Dear Members,
 
 The directors have pleasure in presenting the 30th annual report
 together with the audited accounts for the year ended 31st March 2011.
 
 FINANCIAL RESULTS
 
 The Company’s performance during the year is summarised below:
 
                                              (Rs. in Million)
 
                                       2010-11         2009-10
 
 Gross total income                    375,224         301,232
 
 Profit before tax                      31,088          35,925
 
 Tax expense                             8,202          10,949
 
 Profit after tax                       22,886          24,976
 
 Balance brought forward               100,499          80,042
 
 Profit available for appropriation    123,385         105,018
 
 Appropriations:
 
 General reserve                         2,289           2,498
 
 Proposed dividend                       2,167           1,733
 
 Corporate dividend tax                    351             288
 
 Balance carried forward to balance 
 sheet                                 118,578         100,499
 
 FINANCIAL HIGHLIGHTS
 
 The gross revenue (net of excise) of the Company was Rs. 375,224 million
 as against Rs. 301,232 million in the previous year showing a growth of
 24.6 per cent. Sale of vehicles in the domestic market increased to
 1,132,739 units as compared to 870,790 units in the previous year
 showing a growth of 30.1 per cent. Total number of vehicles exported
 was 138,266 as compared to 147,575 last year.
 
 Earnings before interest, depreciation, tax and amortisation (EBIDTA)
 was Rs. 41,467 million against Rs. 44,510 million in the previous year.
 
 Profit before tax (PBT) was Rs. 31,088 million against Rs. 35,925 million
 in the previous year and profit after tax (PAT) stood at Rs. 22,886
 million against Rs. 24,976 million in the previous year.
 
 DIVIDEND
 
 The board recommends a dividend of Rs. 7.50 per equity share of Rs. 5 each
 for the year ended 31st March 2011 amounting to Rs. 2,167 million.
 
 CRISIL RATINGS
 
 The Company has been awarded the highest financial credit rating of
 AAA/stable (long term) and P1  (short term) on its bank facilities by
 CRISIL. The rating underscores the financial strength of the Company in
 terms of the highest safety with regard to timely fulfillment of its
 financial obligations.
 
 QUALITY
 
 The Company has again been awarded ISO:27001 certification by STQC
 Directorate (Standardisation, Testing and Quality Certificate),
 Ministry of Communications and Information Technology, Government of
 India after re-assessment. The Company is thus certified to meet
 international standards for maintaining information security.
 
 The Company’s plants at Gurgaon and Manesar are ISO:14001:2004
 certified. During the year, AIB-Vincotte International Ltd, Brussels,
 Belgium conducted surveillance audit and recommended continuation of
 the certification.
 
 The quality management system of the Company is certified against ISO
 9001:2008 standard. Re-assessment of the quality systems are done at
 regular intervals by an accredited third party agency.
 
 HIGHLIGHTS OF OPERATIONS
 
 The operations during the year are exhaustively discussed in the report
 on ‘Management Discussion and Analysis’ which forms part of this annual
 report.
 
 AWARDS/RECOGNITION HONOURED
 
   Business Standard India’s Company of the year 2011 award
 
   Ranked amongst the top 10 most admired companies by
 
 Wall Street Journal   11th time in a row, the Company ranked highest in
 JD
 
 Power Asia Pacific 2010 India Customer Service Index
 
 (CSI) study
 
   Ranked highest in JD Power Sales Satisfaction Index (SSI)
 
   NASSCOM and CNBC TV 18 IT user award
 
   CII/ITC Significant Achievement in Sustainability Award
 
   Mobile Marketing Association (MMA) Asia Pacific and the Global Awards
 for its digital campaign – ‘Sports Sponsorship goes mobile’. The
 Company is the first advertiser from India to win this award
 
   Ranked one in JD Power Initial Quality Study 2010 for its model -
 Dzire
 
   CNBC-TV18 award 2011 for Manufacturer of the year
 
   Autocar awards 2011
 
 z Compact car of the year 2011 –WagonR
 
 z Best variant of the year – Alto K10
 
   Corporate campaign ‘Kitna Deti Hai’ rated amongst the best campaigns
 of the year 2010 by CNBC-TV18’s program on advertising and marketing
 
   JD Power Automotive Performance Execution and Layout (APEAL) study -
 ‘Dzire’ was winner three times in a row
 
   Car of the year (COTY) award for ‘WagonR’ at entry level mini car
 category.
 
   NHRDN (National HRD Network) Trailblazer Award 2010 for HRD
 Excellence
 
   Car India
 
 z Best automobile manufacturer of the year 2010
 
 z “Hall of Fame” award for single handedly changing the face of Indian
 automobile industry
 
   Alto ranked no. 1 in TNS four-wheeler Total Customer Satisfaction
 (TCS) Study
 
 Mr. R. C. Bhargava, Chairman was also conferred with the Economic Times
 Lifetime Achievement Award for Corporate Excellence.
 
 SUBSIDIARY COMPANIES AND THEIR ACCOUNTS
 
 The Company’s subsidiaries - Maruti Insurance Business Agency Limited,
 Maruti Insurance Distribution Services Limited, Maruti Insurance Agency
 Solutions Limited, Maruti Insurance Agency Network Limited, Maruti
 Insurance Agency Services Limited and Maruti Insurance Agency Logistics
 Limited generated a total income of Rs. 457.7 million which includes
 dividend income of Rs. 22.2 million earned from investments in mutual
 funds. Profit before tax (PBT) was Rs. 199.9 million. During 2010-11,
 total 6.57 lac policies were issued.
 
 The Company’s subsidiary ‘True Value Solutions Limited’ has contributed
 towards smooth operations of business processes and supported the
 dealerships in enhancing the sale of certified pre-owned cars under the
 brand ‘Maruti True Value’. It has contributed significantly to the
 efforts of customer retention by facilitating re-purchase of new cars
 and has made significant contribution towards enhancing dealers’
 profitability.
 
 In terms of the general circular dated 8th February 2011 issued by
 Government of India, Ministry of Corporate Affairs, copy of the balance
 sheets, profit & loss accounts, reports of the board of directors and
 auditors of the subsidiary companies have not been attached with the
 balance sheet of the Company. Annual accounts of the subsidiary
 companies and the related detailed information shall be made available
 to shareholders of the Company and subsidiary companies seeking such
 information at any point of time. The annual accounts of the subsidiary
 companies shall also be available for inspection by any shareholder at
 the head office of the Company and of the subsidiary companies
 concerned.  Hard copy of details of accounts of subsidiaries shall be
 furnished to any shareholder on demand. Further, pursuant to Accounting
 Standard AS – 21 issued by the Institute of Chartered Accountants of
 India, consolidated financial statements presented by the Company
 include the financial information of its subsidiaries.
 
 HUMAN RESOURCE DEVELOPMENT
 
 The Company provides tremendous learning and development opportunities
 to its employees starting from induction. The Company truly believes
 that to have a sustainable competitive advantage in the new knowledge
 economy, learning would be the key catalyst for an organisation’s
 survival and success. The Company’s extensive training calendar covers
 all categories of employees i.e. associates, supervisors, junior,
 middle, senior and top management. To have a well rounded development
 of employees, the calendar comprises of behavioral training, functional
 training and safety training.
 
 In FY2010-11, total of 52,908 man-days of training was conducted for
 employees across all the levels. This translates to 6.14 days of
 training per employee. The training programmes vary according to the
 need of the employees at various levels and are designed after doing a
 detailed training need identification process.
 
 Functional and technical trainings form a major part of the Company’s
 annual training calendar as they are directly linked with employees on
 the job performance.  These trainings are imparted both by in-house
 subject matter experts as well as by external trainers. Some of the
 functional trainings imparted internally are 3G, 3K, 5S, PFMEA, QC
 tools. Functional trainings done by external trainers – finance for
 non-finance, six sigma, project management, inventory and warehouse
 management, Autocad and MS Excel.
 
 Behavioral trainings also form a chunk of the training calendar and
 include trainings like – negotiation skills, problem solving and
 decision making skills, presentation and communications skills,
 conflict management and resolution, assertiveness and self confidence,
 time management and multi tasking skills.
 
 A series of leadership training interventions have been carried out to
 further enhance and develop middle, senior and top management levels.
 Some of these are department heads training, department heads
 roundtable, divisional heads training, top management retreat, guest
 lecture series, training for divisional heads based on the gaps
 identified in the 360 degree process. The Company also has higher
 education schemes for its employees. It would help not only to groom
 and retain high potential young managers but also enable employees to
 fulfill their career enhancement aspirations. The scheme includes
 programs like – executive MBA full time and MBA part time. The scheme
 is applicable for assistant managers to managers and has eligibility
 and selection criteria.
 
 DIRECTORS
 
 Mr. Tsuneo Ohashi, Mr. Keiichi Asai and Mr. Amal Ganguli, directors of
 the Company, retire by rotation at the ensuing annual general meeting
 and being eligible, offer themselves for re-appointment. Mr. Shinzo
 Nakanishi was re-appointed as Managing Director & CEO for a further
 period of three years. Mr. Tsuneo Ohashi and Mr. Keiichi Asai were
 re-appointed as whole-time directors designated as Director & Managing
 Executive Officer (Production) and Director & Managing Executive
 officer (Engineering) respectively for a further period of three years.
 
 DIRECTORS’ RESPONSIBILITY STATEMENT
 
 As required under section 217(2AA) of the Companies Act, 1956, your
 directors confirm:
 
 a) that there were no material departures in the applicable accounting
 standards followed while preparing the annual accounts
 
 b) having selected such accounting policies and applied them
 consistently and made judgments and estimates that are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the Company at the end of the financial year and of the profit of the
 Company for that period
 
 c) having taken proper and sufficient care for the maintenance of
 adequate accounting records in accordance with the provisions of the
 Companies Act, 1956, for safeguarding the assets of the Company and for
 preventing and detecting fraud and other irregularities and
 
 d) having prepared the annual accounts on a going concern basis.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 A statement giving details of conservation of energy, technology
 absorption, foreign exchange earnings and outgo in accordance with the
 Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1988 is annexed as Annexure A.
 
 PERSONNEL
 
 As required by the provisions of section 217(2A) of the Companies Act,
 1956, read with the Companies (Particulars of Employees) Rules, 1975,
 as amended, the names and other particulars of the employees are set
 out in Annexure B to the Directors’ Report. However, as per the
 provisions of section 219(1)(b)(iv) of the Companies Act, 1956, the
 annual report is being sent to all the shareholders of the Company
 excluding the aforesaid information. Any shareholder interested in
 obtaining such particulars may write to the Company Secretary at the
 registered office of the Company.
 
 CONSOLIDATED FINANCIAL STATEMENTS
 
 In accordance with the Accounting Standard - 21 on Consolidated
 Financial Statements read with Accounting Standard – 23 on Accounting
 for Investments in Associates and Accounting Standard - 27 on Financial
 Reporting for interest in Joint Ventures, the audited consolidated
 financial statements are provided in the annual report.
 
 CORPORATE GOVERNANCE
 
 The Company has complied with the corporate governance requirements, as
 stipulated under clause 49 of the listing agreement and the stipulated
 certificate of compliance is contained in this annual report.
 
 AUDITORS
 
 The auditors, M/s Price Waterhouse, Firm Registration Number
 FRN301112E, Chartered Accountants, hold office until the conclusion of
 the ensuing annual general meeting and are recommended for
 re-appointment. A certificate from the auditors has been received to
 the effect that their re-appointment, if made, would be in accordance
 with section 224 (1B) of the Companies Act, 1956.
 
 COST AUDITORS
 
 In conformity with the directives of the Central Government, the
 Company has appointed M/s R. J. Goel & Co., cost accountants, as the
 cost auditors under section 233B of the Companies Act, 1956 for the
 audit of the cost accounts for the motor vehicles business for the year
 ending 31st March 2012. The due date of filing the cost audit report
 for the financial year 2009-10 was 30th September 2010.  This report
 was filed on 14th September 2010 with the Ministry of Corporate
 Affairs.
 
 ACKNOWLEDGMENT
 
 The board of directors would like to express its sincere thanks for the
 co-operation and advice received from the Government of India and the
 Haryana Government. Your directors also take this opportunity to place
 on record their gratitude for timely and valuable assistance and
 support received from Suzuki Motor Corporation, Japan.  The board also
 places on record its appreciation for the enthusiastic co-operation,
 hard work and dedication of all the employees of the Company including
 the Japanese staff, dealers, vendors, customers, business associates,
 auto finance companies, state government authorities and all concerned
 without which it would not have been possible to achieve all round
 progress and growth of the Company.  The directors are thankful to the
 shareholders for their continued patronage.
 
                        For and on behalf of the board of directors
 
                    Shinzo Nakanishi                  R.C. Bhargava
 
             Managing Director & CEO                       Chairman
 
 New Delhi
 31st May 2011