Suzuki 2002 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2002 Suzuki annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 44

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44

SUZUKI MOTOR CORPORATION
36
(b) In the application of the enactment of the Corporate Defined Benefit Pension Law, the Company and certain
domestic subsidiaries were given approval of exemption from payment obligation of benefit for future service
associated with the substitute component on April 18, 2002 for the Company and on April 23, 2002 for
domestic subsidiaries by Minister of Health, Labor and Welfare. And the Company and certain domestic
subsidiaries have a plan to recognize on the date of approval that the liabilities (projected benefit obligation or
PBO) associated with that component disappear from the Company's balance sheet, and the effect to the profit
and loss in the next fiscal term is expected to be 24,100 million yen.
(c) On May 15, 2002, following the approval of the Cabinet Committee on Disinvestment of India, the Company
signed with the Government of India the Revised Joint Venture Agreement covering a rights issue by their
joint venture, Maruti Udyog Limited (Maruti) and the public offer of Maruti's shares which the government
holds currently.
The Company gained majority of the outstanding shares of Maruti by undertaking the shares allotted to the
Indian government out of the rights issue by Maruti. Furthermore, the Company paid Rs. 10,000 million to the
government as a control premium in connection with the acquisition of control of Maruti.
Control premium is planned to be amortized in full in the following consolidation fiscal year ending March
2003.
Company profile of Maruti
Company name :Maruti Udyog Limited
Operation :Manufacturing and marketing of automobiles
Head office location :New Delhi, India
Representative :Jagdish Khattar
Capital :1,323 million Rupee
Net sales :89,200 million Rupee
(fiscal year ended March 31, 2001)
Employee :5,559 persons
Outline of undertaking rights issue
Number of shares undertaken :1,216,341 shares
Rights issue price :3,280 Rupee per share
Total subscription amount :3,989 million Rupee
Date of rights issue :May 30, 2002
Ratio of voting right held
after the acquisition of shares :54.2%
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS