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Maruti Suzuki India Ltd. के अकाउंट के लिये नोट

Mar 31, 2023

30 SEGMENT INFORMATION

The Company is primarily in the business of manufacturing, purchase and sale of motor vehicles, components and spare parts (âautomobilesâ). The other activities of the Company comprise facilitation of pre-owned car sales, fleet management and car financing. The income from these activities is not material in financial terms but such activities contribute significantly in generating demand for the products of the Company.

The Board of Directors of the Company, which has been identified as being the Chief Operating Decision Maker (CODM), evaluates the Companyâs performance, allocate resources based on the analysis of the various performance indicator of the Company as a single unit. Therefore there is no reportable segment for the Company.

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment risk

The probability or likelihood of lower returns as compared to the expected return on any particular investment.

Interest risk

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.

Longevity risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after employment. An increase in the life expectancy of the plan participants will increase the planâs liability.

Salary risk

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the planâs liability.

The fair value of the above ULIP schemes are determined based on the Net Asset Value (NAV). Moreover, for other investments the fair value is taken as per the account statements of the insurance companies.

The weighted average duration of the defined benefit obligation of gratuity fund at 31.03.23 is 14 years (as at 31.03.22: 14 years).

The Company expects to make a contribution of '' 874 million (as at 31.03.22: '' 308 million) to the defined benefit plans during the next financial year.

Sensitivity analysis

Significant actuarial assumption for the determination of defined obligation are discount rate, expected salary growth rate, attrition rate and mortality rate. The sensitivity analysis below have been determined based on reasonably possible changes in respective assumption occurring at the end of reporting period, while holding all other assumptions constant.

If the discount rate increases (decreases) by 1%, the defined benefit obligation would decrease by '' 1,103 million (increase by '' 1,297 million) (As at 31.03.22: decrease by '' 996 million (increase by '' 1,177 million)).

If the expected salary growth rate increases (decreases) by 1%, the defined benefit obligation would increase by '' 1,162 million (decrease by '' 1,003 million) (As at 31.03.22: increase by '' 1,074 million (decrease by '' 931 million)).

The Code on Social Security, 2020 (âCodeâ) relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

Level 1: Quoted prices in the active market. This level of hierarchy includes financial assets that are measured by reference to quoted prices in the active market. This category consists of quoted equity shares and debt based open ended mutual funds.

Level 2: Valuation techniques with observable inputs. This level of hierarchy includes items measured using inputs other than quoted prices included within Level 1 that are observable for such items, either directly or indirectly. This level of hierarchy consists of debt based close ended mutual fund investments and over the counter (OTC) derivative contracts.

Level 3: Valuation techniques with unobservable inputs. This level of hierarchy includes items measured using inputs that are not based on observable market data (unobservable inputs). Fair value determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data. The main item in this category are unquoted equity instruments.

The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

Investments in debt mutual funds: Fair value is determined by reference to quotes from the financial institutions, i.e. net asset value (NAV) for investments in mutual funds declared by mutual fund house.

Derivative contracts: The Company has entered into variety of foreign currency and commodity forward contracts and swaps to manage its exposure to fluctuations in foreign exchange rates and commodity price risk. These financial exposures are managed in accordance with the Companyâs risk management policies and procedures. Fair value of derivative financial instruments are determined using valuation techniques based on information derived from observable market data.

Quoted equity investments: Fair value is derived from quoted market prices in active markets.

Unquoted equity investments: Fair value is derived on the basis of income approach, in this approach the discounted cash flow method is used to capture the present value of the expected future economic benefits to be derived from the ownership of these investments.

33.2 Financial risk management

The Companyâs activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts, foreign currency option contracts are entered to hedge certain foreign currency risk exposures and interest rate swaps to hedge variable interest rate exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

Other than financial assets mentioned above, none of the financial assets were impaired and there were no indications that defaults in payment obligations would occur.

(B) Liquidity risk

Liquidity risk refers to the risk that the Company can not meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and to ensure funds are available for use as per the requirements.

The Company operates with a low Debt Equity ratio. The Company raises short term rupee borrowings for cash flow mismatches and hence carries no significant liquidity risk. The Company has access to the borrowing facilities of '' 49,700 million as at 31.03.2023 ('' 49,700 million as at 31.03.2022) to honour any liquidity requirements arising for business needs. The Company has large investments in debt mutual funds which can be redeemed on a very short notice and hence carries negligible liquidity risk.

The financial risk management of the Company is carried out under the policies approved by the Board of Directors. Within these policies, the Board provides written principles for overall risk management including policies covering specific areas, such as foreign exchange risk management, commodity risk management and investment of funds.

(A) Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations. To manage trade receivable, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and aging of such receivables.

Financial instruments that are subject to such risk, principally consist of investments, trade receivables, loans and advances and derivative instruments. None of the financial instruments of the Company results in material concentration of credit risks.

(C) Market risk

(i) Foreign currency risk

The Company has exposure to foreign currency risk on account of its payables and receivables in foreign currency which are mitigated through the guidelines under the foreign currency risk management policy approved by the Board of Directors. The Company enters into derivative financial instruments to mitigate the foreign currency risk.

- forward foreign exchange and options contracts for foreign currency risk mitigation

Foreign currency sensitivity analysis

The Company is mainly exposed to JPY, USD and EURO.

The following table details the Companyâs sensitivity to a 10% increase and decrease in the '' against the relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items as tabulated above and adjusts their translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans. A positive number below indicates an increase in profit or equity and vice-versa.

(ii) Security price risk Exposure in equity

The Company is exposed to equity price risks arising from equity investments held by the Company and classified in the balance sheet as fair value through OCI.

Equity price sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of the year.

If the equity prices had been 5% higher / lower:

Other comprehensive income for the year ended March 31, 2023 would increase / decrease by '' 762 million (for the year ended March 31,2022: increase / decrease by '' 665 million) as a result of the change in fair value of equity investment measured at FVTOCI.

Exposure in mutual funds

The Company manages the surplus funds majorly through investments in debt based mutual fund schemes. The price of investment in these mutual fund schemes is reflected though Net Asset Value (NAV) declared by the Asset Management Company on daily basis as reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investments.

Mutual fund price sensitivity analysis

The sensitivity analysis below have been determined based on Mutual Fund Investment at the end of the reporting period.

If NAV has been 1% higher / lower:

Profit for year ended 31.03.2023 would increase / decrease by '' 4,585 million (for the year ended 31.03.2022 by '' 3,905 million) as a result of the changes in fair value of mutual fund investments.

33.3 Capital management

The Companyâs Objectives when managing capital are to:

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company has large investments in debt mutual fund schemes wherein underlying portfolio is spread across securities issued by different issuers having different credit ratings. The credit risk of investments in debt mutual fund schemes is managed through investment policies and guidelines requiring adherence to stringent credit control norms based on external credit ratings. The credit quality of the entire portfolio investments is monitored on a quarterly basis. The Companyâs overall strategy remains unchanged from previous year.

35 Leases

The Company as a Lessee

The Companyâs leases primarily consists of leases for land and buildings. Generally, the contracts are made for fixed periods and does not have a purchase option at the end of the lease term. In a case where the Company has purchase option, the option is exercisable at nominal value and the Companyâs obligations are secured by the lessorâs title to the leased assets for such leases.


			As at 31.03.2023	As at 31.03.2022
(iv)	Income Tax
	(a)	Cases decided in the Companyâs favour by Appellate authorities and for which the department has filed further appeals	12,255	12,255
	(b)	Cases pertaining to issues decided in favour of the Company for an earlier year but the Income Tax Department have raised a demand for a similar issue for subsequent years and are pending before Appellate authorities / Dispute Resolution Panel pursuant to appeals filed by the Company	81,493	65,457
	(c)	Other cases pending before Appellate authorities / Dispute Resolution Panel in appeals filed by the Company	54,877	68,154
Total			148,625	145,866
Amount deposited under protest			9,019	8,287
(v)	Custom Duty
	(a)	Cases pending before Appellate authorities in respect of which the Company has filed appeals	1,988	1,987
	(b)	Others	103	90
Total			2,091	2,077
Amount deposited under protest			-	-
(vi)	Sales Tax
Cases pending before Appellate authorities in respect of which the Company has filed appeals			31	31
Amount deposited under protest			-	1
(vii)	Claims
Claims against the Company lodged by various parties			1,434	1,372
Others			4,460	3,588

37	CONTINGENT LIABILITIES
A) Claims against the Company disputed and not acknowledged as debts:

			As at 31.03.2023	As at 31.03.2022
(i)	Excise Duty
	(a)	Cases decided in the Companyâs favour by Appellate authorities and for which the department has filed further appeals and show cause notices / orders on the same issues for other periods	1,639	1,635
	(b)	Cases pending before Appellate authorities in respect of which the Company has filed appeals and show cause notices for other periods	16,008	15,482
Total			17,647	17,117
Amount deposited under protest			1,766	1,696
(ii)	Goods & Services Tax
	(a)	Cases pending before High Court of Rajasthan in respect of which the Company has filed writ	10	10
(iii)	Service Tax
	(a)	Cases decided in the Companyâs favour by Appellate authorities and for which the department has filed further appeals and show cause notices / orders on the same issues for other periods	2,430	1,769
	(b)	Cases pending before Appellate authorities in respect of which the Company has filed appeals and show cause notices for other periods	3,483	3,373
Total			5,913	5,142
Amount deposited under protest			461	93

(viii) In respect of disputed Local Area Development Tax (LADT) (upto April 15, 2008) / Entry Tax, the amounts under dispute are '' 21 million (as at 31.03.2022: '' 21 million) for LADT and '' 20 million (as at 31.03.2022: '' 20 million) for Entry Tax. The State Government of Haryana has repealed the LADT effective from April 16, 2008 and introduced the Haryana Tax on Entry of Goods into Local Area Act, 2008 with effect from the same date. After implementation of Goods & Services Act in 2017, Entry Tax Act in Haryana was repealed.

(ix) (a) The Competition Commission of India (âCCIâ) had passed an order dated August 25, 2014 stating that the Company has

violated certain sections of the Competition Act, 2002 for not making diagnostic tools and genuine spare parts freely available in the open market and has imposed a penalty of '' 4,712 million. The Delhi High Court, on 16^th May 2019, disposed the Companyâs petition stating that the Company had alternative remedies available. Thereafter, Company filed a Special Leave Petition before the Supreme Court of India, wherein an interim stay on the CCIâs order was granted on July 1, 2019 and the stay is continuing.

(b) The Competition Commission of India (âCCIâ) had initiated suo-moto proceedings in the month of February 2019 alleging that the Company has violated certain sections of the Competition Act, 2002 relating to resale price maintenance. The Company filed its response to the Director Generalâs investigation report against the Company before the CCI on 9^thApril 2021 and placed its final arguments during the virtual hearing on 15^th April 2021. The Company has received the order from CCI dated August 23, 2021, whereby the Commission has arrived at a decision against the Company and a penalty of '' 2,000 million was imposed on the Company for imposing a discount control policy. The Company is of the view that the CCI has failed to consider voluminous evidence that it has submitted in its defence. The Company has been legally advised that there are fair and reasonable grounds to contest the case. The Company has filed an appeal before the National Company Law Appellate Tribunal (âNCLATâ) to vigorously defend its position against the CCI order. The NCLAT has stayed the operation of the CCI order including the cease and desist direction and penalty subject to the Company depositing 10% of the penalty imposed i.e. '' 200 million. The Company has deposited the '' 200 million and is contesting the case.

(x) The Honâble Supreme Court in a ruling, had passed a judgment on the definition and scope of âBasic Wagesâ under the Employeesâ Provident Funds and Miscellaneous Provision Act, 1952.

Pending issuance of guidelines by the regulatory authorities on the application of this ruling, the impact on the Company for the previous periods, if any, cannot be ascertained. Currently, the Company has started providing for the revised liability w.e.f from 1 April, 2019.

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

38 The Company entered into a âContract Manufacturing Agreementâ (CMA) with Suzuki Motor Gujarat Private Limited (SMG), a fellow subsidiary of Suzuki Motor Corporation (SMC) on December 17, 2015. In accordance with the contractual terms, SMG during the term of this agreement, shall manufacture and supply vehicles on an exclusive basis to MSIL. The consideration for the arrangement would be cost incurred by SMG to manufacture the cars which will be charged to the Company on no-profit-no-loss basis.

The payments made towards cost of purchase of vehicles recorded during the year includes '' 20,121 million (previous year '' 17,251 million) towards a component of lease payment for specified assets (Written Down value of specified assets as on March 31,2023 is '' 100,590 million (Previous year '' 111,841 million)), as per the information provided by SMG.

47 The figures of previous year have been re-grouped, wherever necessary, to conform to the current year classification.

48 The financial statements were approved by the Board of Directors and authorised for issue on April 26, 2023.

Mar 31, 2022

4.1 Notes on Property, Plant And Equipment

1. Plant and Machinery includes a Gas Turbine jointly owned by the Company with its group companies and other companies having carrying amount as at 31.03.2022 is Nil (as at 31.03.2021 is Nil).

2. A part of freehold land of the Company situated at Gurugram, Manesar and Gujarat has been made available to its group companies/fellow subsidiary for their business purpose.

^A Above includes 69.19 acres of vacant land parcels in the State of Gujarat amounting to '' 174 million acquired by the Company for expansion activities, which are under litigation/title disputes.

* Adjustment includes the intra-head re-grouping of amounts.

4.2 List of immovable properties not yet registered in the name of the Company

10.1 The cost of inventories recognised as an expense during the year in respect of continuing operations was '' 732,397 million (previous year '' 561,714 million).

The cost of inventories recognised as an expense includes '' 55 million (previous year '' 59 million) in respect of write-downs of inventory to net realisable value.

The mode of valuation of inventories has been stated in note 2.15.

13.1 Rights, preference and restriction attached to shares

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

During the year, a dividend of '' 45 per share, total dividend '' 13,594 million (previous year: '' 60 per share, total dividend '' 18,125 million) was paid to equity shareholders.

The Board of Directors recommended a final dividend of '' 60 per share (nominal value of '' 5 per share) for the financial year 202122. This dividend is subject to approval by the shareholders at the Annual General Meeting and has not been accounted as liability in these financial statements. The total expected amount of cash outflow is '' 18,125 million.

* net of deferred tax liabilities of '' 12 million (previous year deferred tax liabilities '' 137 million )

15.1 Summary of borrowing arrangements

Loan repayable on demand from banks (cash credit and overdraft) at an interest rate of 4.95% to 5.0%, repayable within 0-10 days (as at 31.03.2021: interest rate of 5.25% to 5.95%, repayable within 0-10 days w.r.t. cash credit, overdraft and term loan)

15.2 Breach of loan agreement

There has been no breach of covenants mentioned in the loan agreements during the reporting years.

Provisions for employee benefits

The provision for employee benefits include compensated absences and retirement allowance.

Provision for warranty and product recall

Provision is made for estimated warranty claims in respect of products sold which are still under warranty at the end of the reporting period. These claims are expected to be settled as and when warranty claims will arise. Management estimates the provision based on historical warranty claim information and any recent trends that may suggest future claims could differ from historical amounts.

Provision for litigation/disputes

In the ordinary course of business, the Company faces claims by various parties. The Company assesses such claims and monitors the legal environment on an ongoing basis, with the assistance of external legal counsel, wherever necessary. The Company records a liability for any claim where a potential loss is probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the Company provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable (also refer to note 37).

30 SEGMENT INFORMATION

B. Defined benefit plans and other long-term benefits

a) Contribution to Gratuity Funds - Employeeâs Gratuity Fund

b) Leave encashment/compensated absence

c) Retirement allowance

d) Provident fund

e) Post Retirement Medical Benefit Plan

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment risk

The probability or likelihood of lower returns as compared to the expected return on any particular investment.

Interest risk

Longevity risk

Salary risk

The average duration of the defined benefit obligation of gratuity fund at 31.03.2022 is 14 years (as at 31.03.2021: 15 years).

The Company expects to make a contribution of '' 308 million (as at 31.03.2021: '' 200 million) to the defined benefit plans during the next financial year.

Sensitivity analysis

If the discount rate increases (decreases) by 1%, the defined benefit obligation would decrease by '' 996 million (increase by '' 1,177 million) (As at 31.03.2021: decrease by '' 976 million (increase by '' 1,165 million)).

If the expected salary growth rate increases (decreases) by 1%, the defined benefit obligation would increase by '' 1,074 million (decrease by '' 931 million) (As at 31.03.2021: increase by '' 1,079 million (decrease by '' 928 million)).

The Code on Social Security, 2020 (âCodeâ) relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However,the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

Quoted equity investments: Fair value is derived from quoted market prices in active markets.

33.2 Financial risk management

The Company operates with a low Debt Equity ratio. The Company raises short-term rupee borrowings for cash flow mismatches and hence carries no significant liquidity risk. The Company has access to the borrowing facilities of INR 49,700 million as at 31.03.2022 (INR 43,450 million as at 31.03.2021 ) to honour any liquidity requirements arising for business needs. The Company has large investments in debt mutual funds which can be redeemed on a very short notice and hence carries negligible liquidity risk.

(A) Credit risk

(ii) Maturities of financial liabilities

The tables below analyse the Companyâs financial liabilities into relevant maturity groupings based on their contractual maturities:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

Other than financial assets mentioned above, none of the finanacial assets were impaired and there were no indications that defaults in payment obligations would occur.

(B) Liquidity risk

(C) Market risk

(i) Foreign currency risk

- forward foreign exchange and options contracts for foreign currency risk mitigation

Foreign currency sensitivity analysis

The Company is mainly exposed to JPY, USD and EURO.

The following table details the Companyâs sensitivity to a 10% increase and decrease in the INR against the relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items as tabulated above and adjusts their translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans. A positive number below indicates an increase in profit or equity and vice-versa.

Equity price sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of the year.

If the equity prices had been 5% higher/lower:

Other comprehensive income for the year ended 31^st March 2022 would increase/decrease by INR 665 million (for the year ended 31^st March 2021: increase/decrease by INR 491 million) as a result of the change in fair value of equity investment measured at FVTOCI.

Exposure in mutual funds

The Company manages the surplus funds majorly through investments in debt based mutual fund schemes. The price of investment in these mutual fund schemes is reflected though Net Asset Value (NAV) decleared by the Asset Management Company on daily basis as reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investments.

Mutual fund price sensitivity analysis

The sensitivity analysis below have been determined based on Mutual Fund Investment at the end of the reporting period.

If NAV has been 1% higher/lower:

Profit for year ended 31.03.2022 would increase/decrease by '' 3,905 million (for the year ended 31.03.2021 by '' 4,057 million) as a result of the changes in fair value of mutual fund investments.

33.3 Capital management

The Companyâs objectives when managing capital are to:

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

33.4 Foreign exchange derivative contracts

The Company follows a consistent policy of mitigating foreign exchange risk by entering into appropriate hedging instruments as considered necessary from time to time. Depending on the future outlook on currencies, the Company may keep the exposures unhedged or hedged only as a part of the total exposure.

The Company does not enter into a foreign exchange derivative transactions for speculative purposes.

35 Leases

The Company as a Lessee

The total cash outflow for leases for the year ended 31 March, 2022 were '' 109 million (previous year '' 136 million).

(iii) Extension and termination option

Extension and termination options are included in various property and equipment leases executed by the Company. These are used to maximise operational flexibility in terms of managing the assets used in companyâs operations. Generally, these options are exercisable mutually by both the lessor and the lessee.

The Company as a Lessor Leasing arrangements

The Company has entered into operating lease arrangements for various land and premises. These arrangements are cancellable in nature and range between three to fifteen years. Lease rental income earned by the Company is set out in Note 22 as âRental incomeâ.

(vii) In respect of disputed Local Area Development Tax (LADT) (up to 15^th April 2008)/Entry Tax, the amounts under dispute are '' 21 million (as at 31.03.2021: '' 21 million) for LADT and '' 20 million (as at 31.03.2021: '' 20 million) for Entry Tax. The State Government of Haryana has repealed the LADT effective from 16^th April 2008 and introduced the Haryana Tax on Entry of Goods into Local Area Act, 2008 with effect from the same date. After implementation of Goods & Services Act in 2017, Entry Tax Act in Haryana was repealed.

(viii) (a) The Competition Commission of India (âCCIâ) had passed an order dated 25^th August 2014 stating that the Company has violated certain sections of the Competition Act, 2002 for not making diagnostic tools and genuine spare parts freely available in the open market and has imposed a penalty of '' 4,712 million. The Delhi High Court, on 16^th May 2019, disposed the Companyâs petition stating that the Company had alternative remedies available. Thereafter, Company filed a Special Leave Petition before the Supreme Court of India, wherein an interim stay on the CCIâs order was granted on July 1, 2019 and the stay is continuing.

(b) The Competition Commission of India (âCCIâ) had initiated suo-moto proceedings in the month of February 2019 alleging that the Company has violated certain sections of the Competition Act, 2002 relating to resale price maintenance. The Company filed its response to the Director Generalâs investigation report against the Company before the CCI on 9^th April 2021 and placed its final arguments during the virtual hearing on 15^th April 2021. The Company has received the order from CCI dated August 23, 2021, whereby the Commission has arrived at a decision against the Company and a penalty of '' 2,000 million was imposed on the Company for imposing a discount control policy. The Company is of the view that the CCI has failed to consider voluminous evidence that it has submitted in its defense. The Company has been legally advised that there are fair and reasonable grounds to contest the case. The Company has filed an appeal before the National Company Law Appellate Tribunal (âNCLATâ) to vigorously defend its position against the CCI order. The NCLAT has stayed the operation of the CCI order including the cease and desist direction and penalty subject to the Company depositing 10% of the penalty imposed i.e. '' 200 million. The Company has deposited the '' 200 million and will contest the CCI order.

(ix) The Honâble Supreme Court in a ruling during the previous year, had passed a judgement on the definition and scope of âBasic Wagesâ under the Employeesâ Provident Funds and Miscellaneous Provision Act, 1952.

The Company evaluated the CMA arrangement in accordance with guidance provided in Ind AS 116 and concluded that the specified assets and right to use the same are implied in the agreement. The Company also evaluated the contractual rights and obligations including relating to pricing, termination and renewal and concluded that a reasonable certainty, as defined by Ind AS 116, does not exists across the lease period. Accordingly no right-of-use assets or lease liability has been recognised on account of the given arrangement. The payments made towards cost of purchase of vehicles recorded during the year includes '' 17,251 million (previous year '' 12,718 million) towards a component of lease payment for specified assets (Written Down value of specified assets as on March 31,2022 is '' 111,841 million (Previous year '' 73,203 million)) , as per the information provided by SMG.

Notes:

1. Traded goods comprise vehicle, spares, components, dies and moulds. During the year 536,445 vehicle (previous year 368,526 vehicle) was purchased.

2. Closing stock of vehicles is after adjustment of 74 vehicles (previous year 42 vehicles) totally damaged.

3. Sales quantity excludes own use vehicles 1,978 Nos. (previous year 425 Nos.)

4. Sales quantity excludes sample vehicles 21 Nos. (previous year 15 Nos.)

5. Previous year figures are in bracket.

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

*Net profit after taxes non-cash operating expenses interest loss on sale of fixed assets.

"Interest and lease payments.

^APurchases of raw materials and Stock-in-trade.

^AATotal equity borrowings - cash and cash equivalenst deferred tax liabilities.

Reasons for variances

# Higher investment in long-term open ended debt schemes which is in line with investment strategy of the Company.

## Lower appreciation on quoted equity instruments.

47 The figures of previous year have been re-grouped, wherever necessary, to conform to the current year classification.

48 The financial statements were approved by the the Board of Directors and authorised for issue on April 29, 2022.

Mar 31, 2021

The financial statements have been prepared as a going concern in accordance with Indian Accounting Standards (Ind AS) notified under the Section 133 of the Companies Act, 2013 (âthe Actâ) read with the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

2.2 Basis of preparation and presentation

The financial statements have been prepared on the historical cost convention on accrual basis except for certain financial instruments which are measured at fair value at the end of each reporting period, as explained in the accounting policies mentioned below. Historical cost is generally based on the fair value of the consideration given in exchange of goods or services.

All assets and liabilities have been classified as current or noncurrent according to the Companyâs operating cycle and other criteria set out in the Act. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current non-current classification of assets and liabilities.

The principal accounting policies are set out below.

2.3 Going concern

The board of directors have considered the financial position of the Company as at March 31,2021 and the projected cash flows and financial performance of the Company for at least twelve months from the date of approval of these financial statements as well as planned cost and cash improvement actions, and believe that the plan for sustained profitability remains on course.

The board of directors have taken actions to ensure that appropriate long-term cash resources are in place at the date of signing the accounts to fund the Companyâs operations.

2.4 Use of estimates and judgements

The preparation of financial statements in conformity with Ind AS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income, expenses and disclosures of contingent assets and liabilities at the date of these financial statements and the reported amount of revenues and expenses for the years presented. Actual results may differ from the estimates.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are included in the following notes:

Note 32 : Provision for employee benefits Provision for employee benefits requires that certain assumptions such as expected future salary increases, average life expectancy and discount rates etc. are made in order to determine the amount to be recorded for retirement benefit obligations. Substantial changes in the assumed development of any of these variables may significantly change the Companyâs retirement benefit obligations.

Note 17 & 37 : Provision for litigations

Income Tax: The Companyâs tax jurisdiction is in India. Significant judgements are involved in determining the provision for income taxes including judgement on whether tax positions are probable of being sustained in tax assessments. A tax assessment can involve complex issues, which can only be resolved over extended time periods.

Other litigations: Litigations often involve complex legal/regulatory issues and are connected with a high degree of uncertainty. Accordingly, the assessment of whether an obligation exists on the balance sheet date as a result of an event in the past, and whether a future cash outflow is likely and the obligation can be reliably estimated, largely depends on estimations by the management.

Note 17 : Provision for warranty and product recall

The Company creates provision based on historical warranty claim experience. In addition, assumptions on the amounts of potential costs are also included while creating the provisions. The provisions are regularly adjusted to reflect new information.

Note 4 : Property, Plant and Equipment - Useful economic life

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an assetâs expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Companyâs assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end.

Note 35 : Leases

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to the Companyâs operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.

Estimation of uncertainties relating to the global health pandemic from COVID-19 :

The Company has considered possible effects that may result from pandemic relating to COVID-19 on the carrying amount of property, plant and equipment, investments, inventories, receivables and other current assets. In developing the assumptions relating to the possible future uncertanities in the economic conditions due to pandemic, the Company, as at the date of approval of these financial statements has used internal and external sources of information. The Company has performed sensitivity analysis on the assumptions used and based on current estimates expects the carrying amount of these assets will be recovered.The impact of COVID-19 on the Companyâs financial statements may differ from that estimated as at the date of approval of these financial statements.

2.5 Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, discounts, sales incentives, goods & service tax and value added taxes.

The Company recognises revenue when the amount of revenue and its related cost can be reliably measured and it is probable that future economic benefits will flow to the entity and degree of managerial involvement associated with ownership or effective

- amounts expected to be payable by the Company under residual value guarantees

- t he exercise price of purchase option if the Company is reasonably certain to exercise that option, and

- payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the rate of interest implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Company, the lesseâs incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in the similar economic environment with similar terms, security and conditions.

The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract in accordance with Ind AS 116 and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.

Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in the statement of profit and loss, unless they are directly attributable to qualifying assets. Variable lease payments are recognised in the statement of profit and loss in the period in which the condition that triggers those payments that occur.

2.8 Foreign currencies

2.8.1 Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (âthe functional currencyâ). The financial statements are presented in Indian rupee (''), which is the Companyâs functional and presentation currency.

2.8.2 Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges.

control have been met for each of the Companyâs activities as described below. The Company bases its estimates on historical i results, taking into consideration the type of customer, the type f of transactions and the specifics of each arrangement.

l 2.5.1 Sale of goods

5 Revenue is recognised for domestic and export sales of vehicles, 5 spare parts, and accessories when the Company transfers 3 control over such products to the customer on dispatch from the factory and the port respectively.

2.5.2 Income from services

5 Revenue from engineering services are recognised as the related i services are performed. Revenue from extended warranty is 5 recognised on time proportion basis. Income from other services 5 are accounted over the period of rendering of services.

/ Invoicing in excess of revenues are classified as contract liabilities. Contract liabilities pertains to advance consideration received towards sale of extended warranty and other services by the Company. i

2.5.3 Income from royalty

Revenue from royalty is recognised on an accrual basis in accordance with the substance of the relevant arrangements.

i 2.6 Other Income

Dividend income from investments is recognised when the t shareholdersâ right to receive payment has been established. t

, Interest income from a financial asset is recognised when it is 5 probable that the economic benefits will flow to the Company and i the amount of income can be measured reliably.

i 2.7 Leases

5 Effective April 1, 2019, the Company has adopted Ind AS 116 i âLeasesâ and applied to all lease contracts existing on the date of f initial application, using the modified retrospective method along 5 with transition option to recognise right-of-use assets (RoU) at i an amount equal to the lease liability.

2.7.1 The Company as lessor

Leases are classified as finance leases whenever the terms of the i lease transfer substantially all the risks and rewards of ownership t to the lessee. All other leases are classified as operating leases. i

Amounts due from lessees under finance leases are recognised as receivables at the amount of the Companyâs net investment i in the leases. Finance lease income is allocated to accounting 5 periods so as to reflect a constant periodic rate of return on the f Companyâs net investment outstanding in respect of the leases. i When the Company is an intermediate lessor, it accounts for

its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right of-use asset arising from the head lease.

Rental income from operating leases is recognised on a straightline basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the Companyâs expected inflationary cost increases, such increases are recognised in the period in which such benefits accrue.

The Company did not make any adjustments to the accounting for assets held as a lessor as a result of adopting the new lease standard.

2.7.2 The Company as lessee

The Company assesses whether a contract contains a lease, at inception of a contract. At the date of commencement of the lease, the Company recognises a âright-of-useâ asset and a corresponding liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these shortterm and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease

Right-of-use asset are measured at cost comprising the following:

- the amount of initial measurement of liability

- any lease payments made at or before the commencement date less the incentives received

- any initial direct costs, and

- restoration costs

They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use asset are depreciated over the shorter of assetâs useful life and the lease term on a straight-line basis. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.

Lease liabilities measured at amortised cost include the net present value of the following lease payments:

- fixed payments (including in-substance fixed payments), less any lease incentives receivable

- variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date

2.9 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Interest income earned on the temporary investment of surplus funds out of specific borrowings pending their expenditure on qualifying assets are deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in the Statement of profit or loss in the period in which they are incurred.

2.10 Employee benefits

2.10.1 Short-term obligations

Liabilities for wages and salaries including non-monetary benefits that are expected to be settled within the operating cycle after the end of the period in which the employees render the related services are recognised in the period in which the related services are rendered and are measured at the undiscounted amount expected to be paid.

2.10.2 Other long-term employee benefit obligations

Liabilities for leave encashment and compensated absences which are not expected to be settled wholly within the operating cycle after the end of the period in which the employees render the related service are measured at the present value of the estimated future cash outflows using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period on Government bonds that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.

2.10.3 Post-employment obligations Defined benefit plans

The Company has defined benefit plans namely gratuity, provident fund and retirement allowance for employees. The gratuity fund and provident fund are recognised by the income tax authorities and are administered through trusts set up by the Company. Any shortfall in the size of the fund maintained by the trust is additionally provided for in profit or loss.

The liability or asset recognised in the balance sheet in respect of gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on Government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in profit or loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Defined contribution plans

The Company has defined contribution plans for post-em ployment benefit namely the superannuation fund which is recognised by the income tax authorities. This fund is administered through a trust set up by the Company and the Companyâs contribution thereto is charged to profit or loss every year. The Company has no further payment obligations once the contributions have been paid.

The Company also maintains an insurance policy to fund a postemployment medical assistance scheme, which is a defined contribution plan. The Companyâs contribution to State Plans namely Employeesâ State Insurance Fund and Employeesâ Pension Scheme are charged to the statement of profit and loss every year.

Termination benefits

A liability for the termination benefit is recognised at the earlier of when the Company can no longer withdraw the offer of the termination benefit and when the Company recognises any related restructuring costs.

2.11 Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

2.11.1 Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from âprofit before taxâ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items

that are never taxable or deductible. The Companyâs current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

2.11.2 Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profits. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences and incurred tax losses to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

2.11.3 Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the income taxes are also recognised in other comprehensive income or directly in equity respectively.

2.12 Property, plant and equipment

Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation less accumulated impairment, if any. Freehold land is measured at cost and is not depreciated.

Such assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

Subsequent costs are included in the assetâs carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. Other repairs and maintenance of revenue nature are charged to profit or loss during the reporting period in which they are incurred.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from continued use of asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of asset and recognised in profit or loss.

Depreciation methods, estimated useful lives and residual value

Depreciation is calculated using the straight-line method on a pro-rata basis from the month in which each asset is put to use to allocate their cost, net of their residual values, over their estimated useful lives.

Estimated useful life of assets are as follows which is based on technical evaluation of the useful lives of the assets:

Building	3-60 years
Plant and machinery other than Dies and Jigs	8 years
Dies and jigs	5 years
Electronic data processing equipment	3 years
Furniture and fixtures	10 years
Office appliances	5 years
Vehicles	8 years

The assetsâ residual values, estimated useful lives and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

All assets, the individual written down value of which at the beginning of the year is '' 5,000 or less, are depreciated at the rate of 100%. Assets purchased during the year costing '' 5,000 or less are depreciated at the rate of 100%.

Gains and losses on disposal are determined by comparing proceeds with carrying amount and are credited / debited to profit or loss.

Freehold land and Leasehold land in the nature of perpetual lease is not amortised.

transaction costs. Subsequently, they are measured at fair value d with gains / losses arising from changes in fair value recognised af in other comprehensive income. This cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.

g The Company has equity investments in certain entities which are not held for trading. The Company has elected the fair value

h through other comprehensive income irrevocable option for all such investments. Dividend on these investments are recognised in profit or loss.

2.18.3 Equity investment in subsidiaries, associates and el joint ventures

af Investments representing equity interest in subsidiaries, associates and joint ventures are carried at cost less any provision for impairment. Investments are reviewed for impairment if events s or changes in circumstances indicate that the carrying amount at may not be recoverable.

2.18.4 Financial assets at fair value through profit or loss

â^s (FVTPL)

Investment in equity instrument are classified at fair value through profit or loss, unless the Company irrevocably elects on initial e recognition to present subsequent changes in fair value in other at comprehensive income for investments in equity instruments al which are not held for trading.

Financial assets that do not meet the amortised cost criteria s or fair value through other comprehensive income criteria are e measured at fair value through profit or loss. A financial asset ;s that meets the amortised cost criteria or fair value through other comprehensive income criteria may be designated as at fair value through profit or loss upon initial recognition if such designation eliminates or significantly reduces a measurement ^g or recognition inconsistency that would arise from measuring assets and liabilities or recognising the gains or losses on them e on different bases. t

al Investments in debt based mutual funds are measured at fair value through profit or loss.

it Financial assets which are fair valued through profit or loss are measured at fair value at the end of each reporting period, with any gains or losses arising on remeasurement recognised in profit or loss.

e 2.18.5 Trade receivables

e Trade receivables are recognised initially at fair value and e subsequently measured at amortised cost less provision for s impairment. e

2.13 Intangible assets

2.13.1 Intangible assets acquired separately

Lump sum royalty and engineering support fee is carried at cost which is incurred and stated in the relevant licence agreement with the technical knowhow / engineering support provider less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight line basis over their estimated useful lives. The estimated useful lives and amortisation method are reviewed at end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

2.13.2 Amortisation methods and useful lives

Lump sum royalty and engineering support fee is amortised on a straight line basis over its estimated useful life i.e. 5 years from the start of production of the related model. An intangible asset is derecognised when no future economic benefits are expected from use.

2.14 Impairment of tangible and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

2.15 Inventories

Inventories are valued at the lower of cost, determined on the weighted average basis and net realisable value.

The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

Machinery spares (other than those supplied along with main plant and machinery, which are capitalised and depreciated accordingly) are charged to profit or loss on consumption except

those valued at '' 5,000 or less individually, which are charged to revenue in the year of purchase.

2.16 Provisions and contingencies

Provisions: Provisions are recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are determined by discounting the expected future cash flows at a pre tax rate that reflects current market assessment of the time value of money and the risks specific to the liability.

Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

2.17 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial instruments (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. Subsequently, financial instruments are measured according to the category in which they are classified.

2.18 Financial assets

All purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

2.18.1 Classification of financial assets

Classification of financial assets depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

The Company classifies its financial assets in the following measurement categories:

â¢ those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

â¢ those measured at amortised cost

The classification depends on the Companyâs business model for managing the financial assets and the contractual terms of the cash flows.

A financial asset that meets the following two conditions is measured at amortised cost unless the asset is designated at fair value through profit or loss under the fair value option:

â¢ Business model test : the objective of the Companyâs business model is to hold the financial asset to collect the contractual cash flows.

â¢ Cash flow characteristic test : the contractual term of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A financial asset that meets the following two conditions is measured at fair value through other comprehensive income unless the asset is designated at fair value through profit or loss under the fair value option:

â¢ business model test : the financial asset is held within a business model whose objective is achieved by both collecting cash flows and selling financial assets.

â¢ cash flow characteristic test : the contractual term of the financial asset gives rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

All other financial assets are measured at fair value through profit or loss.

2.18.2 Investments in equity instrument at fair value through other comprehensive income (FVTOCI)

On initial recognition, the Company can make an irrevocable election (on an instrument by instrument basis) to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instrument. This election is not permitted if the equity instrument is held for trading. These elected investments are initially measured at fair value plus

amortised cost or fair value through profit or loss the exchange differences are recognised in profit or loss except for those which are designated as hedge instrument in a hedging relationship. Further change in the carrying amount of investments in equity instruments at fair value through other comprehensive income relating to changes in foreign currency rates are recognised in other comprehensive income.

2.19 Financial liabilities and equity instruments

2.19.1 Classification of debt or equity

Debt or equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

2.19.2 Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.

2.19.3 Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest rate method or at fair value through profit or loss.

2.19.3.1 Trade and other payables

Trade and other payables represent liabilities for goods or services provided to the Company prior to the end of financial year which are unpaid.

2.19.3.2 Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest rate method.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any noncash assets transferred or liabilities assumed, is recognised in profit or loss.

2.19.3.3 Foreign exchange gains or losses

For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of each reporting period, the foreign exchange gains and losses are determined

Derivatives embedded in all other host contract are separated only if the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host and are measured at fair value through profit or loss. Embedded derivatives closely related to the host contracts are not separated.

2.21 Hedge accounting

The Company designates certain hedging instruments, in respect of foreign currency risk, as either fair value hedges or cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges.

At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an on-going basis, the Company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk.

Changes in the fair value of these contracts that are designated and effective as hedges of future cash flows are recognised in other comprehensive income (net of tax) and the ineffective portion is recognised immediately in the profit or loss. Amount accumulated in equity are reclassified to the profit or loss in the periods in which the forecasted transaction occurs.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. For forecast transactions, any cumulative gain or loss on the hedging instrument recognised in other equity is retained there until the forecast transaction occurs.

Note 33 sets out details of the fair values of the derivative instruments used for hedging purposes.

2.22 Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

2.23 Government Grant

Government grants are recognised where there is reasonable assurance that the Company will comply with the conditions

2.18.6 Cash and cash equivalents

In the cash flow statement, cash and cash equivalents includes cash in hand, cheques and drafts in hand, balances with bank and deposits held at call with financial institutions, short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet and forms part of financing activities in the cash flow statement. Book overdraft are shown within other financial liabilities in the balance sheet and forms part of operating activities in the cash flow statement.

2.18.7 Impairment of financial assets

The Company assesses impairment based on expected credit losses (ECL) model to the following :

â¢ financial assets measured at amortised cost

â¢ financial assets measured at fair value through other comprehensive income

Expected credit loss are measured through a loss allowance at an amount equal to :

â¢ the twelve month expected credit losses (expected credit losses that result from those default events on the financial instruments that are possible within twelve months after the reporting date); or

â¢ full life time expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).

For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses.

2.18.8 Derecognition of financial assets A financial asset is derecognised only when

â¢ The Company has transferred the rights to receive cash flows from the financial asset or

â¢ Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

2.18.9 Foreign exchange gains and losses

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the exchange rate at the end of each reporting period. For

frtroinn r''i irrorlonominotoH finanr''iol ooo^ o moaonroH n based on the amortised cost of the instruments and are recognised in profit or loss.

The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the exchange rate at the end of the reporting period. For financial liabilities that are measured as at fair value through profit or loss, the foreign exchange component forms part of the fair value gains or losses and is recognised in profit or loss.

2.19.3.4 Lease liabilities

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.

2.19.3.5 Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Companyâs obligations are discharged, cancelled or have expired.

2.20 Derivative financial instruments

The Company enters into foreign exchange forward contracts and certain other derivative financial instruments to manage its exposure to foreign exchange rate risks and commodity price risks. Further details of derivative financial instruments are disclosed in note 33.

Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument which is recognised in other comprehensive income (net of tax) and presented as a separate component of equity which is later reclassified to profit or loss when the hedge item affects profit or loss.

2.20.1 Embedded derivatives

Derivatives embedded in a host contract that is an asset within the scope of Ind AS 109 are not separated. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

and contingent liabilities is recognized as goodwill. Excess of the Companyâs interest in the net fair value of the acquireeâs identifiable assets, liabilities and contingent liabilities over the purchase consideration is recognized, after reassessment of fair value of net assets acquired, in the Capital Reserve.

Common control

A business combination involving entities or businesses under common control is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination and the control is not transitory. Business combinations involving entities under common control are accounted for using the pooling of interests method. The net assets of the transferor entity or business are accounted at their carrying amounts on the date of the acquisition subject to necessary adjustments required to harmonise accounting policies. Any excess or shortfall of the consideration paid over the share capital of transferor entity or business is recognised as capital reserve under equity.

2.28 Rounding of amounts

All amounts disclosed in the financial statements and the accompanying notes have been rounded off to the nearest million as per the requirement of Schedule III of the Companies Act 2013, unless otherwise stated.

3 APPLICABILITY OF NEW AND REVISED IND AS

Ministry of Corporate Affairs (âMCAâ) notifies new standard or amendments to the existing standards. There is no such notification which would have been applicable from April 1,2021.

Government grants are recognised in statement of profit and loss on a systematic basis over the periods in which the Company recognises as expense the related cost for which the grants are intended to compensate.

2.24 Earning Per Share

Basic earning per share has been computed by dividing the net income by the weighted average number of shares outstanding during the year. Diluted earning per share has been computed using the weighted average number of shares and diluted potential shares, except where the result would be anti-dilutive.

2.25 Dividends

Final dividends on shares are recorded on the date of approval by the shareholders of the Company.

2.26 Royalty

The Company pays / accrues for royalty in accordance with the relevant licence agreements.

2.27 Business combinations

Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. Acquisition related costs are recognized in profit or loss as incurred. The acquireeâs identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition are recognized at their fair value at the acquisition date, except certain assets and liabilities that are required to be measured as per the applicable standard.

Purchase consideration in excess of the Companyâs interest in the acquireeâs net fair value of identifiable assets, liabilities

(vii) In respect of disputed Local Area Development Tax (LADT) (upto April 15, 2008) / Entry Tax, the amounts under dispute are '' 21 million (as at 31.03.2020: '' 21 million) for LADT and '' 20 million (as at 31.03.2020: '' 21 million) for Entry Tax. The State Government of Haryana has repealed the LADT effective from April 16, 2008 and introduced the Haryana Tax on Entry of Goods into Local Area Act, 2008 with effect from the same date. After implementation of Goods & Services Act in 2017, Entry Tax Act in Haryana was repealed.

(viii) (a) The Competition Commission of India (âCCIâ) had passed an order dated August 25, 2014 stating that the Company has violated certain sections of the Competition Act, 2002 for not making diagnostic tools and genuine spare parts freely available in the open market and has imposed a penalty of '' 4,712 million. The Delhi High Court, on May 16, 2019, disposed the Companyâs petition stating that the Company had alternative remedies available. Thereafter, Company filed a Special Leave Petition before the Supreme Court of India, wherein an interim stay on the CCIâs order was granted on July 1, 2019 and the stay is continuing.

(ix) The Honâble Supreme Court in a ruling during the previous year, had passed a judgment on the definition and scope of âBasic Wagesâ under the Employeesâ Provident Funds and Miscellaneous Provision Act, 1952.

The payments made towards cost of purchase of vehicles recorded during the year includes '' 12,718 million (previous year '' 9,780 million) towards a component of lease payment for specified assets (Written Down value of specified assets as on March 31,2021 is '' 73,203 million (Previous year '' 68,857 million)) , as per the information provided by SMG.

The figures of previous year have been re-grouped, wherever necessary, to conform to the current year classification.

The financial statements were approved by the the Board of Directors and authorised for issue on April 27, 2021.

Mar 31, 2019

Notes to the Financial Statements

(All amounts in Rs. million, unless otherwise stated)

35 Operating Lease Arrangements The Company as a Lessee

Leasing arrangements

The Company has entered into operating lease arrangements for various land. These arrangements are non-cancellable in nature and range between fifteen to ninty nine years. Lease rental expense is set out in note 28 as ''Rent'' in ''Other expenses''. The future minimum lease commitments under non-cancellable operating leases are as under:

Non-cancellable operating lease commitments
	As at 31.03.2019	As at 31.03.2018
Within one year	60	59
Later than one year but less than five years	268	257
Later than five years	294	366
	622	682

The Company as a Lessor

Leasing arrangements

The Company has entered into operating lease arrangements for various land and premises. These arrangements are both cancellable and non-cancellable in nature and range between three to fifteen years. Lease rental income earned by the Company is set out in Note 22 as ''Rental income''. The future minimum lease receivables under non-cancellable operating leases are as under:

Non-cancellable operating lease receivables

	As at 31.03.2019	As at 31.03.2018
Within one year	88	102
Later than one year but less than five years	353	437
Later than five years	597	1,117
	1,038	1,656

36 Capital & Other Commitments

	As at 31.03.2019	As at 31.03.2018
Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for	27,587	32,718
Outstanding commitments under Letters of Credit established by the Company	2,192	2,162

37 Export Promotion Capital Goods (EPCG)

Export Promotion Capital Goods (EPCG) allows import of capital goods including spares for pre-production, production and post production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from authorization issue date.

The Company has been availing the benefit and has been importing capital goods under the scheme at zero custom duty. The Company has accounted for the benefits received in accordance with the Ind AS 20- Accounting for Government Grants and Disclosure of Government Assistance.

The benefits (saving of custom duty) obtained from government has been treated as a Government Grant, which has been accounted for as deferred benefit under other current liabilities in note no 19 and recognised as a cost of property, plant and equipment. As per the EPCG scheme, the Company has an export obligation equivalent to 6 times of duty saved. The deferred benefit accounted for, shall be credited to statement of profit and loss on a pro-rata basis as and when the export obligation is fulfilled.

38 Contingent Liabilities

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

		As at 31.03.2019	As at 31.03.2018
(0	Excise Duty
	(a) Cases decided in the Company''s favour by Appellate authorities and for which the department has filed further appeals and show cause notices / orders on the same issues for other periods	1,624	1,598
	(b) Cases pending before Appellate authorities in respect of which the Company has filed appeals and show cause notices for other periods	13,884	12,691
	Total	15,508	14,289
	Amount deposited under protest	1,694	1,601
00	Service Tax
	(a) Cases decided in the Company''s favour by Appellate authorities and for which the department has filed further appeals and show cause notices / orders on the same issues for other periods	1,210	1,060
	(b) Cases pending before Appellate authorities in respect of which the Company has filed appeals and show cause notices for other periods	3,569	2,851
	(c) Show cause notices on issues yet to be adjudicated	12	158
	Total	4,791	4,069
	Amount deposited under protest	60	61
(iii)	Income Tax
	(a) Cases decided in the Company''s favour by Appellate authorities and for which the department has filed further appeals	10,370	5,447
	(b) Cases pertaining to issues decided in favour of the Company for an earlier year but the Income Tax Department have raised a demand for a similar issue for subsequent years and are pending before Appellate authorities / Dispute Resolution Panel pursuant to appeals filed by the Company	30,529	28,464
	(c) Other cases pending before Appellate authorities / Dispute Resolution Panel in appeals filed by the Company	23,830	18,984
	Total	64,729	52,895
	Amount deposited under protest	4,789	3,899
(iv)	Custom Duty
	(a) Cases pending before Appellate authorities in respect of which the Company has filed appeals	81	108
	(b) Others	70	60
	Total	151	168
	Amount deposited under protest	-	25
(v)	Sales Tax
	Cases pending before Appellate authorities in respect of which the Company has filed appeals	10	67
	Amount deposited under protest	1	18
(vi)	Claims
	Claims against the Company lodged by various parties	1,043	1,017
	Others	1,929	31

(vii) In respect of disputed Local Area Development Tax (LADT) (upto April 15, 2008) / Entry Tax, the amounts under dispute are Rs. 21 million (as at 31.03.2018: Rs. 21 million) for LADT and Rs. 20 million (as at 31.03.2018: Rs. 20 million) for Entry Tax. The State Government of Haryana has repealed the LADT effective from April 16, 2008 and introduced the Haryana Tax on Entry of Goods into Local Area Act, 2008 with effect from the same date.

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

(ix) The Hon''ble Supreme Court in a recent ruling has passed a judgement on the definition and scope of ''Basic Wages'' under the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. Pending issuance of guidelines by the regulatory authorities on the application of this ruling, the impact on the Company, if any, cannot be ascertained.

39 Excise Duty

Consequent to the introduction of Goods and Services Tax (GST) with effect from July 01, 2017; Central Excise, Value Added Tax (VAT) etc. have been subsumed into GST. In accordance with Ind AS 115 on Revenue Recognition and Schedule III of the Companies Act, 2013, unlike Excise Duty, levies like GST, VAT etc. are not part of revenue. Accordingly, the figure for the year ended March 31, 2019 is not comparable with year ended March 31, 2018. The following additional information is being provided to facilitate such understanding:

		Year ended 31.03.2019	Year ended 31.03.2018
A.	Sale of products	830,265	803,365
B.	Excise duty	-	22,317
C.	Sale of products excluding excise duty (A) - (B)	830,265	781,048

40 The Company entered into a ''Contract Manufacturing Agreement'' (CMA) with Suzuki Motor Gujarat Private Limited (SMG), a fellow subsidiary of Suzuki Motor Corporation (SMC) on December 17, 2015 for a period of 15 years which automatically extends for a further period of 15 years, unless terminated by mutual agreement. SMG during the term of this agreement, shall manufacture and supply vehicles on an exclusive basis to MSIL in accordance with the terms of the CMA . Accordingly, expenses recorded during the year includes Rs. 4,912 million (previous year Rs. 2,921 million) towards the lease of specific Property, Plant & Equipment.

41 Auditors'' Remuneration*

	Year ended 31.03.2019	Year ended 31.03.2018
Statutory audit	16	16
Taxation matters	8	8
Other audit services / certification	3	4
Reimbursement of expenses	1	1

* excluding GST, Service Tax and Swachh Bharat & Krishi Kalyan Cess.

42 Details of Research and Development Expenses

	Year ended 31.03.2019	Year ended 31.03.2018
Revenue expenditure
Employees remuneration and benefits	3,471	3,100
Other expenses of manufacturinq and administration	3,245	1,973
Capital expenditure	4,372	3,570
Less: Contract research income	(3,960)	(327)
	7.128	8.316

43 CIF Value of Imports

	Year ended 31.03.2019	Year ended 31.03.2018
Raw materials and components	43,969	38,879
Capital goods	13,312	6,483
Stores and spares	1,142	1,082
Dies and moulds	89	94
Others	496	567

44 Value of Imported and Indigenous Material Consumed

		Year ended 31.03.2019	Year ended 31.03.2018
i)	Raw material and components
	Imported	29,489	29,965
	Indigenous	420,750	419,448
		450,239	449,413
	Percentage of total consumption
	Imported	7%	7%
	Indigenous	93%	93%
ii)	Machinery spares
	Imported	630	581
	Indigenous	2,323	2,109
		2,953	2,690
	Percentage of total consumption
	Imported	21%	22%
	Indigenous	79%	78%
iii)	Consumption of stores
	Imported	131	115
	Indigenous	1,962	2,247
		2,093	2,362
	Percentage of total consumption
	Imported	6%	5%
	Indigenous	94%	95%

45 Licensed Capacity, Installed Capacity and Actual Production

Product	Units	Licensed Capacity	Installed Capacity**	Actual Production
Passenger Car and Light Duty Utility Vehicles	Nos	_*	1,576,000	1,562,938
Passenger Car and Light Duty Utility Vehicles	Nos	(-)*	(1,566,800)	(1,624,487)

Notes

* Licensed capacity is not applicable from 1993-94.

** Installed capacity is as certified by the management and relied upon by the auditors, being a technical matter

Previous year figures are in bracket.

46 Sales, Opening Stock and Closing Stock

Product	Sales		Opening Stock		Closing Stock
	Qty (Nos)	Value	Qty (Nos)	Value	Qty (Nos)	Value
Passenger Vehicles	1,862,449	747,715	29,789	9,700	18,122	5,768
	(1,779,574)	(731,314)	(33,156)	(12,330)	(29,789)	(9,700)
Spare Parts and Components	*	82,295	*	3,197	*	3,798
	*	(71,803)	*	(3,072)	*	(3,197)
Dies, Moulds and Others	*	255	*	-	*	-
	*	(248)	*	-	*	-
Work in Progress	*	NA	*	1,772	*	2,995
	*	(NA)	*	(1,546)	*	(1,772)

Notes:

1 Traded goods comprise vehicle, spares, components, dies and moulds. During the year 289,467 vehicle (previous year 153,233 vehicle) were purchased.

2 Closing stock of vehicles is after adjustment of 199 vehicles (previous year 82 vehicles) totally damaged.

3 Sales quantity excludes own use vehicles 1,403 Nos. (previous year 1,284 Nos.)

4 Sales quantity excludes sample vehicles 21 Nos. (previous year 147 Nos.)

5 Previous year figures are in bracket.

* 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.

47 Statement of Raw Material and Components Consumed

Group of material	Unit	2018-19		2017-18
Group of material	Unit	Qty	Amount	Qty	Amount
Steel coils	MT	284,306	15,809	290,071	14,866
Ferrous castings	MT	41 ,204	5,913	42,858	5,519
Non-ferrous castings	MT	48,354	8,916	47,730	8,339
Other components		*	415,818	*	416,671
Paints	K.LTR ''	13,005		13,082
	MT	11,307	3,783	11,938	4,018
			450,239		449,413

* 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.

48 The financial statements were approved by the the Board of Directors and authorised for issue on April 25, 2019.

For and on behalf of the Board of Directors
KENICHI AYUKAWA	KAZUNARI YAMAGUCHI	AJAY SETH	SANJEEV GROVER
Managing Director & CEO	Director	Chief Financial Officer	Chief General Manager & Company Secretary
DIN : 02262755	DIN : 07961388		ICSI Membership No : F3788
Place: New Delhi
Date: 25th April, 2019

Mar 31, 2018

Note:

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.

*Dues to micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of intimation received from the âsuppliersâ regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006.

30. Segment Information

The Company is primarily in the business of manufacturing, purchase and sale of motor vehicles, components and spare parts ("automobiles"). The other activities of the Company comprise facilitation of pre-owned car sales, fleet management and car financing. The income from these activities is not material in financial terms but such activities contribute significantly in generating demand for the products of the Company.

The Board of Directors of the Company, which has been identified as being the chief operating decision maker (CODM), evaluates the Company''s performance, allocate resources based on the analysis of the various performance indicator of the Company as a single unit. Therefore there is no reportable segment for the Company.

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

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

c) Non-current segment assets includes property, plant and equipment, capital work in progress, intangible assets and capital advances

32. Employee Benefit Plans

The various benefits provided to employees by the Company are as under:

A. Defined contribution plans

a) Superannuation fund

b) Post employment medical assistance scheme

c) Employers contribution to Employee State Insurance Act 1948

d) Employers contribution to Employee''s Pension Scheme 1995

B. Defined benefit plans and other long term benefits

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

b) Leave encashment / compensated absence

c) Retirement allowance

d) Provident fund

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment risk

The probability or likelihood of lower returns as compared to the expected return on any particular investment.

Interest risk

Longevity risk

Salary risk

The Company expects to make a contribution of '' 173 million (as at 31.03.17: '' 160 million) to the defined benefit plans during the next financial year.

Sensitivity analysis

If the discount rate increases (decreases) by 1%, the defined benefit obligation would decrease by Rs, 508 million (increase by Rs, 604 million) (as at 31.03.17: decrease by Rs, 410 million (increase by Rs, 485 million)).

If the expected salary growth rate increases (decreases) by 1%, the defined benefit obligation would increase by Rs, 567 million (decrease by Rs, 490 million) (as at 31.03.17: increase by Rs, 436 million (decrease by Rs, 363 million)).

Level 1: Quoted prices in the active market. This level of hierarchy includes financial assets that are measured by reference to quoted prices in the active market. This category consists of quoted equity shares and debt based open ended mutual funds.

Level 2: Valuation techniques with observable inputs. This level of hierarchy includes items measured using inputs other than quoted prices included within Level 1 that are observable for such items, either directly or indirectly. This level of hierarchy consists of debt based close ended mutual fund investments and over the counter (OTC) derivative contracts.

Level 3: Valuation techniques with unobservable inputs. This level of hierarchy includes items measured using inputs that are not based on observable market data (unobservable inputs). Fair value determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data. The main item in this category are unquoted equity instruments.

Quoted equity investments: Fair value is derived from quoted market prices in active markets.

33.2 Financial risk management

The Company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts, foreign currency option contracts are entered to hedge certain foreign currency risk exposures and interest rate swaps to hedge variable interest rate exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

(A) Credit risk

Other than financial assets mentioned above, none of the financial assets were impaired and there were no indications that defaults in payment obligations would occur.

(B) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and to ensure funds are available for use as per the requirements.

The Company operates with a low Debt Equity ratio. The Company raises short term rupee borrowings for cash flow mismatches and hence carries no significant liquidity risk. The Company has access to the borrowing facilities of '' 29,850 million as at 31.03.2018 ('' 28,450 million as at 31.03.2017) to honor any liquidity requirements arising for business needs. The Company has large investments in debt mutual funds which can be redeemed on a very short notice and hence carries negligible liquidity risk.

(ii) Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

(i) Foreign currency risk

a) forward foreign exchange and options contracts for foreign currency risk mitigation

b) foreign currency interest rate swaps to mitigate foreign currency & interest rate risk on foreign currency loan.

Foreign currency sensitivity analysis

The Company is mainly exposed to JPY, USD and EURO.

The following table details the Company''s sensitivity to a 10% increase and decrease in the INR against the relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items as tabulated above and adjusts their translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans. A positive number below indicates an increase in profit or equity and vice-versa.

(ii) Security price risk Exposure in equity

The Company is exposed to equity price risks arising from equity investments held by the Company and classified in the balance sheet as fair value through OCI.

Equity price sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of the reporting period.

If the equity prices had been 5% higher / lower:

Other comprehensive income for the year ended 31st March 2018 would increase / decrease by '' 539 million (for the year ended 31st March 2017: increase / decrease by '' 365 million) as a result of the change in fair value of equity investment measured at FVTOCI.

Exposure in mutual funds

The Company manages the surplus funds majorly through investments in debt based mutual fund schemes. The price of investment in these mutual fund schemes is reflected though Net Asset Value (NAV) decleared by the Asset Management Company on daily basis as reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investments.

Mutual fund price sensitivity analysis

The sensitivity analysis below have been determined based on Mutual Fund Investment at the end of the reporting period.

If NAV has been 1% higher / lower:

Profit for year ended 31.03.2018 would increase / decrease by '' 3,408 million (for the year ended 31.03.2017 by '' 2,762 million) as a result of the changes in fair value of mutual fund investments.

33.3 Capital management

The Company''s objectives when managing capital are to:

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company has large investments in debt mutual fund schemes wherein underlying portfolio is spread across securities issued by different issuers having different credit ratings. The credit risk of investments in debt mutual fund schemes is managed through investment policies and guidelines requiring adherence to stringent credit control norms based on external credit ratings. The credit quality of the entire portfolio investments is monitored on a quarterly basis. The Company''s overall strategy remains unchanged from previous year.

The Company is not subject to any externally imposed capital requirements.

33.4 Foreign exchange derivative contracts

The Company does not enter into a foreign exchange derivative transactions for speculative purposes.

The following table details the foreign currency derivative contracts outstanding at the end of the reporting period:

34. Related Party Transactions

34.1 Description of related parties Holding Company

Suzuki Motor Corporation, Japan (SMC)

Subsidiaries

J.J. Impex (Delhi) Private Limited

True Value Solutions Limited

Maruti Insurance Distribution Services Limited *

Maruti Insurance Agency Network Limited *

Maruti Insurance Agency Solutions Limited *

Maruti Insurance Business Agency Limited *

Maruti Insurance Broker Limited *

Maruti Insurance Agency Logistics Limited *

Maruti Insurance Agency Services Limited *

Joint Ventures

Magneti Marelli Powertrain India Private Limited

Plastic Omnium Auto Inergy Manufacturing India Private Limited

Associates

Bharat Seats Limited

Caparo Maruti Limited

Jay Bharat Maruti Limited

Krishna Maruti Limited

Machino Plastics Limited

SKH Metals Limited

Nippon Thermostat (India) Limited

Bellsonica Auto Component India Private Limited

Mark Exhaust Systems Limited

FMI Automotive Components Private Limited

Maruti Insurance Broking Private Limited

Manesar Steel Processing India Private Limited

Hanon Climate Systems India Private Limited

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

Magyar Suzuki Corporation Ltd.

Suzuki Motor Gujarat Private Limited Suzuki Assemblers Malaysia Sdn.Bhd Cambodia Suzuki Motor Co. Ltd.

Suzuki Motor De Mexico

Vietnam Suzuki Corporation

Suzuki International Europe G.M.B.H.

Suzuki Australia Pty. Ltd.

Suzuki Motor Poland Sp. Z.O.O.

Suzuki Gb Plc

Suzuki Auto South Africa (Pty) Ltd Suzuki Philippines Inc.

Taiwan Suzuki Automobile Corporation Suzuki Motor (Thailand) Co., Ltd.

Suzuki Thilawa Motor Co. Ltd Suzuki Motorcycle India Ltd.

Thai Suzuki Motor Co., Ltd.

Suzuki (Myanmar) Motor Co., Ltd.

Suzuki Malaysia Automobile Sdn. Bhd.

Suzuki New Zealand Ltd.

Pt Suzuki Indomobil Motor

Suzuki Austria Automobile Handels G.M.B.H.

Suzuki France S.A.S.

Suzuki Italia S.P.A.

Suzuki Motor Iberica, S.A.U.

Key Management Personnel (KMP)

Mr R. C. Bharagava

Chairman

Mr. Kenichi Ayukawa

Managing Director & CEO

Mr. Kazunari Yamaguchi

Director (w.e.f. January 26, 2018)

Mr. O. Suzuki

Director

Mr. T. Suzuki

Director

Mr. Toshiaki Hasuike

Director

Mr. Shigetoshi Torii

Director (till January 25, 2018)

Mr. K. Ay a be

Director

Mr. K. Saito

Director

Mr. Davinder Singh Brar

Independent Director

Mr. Rajinder Pal Singh

Independent Director

Ms. Pallavi Shroff

Independent Director

Ms. Renu Sud Karnad

Independent Director

Mr. Ajay Seth

Chief Financial Officer

Mr. S. Ravi Aiyar

Company Secretary (till February 28, 2018) Mr. Sanjeev Grover

Company Secretary (w.e.f. March 21, 2018)

Late Mr. Amal Ganguli (till May 7, 2017)

Independent Director

1. Operating Lease Arrangements

The Company as a Lessee Leasing arrangements

The Company has entered into operating lease arrangements for various land and premises. These arrangements are both cancellable and non-cancellable in nature and range between three to fifteen years. Lease rental income earned by the Company is set out in Note 22 as âRental incomeâ. The future minimum lease receivables under non-cancellable operating leases are as under:

2. Export Promotion Capital Goods (EPCG)

The benefits (saving of custom duty) obtained from government has been treated as a Government Grant, which has been accounted for as deferred benefit under other current liabilities in note no 19 and recognized as a cost of property, plant and equipment. As per the EPCG scheme, the Company has an export obligation equivalent to 6 times of duty saved. The deferred benefit accounted for, shall be credited to statement of profit and loss on a pro-rata basis as and when the export obligation is fulfilled.

*Refer Note-40.3

(vii) In earlier years, pursuant to Court orders, the Haryana State Industrial & Infrastructure Development Corporation Limited (""HSIIDC"") had raised demands on the company amounting to '' 10,317 million towards payment of enhanced compensation to landowners for the Companyâs freehold land at Manesar, Haryana. During the year HSIIDC has revised the demands to '' 9,717 million after adjusting '' 3,742 million paid by the Company under protest in earlier years.

Against the above demands and pursuant to a scheme notified by HSIIDC (for all allottees) to clear outstanding dues of enhanced compensation in one-go (with partial relief in interest), the Company during the current period cleared the above demands by paying Rs, 9,234 million. This includes principal amounting to Rs, 5,949 million and interest of Rs, 3,285 million (Rs, 2,507 million, has been provided for during the current year) which has been debited towards cost of land and charged off to the statement of profit and loss respectively.

(viii) In respect of disputed Local Area Development Tax (LADT) (upto April 15, 2008) / Entry Tax, the amounts under dispute are Rs, 21 million (as at 31.03.2017: Rs, 21 million) for LADT and Rs, 20 million (as at 31.03.2017: Rs, 19 million) for Entry Tax. The State Government of Haryana has repealed the LADT effective from April 16, 2008 and introduced the Haryana Tax on Entry of Goods into Local Area Act, 2008 with effect from the same date.

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

3. Excise Duty

Consequent to the introduction of Goods and Services Tax (GST) with effect from July 01, 2017; Central Excise, Value Added Tax (VAT) etc. have been subsumed into GST. In accordance with Ind AS - 18 on Revenue Recognition and Schedule III of the Companies Act, 2013, unlike Excise Duty, levies like GST, VAT etc. are not part of revenue. Accordingly, the figure for the period ending Mar 18 is not comparable with period ending Mar 17. The following additional information is being provided to facilitate such understanding:

4. Scheme of Amalgamation

40.1The Scheme of Amalgamation (''the Scheme'') between the Company (Amalgamated Company) and its seven wholly owned subsidiaries (Amalgamating Companies), by the name Maruti Insurance Business Agency Limited, Maruti Insurance Distribution Services Limited, Maruti Insurance Agency Network Limited, Maruti Insurance Agency Solutions Limited, Maruti Insurance

Agency Services Limited, Maruti Insurance Agency Logistics Limited and Maruti Insurance Broker Limited as approved by the National Company Law Tribunal became effective w.e.f. the appointed date, i.e., April 1, 2016 on completion of all required formalities on July 11, 2017.The Scheme envisages transfer of all properties, rights, powers, liabilities and duties of the Amalgamating Companies to the Amalgamated Company.

5 Pu rsuant to the Scheme, the amalgamation has been accounted in accordance with the Ind AS 103 âBusiness Combinations and the assets, liabilities and reserves of the Amalgamating Companies have been accounted for at their book value, in the books of the Amalgamated Company. The share capital of the Amalgamating Companies have been cancelled with the Amalgamated Companyâs investment in the Amalgamating Companies. The net assets and reserves taken over as at April 1, 2016 amounted to '' 2,489 million and '' 2,475 million respectively.

6. Previous year figures have been restated to give effect to amalgamation as mentioned above.

7. The Company entered into a âContract Manufacturing Agreementâ (CMA) with Suzuki Motor Gujarat Private Limited (SMG), a fellow subsidiary of Suzuki Motor Corporation (SMC) on December 17, 2015 for a period of 15 years which automatically extends for a further period of 15 years, unless terminated by mutual agreement. SMG during the term of this agreement, shall manufacture and supply vehicles on an exclusive basis to MSIL in accordance with the terms of the CMA . Accordingly, expenses recorded during the year includes '' 2,921 million (previous year '' 396 million) towards the lease of specific Property, Plant & Equipment.

Mar 31, 2017

1 General Information

Maruti Suzuki India Limited (âThe Companyâ) is a public limited company incorporated and domiciled in India, listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The address of its registered office is #1, Nelson Mandela Road, Vasant Kunj, New Delhi - 110070. The Company is a subsidiary of Suzuki Motor Corporation, Japan. The principal activities of the Company are manufacturing, purchase and sale of motor vehicles, components and spare parts. The other activities of the Company comprise facilitation of pre-owned car sales, fleet management and car financing.

2 Applicability of New and Revised Ind AS

Ind AS 7 has been amended in March 2017 to require an entity to enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. The Company is evaluating the requirements of the amendment and its effect on the financial statements.

Further, the amendment to Ind AS 102 provides guidance to measurement of cash settled, modification of cash settled awards and awards that include a net settlement feature in respect of witholding taxes. This amendment is not applicable to the Company.

3.1 Notes on property, plant and equipment

1 Immovable properties having carrying value of Rs.27 million (as at 31.03.16 Rs.14 million; as at 01.04.15 Rs.14 million) are not yet registered in the name of the Company.

2 Plant and Machinery includes a Gas Turbine jointly owned by the Company with its group companies and other companies (prorata cost amounting to Rs.374 million, carrying amount as at 31st March 2017 Nil (as at 31.03.16 Nil; deemed cost as at 01.04.15 Nil).

3 A part of freehold land of the Company situated at Gurgaon, Manesar and Gujarat has been made available to its group companies / fellow subsidiary.

4 Based on technical evaluation and market considerations, the Company has, with effect from 1st April 2016, revised the estimated useful life of dies & jigs, included in plant and machinery, from 4 years to 5 years. This has resulted in depreciation expense for the current year being lower by Rs.2,411 million.

* Adjustment includes the intra-head re-grouping of amounts.

4.1 Notes on intangible assets

1 Based on technical evaluation and market considerations, the Company has, with effect from 1st April 2016, revised the estimated useful life of intangible asset from 4 years to 5 years. This has resulted in amortisation expense for the current year being lower by Rs.307 million.

5.1 The credit period generally allowed on domestic sales varies from 30 to 45 days (excluding transit period). The credit period on export sales varies on case to case basis, based on market conditions.

The cost of inventories recognised as an expense during the year in respect of continuing operations was Rs.525,920 million (previous year Rs.446,734 million)

The cost of inventories recognised as an expense includes Rs.29 million (previous year Rs.33 million) in respect of write-downs of inventory to net realisable value.

The mode of valuation of inventories has been stated in note 2.14.

6.1 Rights, preference and restriction attached to shares

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

6.2 Shares allotted as fully paid up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceding 31st March 2017)

13,170,000 equity shares of Rs.5 each have been allotted as fully paid up during Financial Year 2012-13 to Suzuki Motor Corporation pursuant to the Companyâs scheme of amalgamation with erstwhile Suzuki Powertrain India Limited.

The general reserve is created from time to time on transfer of profits from retained earnings. General reserve is created by transfer from one component of equity to another and is not an item of other comprehensive income, items included in general reserve will not be reclassified subsequently to profit and loss.

During the year Nil (previous year : Rs.4,571 million) has been transferred to general reserves from retained earning.

This reserve is created on the basis of the scheme of amalgamation of erstwhile Suzuki Powertrain India Limited (SPIL) with the Company as approved by the High Court of Delhi in the year ended 31st March 2013.

During the year, a dividend of Rs.35 per share, total dividend Rs.10,573 million (previous year : Rs.25 per share, total dividend Rs.7,552 million) was paid to equity shareholders.

The Board of Directors recommended a final dividend of Rs.75 per share (nominal value of Rs.5 per share) for the financial year 2016-17. This dividend is subject to approval by the shareholders at the Annual General Meeting and has not been accounted as liability in these financial statements. The total estimated dividend to be paid is Rs.27,268 million including dividend distribution tax of Rs.4,612 million.

* net of income tax of Rs.58 million (previous year Rs.38 million)

This reserves represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, net of amount reclassified to retained earnings when those assets have been disposed of.

The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising on changes in fair value of the designated portion of the hedging instruments that are recognised and accumulated under the heading of cash flow hedging reserve will be reclassified to profit or loss only when the hedged transaction affects the profit or loss, or included as a basis adjustment to the non-financial hedging item.

7.1 Summary of borrowing arrangements

1. Loans from banks include:

Loan amounting to Rs.Nil (USD Nil) (as at 31.03.16: Rs.921 million (USD 13.90 million); as at 01.04.15: Rs.1,738 million (USD 27.80 million)) taken from Japan Bank of International Cooperation (JBIC) at an interest rate of LIBOR 0.125%, repayable in 2 half yearly instalments (acquired pursuant to a scheme of amalgamation). The entire outstanding amount of Rs.921 million as at 31.03.2016 (as at 01.04.15: Rs.869 million) repayable within one year has been transferred to current maturities of long term debts. The repayment of the loan was guaranteed by Suzuki Motor Corporation, Japan (the holding company). The last instalment of Rs.921 million was paid during the year.

Loan amounting to Rs.Nil (as at 31.03.16: Rs.Nil; as at 01.04.15: Rs.1,906 million) (USD 30 million) taken from banks at an average interest rate of LIBOR 1.375% and repaid in July 2015.

2. A loan amounting to Rs.Nil (USD Nil) (as at 31.03.2016: Rs.614 million (USD 9.27 million), as at 01.04.2015: Rs.1,158 million (USD 18.53 million)) taken from the holding company at an interest rate of LIBOR 0.48%, repayable in 2 half yearly instalments (acquired pursuant to a scheme of amalgamation). The entire outstanding amount of Rs.614 million as at 31.03.2016 (as at 01.04.2015: Rs.579 Million) repayable within one year has been transferred to current maturities of long term debts. The last instalment of Rs.614 million was paid during the year.

3. Loan repayable on demand from banks (Cash credit and Overdraft) amounting to Rs.4,836 million (as at 31.03.16: Rs.774 million; as at 01.04.15: Rs.354 million) at an interest rate of 7.25% to 10.50%, repayable within 0-5 days.

7.2 Breach of loan agreement

There have been no breach of covenants mentioned in the loan agreements during the reporting periods.

Provisions for employee benefits

The provision for employee benefits include compensated absences and retirement allowance.

Provision for warranty and product recall

Provision for litigation / disputes

In the ordinary course of business, the Company faces claims by various parties. The Company assesses such claims and monitors the legal environment on an ongoing basis, with the assistance of external legal counsel, wherever necessary. The Company records a liability for any claims where a potential loss probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the Company provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable (also refer to note 38).

8 Segment Information

The Board of Directors of the Company, which has been identified as being the chief operating decision maker (CODM), evaluates the Companyâs performance, allocate resources based on the analysis of the various performance indicator of the Company as a single unit. Therefore there is no reportable segment for the Company.

9 Employee Benefit Plans

The various benefits provided to employees by the Company are as under:

A. Defined contribution plans

a) Superannuation fund

b) Post employment medical assistance scheme

c) Employers contribution to Employee State Insurance

d) Employers contribution to Employeeâs Pension Scheme 1995

B. Defined benefit plans and other long term benefits

a) Contribution to Gratuity Funds - Employeeâs Gratuity Fund

b) Leave encashment / compensated absence

c) Retirement allowance

d) Provident fund

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment risk

The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Interest risk

Longevity risk

Salary risk

The average duration of the defined benefit obligation of gratuity fund at 31.03.17 is 12 years (as at 31.03.16: 12 years; as at 01.04.15: 12 years).

The group expects to make a contribution of Rs.160 million (as at 31.03.16: Rs.125 million; as at 01.04.15: Rs.150 million) to the defined benefit plans during the next financial year.

Sensitivity analysis

If the discount rate increases (decreases) by 1%, the defined benefit obligation would decrease by Rs.410 million (increase by Rs.485 million) (as at 31.03.16: decrease by Rs.313 million (increase by Rs.368 million)) (as at 01.04.15: decrease by Rs.269 million (increase by Rs.317 million)).

If the expected salary growth rate increases (decreases) by 1%, the defined benefit obligation would increase by Rs.436 million (decrease by Rs.363 million) (as at 31.03.16: increase by Rs.315 million (decrease by Rs.259 million)) (as at 01.04.15: increase by Rs.270 million (decrease by Rs.222 million)).

If the attrition rate increases (decreases) by 50%, the defined benefit obligation would increase by Rs.20 million (decrease by Rs.21 million) (as at 31.03.16: increase by Rs.19 million (decrease by Rs.20 million)) (as at 01.04.15: increase by Rs.16 million (decrease by Rs.17 million)).

If the mortality rate increases (decreases) by 10%, the defined benefit obligation would increase by Rs.5 million (decrease by Rs.5 million) (as at 31.03.16: increase by Rs.4 million (decrease by Rs.4 million)) (as at 01.0415: increase by Rs.4 million (decrease by Rs.4 million)).

Quoted equity investments: Fair value is derived from quoted market prices in active markets.

9.1 Financial risk management

(A) Credit risk

Other than financial assets mentioned above, none of the Companyâs financial assets are either impaired or past due, and there were no indications that defaults in payment obligations would occur.

(B) Liquidity risk

The Company operates with a low Debt Equity ratio. The company raises short term rupee borrowings for cash flow mismatches and hence carries no significant liquidity risk. The Company has access to the borrowing facilities of Rs.28,450 million as at 31.03.2017 (Rs.29,650 million as at 31.03.2016 and Rs.28,880 million as at 01.04.2015) to honour any liquidity requirements arising for business needs. The Company has large investments in debt mutual funds which can be redeemed on a very short notice and hence carries negligible liquidity risk.

(i) Maturities of financial liabilities

The tables below analyse the Companyâs financial liabilities into relevant maturity groupings based on their contractual maturities:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(i) Foreign currency risk

a) forward foreign exchange and options contracts for foreign currency risk mitigation

b) foreign currency interest rate swaps to mitigate foreign currency & interest rate risk on foreign currency loan.

Foreign currency sensitivity analysis

The Company is mainly exposed to JPY, USD and EURO

(ii) Interest rate risk

The Company had External Commercial Borrowing post merger with erstwhile Suzuki Powertrain India Limited in FY13. The interest rate risk had been mitigated through use of floating to floating Cross Currency Interest Rate Swap derivative (LIBOR to MIOIS) taken at the time of inception of the borrowing. Outstanding USD /INR floating rate cross currency swap as at 31st March 2017 is Nil (as at 31st March 2016 : USD 23.17 million; as at 1st April 2015 : USD 46.33 million).

(iii) Security price risk Exposure in equity

The Company is exposed to equity price risks arising from equity investments held by the Company and classified in the balance sheet as fair value through OCI.

Equity price sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of the reporting period.

If the equity prices had been 5% higher / lower:

Other comprehensive income for the year ended 31st March 2017 would increase / decrease by Rs.365 million (for the year ended 31st March 2016: increase / decrease by Rs.247 million) as a result of the change in fair value of equity investment measured at FVTOCI

Exposure in mutual funds

The Company manages the surplus funds majorly through investments in debt based mutual fund schemes. The price of investment in these mutual fund schemes is reflected though

Net Asset Value (NAV) decleared by the Asset Management Company on daily basis as reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investments.

Mutual fund price sensitivity analysis

The sensitivity analysis below have been determined based on Mutual Fund Investment at the end of the reporting period.

If NAV has been 1% higher / lower:

Profit for year ended 31.03.2017 would increase / decrease by Rs.2,737 million (for the year ended 31.03.2016 by Rs.1,930 million as a result of the changes in fair value of mutual fund investments

9.2 Capital management

The Companyâs objectives when managing capital are to:

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company has large investments in debt mutual fund schemes wherein underlying portfolio is spread across securities issued by different issuers having different credit ratings. The credit risk of investments in debt mutual fund schemes is managed through investment policies and guidelines requiring adherence to stringent credit control norms based on external credit ratings. The credit quality of the entire portfolio investments is monitored through independent external evaluation of CRISIL Limited on a quarterly basis.

9.3 Foreign exchange derivative contracts

10 Related Party Transactions

10.1 Description of related parties

Holding Company

Suzuki Motor Corporation

Subsidiaries

Maruti Insurance Agency Services Limited Maruti Insurance Agency Logistics Limited Maruti Insurance Distribution Services Limited Maruti Insurance Agency Network Limited Maruti Insurance Agency Solutions Limited True Value Solutions Limited Maruti Insurance Business Agency Limited Maruti Insurance Broker Limited J.J. Impex (Delhi) Private Limited

Key Management Personnel

Mr R. C. Bharagava

Mr. Kenichi Ayukawa

Mr. K. Ayabe

Mr. K. Saito

Mr. T. Suzuki

Mr. O. Suzuki

Mr. Toshiaki Hasuike

Mr. Shigetoshi Torii

Mr. Amal Ganguli

Mr. Davinder Singh Brar

Mr. Rajinder Pal Singh

Ms. Pallavi Shroff

Mr. Ajay Seth

Mr. S. Ravi Aiyar

Joint Ventures

Magneti Marelli Powertrain India Private Limited Plastic Omnium Auto Inergy Manufacturing India Private Limited (Formerly known as Inergy Automotive Systems Manufacturing India Private Limited)

Associates

Bharat Seats Limited

Caparo Maruti Limited

Jay Bharat Maruti Limited

Krishna Maruti Limited

Machino Plastics Limited

SKH Metals Limited

Nippon Thermostat (India) Limited

Bellsonica Auto Component India Private Limited

Mark Exhaust Systems Limited

FMI Automotive Components Private Limited

Krishna Ishizaki Auto Limited

Maruti Insurance Broking Private Limited

Manesar Steel Processing India Private Limited

Hanon Climate Systems India Private Limited

(Formerly Halla Visteon Climate Systems India Private Limited)

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

Suzuki Myanmar Motor Co. Limited

Cambodia Suzuki Motor Co. Limited

Magyar Suzuki Coproration

Pak Suzuki Motor Co. Limited

PT Suzuki IndoMobil Motor

(Formerly PT IndoMobil Suzuki International)

Suzuki (Myanmar) Motor Co. Limited Suzuki Assemblers Malaysia Sdn Bhd Suzuki Australia Pty Limited Suzuki Austria Automobile Handels GmbH Suzuki Auto South Africa(Pty) Limited Suzuki France S.A.S.

Suzuki Gb Plc

Suzuki International Europe GmbH Suzuki Italia Spa

Suzuki Malaysia Automobile Sdn Bhd Suzuki Motor (Thailand) Co. Limited Suzuki Motor de Mexico, SA de CV Suzuki Motor Gujarat Private Limited Suzuki Motor Iberica S.A.U.

Suzuki Motor Sp Z.O.O.

(Formerly Suzuki Motor Poland Limited)

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

Taiwan Suzuki Automobile Corporation Thai Suzuki Motor Co. Limited

Operating Lease Arrangements

The Company as a Lessee Leasing arrangements

The Company has entered into operating lease arrangements for various lands. These arrangements are non-cancellable in nature and range between fifteen to ninty nine years. Lease rental expense is set out in note 28 as âRentâ in âOther expensesâ. The future minimum lease commitments under non-cancellable operating leases are as under:

The Company as a Lessor

Leasing arrangements

The Company has entered into operating lease arrangements for various lands and premises. These arrangements are both cancellable and non-cancellable in nature and range between three to fifteen years. Lease rental income earned by the Company is set out in Note 22 as âRental incomeâ. The future minimum lease receivables under non-cancellable operating leases are as under:

11 Commitments Under Letter of Credit

Outstanding commitments under Letters of Credit established by the Company aggregate Rs.1,348 million (as at 31.03.2016: Rs.1,671 million, as at 01.04.2015: Rs.2,029 million)

12 Capital Commitment

Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amounting to Rs.27,682 million (as at 31.03.2016: Rs.30,387 million, as at 01.04.2015: Rs.20,295 million).

13 Contingent Liabilities

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

(i) In earlier years, pursuant to Court orders, the Haryana State Industrial & Infrastructure Development Corporation Limited (âHSIIDCâ) had raised demands amounting to Rs.10,317 million towards enhanced compensation to landowners for the Companyâs freehold land at Manesar, Haryana. Against this, the Company has made a payment of Rs.3,742 million under protest and capitalised it as part of the cost of land. In previous year, the Punjab & Haryana High Court (âHigh Courtâ) set aside the above orders and referred the matter back to the District Court, Gurgaon for fresh adjudication. An appeal was preferred by the land owners against the order of the High Court in the Supreme Court. The Supreme Court has set aside the order of the High Court and has remanded the case back to the High Court for fresh adjudication.

(ii) In respect of disputed Local Area Development Tax (LADT) (upto April 15, 2008) / Entry Tax. The amounts under dispute are Rs.21 million (as at 31.03.2016: Rs.21 million, as at 01.04.2015: Rs.21 million) for LADT and Rs.19 million (as at 31.03.2016: Rs.19 million, as at 01.04.2015: Rs.18 million) for Entry Tax. The State Government of Haryana has repealed the LADT effective from April 16, 2008 and introduced the Haryana Tax on Entry of Goods into Local Area Act, 2008 with effect from the same date.

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

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

14 The Company was granted sales tax benefit in accordance with the provisions of Rule 28C of Haryana General Sales Tax Rules, 1975 for the period from 1st August, 2001 to 31st July, 2015. The ceiling amount of concession to be availed of during the entitlement period is Rs.5,644 million. Till 31st March 2017, the Company has availed of / claimed sales tax benefit amounting to Rs.2,884 million (till 31.03.2016: Rs.2,884 million, till 01.04.2015: Rs.2,626 million).

15 The Board of Directors, in its meeting held on 27th October, 2015 had approved a Scheme of Amalgamation (the âSchemeâ) under Sections 391 to 394 of the Companies Act, 1956 (âthe 1956 Actâ) and other applicable provisions of the 1956 Act and the applicable provisions of the Companies Act, 2013, as per pooling of interest method, between the Company and its seven wholly owned subsidiaries which were authorised to engage in the business of acting as insurance intermediaries, by the name of Maruti Insurance Business Agency Limited, Maruti Insurance Distribution Services Limited, Maruti Insurance Agency Network Limited, Maruti Insurance Agency Solutions Limited, Maruti Insurance Agency Services Limited, Maruti Insurance Agency Logistics Limited and Maruti Insurance Broker Limited. The amalgamation is not expected to have a material impact.

The amalgamation will be effective from April 1, 2016 being the appointed date and is subject to approval of National Company Law Tribunal (NCLT).

16 The Company entered into a âContract Manufacturing Agreementâ (CMA) with Suzuki Motor Gujarat Private Limited (SMG), a fellow subsidiary of Suzuki Motor Corporation (SMC) on 17th December, 2015. The terms of the CMA provide for the following:

i. The CMA shall continue for a period of 15 years and automatically extend for a further period of 15 years at the end of the initial period without any further action or documentation on the part of either party, unless terminated by the parties by mutual agreement. After the expiry of an aggregate period of 30 years MSIL and SMG may mutually discuss and agree to extend the period of the CMA.

ii. MSIL will provide SMG with land (on lease) to set up the production facility. The initial lease period of this land is 15 years which will be automatically extended for a further period of 15 years unless terminated by the parties by mutual agreement.

iii. SMG shall, during the term of this agreement, manufacture the products and supply the same on an exclusive basis to MSIL in accordance with other terms and conditions in the CMA. The sales price shall be determined by mutual consent on the basis that SMG does not have any profits or losses at the end of any financial year other than any non-operating income accrued to SMG.

The Company has evaluated this arrangement with respect to the guidance given under Appendix C of Ind AS 17 âDetermining Whether an Arrangement Contains a Leaseâ and has classified this arrangement as an operating lease. The lease charge arising out of this arrangement has been included under the purchase of stock-in-trade.

17 First Time Adoption of Ind AS

These are the Companyâs first financial statements prepared in accordance with Ind AS.

The effect of the Companyâs transition to Ind AS is summarised in the following notes:

(i) Transition elections

(ii) Reconciliation of equity, total comprehensive income and cash flows as reported as per Ind AS, in this statement with as reported in previous years as per previous Indian GAAP

17.1 Transition elections

The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2015 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to the certain exception and certain optional exemptions availed by the Company. The Company has applied the following transition exemptions apart from mandatory exceptions in Ind-AS 101 :

1. Deemed cost of property, plant and equipment and other intangible assets

2. Leases

3. Investments in subsidiaries, joint controlled entities and associates in separate financial statements

4. Designation of equity investments at FVTOCI.

Deemed cost of property, plant and equipment and other intangible assets

In accordance with Ind-AS transitional provisions, the Company opted to consider previous GAAP carrying value of property, plant and equipment and other intangible assets as deemed cost on transition date.

Leases

In accordance with Ind-AS transitional provisions, the company opted to determine whether an arrangement existing at the date of transition contains a lease on the basis of facts and circumstances existing at the date of transition rather than at the inception of the arrangement.

Investments in subsidiaries, joint controlled entities and associates in separate financial statements

In accordance with Ind-AS transitional provisions, the company opted to consider previous GAAP carrying value of investments as deemed cost on transition date for investments in subsidiaries, joint ventures and associates in separate financial statement.

Designation of equity investments at FVTOCI

Ind AS 101 allows an entity to designate previously recognised financial instruments basis the facts and circumstances that existed as on transition date. The Company has elected to designate equity investments in Asahi India Glass Limited, Sona Koyo Steering Systems Limited and Denso India Private Limited at FVTOCI on the basis of the facts and circumstances at the date of transition to Ind AS.

17.2 Reconciliation of equity, total comprehensive income and cash flows as reported as per Ind AS, in this statement with as reported in previous years as per previous Indian GAAP Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following table represents the reconciliation from previous GAAP to Ind AS.

Note 1 : Investment in debt mutual funds and equity instruments

Under the previous GAAP, investment in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and readability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value.

Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments designated as at FVTOCI) have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31st March 2016. For equity instruments designated at FVTOCI resulting fair value gains and losses have been recognised in other comprehensive income.

Note 2 : Deferment of service income

Income from services including the associated selling cost is deferred over the respective years to which they pertain. Such income is recognised on straight line basis over the warranty period and the associated service claim cost is recognised as an when incurred. No provision is recognised for such cost.

Note 3 : Proposed dividend and related distribution tax

Under the previous GAAP, dividend proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend and related corporate dividend tax were recognised as a liability. Under Ind AS, such dividends and related corporate dividend tax are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend as at 1st April 2015 and 31st March 2016 included under provisions as per previous GAAP have been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by the amount of proposed dividend and related corporate dividend tax.

Note 4 : Actuarial gain / loss on defined benefit plans

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. There is no impact on the total equity.

Note 5 : Gains / losses on cash flow hedges

Under Ind AS, effective portion of fair value gains and losses of hedging instruments designated in a cash flow hedge relationship is recognised in other comprehensive income and taken to FVTOCI reserve in equity, whereas under previous GAAP there was no such concept of other comprehensive income and all such gains and losses were directly recognised in cash flow hedge reserves in equity.

Note 6 : Deferred tax adjustments

Deferred tax have been recognised on the adjustments made on transition to Ind AS. Also deferred tax is recognised on brought forward capital losses and cash flow hedge reserve recognised earlier in books on which no deferred tax was created under previous GAAP.

18 The financial statements were approved by the Board of Directors and authorised for issue on 27th April 2017.

Mar 31, 2015

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

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

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

2. Foreign currency loans from banks include:

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

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

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

4. CONTINGENT LIABILITIES

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

As at As at Particulars 31.03.2015 31.03.2014

(i) Excise Duty

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

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

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

Total 32,376 26,795

Amount deposited under protest 383 361

(ii) Service Tax

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

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

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

Total 5,480 5,862

Amount deposited under protest 19 10

(iii) Income Tax

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

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

Total 27,858 20,308

Amount deposited under protest 7,140 7,140

(iv) Custom Duty

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

(b) Others 32 20

Total 135 138

Amount deposited under protest 22 22

(v) Sales Tax

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

Company has filed appeals Amount deposited under protest 2 2

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

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

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

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

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

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

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

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

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

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

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

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

10. Derivative Instruments outstanding at the Balance Sheet date:

1 (a) Forward Contracts against imports and royalty:

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

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

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

(b) Forward Contracts against exports:

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

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

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

11. STATEMENT OF TRANSACTIONS WITH RELATED PARTIES

Holding Company

Suzuki Motor Corporation

Joint Ventures

Mark Exhaust Systems Limited

BeUsonica Auto Component India Private Limited

FMI Automotive Components Private Limited

Krishna Ishizaki Auto Limited

Inergy Automotive Systems Manufacturing India Private Limited

Maruti Insurance Broking Private Limited

Manesar Steel Processing India Private Limited

Subsidiaries

Maruti Insurance Agency Services Limited

Maruti Insurance Agency Logistics Limited

Maruti Insurance Distribution Services Limited

Maruti Insurance Agency Network Limited

Maruti Insurance Agency Solutions Limited

True Value Solutions Limited

Maruti Insurance Business Agency India Limited

Maruti Insurance Broker Limited

J.J. Impex (Delhi) Private Limited

Key Management Personnel

Mr. Kenichi Ayukawa

Mr. Toshiaki Hasuike

Mr. Kazuhiko Ayabe

Mr. Masayuki Kamiya (upto July 30, 2014)

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

Mr. Tsuneo Ohashi

Mr. Keiichi Asai

Associates

Asahi India Glass Limited

Bharat Seats Limited

Caparo Maruti Limited

Halla Visteon Climate Systems India Limited

Denso India Limited

Jay Bharat Maruti Limited

Krishna Maruti Limited

Machino Plastics Limited

SKH Metals Limited

Nippon Thermostat (India) Limited

Sona Koyo Steering Systems Limited

Magneti Marelli Powertrain India Private Limited

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

Suzuki Italia S.P.A.

Suzuki Motor Gujarat Private Limited Magyar Suzuki Corporation Ltd.

Pak Suzuki Motor Co., Ltd.

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

Suzuki Australia Pty. Ltd.

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

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

Suzuki France S.A.S.

Suzuki GB PLC

Suzuki International Europe G.m.b.H.

Suzuki Motor (Thailand) Co., Ltd.

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

Suzuki Motor Iberica, S.A.U.

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

Suzuki Motorcycle India Ltd.

Suzuki New Zealand Ltd.

Suzuki Philippines Inc.

Taiwan Suzuki Automobile Corporation

Thai Suzuki Motor Co., Ltd.

Vietnam Suzuki Corporation

Mar 31, 2014

1. CONTINGENT LIABILITIES:

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

As at As at Particulars 31.03.2014 31.03.2013

(i) Excise Duty

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

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

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

Total 26,795 22,055

Amount deposited under protest 361 361

(ii) Service Tax

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

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

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

Total 5,862 7,982

Amount deposited under protest 10 3

(iii) Income Tax

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

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

Total 20,308 17,976

Amount deposited under protest 7,140 6,770

(iv) Customs Duty

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

Others 20 10

Total 138 128

Amount deposited under protest 22 22

(v) Sales Tax

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

Amount deposited under protest 2 2

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(d) Forward Contracts against buyers credit :

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

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

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

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

Mar 31, 2013

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(d) Forward Contracts against Buyers Credit :

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

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

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

8. STATEMENT OF TRANSACTIONS WITH RELATED PARTIES

Holding Company

Suzuki Motor Corporation Joint Ventures

Mark Exhaust Systems Limited

BeLLsonica Auto Component India Private Limited

FMI Automotive Components Limited

Krishna Auto Mirrors Limited

Inergy India Automotive Components Limited

Maruti Insurance Broking Private Limited

Manesar Steel Processing India Private Limited

Subsidiaries

Maruti Insurance Agency Services Limited

Maruti Insurance Agency Logistics Limited

Maruti Insurance Distribution Services Limited

Maruti Insurance Agency Network Limited

Maruti Insurance Agency Solutions Limited

True Value Solutions Limited

Maruti Insurance Business Agency India Limited

Maruti Insurance Broker Limited

JJ. Impex (Delhi) Private Limited **

Key Management Personnel

Mr Shinzo Nakanishi

Mr.Shuji Oishi (upto 28th April 2012)

Mr Tsuneo Ohashi Mr Keiichi Asai

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

Asa hi India Glass Limited

Bharat Seats Limited

Caparo Maruti Limited

Climate Systems India Limited

Denso India Limited

Jay Bharat Maruti Limited

Krishna Maruti Limited

Machino Plastics Limited

SKH Metals Limited

Nippon Thermostat (India) Limited

Sona Koyo Steering Systems Limited

Magneti Marelli Powertrain India Private Limited

Suzuki Powertrain India Limited*

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

Jinan Oingqi Suzuki Motorcycle Co., Limited

Magyar Suzuki Corporation Limited

PT Suzuki indomobil Motor (Former PT Indomobil Suzuki International)

Suzuki Australia Pty. Limited

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

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

Suzuki GB PLC

Suzuki International Europe G.m.b.H.

Suzuki Italia S.P.A.

Suzuki Motor (Thailand) Co., Limited

Suzuki Motor lberica,S.A.U.

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

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

Taiwan Suzuki Automobile Corporation

Mar 31, 2012

Rights, preferences and restriction attached to shares

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

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

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

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

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

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

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

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

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

c. Defined Benefit Plans and other Long Term Benefits

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

b) Leave Encashment/ Compensated Absence.

c) Retirement Allowance

d) Provident Fund

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

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

1. CONTINGENT LIABILITIES:

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

As at As at 31.03.2012 31.03.2011

(i) Excise Duty

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

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

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

TOTAL 17,559 13,629

Amount deposited under protest 3 3

(ii) Service Tax

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

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

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

TOTAL 5,430 6,480

Amount deposited under protest 3 2

(iii) Income Tax

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

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

TOTAL 15,929 12,493

Amount deposited under protest 6,135 4,178

(iv) Customs Duty

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

Amount deposited under protest 22 22

(v) Sales Tax

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

Amount deposited under protest 2 2

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

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

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

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

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

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

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

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

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

Notes:-

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

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

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

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

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

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

Notes:

* Licensed Capacity is not applicable from 1993-94.

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

Notes :

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

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

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

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

5. Previous year figures are in brackets.

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

7. derivative INSTRUMENTS outstanding AT THE balance SHEET DATE:

1 (a) Forward Contracts:

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

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

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

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

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

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

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

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

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

(d) Forward Contracts against Buyers Credit :

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

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

Mar 31, 2010

1) Contingent Liabilities:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

a) Superannuation Fund

b) Post Employment Medical Assistance Scheme

c) Provident Fund

9) STATEMENT OF TRANSACTIONS WITH RELATED PARTIES

Holding Company

Suzuki Motor Corporation Joint Ventures

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

Subsidiaries

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

Key Management Personnel

MrShinzo Nakanishi Mr Shuji Oishi MrTsuneoOhashi Mr Kehcht Asai

Associates

Asahi India Glass Limited

Bharat Seats Limited

Caparo Maruti Limited

Climate Systems India Limited

Denso india Limited

Jay Bharat Maruti Limited

Krishna Maruti Limited

Machine Plastics Limited

SKH Metals Limited

Nippon Thermostat (India) Limited

Sona Koyo Steering Systems Limited

Citicorp Maruti Finance Limited

Maruti Countrywide Auto Financial Services Limited

Magneti Marelli Powertraln india Pvt. Ltd.

Suzuki Powertrain india *

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

Suzuki international Europe G.m.b.H.

Suzuki Motor iberica, S.A.U.

Suzuki Italia S.P.A.

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

Suzuki France 5.A.S.

Magyar Suzuki Corporation Ltd.

Suzuki GB PLC

Suzuki Cars (Ireland) Ltd.

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

Suzuki Motorcycle India Private Ltd.

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

Suzuki Philippines Inc.

Suzuki Automobile (Thailand) Co. Ltd.

Suzuki Australia Pty. Ltd.

Suzuki New Zealand Ltd.

Suzuki Auto South Africa (Pty) Ltd.

Taiwan Suzuki Automobile Corporation

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

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