NOTE 1 - SHARE CAPITAL
 
 b) Terms/rights attached to equity shares
 
 The Company has only one class of equity shares having a par value of
 Rs. 1/- per share. Each holder of equity shares is entitled to one vote
 per share. The dividend proposed by the board of directors is subject
 to the approval of the shareholders in the ensuing annual general
 meeting.
 
 NOTE 2 - LONG TERM BORROWINGS
 
 1.  Indian rupee loans from banks include:
 
 (a) Rupee term loans of Rs. 14938.47 lacs (previous year Rs. 16414.35
 lacs) are secured by first pari-passu charge over the entire movable
 and immovable fixed assets of the Company, both present and future,
 except the assets exclusively charged to Standard Chartered Bank for
 Rs. nil (previous year Rs. 388.89 lacs). Loans to the extent of Rs.
 2325.00 lacs (previous year Rs. 1995.00 lacs) are further secured by
 way of second charge on current assets, on pari passu basis. The rate
 of interest on aforesaid loans are linked to the specific banks'' Prime
 Lending Rate (PLR).
 
 (b) Rupees term loan of Rs. 1750.00 lacs (previous year Rs. 3000.00
 lacs) from State Bank of India is secured by way of first pari-passu
 charge on current assets and second parri-passu charge on movable and
 immovable fixed assets of the Company. The loan is further secured by
 way of exclusive mortgage on land situated at Plot No. 19, Dharuhera
 Industrial Area, Phase II, District Rewari (Haryana). The rate of
 interest on aforesaid loan is linked to bank''s Prime Lending Rate
 (PLR).
 
 (c) Rupee term Loan of Rs. 114.93 lacs (previous year Rs. 63.30 lacs)
 from Allahabad Bank, secured by way of exclusive charge on the
 vechicles financed out of the said term loan. The rate of interest on
 aforesaid loan is linked to bank''s Prime Lending Rate (PLR).
 
 2.  Indian rupee loan from NBFC include :
 
 Term loan of Rs. 680.52 lacs (previous year Rs. 874.95 lacs) is secured
 by way of second charge on entire assets of the Company situated at
 Sanand, Gujarat to be purchased or constructed out of said term loan.
 The rate of interest on aforesaid loan is linked to NBFC''s Prime
 Lending Rate (PLR).
 
 3.  Foreign currency loans from banks include :
 
 Foreign currency loan of USD 4 million equivalent to Rs. 2046.00 lacs
 (previous year Rs. nil) from Standard Chartered Bank is secured by
 first charge on movable and immovable fixed assets except assets
 exclusively charged to other banks. The loan carries interest @ LIBOR
 plus 3%.
 
 Foreign currency loan of USD 5 million equivalent to Rs. 2512.50 lacs
 (previous year Rs. nil) from Standard Chartered Bank on fully hedged
 basis is secured by first charge on movable and immovable fixed assets
 except assets exclusively charged to other banks. The loan carries
 interest @ 10.28% p.a.
 
 The estimates of future salary increases, considered in actuarial
 valuation, takes into account inflation, seniority, promotions and
 other relevant factors including supply and demand in the employment
 market. The above information is certified by the actuarial valuer.
 
 The discount rate is based on the prevailing market yield of Govt.
 bonds as at the date of valuation.
 
 Expected return on asset - The expected return on assets over the
 accounting period is based on an assumed rate of return.
 
 iv) Investment details of plan assets :
 
 The gratuity trust has taken up a group policy with Life Insurance
 Corporation of India.
 
 NOTE 3 - LEASES
 
 (a) Operating lease: Company as lessee
 
 The Company has taken various residential, office premises and vehicles
 under operating lease on lease and license agreements. These are
 cancellable; have a term of 11 months and five years. The agreements
 for premises cannot be terminated by either party before the expiry of
 one year. Agreements for leasing of vehicles can generally be
 terminated early by payment of nominal fees. The lease arrangements are
 generally renewable on the expiry of lease period subject to mutual
 agreement. Lease payments are recognised in the statement of profit and
 loss in the year incurred.
 
 NOTE 4 - SEGMENT REPORTING
 
 The Company is primarily engaged in the business of auto components of
 four wheelers, which are governed by the same set of risk and returns,
 and hence there is only one primary segment. The Company operates
 mainly to the needs of domestic market and export turnover is less than
 ten percent of the total turnover and hence there are no reportable
 secondary geographical segments.
 
 NOTE 5 - CONTINGENT LIABILITIES
 
                                Current year        Previous year
                                 (Rs. / Lacs)         (Rs. / Lacs)
 
 I) Claims against the 
 Company not acknowledged 
 as debt on account of :
 
 a) Excise duty                      1981.78              1322.54
 
 b) Service tax                       267.06               341.88
 
 c) Local Area Development 
 Tax                                  435.72               209.16
 
 d) Income tax - matters 
 in appeal                             30.53                56.81
 
 e) Warranties/customers                   -                67.25
 
 II) Customer bills discounted       1406.00               910.00
 
 III) Letter of credit opened 
 by banks for purchase of 
 inventory /capital goods            1243.31               867.00
 
 IV) The Company has filed a writ petition with the Hon''ble High Court
 of Calcutta for injunction restraining the Govt. of West Bengal for
 acting in terms of the Singur Land Rehabilitation And Development Act,
 2011, which is being heard by a Divisional Bench alongwith the appeals
 of Tata Motors Ltd. and their other vendors. Pending finalization of
 the case, the Company has not made any provision for the impairment of
 value of land.
 
 V) During the year under audit, search and seizure operation were
 carried out by Revenue Authorities on 29th November, 2011. However
 neither any unexplained money, bullion or valuables were found nor
 there was any seizure. Additional tax liability, if any, shall be
 accounted for on creation of demand against the Company.
 
 NOTE 6 - DEFERRAL / CAPITALIZATION OF EXCHANGE DIFFERENCES
 
 The Ministry of Corporate Affairs (MCA) has issued the amendment dated
 29th December, 2011 to AS 11. The effects of changes in foreign
 exchange rates, to allow companies deferral / capitalization of
 exchange differences arising on long- term foreign currency monetary
 items.
 
 In accordance with the amendment to AS 11, the Company has capitalized
 the exchange loss to depreciable fixed assets arising on long-term
 foreign currency loan, amounting to Rs.192.74 lacs (previous year nil)
 for the year ended 31st March, 2012. The Company does not have any
 other long-term foreign currency monetary items. Hence, the amount of
 exchange loss deferred in the Foreign currency monetary item
 translation difference account is nil.
 
 NOTE 7 - The amount of excise duty disclosed as deduction from
 turnover is the total excise duty for the year except excise duty
 related to difference between the closing stock and opening stock and
 excise duty paid but not recovered, which has been disclosed as excise
 duty expense in Changes in inventories of finished goods,
 work-in-progress and stock- in-trade-excise duty on increase/(decrease)
 in finishedgoods under note 20 annexed and forming part of statement
 of profit and loss.
 
 NOTE 8 - Raw material and components consumed are net of Rs. 2559.19
 lacs (previous year Rs. 3036.74 lacs) being the value of dispatches
 made to vendors for job work.
 
 NOTE 9 - A provision is recognized for expected warranty claims on
 products sold during the last two to three years, based on past
 experience of the level of returns. It is expected that significant
 portion of these cost will be incurred in the next financial year and
 all will have been incurred within three years after reporting date.
 Assumptions used to calculate the provision for warranties were based
 on current sales level and current information available about returns
 based on the three year warranty period for products sold. The table
 below gives information about movement in warranty provisions.
 
 NOTE 10 - PREVIOUS YEAR FIGURES : The Company was using pre-revised
 Schedule VI to the Companies Act, 1956, till the year ended 31st March,
 2011, for preparation and presentation of its financial statements.
 During the year ended 31st March, 2012, the revised Schedule VI
 notified under the Companies Act, 1956, has become applicable to the
 Company. The Company has re-classified previous year figures to conform
 to this year''s classification. The adoption of revised Schedule VI does
 not impact recognition and measurement principles followed for
 preparation of financial statements. However, it significantly impacts
 presentation and disclosures made in the financial statements,
 particularly presentation of balance sheet.