1 CORPORATE MRNHMTMI
 
 The Limited (the company) is engaged in manufacturing of a
 comprehensive range of material handling lifting port and road
 construction solutions with integrated customer support and after Sales
 Service. Overall the Company''s products and services are termed as
 Materials Handling Solutions (MHS). The Company has two manufacturing
 facilities - Kamarhatty and Kharagpur in West Bengal. The Company is a
 Public Limited Company and is listed in Bombay, Calcutta and National
 Stock Exchange in India.
 
 2.1 Rights, Preferences and Restrictions attached to Equity Shares
 
 The Company has one class of Equity Shares having a par value of Rs 10/-
 per share. Each shareholder is eligible for one vote per share held.
 The Dividend proposed by the Board of Directors is subject to the
 approval of the Shareholders in the ensuing Annual General Meeting,
 except in case of Interim Dividend. In the event of liquidation, the
 Equity shareholders are eligible to receive the remaining assets of the
 Company after distribution of all Preferential amounts, in proportion
 to their shareholding.
 
 3.1 The above borrowings are secured by a first pari passu charge on
 all the current assets of the Company (namely Stocks, Bills Receivable
 and Book Debts) and a second pari passu charge on all movable
 (excluding such movables as may be agreed by Consortium Bankers from
 time to time) fixed assets of the Company, both present and future and
 on certain immovable properties of the Company under a joint deed of
 hypothecation between the Company and its Consortium Bankers.
 
 4.1 There are no outstanding dues to Micro and Small Enterprises based
 on information available with the Company.
 
 5.1 Provision for Warranty:
 
 Warranty which hitherto were accounted during the period of incurrence
 are now accounted for on accrual basis. As a result of this the profit
 for the year is lower by Rs 70 lacs.
 
 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 outflows
 will vary as and when warranty claim will arise - being typically up to
 one year.
 
 As per the terms of the contracts, the Company provides post-contract
 services / warranty support to its customers. The Company accounts for
 the post-contract support / provision for warranty on the basis of the
 information available with the Management duly taking into account the
 current and past technical estimates.
 
 6.1 Based on the valuation report submitted by the valuers appointed
 for the purpose, certain items of the Company''s fixed assets (viz.
 Freehold and Leasehold Land, Buildings and Plant and Equipment) were
 revalued on 31st March,1993 after considering the following factors
 
 - The then estimated current market value pertaining to Leasehold Land
 and Freehold Land and Buildings thereon.
 
 - Value of Plant and Equipment based on their the then current cost of
 replacement.
 
 - Adjustments for the then condition, the standard of maintenance,
 depreciation up to valuation date etc.
 
 The resultant revaluation surplus of Rs 2,472 Sacs, arising from the
 aforesaid revaluation, were transferred to Revaluation Reserve as
 reflected in the Company''s annual accounts for 1992-93.
 
 Depreciation on these revalued assets as calculated in the manner
 includes an additional charge of Rs 15 lacs (Previous Year Rs 15 lacs)
 and an amount equivalent to the additional charge has been transferred
 to the Profit and Loss Account from Revaluation Reserve; The effective
 depreciation rates (other than for leasehold land) are as per Schedule
 XIV to the Companies Act, 195B.
 
 6.2 Ownership of a flat (cost Rs 39 lacs) belonging to the Company in a
 Co-operative Housing Society is registered in the name of the Managing
 Director of erstwhile Spun dish Engineering Ltd.
 
 6.3 Other adjustments represents borrowing cost capitalized during the
 year Rs 342 lacs (Previous Year Nil),
 
 6.4 The amount has been de-capitalized on a prudent basis due to
 certain operational constraint regarding the usage of the land.
 
 6.5 Capital Work in Progress includes borrowing costs Rs 397 lacs
 (Previous Year Nil).
 
 7.1 Technical Know-how represents technical drawings, designs etc.
 relating to manufacture of the Company''s products acquired pursuant to
 various agreements conferring the right to manufacture and usage only.
 
 8.1 Employee Benefits
 
 The Company has recognized, in Statement of Profit and Loss for the
 year ended 31st March, 2012 an amount of Rs 47 lacs (Previous year Rs 37
 lacs) as expenses under defined contribution plans.
 
 (A) Provident Fund
 
 The company has an obligation to fund any shortfall on the yield of the
 trust''s investments over the administered interest rates on annual
 basis.  These administered rates are determined annually predominantly
 considering the social rather than economic factors. Based on the final
 guidance for measurement of Provident Fund liabilities issued by the
 Actuarial Society of India, the Company''s liability at the year end
 of Rs 57 lacs has been actuarially determined by an independent
 authority. The Company has contributed for the year ended 31st March
 2012 an amount of Rs 172 lacs (Previous year Rs161 lacs) at Provident
 Fund.
 
 (B) Superannuation Fund :-
 
 (i) Certain eligible employees of the Company who had attained at least
 45 years of age as on 1 st April,2009 are entitled to Superannuation
 benefit under the Superannuation scheme (a funded Defined Benefit
 Planundera common Trust- Tractors India Limited Superannuation 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 continuous 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,2012,
 
 (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 up to 31st March,2009 come under the purview of
 ''Defined Benefit Scheme'' as indicated 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 31 st March,2009.
 
 (C) 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 Company''s plan (based on
 average salary of last 36 months and number of years of service,
 restricted to a maximum 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, 2012,
 
 8.2 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, State and
 General Government Securities. 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.
 
 8.3 The estimate of future salary increases take into account
 inflation, seniority, promotion and other relevant reasons.
 
 9.1 Miscellaneous expenses include charge/(credit) on account of Loss
 on Foreign Exchange (Net) of Rs 196 lacs (Previous year Gain of Rs 98
 lacs)
 
 9.2 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 100 lacs (Previous
 Year Rs 108 lacs)
 
 9.3 During the year, the Company commenced initial trial run followed
 by commercial production (in March 2012) at the Kharagpur location.
 Total capitalization of Rs 8,439 lacs (previous year Nil) against these
 projects include following trial run expenses (net).
 
                                                         (Rs.in lacs)
 
 10 CONTINGENT LIABILITIES IN RESPECT OF     
 
                                               As at 
                                           31.03.2012        As at
                                                           31.03.2011
 
 a.  Sales Tax Matters under dispute            1,509             369 
 [Related payments Rs 5
 lacs (Previous year Rs 6 lacs)]
 
 b.  Income Tax Matters under dispute             303             176
 
 [ Excludes disputed Income Tax 
 matters, in view of favorable Tribunal
 decision in similar case].
 
 [Related payments Rs 93 lacs (Previous 
 year Rs.48 lacs)]
 
 c.  Service Tax matters under dispute          1,213           1,314
 [Related payments Rs Nil (Previous
 year Rs.217 lacs)]
 
 d.  Excise Duty matters under dispute             48              85 
 [Related payments Rs 23 lacs
 (Previous year Rs 23 lacs)]
 
 The management believes that the                   6              27
 ultimate outcome of these proceedings
 will not have a material adverse 
 effect on the Company''s financial
 position and result of operations.
 
 11.1 Based on legal proceedings initiated by the Employees'' Union /
 Association and the interim order of the Hon''ble 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, 2012 being
 Employer''s Rs 4 lacs (Previous Year Rs 7 lacs) and Employees'' Rs 1 lacs
 (Previous Year Rs 3 lacs),
 
 11.2 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 1 st 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 Hon''ble 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 31
 March, 2012 being Employer''s Rs 3 lacs (Previous Year Rs 1 lac) and
 Employees'' Rs 1 lac (Previous Year Rs 0.32 lacs).
 
 12 Pursuant 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 Hon''ble High Court at Kolkata vide order dated 12th
 July,2010, the undertaking of the Company pertaining to dealership
 business of Caterpillar (comprising Construction and Mining Solutions
 and Power System Solutions) has been transferred to and vested in TIPL
 on a going concern basis with effect from the appointed date of 1st
 April, 2010.
 
 The said Scheme has been given effect to in the accounts for the year
 ended 31st March 2011 in accordance with the said High Court order.
 
 13 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 Statements [prepared pursuant
 to Accounting Standard (AS) 21 on ''Consolidated Financial Statements
 notified in the Companies Act, 1956] included in the annual report for
 the year.
 
 14 The Revised Schedule VI has become effective from 1st April, 2011
 for the preparation of Financial Statements. This has significantly
 impacted the disclosure and presentation made in the Financial
 Statements. Previous year''s figures have been regrouped / reclassified
 wherever necessary to correspond with the current years''
 classification / disclosure.