1 Nature of Operations
 
 Atul Auto Limited, incorporated on 18-06-1986 is a manufacturer of
 Three Wheeler Auto Rickshaw (Passenger /Loading) and its spare parts.
 It produces Auto Rickshaw under Atul Shakti, Atul Smart & Atul Gem
 brand names. The Company is also engaged in the generation of
 Electricity with wind Turbine Generator at Village Soda Mada, Rajasthan
 and at Village Gandhavi, Gujarat.
 
 2 Basis of Preparation
 
 The financial statements have been prepared to comply in all material
 respects with the standards notified under The Companies (Accounting
 Standards) Rules, 2006 and the relevant provisions of the Companies
 Act, 1956. The financial statements have been prepared under historical
 cost convention on an accrual basis except in case of assets for which
 provision for impairment is made. The accounting policies have been
 consistently applied by the Company and except for the changes in
 accounting policy discussed more fully below, are consistent with those
 used in the previous year.
 
 a Terms/Rights attached to Equity Shares
 
 The company has only one class of equity shares having a per share
 value of Rs. 10/- per share. Each holder of equity shares is entitled
 to one vote per share.
 
 The company declares and pays dividend in Indian Rupees. The dividend
 proposed by the Board of Directors is subject to the approval of the
 shareholders in the ensuing General Meeting. During the year ended 31
 March, 2012 the amount of per share dividend recognized as distributed
 to equity shareholders was Rs.5 (31 March 2011 : Rs.4)
 
 In the event of liquidation of the company, the holders of equity
 shares will be entitled to receive remaining assets of the company,
 after distribution of all preferential amounts. The distribution will
 be in proportion to the number of equity shares held by the
 shareholders.
 
 (a) Term Loan from IDBI was secured by equitable mortgage of immovable
 properties and hypothecation of plant and machinery etc and personal
 guarantee of some of the directors of the company . The term loan was
 repayable within 24 months by 8 quarterly installment of Rs.75,00,000/-
 each. During the year the company has repaid the term loan out of fund
 received from Right Issue and internal accrual.
 
 (b) Provision for Gratuity
 
 The company has a defined benefit gratuity plan. Every employee who has
 completed five years or more service gets a gratuity on departure at 15
 days salary (last drawn salary) for each completed year of service. The
 scheme is funded with an insurance company in the form of a qualifying
 insurance policy.
 
 The following table summaries the components of net benefit expense
 recognized in the profit and loss account and the funded status and
 amounts recognized in the balance sheet for the respective plans.
 
 The overall expected rate of return on assets is determined based on
 the market prices prevailing on that date, applicable to the period
 over which the obligation is to be settled.  There has been significant
 change in expected rate of return on assets due to the improved stock
 market scenario.
 
 (c) Provision for Warranties
 
 A provision is recognized for expected warranty claims for ATUL SHAKTI
 & ATUL SMART sold for last 6 months and for ATUL GEM sold for last 8
 months, based on past experience of the level of repairs and returns.
 It is expected that significant portion of these costs will be incurred
 in the next financial year. Assumption used to calculate the provision
 for warranties were based on current sales levels and current
 information available about returns based on the warranty period for
 all products sold. The table given below gives information about
 movements in warranty provisions.