Cummins India

1. a) Pursuant to the Scheme of Amalgamation of wholly owned
 subsidiaries of the Company namely, Cummins Sales and Service India
 Limited (CSS) and Cummins Auto Services Limited (CASL) with the Company
 as approved by the shareholders in the Court convened meeting held on
 24th July 2008 and subsequently sanctioned by the Order of Honble High
 Court of Mumbai, the assets and liabilities were transferred to and
 vested in the Company with effect from 1st April 2008. The Scheme has
 accordingly been given effect to in these financials statement.
 
 b) The amalgamation has been accounted for under the Pooling of
 interest method as prescribed by Accounting Standard AS 14 issued by
 Institute of Chartered Accountants of India. Pursuant to Scheme of
 Amalgamation of CSS and CASL with the Company, the assets, liabilities
 and reserves / loss of CSS and CASL have been taken over at their book
 value. There are no difference in the accounting policies followed by
 CSS and CASL.
 
 Consequently pursuant to Scheme of Amalgamation, addition to General
 Reserve is explained below
 
 Particulars                                   Rs. (000)
 
 Accumulated Profits of CSS                       840,389
 Accumulated Losses of CASL                      (206,436)
 Extinguishment and Cancellation of Shares
 held by CIL and CSS in CSS and CASL respectively  40,936
 
 Total                                            674,889
 
 c) In view of aforesaid merger with effect from 1st April 2008, the
 amounts for the current year are not comparable with those of previous
 year.
 
 2.  Segmental Information
 
 a) Primary Segment
 
 The Companys operations predominantly relate to manufacture of
 Internal combustion engines, gensets and parts thereof (Engines
 business segment) used for various applications such as power
 generation, construction, compressor, mining, marine, locomotive,
 fire-fighting, etc. Others include leasing of diesel power generating
 sets and allied equipment including operation and maintenance
 facilities of these equipments, etc.
 
 3.  The net exchange differences (gains/flosses)) arising during the
 year appropriately recognised in the profit and loss account is Rs.
 (000) 228,690 (previous year Rs. (000) (25,121).
 
 4.  Other expenses include provision for doubtful debts Rs. (000)
 86,695 (previous year Rs. (000) 27,436).
 
 5.  The Company has sold its Power Generation Rental Power Business
 which has resulted in a profit of Rs. 192,037 (000) which has been
 reflected as Exceptional item in the Profit & Loss Account.
 
 6. Previous years figures have been regrouped / reclassified,
 wherever necessary. In view of merger of Cummins Sales and Service
 India Limited (CSS) and Cummins Auto Services Limited (CASL) with the
 Company with effect from 1st April 2008, the amounts for the current
 year are not comparable with those of previous year.