular No. 1/86 dated 21.05.86 of the Government of India.
ii) Assets capitalised on or after 02.04.1987
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 at the following rates:
Plant and Machinery:
Single Shift 7.31%
Double Shift 11.88%
Triple Shift 15.83%
Dies and Jigs 20% to 41%
b) Leasehold land is amortised over the period of lease.
c) Plant and machinery, the written down value of which at the beginning of the year is Rs. 5,000/- or less, and other assets, the written down
value of which at the beginning of the year is Rs. 1,000/- or less, are depreciated at the rate of 100%. Assets purchased during the year costing
Rs 5000 or less are depreciated at the rate of 100%.
d) In case the historical cost of an asset undergoes a change due to an increase or decrease in related long term liability on account of foreign
exchange fluctuations, change in duties etc., the depreciation on the revised unamortised depreciable amount is provided prospectively over
the residual useful life of the asset.

SCHEDULES
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.
9) FOREIGN CURRENCY TRANSLATIONS
a) Foreign Currency transactions are recorded at the exchange rate prevailing at the date of transaction. Exchange differences arising on
settlement of transactions, except those relating to fixed assets, are recognised as income or expense in the year in which they arise. The cost
of the respective fixed assets is adjusted for exchange differences arising on repayment of liabilities incurred for the purpose of acquiring such
fixed assets.
b) At the balance sheet date all assets, other than fixed assets, and liabilities denominated in foreign currency are reported at the exchange rate
prevailing at the balance sheet date. The cost of the respective fixed assets is adjusted for increase or decrease in liabilities incurred for the
purpose of acquiring such fixed assets due to application of the exchange rate prevailing at the balance sheet date.
c) The difference between the forward rate and the exchange rate at the inception of a forward contract is recognised as income or expense
over the life of the contract
d) 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.
10) RETIREMENT 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 insurance policy to fund a post-employment medical assistance scheme, which is a Defined Contribution
plan administered by New India Insurance Company (NIIC). The Company’s contribution to State plans namely Employee State Insurance Fund
and Employee Pension Scheme 1995 are charged to revenue every year.
The Company has Defined Benefit plans namely leave encashment/ compensated absence, Gratuity 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 trusts.
Termination benefits are recognised as an expense immediately.
Gains and losses arising out of actuarial evaluations are recognised immediately in the Profit and Loss Account as income or expense.
11) CUSTOMS DUTY

Customs duties available as drawback are debited to purchases and credited to income 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) DEFERRED 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) 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.
15) 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 - 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. 2,592 million (Previous year Rs. 1,790 million). Against this, the Company has deposited
a sum of Rs. 27 million (Previous year Rs. 29 million) under protest.
iii. Customs duty demands of Rs. 118 million (Previous year Rs. 118 million).Against this, the Company has deposited a sum of Rs. 22 million
(Previous year Rs. 22 million) under protest.
iv. Income-tax demands of Rs. 8,157 million (Previous year Rs. 7,620 million). Against this, the Company has deposited a sum of Rs. 4,869
million under protest (Previous year Rs. 2,756 million).
v. Service-tax demands of Rs. 797 million (Previous year Rs. 557 million).
vi. Claims against the company for recovery of Rs 776 million (Previous year Rs. 667 million) lodged by various parties.
b) A Guarantee given to HDFC Limited for term loan of Rs.300 million (Previous year Rs.300 million) given by HDFC Limited to Maruti
Employees Co-operative House Building Society Limited, Bhondsi. Against this, the contingent liability as at the year-end is Rs. Nil (Previous
year Rs. 34 million).
c) 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. 15 million).
d) A Guarantee given to HDFC Bank against Non-Fund based facilities granted by the Bank to a group company Suzuki Powertrain India Limited
of Rs. 2,000 million (Previous year Rs. 2,000 million). Against this, the contingent liability as at the year-end is Rs. 26 million. (Previous year Rs.
Nil)
e) 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. 3,000 million (Previous year Rs. 3,000 million). Against this, the contingent liability as at the year-end is Rs. 101 million. (Previous
year Rs. 256)
f) 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 (e) 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 1,050 million (Previous year Rs. 516 million).
3) Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amount to Rs.8,076
million (Previous year Rs. 2,004 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. 56 million (Previous year Rs. 56 million) and is net of Rs. Nil
(Previous year Rs. 72 million) for earlier years, 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 2007, the company has availed of sales tax benefit amounting to Rs. 1,469 million (Previous year Rs. 1150 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.

SCHEDULES
(Rs. in Million)
2006-07 2005-06
7) The following expenses incurred on Research and Development
are included under respective account heads:
Employees Remuneration and Benefits 154 120
Other Expenses of Manufacturing and 382 276
Administration (Including Depreciation
on Research and Development assets)
536 396
8) a) Managerial Remuneration
Salaries and Allowances 30.95 25.03
Commission / Performance linked Bonus 20.80 16.44
Contribution to Provident Fund 0.67 0.63
Gratuity and Leave Encashment Paid 0.47 0.34
Estimated value of perquisites 14.25 10.08
67.14* 52.52
*Includes remuneration of Mr. T. Kobyashi amounting to Rs. 5.64 million which is subject to approval of shareholders.
b) The above mentioned amount of Rs. 67.14 million (Previous year Rs. 52.52 million) does not include any provision for gratuity or leave
encashment benefit as the separate figures for the directors are not available.
c) Computation of net profit in accordance with Section 349/ 198 of the Companies Act, 1956
(Rs. in Million)
Profit before Taxation 22,798 17,500
Add : Depreciation as per accounts 2,714 2,854
Managerial Remuneration Whole Time Directors 67 50
Commission to Non-Whole Time Directors – 3
Director’s Sitting Fees 0 0
Provision for Doubtful advances – 10
Net Loss on Sale/discarding of Fixed Assets 4 2,785 220 3,137
25,583 20,637
Less: Depreciation as per Section 350 of Companies Act,1956 2,714 2,854

Provision no longer required written back 459 54
Profit on sale of Investments 389 3,562 100 3,008
Net Profit as per Sections 349/350 22,021 17,629
Maximum Commission payable to Non-Whole-time
Directors @ 1% on Rs. 22,021 220 176
million (Previous Year 1% on Rs. 17,629 million)
Restricted to – 3
9) Auditors’ Remuneration
Statutory Audit 6.33 5.75
Other Audit Services / Certification 0.16 0.16
Reimbursement of Expenses 0.11 0.23
10) CIF Value of Imports

Raw Materials and Components 12,902 14,905
Capital Goods 680 517
Maintenance Spares 111 186
Dies and Moulds 466 489
Other items 71 163

(Rs. in Million)
2006-07 2005-06
11) Expenditure in Foreign Currency (Cash Basis)

Fees for Technical Services (Net of TDS) 417 264
Traveling Expenses 96 42
Royalty (Net of TDS) 2,594 1,557
Others 210 216
12) Earnings in Foreign Currency

Export of Goods (FOB basis) 5,781 5,839
13) Dividend Remitted in Foreign Currency (Cash Basis)

Dividend for the year 2005-06 (Previous year 2004-05) 548 313
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 12,803 16,660
Indigenous 88,571 72,119
101,374 88,779
Percentage of Total Consumption

Imported 13% 19%
Indigenous 87% 81%
ii) Machinery Spares

Imported 133 58
Indigenous 233 109
366 167
Percentage of Total Consumption

Imported 36% 35%
Indigenous 64% 65%
15) Licensed Capacity, Installed Capacity and Actual Production

PRODUCT UNIT LICENSED INSTALLED ACTUAL
CAPACITY CAPACITY** PRODUCTION
Passenger Cars and
Light Duty Utility Vehicles Nos. -* 450,000 667,048
( - )* (350,000) (572,127)
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.

SCHEDULES
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 674,924 161,367 20,378 4,857 11,976 2,247

(561,819) (138,661) (10,403) (2,262) (20,378) (4,857)
Spare Parts/Components * 9,303 * 684 * 818
* (8,150) * (660) * (684)
Dies and Moulds * 772 * - * -
* (232) * - * -
Notes :
1. Purchase of traded goods comprise of Vehicles, Spares, Components and Dies and Moulds. During the year Nil Vehicles (Previous year 15)
were purchased.
2. Closing Stock of vehicles is after adjustment of 41 vehicles (Previous Year - 57) totally damaged.
3. Sales quantity excludes own use/sample vehicles 485 Nos. (Previous Year - 291 Nos.)
4. Previous Year figures are in brackets.
* In view of the innumerable sizes/numbers 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

2006-07 2005-06
GROUP OF MATERIAL UNIT QTY. AMOUNT QTY. AMOUNT
Steel Coils MT 123,529 4,702 112,964 4,397

Ferrous Castings MT 22,844 1,422 18,175 1,116
Non-ferrous Castings MT 10,880 2,024 10,136 2,317
Other Components * 92,051 * 79,939
Paints K.LTR 4,957 4,662
MT 3,061 1,175 2,642 1,010
101,374 88,779
* In view of the innumerable sizes/numbers of the components it is not possible to give quantitative details.
2006-07 2005-06
18) Statement of Earning Per Share
Net Profit after tax attributable to shareholders 15,620 11,891
(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 Earning Per Share (In Rupees) 54.06 41.16
19) Deferred Tax

Major Components of Deferred Tax arising on account of temporary timing differences alongwith their movement as at March 31, 2007 are :
Movement During
Assets 31.03.06 the year 31.03.07
Provision for Doubtful debts / advances 182 2 184
Contingent Provisions 594 (100) 494
Others* 435 (12) 423
Total (A) 1,211 (110) 1,101

(Rs. in Million)
Movement During
31.03.06 the year 31.03.07
Liabilities
Depreciation on Fixed Assets 1,516 780 2,296
Allowances under Income Tax Act, 1961 462 6 468
Deferred Revenue Expenditure 12 - 12
Total (B) 1,990 786 2,776
Net Deferred Tax Liability (B) - (A) 779 896 1,675
Previous Year 1,100 (321) 779
*Includes Rs. 1 Million, impact of change in opening liability on account of Leave encashment due to transition provision of AS-15 (Revised)
‘Employee Benefits’.
20) The Balance due to Small Scale Enterprises as at March 31, 2007 is Rs. 176 Million (Amount due less than 30 days). A sum of Rs. 1 Million due to
these enterprises is under reconciliation as at March 31, 2007. 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

2006-07 2005-06
Sundry Debtors :
Balance at year end
Suzuki Powertrain India Ltd. 451 225
S Iberica (including Suzuki Madrid) 3 1
Suzuki GB PLC 6 10
Magyar Suzuki Corporation 0 7
Suzuki International Europe GMBH 9 9
Suzuki Philippines 31 -
Suzuki Italia SPA - 4
Loans and Advances
Suzuki Powertrain India Limited 465 509
Maximum Balance During the Year 566 984
22) Loans and Advances in nature of Loans given to Subsidiaries and Associates etc:
Name of the Company As at Maximum Balance As at Maximum Balance

31.3.07 during the year 31.3.2006 during the year
Suzuki Powertrain India Limited Associate 341 442 442 538
23) The company normally acquires vehicles under Finance Leases with the respective underlying assets as security. Minimum lease payments out-
standing as of 31st March 07 in respect of these assets are as follows.
(Rs in Million)
Due Total Minimum Interest not due Present Value of
Lease Payment Minimum Lease
Outstanding as Payments
Within One Year 1 0 1
Later than one Year but less than five Years 2 0 1
Total 3 0 2

Minimum Lease payments outstanding as on 31st March 07 in respect of assets taken on operating leases are as follows.
Due Total Minimum Contingent

Lease Payments Rent
Outstanding
as on 31st March 07
Within One Year 1 1
Later than one Year but less than five Years 3 1
Minimum Lease Contingent

Payment Rent
Paid During the year 1 1
Charged to P&L 1 1
24) Amalgamation of the Company’s wholly owned Subsidiary ‘Maruti Suzuki Automobile India Limited’ (MSAIL) with the Company
a) During the year pursuant to the scheme of amalgamation (‘the Scheme’) sanctioned by the Honorable High Court of Delhi which became
effective on November 13, 2006 (the date of filing of the approved scheme with the Ministry of Company Affairs), the entire business and all
assets and liabilities of MSAIL, a company engaged in automobile manufacturing were transferred to and vested in the Company from the
appointed date of April 1, 2006.
The amalgamation was accounted for under the “Pooling of Interest Method” method as prescribed by the Accounting Standard 14
“Accounting for Amalgamations” issued by the Institute of Chartered Accountants of India. Accordingly, the assets and liabilities of the
amalgamated company have been accounted for as follows:-
(i) The assets and liabilities as at April 1, 2006 were incorporated in the financial statements at book value of the company.
(ii) Debit balance in the Profit and Loss Account of MSAIL amounting to Rs. 84 Million as at April 1, 2006 was adjusted in the Opening
Surplus of profit & loss account as specified in the scheme of amalgamation.
(iv) 400,000 Equity Shares of Rs.10 each fully paid in MSAIL held as an investment by the Company have been extinguished.
(v) Pursuant to the amalgamation, profit before tax for the current year has been arrived at after deducting the loss of erstwhile MSAIL for
the period from April 1, 2006 to 31st March 2007, amounting to Rs. 1,132 Million . Therefore, the results for the year are not
comparable with the previous year.
25) The Company has during the year complied with the Accounting Standard 15 (revised 2005) ‘Employee Benefits’. Accordingly, the transition
adjustment (provision for leave encashment/ compensated absence) aggregating Rs. 4 Million (net of deferred tax asset Rs. 1 Million) has been
charged against the opening reserves as at April,1, 2006.
The Company has calculated the various benefits provided to employees as under
A. Defined Contribution Plans
a) Provident Fund
b) Superannuation Fund
c) Post Employment Medical Assistance Scheme.
During the year the Company has recognised the following amounts in the Profit and Loss account :-
(Rs. Million)
Employers Contribution to Provident Fund* 67
Employers Contribution to Superannuation Fund* 16
Employers Contribution to Post Employment Medical Assistance Scheme. 1
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. Million)
Employers contribution to Employee State Insurance.* 1
Employers contribution to Employee’s Pension Scheme 1995.* 26
* 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.

Leave Encashment/ Employees Retirement
Compensated Gratuity Fund Allowance
Absence
Discount Rate (per annum) 7.50% 7.50% 7.50%
Rate of increase in compensation levels 5.50% 5.50% 5.50%
Rate of return on plan assets. Not Applicable 8% Not Applicable
Expected Average remaining working lives of employees (years) 17 17 17
In calculating the leave encashment/compensated absence liability 23% of the leave has been assumed to be availed of/ encashed during the
year.
Absence
Present value obligation as at March,31, 2006 307 413 19
Impact of Transition provision of AS-15 5 -
Interest cost 23 31
Past Service cost - -
Current service cost 87 27
Curtailment cost - -
Settlement cost - -
Benefits Paid 74 16
Actuarial (gain)/ loss on Obligations 93 29 3
Changes in the Fair value of Plan Assets Employees Gratuity Fund

Fair value of Plan Assets as at March,31, 2006 404
Expected return on Plan Assets 32
Contributions -
Benefits Paid 17
Actuarial gain/ (loss) on Obligations 37
Fair value of Plan Assets as at March,31, 2007 456
Reconciliation of Present value of Defined Benefit Obligation and Fair value of Assets
Absence

Fair value of Plan Assets as at March,31, 2007 - 456
Funded Status (441) (27) (22)
Present value of unfunded obligation as at March,31, 2007 - -
Unfunded Acturial (gains)/ losses - -
Unfunded Net Asset/ (Liability) recognised in Balance Sheet. (441) (22)
Expenses recoginsed in Profit and Loss Account Leave Encashment/ Employees Retirement
Absence
Current service cost 87 27
Past Service cost - -
Interest cost 23 31
Expected return on Plan Assets - (32)
Curtailment cost - -
Settlement cost
Net Actuarial (gain)/ loss recognised during the year 93 29 3
Total Expense recognised in Profit & Loss Account 203 55 3
* Included in Salaries, Wages, Allownaces and Other Benefits under Employee Remuneration and Benefits (Refer schedule 17)
Constitution of Plan Assets Gratuity
(a) Debt Funds 392
(b) Special Deposit with RBI 52
(c) Others 40
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.
Estimated Contribution on account of Gratuity for FY2007-08 will be Rs.3 Million.

26) Statement of Transactions with Related Parties (on arm’s length price)
Holding Company Key Management Personnel Associates Fellow subsidiaries
Suzuki Motor Corporation Mr. Jagdish Khattar - Managing Director Asahi India Glass Limited Suzuki Motor Iberica S.A.
Mr. T. Kobyashi** - Joint Managing Director (Senior) Bharat Seats Limited (Including Suzuki Madrid S.A.,
Joint Ventures Mr. Hirofumi Nagao - Joint Managing Director Caparo Maruti Limited Suzuki Logistic Service,S.L.U.)
J.J. Impex (Delhi) Private Limited Mr. Shinichi Takeuchi - Joint Managing Director Climate Systems India Limited Suzuki France S.A.S.
Mark Exhaust Systems Limited Mr. Shuji Oishi*** - Marketing Director Denso India Limited Suzuki Italia S.P.A
Bellsonica Auto Component India Pvt Ltd Mr. Kinjo Saito* - Marketing Director Jay Bharat Maruti Limited Suzuki Australia Pty. Ltd.
Krishna Maruti Limited Suzuki Austria Automobil Handels GmbH
Subsidiaries Machino Plastics Limited Magyar Suzuki Corp.
Maruti Insurance Brokers Limited SKH Metals Limited**** Suzuki GB PLC
Maruti Insurance Distribution Services Limited Nippon Thermostat (India) Limited Suzuki Motor Poland Ltd.
True Value Solutions Limited Sona Koyo Steering Systems Limited Suzuki International Europe Gmbh
Maruti Insurance Agency Solution Limited Citicorp Maruti Finance Limited Suzuki Cars (Ireland) Limited
Maruti Insurance Network Services Limited Maruti Countrywide Auto Financial Services Limited Suzuki Powertrain India Limited *****
Maruti Insurance Agency Services Limited PT Indomobil Suzuki International
(Rs. in Million)
2006–07 2005–06
Joint Subsidiaries Associates Holding Fellow Key Total Joint Subsidiaries Associates Holding Fellow Key Total
Ventures Company Subsidiaries Management Ventures Company Subsidiaries Management
Personnel Personnel
Outstanding at year end

Loans and advances recoverable
Suzuki PowerTrain India Limited - - - - 465 - 465 - - - - 509 - 509
Krishna Maruti Limited - - 162 - - - 162 - - 30 - - - 30
Others 62 0 135 25 - - 222 28 1,251 181 1 - - 1,461
Total 62 0 297 25 465 - 849 28 1,251 211 1 509 - 2,000
Amounts payable
Suzuki Motor Corporation - - - 2,833 - - 2,833 - - - 2,043 - - 2,043
Others 119 1 1,514 - 387 - 2,021 87 9 1,161 - 101 - 1,358
Total 119 1 1,514 2,833 387 - 4,854 87 9 1,161 2,043 101 - 3,401
Guarantees given to third
parties by the Company
Suzuki PowerTrain India Limited - - - - 104 104 - - - - - 256 - 256
Others - - - - - - - 32 2,663 57 - - - 2,752
Total - - - - 104 - 104 32 2,663 57 - 256 - 3,008
Proposed Dividend
Suzuki Motor Corporation 705 705 548 548
Total - - - 705 - - 705 - - - 548 - - 548
Amount recoverable - -
Jay Bharat Maruti Limited - - 147 - - - 147 - - 146 - - - 146
Machino Plastics Limited - - 213 - - - 213 - - 130 - - - 130
SKH Metals Limited - - 155 - - - 155 - - 64 - - - 64
PT Indomobil Suzuki International - - - - 201 - 201 - - - - - - -
Others 22 - 150 89 50 - 311 - 12 184 4 31 - 231
Total 22 - 665 89 702 - 1,478 - 12 524 4 256 - 796
Transaction during the year
Purchases of Capital items
Suzuki Motor Corporation - - - 2,081 - - 2,081 - - - 387 - - 387
Others - - 3 - 1 - 4 - - - - 1 - 1
Total - - 3 2,081 1 - 2,085 - - - 387 1 - 388
Sale of goods
Machino Plastics Limited - - 143 - - - 143 - - 19 - - - 19
PT Indomobil Suzuki International - - - - 202 - 202 - - - - - - -
SCHEDULES

Others 120 - 237 88 112 - 557 - 11 343 6 1,831 - 2,191
Total 120 - 535 88 570 - 1,313 - 11 499 6 1,935 - 2,451
Maruti Udyog Limited | ANNUAL REPORT | 2006-2007

75
76
(Rs. in Millions)
2006–07 2005–06
Joint Subsidiaries Associates Holding Fellow Key Total Joint Subsidiaries Associates Holding Fellow Key Total
Ventures Company Subsidiaries Management Ventures Company Subsidiaries Management
Personnel Personnel
Other Income
Finance income/ commission/
Dividend
Citicorp Maruti Finance Limited - - 95 - - - 95 - - 70 - - - 70
Others 13 - 191 - - - 204 10 12 212 - - - 234
Total 13 - 333 - 88 - 434 10 12 314 - 112 - 448
Other Misc Income
SKH Metals Limited - - 41 - - - 41 - - 35 - - - 35
Machino Plastic Limited - - 37 - - - 37 - - 34 - - - 34
Others - - 30 1 - - 31 - - 42 - - - 42
Total - - 174 1 57 - 232 - - 182 - 40 - 222
Expenditure
Purchases of goods
Jay Bharat Maruti Limited - - 4,455 - - - 4,455 - - 3,659 - - - 3,659
Krishna Maruti Limited - - 3,820 - - - 3,820 - - 3,203 - - - 3,203

Others 1,731 - 12,913 - 3,156 - 17,800 1,085 - 9,440 - 1,795 - 12,320
Total 1,731 - 21,188 9,642 3,156 - 35,717 1,085 - 16,302 12,037 1,795 - 31,219
Royalty - -
Total - - - 3,673 - - 3,673 - - - 2,528 - - 2,528
Receiving of services - -
Suzuki Motor Corporation - - - 405 - - 405 - - - 239 - - 239
Others - 5 - - - - 5 - 33 - - 1 - 34
Total - 5 - 405 - - 410 - 33 - 239 1 - 273
Other-expenditure
Suzuki International Europe Gmbh - - - - 2 - 2 - - - - 23 - 23
Suzuki GB PLC. - - - - 2 - 2 - - - - 22 - 22
Others - - - - - - - - - 2 1 15 - 18
Total 0 - 0 - 4 - 4 - - 2 1 60 - 63
Managerial Remuneration
Mr. Jagdish Khattar - - - - - 21 21 - - - - - 15 15
Mr. T Kobyashi - - - - - 6 6 - - - - - - -
Mr. Hirofumi Nagao - - - - - 14 14 - - - - - 12 12
Mr. Shinichi Takeuchi - - - - - 14 14 - - - - - 12 12
Mr. Shuji Oishi - - - - - 13 13 - - - - - - -
Mr. Kinjo Saito - - - - - 0 0 - - - - - 11 11
Total - - - - - 68 68 - - - - - 50 50
Note:
*Mr. Kinjo Saito resigned on 13th April 2006.
** Mr. T Kobyashi Joined on 14th November 2006
***Mr. Shuji Oishi Joined on 13th April 2006
****SKH Metals Limited formerly known as Mark Auto Industries Limited
*****Suzuki Powertrain India Limied is also an associate of Maruti Udyog Limited.
SCHEDULES
27) The company has the following provisions in the books of account as on 31.03.2007 :
(Rs in Million)
Description Balance as on 01.04.06 Additions during the year Utilized/ Reversed during the year Balance as on 31.03.07
a) Litigation related provisions 833 167 290 710
b) Warranty / Product Recall 714 289 462 541
c) Others 587 45 103 529
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.
28) Derivative Instruments outstanding at the Balance Sheet date
1(a) Forward Contracts on Imports/ Royalty payables: The Company has outstanding forward contracts to buy JPY 6,411 Million (Previous year JPY 7,000 Million) against USD at an average rate
of JPY/USD 118.14 (Previous year JPY/USD 115.38) maturing over a period of next 3 months. The above contracts have been undertaken to hedge against the foreign exchange exposures
on Import/Royalty payables.
(b) Forward Contracts on Exports: The Company has outstanding forward contracts to sell USD 70 Million (Previous year Nil) against INR at an average rate of USD/INR 45.42 maturing over
a period of next 12 months. The above contracts have been undertaken to hedge against the foreign exchange exposures on Exports receivables.
(c) Interest Rate swap: The Company has entered into a Constant Maturity Interest Rate swap in the year 2001-02 with a bank for its Non-convertible Debentures (Series - II), under which the
bank will bear the fixed interest liability of 9% p.a. till maturity and the Company will bear the floating interest burden at a fixed spread over the 5 year Government Security yields. The
outstanding liability of the underlying debentures was Rs.400 million as on 31st March 2007. The above contract has been undertaken to hedge against the interest rate risk on debenture
interest liability.
(d) USD Floating rate/INR Floating rate cross-currency swap: Consequent to the merger of Maruti Suzuki Automobiles India Ltd, the Company has taken over the USD Floating rate/INR Floating
rate Cross-currency swap agreements on foreign currency loan of USD 124.70 Million. Under these swap agreements, (i) the USD principal has been swapped against the INR principal on
the drawdown date (at inception), (ii) the USD principal repayment obligations swapped against fixed INR payments and (iii) the USD interest rate (6 Million USD British Bankers Association
Interest Settlement Rate (BBA LIBOR) + spread) swapped against the INR interest rate (6 Million INR Mumbai Interbank Overnight Indexed Swap + spread) over the life of foreign currency
loan. The above contracts have been undertaken to hedge against the foreign currency risk and USD interest rate risk.
2 The foreign currency exposures that are not hedged by a derivative instrument or otherwise are as follows:
Amount. in Million
YEN USD EURO Swiss Franc
Receivables 239 - -
Payables 911 73 2 6
29) The details of Investment as per Schedule 7 are provided below :

(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 31.03.07 31.03.06 31.03.07 31.03.06 31.03.07 31.03.06
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 10 10 465,000 465,000 5 5
Denso India Limited 10 10 2,862,758 2,862,758 73 73
Jay Bharat Maruti Limited 5 5 3,170,000 3,170,000 16 16
Machino Plastics Limited 10 10 941,700 941,700 5 5
Sona Koyo Steering Systems Limited 2 2 3,450,000 3,450,000 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 - 360,000 - 36 -
Suzuki Powertrain India Limited (Company under same management) 10 10 76,200,000 34,300,000 762 343
1,425 970
Less :Provision for diminution in value 104 104
1,321 866
*Formerly known as Mark Auto Industries Limited
Unquoted Equity Shares in Subsidiary Companies (Fully Paid) :
Maruti Insurance Brokers Limited 10 10 50,000 50,000 0 0
Maruti Insurance Distribution Services Limited 10 10 50,000 50,000 0 0
True Value Solutions Limited 10 10 50,000 50,000 0 0
Maruti Insurance Agencies Solutions Limited 10 10 50,000 50,000 0 0
Maruti Insurance Agencies Network Limited 10 10 50,000 50,000 0 0
Maruti Insurance Agency Services Limited 10 - 50,000 - 0 -
Maruti Suzuki Automobiles India Ltd* - 100 2,800,000 - 280
3 282
* Merged with Maruti Udyog Limited with effect from 01-April-2006.
Other Long Term Investments :
Unquoted Redeemable Preference Shares (Fully Paid) :
Western Paques (India) Limited 14.50% 100 100 500,000 500,000 50 50
Less :Provision for diminution in value 50 50
50 50
- -

(Rs. in Million)
%age 31.03.07 31.03.06 31.03.07 31.03.06 31.03.07 31.03.06
Units of Debt Mutual Funds :
Long Term (Unquoted)
ABN Amro FTP Series 2 Growth 10 10 15,000,000 15,000,000 150 150
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 -
Birla Fixed Term Plan - Series C - Growth 0 10 - 25,794,534 - 258
Birla Fixed Term Plan Series H Growth 10 10 15,000,000 15,000,000 150 150
Birla FTP Series O Growth 10 0 15,000,000 - 150 -
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 FTP Series 3A Growth 1000 1000 150,000 150,000 150 150
Deutsche Fixed Term Fund Series 5 Growth 10 10 15,000,000 15,000,000 150 150
DWS Fixed Term Fund Series 18 Inst Plan Growth 10 0 10,000,000 - 100 -
DWS Fixed Term Fund Series 21 Inst Plan Growth 10 0 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 -
HDFC FMP 13 M March 06 (1) Inst Growth 10 10 15,000,000 15,000,000 150 150
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 -
HSBC Fixed Term Series 4 Growth 10 10 15,000,000 15,000,000 150 150
JM Fixed maturity fund series IV Yearly plan growth 10 - 10,000,000 - 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 1 Growth 10 - 10,000,000 - 100 -
Kotak FMP Series 13 Growth 10 10 15,000,000 15,000,000 150 150
Kotak FMP Series XIV Growth 10 10 10,000,000 10,000,000 100 100
LIC MF FMP Series 15 13 months Growth 10 - 25,000,000 - 250 -
LIC MF FMP Series 5 Growth 10 10 15,000,000 15,000,000 150 150
Principal Deposit Fund - (FMP-6) - 371 Days Plan March05 - Growth - 10 - 15,000,000 - 150
Principal PNB Fixed Maturity Plan - 385 Days Series 1 Inst Growth 10 10 15,000,000 15,000,000 150 150
Principal PNB Fixed Maturity Plan - 460 Days Series 1 Growth 10 10 15,000,000 15,000,000 150 150
Principal PNB Fixed maturity plan (FMP 31) Series III Nov 06 Growth 10 - 25,000,000 - 250 -
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 -
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 -
Prudential ICICI FMP - 16 Month Inst Growth XXVIII 10 10 10,000,000 10,000,000 100 100
Prudential ICICI FMP - Growth Yearly XII Institutional - 10 - 20,000,000 - 200
Reliance Fixed horizon fund II Annual Plan Plan Series IV 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 -
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 Magnum Debt Series - 13 Months (mar 05) Growth - 10 - 12,972,240 - 130
Grindlays Fixed Maturity - 4th Plan B - Growth - 10 - 20,000,000 - 200
Standard Chartered Fixed Maturity - 2nd Plan - Growth 10 10 15,000,000 15,000,000 150 150
Standard Chartered fixed maturity 10th Plan Growth 10 - 10,000,000 - 100 -
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 -
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 -
Tata Fixed Horizon Series 1 - Plan A (371 days) - Growth - 10 - 10,000,000 - 100
Tata Fixed Horizon Series 2 - Plan C 18 Months Growth 10 10 10,000,000 10,000,000 100 100
Tata Fixed Horizon Series 3 - Scheme D Growth 10 10 10,000,000 10,000,000 100 100
Templeton fixed horizon fund series I 15 Month Plan Growth 10 - 20,000,000 - 200 -
Templeton Fixed Tenure Fund Series V 13 month Growth 10 10 15,000,000 15,000,000 150 150
UTI Fixed Term Income Fund Series 1 Plan 18 Q4 Growth 10 10 15,000,000 15,000,000 150 150
Birla Floating rate fund Long term growth - 10 - 40,647,469 - 450
Grindlays Floating Rate Fund - LT- Institutional Plan B - Growth - 10 - 84,637,152 - 850
HSBC Floating Rate Fund Long term plan Inst Growth - 10 - 67,769,699 - 700
Kotak Floater Long term Growth - 10 - 15,225,604 - 159
Pru-ICICI Long term Floating rate Plan B Growth - 10 - 67,292,163 - 700
Templeton Floating Rate income fund Long Term Plan Growth - 10 - 94,941,673 - 1,150
Birla Cash Plus Inst Premium Growth 10 10 90,412,073 90,412,073 1,000 1,000
Canliquid Institutional Growth 10 10 19,597,852 19,597,852 250 250
Deutsche Money Plus Fund Inst Growth 10 - 77,637,983 - 800 -
DSP ML Liquidity Fund Inst Growth 1,000 1,000 988,427 988,427 1,000 1,000
HDFC Liquid Fund premium plus plan Growth 10 - 33,406,382 - 500 -

SCHEDULES
(Rs. in Million)
%age 31.03.07 31.03.06 31.03.07 31.03.06 31.03.07 31.03.06
HSBC Liquid plus fund Inst Plus Growth 10 - 96,558,755 - 1,000 -

ING Vysya Liquid fund Super Inst Plan growth 10 - 89,830,413 - 1,000 -
JM Floater fund Short Term Plan Growth - 10 - 26,284,433 - 300
Kotak Liquid Inst Premium Growth 10 10 73,250,089 53,435,946 1,050 750
LIC MF Floating Rate fund Growth 10 10 22,478,982 22,478,982 250 250
LIC MF Liquid Plan Growth 10 10 79,317,397 79,317,397 1,000 1,000
Principal CMF Liquid Inst Premium Growth 10 10 103,485,709 69,240,893 1,150 750
Prudential ICICI Floating Rate Plan Option D Growth 10 10 49,646,240 49,646,240 502 502
Prudential ICICI Liquid Plan Super Inst Growth 10 10 281,202,539 98,634,407 3,000 1,000
Reliance liquidity fund growth 10 - 44,632,098 - 500 -
Sundaram Money Fund Super Inst Growth 10 10 13,709,993 13,709,993 200 200
Tata liquid fund SHIP growth 1,000 - 362,940 - 500 -
UTI Liquid cash plan Inst plan growth 1,000 - 406,207 - 500 -
- 24,052 14,398
Current (Unquoted)
Birla Cash Plus Institutional Premium - Dividend - 10 - 52,477,016 - 526
DSP Merrill Lynch Liquidity Fund Institutional Plan -Dividend - 1,000 - 1,671,050 - 1,672
Kotak Liquid Institutional Premium Plan - Dividend - 10 - 53,359,674 - 536
LICMF Liquid Fund - Dividend - 10 - 41,815,612 - 458
UTI Money Market Fund - Dividend - 10 - 22,790,979 - 397
Birla FMP Series 2 quarterly Div payout 10 - 24,927,709 - 250 -
Birla FTP HY Series 1 Div payout 10 - 10,000,000 - 100 -
Birla FTP Series 5 quarterly Div payout 10 - 20,000,000 - 200 -
Birla FTP Series 6 quarterly Div payout 10 - 25,000,000 - 250 -
DBS Chola FMP Series 6 (Quarterly Plan 3) Dividend 10 - 20,000,000 - 200 -
DSP ML FTA Series 1 I Dividend 1,000 - 1,50,000 - 150 -
Deutsche Fixed Term Fund Series 8 - 10 - 25,000,000 - 250
DWS Fixed Term Fund Series 23 Dividend 10 - 25,000,000 - 250 -
ING Vysya Fixed maturity series XX Div 10 - 10,000,000 - 100 -
ING Vysya Fixed maturity series XXI Div 10 - 10,000,000 - 100 -
JM Fixed maturity fund series IV quarterly plan 2F 1 Dividend 10 - 15,170,984 - 152 -
Kotak FMP 3M Series 10 Dividend 10 - 25,243,621 - 252 -
Kotak FMP Series 19 Dividend - 10 - 20,000,000 - 200
Principal PNB Fixed maturity plan (FMP 34) 91 days Series VII Feb 07 Dividend 10 - 25,000,000 - 250 -
Principal PNB Fixed maturity plan (FMP 35) 91 days Series VIII Feb 07 Dividend 10 - 20,000,000 - 200 -
Principal PNB Fixed maturity plan (FMP 38) 91 days Series IX Dividend 10 - 20,000,000 - 200 -
Pru ICICI FMP Monthly Plan XXVII Dividend - 10 - 25,000,000 - 250
Pru ICICI FMP series 34 Three month plus plan A Div 10 - 50,903,464 - 509 -
Pru ICICI FMP series 35 Three month plan A Div 10 - 50,680,000 - 507 -
Pru ICICI FMP series 35 Three month plan B Div 10 - 50,492,485 - 505 -
Pru ICICI FMP series 35 Three month plan C Div 10 - 25,000,000 - 250 -
Reliance Fixed horizon fund I Quarterly Plan Series IV Div 10 - 50,000,000 - 500 -
Reliance Fixed horizon fund II Quarterly Plan Series I Div 10 - 40,000,000 - 400 -
Reliance Fixed horizon fund II Quarterly Plan Series II Div 10 - 50,000,000 - 500 -
SBI Debt fund series (90 days) February 07 Dividend 10 - 20,000,000 - 200 -
Standard Chartered Fixed Maturity 4th Plan Dividend - 10 - 25,096,250 - 251
Standard Chartered fixed maturity Plan Quarterly Series 3 Div 10 - 25,369,000 - 254 -
Sundaram BNP Paribas FTP Series XXII 90 days Dividend 10 - 15,000,000 - 150 -
Sundaram BNP Paribas FTP Series XXIII 90 days Dividend 10 - 10,000,000 - 100 -
Tata Fixed horizon fund series 8 scheme D Div IP 10 - 10,000,000 - 100 -
Tata Fixed horizon fund series 8 scheme E Div IP 10 - 15,211,390 - 152 -
Tata Fixed horizon fund series 8 scheme F Div RP 10 - 20,180,904 - 202 -
UTI FMP Half yearly series HFMP / 1206 Dividend 10 - 20,360,339 - 204 -
UTI FMP Quarterly series QFMP / 0107/1 Dividend 10 - 20,281,444 - 203 -
UTI FMP Quarterly series QFMP / 0207/1 Dividend 10 - 25,251,756 - 252 -
Can Floating Rate STP Dividend - 10 - 19,913,628 - 204
LICMF Floating Rate Fund Dividend - 10 - 5,598,203 - 57
Prudential ICICI Floating Rate Plan D - Dividend - 10 - 5,497,581 - 55
8,605 4,856
Less: Provision for diminution: - 1
8,605 4,855
30) Following Short term Investments were Purchased and Redeemed / Sold during the year:
(Rs. in Million)
Name of the Company / Mutual Fund Face Value Purchase Cost Sale / Redemption
Proceeds
Units of Mutual Funds 96,785 98,940 98,987
96,785 98,940 98,987
Previous Year: 73,884 76,697 76,740

31) Statement on Assets, Liabilities, Income & Expenses of Joint Ventures
Details of 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.
Sl.No. Name of Company % Ownership Country of

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
2006-07 2005-06
Amount Amount
Rs. in Million Rs. in Million
Detail of Assets
Gross Block 661 584
Accumulated Depreciation 235 193
Net Block 426 391
Capital Work in Progress 27 6
Investments 1 2
Inventories 111 84
Sundry Debtors 124 85
Cash and Bank Balances 70 6
Other Current Assets 0 0
Loans & Advances 41 34
Deferred Tax Assets 9 12
Detail of Liabilities
Secured Loans 169 162
Unsecured Loans 228 124
Current Liabilities 183 151
Provisions 1 1
Deferred Tax Liabilities 46 43
Detail of Income
Sales(Net) 1,493 975
Income from services 60 33
Other income 19 14
Detail of Expenses
Consumption of Raw Material and Components 1,061 648
Purchase of Traded Goods 65 49
Employees Remuneration and Benefits 61 45
Manufacturing Administrative and Other Expenses 93 88
Selling and Distribution Expenses 9 6
Financial Expenses 28 19
Depreciation 42 37
(Increase) / Decrease to Work in progress and Finished Goods (13) (10)
Tax Expense Current 3 2
Tax Expense Deffered 6 8
Details of Contingent Liabilities
Disputed sales tax /service tax demand - 7
Claims against company lodged by various parties 3 3
Capital commitments 2 3
Outstanding commitments under letter of credit 20 26
(Increase) / Decrease to Work in progress and Finished Goods (13) (10)
Tax Expense Current 3 2
Tax Expense Deffered 6 8
Details of Contingent Liabilities
Disputed sales tax /service tax demand - 7
Claims against company lodged by various parties 3 3
Capital commitments 2 3
Outstanding commitments under letter of credit 20 26

32) Pursuant to clause ix (b) of Section 227 (4A) of the Companies Act, 1956, the details of disputed dues are as follows:
Name of the Statute Nature of Amount Amount deposited under Period to which the Forum where dispute
the Dues (Rs. in Million) protest (Rs. in Million) Amount relates is pending
Income Tax Act, 1961 Income Tax 6 - 1992-93 A.Y Commissioner of Income Tax (Appeals) (CIT( A)) & High Court
Interest 19
Income Tax 36 35 1994-95 A.Y CIT( A) & High Court
Interest 16
Penalty 24 CIT (A)
Income Tax 245 694 1995-96 A.Y. CIT( A) & High Court
Interest 479
Penalty 48 CIT (A)
Interest 157
Penalty 112 112 CIT (A)
Income Tax - 3 1997-98 A.Y. High Court
Interest 5
Income Tax 1,644 1,650 1999-2000 A.Y. Income Tax Appleant Tribunal (ITAT) & High Court
Interest 1,759
Income Tax 14 17 2000-2001 A.Y. High Court
Interest 2
Income Tax 780 1,230 2003-04 A.Y. CIT (A)
Interest 371
Income Tax 1,424 614 2004-05 A.Y. CIT (A)
Interest 492
TDS 356 2002-03 and 2004-05 A.Y. CIT (A)
Interest on TDS 188
TOTAL 8,528 4,867
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 44 - Jul 01 to Sep 2005 Customs, Excise & Service Tax Appellate Tribunal
Penalty 37
Excise Duty 511 - June 88 to June 93 High Court
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 5 Jan-03 to Apr-04 Customs, Excise & Service Tax Appellate Tribunal.
Penalty 15
Excise duty 5 Dec 99-Aug 2004 Customs, Excise & Service Tax Appellate Tribunal.
Penalty 5
Excise duty 4 Aug95-Aug00 High court of Haryana & Punjab
Penalty 1
Excise duty 8 Aug-Feb 02 High court of Haryana & Punjab
Penalty 2
Excise duty 115 July 00-March 05 Customs, Excise & Service Tax Appellate Tribunal
Penalty 115
Excise duty 92 Aug 01 to Dec 03 Customs, Excise & Service Tax Appellate Tribunal
Penalty 2 Supreme Court of India
TOTAL 1,420 38
Customs Act, 1962 Customs duty 22 22 Feb-03 to August03 Customs, Excise & Service Tax Appellate Tribunal.
Interest 5
TOTAL 27.37 22
SCHEDULES
GRAND TOTAL 10,027 4,930
33) Previous Year’s figures have been recasted / regrouped where considered necessary to make them comparable with the current year’s figures.

81
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 31-03-07
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 Liabilites Total Assets
76,522 76,522
Sources of Funds
Paid-up Capital Reserve & Surplus
1,445 67,094
Secured Loans Unsecured Loans

635 5,673
Application of Funds
Net Fixed Assets Investments
28,896 34,092
Net Current Assets Misc. Expenditure
13,444 –
Accumulated Losses
Nil
IV. Performance of Company

(Amount in Rupees Million)
Turnover Total Expenditure
171,442 148,644
Profit Before Tax Profit After Tax

22,798 15,620
Earning per share in Rs. Dividend rate

(Face Value Rs. 5)
54.06 90%
V. Generic Name of Principal Product of Company

(As per monetary terms)
Item Code No.(ITC Code) 8703.00
Product Description Motor Cars

SCHEDULES
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
Insurance Insurance Solutions Insurance Insurance Insurance
Distribution Brokers Limited Agencies Agencies Agencies
Services Limited Solutions Network Services
Limited Limited Limited Limited
The financial year of the subsidiary company ended on 31.03.07 31.03.07 31.03.07 31.03.07 31.03.07 31.03.07
Number of shares in the subsidiary company held by

Maruti Udyog Limited at the above date 50,000 50,000 50,000 50,000 50,000 50,000
Extent of Holding 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
Udyog Limited:
i) dealt with in the Accounts of Maruti Udyog Limited

amounted to :
a) For subsidiary’s Financial Year ended on 31st,

March, 2007 Nil Nil Nil Nil Nil Nil
b) For previous Financial Years of the subsidiary

since it become subsidiary of Maruti
Udyog Limited Nil Nil Nil Nil Nil Nil
ii) not dealt with in the Accounts of Maruti Udyog

Limited amounted to:
a) For subsidiary’s Financial Year ended on

31st March, 2007 Rs. 21,956.570 Rs.109,007,900 Rs. 2,356,021 Rs. 21,346,850 Rs. 32,321,120 Rs. (-) 59,470
b) For previous Financial Years of the

subsidiary since it become subsidiary Rs. 34,471,789 Rs. 235,697,695 Rs. 2,002,644 Rs. 24,473,111 Rs. 25,575,483 Nil
of Maruti Udyog Limited
New Delhi JAGDISH KHATTAR H. NAGAO ANIL RUSTGI

April 24, 2007 Managing Director & CEO Joint Managing Director Company Secretary & Chief Legal Officer

Financial Statement of Subsidiary Companies 2006-2007
(Amount in Rs.)
S.No. Particulars Maruti Maruti Maruti Maruti Maruti True Value
Insurance Insurance Insurance Insurance Insurance Solutions
Business Distribution Agency Agency Agency Ltd.
Agency Ltd. Services Ltd. Network Ltd. Solutions Ltd. Services Ltd.
1 Capital 500,000 500,000 500,000 500,000 500,000 500,000
2 Reserves & Surplus 344,705,595 59,428,359 57,896,604 45,819,961 (59,470) 4,358,665
3 Total Assets 345,205,595 59,928,359 58,396,604 46,319,961 440,530 4,858,665
4 Total Liabilites 345,205,595 59,928,359 58,396,604 46,319,961 440,530 4,858,665
5 Investments 143,317,299 27,049,429 12,749,517 12,749,517 - -
6 Turnover Income 569,237,725 106,285,398 162,677,240 107,465,594 - 21,147,359
7 Profit Before Tax 162,250,289 32,556,570 48,821,121 32,246,850 (59,470) 3,648,980
8 Tax 53,242,389 10,600,000 16,500,000 10,900,000 - 1,292,959
9 Profit After Tax 109,007,900 21,956,570 32,321,121 21,346,850 (59,470) 2,356,021

Auditors Report

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Auditors Report

Uploaded by

Copyright:

Available Formats

AUDITORS’ REPORT

Maruti Udyog Limited | ANNUAL REPORT | 2006-2007 51

52 Maruti Udyog Limited | ANNUAL REPORT | 2006-2007

Maruti Udyog Limited | ANNUAL REPORT | 2006-2007 53

DEFERRED TAX (Note 19 on Schedule 23)

INVESTMENTS 7 34,092 20,512

CURRENT ASSETS, LOANS AND ADVANCES

LESS: CURRENT LIABILITIES AND PROVISIONS

Total 76,522 56,022

SIGNIFICANT ACCOUNTING POLICIES 22

ANUPAM DHAWAN JAGDISH KHATTAR H. NAGAO ANIL RUSTGI

54 Maruti Udyog Limited | ANNUAL REPORT | 2006-2007

Interest 20 376 204

Significant Accounting Policies 22

Maruti Udyog Limited | ANNUAL REPORT | 2006-2007 55

A. Cash flow from Operating Activities:

Adjustments for changes in Working Capital :

Cash generated from Operating Activities 26,632 18,030

- Taxes (Paid) / Received (Net of TDS) (6,352) (5,804)

Net Cash from Operating Activities 20,280 12,226

B. Cash flow from Investing Activities:

Net Cash from Investing Activities (24,368) (5,307)

56 Maruti Udyog Limited | ANNUAL REPORT | 2006-2007

C. Cash flow from Financing Activities:

Net Cash from Financing Activities 4,300 (3,197)

Net Increase/(Decrease) in Cash & Cash Equivalents 212 3,722

Cash and Cash Equivalents comprise 14,228 14,016

This is the Cash Flow Statement referred to

ANUPAM DHAWAN JAGDISH KHATTAR H. NAGAO ANIL RUSTGI

Maruti Udyog Limited | ANNUAL REPORT | 2006-2007 57

SCHEDULE 2 - RESERVES AND SURPLUS

SCHEDULE 3 - SECURED LOANS

SHORT TERM LOANS

Maruti Udyog Limited | ANNUAL REPORT | 2006-2007 59

LONG TERM LOANS - FROM BANKS

SCHEDULE 5 - FIXED ASSETS

Particulars Gross Block Depreciation

SCHEDULE 6 - CAPITAL WORK-IN-PROGRESS

Plant and Machinery 943 667

60 Maruti Udyog Limited | ANNUAL REPORT | 2006-2007

SCHEDULE 10 - CASH AND BANK BALANCES As at As at

Maruti Udyog Limited | ANNUAL REPORT | 2006-2007 61

INTEREST ACCRUED ON DEPOSITS, LOANS AND ADVANCES

Unsecured - Considered Good 199 218

SCHEDULE 12 - LOANS AND ADVANCES As at As at

Unsecured - Considered Good

62 Maruti Udyog Limited | ANNUAL REPORT | 2006-2007

SCHEDULE 13 - CURRENT LIABILITIES (Rs. in Million)

Sundry Creditors (Note 20 on Schedule 23) 9,096 5,551

*Not due to be credited to the Investor Education and Protection Fund

Vehicles 161,367 138,661

Spare Parts/Dies and Moulds/Components 10,075 8,382

Maruti Udyog Limited | ANNUAL REPORT | 2006-2007 63

SCHEDULE 17 - EMPLOYEES REMUNERATION AND BENEFITS

For the year For the year

64 Maruti Udyog Limited | ANNUAL REPORT | 2006-2007

SCHEDULE 18 - MANUFACTURING, ADMINISTRATIVE AND OTHER EXPENSES (Rs. in Million)

SCHEDULE 19 - SELLING AND DISTRIBUTION EXPENSES

For the year For the year

For the year For the year

Maruti Udyog Limited | ANNUAL REPORT | 2006-2007 65

For the year For the year

1) BASIS FOR PREPARATION OF ACCOUNTS