(1) GENERAL INFORMATION
 
 Goodyear India Limited (the Company), an existing company under
 the Companies Act - 1956, is a step down subsidiary of The Goodyear
 Tire & Rubber Company, Akron, Ohio, USA (GTRC). The Company was
 originally registered and incorporated as a private company on October
 10, 1922 and converted into a Public Company on March 24, 1961. The
 Company is engaged in the business of manufacturing and sale of tyres,
 tubes, flaps with manufacturing facility at Ballabgarh, Haryana, India.
 The Company is presently listed with the Mumbai stock exchange (BSE
 Limited).
 
 * During the year 2003, a demand of Rs. 662 lakhs besides interest, was
 raised by the Haryana Urban Development Authority (HUDA) towards
 external development charges (EDC) which was challenged by the Company.
 During June 2009, the court of Hon''ble Additional Civil Judge (Senior
 Division) (First Court) passed an interim order whereby the Company was
 directed to pay interest @ 10% for delayed payment amounting to Rs. 5
 lakhs and which was duly paid. In the year 2010 the entire demand had
 been set aside by the First Court. However, HUDA challenged the same
 before the Court of Hon''ble District & Session Judge, Faridabad. In
 December 2011 the said appeal was dismissed by Hon''ble District and
 Session Judge. HUDA has further gone into appeal before the Hon''ble
 High Court of Punjab and Haryana, to our knowledge the same has not yet
 been admitted.
 
 A. Haryana Local Area Development Tax (HLADT)
 
 In the year 2007 Hon''ble Punjab & Haryana High Court at Chandigarh,
 on a reference from the Hon''ble Supreme Court of India, had held the
 Haryana Local Area Development Tax (HLADT) as unconstitutional.
 Subsequently in the year 2008 the state of Haryana introduced
 Haryana Tax on Entry of Goods Into Local Area Act, 2008 (Entry Tax)
 by repealing the Haryana Local Area Development Tax Act, 2000 and the
 same was also held unconstitutional by the Hon''ble Punjab & Haryana
 High Court.
 
 Earlier based on the legal opinion obtained by the Company and
 management''s assessment, provision towards liability for Haryana
 Local Area Development Tax (HLADT) for the periods prior to March 2008
 aggregating to Rs. 540 lakhs was written back during the year 2008. The
 amount already paid for HLADT till December 2006 and expensed in
 earlier years is Rs.1,938 lakhs.
 
 Pursuant to an interim order of Hon''ble Supreme Court in October
 2009, there is a stay on recovery of tax with a direction to assessees
 for filing their returns of tax and giving undertaking that in the
 event of their losing the matter, they will deposit the tax along with
 the interest at a rate which will be determined by the court. During
 the year 2010 on the matter being heard by a bench of five Hon''ble
 judges of the Hon''ble Supreme Court, it was requested to Hon''ble
 Chief Justice of India to refer the matter to a suitable larger bench
 for deciding the constitutional validity of the levy The larger bench
 of Hon''ble Supreme Court is yet to be constituted. However, based on
 legal opinion obtained by the Company and management assessment, no
 provision for HLADT and Entry tax has been considered necessary
 
 ** These represent the best possible estimates arrived at on the basis
 of available information. The uncertainties and possible reimbursements
 are dependent on the outcome of the different legal processes which
 have been invoked by the Company or the claimants as the case may be
 and therefore cannot be predicted accurately. The Company engages
 reputed professional advisors to protect its interests and has been
 advised that it has strong legal positions against such disputes.
 
 (2) Disclosures under Accounting Standard 18:
 
 i) List of related parties with whom the Company had transactions
 during the year.  Ultimate holding company :
 
 The Goodyear Tire & Rubber Co., Akron, Ohio, USA. (since November 29,
 2011) Holding company:
 
 The Goodyear Tire & Rubber Co., Akron, Ohio, USA. (until November 28,
 2011) Goodyear Orient Company (Private) Ltd., Singapore (since November
 29, 2011)
 
 Fellow subsidiaries:
 
 i) Goodyear SA (Luxembourg)
 
 ii) Goodyear Middle East, FZE
 
 iii) Goodyear Dalian Tire Company Limited
 
 iv) Goodyear Dunlop Tires France
 
 v) Goodyear (Thailand) Public Company Limited
 
 vi) Goodyear do Brasil Produtos de Borracha Ltda.
 
 vii) Goodyear De Colombia S.A
 
 viii) PT. Goodyear Indonesia Tbk
 
 ix) Goodyear South Africa (Pty.) Limited
 
 x) Goodyear Philippines Inc.
 
 xi) Goodyear Singapore Tyres
 
 xii) Goodyear & Dunlop Tyres (NZ) Limited.
 
 xiii) Goodyear Marketing & Sales SDN Bhd
 
 xiv) TC Debica SA
 
 xv) Goodyear & Dunlop Tyres (Australia) Pty Limited.
 
 xvi) Goodyear South Asia Tyres Private Limited
 
 xvii) Goodyear Earthmover Pty Limited.
 
 xviii) Goodyear International Corporation
 
 xix) Goodyear Dunlop Tires Operations SA
 
 xx) Compania Goodyear Del Peru SA
 
 xxi) Goodyear Nippon Giant (Japan NGT)
 
 xxii) Goodyear SA R&D (Luxembourg)
 
 xxiii) Goodyear Chile S.A.I.C
 
 xxiv) Goodyear Dunlop Tires Germany 
 
 Key management personnel:
 
 i) Mr. Rajeev Anand
 
 ii) Mr. Yashwant Singh Yadav
 
 iii) Mr. Mark C Ravunni (Effective July 16, 2012)
 
 iv) Mr. Jean Philippe Lecerf (upto July 15, 2012)
 
 (3)Leases
 
 Cancellable : The Company''s cancellable operating lease arrangement
 mainly consists of residential premises, warehouses and offices taken
 on lease for periods between 1-10 years. Terms of lease include terms
 for renewal, increase in rents in future periods and terms of
 cancellation.
 
 (4) The management is of the opinion that its international
 transactions with associated enterprises have been undertaken at
 arms'' length basis at duly negotiated prices on usual commercial
 terms. The Company has submitted the Accountant''s Report in form 3CEB
 upto the financial year ended on March 31, 2012 as required under
 section 92E of the Income Tax Act, 1961. In respect of the proposed
 transfer pricing adjustments suggested by the Assessing Officers in the
 Assessments already completed, the matters are pending before the
 Appelllate Authorities / Dispute Resolution Panel. Based on expert
 opinion the management is of the view that in all likelihood there will
 be no material liability.
 
 (5) Disclosures under the Micro, Small & Medium Enterprise Development
 Act, 2006 (as amended in Schedule VI to the Companies Act, 1956 vide
 notification dated November 16, 2007) based on the information
 available with the company:
 
 i) Delayed payments due as at the end of accounting year on account of
 Principal - Rs. Nil (Nil) and Interest due thereon - Rs. Nil (Nil)
 
 ii) Total interest paid on all delayed payments during the year under
 the provisions of the Act - Rs. Nil (Nil)
 
 iii) Interest due on principal amounts paid beyond the due date during
 the year but without the interest amounts under this Act - Rs.  Nil
 (Nil)
 
 iv) Interest accrued but not due- Rs. Nil (Nil)
 
 v) Total Interest Due but not paid - Rs. Nil (Nil)
 
 (6)In accordance with AS-15 (revised) Employee Benefits, the
 Company has calculated the various benefits provided to employees as
 under:
 
 A. Defined Contribution Plans
 
 a) Superannuation Fund
 
 b) Employer''s Contribution to Employee state insurance (State Plan)
 
 c) Employer''s contribution to Employee''s Pension Scheme 1995. *
 (State plan)
 
 (7) Stock and book debts are subject to a maximum charge of Rs.3,500
 lakhs (Rs. 3,500 lakhs) for all credit facilities / guarantees
 sanctioned by BNP Paribas Bank.
 
 (8) In the Board Meeting held on Feb. 21, 2011, the Board considered
 and approved the sale of a part of land located in Ballabgarh, subject
 to obtaining of necessary approvals for such sale. In the absence of
 said approvals, pursuant to a circular resolution passed by the Board
 of Directors on June 21, 2012, the Board considered and terminated the
 process of sale. During October, 2012 the Company has appropriately
 dealt with and replied to a notice received for a full refund of
 deposit along with interest and damages. There has not been any
 development thereafter.
 
 (9) The financial statements for the year ended December 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 December 31, 2012 are prepared as per Revised Schedule
 VI. Accordingly, the previous year figures have also been regrouped and
 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. Figures in brackets, wherever given are in
 respect of previous year unless stated otherwise.