The Board of Directors of Maruti Suzuki India Limited today reviewed the Gujarat project in the context of the views and opinions expressed and took the following decisions:
- The entire capex for the Gujarat Sub would be funded by depreciation and equity brought in by Suzuki Motor Corporation;
- In the event that both parties mutually agree to terminate the contract manufacturing agreement, the facilities of the Gujarat Sub would be transferred to Maruti Suzuki India Limited at book value;
- Even though not required by law, the board decided, as a measure of good corporate governance, to seek minority shareholders’ approval as stipulated in Section 188 of the Companies Act 2013;
- The impact of any direct or indirect taxes on account of the contract manufacturing agreement would be assessed before finalizing the agreement; and
- As earlier stated, the Gujarat Sub would function on the basis that it would neither generate surpluses nor make losses.