Bajaj Hindusthan

1. Contingent Liabilities not provided for :
 
 a) In respect of disputed demands/claims against the Company not
 acknowledged as debts :
 
 (i)   Central Excise matters                     338.33         93.54
 (ii)  Trade Tax matters                            7.86          3.75
 (iii) Other Claims                               306.56        155.03
 (iv)  Income-tax matters                           0.02          0.28
 
 (b) The Company has furnished following guarantees on
 behalf of Bajaj Eco-Tec Products Ltd (wholly owned subsidiary)
 
 (i)Corporate Guarantee of Rs. 740 Million (Rs. 740 Million) to
 a bank for credit facility given against which the outstanding
 balance as at the year end is Rs. 579.72 Million 
 (Rs. 386.58 million)
 
 (ii)Bank Guarantee of Rs. 1.50 Millions (Rs. 1.50 Million) in
 favour of U.P.State  Pollution Control Board for obtaining
 No Objection Cretificate (NOC) from the Pollution Control
 Department for setting up Medium Density Fibre Board and
 Particle Board Plants.
 
 (c) Liability for partly paid shares/warrants         -        142.50
 
 2.  Loss due to Foreign Exchange Fluctuation, under the head Other
 Expenses includes Rs. 584.87 million arising out of restatement of
 foreign currency borrowing as at the year end, which is net of Rs.
 836.53 million, provided in previous year.
 
 3.  The Honble High Court of Allahabad while disposing the various
 Writ Petitions filed by the Company and other sugar producing
 factories, by its Order dated December 19, 2007 had, interalia, quashed
 the State Advised Price (SAP) for the season 2006-07 being arbitrary
 and unreasonable. Based on the legal advice, the Company in previous
 year, had accounted for Sugar Cane liability for the season 2006-07 at
 Statutory Minimum Price (SMP) fixed by the Central Government.
 
 Subsequently Honble Supreme Court on a Special Leave Petition directed
 the sugar companies by its interim order dated February 27, 2008 to pay
 @ Rs. 118/- per quintal for general variety of sugar cane and
 accordingly the company has fully discharged its cane liability.
 Necessary adjustment in accounts arising out of difference between SAP
 and SMP amounts to Rs. 4,652.42 million will be considered as and when
 the matter is finally decided.
 
 4.  During the current year the Company has accounted for Sugar Cane
 Purchases for the season 2007-08 @ Rs. 110/- per quintal pursuant to
 the interim Order dated September 08, 2008 of the Honble Supreme Court
 of India. The Company has fully discharged its cane liability as per
 the said interim order. Necessary adjustment in accounts arising out of
 difference between SAP of Rs. 125/- per quintal and Rs. 110/- per
 quintal amounts to Rs. 1,054.57 million will be considered as and when
 the matter is finally decided.
 
 5.  Pursuant to Approval under Section 212(8) of the Companies Act,
 1956 (the Act) accorded by Government of India, Ministry of Corporate
 Affairs, vide its letter No. 47/534/2008-CL-lll dated 26-08-2008, the
 Company has not attached with its Balance Sheet as at September 30,
 2008, the documents specified in Section 212(1) of the Act in respect
 of its five subsidiaries, viz. (i) Bajaj Hindusthan Sugar and
 Industries Ltd., (ii) Bajaj Eco-Tec Products Ltd., (iii) Bajaj Aviation
 Pvt. Ltd.(formerly known as Bajaj Hindusthan Holdings Private Ltd.),
 (iv) Bajaj International Participacoes Ltda. Brazil, and (v) Bajaj
 Hindusthan (Singapore) Pte. Ltd., Singapore and has disclosed the
 requisite information in the Consolidated Balance Sheet as at September
 30, 2008.
 
 6.  Previous year figures have been regrouped wherever necessary and
 have been shown in brackets.