Kanoria Chemicals & Industries Ltd has informed BSE that the members at the Extra Ordinary General Meeting (EGM) of the Company held on December 14, 2007, inter alia, have accorded to the following:

1. Alteration in the Capital of the Company as follows:

(i) The unissued 10,00,000 Cumulative Preference Shares of Rs 100/- each comprised in the Authorised Share Capital of the Company be and are hereby reclassified as 1,00,00,000 Equity Shares of Rs 10/- each.

(ii) Increased the Authorised Share Capital of the Company from Rs 35,00,00,000/- (Rupees thirty-five Crore only) divided into 3,50,00,000 Equity Shares of Rs 10/- each to Rs 50,00,00,000/- (Rupees fifty Crore only) divided into 5,00,00,000 Equity Shares of Rs 10/- each by creation of 1,50,00,000 new Equity Shares of Rs 10/- each, and

(iii) The 5,00,00,000 Equity Shares of the face value of Rs 10/- each comprised in the Authorised Share Capital of the Company be and are hereby sub-divided into 10,00,00,000 Equity Shares of the face value of Rs 5/- each.

And consequential amendments in the Memorandum of Association of the Company.

2. Capitalizaion of such sum standing to the credit of Capital Reserve Account and / or Capital Redemption Reserve Account and / or Securities Premium Account of the Company as on March 31, 2007, as may be considered necessary by the Board, for the purpose of issue of fully paid up Bonus Shares of Rs 5/- (Rupees five) each to the holders of the Equity Shares of the Company, whose names shall appear in the Register of Members or in the respective beneficiary accounts with their respective Depository Participants, on the “Record Date” to be determined hereinafter by the Board for the purpose, in the proportion of one fully paid up Bonus Share of Rs 5/- (Rupees five) each for every two fully paid-up Equity Shares of Rs 5/- (Rupees five) each held by them and that the Bonus Shares so distributed shall, for all purposes, be treated as an increase in the nominal amount in the Capital of the Company held by each such member, and not as income, subject to necessary provisions & approvals.