1. Corporate Information
 
 Kailash Auto Finance Ltd. Is a public company domiciled in India and
 incorporated under the provisions of the Companies Act, 1956. Its
 shares are listed on Bombay Stock Exchange in India. The company is
 engaged in the business of Leasing & Hiring of Vehicles, Machinery,
 Direct Marketing Agency, & Financial Consultancy etc. The company
 caters to domestic market only.
 
 2. Basis of preparation
 
 The financial statements of the company have been prepared in
 accordance with generally accepted accounting principles in India
 (Indian GAAP). The company has prepared these financial statements to
 comply in all material respects with the accounting standards notified
 under the Companies (Accounting Standards) Rule, 2006, (as amended) and
 the relevant provisions of the Companies Act, 1956. The financial
 statements have been prepared on an accrual basis and under the
 historical cost convention.
 
 The accounting policies adopted in the preparation of the financial
 statements are consistent with those of previous year, except for the
 change in accounting policies explained below.
 
 1.1 CONTINGENT LIABILITY AND NOTES
 
 1. Contingent Liability not provided for:       As at          As at
                                            31.03.2012     31.03.2011
 
 (a) Income & Interest Tax demands 
 distputed by the company (Amount  
 already  paid Rs. 57,98,482/-)           58,37,482.00   58,37,482.00
 
 (b) Claims against the company 
 not acknowledged as debt                          Nil            Nil
 
 (c) Service Tax on Hire Purchase and       Amount not     Amount not 
 Lease transaction not realized and        ascertained    ascertained
 in view of interim stay of hon''ble         
 paid  Madras High Court for the 
 period up to
 
 (d) Disputed penalty liabilities 
 in legal cases                            7,00,213.00    7,00,213.00
 (Amount already paid Rs. 3,55,000/-)
 
 (e) Income Tax Demand for the F.Y. 
 2003-04 (Matter pending                   4,45,727.00    4,45,727.00 
 with ITAT)
 
 2. Stock in hire repossessed include 14 cases amounting to Rs.
 18,17,000/- which are legaly disputed and their recovery is pending
 before the legal authorities.
 
 3. The contingent liabilities as mentioned in point no. 1 & 2 above
 except disputed liabilities on account of Income Tax & other statutory
 taxes had been assigned to M/s Kailash Motors Finance Pvt. Ltd.
 Jabalpur vide assignment deed executed on 13-02-2012.
 
 4. Segment Reporting
 
 The company is engaged primarily in the business of financing and
 related services and accordingly there are no separate reportable
 segments as per accounting standard AS-17- segment reporting issued by
 ICAI.
 
 5. (a) Related Parties
 
 Relation                     Name of the Party
 
 (I) Subsidiaries             Company does not have any subsidiaries.
 
 (ii) Joint Venture Company   Company does not have any joint venture
 
 (iii) Other related 
 Parties with whom
 transactions entered 
 during the year              1. Commercial Automobiles Pvt.
 Ltd.
                              2. Commercial Body Builders
 
                              3.  Kailash Motyors Finance Pvt. Ltd.
 
 (iv) Key Management 
 Perssonel                    1. Mr. Rahul Agrawal, Director 
                              
                              2. Mrs. Shalini Gupta, Director  
                              
                              3. Mr. Kailash Gupta, Director
 
                              4. Mr. Rajesh Dhirawani, Director
 
 
 6. Expenditure in foreign currency : Nil (Previous Year - Nil)
 
 7. Income in foreign currency : Nil (Previous Year - Nil)
 
 8. Fixed deposits repayment due within one year is Rs. 3,10,880/- 
 (Previous Year Rs. 3,14,891/-) and all due amount deposited in SBI
 Escrow A/c
 
 9. Market value of quoted investment as at 31-03-2012 is Rs. - Nil
 
 10. Certain Balances of parties under sundry debtors, creditors, loans
 & advances etc. are under confirmations/reconciliation.
 
 11. There are no dues payable to Small Scale Industries undertaking.
 
 12. In the opinion of the Board, the Current Assets, Loans and Advances
 have a value on realisation in the ordinary course of business at least
 equal to the amount at which they are stated in the balance sheet.
 
 13. During the previous year excess MAT provision for the F Y 2009-10
 i.e. Rs.12,90,488/- (2158950 - 868462) has been creduted in P & L A/c
 under the head Extraordinary Interns.
 
 14. Balance sheet abstract and company''s general business profile as
 per Part IV to schedule VI of the Companies Act, 1956 shown in Annexure
 A.
 
 15. Previous year figures have been regrouped, rearranged and
 reclassified whereever necessary to make them comparable with this
 year''s figures.