CONTINGENT LIABILITIES NOT PROVIDED FOR ON ACCOUNT OF: 
 
                                                    (Rupees in Lacs)
 
                                              31.03.2011       31.03.2010
  
 b)     Estimated amount of                     4,582.68         5,108.39
 executed oZ3 account and not provided for
 (net or advances)
 
 2.  In the opinion of the Board of Directors, the current assets, loans
 and advances are approximately of the value stated if realized in the
 ordinary course of business. The provision for all known liabilities is
 adequate and not in excess of amount considered reasonably necessary.
 
 3.  Depreciation on plant and machineries is provided as under
 
 a.  In case of Oragadam (Tamil Nadu) unit on double shift basis as the
 unit functioned on double shift.
 
 b.  In case of Dappar unit on triple shift basis as the unit functioned
 on triple shift.
 
 c.  In case of Jamshedpur (Jharkhand) unit on single shift basis as the
 unitfunctioned on single shift.
 
 4.  Debit and Credit Balances in the accounts of suppliers and others
 are subject to confirmation and reconciliation.
 
 5.  The Income Tax assessment of the Company has been completed upto
 Assmt Year 2008-09. The Income Tax demand of Rs.99.56 lakhs for the
 Assmt. Year 2008-09, out of which Rs.25.00 Lacs has been deposited and
 Rs.74.56 Lacs is pending, the same has been stayed by Chief
 Commissioner of Income Tax. The appeal of the Company is pending before
 Commissioner of Income Tax (Appeals), Chandigarh. In the opinion of the
 Company the demand is likely to be deleted in view of the decision of
 various appellate authorities and interpretation of other relevant
 provisions of the Income Tax Act, 1961. Accordingly, no provision has
 been made.
 
 6.  The Company had been granted exemption from Sales Tax under the
 Punjab Industrial Policies, 1989 and 1996 for its Dappar unit. The said
 exemption is available upto March, 2012 orsuch period when amount of
 exemption is fully utilized, whichever is earlier. From 01.06.2010 part
 of VAT liability is being set off under exemption and part is being
 paid as per applicable rules and regulations of the Punjab VAT Act,
 2005. In respect of Chennai & Jamshedpur unit all sales tax liabilities
 are being paid as per applicable rules and provisions. Any liability on
 account of Sales Tax, if arises, shall be accounted for at the time of
 assessment.
 
 7. Sundry Creditors include a sum of Rs. 367.45 Lakhs (Previous year
 209.27 lakhs) due to Micro and Small Scale Undertakings. This
 information is required to be disclosed under the Micro, Small and
 Medium Enterprises development Act 2006, as determined to the extent
 the parties have been identified on the basis of information with the
 company.
 
 8.  During the year the Company has made a provision for accrued
 liability on account of Gratuity and leave encashment on the basis
 actuarial valuation based on projected unit method as required by AS 15
 (Revised 2005) - Employee Benefits issued by The Institute of Chartered
 Accountant of India, New Delhi.
 
 9.  In compliance with AS 22 issued by ICAI on Accounting for the
 Taxes on Income, a sum of Rs. 541.50 lakhs (Previous Year Rs. 51.70
 lakhs) has been considered as deferred tax liability in respect of
 timing difference for the year under consideration and the same has
 been charged to profit & loss account.
 
 10. The company had entered into an agreement for purchase of land
 admeasuring 304 kanals approx at village Bir Farozari, Distt.
 Panchkula, at a cost of Rs. 133.00 lacs for setting up an auto
 component unit. The land has not yet been registered in the name of the
 company. Pending the same, the advance of Rs. 35.00 lacs paid by the
 company has been shown as ''Advances Recoverable'' in the Schedule of
 ''Loans & Advances'' and being Under Legal suit, a provision for the same
 has been made.
 
 11.  Related Party Disclosures
 
 Detail of transactions entered into with related parties during the
 year as required by Accounting Standard 18 on Related Party
 Disclosures issued by the Institute of Chartered Accountants of India
 are as under:-
 
 12.  As per the provision of Section 115JAA, MAT Credit receivable has
 been recognized as an asset to the extent there is convincing evidence
 that the Company will pay normal Income Tax during the specified
 period. MAT credit is recognized as an asset in accordance with the
 recommendation contained in guidance note issued by the Institute of
 Chartered Accountants of India. The said assets is created by the way
 of credit to the Profit and Loss Account and shown as MAT Credit
 Entitlement. The company will review the same at each balance sheet
 date and write down the carrying amount of MAT credit entitlement to
 the extent there is no longer convincing evidence to the effect that
 the company will pay normal Income Tax during the specified period.
 
 13.  Pre-operative expenses pending capitalization (as per schedule 25)
 consists of expenses incurred/ being incurred during implementation of
 project or installation of new fixed assets. These will be capitalized
 with other fixed assets when project/ fixed assets shall commence
 commercial production.
 
 14.  Previous year figures have been re-grouped and rearranged wherever
 considered necessary to make them comparable with those of current
 year. Figures have been rounded off to the nearest rupee.
 
 15.  The company is in the business of manufacture and sale of wheel
 rims and there is no other segment as per Accounting Standard (AS -17)
 dealing with the segment reporting.
 
 16.  Land for Oragadam plant is obtained on 99 years lease basis from
 State Industries Promotion Corporation of Tamilnadu Limited (SIPCOT), a
 Govt of Tamilnadu enterprise. Total cost of leasehold land is amortized
 over a period of 99 years. Accordingly a sum of Rs. 12.19 lakh
 (previous year Rs. 42.68 lakh) is amortized during the year.
 
 17. Schedule 1 to 26 form an integral part of the Balance Sheet, Profit
 & Loss Account and Cash Flow Statement.