The Company has announced that its subsidiary, Maruti Suzuki Automobile India Ltd (MSAIL), will merge into the Company.This was decided by the Company's Board of Directors at a meeting here on April 13, 2006.The Company holds 70 per cent stake in MSAIL while Suzuki Motor Corporation (SMC), Japan, holds the remaining 30 per cent. The Company will buy out the entire 30 per cent stake held by SMC in MSAIL.This merger will add value for shareholders and eliminate all potential issues relating to inter-company transactions. In the original arrangement finalized in September 2004, MSAIL was set up as a subsidiary to operate the new car plant in Manesar.MSAIL was always meant to be only a manufacturing company, with its other functions like sales and marketing, procurement of materials and R & D entrusted to the Company. The purpose of setting up a separate company (MSAIL) was to start operations with a fresh approach in the new plant.Chairman of the Company, Mr. S Nakanishi, said: 'The merger of MSAIL with MUL will create value for all stakeholders. It will retain all the benefits of the earlier arrangement and enable the management to focus on critical issues of business operation'. The new car plant at Manesar is coming up at an investment of Rs 15,242 million. The capacity of the plant will initially be 100,000 cars per annum, with a plan to scale it up to 250,000 cars per annum by 2008-09. The new car plant will begin commercial production on schedule, by the end of 2006. Maruti Udyog Limited has informed the Exchange that the BoDs of the Company in its meeting held on April 13, 2006 has approved the proposals of purchasing the entire equity stake of Suzuki Motor Corporation in Maruti Suzuki Automobiles India Ltd (MSAIL), thereby converting it into a wholly owned subsidiary company and its amalgamation/merger with Maruti Udyog Ltd. with effect from April 01, 2006. (As per NSE Bulletin dated on 27/04/2006) Maruti Udyog Ltd has informed BSE that the pursuant to the Order, the Hon'ble High Court of Delhi at New Delhi a Separate meeting of the equity shareholders & unsecured creditors of the Company will be held on August 22, 2006, for the purpose of considering and if thought fit, approving, with or without modification(s), the Scheme of Amalgamation between the Company and Maruti Suzuki Automobiles India Ltd. (As per BSE Bulletin dated on 03/08/2006) Maruti Udyog Ltd has informed BSE that the pursuant to the order of the Hon'ble High Court of Delhi at New Delhi, separate meetings of the equity shareholders, secured & unsecured creditors of the Company will be held on August 22, 2006, for the purpose of considering and if thought fit, approving, with or without modification(s), the Scheme of Amalgamation between the Company and Maruti Suzuki Automobiles India Ltd. (As per BSE Bulletin dated on 04/08/2006) Maruti Udyog Ltd has informed BSE that the Hon'ble High Court of Delhi (Court), vide its order passed on October 10, 2006, has kindly sanctioned the Scheme of Amalgamation of Maruti Suzuki Automobiles India Ltd (MSAIL) with the Company in toto. (As per BSE Announcement website dated on 30/10/2006) The scheme of merger of the Company's wholly owned subsidiary, Maruti Suzuki Automobiles India Ltd ('MSAIL') with the Company from the appointed date April 01, 2006 was approved by the Honorable Delhi High Court during the quarter and became effective on November 13, 2006, (the date of registration of the approved scheme with the Ministry of Company Affairs). Pursuant to the merger, the profit before tax for the current quarter has been arrived at after deducting the loss of the erstwhile MSAIL for the period from April 01, 2006 to December 31, 2006, amounting to Rs 546.10 million of which Rs 213.20 million relates to the period April 01, 2006 to September 30, 2006 (corresponding period last year: Nil). Therefore, the results for the quarter are not comparable with those for the corresponding period of the previous year. (As Per BSE Announcement Website Dated on 22/01/2007)