Project Report

On
The Financial structure
Of
Maruti Suzuki India Ltd.

Subject Code: MF-403

Submitted to:
A.C. Panda Sir

Submitted by:

Lokesh Upadhyay

Pgdm Finance - C
 Introduction

Maruti Suzuki India Limited (NSE: MARUTI, BSE: 532500) a partial subsidiary of
Suzuki Motor Corporation of Japan, is India's largest passenger car company,
accounting for over 45% of the domestic car market. The company offers a complete
range of cars from entry level Maruti 800 and Alto, to hatchback Ritz, A star, Swift,
Wagon-R, Estillo and sedans DZire, SX4, in the 'C' segment Maruti Eco and Sports
Utility vehicle Grand Vitara.

It was the first company in India to mass-produce and sell more than a million cars. It is
largely credited for having brought in an automobile revolution to India. It is the
market leader in India and on 17 September 2007, Maruti Udyog Limited was renamed
Maruti Suzuki India Limited. The company's headquarters are located in New Delhi.
VISION:

The leader in the India Automobile Industry, Creating Customer Delight and Shareholder’s
Wealth; A pride of India”

MISSION:

To provide maximum value for money to their customers through continuous improvement of
products and services

Organizational Profile:
Organizational Structure:
Organizational Profile:
Financial Update’s:

 Financial head’s of Maruti Suzuki ltd.

Mr. Seth served as the Vice President of Finance for Maruti Suzuki India Limited.
Mr. Aiyar worked as the Company Secretary and Chief Legal Officer of Maruti and
has been Director of Maruti Insurance Brokers Limited.

 Maruti Suzuki to set up stockyard facility in Nagpur

Maruti is planning to setup a new stockyard in Nagpur , it’s help in enhancing the
distribution channel of the company and it reduce the problem of Zero stock in the
showrooms .

This new facility also help in reducing the transportation cost of the car in the are or
sectors near to Nagpur like Pune, kohlapur etc.

 Maruti Suzuki unveils new compact Swift Dzire

Maruti Suzuki launch a new compact Swift Dzire car in the market to attract the
consumers and increase the market value of the company as per the demand of the
consumers.

 Maruti, Hyundai, Tata Motors lose market share to smaller firms in 2010-11

With many players entering the small car segment in India with new models, leading
players like Maruti Suzuki, Hyundai Motor and Tata Motors lost their market share in
2010-11 to mainly Ford India and Volkswagen, says SIAM.

 Maruti Suzuki crosses 10 million sales mark in India

Maruti Suzuki crossed the 10 million cumulative domestic sales mark here in India
recently. Maruti-Suzuki, known for their reliable and easy to maintain cars, have
marked their territory in India for a long time and are at a very sought after monopoly
position in the Indian car market. 

Now the company that rolled out its first car in December 1983, attained the 5 million
domestic sales mark in February 2006, that is 26 years in all. Today, six years down the
line Maruti Suzuki has rolled out another 5 million cars.
Financial structure of Maruti Suzuki.
Rs. in Crore.
From To Class Of Authorized Issued Paid Up Shares Paid Up
Year Year Share Capital Capital (Nos) Face Value Paid Up Capital

Equity
2010 2011 Share 372.00 144.46 288910060 5 144.46

Equity
2009 2010 Share 372.00 144.46 288910060 5 144.46

Equity
2008 2009 Share 372.00 144.46 288910060 5 144.46

Equity
2007 2008 Share 372.00 144.46 288910060 5 144.46

Equity
2006 2007 Share 372.00 144.46 288910060 5 144.46

Interpretation:
If we talk about the financial structure of Maruti Suzuki as per the analysis of last five
year data it is stable and it’s a good sign for an business enterprise.

If it is being fluctuating and goes up and down it may affect the goodwill of the company
and due to this company have to face the loss.

No. of shares issued by Maruti is fully paid up and it shows the market potential of the
industry and its goodwill.
Conclusion:
The logic of financial structure policy of MUL is to increase its net worth by ploughing
back of profit in this way to reduce cost of equity as a cheaper cost if its net worth
It is strengthen by ploughing back of profits, which is not dividend bearing.

The company increased its capitalization from Rs. 3363.3 Cr. to 10043.8 Cr. with the
correspondingly less increase in the use of long term debt from Rs. 656 cr. to 698.9 cr.
during the study. Both the excess capitalization and slightly increase in the use of debt
in each year were commensurated by the reserve and surplus i.e., by successful
ploughing back of profit instead of making additional issue of equity shares.

If the same was made by fresh issue of equity shares the company would not be able to
reward its shareholders more in terms of return. Since reserve & surplus was not
divided bearing, its utilization brought down the cost of equity and at the same time it
maintained the lower base of equity share- holders resulting higher amount of EPS
(lower base means lower number of equity shares).