(a) Basis of preparation
 
 The fnancial statements are prepared under the historical cost
 convention on an accrual basis of accounting in accordance with the
 generally accepted accounting principles, Accounting Standards notifed
 under Section 211 (3C) of the Companies Act, 1956 and the relevant
 provisions thereof.
 
 (b) Use of estimates
 
 The preparation of fnancial statements requires management to make
 judgments, estimates and assumptions, that afect the application of
 accounting policies and the reported amounts of assets and liabilities
 and disclosures of contingent liabilities at the date of these fnancial
 statements and the reported amounts of revenues and expenses for the
 years presented. Actual results may difer from these estimates.
 
 Estimates and underlying assumptions are reviewed on an ongoing basis.
 Revisions to accounting estimates are recognised in the period in which
 the estimate is revised and future periods afected.
 
 (c) Sales
 
 The Company recognises revenue on the sale of products, net of
 discounts, when the products are delivered to the dealer / customer or
 when delivered to the carrier for export sales, which is when risks and
 rewards of ownership pass to the dealer / customer.
 
 Sales include income from services, transfer of technology relating to
 automotive products and exchange fuctuations relating to export
 receivables. Sales include export and other recurring and non-recurring
 incentives from the Government at the national and state levels. Sale
 of products is presented gross of excise duty where applicable, and net
 of other indirect taxes.
 
 Revenues are recognised when collectibility of the resulting
 receivables is reasonably assured.
 
 Dividend from investments is recognized when the right to receive the
 payment is established and when no signifcant uncertainty as to
 measurability or collectability exits.
 
 Interest income is recognized on the time basis determined by the
 amount outstanding and the rate applicable and where no signifcant
 uncertainty as to measurability or collectability exists.
 
 (d) Depreciation and Amortisation
 
 (i) Depreciation is provided on straight line method (SLM), at the
 rates and in the manner prescribed in Schedule XIV to the Companies
 Act, 1956 except in the case of :
 
 Leasehold Land - amortised over the period of the lease
 
 Technical Know-how- at 16.67% (SLM)
 
 Laptops - at 23.75% (SLM)
 
 Cars - at 23.75% (SLM)
 
 Assets acquired prior to April 1,1975 - on Written Down Value basis at
 rates specified in Schedule XIV to the Companies Act, 1956.
 
 Software in excess of Rs. 25,000 is amortised over a period of sixty
 months or on the basis of estimated useful life whichever is lower.
 
 Assets taken on lease are amortised over the period of lease.
 
 (ii) Product development cost are amortised over a period of 36 months
 to 120 months or on the basis of actual production to planned
 production volume over such period.
 
 (iii) In respect of assets whose useful life has been revised, the
 unamortised depreciable amount has been charged over the revised
 remaining useful life
 
 (iv) Depreciation is not recorded on capital work-in-progress until
 construction and installation are complete and asset is ready for its
 intended use. Capital- work-in-progress includes capital advances.
 
 (e) Fixed Assets
 
 (i) Fixed assets are stated at cost of acquisition or construction less
 accumulated depreciation / amortization.
 
 (ii) The product development cost incurred on new vehicle platform,
 engines, transmission and new products are recognised as fxed assets,
 when feasibility has been established, the Company has committed
 technical, fnancial and other resources to complete the development and
 it is probable that asset will generate probable future benefts.
 
 (iii) Cost includes purchase price, taxes and duties, labour cost and
 directly attributable costs for self constructed assets and other
 direct costs incurred upto the date the asset is ready for its intended
 use. Borrowing cost incurred for qualifying assets is capitalised up to
 the date the asset is ready for intended use, based on borrowings
 incurred specifcally for fnancing the asset or the weighted average
 rate of all other borrowings, if no specifc borrowings have been
 incurred for the asset. The cost of acquisition is further adjusted for
 exchange diferences relating to long term foreign currency borrowings
 attributable to the acquisition of depreciable asset w.e.f. April 1,
 2007.
 
 (iv) Software not exceeding Rs. 25,000 and product development costs
 relating to minor product enhancements, facelifts and upgrades are
 charged of to the Proft and Loss Account as and when incurred.
 
 (f) Impairment
 
 At each balance sheet date, the Company assesses whether there is any
 indication that the fxed assets have sufered an impairment loss. If any
 such indication exists, the recoverable amount of the asset is
 estimated in order to determine the extent of the impairment, if any.
 Where it is not possible to estimate the recoverable amount of
 individual asset, the Company estimates the recoverable amount of the
 cash-generating unit to which the asset belongs.
 
 As per the assessment conducted by the Company at March 31, 2011, there
 were no indications that the fixed assets have suffered an impairment
 loss.
 
 (g) Leases
 
 (i) Finance Lease
 
 Assets acquired under fnance leases are recognised at the lower of the
 fair value of the leased assets at inception and the present value of
 minimum lease payments. Lease payments are apportioned between the
 fnance charge and the outstanding liability. The fnance charge is
 allocated to periods during the lease term at a constant periodic rate
 of interest on the remaining balance of the liability. Assets given
 under fnance leases are recognised as receivables at an amount equal to
 the net investment in the lease and the fnance income is based on a
 constant rate of return on the outstanding net investment.
 
 (ii) Operating Lease
 
 Leases other than fnance lease, are operating leases, and the leased
 assets are not recognised on the Companys balance sheet. Payments
 under operating leases are recognised in statement of operations on a
 straight-line basis over the term of the lease.
 
 (h) Transactions in Foreign Currencies and Accounting of Derivatives
 
 (i) Exchange diferences
 
 Transactions in foreign currencies are recorded at the exchange rates
 prevailing on the date of the transaction. Foreign currency monetary
 assets and liabilities are translated at year end exchange rates.
 
 (1) Exchange diferences arising on settlement of transactions and
 translation of monetary items other than those covered by (2) below are
 recognized as income or expense in the year in which they arise.
 Exchange diferences considered as borrowing cost are capitalized to the
 extent these relate to the acquisition / construction of qualifying
 assets and the balance amount is recognized in the Proft and Loss
 account.
 
 (2) Exchange diferences relating to long term foreign currency monetary
 assets / liabilities are accounted for with efect from April 1, 2007 in
 the following manner:
 
 - Diferences relating to borrowings attributable to the acquisition of
 the depreciable capital asset are added to / deducted from the cost of
 such capital assets.
 
 - Other diferences are accumulated in Foreign Currency Monetary Item
 Translation Diference Account, to be amortized over the period,
 beginning April 1, 2007 or date of inception of such item, as
 applicable, and ending on March 31, 2011 or the date of its maturity,
 whichever is earlier.
 
 (ii) Hedge Accounting
 
 The Company uses foreign currency forward contracts to hedge its risks
 associated with foreign currency fuctuations relating to highly
 probable forecast transactions. With efect from April 1, 2008, the
 Company designates such forward contracts in a cash fow hedging
 relationship by applying the hedge accounting principles set out in
 Accounting Standard 30- Financial Instruments: Recognition and
 Measurement.
 
 These forward contracts are stated at fair value at each reporting
 date. Changes in the fair value of these forward contracts that are
 designated and efective as hedges of future cash fows are recognized
 directly in Hedging Reserve Account under Reserves and Surplus, net of
 applicable deferred income taxes and the inefective portion is
 recognised immediately in the Proft and Loss Account.
 
 Amounts accumulated in Hedging Reserve Account are reclassifed to proft
 and loss in the same periods during which the forecasted transaction
 afects proft and loss.
 
 Hedge accounting is discontinued when the hedging instrument expires or
 is sold, terminated, or exercised, or no longer qualifes for hedge
 accounting.  For forecasted transactions, any cumulative gain or loss
 on the hedging instrument recognised in Hedging Reserve Account is
 retained there until the forecasted transaction occurs.
 
 If the forecasted transaction is no longer expected to occur, the net
 cumulative gain or loss recognised in Hedging Reserve Account is
 immediately transferred to the Proft and Loss Account.
 
 (iii) Premium or discount on forward contracts other than those covered
 in (ii) above is amortised over the life of such contracts and is
 recognised as income or expense. Foreign currency options and other
 derivatives are stated at fair value as at the year end with changes in
 fair value recognized in the Proft and Loss Account.
 
 (i) Product Warranty Expenses
 
 The estimated liability for product warranties is recorded when
 products are sold. These estimates are established using historical
 information on the nature, frequency and average cost of warranty
 claims and management estimates regarding possible future incidence
 based on corrective actions on product failures.  The timing of outfows
 will vary as and when warranty claim will arise - being typically upto
 three years.
 
 (j) Income on Vehicle Loan / Hire-Purchase Income / Finance Income from
 Lease
 
 Interest income from hire purchase and loan contracts and fnance income
 in respect of vehicles are accounted for by using the Internal Rate of
 Return method.  Consequently, a constant rate of return on the net
 outstanding amount is accrued over the period of contract. The Company
 provides an allowance for hire purchase and loan receivables that are
 in arrears for more than 11 months, to the extent of an amount
 equivalent to the outstanding principal and amounts due but unpaid,
 considering probable inherent loss including estimated realisation
 based on past performance trends. In respect of loan contracts that are
 in arrears for more than 6 months but not more than 11 months,
 allowance is provided to the extent of 10% of the outstanding and
 amount due but unpaid.
 
 (k) Inventories
 
 Inventories are valued at the lower of cost and net realisable value.
 Cost of raw materials and consumables are ascertained on a moving
 weighted average / monthly moving weighted average basis. Cost,
 including variable and fxed overheads, are allocated to
 work-in-progress and stock-in-trade determined on full absorption cost
 basis. Net realisable value is estimated selling price in the ordinary
 course of business less estimated cost of completion and selling
 expenses.
 
 (l) Employee Benefts
 
 (i) Gratuity
 
 The Company has an obligation towards gratuity, a defned beneft
 retirement plan covering eligible employees. The plan provides for a
 lump sum payment to vested employees at retirement, death while in
 employment or on termination of employment of an amount equivalent to
 15 to 30 days salary payable for each completed year of service.
 Vesting occurs upon completion of fve years of service. The Company
 makes annual contributions to gratuity fund established as trust. The
 Company accounts for the liability for gratuity benefts payable in
 future based on an independent actuarial valuation.
 
 (ii) Superannuation
 
 The Company has two superannuation plans, a defned beneft plan and a
 defned contribution plan. An eligible employee on April 1, 1996 could
 elect to be a member of either plan.
 
 Employees who are members of the defned beneft superannuation plan are
 entitled to benefts depending on the years of service and salary drawn.
 The monthly pension benefts after retirement range from 0.75% to 2% of
 the annual basic salary for each year of service. The Company accounts
 for the liability for superannuation benefts payable in future under
 the plan based on an independent actuarial valuation.
 
 With efect from April 1, 2003, this plan was amended and benefts earned
 by covered employees have been protected as at March 31, 2003.
 Employees covered by this plan are prospectively entitled to benefts
 computed on a basis that ensures that the annual cost of providing the
 pension benefts would not exceed 15% of salary.
 
 The Company maintains a separate irrevocable trust for employees
 covered and entitled to benefts. The Company contributes up to 15% of
 the eligible employees salary to the trust every year. The Company
 recognizes such contributions as an expense when incurred. The Company
 has no further obligation beyond this contribution.
 
 (iii) Bhavishya Kalyan Yojana (BKY)
 
 Bhavishya Kalyan Yojana is an unfunded defned beneft plan. The benefts
 of the plan include pension in certain case, payable upto the date of
 normal superannuation had the employee been in service, to an eligible
 employee at the time of death or permanent disablement, while in
 service, either as a result of an injury or as certifed by the
 Companys Medical Board. The monthly payment to dependents of the
 deceased / disabled employee under the plan equals 50% of the salary
 drawn at the time of death or accident or a specifed amount, whichever
 is higher. The Company accounts for the liability for BKY benefts
 payable in future based on an independent actuarial valuation.
 
 (iv) Post-retirement Medicare Scheme
 
 Under this scheme, employees get medical benefts subject to certain
 limits of amount, periods after retirement and types of benefts,
 depending on their grade and location at the time of retirement.
 Employees separated from the Company as part of Early Separation
 Scheme, on medical grounds or due to permanent disablement are also
 covered under the scheme. The liability for post-retirement medical
 scheme is based on an independent actuarial valuation.
 
 (v) Provident fund
 
 The eligible employees of the Company are entitled to receive benefts
 under the provident fund, a defned contribution plan, in which both
 employees and the Company make monthly contributions at a specifed
 percentage of the covered employees salary (currently 12% of
 employees salary). The contributions as specifed under the law are
 paid to the provident fund and pension fund set up as irrevocable trust
 by the Company or to respective Regional Provident Fund Commissioner
 and the Central Provident Fund under the State Pension scheme. The
 Company is generally liable for annual contributions and any shortfall
 in the fund assets based on the government specifed minimum rates of
 return or pension and recognises such contributions and shortfall, if
 any, as an expense in the year incurred.
 
 (vi) Compensated absences
 
 The Company provides for the encashment of leave or leave with pay
 subject to certain rules. The employees are entitled to accumulate
 leave subject to certain limits, for future encashment. The liability
 is provided based on the number of days of unutilised leave at each
 balance sheet date on the basis of an independent actuarial valuation.
 
 (m) Investments
 
 Long term investments are stated at cost less other than temporary
 diminution in value, if any. Current investments are stated at lower of
 cost and fair value.  Fair value of investments in mutual funds are
 determined on a portfolio basis.
 
 (n) Income Tax Expenses
 
 Income tax expenses comprises current and deferred taxes.
 
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions of the Income Tax
 Act, 1961.  Current tax is net of credit for entitlement for Minimum
 Alternative tax.
 
 Deferred tax is recognised, on timing diferences, being the diference
 between taxable income and accounting income that originate in one
 period and are capable of reversal in one or more subsequent periods.
 
 Deferred tax assets in respect of unabsorbed depreciation and carry
 forward of losses are recognised if there is virtual certainty that
 there will be sufcient future taxable income available to realise such
 losses.
 
 Deferred tax assets and liabilities are measured based on the tax rates
 that are expected to apply in the period when asset is realised or the
 liability is settled, based on tax rates and tax laws that have been
 enacted or substantially enacted by the balance sheet date.
 
 (o) Redemption premium / discount on Foreign Currency Convertible Notes
 (FCCN) / Convertible Alternative Reference Securities (CARS) / Non
 Convertible Debentures (NCD)
 
 Premium payable on redemption of FCCN / CARS / NCD as per the terms of
 issue, is provided fully in the year of issue by adjusting against the
 Securities Premium Account (SPA). Any change in the premium payable,
 consequent to conversion or exchange fuctuations is adjusted to the
 SPA. Discount on redemption of FCCN, if any, will be recognised on
 redemption.
 
 (p) Business Segments
 
 The Company is engaged mainly in the business of automobile products
 consisting of all types of commercial and passenger vehicles including
 fnancing of the vehicles sold by the Company. These, in the context of
 Accounting Standard 17 on Segment Reporting, as specifed in the
 Companies (Accounting Standards) Rules, 2006, are considered to
 constitute one single primary segment. Further, there is no reportable
 secondary segment i.e. Geographical Segment.