1 (a) Terms / rights attached to equity shares:
 
 The company has only one class of issued equity shares having a par
 value of Rs 2/- per share. Each holder of equity shares is entitled to
 one vote per share. The dividend proposed by the Board of Directors and
 approved by the shareholders in the Annual General Meeting is paid in
 Indian rupees. 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 amount. The
 distribution will be in proportion to the number of equity shares held
 by the shareholders.
 
 1 (b) Terms of securities convertible into equity shares:
 
 (i) The Company issued and allotted to Qualified Institutional Buyers,
 10,000,000 Equity Shares of Rs 2/- each at a price of Rs 272/- per share
 aggregating to Rs 2,720 million on 28th April, 2010, simultaneous with
 the issue of 1,760 10.75% Non Convertible Debentures (NCD) of a face
 value of Rs 1,000,000/- at par , together with 6,500,000 warrants at a
 price of Rs 2/- each entitling the holder of each warrant to subscribe
 for 1 equity share of Rs 2/- each at a price of Rs 272/- at any time
 within 3 years form the date of allotment. The subscription money
 received on issue of warrants has been credited to Capital Reserve as
 the same is not refundable / adjustable. Out of the funds raised, Rs
 2,365 million has been temporarily deployed in Fixed Deposits with
 Banks and in Mutual Funds and the Balance has been utilised towards the
 object of the issue.
 
 (ii) See Note 4(d) regarding Foreign Currency Convertible Bonds.
 
 1 (c) Other information:
 
 The Company had issued 3,636,500 Equity Shares of Rs 10/- each ( later
 sub-divided into 18,182,500 Equity Shares of Rs 2/- each) in April and
 May 2005 represented by 3,636,500 Global Depository Receipts (GDR) (on
 sub division 18,182,500 GDRs) evidencing ''Master GDR Certificates'' at a
 price of USD 27.50 per GDR (including premium). GDRs outstanding at the
 close of the year are 9,200. The Funds raised has been utilised towards
 the object of the issue.
 
 2 (a) Sales Tax Deferral Incentive:
 
 The Company, upto March, 2006, had prematurely retired its obligations
 of the Sales Tax Deferral Incentive availed under the package scheme of
 Incentives 1993, thereby generating a cumulative surplus of Rs 108.63
 million. Since the incentive was fundamentally provided to encourage
 capital investments in designated underdeveloped zones and thereby
 defray, to some extent, deficiencies, the same has been, as per the
 opinion of the ''Expert Advisory Committee'', set up by the Institute of
 Chartered Accountants of India, credited to ''Capital Reserve'' to be
 apportioned to ''Revenue Reserves'' over the future/ balance life of the
 underlying investments, at the end of each financial year.
 
 2 (b) Subsidy for setting up new Industrial Unit:
 
 The Company''s manufacturing facility at Baramati has been granted ''Mega
 Project'' status by Government of Maharashtra and therefore is eligible
 for Industrial Promotion Subsidy (IPS) under Packaged Scheme of
 Incentive (PSI) 2007. The company has been granted Eligibility
 Certificate issued by the Directorate of Industries, Government of
 Maharashtra in this regard.
 
 IPS consists of the following:
 
 a.  Electricity Duty exemption for the period of 7 years from the date
 of commencement of the project i.e. 1st April, 2009,
 
 b.  100% exemption from payment of Stamp duty for the Leasehold land
 acquired for the Baramati Plant, and
 
 c.  VAT and CST payable to the State Government (before adjustment of
 Set-off) on sales made from Baramati plant, within a period of 7 years
 starting from 1st April, 2009 to 31st March, 2016.
 
 IPS will however be restricted to 75% of the eligible fixed capital
 investments made from 11th May, 2005 to 10th May, 2010.  The
 Eligibility Certificate issued allows maximum subsidy of Rs 3,198.20
 million.
 
 The Packaged Scheme of Incentive (PSI) 2007 is for intensifying and
 accelerating the process of dispersal of industries to the less
 developed regions and promoting high tech industries in the developed
 areas of the State coupled with the object of generating mass
 employment opportunities.
 
 Further, in terms of the Accounting Standard (AS 12) ''Accounting for
 Government Grants'' prescribed by Companies (Accounting Standards)
 Amendment Rules, 2006, eligible incentive is considered to be in the
 nature of promoters'' contribution.  Therefore incentive of Rs 34.08/-
 million received during the year (P.Y. Rs Nil) has been credited to the
 Capital Reserve.
 
 2 (c) Debenture Redemption Reserve:
 
 Debenture Redemption Reserve has been created in accordance with
 circular No.9/2002 dated 18th April, 2002 issued by Department of
 Company Affairs, Ministry of Law, Justice and Company Affairs,
 Government of India and Section 117(C) of the Companies Act, 1956 at
 25% of the maturity amount equally over the terms of the Debentures
 Privately placed. Amount set aside for the year represents for full
 year in respect of Debentures issued in earlier years.
 
 2 (d) Foreign Currency Monetary Item Translation Difference Account
 (FCMITDA):
 
 The Accounting Standard (AS 11) ''The effects of changes in Foreign
 Exchange Rates'' prescribed by Companies (Accounting Standards) Rules,
 2006 was amended on 31st March, 2009, vide a notification dated 31st
 March, 2009, by the Ministry of Corporate Affairs. The said amendment
 offered an option to Companies to recognise Foreign Exchange Gains and
 Losses arising on translation of all long term monetary assets and
 liabilities acquired upto 31st March, 2009, retrospectively from
 accounting periods commencing after 7th December, 2006 ( i.e. from 1st
 April, 2007 for the company) upto 31st March, 2011, The Company had
 chosen to exercise the option in preparation of financial statements in
 the year ended 31st March, 2009.
 
 The Company continues, upon the extension granted by the Ministry of
 Corporate Affairs, to exercise the option offered in paragraph 46 of
 the Accounting Standard (AS 11) relating to ''''The effects of changes in
 foreign exchange rates'''' to capitalise foreign exchange difference on
 translation of long term monetary liabilities to cost of Assets where
 used to acquire such assets and in case of other long term monetary
 item to Foreign Currency Monetary Item Translation Difference Account
 (FCMITDA). The amount so recognised as capital cost of acquisition of
 assets is to be depreciated over the balance life of the relevant
 assets. In case of the amount recognised in the FCMITDA to be amortised
 over the balance term of the monetary asset or liability but not beyond
 31st March, 2020, aggregate Rs 28.32 million.
 
 Accordingly Foreign exchange differences adjusted against the cost of
 the assets/ CWIP aggregates Rs 588.23 million (loss), amount in
 ''''Foreign Currency Monetary Item Translation Difference Account''''
 (FCMITDA) aggregates Rs 66.50 million (loss) and amortised in the
 current year amounts to Rs 38.18 million.
 
 2 (e) Hedge Reserve:
 
 In order to recognise the impact of fluctuation in foreign currency
 rates arising out of instruments acquired to hedge highly probable
 forecast transactions, in appropriate accounting periods, the company
 applies the principles of recognition set out in the Accounting
 Standard 30- Financial Instruments - Recognition and Measurement
 (AS-30) as suggested by the Institute of Chartered Accountants of
 India. Accordingly, the unrealised gain/(loss) (net) consequent to
 foreign currency fluctuations, in respect of effective hedging
 instruments , represented by simple forward covers, to hedge future
 exports, are carried as a Hedging Reserve and ultimately set off in the
 Profit and Loss account when the underlying transaction arises.
 
 The amount outstanding in the Hedge Reserve at the close of the year is
 Rs 381.64 Million (Debit Balance / Valuation Loss).
 
 2(f) The Equity Shares allotted on exercise of option to convert FCCBs
 by the Bondholders, and the 10,000,000 equity shares of Rs 2/- each
 allotted as detailed in Note 2(d) and equity shares issued and allotted
 on conversion of warrants , if any, before the record date/ book
 closure for dividend would rank pari passu with the existing share
 capital reflected in Note 2 in all respect including dividend declared
 for the year. Dividend for the year has been provided for on
 232,794,316 equity shares of Rs 2/- each at the rate recommended by the
 Board of Directors on the basis of equity shares issued and allotted up
 to 27th May, 2012.
 
 However, as the Company is unable to estimate further conversions upto
 the record date set for determining the said eligibility, any further
 amounts required to be distributed as dividend will be adjusted against
 the balance in the Profit and Loss account carried forward to the
 subsequent financial year.
 
 3 (a) Debentures:
 
 The Company has issued the following secured redeemable non-convertible
 debentures:
 
 (i) 3,500 - 10.75% Redeemable Secured Non-Convertible Debentures
 Seventeenth Series of Rs 1,000,000/- each redeemable @ 25.00% on 22nd
 March, 2015; @ 50.00% on 22nd September, 2014; & @ 25.00% on 22nd
 March, 2014.
 
 Above Debentures are secured by a (i) First pari passu Mortgage in
 favour of the Trustees, of all rights and interest on the Company''s
 immovable properties situated at Mundhwa, Satara, Jalgaon and Chakan
 with negative lien on properties situated at Jejuri and Baramati; and
 (ii) First pari passu charge in favour of the Trustees by way of
 hypothecation of movable properties, present and future both such as
 all plant and machinery, equipments, tools, furniture & fixtures etc.,
 as described in Debenture Trust - cum -Mortgage Deed dated 14th
 December, 2009.
 
 (ii) 1,760 - 10.75 % Redeemable Secured Non-Convertible Debentures
 Eighteenth Series of Rs 1,000,000/- each redeemable at 35.00% on 28th
 April, 2016; @ 35.00% on 28th April, 2015; & @ 30.00% on 28th April,
 2014.
 
 Above Debentures are secured by a (i) First pari-passu Mortgage in
 favour of Trustees, of all rights and interest on the Company''s
 immovable properties, present and future situated at Mundhwa, Chakan,
 Satara and Jalgaon with negative lien on properties situated at Jejuri
 and Baramati as described in schedule-I as per Debenture
 Trust-cum-Mortgage Deed dated 28th June, 2010 and (ii) First pari-passu
 Charge in favour of the Trustees on moveable properties, present &
 future as described in Schedule-II as per Debenture Trust-cum-Mortgage
 Deed dated 28th June, 2010.
 
 3 (a) Debentures (contd.):
 
 (iii) 2,500 - 11.95 % Redeemable Secured Non-Convertible Debentures
 Sixteenth Series of Rs 1,000,000/- each redeemable at 33.34% on 5th
 January, 2017; @ 33.33% on 5th January, 2016; & @ 33.33% on 5th
 January, 2015.
 
 Above Debentures are secured by a (i) First pari passu Mortgage in
 favour of the Trustees, of all rights and interest on the Company''s
 immovable properties situated at Mundhwa, Satara, Jalgaon and Chakan
 with negative lien on properties situated at Jejuri and Baramati; and
 (ii) First pari passu charge in favour of the Trustees by way of
 hypothecation of movable properties, present and future both such as
 all plant and machinery, equipments, tools, furniture & fixtures etc.,
 as described in Debenture Trust-cum - Mortgage Deed dated April 30,
 2009.
 
 3 (b) Foreign Currency Term Loans:
 
 I.  From Bank of India, London
 
 Balance outstanding USD 2.50 million (Previous year USD 5.00 million)
 
 Secured By (i) First charge by way of Hypothecation of the whole of the
 movable properties including its movable plant and machinery, machinery
 spares, tools and accessories and other movables, both present and
 future, whether installed or not and whether now lying loose or in
 cases or now lying or stored in or about or shall from time to time
 during the continuance of the security be brought into or upon or be
 stored or be in or about all the factories, premises and godowns
 situate at Mundhwa, District Pune; Chakan, District Pune; Vaduth,
 District Satara; Village Kusumbe, District Jalgaon, all in the state of
 Maharashtra or wherever else the same may be or be held by any party to
 the order of disposition or in the course of transit or on high seas or
 on order, or delivery, howsoever and wheresoever in the possession and
 either by way of substitution or addition except specific movable plant
 and machinery consisting of Wind Energy converter of 600 K.V. 7 Nos at
 Village Boposhi, District Satara, exclusively hypothecated to Standard
 Chartered Bank, as described under the Deed of Hypothecation dated 17th
 March, 2005 and; (ii) Equitable Mortgage by deposit of title deeds of
 Immovable properties situate at Village Mundhwa, Pune; Village Vaduth,
 Taluka and District Satara; Village Kusumbe Khurd, Taluka and District
 Jalgaon and Village Chakan, Pune all in the state of Maharashtra,
 together with all buildings and structures thereon and all Plant and
 Machinery attached to the earth or permanently fastened to anything
 attached to the earth, as described under Memorandum of Entry dated
 17th March, 2005.
 
 II.  From Credit Agricole Corporate & Investment Bank, Singapore
 
 Balance outstanding USD 50 million (Previous year USD 50 million)
 
 Secured By First Pari passu charge over present and future movable
 fixed assets viz. Plant and Machinery, Computers, Furnitures and
 Fixtures, whether installed or not and whether now lying loose or in
 cases or otherwise or being on or upon or at any time, hereafter being
 on or upon about the premises and godowns at Mundhwa, Pune; Village
 Kuruli, Chakan; Taluka Khed, District Pune; Village Vaduth, Taluka &
 District Satara and at Baramati, Pune or anywhere else.
 
 Repayable in 6 equal yearly installments from date of its'' origination,
 i.e. 14th October, 2012, along with interest of 3M Libor   280 bps p.a.
 
 3 (c) Rupee Term Loans:
 
 From Axis Bank
 
 Balance outstanding Rs 330.56 million (Previous year Rs 225 million)
 
 Above loan is to be secured against (i) First pari-passu charge on the
 Company''s immovable properties, present & future Situate at Mundhwa,
 Chakan, Satara and Jalgaon with negative lien on properties situated at
 Jejuri and Baramati and (ii) First pari-passu Charge on moveable
 properties, present & future including Land & Building.
 
 Repayable in 18 equal half yearly installments from date of its''
 origination i.e. 20th March, 2012 along with interest of Base Rate   2%
 p.a.
 
 3 (d) Foreign Currency Convertible Bonds:
 
 The Company had issued Foreign Currency Convertible Bonds (FCCB) in two
 tranches aggregating USD 79.90 million, detailed in the table below, to
 finance Capital Expenditure and Global Acquisitions. The said bonds are
 optionally convertible into GDR/ Equity Shares to be exercised at any
 time during the exercise period at a pre determined initial price
 subject to adjustments upon occurrence of certain events.
 
 However, the Company has option to redeem the balance of the above
 Bonds if such balance is less than 10% in aggregate of principal amount
 of such tranche of bonds originally issued in respect of each tranche,
 during the redemption exercise period in the manner specified in the
 offering circular at a premium so as to provide a predetermined yield
 to the Bondholders.
 
 The Company also has the option to call the Bondholders of Tranche A &
 Tranche B to mandatorily convert the Bonds into Equity Shares if the
 Market Price on the specified date provided the holder a gain of at
 least a 30% over the Early Redemption amount.
 
 # Tranche A of the above FCCBs amounting to USD 40.00 Million
 outstanding as at April 26, 2012 were redeemed on April 27, 2012 along
 with the redemption premium amounting to USD 17.03 Million. The premium
 on redemption aggregating Rs 994.06 Million, (including withholding Tax
 amounting to Rs 98.96 Million) since crystalised has been adjusted to
 securities premium account, net of deferred tax asset amounting to Rs
 322.52 million, in terms of Section 78(2) (d) of the Companies Act,
 1956.
 
 Due to variables currently indeterminate, the premium on actual
 redemption for Tranche B is not computable and hence will be recognised
 if and as and when the redemption option is exercised, as a charge to
 the securities premium account in terms of Section 78(2)(d) of the
 Companies Act,1956.
 
 The Company has been legally advised by an eminent law firm that the
 above mentioned Convertible Bonds issued upon terms and conditions set
 out in the offering circular dated 19th April, 2005, would be outside
 the purview of Section 117 (C) of the Companies Act, 1956 as regards
 creation of Debenture Redemption Reserve. The Auditors have relied upon
 the said legal opinion.
 
 3 (e) Term Loans from Banks:
 
 Foreign Currency Term Loans on Syndicated basis
 
 Balance outstanding USD 80 million (Previous year NIL)
 
 Repayable in 3 half yearly installments from date of its'' origination
 i.e. 31st October, 2016, along with interest of 6M Libor   280 bps p.a.
 
 3 (f) Deferred payment liabilities:
 
 Sales tax deferral incentives attached to the erstwhile windmill
 division, which was demerged to BF Utilities Ltd. under Section 392 and
 394 of the Companies Act, 1956 sanctioned by the High Court of the
 Judicature at Mumbai, have been passed on thereafter from year to year
 by the Company to the latter, under an arrangement, with all
 liabilities and obligations attached thereto. Consequently sales tax
 deferral liability represents net liability to the Company after such
 pass on aggregating to Rs 821 million (Previous year Rs 845 million).
 
 NOTES:
 
 (a) At cost, except lease hold land which is at cost less amounts
 written off.
 
 (b) Buildings include premises on ownership basis in co-operative
 Societies Rs 32.81 million and also cost of hangar jointly owned with
 other Companies Rs 0.12 million.
 
 (c) See Note 1 - clause 2 for accounting policy on Fixed Assets and
 Depreciation.
 
 (d) Includes 25 acres land given on lease.
 
 (e) Documents for the ownership premises at Sai Nagari & Surajban
 Apartments, Lullanagar at Pune, Antriksha Bhawan at New Delhi, Land at
 Keshavnager, Mundhawa and Lease deed for Land at Baramati & Jejuri
 still continue to be under execution.
 
 (f) Cost incurred by the Company. Ownership vests with Maharashtra
 State Electricity Distribution Company Ltd.
 
 (g) Represents amount amortised upto 31 st March, 2012
 
 $ Refer Note 1 - Clause 6(a) for accounting policy.
 
 @ Joint Ventures:- Company holds 50% of the Share Capital
 
 * Company holds 5% of the share capital
 
 # Joint Ventures:- Company holds 49% of the share capital
 
 1 (a) Contribution to Capital Reserve Credited in favour of Bharat
 Forge Ltd.:
 
 Contributions in to the Capital Reserves of CDP - Bharat Forge GmbH as
 per the German Commercial Code, forms a part of the Equity Share
 Capital and accordingly has been considered as an investment and is
 redeemable subject to provisions of the code.
 
 1 (b) Bharat Forge America Inc.:
 
 Bharat Forge America Inc. (BFA), a wholly owned subsidiary has
 registered losses which have substantially eroded its Net worth. The
 auditors of the BFA have, given current adverse conditions prevailing
 in the American auto industry, disclaimed expression of any opinion on
 the validity of the assumption of going concern, the basis on which the
 financial statements have been prepared. Given the uncertainties in the
 American economy and its further impact on the auto industries slow
 revival, the Company has, as a matter of prudence, tested the
 investment in BFA for impairment / diminution with reference to the
 value of assets. Accordingly the Company has provided for impairment
 aggregating Rs 704.16 Million during the year which has been recognised
 as an exceptional item in the statement of profit and loss.
 
 2 (a) Loan to a company:
 
 Interest free loan of Rs 309.09 million given to a Company which has
 given an undertaking to hold the shares solely for the purpose and
 obligations of the ''''BFL Executives Welfare and Share Option Trust'''' in
 terms of clause (b) of the proviso to Section 77(2) of the Companies
 Act, 1956, which in the opinion of an eminent Counsel, obtained by a
 Group Company, falls within the purview of the said proviso to the
 above mentioned section.
 
 # Included in Market value at NAV as on 31st March, 2012 & 31st March,
 2011 respectively, as there was no trade for the schemes, hence,
 quotations are not available.
 
 * Refer Note 1 - clause 6(b) of Accounting Policy.
 
                                                         (Rs in Million)
 
                                                    As at        As at
 
 3 Contingent Liabilities not provided for 
 in respect of :                               31st March, 
                                               2012          31st March,
                                                             2011
 
 (i) Sales Bills Discounted                      7,222.08     4,911.08
 Of Which:
 
 Bills since realised                            2,410.02     1,739.26
 
 Matured, Overdue & outstanding since 
 close of the period                                 -            -
 
 (ii) Guarantees given by the Company on 
 behalf of other companies Balance 
 Outstanding                                     1,996.82     1,845.43
 
 (Maximum Amount)                               (2,193.50)   (2,025.61)
 
 (iii) Claims against the Company not 
 acknowledged as Debts- to the
 extent ascertained                                140.48       142.00
 
 (iv) Excise/Service Tax Demands - matters
 under dispute                                     180.37       184.65
 
 (v) Customs Demands - matters under dispute        50.97        50.97
 
 ii) On 5th August, 2009, the Company has entered into a Cross Currency
 Swap (CCS) for a period of five years by converting a Long Term Rupee
 NCD liability of Rs250 million (out of 10.75% XVth Series NCD of Rs2,500
 million) into an equivalent USD liability at the prevailing spot rate.
 Under this structure, the Company will receive a fixed interest coupon
 on a quarterly basis on the rupee amount swapped and will pay floating
 rate interest (which is subject to a cap) on the USD notional amount.
 On maturity of the swap, the Company will pay the contracted USD loan
 liability at prevailing rate and receive the original rupee amount
 swapped.
 
 4 Guarantees given by Company''s Bankers on behalf of the Company,
 against sanctioned guarantee limit aggregating to Rs 3,250.00 million
 (Previous Year Rs 3,250 .00 million) for contracts undertaken by the
 Company and other matters are secured by extension of charge by way of
 joint hypothecation of stock-in-trade, stores and spares etc., book
 debts, subject to prior charge in their favour. Amount outstanding Rs
 711.05 million (Previous Year Rs 856.83 million)
 
 5 The Company has entered into agreements in the nature of lease /
 leave and license agreement with different lessors / licensors for the
 purpose of establishment of office premises/Residential Accommodations.
 These are generally in nature of operating lease / leave and license,
 disclosure required as per Accounting Standard 19 with regard to the
 above is as under:
 
 i) Payment under operating lease / leave and license for period
 
 1) Not later than one year Rs 4.09 million
 
 2) Later than one year but not later than five years Rs 1.63 million
 
 3) Later than five years Rs 0.81 million
 
 ii) There are no transactions in the nature of sub-lease.
 
 iii) Payments recognised in the Profit and Loss Account for the year
 ended 31st March, 2012 Rs 5.54 million
 
 iv) Period of agreement is generally for three years and renewable at
 the option of the Lessee.
 
 6 Segment information based on consolidated financial statements has
 been disclosed in a statement annexed thereto. Primary Segments have
 been determined by the management in light of the dominant source and
 nature of risks and returns of the consolidated group and relied upon
 by the auditors.
 
 7 Related Party disclosures have been set out in a separate statement
 annexed to this Note. The related parties, as defined by Accounting
 Standard 18 ''Related Party Disclosures'' issued by The Companies
 Accounting Standard Amendment Rules, 2006, in respect of which the
 disclosures have been made, have been identified on the basis of
 disclosures made by the key managerial persons and taken on record by
 the Board.
 
 8 Information on Joint Ventures is set out in a separate statement
 annexed to this Note.
 
 9 Figures less than Rs 5,000/- have been shown at actuals in bracket as
 the figures have been rounded off to the nearest second decimal to
 millions.
 
 10 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 reclassified to
 conform to this year''s classification. The adoption of Revised Schedule
 VI for previous year figures does not impact recognition and
 measurement principles followed for preparation of financial
 statements.