1.  CONTINGENT LIABILITES
 
                                    Year ended       Year ended
                                    31.03.2011       31.03.2010
                                 (Rs. in lacs)   ( Rs. in lacs)
 
 i) a) Bank Guarantee/Margin 
 Money Guarantee                        217.83           208.00
 
 b) Bills Discounted with the 
 Company''s bankers                       16.90              Nil
 
 ii) Penalty u/s 51(7) (b) of Punjab Value Added Tax Act, 2005 of Rs.
 2,20,057/- (Previous year Rs.2,20,057/-) was disputed by the Company
 for which appeal has been filed with Dy. Excise & Taxation Commissioner
 (Appeals), Patiala. 
 
 iii) Penalty under U.P. Trade Tax of Rs.1,98,108/-(Previous year
 Rs.1,98,108/-) was disputed by the Company for which appeal has been
 filed with Assistant Commissioner (Appeals), U.P. Trade Tax Act, Noida.
 The Company has taken legal and other steps necessary to protect its
 position in respect of the claims mentioned at point no. (ii) & (iii)
 which in its opinion, based on legal advice are not expected to
 devolve. It is not possible to make any further determination of the
 liabilities which may arise or the amounts which may be refundable in
 respect of these claims.
 
 2.  Excise duty/Sale Tax paid under protest amounting to Rs. 2.01 Lacs
 (Previous Year Rs. 2.01 Lacs) is appearing under the head amounts
 recoverable.
 
 3.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for Rs.1,132.69 Lacs (Previous Year
 Rs.1,302.56 lacs) against which a sum of Rs.84.70 Lacs (Previous Year
 Rs.408.69 Lacs) has been paid as advance.
 
 4.  In the opinion of management, current assets have a value on
 realization in the ordinary course of business at least equal to the
 value at which they are stated in the foregoing Balance Sheet.
 
 5.  The staff quarter at Dugri Road, Ludhiana have been allotted in the
 name of an Ex-Director of the Company.
 
 6.  Loans and Advances in the nature of loans:
 
 The company has given loans & advances of Rs. 218.50 Lacs (Previous
 Year  - Nil) in the nature of loans to  Majestic IT Services Limited 
 (MITSL), the Wholly Owned Subsidiary Company and the maximum balance
 outstanding during the year is Rs.218.50 Lacs. This loan is interest
 free with no specified re-payment schedule.
 MITSL has not made any investment in the shares of the parent company.
 MITSL is also company under the same management as defined under
 section 370 (I-B) of the Companies Act,1956.
 
 7.  Previous year''s figures have been regrouped/rearranged wherever
 considered necessary. Figures have been rounded off to the nearest
 rupee.
 
 8.  Borrowing cost capitalized during the Current year Rs. Nil
 (Previous year Rs. Nil).
 
 9. During the year the company has migrated to a new ERP system
 wherein stocks have been valued on Moment Moving weighted average
 Basis as against the Monthly Moving Weighted average, for more
 appropriate and relevant presentation of the financial statements. The
 impact resulting from such change is not ascertainable.
 
 10.  During the year, the company has executed transfer deeds with the
 original allottee''s / lessee''s for acquiring 90 years lease hold rights
 for industrial property situated at Greater Noida, (U.P.) at a total
 cost of Rs. 32,45,74,589.  The aforesaid amount including registration
 and other charges directly related to the acquisition of the said
 rights have been capitalized under the head Leasehold Land.
 Considering the limited useful life and absence of any clause for
 renewal or extension of lease and/or transfer of ownership at the end
 of lease term, the said amount has been amortised over the period of
 lease.
 
 11.  Related party disclosure under Accounting Standard 18
 
 a) Holding Company                   M/s Anadi Investments Pvt. Ltd.
 
 b) Subsidiary Company                M/s Majestic IT Services Ltd.
 
 c) Enterprises which has significant 
 influence over the Company           Hero Cycles Ltd
 
 d) Enterprises in which the Company
 has significant influence            M/s.Brij Mohan Lall& Associates
 f
 e) Key Management Personnel          Mr. Mahesh Chander Munjal
 
                                      Managing Director
 
 f) Enterprises over which key management personnel and their relatives
 are able to exercise significant influence :
 
 M/s Munjal Showa Ltd.           M/s Highway Industries Ltd.
 
 M/s Amar Sons                   M/s Amar Udyog    
 
 M/s Munjal Auto Ind. Ltd.       M/s Amtier Infotech Ltd.
 
 M/s Aayush Finance Investment (P) Ltd.
 
 g) Employee welfare trust where there is control :
 
 i)  Majestic Auto Ltd.      - Employee Gratuity Fund 
 
 ii) Majestic Auto Ltd.      - Superannuation Fund
 
 
 12.  GRATUITY PLANS :
 
 SUPERANNUATION BENEFIT
 
 Apart from being covered under the Gratuity Plan, certain employees of
 the Company participate in a Superannuation Benefit; a defined
 contribution plan administrated by Life Insurance Corporation (LIC).
 The Company makes contributions based on a specified percentage of
 salary of each covered employee. The Company does not have any further
 obligation to the superannuation plan beyond making such contributions.
 Upon retirement or separation (only after completion of 5 years of
 services) an employee becomes entitled for superannuation benefit, as
 determined by LIC, which is paid directly to the concerned employee.
 The Company contributed Rs. Nil (Previous Year Nil) to the
 Superannuation Plan.