1.  Contingent Liabilities
 
 (a) Income-tax, Sales-tax, Customs and Excise Duty matters pending in
 appeals etc. Rs. 16840.23 lakhs (Previous year Rs. 16831.09 lakhs) (net
 of Bank Guarantee of Rs 3.00 lakhs included in (b) below (Previous year
 Rs. 3.00 lakhs)
 
 (b) Outstanding guarantees furnished by Bankers Rs. 10.64. lakhs
 (Previous year Rs.10.64 lakhs).
 
 (c) Claims against the Company not acknowledged as debts Rs. 12919.22
 lakhs (Previous year Rs.  6853.22 lakhs).
 
 2.  Unexecuted capital commitments (net of advances) Rs. 51.35 lakhs
 (Previous year Rs. 1160.58 lakhs).
 
 3.  Balances of some of the sundry debtors, creditors, lenders, loans
 and advances are subject to confir- mation from the respective parties
 and consequen- tial adjustments arising from reconciliation, if any.
 The management however is of the view that there will be no material
 adjustment in this regard.
 
 4.  The Company is in the process of restructuring/re- vival of its
 business under the aegis of BIFR which inter alia includes finalization
 of the product plan. The process of possible utilization of slow /
 non-moving items of inventory will be undertaken upon - finaliza- tion
 of the product plan and the restructuring/revival plan. Pending such
 ascertainment/ determination the management has considered the
 inventories except finished goods at cost of Rs. 8322.94 lakhs. Requi-
 site accounting effect, if any, will be given upon such ascertainment/
 determination and approval of revival plan.
 
 5.  Interest in respect of Long Term Loans/Debentures/ Deferred Credits
 (for acquisition of Fixed Assets) availed / issued during the financial
 years 1982-83 to 1984-85 had been capitalised for the full period of
 Long Term Loans/Debentures/Deferred Credits in the year of
 availment/issue as per practice prevailing then.  No such
 capitalisation has since been made. In view of such capitalisation, the
 charge to Profit and Loss Account on account of depreciation is higher
 by Rs.  9.74 lakhs (Previous Year Rs. 6.49 lakhs).
 
 6.  Expenditure on Research & Development Activities during the period
 amounted to Rs. 410.07 lakhs (pre- vious year Rs. 211.66 lakhs) has
 been charged to P&L Account.
 
 7.  The Company became a Sick Industrial Company within the meaning of
 Section 3(1)(O) of Sick Indus- trial Companies (Special Provisions)
 Act, 1985 (SICA) due to erosion of its net worth and the Company - was
 declared a Sick Industrial Company by BIFR on 8th May, 2007.The Company
 which restarted its op- erations from April, 2007 is working on the
 develop- ment of various new products and technologies and production
 of new generation 4-stroke scooter has since commenced. During the year
 the Company has also submitted its Draft Revival Scheme to BIFR. In
 view of this, the accounts have been prepared on the basis of going
 concern.
 
 8.  A.  In respect of Rs. 945 lakhs recoverable by the
 
 Company from Esslon Synthetics Limited (ESL) against the sale
 consideration for transfer of undertakings, other debts and amounts, no
 pay- ment has been received. The said sum of Rs.  945 lakhs was to be
 received by the Company on or before 31.03.1992 which was guaranteed by
 Saraswati Trading Company Limited (STCO).
 
 Considering the settlement reached with STCO and the decree of the
 Hon''ble High Court of Delhi dated 23.02.2011, Rs 746.44 lakhs (previous
 year – Nil) has been written off.
 
 B.  The outstanding dues / advances (Net) due from VCCL Ltd. (promoted
 by the Company) is Rs.  1525.08 lakhs. Based on the available assets
 with VCCL and considering the possible recov- ery therefrom, Rs.
 1320.15 lakhs (previous year – Nil) has been provided for.
 
 C.  Miscellaneous loans and advances (doubtful of recovery) amounting
 to Rs. 612.09 lakhs (previ- ous year – Nil) written off.
 
 D.  Provision for amount of Rs. 12.00 lakhs (previous
 
 year – Nil) due from Shri Sita Ram Singhania (in litigation for around
 15 years).
 
 9.  Restructuring of Loans
 
 (a) The Company has executed with the Secured Lenders (SL) on 28th
 March, 2005 a Multipartite Agreement (MPA). The Company is in default
 towards payment of interest since December 2006 and principal amount
 since March 2007 to the SL. Applicable penal interest has been pro-
 vided on the above overdues. The Draft Revival Scheme submitted to BIFR
 inter-alia takes into consideration the dues of the SL.
 
 (b) In terms of the MPA the outstanding amounts are repayable to the SL
 as per the repayment schedule over eight years alongwith interest at
 increasing rate (on yield to maturity basis). Ac- cordingly, the
 Company has provided interest at the rate specified for the financial
 period in the MPA and not at the Yield to Maturity (YTM) rate.  The
 amount of interest so provided for the fi- nancial period ended 31st
 March, 2011 amounts to Rs 2590.73 lakhs. As compared to the YTM rate,
 there is an excess provision of Rs. 239.20 lakhs for the year
 (cumulative short provision Rs. 125.34 lakhs)
 
 10.  Deferred Taxation
 
 In terms of para 26 of AS-22 Accounting for Taxes on Income issued by
 the Institute of Chartered Accountants of India, the Company has
 reviewed the Deferred Tax Assets (DTA), recognized as on 31st March,
 2011 at the Balance Sheet date. In the context of - uncertainty of
 generation of profits in near future, Deferred Tax Assets has not been
 recognized.
 
 11.  Disclosure in pursuance of Accounting Standard 15 (Revised)
 Employees Benefit issued by the ICAI During the year, Company has
 recognized the fol- lowing amounts in the financial statements:
 
 Defined Benefit Plan
 
 The employees gratuity fund is partly managed by Life Insurance
 Corporation is a defined benefit plan.  The present value of obligation
 is determined based on actuarial valuation using the Projected Unit
 Credit Method, which recognises each period of service as giving rise
 to additional unit of employee benefit en- titlement and measures each
 unit separately to build up the final obligation. The obligation for
 leave encashment is recognized in the same manner as gratuity.
 
 Note : The estimates of rate of escalation in salary considered in
 actuarial valuation, take into account inflation, seniority, promotion
 and other relevant factors including supply and demand in the
 employment market. The above information is certified by the actuary.
 
 12. The Company had made an assessment as at 31st March 2011 for any
 indication of impairment in the carrying amount of the Company''s fixed
 assets and Capital Work in Progress. The impairment loss of Rs.  435.37
 lakhs has been debited to profit and loss account.
 
 13.  In the absence of information from Sundry Creditors regarding
 status under The Micro, Small and Medium Enterprises Development Act,
 2006, the liability of interest cannot be reliably estimated, nor
 required disclosures can be made.
 
 14.  Related Party Disclosures 
 
 (i-a) Associates/ Joint Venture
 
 VCCL Limited, Trident Auto Components (P) Ltd.
 
 (i-b) Key Management Personnel
 
 Shri Deepak Singhania -       Chairman & Managing Director, 
 
 Shri. L K Singhania   -       Wholetime Director, 
 
 Shri Sanjeev Shriya   -       Wholetime Director, 
 
 Shri Anurag Singhania -       Wholetime Director, 
 
 Shri R K Srivastava   -       Wholetime Director.
 
 (i-c) Companies controlled by Directors/ Relatives
 
 Smart Chips Limited, Suryodaya Investment & Trading. Co. Limited,
 Mahalaxmi Holdings Limited, Payal Investments & Trading Limited, Mimosa
 Finance & Trading Limited, Bina Fininvest P. Limited, Ginideep Finance
 & Investments P. Limited, Gold Rock Investments Limited, Gold Rock
 Metals Limited, Gold Rock World Trade Limited, Blue Point Leasing
 Limited, Gold Rock Agro-Trading Limited, Tridhar Finance & Trading
 Limited, Picanova Investments P.  Limited, Inlac Granston Limited,
 Shree Dhan Sharda Mercantile P Limited, B.S. Infotech P.  Limited, Ind
 Hi-Tech Enterprises Pvt. Limited, R.S. Softech (I) Limited, Saryu
 Investment & Trading P. Limited, Panki Roadlines Pvt.  Limited, Sugata
 Investment Limited, Inlac Trading & Agencies P. Limited, Gold Rock
 Agrotech Limited, Syscom Corporation Limited, Seattle Ontime P. Limited
 
 (ii) There is no provision for doubtful debts or amounts written off or
 written back during the period in respect of dues from or to related
 parties, except amounting to Rs. 1320.15 lakhs from VCCL Limited has
 been provided.
 
 15.  Business Segment
 
 (a) Primary (Business) Segment
 
 The operations of the Company relate to only one segment viz. Motorized
 Two-Wheelers.
 
 (b) Secondary (Geographical) Segment
 
 1.  Secondary segment reporting is on the basis of geographical
 location of the customers. The Company''s revenue during the period by
 geo- graphical markets are :
 
 Domestic Sales Rs. 13853.54 lakhs (Previous Year Rs. 5457.15 lakhs)
 
 and Export sales Rs. 20652.30 lakhs (Previous Year Rs. 10155.88 lakhs)
 
 2.  Geographical segmentwise loss and capital employed are not given
 since the production unit and administrative expenses are common.
 
 16.  Remuneration to Auditors
 
 (a) Statutory Audit Fee Rs. 13.50 lakhs (Previous Year Rs. 8.0 lakhs)
 
 (b) Tax Audit Fee Rs. 0.80 lakh (Previous Year Rs. 0.80 lakh).
 
 (c) Other Services – Certification and other Jobs Rs. 9.50 lakhs
 (Previous Year Rs. 9.00 lakhs).
 
 17.  Remuneration to Cost Auditors
 
 Audit Fee Rs. 0.48 lakh (Previous Year Rs. 0.32 lakh).
 
 18.  Information pursuant to the provisions of paragraphs 3, 4C and 4D
 of Part II of Schedule VI to the Companies Act, 1956.
 
 19.  Figures of this period and previous year are eighteen months and
 twelve months respectively and hence they are not comparable. Figures
 for the previous year have been regrouped and wherever necessary to
 make them comparable.
 
 20.  Figures in brackets pertain to previous year.