CORPORATE FINANCIAL

ACCOUNTING
ASSIGNMENT

Name – Shyam yadav

Roll Number – 230019000589

Class – M.com 1st Year

Semester – 2nd

Subject – Corporate Financial Accounting (CFA)

Topic – Amalgamation process of Maruti motors

and Suzuki

Submitted to – Mr. Dharam Singh Sir

 Suzuki

# HISTORY
In 1909, Michio Suzuki (1887–1982) founded the Suzuki Loom
Works in the small seacoast village of Hamamatsu, Japan. Business
boomed as Suzuki built weaving looms for Japan's giant silk
industry. In 1929, Michio Suzuki invented a new type of weaving
machine, which was exported overseas. The company's first 30
years focused on the development and production of these
machines

# BACKGROUND
Suzuki Motor Corporation (Japanese: スズキ株式会社,
Hepburn: Suzuki Kabushiki gaisha) is a Japanese multinational
mobility manufacturer headquartered in Hamamatsu,
Shizuoka. It manufactures automobiles, motorcycles, all-terrain
vehicles (ATVs), outboard marine engines, wheelchairs and a
variety of other small internal combustion engines. In 2016,
Suzuki was the eleventh biggest automaker by production
worldwide.Suzuki has over 45,000 employees and has 35
production facilities in 23 countries, and 133 distributors in 192
countries. The worldwide sales volume of automobiles is the
world's tenth largest, while domestic sales volume is the third
largest in the country.
 Maruti motors

# HISTORY
The Government of India established Maruti Udyog Limited
in February 1981 as a joint venture with Suzuki Motor
Corporation as a small partner. The Government of India
partially departed the business in 2003 and then sold all of its
remaining shares to Suzuki Motor Corporation in 2007.In
1982, Maruti opened its first production facility in Gurugram,
Haryana, India.

# BACKGROUND
Maruti Suzuki India Limited (formerly Maruti Udyog Limited)
is the Indian subsidiary of Japanese automaker Suzuki Motor
Corporation. As of September 2022, the company had a
leading market share of 42 percent in the Indian passenger
car market.
 REASONS BEHIND THEIR
AMALGAMATION

Maruti Suzuki India on Saturday said its shareholders

have approved the proposal to issue shares on a
preferential basis to Japanese parent Suzuki Motor
Corporation (SMC) as consideration for a related-party
transaction for the acquisition of 100 per cent stake in
Suzuki Motor Gujarat.The company had sought
approval from its shareholders through a postal ballot
on two special resolutions for the purpose of fully
acquiring Suzuki Motor Gujarat (SMG) last month.
Resolutions as set out in the postal ballot pertaining to
approval of related party transaction, and create,
offer, issue and allot equity shares on a preferential
basis for consideration other than cash have been
approved by the members of the company with
requisite majority, Maruti Suzuki India said in a
regulatory filing.The first special resolution of related
party transaction was approved with 98.21% in favour
and 1.79% against.The second special resolution to
create, offer, and allot equity shares on a preferential
basis other than cash consideration to SMC received
98.91% votes in favour and 1.09% against, it added.
Last month, the company’s board approved the
acquisition of SMG for a total purchase consideration
of Rs 12,841 crore. It was envisaged to be discharged
by way of issue and allotment of over 1.23 crore equity
shares of the company having a face value of Rs 5 each
to SMC, at a price of Rs 10,420.85 per equity share.
In August , Maruti Suzuki India’s board approved the
issue of shares on a preferential basis to SMC as
consideration for the acquisition of a 100% stake in
Suzuki Motor Gujarat.
 PROCESS OF
AMALGAMATION

Amalgamation is described as merging two or more businesses to

form a new entity. It contains the following items:

A new company is formed when two or more companies join forces

Absorption or blending of one by the other
As a result, absorption is included in amalgamation.

However, it’s essential to realise that, as the name implies,

amalgamation is nothing more than two organisations merging into
one. On the other hand, absorption is the process through which
one big corporation takes control of a weaker one. Amalgamation is
usually done between two or more organisations involved in the
same line of business or have some operational synergy. Companies
may also join forces to diversify their activities or expand their
service offerings. The company amalgamated into another company
is referred to as the transferor company, and the firm into which
the transferor company is merged is referred to as the transfer
company.
 Statement of Profit and loss Account

Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar 23 Mar 22 Mar 21 Mar 20 Mar 19

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Revenue From Operations [Gross] 112,500.80 83,798.10 66,562.10 71,690.40 83,026.50
Revenue From Operations [Net] 112,500.80 83,798.10 66,562.10 71,690.40 83,026.50
Other Operating Revenues 5,022.10 4,497.50 3,770.40 3,920.20 2,993.80
Total Operating Revenues 117,522.90 88,295.60 70,332.50 75,610.60 86,020.30
Other Income 2,161.30 1,793.50 2,946.40 3,420.80 2,561.00
Total Revenue 119,684.20 90,089.10 73,278.90 79,031.40 88,581.30
EXPENSES
Cost Of Materials Consumed 46,670.00 39,738.70 33,296.90 34,636.60 45,023.90
Purchase Of Stock-In Trade 39,977.20 26,390.50 17,247.20 18,758.10 15,019.50
Changes In Inventories Of FG,WIP And
-403.70 -91.90 273.10 -238.10 210.80
Stock-In Trade
Employee Benefit Expenses 4,605.10 4,022.20 3,402.90 3,383.90 3,254.90
Finance Costs 186.60 125.90 100.80 132.90 75.80
Depreciation And Amortisation Expenses 2,823.30 2,786.50 3,031.50 3,525.70 3,018.90
Other Expenses 15,803.90 12,679.40 10,839.90 11,889.20 11,634.00
Less: Inter Unit / Segment / Division
137.30 144.50 72.80 121.70 122.10

Total Expenses 109,525.10 85,506.80 68,119.50 71,966.60 78,115.70

Mar 23 Mar 22 Mar 21 Mar 20 Mar 19
Transfer

12 mths 12 mths 12 mths 12 mths 12 mths

Profit/Loss Before Exceptional, 10,159.10 4,582.30 5,159.40 7,064.80 10,465.60

ExtraOrdinary Items And Tax Profit/Loss
Before Tax

10,159.10 4,582.30 5,159.40 7,064.80 10,465.60

Tax Expenses-Continued Operations
Current Tax 2,247.50 1,430.10 1,155.60 1,374.80 2,932.30
Deferred Tax -137.60 -614.10 -225.90 39.40 32.70
Total Tax Expenses 2,109.90 816.00 929.70 1,414.20 2,965.00
Operations
Profit/Loss For The Period

12 mths 12 mths 12 mths 12 mths 12 mths

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE
Basic EPS (Rs.) 266.46 124.68 140.02 187.06 248.30
Diluted EPS (Rs.) 266.46 124.68 140.02 187.06 248.30
 Balance Sheet

Standalone Balance Sheet ------------------- in Rs. Cr. -------------------

Mar 23 Mar 22 Mar 21 Mar 20 Mar 19

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 151.00 151.00 151.00 151.00 151.00

Total Share Capital 151.00 151.00 151.00 151.00 151.00
Reserves and Surplus 60,231.00 53,935.00 51,215.80 48,286.00 45,990.50
Total Reserves and Surplus 60,231.00 53,935.00 51,215.80 48,286.00 45,990.50
Total Shareholders Funds 60,382.00 54,086.00 51,366.80 48,437.00 46,141.50

NON-CURRENT LIABILITIES
Deferred Tax Liabilities [Net] 0.00 0.00 384.70 598.40 564.00
Other Long Term Liabilities 2,609.80 2,211.30 2,164.50 2,170.30 2,036.50
Long Term Provisions 87.60 83.30 44.70 51.60 39.50
Total Non-Current Liabilities 2,697.40 2,294.60 2,593.90 2,820.30 2,640.00

CURRENT LIABILITIES
Short Term Borrowings 1,215.80 381.90 488.80 106.30 149.60
Trade Payables 11,780.40 9,761.00 10,161.70 7,494.10 9,633.00
Other Current Liabilities 6,140.70 6,009.50 4,714.60 3,014.80 3,743.30
Short Term Provisions 962.40 861.30 741.60 679.60 624.40
Total Current Liabilities 20,099.30 17,013.70 16,106.70 11,294.80 14,150.30
Total Capital And Liabilities 83,178.70 73,394.30 70,067.40 62,552.10 62,931.80

ASSETS
NON-CURRENT ASSETS

Tangible Assets 17,257.00 13,367.40 14,732.80 15,374.50 14,956.70

Intangible Assets 547.90 349.90 224.20 335.80 451.10
Capital Work-In-Progress 2,808.10 2,639.10 1,192.30 1,337.40 1,600.10
Intangible Assets Under Development 88.90 290.30 297.50 70.90 0.00
Fixed Assets 20,701.90 16,646.70 16,446.80 17,118.60 17,007.90
Non-Current Investments 47,756.40 36,663.20 33,371.00 35,248.80 31,469.50
Deferred Tax Assets [Net] 341.10 202.70 0.00 0.00 0.00
Long Term Loans And Advances 0.20 0.20 0.20 0.20 0.20
Other Non-Current Assets 2,779.20 3,100.30 1,722.70 1,757.10 2,092.60
Total Non-Current Assets 71,578.80 56,613.10 51,540.70 54,124.70 50,570.20

CURRENT ASSETS
Current Investments 0.00 4,100.10 8,415.70 1,218.80 5,045.50
Inventories 4,283.80 3,533.10 3,050.00 3,214.90 3,325.70
Trade Receivables 3,295.80 2,030.10 1,276.60 1,974.90 2,310.40
Cash And Cash Equivalents 37.70 3,036.20 3,036.40 21.10 178.90
Short Term Loans And Advances 29.70 30.50 23.00 16.90 16.00
OtherCurrentAssets 3,952.90 4,051.20 2,725.00 1,980.80 1,485.10
 Consolidated Balance Sheet

Consolidated Balance Sheet ------------------- in Rs. Cr. -------------------

Mar 23 Mar 22 Mar 21 Mar 20 Mar 19

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 151.00 151.00 151.00 151.00 151.00

Total Share Capital 151.00 151.00 151.00 151.00 151.00
Reserves and Surplus 61,640.30 55,182.50 52,349.60 49,262.00 46,941.10
Total Reserves and Surplus 61,640.30 55,182.50 52,349.60 49,262.00 46,941.10
Total Shareholders Funds 61,791.30 55,333.50 52,500.60 49,413.00 47,092.10
Minority Interest 0.00 0.00 0.00 19.20 17.60

NON-CURRENT LIABILITIES
Long Term Borrowings 0.00 0.00 2.80 5.40 8.00
Deferred Tax Liabilities [Net] 0.00 0.00 445.40 657.50 613.90
Other Long Term Liabilities 2,609.90 2,214.10 2,168.70 2,175.60 2,037.10
Long Term Provisions 88.40 84.40 44.70 51.60 39.50
Total Non-Current Liabilities 2,698.30 2,298.50 2,661.60 2,890.10 2,698.50

CURRENT LIABILITIES
Short Term Borrowings 1,215.80 381.90 488.80 106.30 149.60
Trade Payables 11,785.50 9,765.20 10,168.10 7,498.80 9,637.70
Other Current Liabilities 6,143.60 6,015.10 4,720.80 3,019.60 3,747.80
Short Term Provisions 962.40 861.30 742.80 680.70 625.40
Total Current Liabilities 20,107.30 17,023.50 16,120.50 11,305.40 14,160.50
Total Capital And Liabilities 84,596.90 74,655.50 71,282.70 63,627.70 63,968.70

ASSETS
NON-CURRENT ASSETS

Tangible Assets 17,282.50 13,397.30 14,764.50 15,408.60 14,986.20

Intangible Assets 547.90 349.90 224.20 335.80 451.10
Capital Work-In-Progress 2,815.20 2,646.20 1,199.30 1,344.30 1,606.90
Intangible Assets Under Development 88.90 290.30 297.50 70.90 0.00
Fixed Assets 20,734.50 16,683.70 16,485.50 17,159.60 17,044.20
Non-Current Investments 49,184.30 37,934.60 34,529.10 36,269.20 32,458.10
Deferred Tax Assets [Net] 279.40 141.10 0.00 0.00 0.00
Long Term Loans And Advances 0.20 0.20 0.20 0.20 0.20
Other Non-Current Assets 2,782.90 3,102.50 1,723.60 1,758.10 2,093.50
Total Non-Current Assets 72,981.30 57,862.10 52,738.40 55,187.10 51,596.00

CURRENT ASSETS
Current Investments 0.00 4,100.10 8,415.70 1,218.80 5,045.50
Inventories 4,283.50 3,532.30 3,049.00 3,213.90 3,322.60
Trade Receivables 3,301.40 2,034.50 1,279.90 1,977.70 2,312.80
Cash And Cash Equivalents 41.60 3,042.20 3,047.10 29.00 187.80