1. Of the above, 2,64,27,923 shares were allotted as fully paid-up shares
 by capitalising Capital Reserve, Capital Redemption Reserve and Share
 Premium.
 
 Of the above, 68,55,885 Equity Shares of Rs. 10/- each fully paid-up
 issued to Financial Institutions/Debenture holders on part/full
 conversion of Loans/Debentures.
 
 1. Contingent liabilities:
 
 (a) Customers' bills discounted: Rs. 9,80.66 lakhs (2000 - Rs. 8,34.06
 lakhs)
 
 (b) Guarantees outstanding : Rs. 3,82.09 lakhs (2000 - Rs. 5,87.68
 lakhs)
 
 (c) Sales-tax/Excise/lncome-tax matters under dispute: Rs. 45,41.57
 lakhs (2000 - Rs. 41,65.84 lakhs)
 
 (d) Royalty under dispute: Rs. 2,15.98 lakhs (2000 - Rs. 2,15.98 lakhs)
 
 (e) Employees State Insurance matter under dispute: Rs. 1,99.00 lakhs
 (2000 - Rs. 1,99.00 lakhs)
 
 2. Dividend in arrears on 11% Cumulative Redeemable Preference Shares :
 Rs. 6,42.58 lakhs (2000 - Rs. 3,59.66 lakhs)
 
 3. Estimated amount of contracts remaining to be executed on capital
 accounts not provided for Rs. 32,50.05 lakhs (2000 - Rs. 4,13.23 lakhs)
 
 4. Exchange difference in respect of forward exchange contracts to be
 charged or capitalised in subsequent accounting period amounts to Rs.
 0.35 lakhs (2000 - Rs. 2.45 lakhs)
 
 5. Sundry Creditors - Small scale industrial undertakings include the
 following amounts exceeding Rs. 1 lakh and outstanding for more than 30
 days:
 
                                                    2001          2000
                                                (Rs. lakhs)    (Rs. lakhs)
 Name of the party
 
 Sri Lakshmi Industries                               -           1.61
 Sabhitri Precision Engg. Works                       -           1.41
 Total                                                -           3.02
 
 6. Taking into account BFIL Finance Limited's performance of debt
 recovery, property settlements from its debtors, and discussions with
 its bankers for settlement of dues, no further provision is considered
 necessary for the year ended 31st March, 2001 towards the exposure
 therein aggregating Rs. 72,24.11 lakhs.