07 08

a million
promises...
EQUITY STRUCTURE
Company at
a Glance 54.21% 45.79%
Suzuki Others
Motor (Financial institutions,
Corporation mutual funds, banks,
public etc.)
Maruti Suzuki India Limited (formerly Maruti Udyog Limited), a

subsidiary of Suzuki Motor Corporation of Japan, is India's largest
passenger car company, accounting for over 50% of the domestic car
market.
From its very inception, Maruti Suzuki has brought to India, a simple yet
powerful Japanese philosophy smaller, fewer, lighter and more
beautiful.
The benefits of product quality, safety and cost consciousness have

been fused and filliped in order to present the Indian populace with cars
high on the style and design quotient. The extreme relevance of our
brands in the Indian car arena, in beat with the lifestyles and desires of
our changing nation has made us the market favourites, for over two
decades. Gaining ground from strength to strength, we are inspirited
now more than ever, to push boundaries and conquer new horizons.
02 Maruti Suzuki India Limited ANNUAL REPORT 2007-08

7,000,000 711,818 53,024
Cars produced and sold Our domestic car sales Our car exports for
cumulatively for 2007-08. 2007-08.
INR 1 7,308 Mn INR 188,238 Mn

Recorded Profit after Total income in 2007-08.
Tax in 2007-08.
600 2,628 7,090

The number of Maruti The number of workshops Our employee strength
Suzuki sales outlets in 393 that provide customers (March 2008).
towns and cities. with maintenance support
in 1220 cities.
COMPANY AT A GLANCE 03
a million
promises...
Chairman's
Message
Mr. R. C. Bhargava
08 Maruti Suzuki India Limited ANNUAL REPORT 2007-08 Chairman
"One of Maruti's great
strengths is that we
have internal resources
to finance both R&D
expansion as well as
capital investments. The
higher interest rates,
and the risk of making
large borrowings to
finance capital costs,
will not affect us."
Maruti Suzuki is now very much on the global map, recently being rated as the fourth
most reputed automobile company in the world. This has happened because of the
contribution of all the stake holders of Maruti.
Dear Shareholder, wisdom and foresight by gradually

diluting its shareholding in the
It gives me great pleasure to reach Company and listing Maruti on the
you through this Annual Report. My stock exchange. This has created
association with Maruti goes back conditions for the Company to
27 years, with a break of only a few compete on equal terms with the
years when I was not directly best in the world.
"The employees of connected with the Company.
Maruti, whether they are The employees of Maruti, whether
technicians, engineers or Suzuki Motor Corporation has been a they are technicians, engineers or
pillar of strength and has unstintingly sales persons, have fully imbibed the
sales persons, have fully supported the Company ever since Japanese work culture of making
imbibed the Japanese we signed the Joint Venture and constant improvements, and placing
License Agreements on 2nd October the prosperity of the Company as the
work culture means of their own advancement. I
1982. The Government of India
of making constant recognized this and awarded believe there are very few companies
improvement, and placing Chairman O. Suzuki with the Padma in India where this kind of employee
Bhushan. The role of the Government involvement, commitment and
the prosperity in the growth of Maruti was no less performance can be found. This
of the Company as the important. A partnership flourishes should be a source of great comfort
only when both partners add value. to you, because it assures the future
means of their own success of the Company.
The Government also showed great
advancement."
CHAIRMAN'S MESSAGE 09
a million
promises...
The Indian automobile component

industry has come of age. We now
have some world class manufacturers
in India and Indian companies are
acquiring manufacturing companies
abroad. The growth of the Indian
automobile industry and of Maruti
has been possible because of the
support from our suppliers. We look
forward to all of them growing with us.
Maruti Suzuki dealers of cars and

spare parts are our interface with
customers. It is through their efforts
that Maruti remains by far the biggest
car company in India, with a market
share of 54%. I am sure that they will
continue to do all that is required to
maintain the leadership position of
the Company. The Indian economy has grown at a
compound rate of about 9% annually
The authorised service stations of for the last 4 years. The automobile
Maruti should not be forgotten. They industry has correspondingly grown
are spread all over India and give rapidly. This year, there are concerns
huge comfort to owners of Maruti about a slow down. The sub prime
vehicles because of the assurance of crisis in the USA, accompanied by the
service support, whenever and where huge rise in crude oil prices have
ever needed. triggered inflationary pressures in
most parts of the world, particularly
the developing countries. Interest
"Maruti is working at rates have gone up, and money
developing vehicles supply is being tightened by the
which will use cheaper Central Banks. The general
expectation is that industrial growth,
alternative fuels like including the sale of automobiles, will
CNG. The R&D effort be adversely affected. So far, during
the first three months of this year, the
will also have to enable Company has done quite well
our vehicles to meet the recording a sale of 180,093
new emission and vehicles in the domestic market - a
growth rate of 12%. The Company will
safety regulations, continue to make all efforts to
which are to come into maintain a reasonable rate of growth.
force in 2010."
Personally, I expect the GDP growth to
still exceed 8% this year and, because
of the excellent models which the
Company has launched, to continue
to do well.

Maruti Suzuki started exports in the alternative fuels like the CNG. The should all stake holder interests be
late eighties and has since then R&D effort will also have to enable well protected, but the environmental
exported cars to more than a our vehicles to meet the new impact of operations recognized and
hundred countries of the world. emission and safety regulations properly safeguarded. This is very
This year, it will re-enter the European which are to come into force in 2010. much a part of the Company's
market with a highly fuel efficient and corporate social responsibility
environment friendly compact car. At the same time, Suzuki's approach.
This car will also be sold in India and unmatched expertise will continue to
other global markets. help us expand and modernize our I thank you for the confidence and
manufacturing facilities. This is trust you have placed in the Company.
The car market in India is growing essential to meet competition. One of
increasingly competitive. This is not Maruti's great strengths is that we With best wishes and warm regards,
surprising, as global manufacturers have internal resources to finance
are bound to come where they see a both R&D expansion as well as
growing market. Maruti has a strategy capital investments. The higher R. C. Bhargava
for the future. With Suzuki's support, interest rates, and the risk of making
Chairman
an ambitious plan of building R&D large borrowings to finance capital
capabilities has been launched. The costs, will not affect us. Being
intention is that we should be able to somewhat conservative in financial
design small cars in India, which are matters does have its advantages.
best suited for the Indian market.
The Company recognises that its real
I do believe that with the rising price strength is its employees. All efforts
of petrol and diesel, the market for will continue to keep them motivated
smaller cars will grow faster. This and happy.
trend is already visible in the world.
Maruti is working at developing Long term sustained growth of a
vehicles which will use cheaper Company requires that not only
CHAIRMAN'S MESSAGE 11
a million
promises...
Interview with
Mr. S. Nakanishi,
Managing Director
& CEO
I am pleasantly struck by what I have found here: high quality people, with an
amazing ability to work in a team, supported by sound systems and processes.
Dear Shareholder, challenges from time to time, at Maruti Suzuki. I was associated
especially if macro economic factors with the Maruti Project, before this
You will be happy to know that Maruti cease to be conducive over the next company was set up 25 years ago. In
Suzuki achieved its highest ever sales, year or so. But we will use our all, I have been directly involved with
both in the domestic and export strengths, such as successful new Maruti Suzuki and India for over 17
markets, during 2007-08. It was our models, a wide and reputed network, years, and followed its fortunes
best year also in terms of financial acknowledged product quality and closely as non executive Chairman
performance. strong customer connect, to counter since 2002.
these challenges.
Our parent company, Suzuki Motor Yet, I am pleasantly struck by what I
Corporation, achieved its medium term We have laid down a clear road map have found here: high quality people,
turnover target of 3.5 trillion Yen two to achieve an annual sale of one with an amazing ability to work in a
years ahead of schedule. It has taken a million cars in the domestic market team, supported by sound systems
more aggressive target in its revised and 200,000 exports by 2010-11. In
and processes. I believe, the credit for
medium term plan. New capacities addition, the management team at
Maruti Suzuki's success should go to
have come up in Japan and in certain Maruti Suzuki has identified specific
its people, led by my predecessor
overseas operations. initiatives to serve customers better
and ensure our leadership in the Mr. Jagdish Khattar. This, together
future. We have shared our thoughts with supportive dealers, suppliers and
We have enjoyed a 25-year business partners, gives me the
relationship with customers in India, in detail in the following pages.
confidence that we will excel in
and we continue to be very positive
On a personal note, I am delighted to diverse areas of our business and
about the future of this country. We
are aware that there will be take the role of the Managing Director fulfill our million promises.

“My idea is: Let us start
thinking at the next level.
While strengthening
our leadership in the
Indian market, we
have to see how we
can enhance our global
role and contribution
in different areas.”
Our parent company is always ready to

support us whenever required with advice
as well as practical help.
I have identified certain key questions

about Maruti Suzuki which I have been
asked frequently by investors, media
persons, our business partners and other
well wishers. I have attempted to answer
those questions in the following pages.
I thank you for your support and invite you

to go through the contents of the Annual
Report.
With best wishes and warm regards,
Shinzo Nakanishi
INTERVIEW WITH MR. S. NAKANISHI, MANAGING DIRECTOR & CEO 13

Q. You have said that Maruti Suzuki is ready to play a and launch special editions to create excitement
much bigger role in Suzuki's global operations. for the customer. Our programs to improve
What did you have in mind? productivity and quality as well as reduce cost,
A. It is quite simple. Maruti Suzuki has been the have yielded excellent results in recent years, will
leader of the Indian car market for over two continue in-house and at our suppliers.
decades. By focusing on India alone, it has become
a major contributor to Suzuki's global turnover and Q. Why is Maruti Suzuki keeping out of the ultra low
profit. My idea is: Let us start thinking at the next cost car or the so called 1-lakh car segment?
level. While strengthening our leadership in the
A. Quite a few companies have indicated that they
Indian market, we have to see how we can enhance
will launch cars well below Maruti 800. I commend
our global role and contribution in different areas.
their effort. But we have decided not to follow
For example, quality and productivity have
them, taking into account the trend of the Indian
improved manifold in Maruti Suzuki in the last few
customer and Maruti Suzuki's specific position.
years. Let us now channelise it to the next level,
where we become the exclusive base to
manufacture small cars for Europe. The A-Star Let me explain. For over 20 years, millions of
model will become a reality. Similarly, Maruti Indian people have bought Maruti Suzuki cars.
Suzuki's R & D capability has evolved. Its Most of them, I believe, have been very happy with
contribution to global design projects has been the overall experience and would like to continue
recognised, first with the Swift and now the their relationship with Maruti Suzuki. They are
Concept A-Star. Let us do more. happy with the reliability of our cars, performance
and fuel efficiency, our service support, the overall
cost of ownership and so on. But these customers
Further, Maruti Suzuki has been rated first in
and their children would not like to buy the same
customer satisfaction for eight years in a row. We
cars from us now. Their incomes have grown. Their
are sharing our experience on this with Suzuki
lifestyles have changed. They have exposure to
operations worldwide. The same applies to our
global design, not just in cars but also in other
dealer practices, supply chain, quality processes,
products. Their expectations of service have gone
information technology, parts operations and so on.
up. Most of them would still want compact cars for
In each of these, we have attained a certain
practicality, but they would want these cars to be
standard and should look to contribute to global
more stylish, loaded with features and superior
thinking. That will enhance our capability and
engines and at least as reliable and fuel efficient
enable us to serve Indian customers better. While
as their earlier cars. We have decided to devote
Europe is important, we need not be confined to it.
our resources and energy in meeting the needs of
Suzuki operations in South Asia, South East Asia,
these customers and others like them who will
the Middle East and Africa can also gain from the
upgrade from lower segment cars in the future.
experience and expertise of Maruti Suzuki.
Q. The year 2007-08 has been the best for Maruti Q. But competition will intensify in the compact
and premium compact segment as well…
Suzuki in terms of domestic sales, exports and
turnover. What do you see as the way forward? A. Yes, there are reports that more companies will
A. Our target is to achieve annual sales of one million enter the premium compact and entry sedan
cars in the domestic market in 2010-11. We also segment. While Maruti Suzuki enjoys a strong
want to export 200,000 cars annually by that time. connect with the Indian customer, we are taking
We are preparing ourselves by expanding capacity specific steps to strengthen our leadership over
to one million per annum, by October 2008. We will the next 5-10 years, as well. After investing in
also encourage our suppliers and dealers to invest manufacturing facilities, we are now ready to
in new capacity. The number of our sales points will invest in marketing infrastructure and brand
increase from about 600 now to 1,000 in three building. We will set up display showrooms, more
years. The workshop network will go up by 45% to like brand centres, where customers can see the
service more cars on the road. entire range of Maruti Suzuki models, experience
our technology, and connect better with us.
Similarly, we will invest in stockyards for cars and
Maruti Suzuki will launch World Strategic Models
spares in different parts of the country so that
like A-Star and Splash in India, so that Indian
customers' needs can be served faster and better.
customers can continue to get global quality and
Over the next three to five years, we will also
design at the same time as customers in Europe
introduce next generation engines, which will be
and Japan. In addition, our growing inhouse
even more fuel efficient and environment friendly.
capability in R & D will enable us to refresh models

We will also expand our diesel programme. We are that is more bolde and aggressive, as evident in
scaling up capability in R & D and setting up a cars like Swift and SX4. This new design philosophy
centre that will be at par with Suzuki, Japan. has been appreciated in markets across the globe,
including India. Suzuki's major contribution will
Q. Will you choose growth and market share over continue to be in terms of providing a pipeline of
profitability? new models. That is important. Unless a company
has a range of models in any segment, it cannot be
A. I do not think such a trade-off between growth and a serious player in that segment. Besides, together
profitability is essential. We are investing in new
with us, Suzuki is building R & D capability within
capacity and models. We would obviously like to
Maruti Suzuki. Suzuki's support in terms of superior
grow our volumes. Will it necessarily mean
manufacturing benchmarks and processes will, of
sacrificing profits? Perhaps not. We have had
course, continue. I am in a very good position to
several models in the last few years that continue
understand the capabilities, constraints and
to show strong sales growth. They have scored on
opportunities for mutual cooperation in both Suzuki
account of their bold design, top-end features and
and Maruti, and that should hopefully bring
attractive price, made possible by aggressive cost
additional value to both companies.
targets. At the same time, there are models in the
Indian car market which, despite heavy discounts,
are being shunned by customers. Both growth and Q. Finally, you have been associated with Maruti since
before its inception. How does it feel to be now
profitability are important and can co-exist. If you
Managing Director?
were to look at Suzuki Motor Corporation's medium
term plan, for instance, you would find targets for A. I have been directly associated with Maruti Suzuki
both volume as well as profitability. for 17 years in all, and India is almost second home.
Maruti Suzuki has excellent people, and enjoys a
close relationship with its partners including dealers
Q. You also have an ambitious export plan for the and suppliers. These aspects are not easily visible to
future…
an outsider. Under the leadership of my
A. Yes, when we exported about 53,000 cars in 2007- predecessor, Mr. Jagdish Khattar, and with the
08, that was the highest ever in our history. But we support of Suzuki Motor Corporation, Maruti Suzuki
now want to take it to 200,000 cars annually by has overcome difficult challenges over the last
2010-11. Our export effort will be led by Suzuki's decade. That has made our people more confident,
fifth World Strategic Model, A-Star, which will be and also skilful and capable. I am struck by the high
manufactured exclusively in Maruti Suzuki. It will be quality of people and their ability to work as a team
exported mainly to Europe, but also to other to deliver on promised objectives. The challenge is
markets in the world. Maruti Suzuki has been to not turn complacent and continue to strengthen
exporting cars for more than a decade, and we find the culture of improvement.
customers draw reassurance from the fact that cars
manufactured by Maruti Suzuki have a place in the
One of the important thing we have done is to create
most demanding markets. Our immediate challenge
a clear second line of leadership which is in-charge
is to create infrastructure to transport such a large
of five critical verticals of the organisation. Each of
number of cars and have forged partnerships for
these verticals is headed by two Managing Executive
this.
Officers, one of whom is generally a Director on the
Board. These Managing Executive Officers will
Q. In your other role as director on the Board of Suzuki together lead the Company towards achieving the
Motor Corporation, are you able to make any
goals and targets we have set for ourselves. While I,
additional contribution to the growth of Maruti
as the MD & CEO remain accountable for the
Suzuki?
performance of the organisation, ownership and
A. Maruti Suzuki and India are obviously in focus at decision making is shared among more people. That
Suzuki headquarters. With or without me, there is a is in tune with my personal style, and I believe it also
great deal of attention towards India and the brings benefits to the organisation.
interesting dynamics of customer behaviour here.
Suzuki is ploughing back a large chunk of its profits
from Maruti Suzuki, rather than repatriate them as
dividend, which is a good indication of its positive
outlook for India and Maruti.
Suzuki is well known for its technology strength,

especially in mini and compact cars. In recent
years, it has also evolved a new design philosophy
INTERVIEW WITH MR. S. NAKANISHI, MANAGING DIRECTOR & CEO 15

Board of Directors
Mr. R. C. Bhargava Mr. Shinzo Nakanishi Mr. Shuji Oishi Mr. Tsuneo Ohashi Mr. Keiichi Asai
Chairman Managing Director & Director & Managing Director & Managing Director & Managing
CEO Executive Officer Executive Officer Executive Officer
(Marketing & Sales) (Production) (Engineering)

a million
promises...
Mr. Osamu Suzuki Mr. Kenichi Ayukawa Mr. Amal Ganguli Ms. Pallavi Shroff Mr. Manvinder Mr. Davinder
Director Director Director Director Singh Banga Singh Brar
Director Director
BOARD OF DIRECTORS 17
a million
promises...
Business
Highlights
NET SALES AND PROFIT AFTER TAX EARNINGS PER SHARE & BOOK VALUE
150.0 350
297 300
120.0
30,000 200,000
178,603 250
25,000
150,000 90.0 189
20,000 120,034 200
124
17,308
15,000 100,000 60.0 150

90,812
59.9
11,891
5,422
10,000 100
50,000
41.2
18.8
5,000 30.0
50
- -
2003-04 2005-06 2007-08
- 0
2003-04 2005-06 2007-08
PAT (Rs Mn) Net Sales (Rs Mn)
EPS (Rs) Book Value (Rs)
MARGINS PROFIT AND LOSS RATIOS AS % TO NET SALES

80.0% 12.0%
20.00%
17.10% 17.50%
18.00% 77.3% 10.0%
15.20% 78.0% 76.8%
16.00% 76.4%
14.00% 8.0%
76.0% 6.2%
12.00%
10.00% 9.90% 9.70% 6.0%
8.00% 74.0% 3.2%
2.4% 4.0%
6.00% 6.00%
4.00% 72.0% 3.3% 2.0%
2.00%
1.9% 2.0%
0.00% 70.0% 0.0%
2003-04 2005-06 2007-08 2003-04 2005-06 2007-08
Material Cost Employee cost Depreciation
EBITDA (%) PAT (%)

Since inception, Maruti Suzuki has produced and sold over 7 million
vehicles including 500,000 units in exports markets. The company sold a
record 764,842 vehicles in 2007-08 including 53,024 units of exports.
Maruti's revenue has grown consistently over the years. In 2006-07, it
recorded turnover of INR 145,922 million which rose to INR 178,603
million in 2007-08, displaying a growth of over 20% vis-à-vis the previous
year. At the end of fiscal 2007-08, it had a market share of over 50% of the
Indian passenger car market.
RETURN ON AVERAGE EQUITY TOTAL PASSENGER VEHICLE INDUSTRY
25.00%
Maruti Suzuki's Market Share

24.00% Multi Purpose Vehicle 6% 89.0%
Industry Segments
23.00% 20.50%
21.00%
19.00% 16.50% Utility Vehicles 16% 1.6%
17.00%
15.00%
13.00%
11.00%
9.00%
7.00%
Passenger Cars 78% 51.4%
5.00%
2003-04 2005-06 2007-08
Return on Average Equity 100% 46.00%
OPERATIONAL PRODUCTIVITY (INDEXED) SALES VOLUME

120
113
100
100
100
100
100
100
53,024
800,000
85
80
700,000 34,784
711,818
60 600,000 51,175
500,000
49
527,038
40
400,000
420,947
20 300,000
15
200,000
4
0 100,000
Plant Hrs./Veh Inhouse Inhouse Direct
Manpower Warranty Rejection Pass
2003-04 2005-06 2007-08
Indexed Parameters
2001-02 2007-2008 Exports (Units) Domestic (Units)
BUSINESS HIGHLIGHTS 19
a million
promises...
Directors'
Report
Your Directors have pleasure in presenting the 27th Annual Report

together with the Audited Accounts for the year ended
31st March 2008.

FINANCIAL RESULTS
The Company's performance during the year is summarised below:
(Rs. in Million)
2007-08 2006-07
Gross Total Income 219,128 178,043
Profit before Tax 25,030 22,798
Provision for taxation (Incl. Prev. Year) 7,722 7,178
Profit after Tax 17,308 15,620
Balance brought forward 56,373 43,939
MSAIL (Maruti Suzuki Automobiles India Limited)
Loss: Adjusted on Amalgamation and
Transition Adjustment for Employee Benefit 0 88
Profit available for appropriation 73,681 59,471
Appropriations:
Debenture Redemption Reserve 0 17
General Reserve 1,731 1,562
Proposed Dividend 1,445 1,300
Corporate Dividend Tax 248 219
Balance carried forward to Balance Sheet 70,257 56,373
DIRECTORS' REPORT 33
a million
promises...
Directors' Report Contd.

FINANCIAL HIGHLIGHTS AAA/Stable (long term) and P1+ 711,818 vehicles in passenger cars
The gross revenue (net of excise) of (short term) on its bank facilities by (including MPV) and grew by 12%
the Company for the year was CRISIL. The rating underscores the over 2006-07, whereas the
Rs. 188,238 million as against financial strengths of the Company in passenger car industry growth was
Rs. 152,523 million in the previous terms of the highest safety with 11.8%.
year showing an impressive growth of regard to timely fulfillment of its
23.4%. Earnings before depreciation, financial obligations. The Company maintained its
interest, tax and amortization leadership position in the A2
(EBDITA) stood at Rs. 31,308 million QUALITY segment with the market share
against Rs. 25,888 million in the The Company has again been awarded remaining above 58%.The Company
previous year, recording a jump of ISO: 27001 Certification by STQC achieved a new leadership position
20.9%. Directorate (Standardisation, Testing & in A3 segment by launching 2 new
Quality Certificate), Ministry of models SX4 and DZire during the
Based on technical evaluation and Communications and Information year, thereby increasing its market
market considerations, the Company Technology, Government of India after share from 15% to 22%.
has, with effect from 1st April 2007, re-assessment. The Company is thus
revised the estimated useful life of certified to meet international standards
In the MUV segment, the Company
certain assets which resulted in for maintaining information security.
launched the new Grand Vitara - a
depreciation being higher by
Rs. 2,122 million for the current year stylish, muscular and 5-seater SUV
The Company also has an ISO
with a corresponding reduction in in July 2007.
14001:2004 Certification which
profit for the year and net fixed has been similarly awarded again
assets. Profit before tax (PBT) stood Exports
on re-assessment by AIB-Vincotte
at Rs. 25,030 million against In 2007-08, the Company exported
International Ltd., Brussels,
Rs. 22,798 million in the previous 53,024 vehicles to 46 countries
Belgium.
year showing a growth of 9.8% and posting a growth of 35% over last
Profit after Tax (PAT) stood at year. The top 5 export markets were
Rs. 17,308 million against
Both the Company's plants at
Algeria, Chile, Indonesia, Egypt and
Rs. 15,620 million in the previous Gurgaon and Manesar are
Sri Lanka. Cumulative exports
year showing a growth of 10.8%. ISO: 9001 certified. The Company is
crossed the landmark figure of
subject to re-assessment at regular
500,000 units.
intervals for re-certification.
DIVIDEND
The Board recommends a dividend of The Company signed an agreement
The Company's press shop has TS
100% (i.e. Rs. 5 per equity share of with the Adani group for exporting
16949 Certification which is also
Rs. 5 each) for the year ended 31st 200,000 units annually through the
subject to re-assessment at regular
March 2008 amounting to Rs. 1,445 Mundra port in Gujarat. The
intervals.
million as against a dividend of 90% Company plans to export its new
amounting to Rs. 1,300 million, paid model - 'A-Star' which is scheduled
for the year ended 31st March 2007. HIGHLIGHTS OF OPERATIONS to launch in the last quarter of
The operations during the year are 2008-09 and also plans to invest
CHANGE OF NAME exhaustively discussed in the report Rs. 40 Crores in building a Pre-
on Management Discussion and delivery Inspection (PDI) centre at
With the requisite approval of the
members and of the Central Analysis which forms a part of this the port.
Government, the name of the Annual Report. Some highlights are
Company was changed to 'Maruti mentioned below: Spares and Accessories Business
Suzuki India Limited' with effect from Sales of spare parts & accessories
17th September 2007. Vehicle Business continued to show a healthy growth
Domestic in 2007-08 and crossed the
CRISIL RATINGS For the year 2007-08, the Company milestone of Rs. 1,000 crores. It
The Company has been awarded the achieved its highest ever sales of resulted in a growth of 19 % over
highest financial credit-rating of

the previous year. Robust growth of All the newly launched models 'Futaba Industrial Co., Ltd.' (Futaba)
service load at the dealerships, a namely Swift, SX4 and DZire are for manufacture of Exhaust
result of continued focus to achieve being manufactured in Manesar. Systems Components (ESCs).
higher levels of customer Futaba is the largest manufacturer
satisfaction and presence of parts The Company plans to produce its of ESCs in Japan and has
distribution network for ensuring new export oriented model- ‘A-Star’ operations in many countries. This
easy and widespread availability of from the same plant and to joint venture will ensure supply of
increase the capacity to 300,000 high quality ESCs to the Company. A
genuine parts were the key
units by October 2008. Joint Venture Company was
contributors for this performance.
incorporated under the name and
New Engine Facility
Network style of 'FMI Automotive
The Company is setting up a new
The record sales performance was Components Limited’ with equity
gasoline engine plant in its
affected through the Company's participation from Futaba and the
Gurgaon facilities. The new engines
vast dealership network. Including Company in the ratio of 51% and
produced will be more fuel efficient
the extension counters, total new 49% respectively.
and help to serve the customer
car sales outlet increased to 600
better. The plant will be The manufacturing facilities of these
covering 393 cities. The Company
commissioned by producing Joint Ventures are located at 'Maruti
plans to increase the network size
engines for ‘A-Star’ followed by Suzuki Suppliers Park' in IMT
to 1000 outlets in the next three
other models in the coming years. Manesar, Gurgaon, Haryana.
years.
STRATEGIC ALLIANCES Service Arrangement with
In addition to this, there are 265 Mundra Port
Joint Venture Projects
‘Maruti True Value’ outlets spread The Company intends to make itself
During the year under review, your
across 166 cities, which are engaged a manufacturing and export hub for
Company has entered into two joint
in the sale, purchase and exchange of its various models. This will result in
ventures. The first is with 'Magneti
pre-owned cars. ‘Maruti True Value’ is exports of a considerable high
Marelli Powertrain S.p.A.' (Magneti
the largest organised pre-owned car volume of products from India.
Marelli) for manufacture of Electric
sales network in India. Exports of such high volume of
Control Units (ECUs). Magnetti
Marelli is a Fiat group company and products require a dedicated, modern
The service network had a total of and high quality port. To meet such
2,628 service outlets including one of the largest manufacturers of
ECUs with operations in several specialised requirements, the
dealer workshop as well as Maruti Company entered into an
countries. This joint venture will
Authorised Service Stations, agreement with Mundra Port and
enable the Company to procure
covering 1220 cities. The Company Special Economic Zone Limited
ECUs locally which will result not
plans to expand it by 45% in the (MPSEZL) to develop a mega car
only in reduction in the cost but
next three years. terminal at Mundra Port for export
also ensure a highly reliable and
regular supply of ECUs. A Joint of Company's products. This
EXPANSION OF MANUFACTURING
Venture Company was incorporated arrangement will ensure availability
FACILITIES of requisite infrastructure at the
under the name and style of
New Car Manufacturing Plant Port and export of products in an
'Magneti Marelli Powertrain India
The Company's new car efficient manner.
Private Limited' with equity
manufacturing plant at Manesar
participation of Magnetti Marelli,
started operations in September
Suzuki Motor Corporation and the AWARDS/RECOGNITION
2006 with an initial capacity of
Company in the ratio of 51%, 30% The Company is India's most
100,000 units. At the end of the
and 19% respectively. awarded car Company. Some of the
year, it achieved an expanded awards won by the Company during
installed capacity of 170,000 units. The second joint venture is with the year under review are:
n The prestigious Golden Peacock
a million
promises...

Award for excellence in the field SUBSIDIARY COMPANIES January 2008. Keeping pace with
of Environment Management in the market, premiums were
In 2007-08, the insurance business
Automobile Sector. reduced by 20%, providing the best
as a whole has earned a Profit
Before Tax (PBT) of Rs. 419 million, value for money to the customers.
n
JD Power Customer
an increase of 12% as compared to Innovative and customer friendly
Satisfaction Award. This award
has been received for the 8th PBT for 2006-07. The insurance products in the MI portfolio will be
time in a row. business has been able to write offered to the customers, once the
more than 1.77 million policies and product change is permitted by
n
2007 India IQS Award for Insurance Regulatory and
Maruti Swift which has been collect premium of approximately
Development Authority (IRDA). The
highest ranked model in the Rs. 12,500 million. Total policies
challenges in the de-tariffed regime
Premium Compact car issued since inception crossed the
are welcome with the aim to
segment. landmark figure of 5 million. Inspite
enhance insurance services to
of the prevailing competition,
n
2007 India APEAL for Maruti customers, resulting in the better
Maruti Insurance (MI) has improved
Zen Estilo which has been financial performance.
on new car penetration by 2% to
highest ranked model in
88% (out of 100 customer buying The subsidiary companies are
Compact car segment.
new cars, 88 buy MI) and renewal discussed below:
n
2007 India APEAL for Maruti penetration by 11% to 70%
Swift which has been highest Maruti Insurance Business
(measured on the base of past 3
ranked model in Premium Agency Limited
year retails).
Compact car segment. This Company sells insurance
In terms of infrastructure policies to Maruti car owners in a
n
2007 India APEAL for Maruti
upgradation, the IT application has tie-up with National Insurance
SX4 which has been highest
been upgraded to dot-net platform. Company Ltd. For 2007-08, it
ranked model in Midsize car
segment. This provides greater flexibility to recorded total revenue of
handle business in de-tariffed Rs. 585.65 million and PBT
n
"Car Manufacturer of the Year" times and has much faster Rs. 258.83 million, an increase of
Award by NDTV. response time which is highly 59.52 % over the previous year.
n
ICICI-NDTV Profit Viewers desirable with the current volumes.
An online policy renewal system has Maruti Insurance Distribution
Choice Award for Maruti SX4 in
the Midsize car segment. been set up by which customers can Services Limited
renew their policies themselves This Company sells insurance
n
CNBC TV-18 Autocar Midsize policies to Maruti car owners in a
through the internet and pay the
Car Award for Maruti SX4. tie-up with Bajaj Allianze General
premium through credit cards. Claim
n
CNBC TV-18 Autocar Value for handling and payment have also Insurance Company Ltd. For
Money for Maruti SX4. been brought online - this will be 2007-08, it recorded total revenue
further advanced in the coming of Rs. 76.73 million and PBT
n
CNBC TV 18 Autocar Award for Rs. 34.91 million, an increase of
Viewers Choice for Maruti SX4. years.
7.24 % over the previous year.
n
CNBC TV-18 Autocar The online systems will help its
customers in achieving fast turn Maruti Insurance Agency
Manufacturer Award.
around time and will provide Solutions Limited
n
"Manufacturer of the Year" improved transparency. This Company sells insurance
Award in the Passenger Car policies to Maruti car owners in a
category by Auto Monitor The premium rates were completely tie-up with New India Assurance
Awards. de-tariffed with effect from 1st Company Ltd.

For 2007-08, total revenues were the brand ‘Maruti True Value’. True management to get a feel of the
Rs. 109.41 million and PBT Rs. Value has contributed significantly workplace and environment. The
48.22 million, an increase of to our effort of customer retention idea is to develop better
49.5% over the previous year. by facilitating repurchase of new understanding and increase the
cars and has made significant support and co-operation for the
Maruti Insurance Agency Network contribution towards enhancing employees from their families.
Limited dealer profitability.
The outbound training programs
This Company sells insurance
HUMAN RESOURCE DEVELOPMENT (OBT) encourage learning while
policies to Maruti car owners in a
The Company's key strength is its having fun. The training encourages
tie-up with Royal Sundaram Alliance
human capital. The Company has, team work and teams come back
Insurance Company Ltd. For
during 2007-08, spent about Rs. fully motivated to face future
2007-08, its total revenues were
10 Crores on training of its challenges.
Rs. 166.63 million and PBT Rs.
74.89 million, an increase of employees.
53.4% over the previous year. SUSTAINABILITY
The Company conducts programs The Company believes in long term
such as "Bulandi" and "Chunauti" sustainability initiatives in the
Maruti Insurance Agency Services
for the workmen and technicians to interest of its various stakeholders.
Limited
enhance pride in being an The detailed description on these
This Company sells insurance
employee of the Company and also activities is presented in a separate
to create team synergy. At the section in this Annual Report.
tie-up with Iffco Tokyo General
middle management level, the
Insurance Company Ltd. In 2007-
08, being the first year of its
focus of the programs is to DIRECTORS
inculcate leadership qualities while Mr. R.C. Bhargava assumed the
commercial activities, it has
at the Director level, one or more position of Chairman of the Board
generated revenue of Rs. 5.20
retreats take place so that the on 19th December 2007.
million and PBT Rs. 1.99 million.
Directors can unwind and take a
Maruti Insurance Agency detached view of self development Mr. Manvinder Singh Banga,
Logistics Limited and the organisation. Mr. Amal Ganguli and Mr. Davinder
This Company sells insurance Singh Brar retire by rotation at the
The Company goes further and ensuing Annual General Meeting
trains its dealers' and vendors' and, being eligible, offer
tie-up with ICICI Lombard General
workforce. 3200 programs have themselves for re-appointment.
Insurance Company Ltd. The
been conducted covering more
Company was incorporated on 18th
than 13000 dealers' sales persons. The Company spent a long time
October 2007. It has generated
The Company's "Maruti Centre of under the leadership of Mr. Jagdish
revenue of Rs. 0.61 million and
Excellence" (MACE) is a team Khattar who always spurred on the
earned PBT Rs. 0.10 million.
dedicated to the development of employees to achieve milestones
True Value Solutions Limited vendors' employees. and inspired them to work as a
The Company has contributed team. His contribution in every
In programs like "Family Connect" sphere is enduring, distinct and
towards smooth operation of
and "Parivar Milan", family unique. The Board records its
business processes at Maruti True
members of the employees are appreciation of his outstanding
Value outlets and supported the
invited to interact with top
dealerships in enhancing the sale
of certified pre-owned cars under
a million
promises...

achievements and the goodwill, the on 2nd December 2007 and for preventing and detecting
Company has been able to earn 1st January 2008 respectively due fraud and other irregularities;
due to his untiring and selfless to withdrawal of nomination by and
efforts, farsightedness and SMC. The Board places on record d) prepared the Annual Accounts
visionary skills. Mr. Khattar retired its sincere appreciation for the on a going concern basis.
from the office of Managing services rendered by them during
Director and CEO in the normal their tenure. CONSERVATION OF ENERGY,
course from the close of business TECHNOLOGY ABSORPTION,
on 18th December 2007. Mr. Toshiaki Hasuike was also
FOREIGN EXCHANGE EARNINGS
appointed as a Director on the
The position of Managing Director Board during the year but due to his AND OUTGO
& CEO has been taken by promotion at SMC, he could not A statement giving details of
Mr. Shinzo Nakanishi, who has assume his office. conservation of energy, technology
about 37 years of experience with absorption, foreign exchange
Suzuki Motor Corporation (SMC). DIRECTORS' RESPONSIBILITY earnings and outgo in accordance
The Board, whole heartedly, with the Companies (Disclosure of
STATEMENT
welcomes Mr. Shinzo Nakanishi as Particulars in the Report of Board of
As required under Section 217(2AA)
the new Managing Director & CEO Directors) Rules, 1988 is annexed
of the Companies Act, 1956, the
of the Company. as Annexure A.
Directors confirm having:
a) followed, in the preparation of
Mr. Tsuneo Ohashi, Mr. Keiichi Asai PERSONNEL
the Annual Accounts, the
and Mr. Kenichi Ayukawa were As required by the provisions of
applicable accounting
appointed as Additional Directors. Section 217(2A) of the Companies
standards with proper
The Board welcomes all of them Act, 1956, read with the Companies
explanation relating to material
and looks forward for their (Particulars of Employees) Rules,
departures;
dedicated support. They hold their 1975, as amended, the names and
office up to the date of the ensuing b) selected such accounting other particulars of the employees
Annual General Meeting and being policies and applied them are set out in Annexure B to the
eligible, offer themselves for consistently and made Directors' Report. However, as per
appointment. Notices under Section judgements and estimates that the provisions of Section
257 of the Companies Act, 1956 are reasonable and prudent so 219(1)(b)(iv) of the Companies Act,
proposing their candidature for as to give a true and fair view 1956, the Annual Report is being
appointment have been received. of the state of affairs of your sent to all the shareholders of the
Company at the end of the Company excluding the aforesaid
During the year, Mr. Hirofumi Nagao financial year and of the profit information. Any shareholder
was re-appointed as Whole-time of your Company for that interested in obtaining such
Director. However, due to period; particulars may write to the
withdrawal of his nomination by c) taken proper and sufficient Company Secretary at the
SMC, Mr. Hirofumi Nagao resigned care for the maintenance of Registered Office of the Company.
from his office with effect from the adequate accounting records
close of business on 10th July 2008. in accordance with the SUBSIDIARY COMPANIES'
Mr. Tsuneo Kobayashi and provisions of the Companies ACCOUNTS
Mr. Masayuki Osada also resigned Act, 1956, for safeguarding the In terms of approval granted by the
with effect from close of business assets of your Company and

Associates and Accounting Company has appointed
Central Government under Section
Standard AS - 27 on Financial M/s R. J. Goel & Co., Cost
212(8) of the Companies Act,
Reporting for Interest in Joint Accountants, as the Cost Auditors
1956, copy of the balance sheets,
Ventures, the Audited Consolidated under Section 233B of the
profit & loss accounts, reports of
Financial Statements are provided Companies Act, 1956 for the audit
the Board of Directors and Auditors
in the Annual Report. of the cost accounts for the motor
of the subsidiaries have not been
vehicles business for the year
attached with the Balance Sheet of
CORPORATE GOVERNANCE ending on 31st March 2009.
the Company. These documents will
be made available upon request by The Company has complied with
the Corporate Governance ACKNOWLEDGMENT
any investor of the Company or
requirements, as stipulated under The Board of Directors would like to
subsidiary companies and shall be
Clause 49 of the Listing Agreement. express its sincere thanks for the
kept for inspection by any investor
A separate section on Corporate co-operation and advice received
at the Registered Office of the
Governance alongwith a certificate from the Government of India and
Company. However, as directed by
from the Auditors of the Company the Haryana Government. Your
the Central Government, the
confirming the compliance, is Directors also take this opportunity
financial data of the subsidiaries
annexed and forms part of this to place on record their gratitude
have been furnished under
Report. for timely and valuable assistance
"Financial Statement of Subsidiary
and support received from Suzuki
Companies" forming part of the
AUDITORS Motor Corporation, Japan, as well
Annual Report. Further, pursuant to
The Auditors, M/s Price Waterhouse, as from the employees of the
Accounting Standard AS - 21 issued
Chartered Accountants, hold office Company including the Japanese
by the Institute of Chartered
until the conclusion of the ensuing staff, dealers, vendors, customers,
Accountants of India, Consolidated
Annual General Meeting and are business associates, auto finance
Financial Statements presented by
recommended for re-appointment. companies, State Government
the Company includes financial
Certificate from the Auditors has Authorities and all concerned,
information of its subsidiaries.
been received to the effect that their without which it would not have
re-appointment, if made, would be in been possible to achieve all round
CONSOLIDATED FINANCIAL
accordance with Section 224 (1B) of progress and growth of the
STATEMENTS
the Companies Act, 1956. Company. Your Directors are
In accordance with the Accounting
thankful to the shareholders for
Standard AS - 21 on Consolidated
COST AUDITORS their continued patronage.
Financial Statements read with
Accounting Standard AS - 23 on In conformity with the directives of
Accounting for Investments in the Central Government, the
For and on behalf of the Board of Directors
Shinzo Nakanishi R.C.Bhargava

Managing Director & CEO Chairman
New Delhi
21st July 2008
a million
promises...
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 2008.
A. ENERGY CONSERVATION Renewable Energy Department,

In pursuit of continual improvement Haryana Government has awarded
towards energy conservation and first prize for excellence in
compliance with environmental implementation of Energy
regulations, many initiatives have Conservation measures in the
been taken and implemented in industrial sector.
2007-08.
In 2007-08, two important
Efforts in these areas have been investments have been made to
recognised by two awards won by the better the environmental
Company. performance:
World environment foundation has — New incinerator to meet the
declared the Company as the winner stringent emission norms as per
of the Golden Peacock Award for the CPCB guidelines for safe
Environment Management 2007. disposal of hazardous waste.
— Expansion of hazardous waste
storage pits.

Some of the activities that contributed including Class A surfaces, was New System Development
to significant reduction in energy done. Design development In the field of alternate fuel
n
consumption are listed below: capabilities for front and rear technology, development of LPG
— Energy efficient fans in cooling facia, front and rear underbody system for MPI engine was done.
towers; and interiors including seats and
— Special transformer to minimise instrument panel were further Research in the area of Electronic
n
the energy losses; Systems and Controllers
strengthened.
Development for new generation
— Energy efficient motors and
R&D demonstrated its talent and
n vehicles was carried out.
blowers in the air washer system
capability by designing the Concept
for shop cooling;
Car "A-Star" for showcasing at Auto A-2) Facility set up for R&D
— Energy efficient chillers for air Expo'08 and Geneva Motor
conditioning; Show'08. Body Design
— Building Management System
and Variable Air Volume System Side Door Crush Tester - The
n
Virtual Design Validation setting up of this facility has
for optimised cooling in the
workplaces and also reduce the DMU (Virtual Design Review) has
n enabled optimisation of design,
energy consumption; been added to R&D activity to reduction in time & cost required
— Energy efficient lighting (T-5 and enable virtual validation to for completing the development
electronic choke); reduce cycle time and process. Now development and
— Energy efficient air dryers; development cost. Also PLM homologation testing can be
— Increased re-use of waste heat (Product Life Cycle Management) done in-house.
of combustion for running has been inducted to manage Paint Booth for Styling Design -
n
equipment. CAD, CAM and CAE data for in- The facility has enabled painting
house designing and also to of the various concept models
In 2007-08, per vehicle consumption collaborate with Suzuki Motor and taking it to the final realistic
of Steam (kg/veh) and compressed air Corporation, Japan and stage as per the designed
(Nm3/veh) were reduced by 0.08% suppliers. concept.
and 1.93%. However consumption of CMA software was developed for
n
electricity (kWH/veh), process gas carrying out Target Costing. Also Engine and Transmission Design
(m3/veh) and water (m3/veh) have Design capability for components/
gone up by 0.83%, 2.18% and 8.51% Durability Tester for transmission
n
systems for VA-VE (Value Analysis-
respectively. The main reason for testing - The setting up of the
Value Engineering) was
increase in the consumption is setting durability tester for endurance
strengthened during the year.
up of new engine plant and trial testing of various transmission parts
productions of new engines. The was another major achievement
Development and Testing which has enabled carrying out of all
impact of power and fuel cost on
manufacturing cost is 13%. Research in the specific areas of
n transmission related development
emission reduction and emission activity in-house.
B. RESEARCH & DEVELOPMENT testing was carried out along with Thermal Shock Tester set up for
n
(R&D) the Engine development for BSIV engine dyno - With the setting up of
1. Specific areas in which R&D countermeasure. ECU calibration this facility, it has been possible to
has been carried out by the and engine performance evaluate in-house various parts
Company. improvements were done in order which are subjected to thermal
A) Building Full Model to optimise the engine load/ thermal shock e.g. Cylinder
Change Capability performance. Head gasket, cylinder block, piston
A-1) Vehicle Design and Durability testing of vehicles,
n
train, seals etc. for their durability
Development vehicle components and engines under extremely cold (-30 deg. C) &
was conducted. Exterior and normal ambient conditions.
Vehicle Design interior parts safety and strength Up-gradation of Performance
n
testing was also carried out for new Chassis Dynamometer Lab.-With
Skill enhancement in core areas
n
model development. the up-gradation, the testing facility
of styling like concept generation,
has become more user-friendly and
model making and designing versatile with new software and
DIRECTORS' REPORT - ANNEXURE A 41

a million
promises...
Annexure A Contd.
additional thermocouple ports, 4. Expenditure incurred on R&D
analog ports, online viewing, data (Rs. in Million)
logging and multiple data storage.
The upgraded facility is now Particulars FY'08 FY'07
suitable for carrying out fuel a. Capital 312 103
economy tests for three fuels-
Petrol, Diesel and LPG. b. Recurring 646 536
c. Total 958 639
Suspension and Brakes Design d. Total R&D expenditure as a 0.44% 0.36%
Triaxial Suspension Simulator for
n
Percentage of total turnover
designing of suspension parts -
The facility has helped in
designing of suspension parts for TECHNOLOGY ABSORPTION, 2.BENEFITS DERIVED AS A RESULT
new introductions. ADAPTATION AND INNOVATION OF ABOVE EFFORTS
2. Benefits derived as a result of - Indigenisation of various vehicle
above R&D 1. EFFORTS IN BRIEF MADE aggregates at lower costs.
- Launch of SX4. TOWARDS TECHNOLOGY - Improvement and up-gradation of
- Launch of Swift Minor. existing models for improved
ABSORPTION, ADAPTATION AND
- Launch of Swift DZire. comfort, style and better value for
INNOVATION
money.
- Focused model cost down. - Localisation, development and
- Continuous reduction in product
testing of parts for existing and
cost through VA-VE.
3. Future plan of action new models.
- Compliance to new regulations.
- To develop capability for full model - Capabilities strengthened in
- Significant cost reduction of new
change. component and vehicle evaluation,
model parts compared to existing
- To upgrade R&D capabilities for benchmarking and design
models, ensuring that the new
total evaluation of products. optimisation.
models are profitable from day one.
- Emphasis on VA-VE & innovative cost - Capabilities being further
- Significant cost reduction obtained
reduction ideas to cut down costs. strengthened in area of alternative
in existing models.
- Carry out continuous up-gradation fuels like Diesel, CNG and LPG.
of existing models. - VA -VE at the time of design and
- Maximum localisation for achieving localisation to maximise cost
cost reduction in existing as well as benefit.
new models. - Acquiring design and cost
- Compliance with Bharat Stage IV knowledge through teardown and
emission norm and other new benchmarking and using it in
regulations. future designs and cost reduction.
- Developing knowledge of costing of - Global sourcing and advanced
various Automotive Technologies sourcing to get the advanced
through standard cost tables and technologies into India at lower costs.
cost benchmarking. (Efforts made towards technology
- Cost planning of new products absorption, adaptation and
coinciding with the new Product innovation by either local vendors
planning to put cost in the right and helping world-leading
perspective at the concept stage component suppliers to set up shop
and give target cost to designers. in India).
- Design in cost reduction to reduce - Design and development of
costs from concept stage itself. electronic speedometers, keyless
alarm controllers for enhancing
- Develop more products with
comfort and convenience.
alternative fuel option.

3. IMPORTED TECHNOLOGY
Technology Imported 1. Integrated Audio with Audio controls on
steering wheel
2. Glass Antennae
Year of Import 2007-08
Status of absorption Above technologies have been used in
product introduced during the year.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO (CASH BASIS)

(Rs. in Million)
FY'08 FY'07
a) Foreign Exchange used: Equivalent
(i) Raw materials and Components 13,355 12,256
(ii) Capital goods 10,542 823
(iii) Dies and Moulds, Maintenance spares and other items 711 500
iv) Royalty, interest, dividend and others 5,610 3,865
b) Foreign Exchange earned: Equivalent 7,812 5,015
Activities relating to exports ii) Development of new export iii) Exports plans
i) Initiatives taken to increase markets for products and services- The Company will resume its
exports: Please refer to "Highlights Please refer to "Highlights of exports to Europe with ‘A Star’
of Operations - Exports" in this Operations - Exports" in this Report which is expected to start from last
Report and report on Management and report on Management quarter of 2008-09. The Company
Discussion and Analysis. Discussion & Analysis. will continue the export of other
models to non- European markets.
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
21st July 2008
DIRECTORS' REPORT - ANNEXURE A 43

a million
promises...
Corporate
Governance
Report
The Company has laid down a Code of Conduct for the members of the Board and
identified senior management personnel of the Company.
CORPORATE GOVERNANCE and transparent disclosure are

PHILOSOPHY ingrained in all its business dealings
Maruti Suzuki (the Company) is fully and shared by its Board of Directors,
committed to practicing sound Management and Employees. The
corporate governance and upholding Company has established systems
the highest business standards in and procedures to ensure that its
conducting business. Being a Board of Directors is well-informed
value-driven organisation, the and well-equipped to fulfil its overall
Company has always worked towards responsibilities and to provide the
building trust with shareholders, management with the strategic
employees, customers, suppliers and direction needed to create long-term
other stakeholders based on the shareholder value.
principles of good corporate
governance, viz., integrity, equity, MANAGEMENT STRUCTURE
transparency, fairness, disclosure,
The Company has a multi-tier
accountability and commitment to
management structure, comprising
values.
the Board of Directors at the top and
followed by Managing Executive
The Company fosters a culture in
Officers, Executive Officers and
which high standards of ethical
Divisional Heads. Through this, it is
behaviour, individual accountability
ensured that:

Strategic supervision is
n consists of eleven members. The No Director is related to any other
provided by the Board; Chairman of the Board is a non- Director. All non-executive
executive Director. The Board is made independent Directors are persons of
Control and implementation of
n
up of five executive Directors and six eminence and bring a wide range of
Company's strategy is achieved non-executive Directors, of whom four expertise and experience to the
effectively; are independent as given in Table 1. Board.
Operational management
n
remains focussed on
TABLE 1: Composition of the Board of Directors as on 31st March 2008
implementation;
S. Name of Category No. of Outside No. of Outside
Information regarding the
n No. the Directors Directorship(s) Committee(s)
Company's operations and Public Private Member Chairman
financial performance are 1 Mr. R. C. Bhargava Chairman, 7 2 4 4
Non-Executive
made available adequately;
2 Mr. Shinzo Nakanishi1 Managing 5 2 1 --
Delegation of decision making
n Director and
with accountability is achieved; CEO, Executive
3 Mr. Hirofumi Nagao Executive 3 - 2 -
Financial and operating control
n
4 Mr. Shuji Oishi Executive 1 1 - -
and integrity are maintained at
5 Mr. Tsuneo Ohashi2 Executive 1 - - -
an optimal level;
6 Mr. Keiichi Asai3 Executive 1 - - -
Risk is suitably evaluated and
n 7 Mr. Osamu Suzuki Non-Executive 1 - - -
dealt with. 8 Mr. Amal Ganguli Independent 10 3 4 4
9 Ms. Pallavi Shroff Independent 4 1 - -
BOARD OF DIRECTORS 10 Mr. Manvinder Singh Banga Independent - - - -
11 Mr. Davinder Singh Brar Independent 2 9 1 -
COMPOSITION OF THE BOARD
As on 31st March 2008, the
Company's Board of Directors
CORPORATE GOVERNANCE REPORT 45

a million
promises...
Corporate Governance Report Contd.

1 Appointed with effect from 19th Directors was a member of more than INFORMATION SUPPLIED TO THE
December 2007 10 committees or a Chairman of more BOARD
2 Appointed with effect from 1st than 5 committees across all The Board has complete access to all
January 2008 companies in which he/she is a information of the Company.
Director. Inter-alia, the following information is
3 Appointed with effect from 29th
January 2008 provided to the Board and the agenda
BOARD MEETINGS papers for the meetings are
Notes:
The Board met six times during the circulated in advance of each meeting
a. Foreign companies, bodies year-24th April 2007, 26th July 2007, or are tabled in the course of such
corporate, private companies and 5th September 2007, 29th October meeting:
companies under Section 25 of 2007, 29th January 2008 and 13th
the Companies Act, 1956 are Annual operating plans, capital
n
March 2008. The Board meets at & revenue budgets and
excluded for the above purpose. least once in a quarter with a gap of updates;
b. The committees considered for not more than four months between
the purpose are those prescribed any two meetings. However, additional Quarterly results of the
n
under Clause 49 (I) (C) of the meetings are held whenever Company and its operating
Listing Agreement. necessary. Table 2 gives the divisions or business
attendance record of the Directors at segments;
As stipulated by Clause 49 of the the six Board Meetings as well as the
Minutes of meetings of Audit
n
Listing Agreement, none of the last Annual General Meeting.
Committee and other
TABLE 2: Board Meeting attendance record of the Directors in 2007-2008 committees of the Board;
Name of Director Number of meetings attended Whether attended Information on recruitment and
n
(Total meetings held: 6) last AGM remuneration of senior
officers, just below the Board
Mr. R.C. Bhargava 6 Yes
level, including appointment or
Mr. Jagdish Khattar1 4 Yes removal of Chief Financial
Mr. Shinzo Nakanishi 5 Yes Officer and Company
Mr. Hirofumi Nagao 6 Yes Secretary;
Mr. Shinichi Takeuchi2 1 N.A. Materially important show
n
Mr. Tsuneo Kobayashi3 4 Yes cause, demand, prosecution
Mr. Shuji Oishi 6 Yes and penalty notices;
Mr. Tsuneo Ohashi4 2 N.A Fatal or serious accidents or
n
Mr. Keiichi Asai5 2 N.A dangerous occurrences;
Mr. Osamu Suzuki 3 Yes Any materially significant
n
Ms. Pallavi Shroff 3 No effluent or pollution problems;
Mr. Amal Ganguli 6 Yes
Any materially relevant default
n
Mr. Manvinder Singh Banga 1* No in financial obligations to and
Mr. Davinder Singh Brar 5 Yes by the Company or substantial
Mr. Masayuki Osada6 3 Yes non-payment for goods sold by
* Mr. Banga joined Board Meeting in July 2007 and January 2008 through tele-conference
the Company;
1 Ceased to be Director with effect from 19th December 2007. Any issue which involves
n
possible public or product
2 Ceased to be Director with effect from 26th May 2007.
liability claims of a substantial
3 Ceased to be Director with effect from 2nd December 2007. nature;
4 Appointed with effect from 1st January 2008. Details of any joint venture or
n
5 Appointed with effect from 29th January 2008. collaboration agreement;
6 Ceased to be Director with effect from 1st January 2008. Transactions that involve
n
substantial payments towards
goodwill, brand equity or
intellectual property;
Significant labour problems
n Quarterly details of foreign
n non-payment of dividend, delay
and their proposed solutions; exchange exposure and the in share transfer, etc.
Any significant development in
n
steps taken by management to
limit the risks of adverse REMUNERATION PAID / PAYABLE TO
the human resources and
exchange rate movement, and DIRECTORS
industrial relations fronts;
Table 3 gives details of the
Sale of material nature of
n
Non-compliance of any
n
remuneration paid to Directors during
investments, subsidiaries, regulatory, statutory nature or
2007-08. The Company did not
assets, which is not in the listing requirements and advance any loans to any of its
normal course of business; shareholder services such as Directors in the year under review.
TABLE 3: Remuneration paid or payable to Directors during 2007-08

Name of Director Relation-ship Salary & Performance Sitting Commission Total
with other Perquisites linked bonus fees
Directors
(Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
Mr. Shinzo Nakanishi* None 31,59,980 15,00,328 70,000 - 47,30,308
Mr. Jagdish Khattar None 2,75,14,623 50,10,929 - - 3,25,25,552
Mr. Tsuneo Kobayashi None 77,56,583 20,87,159 - - 98,43,742
Mr. Shinichi Takeuchi None 14,88,802 7,00,820 - - 21,89,622
Mr. Hirofumi Nagao* None 96,75,214 45,00,000 - - 1,41,75,214
Mr. Shuji Oishi None 89,25,868 37,77,128 - - 1,27,02,996
Mr. M. Osada None 43,41,205 16,94,262 - - 60,35,467
Mr. Tsuneo Ohashi* None 22,57,146 969,672 - - 32,26,818
Mr. Keiichi Asai* None 16,23,370 671,311 - - 22,94,681
Mr. R. C. Bhargava None - - 1,00,000 17,60,000 18,60,000
Mr. O. Suzuki None - - 30,000 - 30,000
Mr. Amal Ganguli None - - 1,20,000 15,50,000 16,70,000
Ms. Pallavi Shroff None - - 70,000 7,75,000 8,45,000
Mr. Manvinder Singh Banga None - - 10,000 3,25,000 3,35,000
Mr. Davinder Singh Brar None - - 1,10,000 10,75,000 11,85,000
* Subject to approval of shareholders in ensuing Annual General Meeting.
The members of the Company had Name of Director Commission (2006-07)

earlier approved payment of (Rs.)
commission to non-executive
Directors as permitted by the Mr. R. C. Bhargava 12,60,000
Companies Act, 1956 and in the last Mr. Amal Ganguli 8,60,000
Annual General Meeting held on 6th
September 2007, approved an Ms. Pallavi Shroff 8,00,000
increase in the overall limit of Mr. Manvinder Singh Banga 5,00,000
commission to Rs. 1 Crore per annum
Mr. Davinder Singh Brar 8,60,000
with effect from 1st April 2006. As
such, the commission for 2006-07
The performance criteria defined by the Board for the Whole-time Directors
was also paid during 2007-08 as per
including Managing Director is as under:
following details:
a) Actual achievement in terms of growth in sales, profit, etc. as compared to the
previous year;

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b) Actual achievement of growth as Committee. Mr. Anil Rustgi, Company e) Compliance with listing and other
compared to the budget approved Secretary & Chief Legal Officer acts legal requirements relating to
at the beginning of the year; and as the Secretary to the Audit financial statements.
Committee. Other Directors and
c) Growth of market share of f) Disclosure of any related party
members of management are also
Company's products as compared transactions.
invited from time to time as
to key competitors in the Industry. g) Qualifications in the draft audit
appropriate.
No employee of the Company is report.
related to any Director of the Role
Company. The Role of the Audit Committee 4. Reviewing, with the management,
includes the following: the quarterly/annual financial
Non-Executive Directors' statements before submission to
1. Oversight of the Company's
remuneration the Board for approval.
financial reporting process and
Members of the Company at the the disclosure of its financial 5. Reviewing with the management,
Annual General Meeting held on 6th information to ensure that the performance of Statutory and
September 2007, approved payment financial statement is correct, Internal Auditors, the adequacy of
of remuneration by way of sufficient and credible. internal control system.
commission to independent Directors
2. Recommending the appointment 6. Reviewing the adequacy of
at a sum not exceeding 1% of the net
and removal of Statutory Auditors, internal audit function including
profits of the Company subject to a
fixation of audit fee and also the structure of the internal audit
ceiling of Rs. 100 Lac per annum with
approval for payment for any department, staffing and seniority
effect from 1st April 2006 for a period
other services. of the official heading the
not exceeding five years. The
department, reporting structure
payment of commission is based on 3. Reviewing, with the management,
coverage and frequency of
certain criteria such as attendance at the annual financial statements
internal audit.
the Board/ Board level committee before submission to the Board
meetings, time devoted, current for approval, with particular 7. Discussion with Internal Auditors
trends prevailing in the industry etc. reference to: about any significant findings and
follow up thereon.
a) Matters required to be included in
COMMITTEES OF THE BOARD the Directors' Responsibility 8. Reviewing the findings of any
Statement to be included in the internal investigations by the
I. Audit Committee
Board's Report in terms of Clause Internal Auditors into matters
Composition (2AA) of section 217 of the where there is suspected fraud or
Table 4 shows the composition of the Companies Act, 1956. irregularity or a failure of internal
Audit Committee. All the members of control systems of a material
b) Changes, if any, in accounting
the Audit Committee are financially nature and reporting the matter
policies and practices and
literate and Mr. Amal Ganguli, the to the Board.
reasons for the same.
Chairman, has expertise in 9. Discussion with Statutory Auditors
accounting and financial c) Major accounting entries involving
before the audit commences,
management. estimates based on the exercise
about the nature and scope of
of judgment by the management.
audit as well as post audit
TABLE 4: Composition of Audit Committee
discussion to ascertain any area
Name Category Designation of concern.
Mr. Amal Ganguli Independent Chairman 10. Looking into the reasons for
Mr. Shinzo Nakanishi Executive Member substantial defaults, if any, in the
payment to the depositors,
Mr. Davinder Singh Brar Independent Member debenture holders, shareholders
Ms. Pallavi Shroff Independent Member (in case of non-payment of
declared dividends) and creditors.
The Director responsible for the d) Significant adjustments made in 11. Reviewing the functioning of the
finance function, the head of internal the financial statements arising Whistle Blower mechanism, in
audit and the representative of the out of audit findings. case the same is existing.
Statutory, Internal and Cost Auditors
are permanent invitees to the Audit
12. Carrying out any other function as Objective Meetings
is mentioned in the terms of The Committee oversees redressal of During the year, Shareholders'/
reference of the Audit Committee. shareholder and investor grievances, Investors' Grievance Committee met
13. Reviewing any other matter which transfer of shares, non - receipt of twice i.e. on 24th April 2007 and 29th
may be specified as role of the balance sheet, non - receipt of October 2007. Table 7 gives the
Audit Committee under the declared dividends and related attendance record.
amendments, if any, from time to matters. The Committee also
oversees the performance of the TABLE 7: Attendance record of
time, to the Listing Agreement,
Registrar and Transfer Agents, Shareholders' / Investors' Grievance
Companies Act and other statutes.
recommends measures for overall Committee members
improvement in the quality of Names Meetings attended
Meetings
investors' services, approves issue of in 2007 - 08 (Total
The Audit Committee met four times duplicate / split / consolidation of Meetings held: 2)
in the year under review- on 24th April share certificates and reviews all Mr. Shinzo Nakanishi 2
2007, 25th July 2007, 29th October matters connected with the securities Mr. Jagdish Khattar 2
2007 and 29th January 2008. Table transfers. Mr. Hirofumi Nagao 2
5 gives the details of attendance.
Mr. R. C. Bhargava 2
TABLE 5: Attendance record of Audit Committee members Mr. Davinder Singh Brar 2
Names Status Meetings Attended
in 2007 - 08 (Total Investor Grievance Redressal
Meetings held: 4) During the year, 34 complaints were
received and resolved. No transfer of
Mr. Amal Ganguli Chairman 4 shares was pending as on 31st March
Mr. Shinzo Nakanishi Member 3 2008.
Mr. Davinder Singh Brar Member 4

MANAGEMENT
Ms. Pallavi Shroff Member 2
MANAGEMENT DISCUSSION AND
II. Shareholders' / Investors' In order to provide efficient and ANALYSIS REPORT
Grievance Committee timely services to investors, the This Annual Report has a detailed
Board has delegated the power of report on Management Discussion
Composition approval of issue of duplicate / split / and Analysis.
Table 6 shows the composition of the consolidation of share certificate,
Shareholders' / Investors' Grievance transfer of shares, transmission of
Committee of the Company. shares, dematerialisation / DISCLOSURES MADE BY THE
rematerialisation of shares not MANAGEMENT TO THE BOARD
exceeding 2000 equity shares per During the year, there were no
transaction to the Managing Director, transactions of material nature with
TABLE 6: Composition of Shareholders'/Investors' Grievance Committee the promoters, the Directors or the
Name Nature Designation management, their subsidiaries or
relatives, etc. that had potential
Mr. R.C. Bhargava* Non-Executive Chairman conflict with the interest of the
Mr. Jagdish Khattar** Executive Member Company. All disclosures related to
financial and commercial
Mr. Shinzo Nakanishi Executive Member transactions where Directors may
Mr. Hirofumi Nagao Executive Member have a potential interest are provided
to the Board, and the interested
Mr. Davinder Singh Brar Independent Member
Directors do not participate in the
th
*Appointed as Chairman with effect from 29 October 2007. discussion nor do they vote on such
th
** Ceased to be a member with effect from 19 December 2007. matters. None of these transactions
has a potential conflict with the
The Company Secretary & Chief Legal Director & Managing Executive
Officer and Company Secretary & interests of the Company.
Officer acts as the Secretary to the
Committee and is the Compliance Chief Legal Officer severally.
Officer.

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RELATED PARTY TRANSACTIONS Board and identified senior CEO/ CFO CERTIFICATION
None of the transactions with any of the management personnel of the The Company has in place a well
related parties was in conflict with the Company. defined and transparent control self
interests of the Company. Details of assessment mechanism to evaluate
transactions between the Company and The Code of Conduct has been the effectiveness of internal controls
its subsidiaries, fellow subsidiaries, joint posted on the Company's website over financial reporting. To facilitate
ventures, associates during 2007-08 www.marutisuzuki.com certification by CEO/CFO for the
are given in Note no. 26 in Schedule 23 financial year 2007-08, key internal
to the annual accounts. The Code of Conduct has been controls over financial reporting were
circulated to all the members of the identified and adequately assessed to
All related party transactions are Board and senior management provide sufficient comfort. To ensure
negotiated on an arm's length basis and personnel and they have affirmed complete transparency and
are in the interests of the Company. their compliance with the said Code effectiveness of the self assessment,
of Conduct for the financial year the whole process was carried out
CODE OF CONDUCT FOR THE BOARD ended 31st March 2008. A declaration through an on line web based tool
to this effect signed by Mr. Shinzo called “Controls Manager”.
OF DIRECTORS AND SENIOR
Nakanishi, Managing Director & CEO
MANAGEMENT PERSONNEL
of the Company forms part of this
The Company has laid down a Code report as Annexure - A.
of Conduct for the members of the
ENABLING CONTROLS SELF ASSESSMENTS THROUGH THE CONTROLS MANAGER
Process for reporting

Key Steps
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
RACM *
Business Unit: Finance Department - Corporate Process Owner: Idris Kaboglu (Finance Controller) Business Unit: Finance Department - Corporate Process Owner: Idris Kaboglu (Finance Controller) Risks & Controls Map Pages: 18 Version: Final
Notes reference: Information & Communication: Notes reference: Information & Communication: Cycle (Level 1): Accounting Major Process (level Process (level 3): Sub Process
Business Unit: Finance Department - Corporate Process Owner: Idris Kaboglu (Finance Controller)
No. Risks / WCGWs Control Description Prevent Manual Frequency: Key Control Control Monitoring Preliminary No. Risks / WCGWs Control Description Prevent Manual Frequency: Key Control Control Monitoring Preliminary
Notes reference: Information & Communication:
Rating Justification Testing: Desired Rating Justification Testing: Desired
(P) (M) or Daily,Weekly, Contr performed Document Control Effectiveness Y/N Effectiveness (P) (M) or Daily,Weekly, Contr performed Document Control Effectiveness Y/N Effectiveness
Detect(D) IT*** Monthly, by Activity Rating**** Rating Detect(D) IT*** Monthly, by Activity Rating**** Rating Prevent( Manual Frequency: Key Control Control Monitoring Preliminary Rating Justification Testing: Desired
ol: ol:
Quarterly Quarterly P) (M) or Daily,Weekly, Contr performed Document Control Effectiveness Y/N Effectiveness
Y/N Y/N
Annually Annually No. Risks / WCGWs Control Description Detect(D) IT*** Monthly, ol: by Activity Rating**** Rating
Quarterly Y/N
A Allowances/Reserv A Allowances/Reserv Annually
A1 Provision for A1 Provision for
Obsolete and Slow Obsolete and Slow A Allowances/Reserv
1 Key factors, Provision for inventory P M NA Y Finance NA N Informal The provision N Standardised 1 Key factors, Provision for inventory P M NA Y Finance NA N Informal The provision N Standardised A1 Provision for
Control
assumption or obsolescence is Controller methodology and assumption or obsolescence is Controller methodology and Obsolete and Slow
techniques used to based on the last policy has not been techniques used to based on the last policy has not been 1 Key factors, Provision for inventory P M NA Y Finance NA N Informal The provision N Standardised
Identify
determine excess & known movement of formally documented determine excess & known movement of formally documented assumption or obsolescence is Controller methodology and
obsolete inventory stock and is assessed obsolete inventory stock and is assessed techniques used to based on the last policy has not been
reserves are by the logistics team Additionally, it seems reserves are by the logistics team Additionally, it seems determine excess & known movement of formally documented
inappropriate or not that the current inappropriate or not that the current obsolete inventory stock and is assessed
identified. Note: From Q1 2004, accrual is being made identified. Note: From Q1 2004, accrual is being made reserves are by the logistics team Additionally, it seems
inappropriate or not that the current
the logistics team has for parts and the logistics team has for parts and
identified. Note: From Q1 2004, accrual is being made
upgraded the SAP equipment to be upgraded the SAP equipment to be
Questionnaires
scrapped/cannabilised scrapped/cannabilised the logistics team has for parts and
reports to provide reports to provide
information about . It seems that an information about . It seems that an upgraded the SAP equipment to be
Controls
average consumption assessment of NRV average consumption assessment of NRV reports to provide scrapped/cannabilised
of stock of spares and value for old of stock of spares and value for old information about . It seems that an
average consumption assessment of NRV
equipment, thereby equipment & spares equipment, thereby equipment & spares
of stock of spares and value for old
enabling a more and End of Life enabling a more and End of Life
products has not been products has not been equipment, thereby equipment & spares
informed judgement informed judgement
made made enabling a more and End of Life
informed judgement products has not been
made
Circulate online
control
feedback
Control
DashBoard
Surveys inputs
Approving
Authority
Flow to Upper Hierarchy
Reviewing
authority
Seek and report

inputs from Control
control owners Owners
* RACM : Risk & Control Matrix

With the successful implementation LEGAL COMPLIANCE REPORTING SUBSIDIARY COMPANIES
of the online controls self The Board periodically reviews INFORMATION
assessment framework, the Company reports of compliance with all laws A statement, wherever applicable, of
has become one of the few applicable to the Company, as well as all significant transactions and
companies in India to have a steps taken by the Company to rectify arrangements entered into by the
transparent framework for evaluating instances of non-compliances. Company's subsidiaries is presented
the internal controls over financial to the Board of the Company at its
reporting, thereby reinforcing the The Company has developed meetings.
commitment to adopt best corporate comprehensive legal compliance
governance practices. scheduling and management The Audit Committee of the Company
software by which specific reviews the financial statements and
As required by clause 49 of the listing compliance tasks are assigned to investments made by unlisted
agreement, the certificate duly each individual. The software subsidiary companies. The minutes of
signed by Mr. S. Nakanishi, Managing enables in planning and monitoring unlisted subsidiary companies are
Director and Mr. Hirofumi Nagao, all compliance activities across the placed before the Board.
Director & MEO (Admin) (in charge of Company as shown below:
finance function) was placed before
the Board of Directors at its meeting
held on 24th April 2008. REGIONAL OFFICES
RISK ASSESSMENT AND
MINIMISATION PROCEDURE Factory
The Company has established
appropriate risk assessment and
minimisation procedures. The
process for formulating a defined risk
assessment framework
encompassed, inter-alia, a
methodology for assessing and
identifying risks on an ongoing basis,
risk prioritising, risk mitigation,
monitoring plan and comprehensive Factory
reporting on management of
enterprise wide risks. CODE FOR PREVENTION OF INSIDER SHAREHOLDERS
TRADING PRACTICES
An Executive Risk Management RE-APPOINTMENT / APPOINTMENT OF
The Company has instituted a
Committee (ERMC) is in place to DIRECTORS
comprehensive Code of Conduct for
review the risk management activities As per the Articles of Association of
its Board, senior executive,
of the Company on a regular basis. the Company and relevant provisions
managerial staff and relevant
The composition of the Committee of the Companies Act, 1956, Mr.
business associates in compliance
includes the Managing Director and Manvinder Singh Banga, Mr. Amal
with the SEBI regulations on
all Whole-time Directors. Risks are Ganguli and Mr. Davinder Singh Brar
prevention of insider trading.
evaluated by ERMC. In addition to the retire by rotation at the forthcoming
Company level risks, ERMC also Annual General Meeting (AGM) of the
DETAILS OF NON COMPLIANCE Company and being eligible, offer
reviews, from time to time, any new
No penalties or strictures were themselves for re appointment.
risks that may arise due to market
imposed on the Company by stock
dynamics and changes in the Following Directors were
exchanges or SEBI or any statutory
business environment. The Audit appointed/re-appointed/designated
authority on any matter related to
Committee and the Board of during the year:
capital market since the listing of the
Directors also review the status of the
Company's shares on 9th July 2003.
risk management activities in the
Company.

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Mr. R. C. Bhargava was

n MEANS OF COMMUNICATIONS
designated as Chairman with
Financial Results Financial results are published quarterly and annually in
effect from 19th December
"The Times of India", "Economic Times" and in Hindi editions
2007. of "Navbharat Times”.
Mr. Shinzo Nakanishi was
n Monthly Sales All monthly sales are sent to Stock Exchanges as well as
appointed as Managing displayed on website www.marutisuzuki.com. As a good
Director and CEO with effect corporate governance practice, monthly sales and press
releases are sent to the shareholders through their
from 19th December 2007. available e-mail ids.
Mr. Tsuneo Ohashi was
n News Releases All official news releases are sent to Stock Exchanges as
appointed as Whole-time well as displayed on the Company's website
www.marutisuzuki.com.
Director with effect from 1st
Website The Company's website www.marutisuzuki.com contains a
January 2008 and also re-
dedicated segment called 'Investors' where all information
designated as Director & needed by shareholders is available including ECS Mandate,
Managing Executive Officer Nomination Form and Annual Report.
(Production). Annual Report Annual Report is circulated to members and others entitled
thereto like Auditors, Equity Analysts, etc.
Mr. Hirofumi Nagao was re-
n
Corporate Filing and The Corporate Filing and Dissemination System (Corp filing)
appointed as a Whole-time
Dissemination System is jointly owned, managed and maintained by BSE and NSE.
Director with effect from 23rd All disclosures and communications to BSE and NSE are
September 2007 and also re- filed electronically through this portal. Hard copies of the
designated as Director & said disclosures and correspondence are also filed with the
Managing Executive Officer Stock Exchanges.
(Administration). Exclusive e-mail ids for Following e-mail ids have been exclusively dedicated for the
Investors investors queries:
Mr. Toshiaki Hasuike was
n msilinvestorrelations@maruti.co.in
appointed as Whole-time mailmanager@karvy.com. Queries relating to Annual Report
Director with effect from 1st may be sent to msilinvestorrelations@maruti.co.in and
January 2008. However, due to queries relating to transfer of shares and splitting/
consolidation /demat / remat/ of share certificates may be
his promotion at Suzuki Motor
sent to mailmanager@karvy.com
Corporation, he could not
assume his office.
COMPANY'S SNAPSHOT
Mr. Keiichi Asai was appointed
n Incorporation : 24th February 1981
as Whole-time Director with
CIN : L34103DL1981PLC011375
effect from 29th January 2008
and also re-designated as Equity Structure : 54.21% is held by Suzuki Motor
Director & Managing Executive Corporation, Japan and balance is
Officer (Engineering). held by public, etc.
All the above appointment / re- No.of cars sold : 764,842 including
appointments of Whole-time Directors (2007-08) 53,024 exports.
are subject to the approval of the Profit after Tax : INR 17,308 million
members in the ensuing AGM. Brief (2007-08)
resumes of the above Directors
recommended for appointment / re- Employee Strength : 7,090 (March 2008)
appointments at the AGM are
furnished in the explanatory
statement of the Notice of the AGM.

GENERAL BODY MEETINGS LISTING ON STOCK EXCHANGES
TABLE 8: Details of the last three AGMs of the Company. The equity shares of the Company are
listed on Bombay Stock Exchange
Financial Year Location Date Time
Limited, Mumbai (BSE) and The
2004 - 05 Airforce Auditorium, 9th September 2005 10.00 A. M. National Stock Exchange of India
Subroto Park, New Delhi Limited (NSE). The annual listing fees
for the year 2008-09 have been paid
2005 - 06 Airforce Auditorium, 5th September 2006 10.00 A. M.
to both these Stock Exchanges. Table
Subroto Park, New Delhi
9 lists the Company's Stock Exchange
2006 - 07 Airforce Auditorium, 6th September 2007 10.00 A. M. codes. The Company has also paid
Subroto Park, New Delhi the annual custodial fee for the year
2008-09 to both the depositories
namely, National Securities
The Company had passed certain DIVIDEND PAYMENT Depository Limited (NSDL) and
special resolutions in the previous A dividend payment of Rs. 5 per Central Depository Services (India)
three AGM's. No special resolutions equity share will be paid on or after Limited (CDSL).
were required to be put through 2nd September 2008, subject to the
postal ballot last year. approval of the members in the
Annual General Meeting.
ADDITIONAL SHAREHOLDER Table 9: Stock Code
INFORMATION Bombay Stock Exchange Limited, Mumbai (BSE) 532500
ANNUAL GENERAL MEETING National Stock Exchange of India Limited (NSE) MARUTI
Date: 2nd September 2008
ISIN No: INE585B01010
Day: Tuesday
Time: 10:00 a.m.
STOCK MARKET DATA
Venue: Airforce Auditorium,
Subroto Park, Table 10 gives the monthly high and low prices of the Company's equity shares at
New Delhi 110010 the BSE and the NSE for the year 2007 08. Chart A plots the movement of
Company's share prices with BSE Sensex for the year 2007-08.
FINANCIAL YEAR
Chart A
Financial Year: 1st April to 31st March.
For the year ending 31st March 2009, MSIL stock price performance relative to sensex
1300
results will be announced:
22,000.00
1200
By end of July 2008: First quarter
20,000.00
results. 1100
18,000.00
Sensex value
MSIL Share Price (Rs.)
By end of October 2008: Second 1000
quarter results. 900

16,000.00
By end of January 2009: Third 800 14,000.00
quarter results. 700 12,000.00
By middle of May 2009: Fourth 600 10,000.00

quarter and Annual results.
03-Mar-08
02-Apr-07
16-Apr-07
03-May-07
15-May-07
01-Jun-07
15-Jun-07
02-Jul-07
16-Jul-07
01-Aug-07
16-Aug-07
09-Sep-07
17-Sep-07
01-Oct-07
15-Oct-07
01-Nov-07
15-Nov-07
01-Jan-08
15-Jan-08
01-Feb-08
15-Feb-08
31-Mar-08
BOOK CLOSURE
The period of book closure is from MARUTI SENSEX
20th August 2008 to 2nd September
2008 (both days inclusive).

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TABLE 10: Monthly high & low quotation of the Company's equity share
Bombay Stock Exchange National Stock Exchange
Month High (Rs.) Low (Rs.) High (Rs.) Low (Rs.)
April 2007 815.00 738.00 840.00 741.00
May 2007 843.85 780.00 848.70 751.25
June 2007 830.50 713.00 876.00 715.05
July 2007 857.90 742.55 860.00 745.00
August 2007 872.00 720.00 872.90 715.00
September 2007 1026.90 854.00 1028.00 803.55
October 2007 1252.00 900.00 1248.00 960.25
November 2007 1100.00 930.00 1100.00 930.25
December 2007 1099.00 979.00 1098.00 973.45
January 2008 1009.00 700.00 1055.00 700.00
February 2008 924.90 751.00 923.90 750.10
March 2008 945.55 795.05 944.50 790.00
REGISTRAR AND TRANSFER AGENT TABLE 11: Shareholding Pattern as on 31st March 2008
Karvy Computershare Pvt. Limited Category No. of shares held Shareholding (%)
Plot No 17 - 24, Vittalrao Nagar Promoter's holding
Madhapur
Promoters
Hyderabad 500 081
Ph No: 040-23420815 / 818 - Foreign Promoters 15,66,18,440 54.21
Fax No. : 040-23420814 Sub-Total (A) 15,66,18,440 54.21
Mail Id: mailmanager@karvy.com Non-Promoters Holding
Website: www.karvy.com
Institutional Investors
SHARE TRANSFER SYSTEM Mutual Funds and UTI 1,88,43,389 6.52

The Company's shares are Banks, Financial Institutions,
transferred in dematerialised form Insurance Companies (Central /
and are traded on the stock State Govt. Institutions /
exchanges compulsorily in the demat Non-government Institutions) 4,80,08,194 16.62
mode. Any request for FIIs 4,53,47,942 15.70
rematerialisation and / or transfer of
shares in physical mode is also Sub-Total (B) 11,21,99,525 38.84
attended within the stipulated time. Others
Private Corporate Bodies 1,11,70,286 3.87
SHAREHOLDING PATTERN
Table 11 and 12 lists the Indian Public (including NSDL & CDSL) 83,18,919 2.88
shareholding pattern and distribution NRIs / OCBs 3,03,595 0.11
schedule of equity shares of the
Company as on 31st March 2008. Trust, HUF & Others 2,99,295 0.10
Sub-Total (C) 2,00,92,095 6.95
GRAND TOTAL (A + B + C) 28,89,10,060 100.00

TABLE 12: Distribution Schedule as on 31st March 2008
Shareholding Class Number of shareholders % Number of shares %

1 to 5000 109473 99.56 7963951 2.76
5,001 to 10,000 76 0.07 560125 0.19
10,001 to 20,000 71 0.06 1025837 0.36
20,001 to 30,000 35 0.03 887062 0.31
30,001 to 40,000 34 0.03 1227656 0.43
40,001 to 50,000 28 0.03 1290837 0.45
50,001 to 1,00,000 84 0.08 6233707 2.16
1,00,001 and above 157 0.14 269720885 93.34
TOTAL 109958 100 288910060 100.00
TOP TEN SHAREHOLDERS PLANT LOCATION
List of Top-ten shareholders as on 31st March 2008 is as follows; The Company has four plants, three
Name % of holding located in Palam Gurgaon Road, Gurgaon,
1. Suzuki Motor Corporation 54.21 Haryana and one located at Manesar
2. Life Insurance Corporation of India 10.93 Industrial Town, Gurgaon, Haryana.
3. HSBC Global Investments Funds A/C HSBC 1.98
ADDRESS FOR CORRESPONDENCE
Global Investment Funds A/C Mauritius Limited
For transfer/split/dematerialisation/
4. State Bank of India (equity) 1.70 rematerialisation of shares, payment of
5. T Rowe Price International INC A/C 1.61 dividend on shares and any other query
T Rowe New Asia Fund relating to shares of the Company
6. LIC of India Market Plus 1.07 For shares held in dematerialised form
7. LIC of India Money Plus 0.97 To the investor's Depository
8. ICICI Prudential Life Insurance Company Limited 0.82 Participant(s) and/or
9. Bajaj Allianz Life Insurance Company Limited 0.53 Karvy Computershare Pvt. Limited
10. HDFC Standard Life Insurance Company Limited 0.50 Plot No 17 24, Vittalrao Nagar
Madhapur
Total 74.32 Hyderabad 500 081
DEMATERIALISATION OF SHARES before the Board of Directors. The Ph No: 040-23420815 818
AND LIQUIDITY audit, inter-alia, confirms that the Fax No. : 040-23420814
st
As on 31 March 2008, 45.79% of total listed and paid up capital of the Mail Id: mailmanager@karvy.com
the Company's total paid up equity Company is in agreement with the Website: www.karvy.com
capital representing 132,284,572 aggregate of the total number of For shares held in physical form
equity shares was held in dematerial- shares in dematerialised form (held Karvy Computershare Pvt. Limited or
ised form and the balance 54.21% with NSDL and CDSL) and total (at the above given address)
representing 15,66,25,488 equity number of shares in physical form. At the Company's following address:
shares was held in physical form. The Maruti Suzuki India Limited
equity shares of the Company are OUTSTANDING GDRS / ADRS / 11th Floor, Jeevan Prakash
listed under 'specified category' in WARRANTS OR ANY CONVERTIBLE 25 K.G.Marg,
BSE and are part of Nifty in NSE. INSTRUMENTS, CONVERSION DATE New Delhi-110001
AND LIKELY IMPACT ON EQUITY Phone no- (91)-11-23316831
SECRETARIAL AUDIT The Company has no outstanding Email:msilinvestorrelations@maruti.co.in
As stipulated by the Securities and GDRs / ADRs / Warrants or any Website: www.marutisuzuki.com
Exchange Board of India (SEBI), a Convertible instruments.
qualified practicing Company SECRETARIAL STANDARDS ISSUED BY
Secretary carries out the secretarial DETAILS OF PUBLIC FUNDING THE INSTITUTE OF COMPANY
audit and provides a report to OBTAINED IN THE LAST THREE YEARS
reconcile the total admitted capital SECRETARIES OF INDIA (ICSI):
The Company has not obtained any ICSI is one of the premier professional
with the National Securities public funding in the last three years.
Depository Limited (NSDL) and bodies in India. For better corporate
Central Depository Services (India) governance, ICSI has issued 6
ADOPTION OF NON-MANDATORY secretarial standards as on 31st March
Limited (CDSL) and the total issued REQUIREMENTS
and listed capital. This audit is 2008. These Secretarial Standards are
The Chairman's office with required recommendatory in nature. The
carried out every quarter and the
facilities is being maintained by the Company observes these Secretarial
report thereon is submitted to the
Company at its expense, for use by its Standards voluntarily.
stock exchanges and is also placed
non-executive Chairman.

a million
promises...
ANNEXURE A
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 2008.
Date: 5th July 2008 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 (Formerly Maruti Udyog Limited)
We have examined the compliance of conditions of Corporate Governance by Maruti Suzuki India Limited (formerly Maruti Udyog
Limited) for the year ended March 31, 2008, 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 statements 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: July 21, 2008 Chartered Accountants

a million a million
promises... promises...
Strong partnerships
Management are the backbone
Discussion of our promise.
and Analysis
INDUSTRY
OVERVIEW
The domestic passenger car industry grew 11.8 percent in 2007-08, making this the
sixth successive year of positive growth. But, industry performance during the year
was inconsistent, with periods of high growth interspersed by months of low
demand. Growth was model-specific, driven by select brands from different
industry players.
OVERVIEW
The Indian economy grew at an inconsistent, with periods of high
impressive 9 percent in GDP during growth interspersed by months of low
2007-08. Of late, inflation has demand. Growth was model-specific,
hardened and oil and certain other driven by select brands from different
commodity prices have shot up, industry players as opposed to the
resulting in higher interest rates and general buoyancy witnessed during
an uncertain outlook for the very near the previous year (2006-07).
term. However, the country's economy
is still expected to continue to grow The Company's domestic sale volume
robustly, if at a slightly slower pace. grew slightly more than the industry
at 12 percent, and was the highest
The domestic passenger car industry ever since inception. While continuing
grew 11.8 percent in 2007-08, to lead in the A2 segment (compact
making this the sixth successive year cars), the Company also regained
of positive growth. But, industry leadership of the A3 segment
Our Management Team performance during the year was (sedans) after a gap of several years. Our Steer Leaders
60 Maruti Suzuki India Limited ANNUAL REPORT 2007-08 57

a million Our Steer Leaders Our Management Team a million
Mr. M. M. Singh Mr. I. V. Rao Mr. S. Maitra Mr. S. Y. Siddiqui Mr. Mayank Pareek
Managing Executive Officer (Production) Managing Executive Officer (Engineering) Managing Executive Officer (Supply Chain) Managing Executive Officer (Administration) Executive Officer (Marketing & Sales)
Mr. T. Ohashi Mr. K. Asai Mr. N. Fujita Mr. S. Oishi
Director and Managing Executive Officer Director & Managing Executive Officer Executive Officer (Supply Chain) Director & Managing Executive Officer
(Production) (Engineering) (Marketing & Sales)
“We aspire to make cars that are consistently “Maruti Suzuki has successfully leveraged the “Our suppliers make more than 70 percent by “In pursuit of our ambitious growth & “ A million promises, to us, is about delighting
world class in terms of quality and cost, built by strengths of Suzuki Motor Corporation in the value of a Maruti Suzuki car. They have a expansion plans amidst a competitive & tough the customer. We have the support of high
a strong, highly motivated & committed team. areas of technology, design and quality. We critical role in ensuring that our customers get business environment, our talent pool is going quality people and systems of Maruti Suzuki,
Maruti Suzuki is currently scaling up capacities have now developed capabilities in design and global quality and design, like customers in the to be a key strength. We have made consistent all of whom are converging to the cause of the
by installing world-class equipment and development, and collaborated with Suzuki developed countries. We will continue efforts to create a positive, enabling and high customer. Our vast and growing network of
machines for cars and engines. At the same engineers in designing world strategic models collaborating with our suppliers, as we always performance work environment at Maruti dealers enables us to reach customers in the
time, with the blend of Japanese fundamentals like Swift and SX4. Going forward, Maruti have, to reduce cost and enhance quality. But Suzuki as a pre-requisite towards talent farthest corners. We will continue to expand
& locally built new techniques, we build Suzuki will rapidly scale up capability and this partnership will now do more. As Maruti acquisition, talent nurturing and talent this network, and also enhance the quality of
flexibility in our operations that allows quick infrastructure in R & D, so we can continue to Suzuki develops R & D capabilities, our management. The people development customer experience with Maruti Suzuki.
product mix changes to meet changing offer customers many more new models, with suppliers will also build design and roadmap at Maruti Suzuki also entails to build Fulfilling a million promises is about
customer requirements. Our success has the same bold and aggressive design, loaded development capability in their own areas. the leadership pipeline facilitating the high understanding the needs of the customer,
always been due to our people who have with features and priced attractively. We will Together, we will fulfil the promise of more potentials to take up senior & top management stated and unstated, and designing our
shown outstanding commitment, team work continue to apply Japanese-style attention to models, more upgrades, more features -- at roles, envision the future, define business products and services around them. As India
and a never ending urge to improve. The man quality and processes, both within the company attractive prices ” innovation & strategies and lead high prospers, transforms, aspires and grows
on the shop floor will continue to lead us in our and at our suppliers. Our service network, performing teams for us to achieve customer younger, we will remain sensitive to change,
journey of a million promises.” widely acknowledged for its reach and quality, delight, organizational growth & strongly retain keep pace and meet commitments like we first
will expand further and touch many more the leadership position in the Auto Industry in did 25 years ago.”
Indian customers as we move forward to fulfill India.”
a million promises.”
58 Maruti Suzuki India Limited ANNUAL REPORT 2007-08 MANAGEMENT TEAM 59

a million Our Steer Leaders Our Management Team a million
Mr. M. M. Singh Mr. I. V. Rao Mr. S. Maitra Mr. S. Y. Siddiqui Mr. Mayank Pareek
Managing Executive Officer (Production) Managing Executive Officer (Engineering) Managing Executive Officer (Supply Chain) Managing Executive Officer (Administration) Executive Officer (Marketing & Sales)
Mr. T. Ohashi Mr. K. Asai Mr. N. Fujita Mr. S. Oishi
Director and Managing Executive Officer Director & Managing Executive Officer Executive Officer (Supply Chain) Director & Managing Executive Officer
(Production) (Engineering) (Marketing & Sales)
“We aspire to make cars that are consistently “Maruti Suzuki has successfully leveraged the “Our suppliers make more than 70 percent by “In pursuit of our ambitious growth & “ A million promises, to us, is about delighting
world class in terms of quality and cost, built by strengths of Suzuki Motor Corporation in the value of a Maruti Suzuki car. They have a expansion plans amidst a competitive & tough the customer. We have the support of high
a strong, highly motivated & committed team. areas of technology, design and quality. We critical role in ensuring that our customers get business environment, our talent pool is going quality people and systems of Maruti Suzuki,
Maruti Suzuki is currently scaling up capacities have now developed capabilities in design and global quality and design, like customers in the to be a key strength. We have made consistent all of whom are converging to the cause of the
by installing world-class equipment and development, and collaborated with Suzuki developed countries. We will continue efforts to create a positive, enabling and high customer. Our vast and growing network of
machines for cars and engines. At the same engineers in designing world strategic models collaborating with our suppliers, as we always performance work environment at Maruti dealers enables us to reach customers in the
time, with the blend of Japanese fundamentals like Swift and SX4. Going forward, Maruti have, to reduce cost and enhance quality. But Suzuki as a pre-requisite towards talent farthest corners. We will continue to expand
& locally built new techniques, we build Suzuki will rapidly scale up capability and this partnership will now do more. As Maruti acquisition, talent nurturing and talent this network, and also enhance the quality of
flexibility in our operations that allows quick infrastructure in R & D, so we can continue to Suzuki develops R & D capabilities, our management. The people development customer experience with Maruti Suzuki.
product mix changes to meet changing offer customers many more new models, with suppliers will also build design and roadmap at Maruti Suzuki also entails to build Fulfilling a million promises is about
customer requirements. Our success has the same bold and aggressive design, loaded development capability in their own areas. the leadership pipeline facilitating the high understanding the needs of the customer,
always been due to our people who have with features and priced attractively. We will Together, we will fulfil the promise of more potentials to take up senior & top management stated and unstated, and designing our
shown outstanding commitment, team work continue to apply Japanese-style attention to models, more upgrades, more features -- at roles, envision the future, define business products and services around them. As India
and a never ending urge to improve. The man quality and processes, both within the company attractive prices ” innovation & strategies and lead high prospers, transforms, aspires and grows
on the shop floor will continue to lead us in our and at our suppliers. Our service network, performing teams for us to achieve customer younger, we will remain sensitive to change,
journey of a million promises.” widely acknowledged for its reach and quality, delight, organizational growth & strongly retain keep pace and meet commitments like we first
will expand further and touch many more the leadership position in the Auto Industry in did 25 years ago.”
Indian customers as we move forward to fulfill India.”
a million promises.”
58 Maruti Suzuki India Limited ANNUAL REPORT 2007-08 MANAGEMENT TEAM 59

a million a million
Strong partnerships
Management are the backbone
Discussion of our promise.
and Analysis
INDUSTRY
OVERVIEW
The domestic passenger car industry grew 11.8 percent in 2007-08, making this the
sixth successive year of positive growth. But, industry performance during the year
was inconsistent, with periods of high growth interspersed by months of low
demand. Growth was model-specific, driven by select brands from different
industry players.
OVERVIEW
The Indian economy grew at an inconsistent, with periods of high
impressive 9 percent in GDP during growth interspersed by months of low
2007-08. Of late, inflation has demand. Growth was model-specific,
hardened and oil and certain other driven by select brands from different
commodity prices have shot up, industry players as opposed to the
resulting in higher interest rates and general buoyancy witnessed during
an uncertain outlook for the very near the previous year (2006-07).
term. However, the country's economy
is still expected to continue to grow The Company's domestic sale volume
robustly, if at a slightly slower pace. grew slightly more than the industry
at 12 percent, and was the highest
The domestic passenger car industry ever since inception. While continuing
grew 11.8 percent in 2007-08, to lead in the A2 segment (compact
making this the sixth successive year cars), the Company also regained
of positive growth. But, industry leadership of the A3 segment
Our Management Team performance during the year was (sedans) after a gap of several years. Our Steer Leaders
60 Maruti Suzuki India Limited ANNUAL REPORT 2007-08 57

CNBC TV-18 -Autocar Award
Car Manufacturer
of the year
Year 2007-08 was the first full year of common platforms, enabling the During the last quarter, the Company
the Company's new diesel programme, Company to offer more model choice adopted a new and more conservative
and its 1.3 litre DDis engine mounted and features to customers at an depreciation policy assuming a lower
on the Swift and also on the Swift attractive price. useful life of plant and machinery, dies
DZire, has proved to be popular with and IT assets. The higher depreciation
Indian customers. The Company's new The Company's exports were also the provision, is a move by the Company to
model in the premium sedan segment, highest ever since inception, and grew proactively align its financial
SX4, also registered strong 35 percent owing to concerted efforts accounting with shorter product
performance, allaying concerns that to develop new markets and increase lifecycles anticipated in the future.
the Company's image as a compact presence in existing ones.
car leader would hamper its In its conduct with all key stakeholders,
performance in the premium The export portfolio, so far dominated the Company's approach continued to
segments. by Alto and Maruti 800, will be be one based on mutual respect,
bolstered with the launch of A-Star partnership and long term
While Alto continued to be India's during the latter part of 2008-09. The sustainability. The road safety
largest selling car, the entry level Company has entered into a programme expanded as the number
segment comprising Maruti 800 and partnership with Mundra Port for a of Maruti Driving Schools doubled
Alto remained flat after the surge dedicated car terminal, including a during the year. The Company also
witnessed in 2006-07. stockyard and parking area, in adopted four villages in the vicinity of
preparation for the sharp scale-up in its Manesar Plant, and worked in
Towards the end of the fiscal year, the exports in the next few years. partnership to improve the quality of
Company launched Swift DZire, its life of the community.
third new model for the year and the The uptrend in commodity prices,
seventh in three years. A sedan based notably steel, continued during the The Company's investment projects,
on the Swift platform, the DZire year. The Company was able to use a including capacity expansion at the
demonstrates the Company's growing mix of measures to reduce cost, Manesar Plant and the new KB engine
in-house capability in design and improve localisation and enhance plant, were well within schedule and
development. It is also an example of efficiency to mitigate the impact. cost estimates.
MANAGEMENT DISCUSSION AND ANALYSIS 61

a million
promises...
MACRO FACTORS
Although the year had started with
some concerns on the macro
economic front, the performance was
satisfactory on most parameters. GDP
grew 9%, with manufacturing clocking
a growth of 8.8%.
Car loan is the critical growth driver of

the industry. Moves by the Reserve
Bank of India and the Government to
contain inflation inevitably led to a
rise in interest rates. By April 2007,
the interest rates had moved up by
400 basis points in 18 months.
By itself, this may not have led to a

significant increase in the monthly
installment paid on a car loan. But
taken together with other loan
repayment obligations of a
household, such as home loans, the
higher interest rates did become a
significant additional burden on
middle class families and may have
deterred purchase of a new car in LEADERSHIP the industry, and safeguarding its
some cases. Mr. Jagdish Khattar retired as leadership and market share in an
Managing Director on December 18, intensely competitive market.
Anti-inflation measures also resulted 2007. He had served in that position
in tighter liquidity. Banks and finance for eight years. The Board of Directors Mr. S. Nakanishi, who had been the
companies have had to rework their acknowledged Mr. Khattar's Chairman (non-executive) of the
loan portfolios and priorities, and contribution in leading the Company Company since May 2002, was
allocations to retail segments through a period of major changes in appointed as the Managing Director.
including car loans have come down
in some cases.

NDTV Award
Car Manufacturer
of the year
Mr R. C. Bhargava, a non executive Under the new structure, the structured in a way that while
Director, was appointed the Chairman Company has identified five critical retaining focus on the overall
of the Company. verticals viz. Marketing & Sales, business of the Company, it will
R & D, Manufacturing, Administration separately outline key issues and the
The Company has since opted for a and Supply Chain. Each of these broad direction envisaged for each of
new management structure which verticals is headed by a team of two these verticals.
clearly defines a second line of persons, one of whom is also a
leadership, while also providing more Director on the Board.
opportunities for growth, for Indian This discussion and analysis is
managers.

a million
promises...
Management
Discussion
and Analysis
BUSINESS
PERFORMANCE
The Company held on to its share in the entire passenger vehicle market at 46%
and was able to increase it marginally from 51% to 51.4% in passenger cars. The
Company's share in the A2 segment (compact cars) remained above 58%. In the A3
segment, the Company's share increased to 21.9 percent, from 15.1 percent in the
previous year.
DOMESTIC MARKET
The Company launched three new and have contributed to the
models during the year, including Company regaining the leadership
premium sedan SX4, a luxury Sports position in the A3 segment
Utility Vehicle Grand Vitara and an (sedans). In turn, this has catalysed
entry level sedan Swift DZire (in both efforts to expand the Company's
petrol and diesel versions). With this, image from being a leader in small
the Company has launched seven cars to a manufacturer offering the
models in three years. During the
full range of models to customers.
year, the Company discontinued
production of Esteem, its entry sedan
The Grand Vitara, imported in small
launched in 1994, which enjoyed a
huge customer following for its
numbers as a Completely Built Unit
combination of unmatched from Japan, further showcases the
performance and low cost of Company's ability to offer a
ownership. complete portfolio of products.
Both the SX4 and Swift DZire have The year witnessed two new model
been received well from the start, launches by competitors in the A2

Auto Monitor Awards
Car Manufacturer of
the Year
MARUTI'S MARKET SHARE IN EACH SEGMENT
Maruti Suzuki's Market Share

Multi Purpose Vehicle 6% 89.0%
Industry Segments
Utility Vehicles 16% 1.6%
Passenger Cars 78% 51.4%
100% 46.00%
segment, which accounts for the above 58%. In the A3 segment, the more features than comparable
bulk of the Company's business. Company's share increased to 21.9 competitor offerings, and are very
There was a new competitor model percent, from 15.1 percent in the competitively priced. This has been
in the A3 segment as well. Besides, previous year. made possible by a disciplined
there were several new variants by target cost approach towards new
competitors. While the new The Company's success in the models, followed within the
offerings have taken some share market can be attributed, broadly, Company and at our suppliers.
away from the existing ones, they to the new product design
have helped expand the market philosophy emerging from Suzuki In recent years, the Company has
overall. Motor Corporation, a disciplined also undertaken a series of market
approach to cost that enables more initiatives, notably the expansion of
The passenger vehicle industry has features at less price, and market the sales network, offering the
three categories initiatives. entire range of car-related services
n Passenger Cars in a convenient and transparent
n Utility Vehicles (UV) The new design philosophy at manner and implementing
n Multi Purpose Vehicles (MPV) Suzuki Motor Corporation, standards to improve customer
witnessed first in the Swift, is bold, service.
The share of each industry aggressive and distinctly European.
segment and share of the Company This philosophy is reflected in the The success of the Company's new
in each segment are shown in the Group's other World Strategic models, such as Swift and SX4, has
chart above. Models, such as SX4, Grand Vitara, strengthened the profitability of
A-Star and Splash. The success of dealerships. In addition, car-related
The Company held on to its share in the Company's new models is an products and services like
the entire passenger vehicle indication that this new design insurance, finance, extended
market at 46% and was able to philosophy has been well accepted warranty, spares and accessories
increase it marginally from 51% to by Indian customers. have further boosted the bottomline
51.4% in passenger cars. The of the network. Further, with a car
Company's share in the A2 In addition, the Company's new population of nearly 6.5 million
segment (compact cars) remained models have consistently offered Maruti Suzuki cars, service

a million
promises...
maintenance and repairs make a

healthy contribution to profitability
of dealerships. These factors are
encouraging channel partners to
reinvest in sales outlets, workshops
and increasing their sales force.
A major driver of sales performance

is the pre-owned car business, or
TrueValue, which facilitates new car
sales through exchange and trade-
ins and also contributes to dealer
profitability. A total of 84,323 new
cars were sold in exchange,
accounting for 12 percent of total
new car sales.
There is some data, collected by

independent market research
groups, to suggest that car
ownership periods are declining in towards total exports by the parts are priced competitively and
the Indian market. With customers industry increased to 25% from are affordable. In recent years, the
inclined to replace cars faster, 20% last year. Cumulative exports focus has been to improve access
exchange will be a key tool in made by the Company crossed the and availability by setting up a
driving sale of new cars. This trend milestone of 500,000 vehicles. national network of spare parts
will also boost the pre-owned car distributors.
market overall, as more and better Using A-Star, a Euro V compliant
cars become available. model in the “A” segment, the In the Accessories business,
Company plans to re-launch itself in enterprising dealers have used Maruti
The Company has in place robust the European markets which it had Genuine Accessories to create
systems to aid dealers in left two years earlier for want of a customised versions of the
suitable model. The Company is Company's existing models. In many
monitoring and improving
targeting a yearly volume of cases, these special edition cars have
performance. These include
enhanced sales, improved margins
Balanced Score Card, Customer 100,000 in Europe and other parts
and enable the Company to address
Satisfaction Surveys and Dealer of the world. This model is likely to
younger customer profiles. Although
Profitability models. With the roll- be launched overseas in the last
at a nascent stage, these dealer
out of the Dealer Management quarter of 2008-09.
initiatives signify the potential offered
System, an IT-based national by this business.
network, dealer's management can The Company has decided that
access a wealth of data to enable while focussing on volume growth, During the year, the Company
them to monitor diverse facets of it will enhance efforts to improve achieved a new milestone: a gross
their operations including customer profitability from export operations. turnover of Rs 10 billion in the
satisfaction indices. spares and accessories business.
Exports will enable the Company to This marked a growth of 19 percent
EXPORTS be at the frontier of technology, over the previous year.
The Company sold 53,024 units quality and manufacturing
during 2007-08. This is the highest excellence. The business is supported by a robust
ever export volume in a year for the back end operation, which employs
Company, and marked a growth of SPARE PARTS AND ACCESSORIES technology and competence in
35 percent over the previous year. The Company draws competitive logistics to deliver on time to
The Company's contribution advantage from the fact that its car customers across the country.

TOP 5 & OTHER EXPORT MARKETS
Algeria Egypt
Sri Lanka
Indonesia
Chile

a million
promises...
In recent years, there are clear trends that customer

expectations from a car have evolved considerably. Car
customers now seek contemporary styling, international
quality and latest features that enhance their safety and
convenience, while expecting performance and fuel
efficiency, like their parents did before them.

Keeping our promises by getting
closer to our customers.
69
a million
promises...
Management
Discussion
and Analysis
CUSTOMER
DELIGHT
SALES NETWORK SERVICE NETWORK

700
ET Avaya Global
600 600 3,000
500 2,500 2,628
2,096
Connect Awards 400
300
375 393 2,000
1,500
1,920
280
Most Customer 200 182
227 1,000 1,001 1,092 1,220
Responsive 100 500
Company 2003-04 2005-06 2007-08 2003-04 2005-06 2007-08
Sales Outlets Service points

Cities covered Cities covered
During the year, the Company took performance and fuel efficiency,
forward several initiatives to retain its like their parents did before them.
top position in the area of customer
satisfaction. These initiatives ranged These changing preferences are
from product design and quality to reflected in the sales data for existing
network expansion, and included new segments in the car market: models
service programmes to meet latent and variants that promise only
needs of customers. economy and low acquisition cost are
increasingly losing out to models and
In recent years, there are clear variants that are rich in features, style
trends that customer expectations and safety. This trend holds true
from a car have evolved across segments, including among
considerably. Car customers now entry level cars.
seek contemporary styling,
international quality and latest The Company's product plan is
features that enhance their safety designed for these changing
and convenience, while expecting customer expectations. World

JD Power Customer Satisfaction Index Study
Ranked Highest in
Customer Satisfaction Index
8 times in a row
Strategic Models like Swift and The Company dealers and authorized car is likely to be delivered, and to
SX4, which offer bold European service stations serviced more than some extent addresses a major
design and high end features are 10 million cars in the year. source of dissatisfaction among
targeted specifically at these customers.
customers. At the back end, the Company took
measures to improve productivity of The Company's efforts to satisfy all
workshops so that customers can get car-related needs -- from learning to
In the field, the products were
their cars serviced faster. This also drive a car at Maruti Driving Schools
supported by rapidly expanding
improves dealer profitability, to car insurance, extended warranty
networks. The Company has diverse
generating more revenues from the and eventually exchanging the
networks for new cars, spares,
same fixed assets. The Express existing car for a new one --- under
service, pre-owned cars and so on,
Service started by some dealers one roof at dealerships also enhance
and all of them were in expansion
offers to complete a standard service customer satisfaction.
mode last year to enable the
for a customer's car in two hours.
Company to get closer to the
customer. FUTURE PROMISE
Another innovation was Maruti
The Company is taking its
Mobile Support - a special version of
In particular, the Company interpretation of connect with the
Versa that has been suitably modified
encouraged dealers to recruit customer into a new paradigm. After
to function as a service station. It is
Resident Sales Executives, dynamic investing in manufacturing facilities,
able to cover areas where a service
youngsters from rural areas who the Company is now ready to invest in
station is not viable or where
would network with local marketing infrastructure. It has
customers want service at their
communities and operate from there, identified some mega projects to
doorstep. At present, 120 Maruti
rather than report daily to a sales build the foundation of this new
Mobile Service vans are plying in
showroom in an urban location. initiative:
more than 80 cities.
Going forward, the Company sees its Car display showrooms or brand
n
The Company used technology to
network as a source of competitive centres in prominent urban
meet customer needs and even
advantage. Rising real estate prices locations, where customers can
delight them. Following feedback that
and restrictions on land use in many see the entire range of models,
the Company's cars were more prone
cities are together hampering the experience technology and so on.
to theft owing to their resale value,
setting up of new car showrooms and
the Company worked on an anti-theft Car stockyards is an effort to
n
workshops, specially in prime
immobiliser or i-CATS system for all ensure that customers are able
locations.
its new cars. to get their choice of model,
The Company ranked first in variant and colour, in time.
The Company has also ensured that
Customer Satisfaction for the 8th Spares stockyards in select
n
the entire fleet of trucks, carrying
successive year in the annual survey centres across the country to
new cars from the factory to
by J D Power Asia Pacific. It was the meet customer requirements
dealerships, is GPRS-enabled. This
only player above industry average, faster.
allows dealerships to give customers
despite the much higher number of
a more accurate picture of when their
customers it has to serve.
Certain unique initiatives by the JD POWER CSI SURVEY Maruti Score

Industry Average
Company, such as the facility at
150 900
service workshops to pick up and 850
drop cars of women customers, came 800
in for appreciation. J D Power's 750
700
Survey found that customers who
650
received such service were notably 600
more delighted. 550
500
450
100 400
2000 2001 2002 2003 2004 2005 2006 2007

Using technology to give our customers
more for less.

a million
promises...
In recent years, the Company has accomplished

significant improvements on most operational
parameters, such as Hours per Vehicle and Direct
Pass Rate. The use of electronic tools such as Digital
Engineering in the areas of jigs and die designs,
manufacturing feasibility simulations, automatic line
balancing, and validating factories and material flow in
virtual environment, have helped make operations cost
efficient.
73
a million
promises...
Management
Discussion
and Analysis
OPERATIONS
The Company is expanding into a new generation technology of light-weight,

fuel-efficient and clean K-series gasoline engines.
The Company produced 777,017 cars (measure of quality). It continued to

during the year, and achieved a build on this and achieve incremental
production of 1 million in the 16 improvements during the year.
months ending March 2008. This
translates into the Company rolling Innovative methods were used to
out a car every 22 seconds during the secure widespread employee
two-shift operation. The entire effort participation, especially in
of Japanese best practices and Indian promoting all-round Safety.
innovation is to ensure that
manufacturing at this scale is A new software based system, Multi-
achieved with high quality, Level Production System (MLPS), was
productivity, safety and optimal cost. introduced to build flexibility in
operations. In-house automation
In recent years, the Company has continued to be a key driver of
made significant improvements on productivity. As the Company
most operation parameters, including expanded manpower in line with new
Hours Per Vehicle (measure of capacity, the technical training centre,
productivity) and Direct Pass Rate

Nikkei Monozukuri Award
In recognition of craftsmanship- and
technology-related excellence to Manesar Plant
started last year, helped technicians PROCUREMENT engineers worked closely with the
and new joinees shorten their About three fourth of the car, by vendors' engineers to enable to
learning curve. value, is outsourced. Any deliver cars which are both high
improvement in the car in terms of quality and cost competitive. Now, the
technology and design, quality or cost relationship has matured and most
EXPANSION INTO NEW
has to essentially include the direct vendors or Tier 1 vendors are
TECHNOLOGIES AT GURGAON competent enough to work on their
Company's vendors and their
The Company is expanding into a new improvement, but there is major
support.
generation technology of light-weight, scope for modernization of some
fuel-efficient and clean K-series sections of Tier 2 vendors. The
In the year 2007-08, the Company
gasoline engines. The Company has Company has identified this as an
signed two joint venture agreements
put up a state-of-the-art engine plant opportunity for further quality,
with global component
employing highly automated, energy upgradation and cost reduction.
manufacturers for cost reduction
efficient & environment friendly
through localisation of components
equipment for low pressure and high The second focus area for component
for Maruti Suzuki cars. The first was
pressure Aluminium die casting to cost reduction is raw material yield
with Magneti Marelli, aimed at the
produce parts of the new series improvement across all
production of electronic control units
engines. manufacturing processes, like sheet
(ECU) for diesel engines and the
second with Futaba Industrial metal, castings, forgings and
EXPANSION OF CAPACITY AT Company, Japan for production of machining. Every component is
MANESAR exhaust system parts. studied in detail and innovative ideas
are tried, to reduce the input material
At present, the plant rolls out World
The Company is setting up a weight for the same component
Strategic Models such as Swift
Suppliers Park in Manesar, close to output. The total cost of raw material
(diesel & petrol), SX4 and DZire
its car plant on an area of 100 acres as a percentage of net sales ranges
(diesel & petrol). These models have
for Just-In-Time supplies. Both the from 15% to 20%.
seen buoyant market demand.
above joint ventures are located in
this Suppliers Park.
In addition, the fifth World Strategic
Model derived from Concept A-Star
would also roll out from the Manesar An informal Suppliers' Club has been
facility later this year. The next fiscal formed by the Company's vendors
year is also critical as the Company and it gives a good forum for building
targets to export 200,000 units by personal relationships,
2010. understanding key issues and
exchanging best practices at the CEO
level. The Company organised a visit
In view of these developments, the
of the members to Japan for some
plant's capacity was enhanced from
plant visits and the Tokyo Motor
an initial 100,000 units per annum to
Show.
170,000 units per annum during the
year 2007-08. The Company is
FUTURE AGENDA
committed to achieve a capacity of
300,000 units per annum by October In the early eighties, the Company
this year. made significant efforts in trying to
develop a component industry from
ground zero. Over the next two
CAPABILITY BUILDING decades, about 110 foreign
This year, the Company actively technology collaborations were
deployed the latest tools like Digital facilitated and Maruti Suzuki
Engineering in the areas of jigs and
die design; manufacturing feasibility
simulations, automatic line balancing
and validating factories and material
flow in a virtual environment.

Innovation is our impetus, world class
cars our goal.

a million
promises...
The new design philosophy at Maruti Suzuki, witnessed first in

the Swift, is bold, aggressive and distinctly European. This
philosophy is reflected in the Group's other World Strategic
Models, such as SX4, Grand Vitara, A-Star and Splash. The
success of the Company's new models is an indication that this
new design philosophy has been well accepted by Indian
customers.
77
a million
promises...
Management
Discussion
and Analysis
R&D
The medium term objective is to develop capability for full model change and
launch a model, over the next 3-5 years. In the meantime, growing in-house
capability is enabling the Company to launch face-lifts and special editions of
existing models at a much faster pace.
During the year, the Company took introducing alternate fuel options
decisive steps towards building have also been handled
design and development capability, independently by the Company.
in-house. The number of engineers in
R & D went up from 258, at the start Suzuki will continue to provide new
of the year, to 398 engineers by the models to the Company for launch in
end of the year. India. While developing a full range of
products, Suzuki is in a unique
The Company's R & D capability has position to offer a range of compact
NUMBER OF ENGINEERS IN R&D evolved in recent years, as evident in cars. This is likely to be a competitive
Number of Engineers
the face-lifts given to existing models. advantage for the Company for many
in R&D The Company's engineers have also years, especially against new entrants
1200 collaborated with Suzuki counterparts in the compact car segment.
1000
1000
800
in the design of World Strategic
600 Models, notably the Swift. Upgrading At the same time, the Company has
400
398
engine systems to meet stricter taken a decision to develop its in-

258
200
0 emission norms and house capability with the support of
2006-07 2007-08 2010-11e

Auto Monitor Awards
Young Achievers Award to
Rajesh Gogu & Saurabh Singh
for designing Concept A-Star
Suzuki. In line with this, the number that have an important role in recent years, the Company has
of engineers will be scaled up to achieving this goal, have also taken gained by involving suppliers early
1000 by 2010. The Company will also suitable measures to support this in the process of new product
set up an R & D centre and test track, effort. development.
at par with the facility at Suzuki,
Japan. During the Auto Expo in New Delhi in This model of concurrent
January 2008, the Company engineering has enabled the
The medium term objective is to showcased a Concept version of its Company to launch World Strategic
develop capability for full model forthcoming model, A-Star. Adding to Models like Swift and SX4 in India
change and launch a model, over the the excitement was the fact that two at almost the same time as Europe
next 3-5 years. In the meantime, young designers from the Company and Japan. It has also helped meet
growing in-house capability is were part of the Suzuki-Maruti team
stringent cost and localisation
enabling the Company to launch face- that created the Concept A-Star, and
targets at launch, while enhancing
lifts and special editions of existing they were duly feted and
models at a much faster pace. capability and exposure among
acknowledged by visitors.
suppliers. An all-round scale up in
To develop capabilities, engineers are For young aspirants in design and
design and development capability
being provided exposure to live engineering colleges, the Concept A- could yield more such benefits in
projects in Suzuki, Japan. Over 90 Star was a window to the exciting the medium term.
engineers have so far done long term R & D work happening at the
training programs at Suzuki, for Company. By choosing New Delhi for The Company is extending its R&D
periods ranging between six months the global launch of Concept A-Star, capability development plan
to two years. This process will be Suzuki reinforced its commitment to backwards to its Tier 1 vendors. It
speeded up significantly to meet the India. has established a Computer Aided
goal of full model change capability. Engineering platform shared
As the Company develops capability among key vendors, the Company
Following clear direction and in-house, it also expects that and Suzuki, Japan.
commitment from the management, suppliers in key areas will also
functions such as Human Resources, scale up their R & D effort. In

a million
promises...
Our people make the difference.

The Company was able to keep its retention levels well above
industry benchmarks. This was a result of several focused
efforts by the Company. Shop floor workers, normally confined
to technical training, were trained in behavioral attributes as
well. Sales managers were given exposure to manufacturing
tools like root cause analysis and problem solving.
The 360 Degree Feedback Program, which started with senior
management last year, covered more managers and executives
this year.
81
a million
promises...
Management
Discussion
and Analysis
THE MARUTIAN
While training targets in terms of man days were exceeded, what is more
important is that people- development initiatives in general were made more
effective and relevant. There were customised training programs in strategy and
leadership for general managers.
With the Company expanding its While training targets in terms of man
manufacturing capacity and market days were exceeded, what is more
network, and scaling up R & D important is that people-
capability, there was focus on development initiatives in general
recruiting people across all levels and were made more effective and
roles. The Company's image as a relevant. There were customised
respected and caring corporation, training programs in strategy and
offering challenging assignments and leadership for general managers.
growth opportunities, helped attract
talented youngsters. Shop floor workers, normally confined
to technical training, were trained in
The Company was able to keep its behavioral attributes as well. Sales
retention levels well above industry managers were given exposure to
benchmarks. This was a result of manufacturing tools like root cause
several focused efforts by the analysis and problem solving.
Company. Employees in supervisory roles were
encouraged to make performance

The INSSAN Awards
Highest number of suggestions
per employee
appraisals and feedback more old as the Company, continued to

effective and transparent, and were make a significant contribution to SUGGESTION & SAVINGS
trained suitably. business performance. Employees
implemented a record 108,885
240000 800
The 360 Degree Feedback Program, suggestions during 2007-08, as 666 700
190000 509 600
which started with senior against 85,428 suggestions received 500
140000
previous year. 321 400
management last year, covered more 90000
278
300
108885
72046
85428
76201
managers and executives this year. 40000 200

100
This has lead to net savings of -10000 0
2004-05 2005-06 2006-07 2007-08
The Company introduced a program worth Rs. 666 million in 2007-08
enabling select employees to pursue as against Rs. 509 million in No. of Suggestions Cost Saving (Rs Mn)
higher education in management and 2006-07.
technical fields. The policy of a fast
track for a small number of The number of employees increased
employees, introduced last year, also from 5,521 employees (March 2007)
helped retention. to 7,090 (March 2008). Much of this
growth was accounted for by shop
Many of the above initiatives were floor workers in line with capacity
based on feedback from employees, expansion at the Manesar Plant.
stated and unstated, obtained during
frequent communication meetings Industrial Relations were cordial
and two-way interactions. The throughout the year and no man days
Company strengthened the concept were lost on account of strikes or
of Stay Interviews (as opposed to exit disruptions.
interviews), to understand employee
aspirations, delight factors and areas
for improvement.
The Suggestions Scheme, which is as

a million
promises...
All critical processes like product development,

manufacturing, upstream and downstream
supply chain in the organisation benefit from
the Company’s IT System to handle the
complexity of multiple models and variants,
maintain lean inventory levels and enhanced
process efficiency.

The IT factor.
85
a million
promises...
Management
Discussion
and Analysis
INFORMATION
TECHNOLOGY
The Company now has a world class data center. It incorporates best practices of
data centre infrastructure encompassing fire, flood & earthquake safety with
multiple level of access control to ensure high availability & information security to
the organisation.
In recent years, the Company has The Company now has a world class
used IT to enhance interface with the data center. It incorporates best
customer. It has deployed a world practices of data centre infrastructure
class Dealer Management Solution encompassing fire, flood &
across its vast network of dealers earthquake safety with multiple level
throughout the country. The solution of access control to ensure high
has helped dealer managements to availability & information security to
access a wide range of information the organisation. A comprehensive
about their operations, as also set of operational policy & procedures
customer satisfaction and feedback. are in place to monitor the data
center.
Information security continues to be
a focus area and comprehensive
security policy and procedures are
reviewed on regular basis. The
Company got the ISO 27001
Certification renewed during the year.

a million
promises...
One of Maruti's great strengths is

that we have internal resources to
finance both R&D expansion as well
as capital investments. The higher
interest rates, and the risk of making
large borrowings to finance capital
costs, will not affect us.

We're financially equipped
to deliver on our promise.
89
a million
promises...
Management
Discussion
and Analysis
FINANCIAL
PERFORMANCE
The guiding principle of the Company's treasury investments is safety and

prudence. In view of this, the Company invested its surplus funds in debt schemes
of mutual funds and short-term bank fixed deposits. This has enabled the Company
to earn reasonable and stable returns in a volatile interest rate scenario.
REVISION OF USEFUL LIFE OF PROVISION FOR FOREIGN CURRENCY

ASSETS HIGHER DEPRECIATION DERIVATIVE INSTRUMENTS
Based on technical evaluations and Pursuant to the announcement on
considering various market trends "Accounting for Derivatives" issued by
like shortening of product life cycles, Institute of Chartered Accountants of
the Company has, with effect from India in March 2008, the Company
April 1, 2007, revised the estimated has made a provision aggregating
useful life of certain Plant and Rs. 505 million during the current
Machinery from between 9 - 13 years year, computed on the 'Mark-to-
to between 8 -11 years, of dies and Market' basis, on the derivative
jigs from 5 years to 4 years and instruments outstanding as at March
Electronic Data Processing 31, 2008. Foreign currency covers
Equipment from 6 years to 3 years. are taken to reduce exposure to
This change has resulted in changes in exchange rates.
additional depreciation of Rs. 2,122
million for the current year with a
corresponding reduction in profit for
the year and net fixed assets.

TABLE 1. MSIL's abridged profit and loss account for 2007-08 (Rs. million)
Parameters 2007-08 2006-07
1 Gross Sales 209,493 171,442
Vehicles 197,990 161,367
Spares, dies, moulds 11,503 10,075
2 Excise duty 30,890 25,520
3 Net sales (1-2) 178,603 145,922
4 Income from services 759 617
5 Total operating income 179,362 146,539
6 Other income 8,876 5,984
7 Total income 188,238 152,523
8 Consumption of raw materials &

components, stores & traded goods 136,468 110,494
9 Employee costs 3,562 2,884
10 Manufacturing, administrative and other costs 11,298 8,258
11 Selling and distribution expenses 5,602 4,999
12 Financial expenses 596 376
13 Depreciation 5,682 2,714
14 Total expenditure 163,208 129,725
15 PBT (7-14) 25,030 22,798
16 Current tax 7,509 6,089
17 Deferred tax 26 897
18 Fringe benefit tax 98 67
19 Previous year tax 89 125
20 PAT (15-16-17-18-19) 17,308 15,620

a million
promises...
TABLE 2. Financial Performance Ratios (As a Percentage of Net Sales)

Parameters 2007-08 2006-07 Change
Material cost 76.41% 75.72% -0.69%
Employee cost 1.99% 1.98% -0.01%
Manufacturing & admin expenses 6.33% 5.66% -0.67%
Selling and distribution expenses 3.14% 3.43% +0.29%
EBITDA 17.53% 17.74% -0.21%
Depreciation 3.18% 1.86% -1.32%
PBT 14.01% 15.62% -1.61%
WORKING CAPITAL MANAGEMENT INTERNAL CONTROLS AND ADEQUACY maintaining accountability of assets.
Around 75% of the Company's The Company has a proper and The internal control system is
components by value are outsourced, adequate system of internal control to supplemented by an extensive
and manufacturing is undertaken ensure that all assets are program of internal audits, reviews by
based on Just-In-Time (JIT) inventory safeguarded and protected against management, and documented
principles. Working capital loss from unauthorised use or policies, guidelines and procedures.
management, therefore, plays a key disposition, and that all transactions
role in the Company's operations. The are authorised, recorded and
inventory turnover ratio of the reported correctly. The internal
Company has increased from 13.9 in control system is designed to ensure
2006-07 to 15.7 in 2007-08. The that financial and other records are
average receivables holding period reliable for preparing financial
has decreased from 11.7 days in information and other data, and for
2006-07 to 9.4 days in 2007-08.
TABLE 3. Investment of surplus funds (Rs. million)

TREASURY OPERATIONS
The Company has efficiently 31-Mar-08 % of total 31-Mar-07 % of total
managed its surplus funds through Bank fixed deposits 0 0% 13,080 28.6%
careful treasury operations. The
Debt mutual fund units 48,656 100% 32,657 71.4%
guiding principle of the Company's
treasury investments is safety and Total 48,656 100% 32,753 100.0%
prudence. In view of this, the
Company invested its surplus funds in
debt schemes of mutual funds and TABLE 4. Income from investment of surplus fund (Rs. million)
short-term bank fixed deposits. This
2007-08 2006-07
has enabled the Company to earn
reasonable and stable returns in a Interest on fixed deposits 645 318
volatile interest rate scenario. Table 3
Dividend from debt mutual funds 1,637 1,467
lists the different portfolios, while
Table 4 lists the returns on these Profit from sale of investments 898 389
investments of surplus funds.
Total 3,180 2,174

a million
promises...
Management
Discussion
and Analysis
RISK FACTORS
The Company has established an appropriate risk management framework. All such
risks have been identified and categorised based on their nature and significance.
The detailed mitigation plans for each such risk have been formulated, effected and
reviewed periodically.
The Company operates in an possibility of a negative impact from

environment which is affected by one or more risks can not be totally
various factors some of which are precluded the Company proactively
controllable while some are outside takes reasonable steps and makes
the control of the Company. The efforts to mitigate significant risks
activity of risk management in the that may affect it.
Company is reviewed by the audit
committee through a sub committee,
MACRO ECONOMIC FACTORS
Executive Risk Management
The demand for the Company's
Committee (ERMC). The ERMC
products is affected by changes in
includes Managing Director & CEO
the macro economic conditions like
and all Managing Executive Officers
interest rates, excise duty rates,
of the Company. It reviews the risk
inflation, oil prices, etc. Over the last
management activities of the
few months, there have been
Company on a regular basis in
significant changes in the economic
addition to scanning for any new risks
environment. There have been
that may arise due to changes in the
positives like excise duty reduction on
business environment. While the

compact cars, personal income tax managerial and technical talent has risk to the Company is from price
reduction and some negatives like become a challenge for the industry movements in steel and ferrous
hardening of interest rates and oil and the corporate sector. The materials, aluminum, plastics, rubber
price escalation. Though the Company is focusing in a major way and precious metals like platinum,
Company is exposed to all these on its people environment and people palladium and rhodium.
factors, the Company's presence in connect, and implementing a wide
diverse product segments, in diverse range of training and development The total commodity content in the
geographies and in diverse fuel programs to enable younger car as a percentage of net sales
segments helps to spread the risk. managers to deliver more value. varies between 15 percent to
20 percent by cost. While the
COMPETITION PRODUCT LAUNCHES GEOGRAPHIC CONCENTRATION Company does not have much room
A number of global and homegrown The Company's manufacturing in price negotiation on commodities,
vehicle manufacturers are working on facilities, its critical information in the past five years it has been able
and launching new products, using systems and supplier units are to employ some initiatives to control
various technologies. The consumer geographically centralised in the and reduce its material cost to net
will have more products to choose State of Haryana. Any natural sales ratio from 82.3 percent to 76.4
from and as a result there is a risk of calamity such as earthquake, or man percent despite heavy commodity
low acceptance of the Company's made factors like industrial relations price increases. These initiatives
products. The Company is conscious problems and political uncertainty include a program on raw material
of this fact. Till now, it has been able may significantly impair the business yield improvement and consolidation
to satisfy Indian customers and guard operations of the Company. The of raw material purchase along with
its market share despite intensifying Company has taken specific steps for its suppliers. In addition, the
competition. It has a package of information systems continuity as Company has an elaborate and
products, network presence and stated in the IT section. The Company structured program of cost reduction
downstream services which helps to follows a sourcing policy which across the entire supply chain.
make its offering attractive to the amongst other factors, balances the
customer. It has also identified R&D twin objectives of economies of scale To deal with such risks and more, the
and customer connect initiatives to and de-risking of component Company has established an
build its competitive advantage supplies. The Company enjoys appropriate risk management
further. excellent industrial relations with its framework. All such risks have been
employees owing to people connect identified and categorised based on
initiatives. At the same time, it their nature and significance. The
INVESTMENTS AND UTILISATION detailed mitigation plans for each
remains vigilant.
The Company is making heavy such risk have been formulated,
investment in the areas of capacity effected and reviewed periodically.
expansion, R&D and marketing COMMODITY PRICE RISK
infrastructure. Sustained demand of Raw Material and Components
products is critical to generate returns comprise almost three fourth of the
on such investments. Capacity total sales price of a car.
utilisation shall be a key parameter to
ensure business viability both for the In addition to procuring steel and
Company and its channel partners. aluminium directly for the Company's
The Company has been quite in-house operations, some
calibrated in putting up investments commodity procurement is also done
in the past. It also does a careful cost by its suppliers as inputs to the
benefit analysis to ensure, the components and assemblies
investment generates a competitive supplied to the Company. The main
advantage to help secure volumes.
TALENT ACQUISITION AND RETENTION

As domestic competition intensifies,
skilled manpower becomes critical.
Acquisition and retention of key

a million
promises...
Management
Discussion
and Analysis
OUTLOOK
By all accounts, competition will intensify in the future. While the Company
enjoys a strong customer connect and has an excellent track record, it is
approaching the future afresh and taking nothing for granted.
The Company attained its highest remaining flat or showing slow

ever domestic sales and exports growth, global manufacturers are
during the year. There were many directing investments and focus
positive developments during the towards the Indian market.
year that augur well for the future:
the success of new models Besides, the government has
including two in the sedan systematically created a conducive
segment, customer appreciation for environment for the passenger car
the new Suzuki design philosophy industry, particularly compact cars,
of bold and aggressive cars, further encouraging investments
success of the Company's new from global players.
diesel program, a sales and
workshop network that is profitable While the Company enjoys a strong
and growing, scale-up in R & D customer connect and has an
strength and of course, top ratings excellent track record, it is
in customer satisfaction for eight approaching the future afresh and
years in a row. taking nothing for granted.
By all accounts, competition will The Company has laid down a clear
intensify in the future as more roadmap for the next three years,
players enter, new models are and is working towards a target of
launched and new market domestic sale of 1 million units and
segments are created. In particular, exports of 200,000 units by
with several markets internationally 2010-11.

It is expanding capacity, past few years. While there is
strengthening the network, some reversal in the macro
recruiting talent, working on next environment, it remains to be seen
generation engines and enhancing whether this is a short term
its cost and productivity initiatives phenomenon or a more sustained
to attain these targets. The new shift in the trend.
model launch plan remains
aggressive: the Company is The Company has decided on
committed to launch two World certain critical initiatives to retain
Strategic Models, A-Star and leadership in the long term. These
Splash, in India over the next include investments in marketing
12-15 months. infrastructure such as brand
centres and regional stockyards for
Macro economic factors like GDP cars and parts, all of which will
growth, inflation, interest rates, enhance customer satisfaction. The
currency changes, fiscal policies development of in-house R & D
and commodity prices have a capability, combined with strong
strong bearing on the Company's support from Suzuki in terms of
business. Barring commodity models, technology and best
prices, the other factors have been, practices, will also help the
by and large, positive for the Company strengthen leadership in
passenger car industry over the the future.
DISCLAIMER
Statements in this management discussion and analysis describing the
Company's objectives, projections, estimates and expectations are
categorised as 'forward looking statements' within the meaning of
applicable laws and regulations.
Actual results may differ substantially or materially from those

expressed or implied.
Important developments that could affect the Company's operations

include a downward trend in the domestic auto - industry, rise in input
costs, exchange rate fluctuations, and significant changes in the
political and economic environment in India, environmental standards,
tax laws, litigation and labour relations.

a million
promises...
Since inception, the Company has proactively taken

care of the needs and sustainable growth of its
stakeholders and they in turn, have supported the
Company in achieving its vision and business results
year after year. As a result, sustainability has become
an integral part of the Company's approach to
business and decision making.

Sensitivity towards all stakeholders.
100 120
80 140
60
160
40
180
OF F
99
a million
promises...
Sustainability
Sustainability at Maruti Suzuki refers to sum total of all the actions and initiatives
undertaken by the Company for its long-term survival and growth.
To achieve longterm sustainability and prosperity the Company has nurtured a
socially responsible behaviour towards its various stakeholders.
The Company is currently evolving a

comprehensive Sustainability Policy OUR STAKEHOLDERS
and Guidelines to ensure that while
working to enhance shareholder
wealth, interest of stakeholders
continues to act as a guide for Business
Partners
actions and decisions in the future
as well. Customers Shareholders
Investors
OUR CUSTOMERS Local

Community Environment
Sustainability begins with customers.
The Company has a robust customer Employees
feedback system through which it

Golden Peacock Award
For excellence in the field of
Environment Management
assesses the changing aspirations the Company reach customers not the Company to develop and install
and requirements of customers. Over only in metro cities but also in semi- an anti-theft device- the immobiliser
the past two decades, the Company urban, Tier-2 and Tier-3 cities. system called i-CATS in all its new
has been successful in bringing out cars, much before regulatory
products that not just meet but In addition, the Company introduced requirement. The Company was first
exceed customer's expectations. many new initiatives such as car pick among all car manufacturers in the
& drop facility by service workshops country to offer this safety device in
The aspiration to give more for less to for women car owners, Maruti Mobile compact cars.
the customers has given the Support to offer door step car
Company a competitive edge in servicing, Express Service bays,
OUR PARTNERS - SUPPLIERS
competitive times. The VA-VE special bays that can offer
In manufacturing where a sizeable
initiatives (Value Analysis & Value maintenance service in less than 2
percentage of inputs are bought from
Engineering) pursued aggressively by hours, and so on.
vendors and suppliers, the ability to
the Company in partnership with
continuously improve quality and
suppliers have helped the Company The Company has a stringent reduce costs is directly dependent on
reduce cost of making a car without customer complaint monitoring vendors doing the same.
compromising on quality. Every year system. Besides period syndicated
the Company celebrates company surveys, the Company systematically
wide Quality Month awareness In light of this statement, the
compiles customer feedback and
programmes in association with its Company guides suppliers in adopting
ratings on a daily basis. The findings
suppliers. While VA-VE efforts latest technologies, and transfers its
are reported in the weekly
continue all through out the year, the best practices in the areas of
Management Committee Meeting.
Company also observes a VA-VE productivity improvement, quality
month every year, during which it is enhancement and cost reduction.
This has regularly led to
able to create more awareness and improvements in product quality,
consciousness towards the cause. The Company has set up Maruti
features, processes and customer
Centre for Excellence (MACE) in
interface. For example, feedback that
A wide and deep service network collaboration with some of its
Maruti Suzuki cars were more prone
spread across the country has helped suppliers to achieve these objectives.
to theft owing to high resale value led
SUSTAINABILITY 101
a million
promises...
Sustainability Contd.
With the help of MACE, now the
Company is assisting its direct suppliers
in upgrading their sub-suppliers or (Tier-
2 suppliers).
Most of the suppliers and joint venture

companies are located near Company's
manufacturing facilities in Gurgaon and
Manesar, which are sensitive areas from
Industrial Relations perspective.
Therefore, the Company has identified

Industrial Relations and Human
Resource as two important areas of
interventions with suppliers. The HR
team of MSIL maintains very close
interaction with them on almost regular
basis.
OUR PARTNERS - DEALERS

The Company has been passionately
building its sales and service network
since its inception.
of shareholders and investors in the importance of safe working place,
Company. The Company complies safer homes and need for safer
The Company has set up 16 Regional with all guidelines of SEBI, Stock traveling. The drive coincided with the
Training Centres across the country to exchange, etc. National Safety Month, and was led
continuously upgrade skills of dealer
by members of the top management.
employees as per new technologies and
customers' requirements. EMPLOYEES
The Company has enforced highly The theme of this year's Safety Drive
conducive working environment for its was Hum sab ka ek hi sankalp,
In recent years, the Company has
employees. MSIL does not support suraksha pratham suraksha
conducted a comprehensive national
favouritism in recruitment, promotion, pratham. (Together let us pledge
survey of its dealer employees to gauge
providing compensation, or Safety First, Safety First).
their level of satisfaction. By many
accounts, this is a rare initiative by any termination based on caste, religion,
principal company. Based on the results gender or age. The Company offers Giving high priority to work place
of the survey, the Company formed a equal opportunity for growth to all safety, Maruti Suzuki firmly believes
cross functional team of senior employees. that a plant designed to be safe is far
management from sales, network more productive than otherwise. In
development and HR to identify an During the year, the Company light of this fact, the Company has
action plan to improve satisfaction finalised its policy on affirmative undertaken concerted initiatives to
levels of dealer employees. One of the action as per the guidelines laid down eliminate work place mishaps, over
initiatives, for instance, was providing by Confederation of Indian Industries. the last 25 years.
car loans at low rates of interest for
good performers with repayment One of the most exciting exercise of
guarantee provided by the dealer. SAFETY POLICY this annual drive is that the
In March, the Company celebrated a employees themselves identify areas,
month long Safety Awareness Drive. activities and operations that could
SHAREHOLDERS AND INVESTORS be unsafe or hazardous. Named as
The Company has put in place a strong The drive aimed to sensitise Kekken Yuichi Training, the end result
mechanism for Corporate Governance to employees and their families towards of the exercise is that the employee
enhance confidence of its large number suggests

measures that are appropriate to From the perspective of capacity ADOPTING ENERGY SAVING
make the work place hazard free. The expansion, 2007-08 was one of the TECHNOLOGIES
Company has a vigilant policy in place busiest years for the Company. While the Company continues to
that monitors issues of work place improve energy saving initiatives
safety on a weekly basis. The Company commissioned a new through numerous Kaizens
plant for KB series engines at (continuous improvements) on the
ENVIRONMENT Gurgaon facility and the annual shop floor, the thrust on adopting
capacity of the Manesar plant was energy saving technologies has
The Company has remained ahead of
enhanced from 100,000 units to increased phenomenally.
regulatory requirements in pursuit of
170,000 units during 2007-08.
environment protection and energy
Three-coat-one-bake painting
conservation at its manufacturing
Despite capacity enhancements the system: The Company introduced the
facilities, and in development of
Company closely monitored its power three-coat-one-bake system at its
products that use fewer natural
and water consumption. Manesar facilities.
resources and are environment
friendly.
While power consumption was lower In this state-of-the-art painting
by 30 percent and the Water system, three wet-on-wet coats are
Total energy consumption at the applied and baked together.
facilities has come down by 26 consumption stood 61 percent lower
that the levels of 2000-01. Conventional painting systems use
percent compared to the beginning of two baking steps before the final
the decade. finish. This facilitates lower energy
The CO2 (Carbon Dioxide) emissions
consumption and yet improves the
The Company credited the Just-in- per vehicle (produced during productivity levels.
Time philosophy adopted and manufacturing) are lower by 38
internalised by the employees as the percent compared to 2000-01 levels.
The green co-efficient of this system
prime reason that helped to excel in is much better than that of the
this direction. conventional system.
SUSTAINABILITY 103
PRACTICING 3R (REDUCE, REUSE AND In line with this, the Company Several other state governments,
RECYCLE) manages two Institutes of Driving such as Haryana, Bihar, Uttarakhand,
The Company has been promoting 3R Training & Research (IDTR) in Delhi Chattisgarh and West Bengal have
since its inception. As a result the and Maruti Driving Schools across the also approached the Company to set
Company has not only been able to country. Through these facilities, the up driving training institutes in their
recycle 100% of treated waste water but Company has brought international states. The Company has already
also reduced fresh water consumption standards in driving training and signed an MoU with the Government
by 28%. The Company has implemented state-of-the-art training infrastructure of Haryana for setting up two driving
rain water harvesting to recharge the in the country. training institutes at Rohtak and
aquifers. Also, recyclable packing for Bahadurgarh.
bought out components is being actively The first major step towards
promoted. promoting road safety was in the year MARUTI DRIVING SCHOOLS
2000 when Delhi Government invited The Company has also involved its
the Company to manage the Institute dealers across the Country in
GREENING OF SUPPLY CHAIN
of Driving Training and Research promoting road safety and safe
The Company has been facilitating (IDTR) and start driving training
implementation of Environment driving. In collaboration with them,
courses. The Company introduced the Company has set up 34 Maruti
Management System (EMS) at its training facilities and infrastructure
suppliers' end. Regular training Driving Schools in 32 different
including world-class driving test locations across the Country. These
programmes are conducted for all the tracks, advanced computer
suppliers on EMS. Surveys are schools are equipped with world
simulators and training modules as class, state-of-the-art driving
conducted to assess the vendors who per international standards at the
need more guidance. The systems and simulators and offer beginners as
institute, which is spread over an area well as refresher training
the environmental performance of of 14.5 acres. Regular research in
suppliers are audited. programmes. Over 35,000 people
road safety and safe driving was also have been trained so far.
started at the Institute. In 2006, the
COMMUNITY INITIATIVES second IDTR was set up to promote
The Company works closely with local road safety by primarily targeting non-
communities around its manufacturing commercial drivers and impart driving
facilities to improve their quality of life. training to them. This Institute is also
The Company has adopted four villages equipped with the same facilities and
surrounding its Manesar plant - Kasan, infrastructure as made available in
Dhana, Alihar and Baas Kusla and the first IDTR.
launched sustainable livelihood
programmes for under privileged SETTING UP GUJARATI
communities. The initiatives are focused In a landmark move, the Company
on four key areas: Health, Education, signed an MoU with the Government
Employment Generation through of Gujarat, to set up, manage and run
Vocational Trainings & Basic The Gujarat Regional Automobile
Infrastructure Development. Training Institute ( to be referred as
GUJARATI) at Gajadara village of
ROAD SAFETY Waghodia taluka in Vadodara district.
The Company has been playing a
leading role for many years now in It is the first of its kind initiative in the
promoting road safety and safe driving country. The Institute will not only
in the Country. The Company believes provide driving training to tribal youth,
that in addition to monetary support, it will also offer automobile technical
one of the best ways for corporates to training to them and help their
fulfill their social responsibility is by employability.
offering their managerial skills to
society.

MARUTI SUZUKI INDIA LTD.
Auditors' Report
TO THE MEMBERS OF MARUTI SUZUKI INDIA LIMITED

(Formerly Maruti Udyog Limited)
1. We have audited the attached Balance Sheet of Maruti Suzuki India Limited (Formerly Maruti Udyog Limited), as at
31st March, 2008, 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 aggregating
to Rupees 398 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, 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 into the register maintained under
Section 301 of the Act.
AUDITORS' REPORT 105

a million
promises...
(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.
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 generally 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, 2008 which have not been deposited on account of a dispute have been stated in
Note 33 on schedule 23.
x) The company has no accumulated losses as at March 31, 2008 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.
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;
(e) On the basis of written representations received from the directors as on March 31st 2008 and taken on record
by the Board of Directors, none of the directors is disqualified as on 31st March 2008 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 2008;
(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
Place:New Delhi Price Waterhouse
Date: April 24, 2008 Chartered Accountants
AUDITORS' REPORT 107

a million
promises...
Balance Sheet As at 31st March, 2008
(Rs in Million)
SCHEDULE AS AT AS AT
31.03.08 31.03.07
SOURCES OF FUNDS
SHAREHOLDERS' FUNDS
Capital 1 1,445 1,445
Reserves and Surplus 2 82,709 84,154 67,094 68,539
LOAN FUNDS
Secured Loans 3 1 635
Unsecured Loans 4 9,001 9,002 5,673 6,308
DEFERRED TAX (Note 19 on Schedule 23)
Deferred Tax Liabilities 2,697 2,776
Deferred Tax Assets (996) 1,701 (1,101) 1,675
Total 94,857 76,522
APPLICATION OF FUNDS
FIXED ASSETS 5
Gross Block 72,853 61,468
Less: Depreciation (39,888) (34,871)
32,965 26,597
Capital Work-In-Progress 6 7,363 40,328 2,507 29,104
INVESTMENTS 7 51,807 34,092
CURRENT ASSETS, LOANS AND ADVANCES
Inventories 8 10,380 7,014
Sundry Debtors 9 6,555 7,474
Cash and Bank Balances 10 3,240 14,228
Other Current Assets 11 331 384
Loans and Advances 12 10,403 9,241
30,909 38,341
LESS: CURRENT LIABILITIES AND PROVISIONS
Current Liabilities 13 24,492 20,110
Provisions 14 3,695 4,905
28,187 25,015
Net Current Assets 2,722 13,326
Total 94,857 76,522
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 HIROFUMI NAGAO ANIL RUSTGI

Membership Number - F 084451 Managing Director & CEO Director & Managing Company Secretary
Partner Executive officer - Admin & Chief Legal Officer
PRICE WATERHOUSE
Chartered Accountants
New Delhi
April 24, 2008

Profit and Loss Account For the year ended 31st March, 2008
(Rs in Million)
SCHEDULE For the For the
year ended year ended
31.03.08 31.03.07
INCOME
Gross Sales 15 209,493 171,442
less: Excise Duty 30,890 25,520
Net Sales 178,603 145,922
Income from Services [Net of expenses Rs 208 million 759 617
(previous year Rs 705 million)]
Other Income 16 8,876 5,984
Total 188,238 152,523
EXPENDITURE
Consumption of Raw Materials and Components 130,342 101,374
(Note 4 on Schedule 23)
Purchase of Traded Goods 7,771 6,159
Consumption of Stores 1,470 1,097
Employees Remuneration and Benefits 17 3,562 2,884
Manufacturing, Administrative and Other Expenses 18 11,298 8,258
Selling and Distribution Expenses 19 5,602 4,999
Total 160,045 124,771
Less: Vehicles/ Dies for Own Use 198 143
Add : (Increase) /Decrease to Work-in-progress and
Finished Goods and Spare Parts 21 (2,917) 2,007
Total 156,930 126,635
Earnings before interest, depreciation, tax and amortizations (EBIDTA) 31,308 25,888
Interest 20 596 376
Depreciation (Note 24 on Schedule 23) 5 5,682 2,714
6,278 3,090
Profit before Tax 25,030 22,798
Less : Tax Expense - Current Tax 7,509 6,089
- Deferred Tax (Note 19 on Schedule 23 ) 26 897
- Fringe Benefit Tax 98 67
- Previous Years 89 125
Profit after Tax 17,308 15,620
Add: Brought forward from previous year's accounts 56,373 43,939
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 73,681 59,471
Less: Appropriation :
Debenture Redemption Reserve - 17
General Reserve 1,731 1,562
Balance carried forward to Balance Sheet 70,257 56,373
Basic/Diluted Earnings Per Share (in Rupees) (Note 18 on Schedule 23) 59.91 54.06
SIGNIFICANT ACCOUNTING POLICIES 22
NOTES TO ACCOUNTS 23
This is the Profit & Loss Account referred to The Schedules referred to above form an
in our report of even date. integral part of the Profit & Loss Account.

PRICE WATERHOUSE
New Delhi
April 24, 2008
PROFIT AND LOSS ACCOUNT 109

a million
promises...
Cash Flow Statement For the year Ended 31st March, 2008
(Rs in Million)
For the For the
31.03.08 31.03.07
A. Cash flow from Operating Activities:
Net Profit before Tax 25,030 22,798
Adjustments for:
Depreciation 5,682 2,714
Interest Expense 596 376
Interest Income (1,408) (1,109)
Dividend Income (1,668) (1,528)
Net Loss on Sale / discarding of Fixed Assets 24 4
Profit on sale of Investments (898) (389)
Debts / Advances Written off - 22
Provision for diminution in value of investment 26
Provisions no longer required written back (855) (459)
Opening Loss of MSAIL adjusted from opening surplus on amalgamation - (84)
Impact of transition provision of Accounting Standard 15 - (5)
Employee Benefit
Mark to Market loss on Derivatives 505 -
Operating Profit before Working Capital changes 27,034 22,340
Adjustments for changes in Working Capital :

- (Increase)/Decrease in Sundry Debtors 919 (1,035)
- (Increase)/Decrease in Other Current Assets, Loans & Advances (1,191) (1,523)
- (Increase)/Decrease in Inventories (3,366) 1,798
- Increase/(Decrease) in Current Liabilities and Provisions 3,555 5,170
Cash generated from Operating Activities 26,951 26,750

- Taxes (Paid) (Net of TDS) (8,647) (6,352)
Net Cash from Operating Activities 18,304 20,398
B. Cash flow from Investing Activities:

Purchase of Fixed Assets (16,999) (14,073)
Sale of Fixed Assets 69 123
Sale of investments 170,123 109,253
Purchase of investments (186,966) (122,444)
Interest received 1,490 1,127
Dividend received 1,668 1,528
Net Cash from Investing Activities (30,615) (24,486)

(Rs in Million)
For the For the
31.03.08 31.03.07
C. Cash flow from Financing Activities:

Proceeds from Short term borrowings 3,999 233
Proceeds from Long term borrowings - 5,675
Repayment of Short term borrowings (634) (317)
Interest paid (743) (280)
Dividend paid (1,299) (1,011)
Net Cash from Financing Activities 1,323 4,300
Net Increase/(Decrease) in Cash & Cash Equivalents (10,988) 212
Cash and Cash Equivalents as at 1st April (Opening Balance) 14,228 14,016
Cash and Cash Equivalents as at 31st March (Closing Balance) 3,240 14,228
Cash and Cash Equivalents comprise 3,240 14,228

Cash, Cheques in hand 1,339 946
Balance with Scheduled Banks in Current Accounts 1,633 202
Balance with Scheduled Banks in Deposit Accounts - 13,080
Balance with Other Banks in Current Accounts 268 -
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 3 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.

PRICE WATERHOUSE
New Delhi
April 24, 2008
CASH FLOW STATEMENT 111

a million
promises...
Schedules
(Rs in Million)
AS AT AS AT
31.03.08 31.03.07
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 1st Additions Transfer to Balance as at

April, 2007 during the General 31st March
Year Reserve 2008
SCHEDULE 2 - RESERVES AND SURPLUS
Share Premium Account 4,241 - - 4,241
Debenture Redemption Reserve 100 - 100 -
General Reserve 6,380 1,831 - 8,211
Balance as per Profit and Loss Account 56,373 13,884 - 70,257
67,094 15,715 100 82,709
(Rs in Million)
AS AT AS AT
31.03.08 31.03.07
SCHEDULE 3 - SECURED LOANS
LONG TERM LOANS
FROM OTHERS
Loan from Sundaram Finance Limited 1 2
(Secured against vehicles taken on finance lease)
(Payable within 1 Year Rs 0 Million - Previous Year Rs 1 Million)
SHORT TERM LOANS
- FROM BANKS
Cash Credit/Working Capital Demand Loans/Rupee Loans - 233
secured by pari passu first charge on the stock, book debts and
other current assets.
- FROM OTHERS
9% Non-Convertible Debentures- Series II secured by mortgage - 400
on specific Buildings and Plant and Machinery
(Redeemed at par on 4th December 2007)
1 635

(Rs in Million)
AS AT AS AT
31.03.08 31.03.07
SCHEDULE 4 - UNSECURED LOANS

SHORT TERM LOANS - FROM BANKS
Export Credit 3,999 -
LONG TERM LOANS - FROM BANKS
Foreign Currency Loans * 5,002 5,673
(Loan from Japan Bank of International Corporation and
Bank of Tokyo Mitsubishi) *(Guaranteed by Suzuki Motor Corporation ,
Japan, the Holding Company)
9,001 5,673
SCHEDULE 5 - FIXED ASSETS

(Note 23, 24 and 29 on Schedule 23)
Particulars Gross Block at Cost Depreciation Net Block
AS AT Additions Deductions/ AS AT UP TO For the Deductions/ UP TO AS AT AS AT

01.04.07 Adjustments 31.03.08 01.04.07 year Adjustments 31.03.08 31.03.08 01.04.07
Freehold land (Note 1 & 4) 1,274 - - 1,274 - - - - 1,274 1,274
Leasehold land 570 - - 570 4 - - 4 566 566
Building (Note 2) 4,243 1,210 (1) 5,452 836 137 (1) 972 4,480 3,407
Plant and Machinery (Note 3) 53,727 10,330 (648) 63,409 33,269 5,106 (635) 37,740 25,669 20,458
Electronic Data Processing

Equipment 949 277 (4) 1,222 529 337 (4) 862 360 420
Furniture , Fixtures and Office

Appliances 332 81 (1) 412 150 23 - 173 239 182
Vehicles:
- Owned 370 245 (104) 511 82 78 (25) 135 376 288
- Leased 3 - - 3 1 1 - 2 1 2
Total 61,468 12,143 (758) 72,853 34,871 5,682 (665) 39,888 32,965 26,597
Previous Year Figures 49,546 12,486 (564) 61,468 32,594 2,714 (437) 34,871 26,597
(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) 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.
(5) Additions include Rs. Nil interest capitalised on foreign currency loan (Previous year Rs 101 million)
(Rs in Million)
AS AT AS AT
31.03.08 31.03.07
SCHEDULE 6 - CAPITAL WORK-IN-PROGRESS

Plant and Machinery 3,653 1,048
Civil Work-in-Progress 576 447
Capital Advances 3,134 1,012
7,363 2,507
SCHEDULES 113
a million
promises...
Schedules Contd.
(Rs in Million)
AS AT AS AT
31.03.08 31.03.07
SCHEDULE 7 - INVESTMENTS
Trade Investments :
Long Term:
Quoted Equity Shares (Fully Paid) 111 111
Unquoted Equity Shares (Fully Paid) 3,037 1,321
Investment in Subsidiary Companies
Unquoted Equity Shares (Fully Paid) 3 3
Other Investments:
Long Term (Unquoted) :
Mutual Funds 37,710 24,052
Current (Unquoted) :
Mutual Funds 10,946 8,605
51,807 34,092
Aggregate Value of Unquoted Investments 51,696 33,981
Aggregate Value of Quoted Investments 111 111
Market Value of Quoted Investments 2,195 2,704
SCHEDULE 8 - INVENTORIES
Components and Raw Materials
In transit/under inspection 1,053 1,498
With vendors 120 117
At factory 2,204 3,377 1,747 3,362
Stores and Spares
Vehicles 877 818
Machinery 20 23
Consumables 67 58
In transit/under inspection 25 989 18 917
Tools at factory 147 138
Dies and Moulds 0 41
Work-in-Progress 459 309
Finished Goods 5,408 2,247
10,380 7,014
SCHEDULE 9 - SUNDRY DEBTORS

Debts outstanding for more than six months
Unsecured - Considered Good 1,128 1,017
- Considered Doubtful 266 273
1,394 1,290
Less: Provision for Doubtful Debts 266 1,128 273 1,017
Other Debts :
Secured 318 378
6,555 7,474

(Rs in Million)
AS AT AS AT
31.03.08 31.03.07
SCHEDULE 10 - CASH AND BANK BALANCES

Cash in hand 4 5
Cheques in hand 1,335 941
Bank balances with Scheduled Banks in :
Current Accounts:* 1,633 202
Deposit Accounts: - 13,080
Bank balances with Other Banks 268 -
3,240 14,228
*Includes unclaimed dividend amounting to Rs. 3 Million
(Previous Year Rs. 2 Million)
Bank balances with Other Banks
Bank - ABN Amro Bank Ltd - Current Account 226 -
Bank-Mizuho Corporation Bank Ltd - Current Account 42 -
SCHEDULE 11 - OTHER CURRENT ASSETS

Interest accrued on Deposits, Loans and Advances
Secured - Considered Good 40 42
46 48
Less: Provision for Doubtful Interest 6 40 6 42
Unsecured - Considered Good 119 199
120 200
Less: Provision for Doubtful Interest 1 119 1 199
Claims - Unsecured
Considered Good 172 143
Considered Doubtful 43 56
215 199
Less: Provision for Doubtful Claims 43 172 56 143
331 384
SCHEDULE 12 - LOANS AND ADVANCES

(Notes 21 & 22 on Schedule 23)
Loans
Secured - Considered Good 45 47
54 58
Less: Provision for Doubtful Loans 9 45 11 47
Unsecured - Considered Good 1,594 362
1,595 363
Less: Provision for Doubtful Loans 1 1,594 1 362
SCHEDULES 115
a million
promises...
Schedules Contd.
(Rs in Million)
AS AT AS AT
31.03.08 31.03.07
Advances recoverable in cash or in kind

or for value to be received:
2,885 2,347
Less: Provision for Doubtful Advances 72 2,813 72 2,275
Deposits - Considered Good unless otherwise stated
Balance with Customs, Port Trust and other
Government Authorities 5,896 6,546
Inter Corporate Deposits Considered Doubtful 140 140
Less :Provision for Doubtful Deposits 140 - 140 -
Other Deposits 55 11
10,403 9,241
SCHEDULE 13 - CURRENT LIABILITIES

Sundry Creditors (Note 20 on Schedule 23)
Due to Micro and Small enterprises 234 176
Others 8,315 8,549 8,920 9,096
Advances from Customers/Dealers 737 440
Book Overdraft 3,525 928
Unclaimed Dividend * 3 2
Other Liabilities 10,157 7,604
Deposits from Dealers, Contractors and Others 1,425 1,797
Interest Accrued but not due on :
Loans - 12
Others 96 96 231 243
24,492 20,110
*Not due to be credited to the Investor Education and Protection Fund
SCHEDULE 14 - PROVISIONS
(Note 25 and 27 on Schedule 23)
Litigation related provisions 596 710
Leave Encashment/ Gratuity 457 441
Warranty & Product Recall 253 541
Others Provisions 273 539
Taxation (Net of Advance-tax Rs 7,470 million -
Previous Year Rs 5,709 Million) 425 1,155
3,695 4,905

(Rs in Million)
For the For the

31.03.08 31.03.07
SCHEDULE 15 - SALES
Vehicles 197,990 161,367
Spare Parts / Dies and Moulds / Components 11,503 10,075
209,493 171,442
SCHEDULE 16 - OTHER INCOME

Interest on:
a) Fixed Deposits / Securities (Gross) (Includes TDS of 645 318
Rs. 146 Million - previous year Rs. 69 million)
b) Receivables from Dealers (Gross) (includes TDS 423 339
of Rs. 35 Million - previous year Rs. 22 million)
c) Advances to Vendors (Gross) (Includes TDS of 317 190
Rs. 65 Million - previous year Rs. 43 million)
d) Others 23 1,408 262 1,109
Sale of Scrap (Net of Excise) 1,616 1,206
Sales Tax Benefit 136 319
Miscellaneous Receipts (Gross)
(Includes TDS of Rs. 8 Million - previous year Rs.3 million ) 1,183 750
Profit on Sale of Investments:
Long Term Investments 849 337
Short Term Investments 49 898 52 389
Dividend:
Trade Investments - Long Term 31 61
Others 1,637 1,668 1,467 1,528
Provisions no longer required written back 855 459
Recovery of Service Charges 346 291
Less: Repair Cost of Damaged Vehicles 44 302 67 224
Exchange Variation (Net) 810 -
8,876 5,984
SCHEDULE 17 - EMPLOYEES REMUNERATION AND BENEFITS

Salaries ,Wages ,Allowances and Other Benefits 3,134 2,551
(Net of Staff cost recovered Rs 64 million - previous year Rs 43 million)
Contribution to Provident and Other Funds 181 156
Staff Welfare Expenses 242 173
Group Insurance 5 4
3,562 2,884
SCHEDULE 18 - MANUFACTURING,
ADMINISTRATIVE AND OTHER EXPENSES
Power and Fuel (Net of amount recovered Rs 574 million,
previous year Rs 362 million) 1,473 974
Rent 72 65
Rates, Taxes and Fees 7 5
SCHEDULES 117
a million
promises...
Schedules Contd.
(Rs in Million)
ForAT
AS the For the
year ended
31.03.08 year ended
31.03.08 31.03.07
Insurance 73 65
Repairs and Maintenance :
Plant and Machinery 281 251
Building 137 106
Others 90 508 81 438
Royalty 4,952 3,673
Tools / Machinery Spares Charged Off 774 517
Net Loss on Sale/discarding of Fixed Assets 24 4
Bad Debts/Advances Written Off - 22
Exchange Variation (Net) - 94
Loss on Mark to Market of derivatives 505 -
Diminution in value of investment 26 -
Other Miscellaneous Expenses 2,884 2,401
11,298 8,258
SCHEDULE 19 - SELLING AND DISTRIBUTION EXPENSES

Advertisement and Sales Promotion 3,730 3,389
Warranty & Product Recall 254 234
Transportation and Distribution Expenses 1,618 1,376
5,602 4,999
SCHEDULE 20 - INTEREST
Interest
Fixed :
Foreign Currency Loans 425 238
Debentures 21 446 44 282
Others 150 94
596 376
SCHEDULE 21 - (INCREASE) /DECREASE IN WORK-IN-PROGRESS,

FINISHED GOODS & SPARE PARTS
Work-in-Progress
Opening Stock 309 248
Less: Closing Stock 459 (150) 309 (61)
Finished Goods
Opening Stock 2,247 4,857
Less: Closing Stock 5,408 2,247
(3,161) 2,610
Less: Excise Duty on Increase/ (Decrease) of Finished Stock (446) (2,715) 424 2,186
Spare Parts-Traded
Opening Stock 690 573
Less: Closing Stock 742 (52) 691 (118)
(2,917) 2,007

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 standard 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 land and vehicles are depreciated on straight line method on a pro-rata basis
from the month in which each assets 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 at the following useful life:
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) 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. From 1st
April 2007 onwards, an increase or decrease in long term liability related to assets on account of foreign
exchange fluctuations is charged to revenue.
(Also refer note 24 on Schedule 23)
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.
SCHEDULES 119
a million
promises...
Schedules Contd.
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 rates prevailing at the date of 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 assets, other than fixed assets and liabilities denominated in foreign currency, are
reported at the exchange rates prevailing at the balance sheet date.
c) 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.
d) In case of forward foreign exchange contracts taken for highly probable /forecast transactions, the net loss, if
any, calculated on 'Mark to Market' principle as at the balance sheet date is recorded.
e) 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 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 are
administered through Trusts.
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

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. 3,130 million (Previous year Rs. 2,592 million). Against
this, the Company has deposited a sum of Rs. 27 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. 9,905 million (Previous year Rs. 8,157 million). Against this, the Company has
deposited a sum of Rs. 4,745 million under protest (Previous year Rs. 4,869 million).
v. Service-tax demands of Rs. 253 million (Previous year Rs. 797 million).
vi. Claims against the Company for recovery of Rs 639 million (Previous year Rs. 776 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. Nil).
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. 2 million).
d) 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. 2,000 million (Previous year Rs. 2,000 million). Against this,
the balance outstanding as at the year-end is Rs. 194 million. (Previous year Rs. 26 million)
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 balance
outstanding as at the year-end is Rs. 1,543 million. (Previous year Rs. 101 million)
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 2,764 million
(Previous year Rs. 1,050 million).
SCHEDULES 121
a million
promises...
Schedules Contd.
3) Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not
provided for, amount to Rs.12,692 million (Previous year Rs. 8,076 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. 26 million (Previous year Rs. 56
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 2008, the Company has availed of sales tax
benefit amounting to Rs. 1,605 million (Previous year Rs. 1,469 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)
2007-08 2006-07
7) The following expenses incurred on Research and Dev-

elopement are included under respective account heads:
Employees Remuneration and Benefits 171 154
Other Expenses of Manufacturing and 475 382
Administration (Including Depreciation
on Research and Development assets)
646 536
8) a) MANAGERIAL REMUNERATION
Salaries and Allowances 35.14 30.95
Commission / Performance linked Bonus 26.95 20.80
Contribution to Provident Fund 2.19 0.67
Gratuity and Leave Encashment Paid 15.17 0.47
Estimated value of Perquisites 14.25 14.25
93.70 * 67.14
*Includes profit linked bonus amounting to Rs 11.42 million which is subject to approval of shareholders
*Includes remuneration aggregating Rs 3.2 million paid to a director whose appointment is subject to
approval of the shareholders and Rs 6.9 million paid to 2 directors whose appointment is subject to approval of the
shareholders and the Central Government.
b) Computation of net profit in accordance with Section 349/ 198 of the Companies Act, 1956
Profit before Taxation 25,030 22,798

Add: Depreciation as per accounts 5,682 2,714
Managerial Remuneration Whole Time Directors 88 67
Commission to Non-Whole Time Directors 6 -
Directors' Sitting Fees (rounded off) 0 0
Provision for Diminution in value of Investment 26 -
Net Loss on Sale/discarding of Fixed Assets 24 5,826 4 2,785
30,856 25,583

(Rs in Million)
2007-08 2006-07
Less: Depreciation as per Section
350 of Companies Act,1956 5,682 2,714
Provision no longer required written back 855 459
Profit on Sale of Investments 898 7,435 389 3,562
Net Profit as per Sections 349/350 23,421 22,021
Maximum Commission payable to
Non-Whole-time Directors @ 1% on Rs. 23421 234 220
million (Previous Year 1% on Rs. 22,021 million) Restricted to 6 -
9) AUDITORS' REMUNERATION*
Statutory Audit 6.83 6.33
Other Audit Services / Certification 0.65 0.16
Reimbursement of Expenses 0.34 0.11
* excluding service tax
10) CIF VALUE OF IMPORTS

Raw Materials and Components 13,279 12,902
Capital Goods 8,753 680
Maintenance Spares 237 111
Dies and Moulds 263 466
Other items 79 71
11) EXPENDITURE IN FOREIGN CURRENCY (CASH BASIS)

Fees for Technical Services (Net of TDS) 631 417
Traveling Expenses 107 96
Royalty (Net of TDS) 3,834 2,594
Others 333 210
12) EARNINGS IN FOREIGN CURRENCY

Export of Goods (FOB basis) 7,413 5,781
13) DIVIDEND REMITTED IN FOREIGN

CURRENCY (CASH BASIS)
Dividend for the year 2006-07 (Previous year 2005-06) 705 548
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 14,138 12,803
Indigenous 116,204 88,571
130,342 101,374
PERCENTAGE OF TOTAL CONSUMPTION
Imported 11% 13%
Indigenous 89% 87%
ii) MACHINERY SPARES
Imported 246 133
Indigenous 351 233
597 366
PERCENTAGE OF TOTAL CONSUMPTION
Imported 41% 36%
Indigenous 59% 64%
SCHEDULES 123
a million
promises...
Schedules Contd.
15) LICENSED CAPACITY, INSTALLED CAPACITY AND ACTUAL PRODUCTION
PRODUCT UNIT LICENSED INSTALLED ACTUAL

CAPACITY CAPACITY** PRODUCTION
Passenger Cars and
Light Duty Utility Vehicles Nos. -* 520,000 777,017
( - )* (450,000) (667,048)
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 764,842 197,990 11,976 2,247 24,174 5,408
(674,924) (161,367) (20,378) (4,857) (11,976) (2,247)
Spare Parts / Components * 11,026 * 818 * 877
* (9,303) * (684) * (818)
Dies and Moulds * 477 * 41 * 0
* (72) * (36) * (41)
Notes :
1. Purchase of traded goods comprise Vehicles, Spares, Components and Dies and Moulds. During the year 1,016
Vehicles (Previous year Nil) were purchased.
2. Closing Stock of vehicles is after adjustment of 23 vehicles (Previous Year - 41) totally damaged.
3. Sales quantity excludes own use vehicles 981 Nos. (Previous Year - 425 Nos.)
4. Sales quantity excludes sample vehicles 69 Nos. (Previous Year - 60 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 (Rs in Million)

2007-08 2006-07
GROUP OF MATERIAL UNIT QTY. AMOUNT QTY. AMOUNT
Steel Coils MT 154,880 5,713 123,529 4,702
Ferrous Castings MT 23,624 1,693 22,844 1,422
Non-ferrous Castings MT 13,260 2,344 10,880 2,024
Other Components * 119,302 * 92,051
Paints K.LTR 5,809 4,957
MT 3,654 1,290 3,061 1,175
130,342 101,374
* In view of the innumerable sizes/numbers (individually less than 10%) of the components, it is not possible to
give quantitative details.

(Rs in Million)
2007-08 2006-07
18) STATEMENT OF EARNINGS PER SHARE

Net Profit after tax attributable to shareholders (in Million Rupees) 17,308 15,620
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) 59.91 54.06
19) DEFERRED TAX

Major Components of Deferred Tax arising on account of temporary timing differences along with their movement
as at March 31, 2008 are : (Rs in Million)
Movement During
Assets 31.03.07 the year 31.03.08
Provision for Doubtful debts / advances 184 (22) 162
Contingent Provisions 494 1 495
Others 423 (84) 339
Total (A) 1,101 (105) 996
Liabilities
Depreciation on Fixed Assets 2,296 (307) 1,989
Exchange gain on account of restatement of ECB - 228 228
Allowances under Income Tax Act, 1961 468 - 468
Deferred Revenue Expenditure 12 - 12
Total (B) 2,776 (79) 2,697
Net Deferred Tax Liability (B) - (A) 1,675 26 1,701
Previous Year 779 896 1,675
20) The Balance due to Micro and Small Scale Enterprises as at March 31, 2008 is Rs. 233 Million (Amount due less than
30 days). A sum of Rs. 0 Million (rounded off) due to these enterprises is under reconciliation as at March 31, 2008.
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
2007-08 2006-07
Sundry Debtors
Balance at year end
Suzuki Powertrain India Limited 407 451
Suzuki France SA 4 -
S Iberica (including Suzuki Madrid) 0 3
Suzuki GB PLC 10 6
Suzuki Italia SPA 1 -
Suzuki International Europe GMBH 19 9
Suzuki Philippines 1 31
P T Indomobil 10 201
Loans and Advances
Suzuki Powertrain India Limited 472 465
Maximum Balance During the Year 598 566
Suzuki Motorcycle India Limited 2 -
Maximum Balance During the Year 2 -
SCHEDULES 125
a million
promises...
Schedules Contd.
22) LOANS AND ADVANCES IN NATURE OF LOANS GIVEN TO SUBSIDIARIES AND ASSOCIATES ETC:
As at Maximum As at Maximum
31.3.08 Balance 31.3.07 Balance
Name of Company during the year during the year
Suzuki Powertrain India Limited Associate 248 341 341 442
23) The Company normally acquires vehicles under Finance Leases with the respective underlying assets as security.
Minimum lease payments outstanding as of 31st March 2008 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 on Payments
31st March 08
Within One Year 1 0 1
Later than one Year but less than five Years 1 0 0
Total 2 0 1
Minimum Lease payments outstanding as on 31st March 08 in respect of assets taken on operating leases are as
follows.
Due Total Minimum Contingent Rent
Lease Payment
Outstanding as on
31st March 08
Within One Year 1 1
Later than one Year but less than five Years 1 1
Minimum Lease Payment Contingent Rent

Paid During the year 1 1
Charged to Profit and Loss Account 1 1
24) Based on technical evaluation and market considerations, the Company has, with effect from April 1, 2007, revised
the estimated useful life of certain Plant and Machinery from 9 - 13 Years to 8 -11 years, Dies and Jigs from 5 Years to
4 Years and Electronic Data Processing Equipment from 6 Years to 3 Years. This has resulted in depreciation being
higher by Rs 2,122 Million for the current year with a corresponding reduction in profit for the year and net fixed
assets.
25) 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 :-
(In Rs. Million)
Employers Contribution to Superannuation Fund* 19
Employers Contribution to Post Employment Medical Assistance Scheme. 1
Provident Fund 86

B. State Plans
a). Employers contribution to Employees' State Insurance.*
b). Employers contribution to Employees' Pension Scheme 1995.*

During the year the Company has recognised the following amounts in the Profit and Loss account :-
(In Rs. Million)
Employers contribution to Employees' State Insurance.* 4
Employers contribution to Employees' Pension Scheme 1995.* 34
* Included in Contribution to Provident and Other Funds under Employee Remuneration and Benefits (Refer
schedule 17)
C. Defined Benefit Plans
a) Employees' Gratuity Fund.
b) Leave Encashment/ Compensated Absence.
c) Retirement Allowance
In accordance with Accounting Standard 15 (revised 2005), an actuarial valuation was carried out in respect of
the aforesaid defined benefit plans based on the following assumptions.
Leave Encashment/ Employees Retirement

Compensated Absence Gratuity Fund Allowance
Discount Rate (per annum) 8.50% 8.50% 8.50%
Rate of increase in compensation levels 6.00% 6.00% 6.00%
Rate of return on plan assets. Not Applicable 8.50% Not Applicable
Expected Average remaining working
lives of employees (years) 21 21 21
In calculating the leave encashment/ compensated absence liability 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.

Present value obligation as at April,01, 2007 441 484 22
Interest cost 31 40 -
Past Service cost - - -
Current service cost 59 27 3
Curtailment cost - - -
Settlement cost - - -
Benefits Paid 80 23 -
Actuarial (gain)/ loss on Obligations (22) (4) -
Present value obligation as at March,31, 2008 429 524 25
SCHEDULES 127
a million
promises...
Schedules Contd.
Changes in the Fair value of Plan Assets

Employees Gratuity Fund
Fair value of Plan Assets as at April,01, 2007 456
Expected return on Plan Assets 39
Contributions -
Benefits Paid 23
Actuarial gain/ (loss) on Obligations 19
Fair value of Plan Assets as at March,31, 2008 491
Reconciliation of Present value of Defined Benefit Obligation and Fair value of Assets
March 31, 2008 March 31, 2007
Leave Employees Retirement Leave Employees Retirement
Encashment/ Gratuity Fund Allowance Encashment/ Gratuity Fund Allowance
Compensated Compensated
Absence Absence
Present value
obligation 429 524 25 441 484 22
Fair value of Plan Assets - 491 - 456
Surplus/ (Deficit) (429) (33) (25) (441) (28) (22)
Unfunded Net Asset/
(Liability) recognised in
Balance Sheet. (429) (25) (441) (22)
Expenses Recognised in Profit & Loss Account

Current Service Cost 59 27 3
Past Service Cost - - -
Interest Cost 31 40 -
Expected return on Plan Assets - (39)
Curtailment Cost - -
Settlement Cost
Net Actuarial (gain)/ loss recognised during the year (22) (23) -
Total Expense recognised in Profit & Loss Account 68 5 3
* Included in Salaries, Wages, Allowances and Other Benefits under Employee Remuneration and Benefits
(Refer schedule 17)
Constitution of Plan Assets Gratuity

(a) Debt Funds 465
(b) Special Deposit with RBI 52
(c) Others 2
Total 519
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 FY2008-09 will be Rs.3 Million.

26) STATEMENT OF TRANSACTIONS WITH RELATED PARTIES
Holding Company Key Management Personnel Associates Fellow Subsidiaries

Suzuki Motor Corporation Mr Shinzo Nakanishi ( Joined on 19th Dec.2007) Asahi India Glass Limited Suzuki Motor Iberica S.A. (Including Suzuki Madrid S.A. ,
Joint Ventures Mr. Jagdish Khattar (Retired on 18th Dec.2007) Bharat Seats Limited Suzuki Logistic Service,S.L.U.)
J.J. Impex (Delhi) Private Limited Mr. Kobyashi (Resigned on 2nd Dec.2007) Caparo Maruti Limited Suzuki France S.A.S.
Mark Exhaust Systems Limited Mr. Hirofumi Nagao Climate Systems India Limited Suzuki Italia S.P.A.
Bellsonica Auto Component India Pvt Ltd Mr. Masayaki Osada (Resigned on 1st Jan.2008) Denso India Limited Suzuki Australia Pty. Ltd.
FMI Automotive Components Ltd. Mr Tsuneo Ohashi ( Joined on 1st Jan.2008) Jay Bharat Maruti Limited Suzuki Austria Automobil Handels GmbH
Subsidiaries Mr Keiichi Asai ( Joined on 29th Jan.2008) Krishna Maruti Limited Magyar Suzuki Corporation
Maruti Insurance Brokers Limited Mr. Shinichi Takeuchi (Resigned on 26th May 2007) Machino Plastics Limited Suzuki GB PLC.
Maruti Insurance Distribution Services Limited Mr. Syuji Oishi SKH Metals India Limited Suzuki Motor Poland Ltd.
True Value Solutions Limited Nippon Thermostat (India) Limited Suzuki International Europe GmbH
Maruti Insurance Agency Solutions Limited Sona Koyo Steering Systems Limited Suzuki Cars ( Ireland ) Limited
Maruti Insurance Network Services Limited Citicorp Maruti Finance Limited Suzuki Philippines, Inc.-814
Maruti Insurance Agency Services Limited Maruti Countrywide Auto Financial Services Pvt. Ltd. Suzuki Motorcycle India Private Ltd.
Maruti Insurance Agency Logistic Limited Magneti Marelli Powertrain India Pvt. Ltd. Suzuki Powertrain India Limited
PT Indomobil Suzuki International (Rs in Million)
2007-08 2006-07
Joint Subsidiaries Associates Holding Fellow Key Total Joint Subsidiaries Associates Holding Fellow Key Total
Ventures Company subsidiaries Management Venturesl Company subsidiaries Management
Personnel Personnel
Outstanding at year end
Loans and advances recoverable
Suzuki PowerTrain India Limited - - - - 472 - 472 - - - - 465 - 465
Krishna Maruti Limited - - 104 - - - 104 - - 162 - - - 162
Others 72 - 165 3 3 - 243 62 0 135 25 - - 222
Total 72 - 269 3 475 - 819 62 0 297 25 465 - 849
Amounts payable
Suzuki Motor Corporation - - - 3,045 - - 3,045 - - - 2,833 - - 2,833
Others 90 - 1,224 - 14 - 1,328 119 1 1,514 - 57 - 1,691
Total 90 - 1,224 3,045 574 - 4,933 119 1 1,514 2,833 387 - 4,854
Guarantees given to third parties
by the Company
Suzuki PowerTrain India Limited - - - - 1,814 - 1,814 - - - 104 - 104
Others - - - - - - - - - - - - - -
Total - - - - 1,814 - 1,814 - - - - 104 - 104
Amount recoverable
Jay Bharat Maruti Limited - - 279 - - - 279 - - 147 - - - 147
Machino Plastics Limited - - 144 - - - 144 - - 213 - - - 213
Caparo Maruti Limited - - 139 - - - 139 - - 88 - - - 88
Others 35 - 322 17 45 - 419 22 - 217 89 251 - 579
Total 35 - 884 17 452 - 1,388 22 - 665 89 702 - 1,478
Transaction during the year
Purchases of Capital items
Bellsonica Auto Component India Pvt Ltd 409 - - - - - 409 - - - - - - -
Others - - 3 - 85 - 88 - - 3 - 1 - 4
Total 409 - 3 3,183 85 - 3,680 - - 3 2,081 1 - 2,085
Sale of goods
Caparo Maruti Limited - - 274 - - - 274 - - 123 - - - 123
PT Indomobil Suzuki International - - - - 1,199 - 1,199 - - - - 202 - 202
SCHEDULES
Others 215 - 85 119 281 700 120 - 257 88 368 - 833
Total 215 - 637 119 1,480 - 2,451 120 - 535 88 570 - 1,313
129
130
(Rs in Million)
2007-08 2006-07
Joint Subsidiaries Associates Holding Fellow Key Total Joint Subsidiaries Associates Holding Fellow Key Total
Ventures Company subsidiaries Management Venturesl Company subsidiaries Management
Personnel Personnel
Other Income
Finance income/ commission/Dividend
a million
Krishna Maruti Limited - - 65 - - - 65 - - 35 - - - 35
Suzuki PowerTrain India Limited - - - - 189 - 189 - - - - 88 88
Others 22 - 167 - - - 189 13 - 251 - - - 264
Total 22 - 303 - 189 - 514 13 - 333 - 88 - 434 promises...
Other Misc Income
SKH Metals Limited - - 54 - - - 54 - - 41 - - - 41
Others 6 - 88 1 4 99 - - 67 1 - 68
Total 6 - 226 1 282 - 515 - - 174 1 57 - 232
Expenditure
Maruti Suzuki India Limited ANNUAL REPORT 2007-08

Purchases of goods
Jay Bharat Maruti Limited - - 5,756 - - - 5,756 - - 4,455 - - - 4,455
Suzuki Powertrain India Ltd. - - - - 13,616 - 13,616 - - - - 3,156 - 3,156
Others 1,919 - 20,914 - 2 - 22,835 1,731 - 16,733 - - - 18,464
Total 1,919 - 26,670 10,202 13,618 - 52,409 1,731 - 21,188 9,642 3,156 - 35,717
Proposed Dividend
Suzuki Motor Corporation - - - 783 - - 783 - - - 705 - - 705
Total - - - 783 - - 783 - - - 705 - - 705
Royalty
Total - - - 4,931 - - 4,931 - - - 3,673 - - 3,673
Receiving of services
Suzuki Motor Corporation - - - 554 - - 554 - - - 405 - - 405
Others - - - - 40 - 40 - 5 - - - - 5
Total - - - 554 40 - 594 - 5 - 405 - - 410
Other-expenditure
Suzuki GB PLC - - - - 3 - 3 - - - - 2 - 2
Suzuki International Europe GmbH - - - - 2 - 2 - - - - 2 - 2
J.J. Impex (Delhi) Limited 4 - - - - - 4 - - - - - - -
Others - - 1 - - - 1 0 0 - - - - -
Total 4 - 1 - 5 - 10 0 0 - - 4 - 4
Managerial Remuneration
Mr Shinzo Nakanishi (Joined on 19th Dec.2007) - - - - - 5 5 - - - - - - -
Mr. Jagdish Khattar (Retired on 18th Dec.2007) - - - - - 33 33 - - - - - 21 21
Mr. Kobyashi (Resigned on 2nd Dec.2007) - - - - - 10 10 - - - - - 6 6
Mr. Hirofumi Nagao - - - - - 14 14 - - - - - 14 14
Mr. Masayaki Osada (Resigned on 1st Jan.2008) - - - - - 6 6 - - - - - - -
Mr. Tsuneo Ohashi ( Joined on 1st Jan.2008) - - - - - 3 3 - - - - - - -
\Mr Keiichi Asai ( Joined on 29th Jan.2008) - - - - - 2 2 - - - - - - -
Mr. Shinichi Takeuchi (Resigned on 26th May 2007) - - - - - 2 2 - - - - - 14 14
Mr. Syuji Oishi - - - - - 13 13 - - - - - 13 13
Mr. Kinjo Saito - - - - - - - - - - - - 0 0
Total - - - - - 88 88 - - - - - 68 68
Note:
Schedules Contd.
27) THE COMPANY HAS THE FOLLOWING PROVISIONS IN THE BOOKS OF ACCOUNT AS ON 31.03.2008 :
Description Balance as Additions Utilized/ Reversed Balance as on

on 31.03.07 during the year during the year 31.03.08
a) Litigation related provisions 710 45 159 596
b) Warranty / Product Recall 541 130 418 253
c) Others 529 46 315 260
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) Pursuant to the announcement on "Accounting for Derivatives" issued by Institute of Chartered Accountants of India
in March 2008, the Company has accounted for net losses aggregating Rs 505 million during the current year,
computed on 'Mark-to-Market' basis, on the derivative instruments outstanding as at March 31, 2008.The Company
does not hold or issue derivative financial instruments for trading or speculative purposes.
29) Pursuant to the issuance of the Companies (Accounting Standard) Rules, 2006 by the Central Government on
December 7, 2006, exchange gain amounting to Rs 451 million, on payables for fixed assets acquired in foreign
currency has been credited to Profit and Loss account.
30) 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 31.03.2008 31.03.2007 31.03.2008 31.03.2007 31.03.2008 31.03.2007
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 10 4,650,000 465,000 5 5
Denso India Limited 10 10 2,862,758 2,862,758 73 73
Jay Bharat Maruti Limited 5 5 6,340,000 3,170,000 16 16
Machino Plastics Limited 10 10 941,700 941,700 5 5
Sona Koyo Steering Systems Limited 2 2 6,900,000 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 Pvt. 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 Component India Private Limited 100 100 3,540,000 360,000 354 36
Suzuki Powertrain India Limited (Company under same management) 10 10 172,800,000 76,200,000 1,728 762
Magneti Marelli Powertrain India Pvt. Limited 10 - 1,710,000 - 17 -
FMI Automotive Components Limited 10 - 44,100,000 - 441 -
3,167 1,425
Less :Provision for diminution in value 130 104
3,037 1,321
SCHEDULES 131
a million
promises...
Schedules Contd.
(Rs. in Million)
%age 31.03.2008 31.03.2007 31.03.2008 31.03.2007 31.03.2008 31.03.2007
Unquoted Equity Shares in Subsidiary Companies (Fully Paid) :

Maruti Insurance Business Agency 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 10 50,000 50,000 0 0
Maruti Insurance Agency Logistic Limited 10 - 50,000 0 - 3
3 3
* Formerly known as Maruti Insurance Brokers Limited
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 2 Growth - 10.0 - 15,000,000 - 150
ABN Amro FTP Series 4 17 Month Growth 10.0 10.0 15,000,000 15,000,000 150 150
ABN Amro FTP Series 5 13 Month Growth 10.0 10.0 15,000,000 15,000,000 150 150
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 - 10,000,000 - 100 -
Birla Fixed Term Plan Series H Growth - 10.0 - 15,000,000 - 150
Birla FTP Series O Growth 10.0 10.0 15,000,000 15,000,000 150 150
Birla FTP Series AE Growth 10.0 - 20,000,000 - 200 -
Birla FTP Series AR Growth 10.0 - 10,000,000 - 100 -
Canbank Fixed Maturity Plan Growth 10.0 10.0 10,000,000 10,000,000 100 100
DBS Chola FMP Series 6 ( 371 days Plan ) Growth 10.0 10.0 10,000,000 10,000,000 100 100
DSP ML FTP Series 3A Growth - 1,000.0 - 150,000 - 150
DSP ML FMP 12.5 M Series 1 Inst Growth 10 - 40,000,000 - 400 -
DSP ML FMP 13 M Series 1 Inst Growth 10 - 30,000,000 - 300 -
DSP ML FMP 15 M Series 2 Inst Growth 10 - 15,000,000 - 150 -
DSP ML FTP Series 3F Dividend 1,000 - 100,000 - 100 -
Deutsche Fixed Term Fund Serie 5 Growth - 10 - 15,000,000 - 150
DWSFixed Term Fund Series 18 Inst Plan Growth 10 10 10,000,000 10,000,000 100 100
DWS Fixed Term Fund Series 21 Inst Plan Growth 10 10 20,000,000 20,000,000 200 200
DWS Fixed Term Fund Series 35 Inst Plan Growth 10 - 15,000,000 - 150 -
HDFC FMP 13 M March 06 (1) Inst Growth - 10 - 15,000,000 - 150
HDFC FMP 14 M March 07 (3) Growth 10 10 20,000,000 20,000,000 200 200
HDFC FMP 16 M Jan 07 (3) Growth 10 10 15,000,000 15,000,000 150 150
HSBC fixed Term Series 21 Growth 10 10 15,000,000 15,000,000 150 150
HSBC fixed Term Series 23 Growth 10 10 10,000,000 10,000,000 100 100
HSBC Fixed Term Series 4 Growth - 10 - 15,000,000 - 150
ING FMP Series 32 Growth 10 - 20,000,000 - 200 -

(Rs. in Million)
%age 31.03.2008 31.03.2007 31.03.2008 31.03.2007 31.03.2008 31.03.2007
JM Fixed maturity fund series IV Yearly plan growth 10 10 10,000,000 10,000,000 100 100
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 - 10,000,000 - 100 -
Kotak FMP 13M Series 1 Inst Growth 10 10 20,000,000 20,000,000 200 200
Kotak FMP 13M Series 2 Inst Growth 10 10 15,000,000 15,000,000 150 150
Kotak FMP 15M Series 1 Growth - 10 - 10,000,000 - 100
Kotak FMP 15M Series 2 Growth 10 10 10,000,000 10,000,000 100 100
Kotak FMP 16M Series 1 Growth 10 10 10,000,000 10,000,000 100 100
Kotak FMP Series 13 Growth - 10 - 15,000,000 - 150
Kotak FMP Series XIV Growth - 10 - 10,000,000 100
Kotak FMP 14M Series 3 Growth 10 - 10,000,000 - 100 -
LIC MF FMP Series 15 13 months Growth - 10 - 25,000,000 - 250
LIC MF FMP Series 19 13 months Growth 10 10 25,000,000 25,000,000 250 250
LIC MF FMP Series 5 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 - 10 -
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 - 385 Days Series 1 Inst Growth - 10 - 15,000,000 - 150
Principal PNB Fixed Maturity Plan - 460 Days Series 1 Growth - 10 - 15,000,000 - 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 10 25,000,000 25,000,000 250 250
Principal PNB Fixed maturity plan (FMP 36)
460 days Series III March 07 Growth 10 10 20,000,000 20,000,000 200 200
540 days Series II March 08 Growth 10 - 12,000,000 - 120 -
Pru ICICI FMP series 34 One year plan B IP growth 10 10 25,000,000 25,000,000 250 250
Pru ICICI FMP series 34 Sixteen month IP growth 10 10 25,000,000 25,000,000 250 250
Pru ICICI FMP series 35 Thirteen months Plan B IP growth 10 10 20,000,000 20,000,000 200 200
Pru ICICI FMP series 37 Fourteen months IP growth 10 10 20,000,000 20,000,000 200 200
Prudential ICICI FMP - 16 Month Inst Growth XXVIII - 10 - 10,000,000 - 100
ICICI Prudential FMP series 41 14 M Growth 10 - 10,000,000 - 100 -
ICICI Prudential FMP series 43 13 M Plan D Growth 10 - 10,000,000 - 100 -
Reliance Fixed horizon fund II Annual Plan Plan Series VI Inst Growth 10 10 20,000,000 20,000,000 200 200
Reliance Fixed horizon fund III Annual Plan Plan Series I Inst Growth 10 10 40,000,000 40,000,000 400 400
Reliance Fixed horizon fund III Annual Plan Plan Series IV Inst Growth 10 10 40,000,000 40,000,000 400 400
Reliance Fixed horizon fund IV Series 5 Inst Growth 10 - 50,000,000 - 500 -
Reliance Fixed horizon fund VI Series 3 Inst Growth 10 - 40,000,000 - 400 -
SBI Debt fund series (13 months II) March 07 Growth 10 10 20,000,000 20,000,000 200 200
SBI Debt fund series (13 months) March 07 Growth 10 10 20,000,000 20,000,000 200 200
SCHEDULES 133
a million
promises...
Schedules Contd.
(Rs. in Million)
%age 31.03.2008 31.03.2007 31.03.2008 31.03.2007 31.03.2008 31.03.2007
SBI Debt fund series (13 months) 7 March 08 Growth 10 - 60,000,000 - 600 -
Standard Chartered Fixed Maturity - 2nd Plan - Growth - 10 - 15,000,000 - 150
Standard Chartered fixed maturity 10th Plan Growth - 10 - 10,000,000 - 100
Standard Chartered fixed maturity Plan Yearly Series 3 Growth 10 10 20,000,000 20,000,000 200 200
Standard Chartered fixed maturity Plan Yearly Series 5 Growth 10 10 20,000,000 20,000,000 200 200
Standard Chartered fixed maturity Plan Yearly Series 17 Growth 10 10 - 15,000,000 - 150 -
Standard Chartered fixed maturity Plan Yearly Series 19 Growth 10 10 - 25,000,000 - 250 -
Standard Chartered fixed maturity Plan Yearly Series 20 Growth10 10 - 25,000,000 - 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 - 10,000,000 - 100 -
Sundaram BNP Paribas FTP plan E Growth 10 - 10,000,000 - 100 -
Tata Fixed horizon fund series 7 scheme B Growth Inst plan 10 10 20,000,000 20,000,000 200 200
Tata Fixed horizon fund series 7 scheme D Growth Inst plan 10 10 10,000,000 10,000,000 100 100
Tata Fixed Horizon Series 2 - Plan C 18 Months Growth - 10 - 10,000,000 - 100
Tata Fixed Horizon Series 3 - Scheme D Growth - 10 - 10,000,000 - 100
Templeton fixed horizon fund series I 15 Month Plan Growth 10 10 20,000,000 20,000,000 200 200
Templeton Fixed Tenure Fund Serie V 13 month Growth - 10 - 15,000,000 - 150
Templeton Fixed Tenure Fund Serie VII Plan C Growth 10 - 30,000,000 - 300 -
UTI Fixed Term Income Fund Series 1 Plan 18 Q4 Growth - 10 - 15,000,000 - 150
Birla Cash Plus Inst Premium Growth - 10 - 90,412,073 - 1,000
Birla sunlife liquid plus inst growth 10 - 114,877,934 - 1,750 -
Canliquid Institutional Growth - 10 - 19,597,852 - 250
Deutsche Money Plus Fund Inst Growth 10 10 77,637,983 77,637,983 800 800
DSP ML Liquidity Fund Inst Growth - 1,000 - 988,427 - 1,000
HDFC Floating rate income fund short term wholesale growth 10 - 109,853,894 - 1,500 -
HDFC Liquid Fund premium plus plan Growth 10 10 33,406,382 33,406,382 500 500
HSBC Liquid plus fund Inst Plus Growth 10 10 96,558,755 96,558,755 1,000 1,000
ICICI Prudential Flexible income plan growth 10 - 93,861,613 - 1,400 -
ING Vysay Liquid fund Super Inst Plan growth 10 10 89,830,413 89,830,413 1,000 1,000
JM Money Manager Fund Super Plus Plan Growth 10 - 154,666,149 - 1,750 -
Kotak Flexi debt Growth 10 - 19,772,537 - 250 -
Kotak Liquid Inst Premium Growth 10 10 19,814,143 73,250,089 300 1,050
LIC MF Floating Rate fund Growth - 10 - 22,478,982 - 250
LIC MF Liquid Plan Growth - 10 - 79,317,397 - 1,000
Lotus India Liquid plus fund Inst growth 10 - 45,302,165 - 500 -
Principal CMF Liquid Inst Premium Growth 10 10 34,244,816 103,485,709 400 1,150
Principal floating rate fund FMP Inst Growth 10 - 121,682,041 - 1,550
Prudential ICICI Floating Rate Plan Option D Growth - 10 - 49,646,240 - 502
Prudential ICICI Liquid Plan Super Inst Growth 10 10 182,568,132 281,202,539 2,000 3,000
Reliance Liquid Plus fund Inst growth 1,000 - 1,878,155 - 2,050 -
Reliance liquidity fund growth 10 10 44,632,098 44,632,098 500 500
Sundaram Money Fund Super Inst Growth - 10 - 13,709,993 - 200
Tata Floater Fund growth 10 - 125,295,574 - 1,500 -
Tata liquid fund SHIP growth 10 1,000 362,940 362,940 500 500
UTI Liquid cash plan Inst plan growth 10 1,000 406,207 406,207 500 500
UTI Liquid plus fund Inst plan Growth 1,000 - 1,622,514 - 1,750 -
37,710 24,052

(Rs. in Million)
%age 31.03.2008 31.03.2007 31.03.2008 31.03.2007 31.03.2008 31.03.2007
Current (Unquoted)
SBI Premier Liquid fund super inst plan div 10 - 44,151,268 - 467 -
Birlasunlife liquid plus fund inst div 10 - 2,344,064 - 23 -
Deutsche Credit Opportunities cash Fund dividend 10 - 77,846,260 - 785 -
HSBC Liquid plus fund Inst Plus div 10 - 46,847,263 - 470 -
JM Money Manager Fund Super Plus Plan Div 10 - 33,028,345 - 333 -
Kotak Flexi debt div 10 - 962,826 - 10 -
LIC MF Liquid Plus Fund Div 10 - 133,189,703 - 1,333 -
Lotus India liquid plus fund inst div 10 - 18,228,226 - 183 -
ICICI Prudential Flexible income plan div 10 - 5,138,366 - 52 -
Principal floating rate fund FMP Inst div 10 - 42,521,703 - 426 -
Reliance Liquid Plus fund Inst div 1,000 - 39,305 - 39 -
Sundaram BNP Paribas liquid plus fund super inst plan div 10 - 8,436,818 - 86 -
Tata Floater Fund Div 10 - 15,263,137 - 154 -
Templeton India Ultra Short Bond Fund Inst Plan Div 10 - 50,182,446 - 503 -
UTI Liquid plus fund Inst plan div 1,000 - 1,317,839 - 1,319 -
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
Birla Sunlife interval income inst quarterly S2 Inst Div 10 - 51,276,782 - 513 -
DBS Chola FMP Series 6 (Quarterly Plan 3) Dividend - 10 - 20,000,000 - 200
DSP ML FTA Series 1 I Dividend - 1,000 - 150,000 - 150
DWS Fixed Term Fund Series 23 Dividend - 10 - 25,000,000 - 250
HSBC Interval Fund Plan 1 Inst Div 10 - 20,141,904 - 201 -
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
JM interval fund quarterly plan 3 Inst Div 10 - 18,169,199 - 182 -
JM interval fund quarterly plan 6 Inst Div 10 - 20,127,180 - 201 -
Kotak FMP 3M Series 10 Dividend - 10 - 25,243,621 - 252
Kotak quarterly interval plan series 3 div 10 - 19,995,601 - 200 -
Lotus India FMP 3 Month Series 22 div 10 - 25,329,353 - 253 -
Lotus India FMP 3 Month Series 23 div 10 - 15,140,031 - 151 -
91 days Series VII Feb 07 Dividend - 10 - 25,000,000 - 250
91 days Series VIII Feb 07 Dividend - 10 - 20,000,000 - 200
91 days Series IX Dividend - 10 - 20,000,000 - 200
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
SCHEDULES 135
a million
promises...
Schedules Contd.
(Rs. in Million)
%age 31.03.2008 31.03.2007 31.03.2008 31.03.2007 31.03.2008 31.03.2007
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 Plan Quarterly Series 3 Div - 10 - 25,369,000 - 254
Standard Chartered fixed maturity Plan Quarterly Series 25 Div 10 - 35,303,009 - 353 -
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
Sundaram BNP Paribas interval fund quarterly plan c Dividend10 10 24,993,752 - 250 -
Sundaram BNP Paribas FTP 90 days Series 3 inst Dividend 10 - 15,000,000 - 150 150
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
Tata Fixed horizon fund series 17 scheme D Div 10 - 50,373,888 - 504 -
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
10,946 8,605
Less: Provision for diminution: 0 0
10,946 8,605
31) 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 145,725 150,805 150,852
145,725 150,805 150,852
Previous Year: 96,785 98,940 98,987

32) STATEMENT ON ASSETS ,LIABILITIES ,INCOME & EXPENSES OF JOINT VENTURES

Details of th 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.
SI. 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
4 FMI Automotive India Limited 49.00 India
(Rs. In Million)
2007-08 2006-07
Detail of Assets
Fixed Assets - Gross Block 707 661
Accumulated Depreciation 280 235
Net Block 427 426
Capital Work-in-Progress 383 27
Investments 0 1
Inventories 108 111
Sundry Debtors 115 124
Cash and Bank Balances 554 70
Other Current Assets 7 0
Loans and Advances 92 41
Deferred Tax Assets 2 9
Detail of Liabilities
Secured Loans 125 169
Unsecured 268 228
Current Liabilities 331 183
Provisions 4 1
Deferred Tax Liabilities 45 46
Detail of Income
Sales(Net) 1,840 1,493
Income from services 73 60
Other income 35 19
Detail of Expenses
Consumption of Raw Material and Components 1,349 1,061
Purchase of Traded Goods 50 65
Employees Remuneration and Benefits 81 61
Manufacturing Administrative and Other Expenses 152 93
Selling and Distribution Expenses 11 9
Financial Expenses 29 28
Depreciation 46 42
(Increase) / Decrease to Work in progress and Finished Goods 7 (13)
Tax Expense Current 7 3
Tax Expense Deffered 7 6
Details of Contingent Liabilities
Claims against the Company lodged by various parties 3 3
Capital commitments 155 2
Outstanding commitments under letter of credit 17 20
SCHEDULES 137
33) PURSUANT TO CLAUSE IX(B) OF SECTION 227 (4A) OF THE COMPANIES ACT, 1956, THE DETAILS OF DISPUTED DUES ARE AS FOLLOWS:
138
Name of the Statute Nature of Amount Amount deposited under Period to which the Forum where dispute is pending
the Dues (Rs.in Millions) 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 27 1994-95 A.Y ITAT & High Court
Interest 2
Penalty - 28
Income Tax 242 725 1995-96 A.Y. ITAT & High Court
Interest 483
Penalty - 55
Interest 0
Penalty - 112
a million
Income Tax - 3 1997-98 A.Y. High Court
Interest 5
Income Tax 1,644 1,650 1999-2000 A.Y. ITAT & High Court
Interest 1,759
Penalty 2,252
Income Tax 14 17 2000-2001 A.Y. High Court promises...
Interest 2
Income Tax 1,093 1,151 2003-04 A.Y. Commissioner of Income Tax (Appeals) [CIT(A)]
Interest 433
Income Tax 1,065 693 2004-05 A.Y. ITAT
Interest 455
TDS 295 - 2002-03 and 2004-05 A.Y. CIT (A)
Interest on TDS 167 -
TDS 3 3 2007-08 & 2008-09 A.Y. CIT (A)
Total 10,205 4,744
Wealth Tax Act, 1957 Wealth Tax 1 1 1998-99 A.Y. Appeal is pending before High Court
Maruti Suzuki India Limited ANNUAL REPORT 2007-08

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 55 - Jul 01 to Aug. 06 Customs, Excise & Service Tax Appellate Tribunal
Penalty 40 Excise Duty 511 - June 88 to June 93High 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 162 Jul.00-Sep.06 Customs, Excise & Service Tax Appellate Tribunal
Penalty 162
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 1
Excise duty 1 1 May.89 to Mar.92 High Court of Delhi.
Penalty 1 1
Total 1,551 41
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
34) Previous Year's figures have been recasted / regrouped where considered necessary to make them comparable with the current year's figures.

PRICE WATERHOUSE
New Delhi
April 24, 2008
Schedules Contd.
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 31-03-08
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
94,857 94,857
Sources of Funds Paid-up Capital Reserve & Surplus
1,445 82,709
Secured Loans Unsecured Loans
1 9,001
Application of Funds
Net Fixed Assets Investments
40,328 51,807
Net Current Assets Misc. Expenditure
2,722 -
Accumulated Losses Nil
IV. Performance of Company

(Amount in Rupees Million) Turnover Total Expenditure
209,493 184,463
Profit Before Tax Profit After Tax
25,030 17,308
Earning per share in Rs. Dividend rate
(Face Value Rs.5) 100%
59.91
V. Generic Name of Principal Product of Company

(As per monetary terms)
Item Code No.(ITC Code) 8703.00
Product Description Motor Cars
BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE 139

a million
promises...
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 2008 31st March 2008 31st March 2008 31st March 2008 31st March 2008 31st March2008 31st March 2008
company ended on
Number of shares in the subsidiary
company held by Maruti Suzuki India
Limited at the above date 50,000 50,000 50,000 50,000 50,000 50,000 50,000
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
ended on March 31st,2008 Nil Nil Nil Nil Nil Nil Nil
b) For previous financial years
of the subsidiary since it become
subsidiary of
Maruti Suzuki India Limited Nil Nil Nil Nil Nil Nil Nil
ii) not dealt with in the accounts of
Maruti Suzuki India Limited amounted to:
a) For subsidiary's financial year
ended on March 31st, 2008 Rs. 22,283,573 Rs. 162,605,780 Rs. (-) 2,265,115 Rs. 30,324,565 Rs. 46,783,197 Rs.1,246,117 Rs. 34,801
b) For previous financial years
of the subsidiary since it become
subsidiary of
Maruti Suzuki India Limited Rs. 59,428,359 Rs. 344,705,595 Rs.4,358,665 Rs. 45,819,961 Rs 57,896,604 Rs. (-) 59,470 Nil
New Delhi SHINZO NAKANISHI HIROFUMI NAGAO ANIL RUSTGI

April 24, 2008 Managing Director & CEO Director & Managing Company Secretary
Executive officer - Admin & Chief Legal Officer
Directors'2007-08
Financial Statement of Subsidiary Companies 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 500,000 500,000 500,000 500,000 500,000 500,000 500,000
2 Reserves & Surpluses 507,311,375 81,711,932 104,679,801 76,144,526 1,186,647 2,093,550 34,801
3 Total Assets 507,811,375 82,211,932 105,179,801 76,644,526 1,686,647 2,593,550 534,801
4 Total Liabilities 507,811,375 82,211,932 105,179,801 76,644,526 1,686,647 2,593,550 534,801
5 Investments 258,639,022 64,848,412 54,533,345 35,059,050 - - -
6 Turnover Income 585,650,665 76,729,570 166,634,757 109,408,122 5,202,174 38,994 613,691
7 Profit Before Tax 258,831,595 34,913,181 74,891,710 48,217,850 1,996,117 (2,452,955) 104,801
8 Tax 87,662,436 11,500,000 25,000,000 16,000,000 750,000 45,239 70,000
9 Prior Period Item 8,563,379 1,129,608 3,108,513 1,893,285 - (233,079) -
10 Profit After Tax 162,605,780 22,283,573 46,783,197 30,324,565 1,246,117 (2,265,115) 34,801

07 08

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a million

Maruti Suzuki India Limited (formerly Maruti Udyog Limited), a

The benefits of product quality, safety and cost consciousness have

02 Maruti Suzuki India Limited ANNUAL REPORT 2007-08

INR 1 7,308 Mn INR 188,238 Mn

600 2,628 7,090

Dear Shareholder, wisdom and foresight by gradually

The Indian automobile component

Maruti Suzuki dealers of cars and

10 Maruti Suzuki India Limited ANNUAL REPORT 2007-08

12 Maruti Suzuki India Limited ANNUAL REPORT 2007-08

Our parent company is always ready to

I have identified certain key questions

I thank you for your support and invite you

With best wishes and warm regards,

INTERVIEW WITH MR. S. NAKANISHI, MANAGING DIRECTOR & CEO 13

14 Maruti Suzuki India Limited ANNUAL REPORT 2007-08

Suzuki is well known for its technology strength,

INTERVIEW WITH MR. S. NAKANISHI, MANAGING DIRECTOR & CEO 15

16 Maruti Suzuki India Limited ANNUAL REPORT 2007-08

15,000 100,000 60.0 150

MARGINS PROFIT AND LOSS RATIOS AS % TO NET SALES

18 Maruti Suzuki India Limited ANNUAL REPORT 2007-08

RETURN ON AVERAGE EQUITY TOTAL PASSENGER VEHICLE INDUSTRY

Maruti Suzuki's Market Share

Return on Average Equity 100% 46.00%

OPERATIONAL PRODUCTIVITY (INDEXED) SALES VOLUME

2001-02 2007-2008 Exports (Units) Domestic (Units)

Your Directors have pleasure in presenting the 27th Annual Report

32 Maruti Suzuki India Limited ANNUAL REPORT 2007-08

Directors' Report Contd.

34 Maruti Suzuki India Limited ANNUAL REPORT 2007-08

Directors' Report Contd.

36 Maruti Suzuki India Limited ANNUAL REPORT 2007-08

Directors' Report Contd.

38 Maruti Suzuki India Limited ANNUAL REPORT 2007-08

For and on behalf of the Board of Directors

Shinzo Nakanishi R.C.Bhargava

Information in accordance with the Companies (Disclosure of Particulars in the

A. ENERGY CONSERVATION Renewable Energy Department,

40 Maruti Suzuki India Limited ANNUAL REPORT 2007-08

DIRECTORS' REPORT - ANNEXURE A 41

42 Maruti Suzuki India Limited ANNUAL REPORT 2007-08

C. FOREIGN EXCHANGE EARNINGS AND OUTGO (CASH BASIS)

For and on behalf of the Board of Directors

Shinzo Nakanishi R.C.Bhargava

DIRECTORS' REPORT - ANNEXURE A 43

CORPORATE GOVERNANCE and transparent disclosure are

44 Maruti Suzuki India Limited ANNUAL REPORT 2007-08

CORPORATE GOVERNANCE REPORT 45

Corporate Governance Report Contd.

TABLE 3: Remuneration paid or payable to Directors during 2007-08

The members of the Company had Name of Director Commission (2006-07)

CORPORATE GOVERNANCE REPORT 47

Corporate Governance Report Contd.

Mr. Davinder Singh Brar Member 4

CORPORATE GOVERNANCE REPORT 49

Corporate Governance Report Contd.

ENABLING CONTROLS SELF ASSESSMENTS THROUGH THE CONTROLS MANAGER

Process for reporting

Seek and report

* RACM : Risk & Control Matrix