Prakash Industries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on March 27, 2008, inter alia, have approved the following business:

- Investment of Rs 400 crores by way of purchasing 570000 Equity Shares of Rs 10/- each at a premium of Rs 7008 per share for consideration other than cash of an unlisted Company owned by the promoters and having mining rights of an iron ore mine, and issue of 16,00,000 (sixteen lacs) 0% Compulsory Convertible Preference Shares (CCPS) of the Company of Rs 100/- each at premium of Rs 2400/- per share to the promoters of that Company in lieu thereof which would be convertible into 10 equity shares of PIL within a period of 18 months.

- The issue price of the 0% Compulsory Convertible Preference Shares (CCPS) of Rs 100/- each convertible into equity shares has been determined as per SEBI Guidelines on the relevant date i.e. March 26, 2008.

- Re-appointment of Managing Director and Whole-time Directors of the Company.

- Increasing the Authorised Share Capital of the Company from Rs 160 crores to Rs 170 crores.

- Increasing the borrowing powers of the Board of Directors from Rs 1000 crores to Rs 3000 crores.

The Board has also approved calling of an Extra Ordinary General Meeting, for seeking
the approval of the members of the Company for approval of the aforesaid businesses on
April 25, 2008.