The Hindu Business Line : Hyundai Motor India pays parent royalty of Rs 185 cr in 2003-04

HYUNDAI Motor India Ltd paid its parent, Hyundai Motor Company of Korea, a royalty of Rs 184.74 crore in 2003-04 compared to a royalty of Rs 110.89 crore in the previous financial year.

Besides this, Hyundai Motor India paid a final dividend of Rs 121.88 crore last year (15 per cent), the same amount paid out in the previous year when it was declared as an interim dividend, according to the company's annual report for 2003-04 filed with the Registrar of Companies.

According to Hyundai Motor India sources, the royalty payment to the parent company is for using the Hyundai brand name, both in the domestic and export markets.

In 2002-03, the Indian subsidiary also paid its parent a technology transfer fee of Rs 9.63 crore.

In 2003-04, Hyundai Motor India earned Rs 5,713.74 crore from sales and service compared to Rs 3,955.86 crore the previous year. Net of excise, the income last year was Rs 4,800.49 crore against Rs 3,078.38 crore in the previous year.

Other income amounted to Rs 185.49 crore compared to Rs 104.79 crore previously.

Hyundai Motor India is among the top five income-tax payers in the automobile sector in the country, after Hero Honda, Bajaj Auto and Maruti. Last year, it provided Rs 195.53 crore for current tax against Rs 84.74 crore in 2002-03.

The sales turnover was up 44 per cent last year over the previous year, while profit after tax jumped by 130 per cent, following a 53 per cent increase in volume of sales.

In 2003-04, Hyundai Motor India sold 171,743 units compared to 112,357 vehicles the previous year.

Domestic sales turnover (from vehicles manufactured) was Rs 4,500.38 crore (Rs 3,612.59 crore) and export turnover was Rs 942.35 crore (Rs 181.97 crore).

Income from vehicles traded (Hyundai Motor India imports the Terracan, a sports utility vehicle, from its parent and sells it in the domestic market) was Rs 47.78 crore.

The company's export income has been boosted both by an increase in the number of units sold as well as higher realisation from the export markets, mainly Europe.

In 2003-04, Hyundai Motor India exported 42,113 vehicles, representing a 370 per cent jump over the previous year. It commenced exports of the Santro Xing to Europe and Mexico. The export realisation in Europe is much higher than in other markets, according to reliable sources. The total foreign exchange earned for the year amounted to Rs 1,529.51 crore and the foreign exchange used Rs 202.14 crore.

According to the information in the annual report, the company saved Rs 89.20 lakh last year through energy conservation measures, which translated into a saving of Rs 52.12 per car. This year, Hyundai Motor India hopes to save Rs 2.13 crore through energy conservation measures, which will translate into a saving of Rs 92.81 a car.

According to the annual report, the company opted for sales tax deferral on sale of vehicles and parts manufactured by it in Tamil Nadu for 14 years, in the agreement it signed with the State Government.

It has to begin paying back this sales tax from October 2012. The company is also entitled to a concessional Central Sales Tax rate of 1 per cent ad valorem in respect of inter-State sales of vehicles and manufactured parts to registered dealers. The unsecured loans as on March 31, 2004 amounted to Rs 596.32 crore against Rs 571.53 crore the previous year.

Hyundai Motor India is a wholly owned subsidiary of Hyundai Motor Corporation. Its authorised share capital is 1.4 crore equity shares of Rs 1,000 each and the paid-up share capital is 8,125,411 shares of Rs 1,000 amounting to Rs 812.54 crore.