1.  Lease hold land includes Rs.16.91 Crores (Gross) of lands situated
 at Bhiwadi (Rajasthan), Oragadam (Chennai) & Singur (West Bengal)
 (Previous year Rs.25.88 Crores).
 
 2.  In the opinion of the Board of Directors, the Current Assets, Loans
 and Advances are having the value at which they are stated in the
 Balance Sheet, if realized in the ordinary course of business save as
 otherwise stated in this Balance Sheet elsewhere.
 
 3.  During the year Commercial Production was started on 21st January,
 2011 at Sanand (Gujarat).
 
 4.  The Company after obtaining the approval of Karnataka Industrial
 Areas Development Board (KIADB) has transferred on 30th October, 2010
 lease hold rights of plot of land measuring 80,937 Sq. Mtrs. situated
 at Plot No. 283, Bommasandra - Jigani Link Road Industrial Area,
 Bangalore, to the Joint Venture & Subsidiary Company KRP Auto
 Industries Limited for a consideration of Rs.20.25 Crores received by
 way of Equity Shares of the said Company.
 
 5.  The Other Income includes amounts of Rs.10.61 Crores and Rs.9.29
 Crores being the Profits on transfer of leasehold rights/interests of
 the Company in the immovable properties at Ambernath (Mumbai) and
 Bommasandra (Bangalore) respectively.
 
 6.  As a temporary support to its Wholly Owned Subsidiary Rasa Autocom
 Limited, the Company has allowed to utilize its letters of credit
 limits with Yes Bank Limited to the extent of Rs.5.00 Crores out of
 which actual utilization was Rs.3.84 Crores. Yes Bank Limited has
 already given an In-principle Letter sanctioning funded and non-funded
 limits to Rasa Autocom Limited independently and this arrangement is
 till its final sanction and disbursement only.
 
 7.  RELATED PARTY DISCLOSURES
 
 Related Party Disclosures as required under Accounting Standard
 (AS-18), issued by the Institute of Chartered Accountants of India.
 
 B.  Key Management Personnel
 
 Details of Key Managerial Personnel are as under:
 
 i) Shri Arvind Kapur - Vice Chairman, CEO & Managing Director
 
 ii) Shri Arun Kapur - Joint Managing Director
 
 8.  CONTINGENT LIABILITIES
 
 i) Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) Rs.14.90 Crores
 (Previous year Rs.17.38 Crores).
 
 ii) Banks have given guarantees on behalf of the Company worth of
 Rs.4.01 Crores (Previous year Rs.2.49 Crores).
 
 iii) Letters of Credit outstanding in favour of suppliers for Rs.34.22
 Crores (Previous year Rs.30.88 Crores).
 
 iv) The Company has given counter guarantees to the extent of Rs.13.04
 Crores, Rs.7.20 Crores, Rs.6.72 Crores, Rs.5.81 Crores and Rs.4.31
 Crores respectively to Axis Bank Limited, State Bank of Patiala,
 Standard Chartered Bank, DBS Bank Limited & Yes Bank Limited for the
 payment of Buyers'' Credits arranged through them from Foreign Banks.
 
 v) Disputed statutory demands in appeals before relevant Hon''ble
 Appellate Authorities:
 
 a) Sales Tax Rs.6.54 Crores (Previous Year Rs.7.95 Crores).
 
 b) Central Excise & Service Tax Rs.5.79 Crores (Previous year Rs.4.35
 Crores).
 
 c) Local Area Development Tax (LADT) Rs.0.01Crore (Previous year
 Rs.0.01 Crore).
 
 d) Income Tax Rs.11.15 Crores (Previous year Rs.1.78 Crores).
 
 Based on favourable judgements in similar cases, legal opinion taken by
 the Company, discussions with the solicitors etc. the Company believe
 that there is fair chance of decisions in our favour in respect of the
 items listed at (v) (a) (b) (c) and (d) above. Hence no provision has
 been considered necessary against the same.
 
 vi) Surety Bonds executed in favour of The President of India, under
 Export Promotion Capital Goods Scheme (EPCG) for importing Capital
 goods at concessional rate of custom duty, amounting to Rs.120.83
 Crores (Previous year Rs.122.19 Crores).
 
 9.  During the year 64,30,000 Warrants out of the 97,00,000 Warrants
 allotted to the Promoter Group Company namely M/s. Kapsons Associates
 Investments Private Limited have been converted by way of second &
 final tranche into 64,30,000 Equity Shares of Re.1/- each at a premium
 of Rs.16.50 per share (already received Rs.4.40 per warrant alongwith
 application) and the balance amount of Rs.13.10 per equity share
 aggregating to Rs.8,42,33,000/- collected from the allottee against the
 allotment of 64,30,000 equity shares, has been utilized for the purpose
 it has been raised. The Paid-up Share Capital has increased to
 Rs.13,52,85,000/- after this allotment during the year.
 
 ii) The amount of interest accrued & remaining unpaid at the end of the
 financial year 2010-2011 is Nil (Previous year Nil).  
 
 iii) There is no any interest remaining due & payable for any of the
 earlier years.
 
 10.  The amount has been given in Crore Rupees unless otherwise stated.
 
 11.  Previous year figures have been re-grouped or re-arranged wherever
 found necessary.
 
 12.  Schedules 1 to 15 form an integral part of the Balance Sheet and
 Profit & Loss Account.