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68Schedule forming part of the Accounts for the year ended 31st March, 2011SCHEDULE ‘O’ (Contd.)(` in ‘000)As at 31.03.2011 As at 31.03.20107. Guarantees7.1 Bank Guarantees outstanding 243,103 337,8167.2 Corporate Guarantee given on behalf of Subsidiaries :- LimitTractors India Private Limited 4,000,600 NilMyanmar Tractors Limited 89,740 90,600TIL Overseas Pte. Ltd. 67,305 67,950- Amount outstanding at year-endTractors India Private Limited 2,200,400 NilMyanmar Tractors Limited Nil NilTIL Overseas Pte. Ltd. Nil Nil8. Capital Commitment [Net of advance ` 30,381 thousand (Previous year ` 22,237 thousand)] 566,071 18,5669.1 Based on legal proceedings initiated by the Employees’ Union/ Association and the interim order of the Hon’ble Calcutta High Court dated 22ndDecember,2006 and 18th April,2007 restraining the Company from making any contribution/ deduction towards Employees’ State Insurance in respectof 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 ` 7,501 and ` 10,000, no contributions/ deductions have been made and deposited with theappropriate authorities. The related amounts involved as on 31st March, 2011 being (Employer’s) ` 679 thousand (Previous Year ` 669 thousand) and(Employees’) ` 250 thousand (Previous Year ` 246 thousand).9.2 Consequent to enhancement of Employees’ State Insurance benefit ceiling for ‘Employee Wages’ from ` 10,000 to ` 15,000 per month with effect from1st May 2010, legal proceedings have been initiated by the Employees’ Union/ Association of the Company and an interim order dated 13th August, 2010has been issued by the Hon’ble Calcutta High Court in this regard, restraining the Company from making contribution/ deduction towards Employees’ StateInsurance in respect of employees whose monthly salaries (i.e. basic, dearness allowance and overtime ) are between ` 10,001 and ` 15,000. In view ofthe said Order, the Company has neither deducted from the certain concerned employees nor contributed its own share to the Employees State InsuranceScheme with effect from 1st August, 2010, the related amounts involved as on 31st March, 2011 being (Employer’s) ` 87 thousand (Previous Year NIL)and ( Employees’) ` 32 thousand (Previous Year NIL).10. The Company has various residential/ commercial premises taken under cancellable operating lease. Leases range for periods between 3 to 5 years. Termsof the lease include operating term for renewal, increase in rent for future periods, terms of cancellation etc. The operating lease payments for the yearamount to ` 10,773 thousand (Previous Year ` 18,572 thousand).11. There are no outstanding dues for Micro and Small Enterprises based on information available with the Company.12. Technical Know-how [ shown under Intangible Assets - Schedule ‘E’ ] represents technical drawings, designs etc. relating to manufacture of the Company’sproducts acquired pursuant to various agreements conferring the right to manufacture and usage only.13. 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 transferorCompany) and its wholly owned subsidiary Tractors India Private Limited (TIPL) ( the transferee company), as sanctioned by the Hon’ble High Court atCalcutta vide order dated 12th July, 2010, the undertaking of the Company pertaining to dealership business of Caterpillar (comprising Construction andMining Solutions and Power Systems Solutions) has been transferred to and vested in TIPL on a going concern basis with effect from the appointed date of1st April, 2010, in consideration of 4489430 number of Equity Shares of TIPL at ` 10/- each at a premium of ` 203.48 per share fully paid up, amounting to` 958,396 thousand, on a slump sale basis.