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 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.
 
 a Contingent Liabilities not provided for         2010-11     2009-10
 
 Claims against the Company not acknowledged 
 as debts
 
 Sales Tax                                          202531      202531
 
 CST                                               1183791     1183791
 
 Excise Duty                                       2312273      102510
 
 Income Tax                                        6945823           0
 
 Case Pending before consumer forum                4114375     4791000
 
 Case filed by the supplier in the Court         111729796   111729796
 
 Guarantees and counter guarantees given 
 by the company                                          0   594000000
 
 TOTAL                                           126488589   712009628
 
 b Gratuity and other post-employment benefit plans:
 
 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 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 Supplementary Statutory Information
 
 Note: As the future liability for gratuity and leave encashment is
 provided on an actuarial basis for the company as whole, the amount
 pertaining to the directors is not ascertainable and, therefore, not
 included above.
 
 Out of above Remuneration paid to Whole time director Rs. Nil (PY : Rs.
 2,19,544/-) is capitalized as Product Development expenses included in
 Capital Work-in-Progress.
 
 Computation of net Profit in accordance with section 349 of the
 Companies Act, 1956 for calculation of commission payable to directors
 
 Company has been advised that the computation of net profits for the
 purpose of directors remuneration under section 349 of the Companies
 Act, 1956 need not be enumerated since commission have not been paid to
 the director Fixed monthly remuneration has been paid to the directors
 as per schedule XIII to the Companies Act 1956.
 
 d Related Party disclosure as required under clause 32 of The Listing
 Agreement
 
 a > Names of Related Parties
 
 Associates       Khushbu auto Finance Limited
 
 Key Management 
 Personnel        1. Chandra Jayantilal Jagjivan    Chairman & Managing
                                                    director
 
                  2. Patel Mahendra Jamnadas        Wholetime director
                 
                  3. Mittal Sunilkumar              Wholetime director
 
 Relatives of     1. Chandra Dharmendra Jagjivan    Brother of Chairman 
                                                    & Managing
 Key Management                                     Director 
 Personnel                                          Shri Chandra 
                                                    Jayantilal
 
                  2. Chandra Harish Jagjivan        Brother of Chairman 
                                                    & Managing Director
                                                    Shri Chandra 
                                                    Jayantilal
 
                  3. Chandra Mahesh Jagjivan        Brother of Chairman
                                                    & Managing Director
                                                    Shri Chandra
                                                    Jayantilal
 
                  4. Chandra Bharat Jagjivan        Brother of Chairman
                                                    & Managing Director
                                                    Shri Chandra
                                                    Jayantilal
 
                  5. Chandra Niraj Jayantilal       Son of Chairman &
                                                    Managing Director
                                                    Shri Chandra 
                                                    Jayantilal Jagjivan
 
                  6. Chandra Prafulla Jayantilal    Wife of Chairman &
                                                    Managing Director
                                                    Shri Chandra 
                                                    Jayantilal Jagjivan
 
                  7. Patel Ashok Jamnadas           Brother of Wholetime
                                                    Director Shri 
                                                    Mahendra Jamnadas
 
                  8. Patel Manisha Mahendra         Wife of Wholetime 
                                                    Director Shri 
                                                    Mahendra Jamnadas
 
 Enterprises 
 owned or 
 significantly 
 influenced by    1. Atul Auto Agency
 Key Management 
 Personnel or 
 their relatives  2. Atul Auto Industries
 
                  3. Atul Automotives
 
                  4. Atul Motors Pvt. Ltd.
 
                  5. Atul Petroleum
 
                  6. Khushbu Auto Private Limited
 
                  7. New Chandra Motor Cycle Agency
 
                  8. New Chandra Motor Cycle House
 
                  9. Atul Automobiles
 
 e Other Note
 
 Previous Year Comparatives
 
 Previous years figures have been regrouped wherever necessary to
 confirm to this years classification.