a.  Rights, preferences and restrictions attached to shares
 
 The Company has only one class of equity shares having a par value of
 Rs. 2 per share. Each shareholder is entitled to one vote per share
 held. The dividend proposed by the Board of Directors is subject to the
 approval of the shareholders in the ensuing Annual General Meeting,
 except in case of interim dividend. In the event of liquidation of the
 Company, the equity shareholders are eligible to receive remaining
 assets of the Company, after distribution of all preferential amounts,
 in the proportion to their shareholding.
 
 b.  Of the above equity shares, 141,372,000 (previous year 100,980,000)
 shares of Rs. 2 each are held by the Holding Company, Cummins Inc. USA
 
 * Exceptional item of Rs. 5,144 Lacs represents profit realised on
 divestment of the Company''s entire shareholding in Cummins Exhaust
 India Limited (CEIL).
 
 * The Company has issued Bonus shares in the ratio of 2:5 pursuant to
 approval by the members at the Extra Ordinary General Meeting held on
 September 9, 2011. Accordingly, Basic and Diluted Earnings Per Share
 (EPS) have been restated for the corresponding period to give effect to
 the said issue of Bonus shares, in accordance with Accounting Standard
 (AS) 20 Earnings Per Share notified under Section 211(3C) of the
 Companies Act, 1956.
 
 1 The amount of further interest 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 MSMED Act, 2006.
 
 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.
 
                                              As at             As at
                                     March 31, 2012    March 31, 2011
                                        Rs. in Lacs       Rs. in Lacs
 
 2.  Contingent liabilities
 
 a.  Bills discounted not matured               265               326
 
 b.  Income tax matters                       8,735             5,658
 
 c.  Central excise duty/service 
     tax matters                                456               286
 
 d.  Duty drawback demand pending 
     in appeal                                4,816             2,604
     (excludes interests, if any)
 
 e.  Sales Tax Matters pending in 
     appeal                                   6,872             2,403
 
 f.  Claims against the Company not 
     acknowledged as debts                        9                 7
     (excludes interests, penalties 
     if any, and  claims which 
     cannot be quantified)
 
 g.  Civil liability / secondary civil
     liability in respect of                     19                19
     suits filed against the Company
 
 3.  Inter corporate deposit includes an amount of Rs. NIL (previous
 year Rs. 2,750 lacs) placed with Cummins Technologies India Limited, a
 fellow subsidiary. Maximum amount due during the year Rs. 3,950 lacs
 (previous year Rs. 2,908 lacs).
 
 4.  Other expenses include provision for doubtful debts Rs. 354 lacs
 (previous year Rs. 178 lacs).
 
 5.  Operating Leases
 
 The company has entered into non-cancellable operating leases for
 warehouse and office premises. These lease arrangements range for a
 period between 12 months and 60 months with lock in periods between 11
 months and 24 months, which include both renewal and non-renewal
 leases. These leases also include escalation clauses.
 
 The minimum lease payments recognised in the statement of Profit and
 Loss (included under ''Rent'' in note no. 24) for the year amount to Rs.
 1,156 lacs (previous year Rs. 753 lacs).
 
 (i) Provision for Warranty
 
 The provision for warranty is on account of warranties given on
 products sold by the Company. The provision is based on the historic
 data and estimated figures. The timing and amount of the cash flows
 that will arise from these matters will be determined based on the
 receipt of claims from customers. Amount expected to be paid in 1 year
 is classified as Current.
 
 (ii) Provision for Statutory Matters
 
 The provisions for statutory matters are on account of legal matters
 where the Company anticipates probable outflow. The amount of provision
 is based on estimate made by the Company considering the facts and
 circumstances of each case. The timing and amount of cash flows that
 will arise from these matters will be determined by the relevant
 authorities on settlement of these cases.
 
 (iii) Provision for New Engine Performance Inspection (NEPI)
 
 The provision for New Engine Performance Inspection (NEPI) is on
 account of installation checks to be carried out by the Company at
 specified intervals after the equipment is commissioned. The provision
 is based on the historic data and estimated figures. The timing and
 amount of the cash flows that will arise from these matters will be
 determined based on the receipt of claims from dealers. Amount expected
 to be paid in 1 year is classified as Current.
 
 6. The Company has 50% interest in Joint Ventures namely Cummins
 Research and Technology India Limited, Cummins Svam Sales & Service
 Limited (w.e.f. January 17, 2012), Valvoline Cummins Limited and
 Cummins Exhaust India Limited (upto April 29, 2011), incorporated in
 India. The following represents the Company''s share of Assets and
 Liabilities as at 31st March, 2012 and Income and Expenses for the year
 ended on that date.
 
 Item (iii) includes the cost of accessories sold and cost of purchased
 components sold as spare parts (for the goods manufactured and sold by
 the Company), this activity being ancillary to the Company''s
 manufacturing activity.
 
 All of the above have been included in the line ''Contribution to
 provident and other funds'', in Note 22 of the Stateme of Profit and
 Loss.
 
 The overall expected rate of return on assets is based on the
 expectations of the average long term rate of return expected on
 investments of the fund during the estimated term of obligations.
 
 The estimates of future salary increases considered in actuarial
 valuation takes into account inflation, seniority, promotion and other
 relevant factors.
 
 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 Chairman and 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.
 
 iv) The information given above, has been reckoned on the basis of
 information available with the Company and relied upon by the auditors.
 
 v ) Figures in brackets are in respect of the previous year.
 
 7.  Segment Information
 
 a.  Primary Segment
 
 The Company''s operations predominantly relate to manufacture of
 Internal combustion engines, gensets and parts thereof (Engine 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.
 
 Notes:
 
 i) The Company''s tangible assets are located entirely in India.
 
 ii) Figures in brackets are in respect of the previous year.
 
 * Amount is below the rounding off norm adopted by the Company.
 
 8. The financial statements for the year ended March 31, 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 March 31, 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.