Information on Gujarat Project

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    Information on Gujarat Project

    Mar 15, 2014
      Information on Gujarat Project
    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.