Haryana Leather Chemicals Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 31, 2008, inter alia, has transacted the following :

1. To consider and approve loan assistance of Rs 495 lacs from Technology Development Board

Chairman placed before the Board Offer Letter received from Technology Development Board (TDB) agree to provide financial assistance to the tune of Rs 495 Lacs @ 5% interest p.a. for commercialization of indigenously developed Cross Linkable Aqueous Aliphatic Polyurethane Dispersion for Leather and Shoe Finishing. The meeting after lengthy discussion found some terms and conditions unreasonable and unacceptable e.g. asking to furnish personal guarantee of the promoters and payment of Royalty @ 0.5% of Sales. Thereafter, The Board decided to make a request to the TDB to reconsider and remove these conditions from the offer letter.

2. Purchase of land in calcutta leather complex for setting up R&D centre for dry processing work

Board accorded to purchase a piece of land in Calcutta Leather Complex at Kolkata for setting up R&D Centre for Dry Processing Work.