1.  Contingent Liabilities :
 
 [a] Claims against the Company not acknowledged as debts Rs. 450000
 [Previous year Rs. 450000].
 
 [b] Sales Tax matters under appeal Rs. 4283617 [Previous year Rs.
 4283617].
 
 2.  Loans and Advances, Sundry Debtors and balances in supplier and
 other accounts (with both debit and credit balances) are subject to
 confirmation and subsequent adjustments, if need be.
 
 3.  Related Party Disclosures :
 
 (i) There is no related party, viz., the requirements of Accounting
 Standard 18, issued by The Institute of Chartered Accountants of India.
 Though LML Limited is strictly not a ''related party'', it is being so
 considered to make the financial statements more transparent.
 
 (ii) Transactions with LML Ltd. during the year have been as under :
 
 There is only one segment i.e. Two Wheeler for the Company. However,
 the Company''s own manufacturing operations of two wheelers have
 remained suspended for some years. Final outcome about its future
 operations remains pending.
 
 4.  The Company has substantial carried forward losses and unabsorbed
 depreciation. In view of uncertainty of sufficient future taxable
 income which may be available for its realization, the Deferred Tax
 Assets (Net) in accordance with Accounting Standard 22, issued by The
 Institute of Chartered Accountants of India, has not been recognized by
 way of prudence, as also in the previous year.
 
 5.  i) A physical verification of other inventories, finished goods
 and Jigs & Tools and was carried out as at 31.03.2011 and reassessed by
 a technical team. It found that the said goods have no value and
 accordingly values as on 01.04.2010 of Rs.316421, Rs. 2500 and Rs.
 57421 respectively have been written off in the books during the year.
 
 ii) Inventory of raw material / components amounting to Rs. 1659083
 lying with Bonded premises for over twenty years has no value and hence
 have been written off in the books during the year.
 
 iii) Liability for custom duty on raw material/components and excise
 duty on finished goods as above and if any will be examined and settled
 if and when such issue arises.
 
 6.  The matter of impairment of assets has been considered as at 31st
 March, 2011. As per assessment made and valuation carried out by an
 independent professional, no impairment loss against fixed assets is
 expected.
 
 7.  In the absence of information from Sundry Creditors regarding
 status under The Micro, Small and Medium Enterprises Development Act,
 2006, the liability of interest can not be reliably estimated, nor
 required disclosures can be made.
 
 8.  In view of carry forward losses, no Provision for Taxation has
 been made for the year.
 
 9.  The Company has been advised that the provisions of The Sick
 Industrial Companies [Special Provision] Act, 1985 are not applicable
 to it.
 
 10.  Figures of the previous year have been regrouped and recasted
 wherever necessary to make them comparable.