1.  Consequent to an agreement dated 31st March, 2000 between the
 Company and ICICI Bank Ltd (ICICI), the company sold 3,450,000 equity
 shares of Hughes Communication India Limited (HCIL) to Escorts Motors
 Limited (EML), ICICI thereafter subscribed to the equity share capital
 of EML to hold 49 % of its total equity share capital. Under the terms
 of the agreement, the Company had given an assurance to ICICI of a
 minimum return compounded annually for a period of four years.
 Subsequent to 31st March, 2004, the Company has in terms of earlier
 agreement agreed to puchase the 49% holding in EML from ICICI and had
 advanced Rs. 68 crores. The transfer of the shares in favour of the
 Company is awaited pending final settlement with ICICI.
 
 2.  The Scheme of Arrangement and Compromise filed before the Honble
 Delhi High Court to bail out the fixed deposit holders and creditors of
 Escorts Finance Limited (EFL) is still pending. The Honble High Court,
 Delhi had constituted a Hardship Committee to settle payments to fixed
 deposit holders of EFL who are facing hardship such as medical,
 marriage, education and others. On 24th May, 2010 the High Court has
 directed the Hardship Committee to offer maturity value of fixed
 deposit amount as stated in the face of fixed deposit receipt (Maturity
 Value) in full and final settlement of the fixed deposit liability of
 EFL towards the FD Holders. Accordingly Hardship Committee had sent
 letters to all FD Holders on 7th June, 2010 and also reminder letter on
 20th July, 2010, 30th September, 2010 and also given public notice in
 the News paper on 23rd October, 2010 asking FD holders to submit
 documents so that Maturity value of their FD maybe paid. In accordance
 with the directions of the Honble High Court of Delhi on 24th May 2010
 your Company has also allotted 6,601,050 equity shares to Hardship
 Committee for the purpose of selling the same in the open market,
 realising the proceeds thereof and its distribution to the FD holders
 to settle their outstanding liability (Maturity Value).
 
 The Hardship Committee is in the process of paying the FD holders in
 accordance with these directions.
 
 3.  The Company revalued its freehold land as on 1st September, 2006
 and amount added on revaluation was Rs.387.64 crores, further the
 Company has revalued its all land & buildings as on 1st April, 2009 and
 amount added on revaluation is Rs. 672.72 crores. Both revaluations
 were carried out by reputed independent valuer.
 
 4.  During 2008 the Haryana State Government introduced Haryana Tax on
 Entry of Goods into Local Area Act, 2008 (Entry Tax) by repealing the
 Haryana Local Area Development Tax Act, 2000 (HLADT). The said Act
 was held unconstitutional by the Honble Punjab & Haryana High Court in
 their judgment dated 1st October, 2008. The State Government of Haryana
 has preferred an appeal before the Honble Supreme Court which is
 pending for adjudication before the Constitutional Bench.  Based on the
 legal advice received, the Company has written-back an amount of Rs.
 15.53 Crores in respect of the provisions made towards Entry Tax in
 earlier years and no further provision on this account is considered
 necessary.
 
 5.  The Company has issued 3,611,112 Equity Shares of Rs. 10 each
 fully paid up at a price of Rs. 84.50 per share (including premium of
 Rs. 74.50 per share) in favour of the trustees of Escorts Employees
 Benefit & Welfare Trust under Employee Stock Option Scheme, 2006 on 9th
 November, 2009. Accordingly the Company has so far granted 554,500
 options to its employees, in accordance with the guidelines issued by
 SEBI, out of which 221,500 options have been forfeited till 30th
 September, 2010 and balance 268,000 options have been exercised leaving
 65,000 options pending for exercise.
 
 6.  The Company has executed an Agreement to Sell for transfer of 20
 acres of land at Plot No. 219, Sector 58, Balabgarh, Haryana for a
 consideration of Rs. 7.00 crores. The said transfer is subject to
 necessary approval from HUDA and accordingly the consideration amount
 of Rs. 7.00 crores is being treated as advance.
 
 7. The Company has not received information from vendors regarding
 their status under the Micro, Small and Medium Enterprises Development
 Act, 2006 and hence disclosure relating to amounts unpaid as at the
 year end together with interest paid/payable under this Act & as
 required by Schedule VI of Companies Act, 1956 have not been given.
 
 8.  Clause 32 disclosure - Details as per Annexure - II
 
 9.  Accounting for Leases (AS-19). Details as per Annexure - III
 
 10.  Figures have been rounded off to the nearest lac rupees. Previous
 year figures have been regrouped/rearranged wherever necessary.