Polytex India Ltd has informed BSE that the members at the Extra Ordinary General Meeting (EGM) of the Company held on March 17, 2008, inter alia, have accorded the following:

1. Increase the authorised share capital of the Company from Rs 1,50,00,000 (One Crore Fifty Lacs) divided into 15,00,000 (Fifteen Lacs) Equity shares of Rs 10/- each to Rs 15,00,00,000 (Fifteen Crores) divided into 1,50,00,000 (One Crore Fifty Lacs) Equity shares of Rs 10/- each and consequential amendments in the Memorandum & Articles of Association of the Company.

2. Authority to the Board to offer, issue and allot on behalf of the Company, 1,20,00,000 equity shares of the face value of Rs 10/- each in the share capital of the Company at par for an amount aggregating to Rs 12,00,00,000/- (Rupees Twelve Crore only) to the existing shareholders of the Company which at the date of offer (?the Record Date?) to be decided by the Board of Directors of the company in due course are holders of the existing equity shares of the company, on a rights basis or their renounces in the proportion of 8 new equity shares for every 1 existing fully paid equity shares of the company for cash, on such terms and conditions as may be decided and deemed appropriate by the Board at the time of issue and allotment in consultation with the Lead Managers and other such professional intermediaries, subject to necessary provisions & approvals.

3. Authority to the Board to borrow any sum or sums of money from time to time at their discretion, for the purpose of the business of the Company, which together with the monies already borrowed by the Company, (apart from temporary loans obtained from the Company’s Bankers in the ordinary course of business) may exceed at any time, the aggregate of the paid-up capital of the Company and its free reserves (that is to say, reserves, not set apart for any specific purpose) by a sum not exceeding Rs 50 Crores, and that the Board of Directors be and is hereby empowered and authorized to arrange or fix the terms and conditions of all such monies to be borrowed from time to time as to interest, repayment, security or otherwise as it may think fit, subject to necessary provisions & approvals.