(Rs. In Crore)
                                                 2011         2010
 
 1  (a) Contingent liabilities not provided
        for in respect of :
 
 (i) Claims against the Company not 
     acknowledged as debts                  422.49        411.28
 
 (ii) Guarantees given by the Company 
      to banks, on behalf of its
      subsidiary, PT Bajaj Auto Indonesia      23.19         23.35
 
 (iii) Guarantees given by the Company 
       to Housing Development
       Finance Corporation Ltd. - 
       for loans to Employees                   0.22          0.45
 
 (iv) Excise and Customs demand - matters
      under dispute and Claims for
      refund of Excise Duty, if any, 
      against Excise Duty Refund received
      in the earlier year                     122.70         68.12
 
 (v) Sales Tax matters under dispute          328.41        276.45
 
 (vi) Claims made by temporary workmen
 
 Pending before various judicial/appellate 
 authorities in respect of similar matters
 adjudicated by the Supreme Court in the past. 
 The matter is contingent on the facts and
 evidence presented before the 
 courts/adjudicating authorities and not
 necessarily likely                        Liability     Liability
 to be influenced by the Supreme Courts 
 order                                 unascertained unascertained
 
 (b) The Company has imported Capital Goods under the Export Promotion
 Capital Goods Scheme, of the Government of India, at concessional rates
 of duty on an undertaking to fulfill quantifed exports. The future
 obligation aggregates to USD 559 million (Previous Year USD Nil).
 
 Minimum export obligation to be fulfilled by the company under the said
 scheme by 31 March 2011 has been fulfilled.  Non-fulfillment of the
 balance of such future obligation in the manner required, if any,
 entails options/rights to the Government to confiscate capital goods
 imported under the said licences and other penalties under the above-
 referred scheme.
 
 6.  Managerial Remuneration:
 
 (a) Mr. Sanjiv Bajaj, an Executive Director of the company is also the
 Managing Director of Bajaj Finserv Limited.
 
 His remuneration as an Executive Director from this company and as a
 Managing Director from Bajaj Finserv Limited, both together, are
 subject to the higher of the maximum admissable limits of any one of
 the two companies.
 
 8.  Details of Licensed & Installed Capacity, Production, Stocks and
 Turnover Class of Goods
 
 (a) Licensed Capacity is stated as per the Original Licence held by the
 erstwhile Bajaj Auto Ltd. (pre-demerger). However, the Companys
 products are exempt from Licensing requirements under New Industrial
 Policy in terms of notifcation no. s.o. 477 (E) dated 25 July1991.
 
 (b) As certifed by the COO and being a technical matter, accepted by
 the Auditors as correct.
 
 9.  Sales tax deferral incentive/loan, to the extent eligible under
 Rule 84 of the Maharashtra Value Added Tax Rules, 2005, has been
 prepaid during the year at a discounted value of Rs. 368.14 crore
 thereby resulting in a surplus of Rs. 826.82 crore. The said sum has
 been refected as an exceptional item in the Profit & Loss Account and
 considered as a capital receipt.
 
 10. Derivative financial instruments:
 
 The Company has adopted the accounting treatment and disclosures in
 accordance with the principles laid down in AS 30 and AS 32 on foreign
 currency derivative contracts.
 
 The Company holds foreign currency derivative to hedge its foreign
 currency exposure. Derivatives are initially recognised at fair value
 on the date a derivative contract is entered into and are subsequently
 re-measured at their fair value. The Company designates certain foreign
 currency derivatives as hedges of foreign currency risk associated with
 a highly probable forecast transaction (cash flow hedge).
 
 The company has entered into simple forward contracts and par forward
 contracts to hedge highly probable forecast export transactions. These
 instruments meet the managements Foreign exchange risk management
 objectives and also qualify for hedge accounting as per the principles
 of hedge accounting.
 
 The company has also entered into range forward contracts to hedge
 highly probable forecast transactions, where the export realisations of
 the company are protected below a minimum pre-determined foreign
 exchange rate whereas the realisation advantages are available to the
 company there from up to a higher pre-determined foreign exchange rate.
 The company does not benefit by rupee depreciating beyond the
 pre-determined foreign exchange rate. Though these instruments meet the
 managements Foreign exchange risk management objectives, they do not
 qualify for hedge accounting as the same do not satisfy test of
 effectiveness. The market value of instruments outstanding at the close
 of the year indicate a gain aggregating Rs. 116.46 crore (previous year
 aggregating Rs. 76.08 crore), which as a matter of prudence has not
 been recognised.
 
 Cash flow hedges
 
 Changes in the fair value of a derivative hedging instrument that
 qualify for hedge accounting as per the principles of hedge accounting
 and designated as a cash flow hedge are recognised as Hedging Reserve
 and presented within Reserves and Surplus, to the extent that the hedge
 is effective. To the extent that the hedge is ineffective, changes in
 fair value if resulted in loss are recognised in profit and loss
 account. However, changes in fair value in respect of ineffective
 hedges resulting in gains are not recognised on the basis of prudence.
 If the hedging instrument no longer meets the criteria for hedge
 accounting, expires or is sold, terminated or exercised, then hedge
 accounting is discontinued prospectively. The cumulative gain or loss
 previously recognised in Hedging Reserve, remains there until the
 forecast transaction occurs.
 
 When a hedging instrument expires or is sold, or when a hedge no longer
 meets the criteria for hedge accounting, any cumulative gain or loss
 existing in equity at that time is recognised in profit and loss
 account. When a forecast transaction is no longer expected to occur,
 the cumulative gain or loss that was reported in Hedging Reserve is
 immediately transferred to profit and loss account.
 
 Risk management policy and other disclosures
 
 The Exports of BAL, presently constituting substantial portion of the
 turnover, are at prices predetermined for each product in each region.
 These prices are fixed in USD based on an assumed USD/INR rate.
 (Budgeted rate of realisation). Exports are then effected at such price
 and hence it is desirable for the company to shield itself from adverse
 movements in forex rates at a future date.
 
 The Company also imports raw materials and components for its
 Motorcycles etc. However, the value of such imports is not material as
 compared to the value of exports. Nevertheless, the company may wish to
 secure its procurement prices in terms of INR to be able to forecast
 its pricing and profitability. Consequently the company may wish to
 hedge such exposures, future and current, to achieve the aforesaid
 objective.
 
 The exchange rate between the Indian rupee and foreign currencies has
 changed substantially in recent periods and may continue to fluctuate
 substantially in the future. Consequently, the Company uses derivative
 financial instruments, such as foreign exchange forward and option
 contracts, to mitigate the risk of changes in foreign currency exchange
 rates in respect of its forecasted cash flows and trade receivables.
 
 The fair value of forwards and foreign currency option contracts is
 determined based on the appropriate valuation techniques as given by
 the banks.
 
 The cash flows from the hedges are expected to occur over the financial
 year 2011-12 and will accordingly flow to the profit and loss account.
 
 In respect of foreign currency derivative contracts designated as cash
 flow hedges, the Company has recorded a net gain of Rs. 20.77 crore and
 net gain of Rs. 33.39 crore, as a component of equity (Hegde Reserve)
 as at March 31, 2011, and 2010, respectively and a net gain of Rs.
 32.02 crore and a net gain of Rs. Nil as part of revenue during the
 year ended March 31, 2011, and 2010 respectively.
 
 There is no forecast transaction for which hedge accounting had
 previously been used, but which is no longer expected to occur.
 
 Amount that was removed from appropriate equity account (Hedging
 Reserve Account) during the period and included in the initial cost or
 other carrying amount of a non-financial asset or non-financial
 liability whose acquisition or incurrence was a hedged highly probable
 forecast transaction is Rs. Nil.
 
 Amount in respect of the ineffectiveness recognised in the statement of
 profit and loss that arises from cash flow hedges are Rs. Nil.
 
 In respect of the Companys foreign currency par forward contracts
 outstanding as on March 31,2011, a 10% increase/decrease in the
 exchange rates of the currency underlying such contracts as given by
 the banks would have resulted in an approximately Rs. 106.77 crore
 increase/decrease in the Companys hedging reserve.
 
 Counter-Party Risk
 
 Counter-party risk encompasses settlement risk on foreign currency
 derivative contracts. Exposure to these risks is closely monitored and
 kept within predetermined parameters. The Company does not expect any
 losses from non-performance by these counter-parties.
 
 The Companys policy is to transact with credit worthy banks, which are
 reviewed on an on-going basis. The following table depicts that the
 majority of the foreign currency derivatives are placed in highly rated
 banks:
 
 Investment grade of Outstanding Foreign Exchange Forward
 
 Highest Safety represents a credit rating equivalent of AAA, High
 Safety represents a credit rating equivalent of AA+, AA and Adequate
 Safety represents a credit rating of A.
 
 11. Investments:
 
 a.  Investments made by the Company other than those with a maturity of
 less than one year and those intended to be held for less than one
 year, being of long-term nature, diminution in the value of quoted
 investments are not considered to be of a permanent nature. On an
 assessment of non-performing investments (quoted and unquoted) as per
 guidelines adopted by the management, no provision has been determined
 during the year ended 31 March 2011.
 
 b.  PT. Bajaj Auto Indonesia (PT. BAI), a subsidiary of the company, in
 which the company holds 98.94%, has registered substantial accumulated
 losses. The company through PT. BAI made a foray into the Indonesian
 market, which is very competitive but promising. Considering the
 challenges in setting up an appropriate dealer and service network,
 creation of brand awareness, appropriate tie ups with finance agencies,
 understanding customer behavior and preferences, in addition to setting
 up an assembly plant, the gestation period is expected to be long but
 eventually profitable. However, considering the continuing losses and
 longer gestation period, the company has assessed the carrying value of
 investments made in PT. BAI and determined an amount of Rs. 102.27
 crore at present, as a diminution in the value of investment and has
 accordingly made a provision of the said amount.
 
 15. Deposits include a sum of Rs. 9.2 crore (Previous year Rs. 9.2
 crore) against use of premises on a Leave and License basis, placed
 with Directors and their relatives, jointly and severally.
 
 16. Future minimum lease rental in respect of assets
 
 (i) given on operating lease in the form of office premises after April
 1, 2001 Minimum future lease payments as on March 31, 2011:
 
 (a) Receivable within one year - Rs. 2.63 crore (Rs. 0.49 crore)
 
 (b) Receivable between one year and five years - Rs. 9.90 crore (Rs.
 1.31 crore)
 
 (c) Receivable after five years -Rs. 0.14 crore (Rs. 0.16 crore)
 
 (ii) taken on operating lease in the form of office premises after
 April 1, 2001 Minimum future lease payments as on March 31, 2011:
 
 (a) Payable within one year- Rs. 7.25 crore (Rs. 6.83 crore)
 
 (b) Payable between one year and five years- Rs. 17.43 crore (Rs. 17.31
 crore)
 
 (c) Payable after five years - Rs. 17.74 crore (Rs. 19.51 crore)
 
 17. The company has allotted bonus shares on 13 September 2010 in the
 ratio of one equity share for every equity share of Rs. 10 each held in
 the company on the record date. The Basic and Diluted Earnings Per
 Share (EPS) has been calculated for the current year and previous year
 after taking into account the bonus issue as required by AS-20
 “Earnings Per Share”.
 
 18. Segment Information based on the Consolidated Financial Statements
 attached to the Independent Financial Statements has been disclosed in
 the Statement annexed to this Schedule.
 
 19. Disclosure of transactions with Related Parties, as required by
 Accounting Standard 18 Related Party Disclosures has been set out in
 a separate statement annexed to this Schedule. Related parties as
 defined under clause 3 of the Accounting Standard have been identified
 based on representations made by key managerial personnel and
 information available with the Company.
 
 20. Considering the company has been extended credit period upto 45
 days by its vendors and payments being released on a timely basis,
 there is no liability towards interest on delayed payments under “The
 Micro, Small and Medium Enterprises Development Act 2006” during the
 year. There is also no amount of outstanding interest in this regard,
 brought forward from previous years.
 
 The above information is on basis of intimation received, on requests
 made by the company, with regards to vendors registration under the
 said Act.
 
 21. Amounts less than Rs. 50,000 have been shown at actual against
 respective line items statutorily required to be disclosed.
 
 22. Previous year figures have been regrouped, wherever necessary, to
 make them comparable with those of the current year.