1.  Ownership of a flat (cost Rs. 3,937 thousand) belonging to the
 Company in a Co-operative Housing Society is registered in the name of
 the Managing Director of erstwhile Spundish Engineering Ltd.
 
 2.  Contingent Liabilities in respect of -
 
                                                         (Rs. in 000)
 
                                    As at 31.03.2011 As at 31.03.2010
 
 2.1 Sales Tax Matters under dispute          36,298            6,546 
 [Net of payments Rs. 645
 thousand (Previous year Rs. 3,243 thousand)]
 
 2.2 Income Tax Matters under dispute         12,790            1,809 
 [Excludes disputed Income Tax matters, 
 in view of favourable Tribunal decision 
 in similar case.]
 
 2.3 Service Tax matters under dispute [Net 
 of payments Rs. 1,463 thousand (Previous year   9,284           96,261
 Rs. 20,208 thousand)]
 
 2.4 Excise Duty matters under dispute         4,315            5,329 
 [Net of payments Rs. 2,918 thousand (Previous 
 year Rs. 1,648 thousand)]
 
 3.1 Based on legal proceedings initiated by the Employees Union/
 Association and the interim order of the Honble Calcutta High Court
 dated 22nd December,2006 and 18th April,2007 restraining the Company
 from making any contribution/ deduction towards Employees State
 Insurance in respect of its Kamarhatty ( with effect from October,2006
 ) and Taratolla ( with effect from March, 2007) units, in respect of
 employees whose monthly salaries (i.e.basic,dearness allowance and
 overtime ) are between Rs. 7,501 and Rs. 10,000, no contributions/
 deductions have been made and deposited with the appropriate
 authorities. The related amounts involved as on 31st March, 2011 being
 (Employers) Rs. 679 thousand (Previous Year Rs. 669 thousand) and
 (Employees) Rs. 250 thousand (Previous Year Rs. 246 thousand).
 
 3.2 Consequent to enhancement of Employees State Insurance benefit
 ceiling for Employee Wages from Rs. 10,000 to Rs. 15,000 per month with
 effect from 1st May 2010, legal proceedings have been initiated by the
 Employees Union/ Association of the Company and an interim order dated
 13th August, 2010 has been issued by the Honble Calcutta High Court in
 this regard, restraining the Company from making contribution/
 deduction towards Employees State Insurance in respect of employees
 whose monthly salaries (i.e. basic, dearness allowance and overtime )
 are between Rs. 10,001 and Rs. 15,000. In view of the said Order, the
 Company has neither deducted from the certain concerned employees nor
 contributed its own share to the Employees State Insurance Scheme with
 effect from 1st August, 2010, the related amounts involved as on 31st
 March, 2011 being (Employers) Rs. 87 thousand (Previous Year NIL) and (
 Employees) Rs. 32 thousand (Previous Year NIL).
 
 4.  The Company has various residential/ commercial premises taken
 under cancellable operating lease. Leases range for periods between 3
 to 5 years. Terms of the lease include operating term for renewal,
 increase in rent for future periods, terms of cancellation etc. The
 operating lease payments for the year amount to Rs. 10,773 thousand
 (Previous Year Rs. 18,572 thousand).
 
 5.  There are no outstanding dues for Micro and Small Enterprises
 based on information available with the Company.
 
 6.  Technical Know-how [ shown under Intangible Assets - Schedule E
 ] represents technical drawings, designs etc. relating to manufacture
 of the Companys products acquired pursuant to various agreements
 conferring the right to manufacture and usage only.
 
 7.  Pusuant to the Scheme of Arrangement (the Scheme) under Section
 391 to 394 of the Companies Act between the Company i.e. TIL Limited
 (the transferor Company) and its wholly owned subsidiary Tractors India
 Private Limited (TIPL) ( the transferee company), as sanctioned by the
 Honble High Court at Calcutta vide order dated 12th July, 2010, the
 undertaking of the Company pertaining to dealership business of
 Caterpillar (comprising Construction and Mining Solutions and Power
 Systems Solutions) has been transferred to and vested in TIPL on a
 going concern basis with effect from the appointed date of 1st April,
 2010, in consideration of 4489430 number of Equity Shares of TIPL at Rs.
 10/- each at a premium of Rs. 203.48 per share fully paid up, amounting
 to Rs. 958,396 thousand, on a slump sale basis.
 
 8.1 Sales-others [Note 22.2(i) below] represents Service Income Rs.
 25,080 thousand (Previous Year Rs. 236,933 thousand).
 
 8.2 Provident Fund :- In terms of the Guidance on implementing
 Accounting Standard(AS) 15 on Employee Benefits issued by the
 Accounting Standards Board of the Institute of Chartered Accountants of
 India, a provident fund set up by the Company is treated as a defined
 benefit plan since the Company is obligated to meet interest shortfall,
 if any. However, at the year end, no shortfall remains unprovided for.
 The Actuary has expressed his inability to provide an actuarial
 valuation of the provident fund liability as at the year end in the
 absence of any guidance from the Actuarial Society of India.
 Accordingly, complete information required to be considered as per AS
 15 in this regard are not available and the same could not be
 disclosed. During the year, the Company has contributed Rs. 11,798
 thousand (Previous year Rs. 17,974 thousand) to the Provident Funds.
 
 8.3 A) Superannuation Fund :-
 
 (i) Certain eligible employees of the Company who had attained at least
 45 years of age as on 1st April, 2009 are entitled to Superannuation
 benefit under the Superannuation scheme (a funded Defined Benefit Plan
 under a common Trust- Tractors India Limited Superannuatiion Fund
 Scheme, being administered by the trustees of the said fund for the
 benefit of employees of the Company and its subsidiary company i.e.
 Tractors India Private Limited). Under the aforesaid benefit scheme the
 Company makes periodic contribution to the Superannuation Fund Scheme
 and a predetermined percentage of salary is paid as pension on
 retirement. The quantum of pension depends on the average basic salary
 of eligible employee during the last 36 months before retirement. The
 benefit vests to employees with 12 years of continious service and
 attainment of 48 years of age on retirement/death/termination. The most
 recent actuarial valuation of Plan Assets and Present Value of the
 Defined Benefit Obligation of Superannuation Fund was carried out as on
 31st March,2011.
 
 (ii) Employees who did not attain 45 years of age as on 1st April,2009
 are under the purview of Defined Contribution Scheme in respect of
 service rendered from 1st April, 2009. The benefit of services rendered
 by these employees upto 31st March, 2009 come under the purview of
 Defined Benefit Scheme as indicated in Note 18.3 (i) above, which is
 frozen as on 31st March, 2009. Hence for this category of employees,
 the benefit of cessation of service will be:
 
 a) amount accumulated by annual contribution of 15% of Basic Salary and
 
 b) amount frozen as on 31st March, 2009.
 
 B) Gratuity Fund :- The Company makes periodic contributions to the
 Tractors India Limited Staff Gratuity Fund, a funded defined
 benefit-plan for qualifying employees administrated under a common
 Trust by the trustees of the said fund for the benefit of the employees
 of the Company and its subsidiary company i.e. Tractors India Private
 Limited.
 
 Under the Gratuity plan, every employee is entitled to gratuity, being
 higher of the amount, calculated under the Companys plan (based on
 average salary of last 36 months and number of years of service,
 restricted to a maxmimum of 40 years) or calculations as laid down
 under the Payment of Gratuity Act, 1972. Gratuity is payable on death/
 retirement/ termination and the benefit vests after 5 year of
 continuous service.
 
 The most recent actuarial valuation of plan assets and the present
 value of the defined benefit obligation was carried out as at 31st
 March, 2011.
 
 8.4 The basis used to determine overall expected rate of return on
 assets and the effect on major categories of Plan Assets is as follows
 :
 
 The major portions of the Assets are invested in PSU Bonds and Special
 Deposits. Based on the asset allocation and prevailing yield rates on
 these asset classes, the long term estimate of the expected rate of
 return on the fund assets have been arrived at. Assumed rate of return
 on assets is expected to vary from year to year reflecting the returns
 on matching Government Bonds.
 
 8.5 The estimate of future salary increases takes into account
 inflation, seniority, promotion and other relevant reasons.
 
 8.6 In respect of the Companys Defined Benefit plans pertaining to
 Gratuity and Superannuation benefit schemes for employees transferred
 to TIPL in terms of the Scheme of Arrangement, as indicated in Note 13
 above, the present value of obligation as on 1st April, 2010 have been
 worked out by an independent actuary based on relevant information
 related to each such employees.
 
 The fair value of plan assets pertaining to the Company as on 1st
 April, 2010 in respect of Gratuity and Superannuation benefit scheme
 funds, being maintained by Tractors India Limited Staff Gratuity Fund
 and Tractors India Limited Superannuation Fund respectively have been
 bifurcated by the Trustees of the related funds in proportion to the
 present value of the obligation as determined by the independent
 actuary as referred above.
 
 9.  In terms of Accounting Standard (AS) 17 on Segment Reporting
 notified in the Companies Act, 1956, Segment information has been
 presented in the Consolidated Financial Statement [prepared persuant to
 Accounting Standard (AS) 21 on Consolidated Financial Statement
 notified in the Companies Act, 1956] included in the annual report for
 the year.
 
 10.  Related Party Disclosure in keeping with Accounting Standard 18 on
 Related Party Disclosures.  A) List of Related Parties
 
 Subsidiaries Myanmar Tractors Limited
 
 Tractors Nepal Private Limited
 
 TIL Overseas Pte. Limited
 
 Tractors India Private Limited Key Management Personnel Mr. A.
 Mazumdar( Chairman and Whole time Director)
 
 Mr. S. Mazumder( Vice Chairman & Managing Director)
 
 Mr. S K Bhatnagar( Whole time Director - Appointed w.e.f. 1st April,
 2010)
 With the exception of Cranes/ Carrier Units ( Trucks), Earthmoving
 Equipment,Diesel Generating Sets and Self-Propelled Rubber Tyred
 Container Handling Mobile Crane mentioned above ,none of the items
 included in the above classes of goods exceeded individually 10% of the
 total value of Purchases, Stock or Turnover and accordingly
 quantitative information has not been provided for.
 
 11.  The figures for the current year are not comparable with those of
 the previous year (which have been rearranged/regrouped wherever
 necessary),as the figures for the previous year include transactions
 relating to the transferred undertaking pertaining to dealership
 business of Caterpillar, as referred to in Note 13.