V B Desai Financial Services Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 30, 2008, inter alia, has approved the following:

1. At the meeting held on January 31, 2008, the Board had decided to issue 4,50,000 convertible share warrants on preferential basis to a select group of persons including promoters as per prevailing SEBI (Disclosure & Investor Protection) Guidelines, 2000 and to seek the approval of the shareholders thereof under Section 81 (1A) and

2. To sub-divide existing one equity share having nominal value of Rs 10/- each into 5 equity shares of the nominal value of Rs 2 each.

However, due to various commercial and other reasons, the Board has considered, not to proceed further in the matter and accordingly it is proposed to rescind the aforesaid decisions and not to seek the approval of the shareholders thereof.