1. a) Inter corporate deposit includes an amount of Rs. (000) 275,000
 (previous year Rs. (000) 265,000) placed with Cummins Technologies
 India Limited, a fellow subsidiary. Maximum amount due during the year
 Rs. (000) 290,840 (previous year Rs. (000) 273,836).
 
 2 The amount of further Interest remaining due and payable even in the
 succeeding years, until such date when the interest dues as above are
 actually paid to the small enterprise, for the purpose of disallowance
 as a deductible expenditure under Section 23 of the Micro, Small and
 Medium Enterprises Development Act, 2006.
 
 Included in S. No. 4(b) above is Rs. NIL being interest on amounts
 outstanding as at the beginning of the accounting year.
 
 The figures in brackets are in respect of the previous year.
 
 The Company has compiled this information based on intimations received
 from the suppliers of their status as Micro or Small Enterprises and /
 or its registration with the appropriate authority under the Micro,
 Small and Medium Enterprises Development Act, 2006.
 
 3.  Contingent liabilities
 
                                                 As at            As at
 
                                      31st March, 2011 31st March, 2010
 
                                              Rs. 000       Rs. 000
 
 a) Bills discounted not matured                32,586        337,804
 
 b) Income tax matters pending in appeal 
 including effect of similar matters in 
 respect of appeals decided in
 favour of the Company (refer note below)      318,365         66,176
 
 c) Central excise duty matters                 28,598         25,141
 
 d) Duty drawback demand pending in appeal
 (excludes interests, if any)                  260,357              -
 
 e) Sales Tax Matters pending in appeal -      240,325        178,943
 
 f) Claims against the Company not 
 acknowledged as debts (excludes
 interests, penalties if any, and
 claims which cannot be quantified)                667            665
 
 g) Civil liability / secondary civil 
 liability in respect of suits
 filed against the Company                       1,944          1,944
 
 In addition to above, the company has received a draft assessment order
 u/s 143 (3) read with Section 144C of the Income Tax Act, 1961
 proposing adjustments to income returned by the company by Rs.(OOO)
 735,054 on account of transfer pricing matters for the assessment year
 2007-08, the tax impact of which could range upto Rs. (000) 247,419
 (previous year Rs (000) 171,900), The company has filed objections
 with the Dispute Resolution Panel which are yet to be heard and only
 post this hearing a demand may potentially be raised. Pending hearing
 before the Dispute Resolution Panel, the management is of the opinion
 that the said amount is not payable.
 
 Notes:
 
 i) The names of the related parties under the appropriate relationship
 included in notes 5(b) and (c) above are as follows:
 
 Nature of Relationship     Name of the Party
 
 Holding Company            Cummins Inc.
 
 Fellow subsidiaries
 
 Name of the Party
 
 Cummins Engine (China) Investment Co. Ltd.
 
 Cummins, Belgium
 
 Cummins Brazil Limited
 
 Cummins Commercializadora S. de R.L. de C.V.
 
 Cummins De Los Andes S.A.
 
 Cummins Deutschland GmbH
 
 Cummins Diesel Italia Spa
 
 Cummins Diesel N.V.
 
 Cummins Diesel Recon
 
 Cummins Diesel Sales Corporation, Singapore
 
 Cummins DKSH (Singapore) Re. Ltd.
 
 Cummins DKSH (Thailand) Limited
 
 Cummins Emission Solutions
 
 Cummins Engine (Shanghai) Trading And Service Co.
 
 Cummins Firepower
 
 Cummins France, S.A.
 
 Cummins Generator Technologies (China) Co. Ltd.
 
 Cummins Ghana Limited
 
 Cummins Japan Limited
 
 Cummins Limited
 
 Cummins Middle East Fze
 
 Cummins Natural Gas Engines, Inc.
 
 Cummins Power Generation (China) Co., Ltd.
 
 Cummins Power Generation (S) Re. Ltd.
 
 Cummins Power Generation Limited
 
 Cummins Power Generation Limited, U.S.A.
 
 Cummins Power Generation, Australia
 
 Cummins Rocky Mountain LLC
 
 Cummins S De R L De C V
 
 Cummins Sales & Service Philippines, Inc.
 
 Cummins Sales and Service Korea Co., Ltd.
 
 Cummins Sales and Service Singapore Re. Ltd.
 
 Cummins Serbomonte
 
 Cummins South Africa (Pty.) Ltd.
 
 Cummins South Pacific Pty. Limited
 
 Cummins Spain S.L
 
 Cummins Technologies India Limited
 
 Cummins Turbo Technologies (US)
 
 Cummins Turbo Technologies Limited
 
 Cummins Westport
 
 Diesel Recon UK Depot
 
 Distribuidora Cummins S.A.
 
 Dongfeng Cummins Engine Company
 
 Komatsu Cummins Chile, Limited
 
 OOO Cummins
 
 Shanghai Cummins Trade Co. Ltd.
 
 Key Management Personnel Anant Talaulicar (Chairman and Managing
 Director)
 
 Raj Menon (Chief Operating Officer)
 
 Associate Cummins Generator Technologies India Limited
 
 Joint Venture Valvoline Cummins Limited
 
 Cummins Exhaust India Limited
 
 Cummins Reseach and Technology India Limited
 
 Enterprise with common Key Management Personnel Tata Cummins Limited
 
 (Anant Talaulicar)
 
 ii) Reimbursement of expenses incurred by related parties for and on
 behalf of the company and vice-versa have not been included above.  
 
 iii) The information given above, has been reckoned on the basis of
 information available with the Company and relied upon by the auditors.
 
 iv) Figures in brackets are in respect of the previous year.
 
 6.  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 includes income from Service solutions
 business.
 
 b) Secondary Segment
 
 Two secondary segments have been identified based on the geographical
 locations of customers: domestic and export.
 
 4.  Lease commitments Operating lease:
 
 There are no future minimum lease payments under these leases as at the
 end of the year.
 
 The minimum lease payments recognized in the statement of profit and
 loss (included under other expenses) for the year are Rs. NIL (previous
 year Rs. (000) 16,473).
 
 5.  The net exchange differences (gains/(losses)) arising during the
 year appropriately recognised in the profit and loss account is Rs.
 (000) 12,752 (previous year Rs. (000) 101,973).
 
 c) The Chairman, Managing Director and some senior employees are also
 entitled to participate in the Employees Stock Option plan of Cummins
 Inc. (the holding company), the cost of which is borne by Cummins Inc.
 
 6.  a) Other expenses include provision for doubtful debts Rs. (000)
 17,837 (previous year Rs. (000) 24,405).  b) Other Income includes
 commission income of Rs. (000) 541,863 (previous year Rs. (000)
 154,182).
 
 7. The Company has 50% interest in Joint Ventures namely Cummins
 Exhaust India Limited, Cummins Research and Technology India Limited
 and Valvoline Cummins Limited, incorporated in India. The following
 represents the Companys share of Assets and Liabilities as at 31st
 March, 2011 and Income and Expenses for the year ended on that date.
 
 2.  Defined Benefit Plans -
 
 The following figures are as per actuarial valuation, as at the Balance
 Sheet date, carried out by an independent actuary.
 
 i. Para 132 of AS15 (revised 2005) does not require any specific
 disclosures except where expense resulting from compensated absence is
 of such size, nature or incidence that its disclosure is relevant under
 Accounting Standard No. 5 or Accounting Standard No. 18. In the opinion
 of the management the expense resulting from compensated absence is not
 significant and hence no disclosures are prepared under various
 paragraphs of AS 15 (revised 2005).
 
 8.  Previous years figures have been regrouped / reclassified,
 wherever necessary.