SECTION 208 PAYMENT OF INTEREST OUT OF CAPITAL

1. Subject - Payment of interest out of Capital.

2. Passing Authority - General Meeting.

3. Nature of the Resolution -

"RESOLVED THAT: subject to the approval of the Central Government, interest at the rate of 10 per annum be paid on the issued and paid up share capital of 5 Crores consisting of 50 lakhs equity shares of Rs.10/- each in respect of the year ended 31st March 2001 to those share-holders who are registered in books of the company as on 14th August, 2001.

5.Guidelines:

1) Special resolution is not necessary if the company's Articles authorise payment.

2) Previous sanction of the Central Government is necessary.

3) Interest may be paid on capital if the payment is bona fide and in the interest of the company.

6. Filing:

Form 23--within 30 days.