NOTE :

The consolidated financial results include results of the following companies:

1. Gross Written Premium (GWP) for the quarter and nine months ended December 31, 2007 of general insurance business is Rs.5674.2 million and Rs.16899.1 million respectively. The corresponding figure for the quarter and nine months ended December 31, 2006 was Rs. 4594.1 million and Rs. 13015.2 million respectively.
   
   Gross Written Premium (GWP) for the quarter and nine months ended December 31, 2007 of life insurance business is Rs.21743.3 million and Rs.52350.1 million respectively. The corresponding figure for the quarter and nine months ended December 31, 2006 was Rs. 10981.3 million and Rs. 27087.6 million respectively.
   
   
2. For the purpose of consolidated financials the net result of the insurance business revenue accounts together with shareholders income and transfers to policyholders revenue account in accordance with the reporting framework of IRDA, amounting to a net surplus of Rs. 105.2 million prior to elimination of inter segment revenue of Rs. 31.3 million for the nine months ended December 31, 2007, has been included in a manner consistent with the parent's reporting format as was done for the previous periods. However, for reporting segment information, segment revenues for both insurance businesses represent the premiums earned and other income.
   
   
3. During the year, Bajaj Auto Limited has acquired 22.56% equity in KTM Power Sports AG through its wholly owned subsidiary Bajaj Auto International Holdings BV.
   
   
4. The company had announced a Voluntary Retirement Scheme (VRS) on 15 October 2007 for the workmen of its Waluj plant. The scheme was open till 27 October 2007. In response to the VRS, 712 workmen opted for the same.
   
   In line with the policy consistently followed by the company, the liability amounting to Rs. 1023.6 million, in respect of the same will be charged equally over the remaining two quarters of the year. A sum of Rs. 511.8 million has been charged in the current quarter. The balance will be charged in the last quarter of the current financial year.
   
   
5. The Company with effect from 3rd September 2007 has discontinued its vehicle assembly facilities at its Akurdi Plant. The available infrastructure comprising land, buildings and some machinery, with suitable modifications/alterations, would be employed for business purposes including enhancing product and technology development capabilities. Consequently, surplus/redundant machinery, dies, components and spares have been identified in respect of which the company has recognised a provision estimated at Rs. 80.3 million in the above results for the nine months ended 31st December 2007 towards assessed losses.
   
   
6. The results for the quarter and nine months ended December 31, 2007 have been subjected to "Limited Review" by the auditors.
   
   
7. The company did not have any investor complaints pending as on 1 October 2007 and as on 31 December 2007. There were fifteen investors' complaints received and disposed of during the quarter ended 31 December 2007
   
   
8. The Scheme of arrangement approved by the Board of Directors on 17 May 2007, involving demerger of undertakings of the company resulting into three entities viz. Bajaj Auto Limited, Bajaj Finserv Limited and Bajaj Holdings & Investment Limited, has been approved by the shareholders and unsecured creditors at the court-convened meetings held on 18 August 2007. The Honourable High Court of judicature at Bombay has also sanctioned the scheme of arrangement on 18 December 2007. Pending receipt of written court order and filing the same with the Registrar of Companies, only upon which the scheme becomes effective, the above results are of the composite entity.
   However, given below are the results for the nine months ended December 31, 2007 of the undertakings proposed to be demerged as per the scheme.
   
   

   	Demerged undertakings		Remaining Undertaking	Composite
   	Manufacturing	Strategic Business	-Investment
   	- Automotive	- Insurance, Investment & Others
   	(New Bajaj Auto Limited)	(Bajaj Finserv Limited)	(New Bajaj Holdings & Investment Limited)	(Pre-demerger Bajaj Auto Limited)
   TOTAL INCOME	70616.8	749.0	2650.8	74016.6
   Total expenditure	60707.4	291.0	27.8	61026.2
   Interest	33.5	-	-	33.5
   Exceptional items
   Compensation paid under Voluntary Retirement Schemes	511.8	-	-	511.8
   Provision for write downs	80.3	-	-	80.3
   Profit / (Loss) from ordinary activities before tax	9283.8	458.0	2623.0	12364.8
   Net Profit / (Loss) from ordinary activities after tax	6273.8	248.0	2378.0	8899.8
   Net Profit / (Loss) for the period	6271.0	248.0	2378.0	8897.0

   
   
   
9. The above results have been reviewed by the Audit Committee and approved by the Board of Directors in the meeting held on January 30, 2008.