BCL will issue and allot to BIL 20 crore equity shares of Rs 10 each and 1 crore 12 per cent cumulative redeemable preference shares of Rs 100 each in BCL credited as fully paid-up and aggregating Rs 300 crore.

In addition BCL will pay to BIL a mutually agreed amount to balance the difference between net book value (asset less liabilities) of the cement division as on November 1997 and Rs 300 crore. As per the audited books of account of BIL this difference is Rs 540.94 lakh as on that date. The net book value of the cement division as on the appointed date has been arrived at Rs 305.41 crore and the consideration would be predominantly in the form of equity and redeemablepreference shares.