1.  CONTINGENT LIABILITIES:
 
 i) Income Tax matters under appeal Rs. 112.42 lacs (Previous period
 Rs.112.42 Lacs ) ii) Sales Tax disputed by the Company Rs.96.16 lacs
 (Previous period Rs.68.02 lacs) iii) Entry Tax disputed by the Company
 Rs.17.14 lacs (Previous period Rs. 0.72 lacs) iv) Excise Duty claims in
 dispute Rs.55.49 lacs (Previous period Rs. 195.14 lacs) v) Labour
 matters Rs. 45.07 lacs (Previous period Rs. 63.24 lacs)
 
 2.  Details of Capactiy and Production :
 
 i) The licenced capacity disclosed is as per the capacity indicated in
 the prescribed memorandum filed with the Department of Industrial
 Development (Secretariat of Industrial Approvals) in terms of
 notification no.477(E) dated July 25, 1991.
 
 ii) Installed capacity is as certified by the management and relied on
 by the auditors as this is a technical matter.
 
 iii) Production includes Nil (Previous period Nil ) vehicles
 scrapped/dismantled.
 
 iv) The company has manufactured and sold Nil ( Previous year Nil )
 
 v) The entire Manufacturing facility of the company has been sold after
 30.09.2010.
 
 3. Research and Development expenses aggregating Rs. 2.16 lacs have
 been incurred by the Company which are disclosed under appropriate
 account heads. (Previous period Rs. 19.37 lacs)
 
 4. The net exchange difference arising during the period recognised
 appropriately in the profit and loss account - net loss - Rs. Nil ;
 (Previous period net loss Rs. 4.37 lacs )
 
 5. The deferred tax liability of Rs.24.43 Lacs (Previous period Rs.
 352 lacs) is in respect of provision for Depreciation.
 
 The deferred tax asset of Rs.24.43 Lacs ( Previous period Rs. 352 lacs)
 is in respect of carried forward tax losses.
 
 6. Details of provisions and movements in each class of provisions as
 required by the Accounting Standard on Provisions, Contingent
 Liabilities and Contingent Assets (Accounting Standard - 29):
 
                                                      (Rs. Lacs)
 
 Particulars                          Product      Free Service
                                      Warranty     Charges
 
 Carrying Amount as at 1st October, 
 2009                                    Nil          Nil
 
                                         Nil        (19.00)
 
 Additional Provision made during the 
 period                                  Nil          Nil
 
                                         Nil        (19.00)
 
 Amounts used during the period          Nil          Nil
 
                                         Nil        (60.00)
 
 Unused amounts reversed during the 
 period                                  Nil          Nil
 
                                         Nil          (-)
 
 Carrying Amount as at 30th September, 
 2010                                    Nil          Nil
 
                                         Nil        (19.00)
 
 Brief description of the nature of the obligation and the expected
 timing of any resulting outflows of economic benefits :-
 
 Product Warranty & Free Service Charges
 
 Estimated product warranty cost and free service charges are accrued at
 the time products are sold, based on past experience to be discharged
 over a period of 12 months from the date of sale.
 
 7. (a) Amount payable to Micro and Small Enterprises (to the extent
 identified by the Company from available information) as at 30th
 September, 2010 is Rs.175.50 lacs (including unpaid amounts- principal
 amounts-Rs. 175.50 lacs and interest accrued and remaining unpaid -
 Rs.Nil ), (Previous period Rs.257.76 lacs) (including unpaid
 amounts-principal amount-Rs.257.76 lacs and interest accrued and
 remaining unpaid Rs.Nil).
 
 (b) Amount of interest payments made to suppliers registered under the
 Micro, Small and Medium Enterprise Development Act, 2006 beyond 45 days
 during the period 1 st October, 2009 to 30th September, 2010 is Rs.Nil
 lacs.(Previous period Rs.Nil)
 
 8. Related Party Disclosures
 
 A) Name of related party and nature of relationship where control
 exists :
 
 1 Company having Significant Influence Kinetic Engineering Ltd.
 
 (Expect for the period 01/10/2009
 to 04/01/2010 company is a holding company)
 
 2   Companies under common control
 
 AjinkyaAuto Fab Ltd.
 Ajinkya Holdings Pvt Ltd
 Kinetic Communications Ltd.
 Micro Age Instruments Pvt. Ltd.
 Kinetic Marketing & Services Ltd.
 JHS Tyaigene Electrical Co. Pvt. Ltd.
 Ducati Energia (India) Pvt. Ltd.
 Jaya Hind Sciaky Ltd.
 
 3 Associate Company Mahindra Two wheelers Limited
 
 4 Key Management Personnel Mr.Arun H.Firodia
 
 Mrs.Sulajja Firodia Motwani
 
 5 Relative of Key Management Personnel Mr. Ajinkya Firodia
 
 Mrs.Vismya Firodia Bakshi Mrs.Jayashree Firodia
 
 * Enterprises over which Key Management Personnel and their relatives
 are able to exercise significant influence
 
 9. As the Companys business activity falls within a single primary
 business segment viz., Two wheelers and its parts and is a single
 geographical segment, the disclosure requirements of Accounting
 Standard (AS-17) Segment Reporting issued by The Institute of
 Chartered Accountants of India are not applicable.
 
 10. After completing the financial restructuring, the Company has
 finalised plans for trading activity in respect of Postal Soleckshaw
 a light multi-utility power driven 3 wheeler. The company is further
 planning processing activity, by setting up manufactuing facility at
 Chinchwad, Pune. Having regard to the above and the financial support
 from the promoters of the Company, the accounts of the Company have
 been prepared on a Going Concern basis.
 
 11. The Company purchases components, in the ordinary course of
 business, from JHS Taigene Electrical Co. Pvt.Ltd (JHST), Ducati
 Energia India Private Limited (Ducati) and Champ Engineering Private
 Limited (Champ), a Private Limited Companies in which a director of the
 Company is a director. During the previous/ current period, due to
 paucity of funds, credit terms of suppliers in general had been
 extended. As such, the Company has purchased components worth Rs.2.16
 lacs ( including Rs.8.08 lacs in the previous period ) from JHST,
 Ducati and Champ on credit basis, i.e.  on the terms which are more
 favourable to the Company. As per the provision of section 297 of the
 Companies Act, 1956, if approval of the Central Government is not
 obtained for such contract, the same is voidable at the Board of the
 Directors of the Comapany. However, as JHST, Ducati and Champ has
 agreed to these revised terms and the same are in the interest of the
 Company, the Board has not treated the contracts as void.
 
 12. Other Receivables includes amount retained by the purchaser for the
 sale of Fixed Assets.The amount is outstanding for more than six
 months, however as per the aforesaid Agreement, amount shall be
 released by the purchaser subject to condition stated therein at the
 end of 3 years from the date of execution of Agreement.
 
 The amount is outstanding for more than six months, however as per the
 aforesaid Agreement amount shall be released by purchaser, subject to
 condition stated therein at the end of 3 years from the date of
 execution of the Agreement.
 
 13 Details of Employee Benefits as required by the Accounting Standard
 15 (Revised) Employee Benefits are as follows-:
 
 (A) Defined Contribution Plan
 
 Amount recognized as an expense in the Profit and Loss Account in
 respect of Defined Contribution Plans is Rs. 20.64 lacs
 
 (B) Defined Benefit Plan
 
 i) Actuarial gains and losses in respect of defined benefit plans are
 recognized in the Profit & Loss Account.
 
 ii) The Defined Benefit Plans comprise of Gratuity. Gratuity is a
 benefit to an employee based on 15 days last drawn salary for each
 completed year of service.
 
 14 Previous periods figures have been regrouped/recast wherever
 necessary to confirm to this periods classification.