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Message: <blockquote data-quote="ibnanv" data-source="post: 17094655" data-attributes="member: 218596">NEW DELHI:  Maruti Suzuki India Ltd  , the nation's top carmaker, said on Thursday it would make royalty  payments due to parent Suzuki Motor Corp for all future models in rupees  to limit risks from foreign exchange fluctuations.  "On  all future models the royalty will be expressed in rupees...and not (in)  the yen so that we are not exposed to the variation in the exchange  rate which has been happening in the past," Maruti chairman  RC Bhargava told shareholders at the company's annual general meeting here.  Maruti, over 56 per cent-owned by Suzuki, currently pays royalties in  yen for use of technical knowhow and its Japanese parent brand name. The  company paid Rs 24.86 billion ($412 million), or nearly 6 per cent of  its net sales, in royalties for the year to March, according to its  annual report for the year.  In February, some large Indian investment funds, challenging a plan by  Maruti to source cars from a plant in western India to be built by  Suzuki, saying the royalty paid by Maruti to its Japanese parent was too  high, a complaint made previously by minority investors.   Maruti, which has said it will take minority shareholders on board  before progressing on the new Gujarat plant, expects the factory to be  commissioned in 2017, chairman Bhargava said at the shareholder meeting.   Bhargava also said Maruti would invest in increasing its  research and development capabilities, and the work done locally would  be taken into account while calculating royalty payments.  "That will mean that our expenditure on R&D will get rewarded in terms of lower royalty rates," he said.-----------------------------------------------------------Sri Lankan Companies should adopt this policy. </blockquote>

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