1 Derivative hedging 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 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 management''s Foreign exchange risk management
 objectives and also qualify for hedge accounting as per the principles
 of hedge accounting. The market value of instruments outstanding at the
 close of the year indicate a loss aggregating Rs. 212.87 crore as against
 a gain in the previous year aggregating Rs. 20.77 crore.
 
 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. These instruments meet the
 management''s Foreign exchange risk management objectives and also
 qualify for hedge accounting as per the principles of hedge accounting.
 MTM losses in respect of effective hedges is carried to the Hedge
 Reserve and ineffectiveness, if any, including the time value of option
 contracts is recognised in the results, as per the principles of AS-30.
 The market value of instruments outstanding at the close of the year
 indicate a loss aggregating Rs. 256.11 crore as against a gain in the
 previous year aggregating Rs. 116.46 crore, which was not recognised in
 the previous year as a matter of prudence.
 
 Risk management policy and other disclosures
 
 The exports of the company, presently constituting substantial portion
 of the turn over, 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.
 
 
 2 Contingent liabilities
 
                                                 (Rs. In Crore)
 
                                           As at         As at
                                        31 March 2012  31 March 2011
 
 a) Claims against the Company not 
 acknowledged as debts                     418.74        422.49
 
 b) Guarantees given by the Company 
 to banks, on behalf of its subsidiary,
 PT Bajaj Auto Indonesia                    25.44         23.19
 
 c) Guarantees given by the Company to 
 Housing Development Finance 
 Corporation Ltd. 
 for loans to employees                      0.12          0.22
 
 d) 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                          181.78        122.70
 
 e) Income tax matters - Appeal by company   9.58          -
 
 f)    Sales Tax matters under dispute     357.85        328.41
 
 g)   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 Liability Liability
 likely to be influenced by the Supreme Courts order unascertained
 unascertained
 
 3 Segment information
 
 Segment information is based on the consolidated financial statements.
 
 4 Previous year figures
 
 The financial statements for the year ended 31 March 2011 had been
 prepared as per the then applicable, pre-revised Schedule VI to the
 Companies Act, 1956. Consequent to the notification of Revised Schedule
 VI under the Companies Act, 1956, the financial statements for the year
 ended 31 March 2012 are prepared as per Revised Schedule VI.
 Accordingly, the previous year figures have also been re-classified to
 conform to this year''s classification. The adoption of Revised Schedule
 VI for previou: year figures does not impact recognition and
 measurement principles followed for preparation of financial
 statements.
 
 5 Miscellaneous
 
 Rs. 1 crore is equal to Rs. 10 million.
 
 Amounts less than Rs. 50,000 have been shown at actual against respective
 line items statutorily required to be disclosed.