Bajaj Auto Finance

Asat31st   Asat31st
                                              March 2009 March 2008
                                              Rupees     Rupees
 1) Contingent Liability not provided for :
 
 Disputed claims against the Company not
 acknowledged as debts                       31,175,451  23,118,789 
 VAT matter under Appeal                     26,205,125
 
 2) The company is engaged primarily in the business of financing and
 accordingly there are no separate reportable segments as per Accounting
 Standard-17 as prescribed by Companies (Accounting Standards) Rules,
 2006, dealing with Segment Reporting.
 
 3) The disclosures required in terms of Paragraph 13 of the Non
 Banking Financial (Deposit Accepting or Holding) Companies Prudential
 Norms (Reserve Bank) Directions, 2007 are given in the Annexure forming
 part of these Financial Statements.
 
 4) During the financial year 2006 - 2007, the company made a
 simultaneous but unlinked issue of 12,596,076 equity shares of Rs.
 10/-each at a premium of Rs.315 I- per equity share aggregating to
 Rs.4,093,724,700/- to the shareholders on rights basis in the ratio of
 6 equity shares for every 10 equity shares held on the record date i.e.
 November 20, 2006 and 5,248,365 non convertible debentures (NCDs) of
 Rs.500/- each aggregating to Rs.2,624,182,500/- with detachable
 warrants in the ratio of 1 NCD for every 4 equity shares held on the
 record date. For allotment of every NCD being offered, one detachable
 warrant was issued. This warrant can be freely and separately traded.
 The warrant holder is entitled to exercise his right to apply for one
 equity share of Rs. 10/- each at the warrant exercise price of
 Rs.500/-. Warrant exercise period is the period commencing after 12
 months from the date of allotment of debentures up to the end of 35
 months from the date of allotment, i.e. up to January 8,2010.
 Outstanding warrants at the close of the year are 5,248,365.
 
 The Company, between March 24 and March 26, 2008, had repurchased
 2,186,380 Debentures of the Face Value of Rs.500/- each aggregating
 Rs.109.32 crores for a consideration of Rs.101.87 crores, resulting
 into a gain of Rs.7.45 crores on repurchase. As these debentures can be
 reissued, the gain on repurchase is recognised as income equally over
 the balance period to maturity i.e. 22 months. Accordingly, a gain of
 Rs.40,654,144/- has been recognised in the Profit and Loss Account for
 the year.
 
 The Company, between March 6 and March 18, 2009, has repurchased
 401,500 Debentures of the Face Value of Rs.500/- each aggregating
 Rs.20.08 crores for a consideration of Rs.19.49 crores, resulting into
 a gain of Rs.0.59 crores on repurchase. As these debentures can be
 reissued, the gain on repurchase is recognised as income equally over
 the balance period to maturity i.e. 10 months. Accordingly, no gain has
 been recognised in the Profit and Loss Account for the year.
 
 The entire issue proceeds net of calls in arrears as against the stated
 objectives in the prospectus are utilized.
 
 5) Debenture Redemption Reserve has been created in accordance with
 the Circular No.9/2002 dated 18th April, 2002, issued by Department of
 Company Affairs, Ministry of Law, Justice & Company Affairs, Government
 of India & Section 117 C of Companies Act.
 
 6) Previous years figures have been regrouped, wherever necessary,
 to make them comparable with those of the current period.