1.  There are contingent liabilities in respect of :
 
                                                 2008          2007
                                               Rs. lacs      Rs. lacs
 
 i)  Claims against the Company not 
     acknowledged as debts.                     7,06.82       3,18.19
 
 ii) Excise matters in dispute/under 
     Appeal amounting to                        7,80.22       7,58.52
     Rs 7,80.22 lacs, out of which 
     Rs Nil (2007-Nil) have been
     deposited under protest.
 
 iii)Sales Tax matters in dispute/under 
     Appeal amounting to                           3.32         3.32
     Rs 3.32 lacs, out of which Rs 1.21 
     lacs have been deposited under protest 
    (Assessment in respect of Sales Tax is 
     complete upto 2000-01. Additional 
     liability, if any, for pending 
     assessments and/or pending declaration 
     forms is not ascertainable).
 
 iv) Industrial Relations matters under Appeal.   88.50        96.50
 
 v)  Counter Guarantees to Banks.               1,12.82        98.80
 (Include guarantees in foreign currency
 EUR 75,661 & US$ 65,272, 2007 - EUR 75,661).
 
 vi) Bond executed in favour of Excise 
     Authorities.                               1,00.00      1,00.00
 
 vii) State Bank of India and ICICI Bank had set up financing limits for
 Company dealers secured against personal guarantees of promoters /
 directors / partners of the concerned dealer. However in case of
 default, if any, concerned banks have a right to recover the amount
 from the Company. Actual utilisation as on 31st March, 2008 was
 Rs.11,29.60 lacs (2007 - Rs.51,72.49 lacs).
 
 viii) Assessment of Income Tax is complete upto assessment year
 2004-05, demand disputed in appeal being Rs 2,09.33 lacs (2007 - Rs.
 2,09.33 lacs). For several earlier assessment years, tax authorities
 have filed appeals at the Tribunal level which involves estimated tax
 liability of Rs.8,58.98 Lacs(2007-Rs.8,58.98 lacs).
 
 Payment of Advance Tax / Tax Deducted at Source and other payments have
 been shown net of provisions under Advances Recoverable Schedule G.
 
 2.  Working Capital facilities from banks are secured by a first charge
 on Companys inventory, receivables and other current assets and by a
 second charge on Companys fixed assets, both present and future.
 
 3.  Earnings per share is calculated by dividing net profit for the
 year attributable to equity shareholders by number of equity shares
 outstanding during the year. As there is no change in the equity
 capital during the period, the diluted earnings per share is same as
 the basic earnings.
 
 4.  Related party disclosures as required under Accounting Standard -18
 are given below:
 
 (a) List of related parties:
 
 i) Holding Company : Mahindra & Mahindra Limited (w.e.f. 6th July 2007)
 
 ii) Fellow Subsidiaries : Mahindra Renault Pvt. Ltd
 (w.e.f. 6th July, 2007 unless otherwise stated)
 
 Mahindra Forgings Ltd. (w.e.f. 27th Dec, 2007)
 
 First Choice Wheels Limited
 
 Bristlecone Limited.
 
 Bristlecone Inc.
 
 Mahindra Consulting Engineers Limited.
 
 Tech Mahindra Limited
 
 Tech Mahindra GmbH
 
 Tech Mahindra (Americas) Inc
 
 Mahindra-BT Investment Company (Mauritius)Ltd.
 
 Tech Mahindra (Singapore) Pte. Limited.
 
 Tech Mahindra (Thailand) Limited.
 
 Bristlecone India Limited.
 
 Bristlecone GmbH
 
 Bristlecone Singapore Pte. Limited.
 
 Mahindra (China) Tractor Company Limited.
 
 Mahindra Engg & Chem Products Limited.
 
 Mahindra Engineering Design & Development Company Limited.
 
 Mahindra Europe s.r.l.
 
 Mahindra Gujarat Tractor Limited.
 
 Mahindra Holdings & Finance Limited.
 
 Mahindra Holidays & Resorts India Limited.
 
 Mahindra Holidays & Resorts (USA) Inc.
 
 Mahindra Insurance Brokers Limited.
 
 Mahindra Intertrade Limited.
 
 Bristlecone UK Limited.
 
 Mahindra International Limited.
 
 Mahindra Logisoft Business Solutions Limited.
 
 Mahindra Middleeast Electrical Steel Service Centre (FZE)
 
 Mahindra & Mahindra Financial Services Limited.
 
 Mahindra & Mahindra South Africa (Pty) Limited.
 
 Mahindra Overseas Investment Company (Mauritius) Limited.
 
 Mahindra Steel Service Centre Limited.
 
 Mahindra Shubhlabh Services Limited.
 
 Mahindra SAR Transmission Pvt Limited.
 
 Mahindra USA Inc.
 
 Mahindra Ugine Steel Company Limited.
 
 NBS International Limited.
 
 Tech Mahindra (R&D Services) Limited.
 
 Tech Mahindra (R&D Services) Inc
 
 Stokes Group Limited
 
 Jensand Limited
 
 Stokes Forgings Dudley Limited
 
 Stokes Forgings Limited
 
 Plexion Technologies (UK) Limited
 
 Plexion Technologies GmbH
 
 Plexion Technologies Incorporated
 
 Tech Mahindra Foundation
 
 PT Tech Mahindra Indonesia
 
 CanvasM Technologies Limited
 
 Mahindra Forgings International Limited.
 
 Mahindra Forgings Global Limited
 
 Gesenkschmiede Schneider GmbH
 
 Falkenroth Umformtechnik GmbH
 
 Jeco-Jellinghaus GmbH
 
 Mahindra Forgings Europe AG
 
 Mahindra Hinoday Industries Limited
 
 Schoneweiss & Co. GmbH
 
 Policy Networks Private Limited
 
 CanvasM (Americas) Inc
 
 Mahindra Life Space Developers Limited
 
 Mahindra Infrastructure Developers Limited
 
 Mahindra World City (Jaipur) Limited
 
 Mahindra Integrated Township Limited
 
 Mahindra World City Developers Limited
 
 Mahindra World City (Maharashtra) Limited
 
 MHR Hotel Management GmbH
 
 Bristlecone (Malaysia) SDN. BHD
 
 Mahindra Automotive Limited
 
 Mahindra Castings Private Limited (w.e.f. 30th Aug 07)
 
 Mahindra Hotels and Residences India Limited
 
 Mahindra Holdings Limited (w.e.f. 2nd Nov 07)
 
 Mahindra Logistics Limited (w.e.f. 12th Dec 07)
 
 Mahindra Rural Housing Finance Limited
 
 Mahindra Retail Private Limited (w.e.f. 3rd Sep 07)
 
 Mahindra Technology Park Limited (w.e.f. 28th Sep 07)
 
 Tech Mahindra (Beijing) IT Services Limited (w.e.f. 21st Dec 07)
 
 Tech Mahindra (Malaysia) SDN. BHD
 
 Mahindra Residential Developers Limited (w.e.f. 1s Feb 08)
 
 Mahindra Aerospace Pvt Limited (w.e.f. 28th Feb 08)
 
 Heritage Bird (M)
 
 Bhd (w.e.f. 3rd Mar 08)
 
 Mahindra First Choice Services Limited (w.e.f. 24th Mar 08)
 
 Mahindra Graphic Research Design srl (w.e.f. 20th Feb 08)
 
 Mahindra Navistar Engines Private Limited (w.e.f. 24th Mar 08)
 
 iii) Associate Companies : Swaraj Engines Limited
 (Enterprises where Company Swaraj Automotives Limited
 has substantial interest)
 
 iv) Significant influence entities : CDC - PTL Holdings Limited and its
 associate companies (upto 5th July, 2007)
 
 v) Key Management Personnel
 
 Whole time Directors
 
 Mr. Bishwambhar Mishra (w.e.f 14th July, 2007)
 
 Mr. A.M.Sawhney
 
 Mr. P.Sivaram (Upto 14th July, 2007)
 
 5.  The Companys principal business activity falls within a single
 primary business segment viz tractors, self propelled harvester
 combines and rice transplanters. Hence Segment Reporting, under AS 17
 issued by the Institute of Chartered Accountants of India is not
 applicable.
 
 6.  Excise Duty shown in Profit & Loss Account includes provision on
 finished goods lying at plants Rs. 2,11.83 lacs (2007 - Rs. 2,57.58
 lacs).
 
 7.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for is Rs.2,40.58 lacs net of advances (2007 -
 Rs. 68.75 lacs).
 
 8.  While letters of confirmation of balance of sundry creditors,
 sundry debtors and material lying with vendors have been sent, some
 have been received back, rest are subject to confirmation.
 
 9.  Based on the information available with the Company, the balance
 due to Micro & Small Enterprises as defined under the MSMED Act, 2006
 is Rs. Nil. Further, no interest during the year has been paid or
 payable under the terms of the MSMED Act, 2006.
 
 10.  Previous year figures have been regrouped wherever necessary so as
 to correspond with those of the current year.