SHARE CAPITAL
 
 (Of the above 7,50,000 Equity Shares of Rs. 10/- each allotted as fully
 paid-up by way of Bonus Shares from Reserves and 3,28,670 Equity Shares
 of Rs. 10/- each allotted pursuant to the scheme of amalgamation as per
 Order dated 13-09-91 approved by the Honourable High Court of
 Tamilnadu, Chennai)
 
 OTHER NOTES
 
 1.  CONTINGENT LIABILITIES
 
 Contingent Liabilities not provided for :
 
 a) bills discounted with Bank remaining outstanding as on 31.3.2001 :
 Rs. Nil (Previous Year : Rs. 9.90 Lakhs).
 
 b) the claims against the Company not acknowledged as debts Rs.21.58
 Crores (As per the claims of the Contract Agencies for the progress of
 works done at project site/for equipment brought to the project site of
 the Company's Hydro Electric Project at Bhoothathankettu under
 construction, which includes the claim submitted in the Arbitration
 Proceedings initiated by Ws. VA Tech Escher Wyss Flovel Ltd., The
 Company has paid Rs. 180 Lakhs as 'on account payment' to Ws. VA Tech
 Escher Wyss Fiovel Ltd., The progress at site or the materials brought
 to the site has not been accounted for by the company). (Previous Year
 : Rs. 1.48 Crores).
 
 c) power charges to the extent of Rs. 619.50 Lakhs payable to Kerala
 State Electricity Board since the appeal is pending in the Hon'ble High
 Court of Kerala.
 
 d) electricity duty Demand by the Kerala State Electricity Board since
 a stay has been obtained from the Hon'ble High Court of Kerala in view
 of the exemption available for the Electricity Duty.
 
 e) the penalty in respect of Entry Tax amounting to Rs. 5.44 Lakhs for
 which personal guarantee has been given by Managing Director of the
 Company to the Kerala State General Sales Tax Department.
 
 f) the demand of Rs. 7,97,029/- from the Department of Employees'
 Provident Fund towards interest and damages for the period relating to
 prior years since the matter is pending with appeal.
 
 g) against a total demand of Rs. 8.35 Lakhs in respect of Excise Duty
 Rs. 2.00 Lakhs has been paid and the demand is disputed in Appeals;
 (Previous Year : Rs. 8.35 Lakhs).
 
 h) guarantee given by bank against which counter guarantee has been
 given by the Company amounting to Rs. 37.93 Lakhs (Previous Year : Rs.
 39,45 Lakhs).
 
 i) against a total demand of Rs. 1,74,450/- in respect of license fee
 payable to Grama Panchayat, Rs. 34,890/- has been paid and the demand
 is disputed in Appeal.
 
 j) against a demand of Rs. 14.59 Lakhs in respect of re-opened
 income-tax assessments relating to the assessment years 1993-94 &
 1994-95, Rs. 3.66 Lakhs has been paid and the case is pending in
 appeal;
 
 2.  Estimated amount of capital contracts necessary to be executed and
 their accounts : Rs. 26.53 Crores (Previous year : Rs. 27.03 Crores).
 
 3.  Payments against supplies from small scale and ancillary
 undertakings are made in accordance with the agreed credit terms and to
 the extent ascertained from the available information and the amount
 outstanding for more than 30 days and exceeding Rs. 1 Lakh as on
 31.03.2001 was Rs. 2.35 Lakhs (Previous Year : Rs. 1.65 Lakhs).
 
 M/s. Petro Mechanical Equipment Company, Chennai : Rs. 1.10 Lakhs M/s.
 Thirumurugan Pulverising Mills, Coimbatore : Rs. 1.25 Lakhs.
 
 4.  As per practice consistently followed Excise Duty payable on
 Finished Goods held in stock is neither included in the expenditure nor
 included in such stocks, but is accounted for on clearance of the
 goods. This accounting treatment has no impact on profits.
 
 5.  Profit/Loss is any, on transfer of materials between units have not
 been-eliminated on consolidation.
 
 6.  The Tax Deducted at Source on Dividends and Interest received
 during the year is Rs. 56,708/- (Previous Year : Rs. 63,747/-).
 
 7.  Provision for tax has been made in these accounts under Minimum
 Alternate Tax (MAT) as per related provisions of the Income Tax Act,
 1961,
 
 8.  Term Loans are secured by First Charge ranking Paripassu with
 M/s. Industrial Investment Bank of India (IIBI), M/s. State Bank of
 India (SBI) and M/s. Indian Renewable Energy Development Agency Ltd.,
 (IREDA) on Equitable Mortgage of Land & Building and Hypothecation of
 Plant & Machinery.
 
 9.  Term Loans from IIBI is guaranteed by the Managing Director and a
 shareholder of the Company and the Secured Loans from SBI & IREDA are
 guaranteed by the Managing Director, Director and Ex-Director of the
 Company (Aggregate amount of Guarantee Rs. 2,537 Lakhs; Previous Year :
 Rs. 2,308 Lakhs).
 
 10.  Term Loan received from Finance Companies are secured by
 Hypothecation of specified Machineries of the Company by way of
 exclusive charge.
 
 11.  The Cash Credit/Over Draft from Bankers are secured by a First
 Charge by way of Hypothecation of Stock-in-Trade, Stores and Books
 Debts.
 
 12.  Certain Sundry Debtors, Loans and advances and Creditors are
 subject to confirmation.
 
 13.  Capital Reserve represents the net adjustments on revaluation of
 Assets on account of Amalgamation.
 
 14.  The Income-tax Assessment for the Year Ended 31.3.2000
 corresponding to the Assessment Year 2000-2001 is pending.
 
 15.  The statutory dues have been paid with the concerned authorities
 only with a few days of delay due to Company's critical financial
 position. However, there were no dues as on date.
 
 16.  Comparative figures for previous financial year have been
 re-classified and re-grouped where necessary to conform to this year's
 classification.