i) Accounting convention
 
 The financial statements are prepared under the historical cost
 convention on accrual basis, in accordance with applicable accounting
 standards and relevant presentational requirements of the Companies
 Act, 1956.
 
 ii) Use of estimates
 
 The preparation of financial statements requires the management of the
 Company to make estimates and assumptions that affect the reported
 balance of assets and liabilities, revenues and expenses and
 disclosures relating to the contingent liabilities. The management
 believes that the estimates used in preparation of the financial
 statements are prudent and reasonable. Future results could differ from
 these estimates. Any revision to accounting estimates is recognised
 prospectively in the current and future periods.
 
 iii) Fixed / Intangible assets and depreciation /amortisation
 
 Fixed assets are stated at cost less accumulated depreciation. Cost of
 acquisition is inclusive of freight, duties, taxes and other incidental
 expenses. Exchange gain/loss on reinstatement of foreign currency
 liabilities arising on acquisition of fixed assets are capitalised as
 part of the acquisition cost and is amortised over the life of the
 respective asset.
 
 Depreciation is charged on a pro-rata basis at the straight line method
 rates prescribed in schedule XIV to the Companies Act, 1956. Assets
 covered under employee benefit schemes are amortised over a period of
 five years.  Assets costing upto Rs. 5000 each are fully depreciated in
 the year of purchase.
 
 Intangible assets, comprising of expenditure on model fee etc, incurred
 are amortised on a straight line method over a period of five years.
 Licenses for Technical know-how/export licenses have been amortised on
 a straight line basis upto June 30,2014 i.e forty two months (refer
 note 15).
 
 Leasehold land has been amortised over the period of lease.
 
 iv) Investments
 
 Current investments are stated at lower of cost and fair value computed
 categorywise. Long term investments are stated at cost less provision
 for permanent diminution, if any. Premium paid on purchase of debt
 securities is amortised over the period of maturity.
 
 v) Inventories
 
 Stores and spares and loose tools are stated at cost or under.
 
 Raw materials and components, finished goods and work in progress are
 valued at cost or net realisable value, whichever is lower.
 
 The basis of determining cost for various categories of inventories are
 as follows:-
 
 Stores and spares, loose tools, raw materials - Weighted average cost
 
 and components
 
 Materials in transit - Actual cost
 
 Work in progress and finished goods - Material cost plus appropriate
 share of labour,
 
 manufacturing overheads and excise duty
 
 vi) Employee benefits
 
 a) Defined contribution plan
 
 Provident fund. Superannuation fund and Employee'' State Insurance
 Corporation (ESIC) are the defined contribution schemes offered by the
 Company. The contributions to these schemes are charged to the profit
 and loss account of the year in which contribution to such schemes
 becomes due.
 
 b) Defined benefit plan and Long term Employee benefits
 
 Gratuity liability and long term employee benefits, are provided on the
 basis of an actuarial valuation made at the end of each financial year
 as per projected unit credit method. Actuarial gains or loss arising
 from such valuation are charged to revenue in the year in which they
 arise.
 
 vii) Foreign currency transactions
 
 Exchange differences are dealt with as follows:-
 
 Transactions in foreign currency are recorded at the exchange rate
 prevailing at the time of the transaction. All loss or gain on
 translation is charged to revenue in the year in which it is incurred.
 
 Monetary assets and liabilities denominated in foreign currency are
 restated at the rate prevailing at the year end and resultant gain or
 loss is recognised.
 
 In respect of forward contracts, the forward premium or discount is
 recognised as income or expense over the life of contract in the profit
 and loss account and the exchange difference between the exchange rate
 prevailing at the year end and the date of the inception of the forward
 exchange contract is recognised as income or expense in the profit and
 loss account.
 
 viii) Sales
 
 Sale of goods is recognised at the point of despatch of finished goods
 to the customers. Gross sales are inclusive of applicable excise duty
 and freight but are exclusive of sales tax. Services income is
 recognised when the services are rendered.
 
 - Scrap is accounted for on sale basis.
 
 ix) Warranty claims
 
 Warranty costs are provided on accrual basis on the total sales of two
 wheelers during the year, which are based on past experience of claims.
 
 x) Research and development expenses
 
 Research and development expenditure of a revenue nature is expensed
 out under the respective heads of account in the year in which it is
 incurred.
 
 xi) Taxation
 
 The provision for taxation is ascertained on the basis of assessable
 profits computed in accordance with the provisions of the Income-tax
 Act, 1961.
 
 Deferred tax is recognised, subject to the consideration of prudence,
 on timing differences, being the difference between taxable income and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods.
 
 xii) Provisions and contingent liabilities
 
 Provision involving substantial degree of estimation in measurement are
 recognised when there is a present obligation as a result of past
 events and it is probable that there will be an out flow of resources.
 Contingent liabilities are not recognised but are disclosed in the
 notes.
 
 xiii) Derivatives
 
 Foreign currency derivatives are used to hedge risk associated with
 foreign currency transactions. All open positions as at the close of
 the year are valued by marking them to the market and provision is made
 for losses, if any.