Mukand Updates

With reference to the Published Unaudited Financial Results of the Company for the quarter ended September 30, 2007, Mukand Ltd has informed that in note no 2 to the unaudited financial results, the Company had mentioned as under :

"To reduce Company's dependence on procurement of coke from the market and to cut costs, Company has, after the close of the quarter, signed a Memorandum of Understanding with a party to purchase its coke manufacturing facilities in the State of Maharashtra with a capacity to produce 120,000 MT per annum of Metallurgical Coke from Coking Coal."

The above note to the unaudited financial results was added as the Memorandum of Understanding (MoU) was signed with the party on October 10, 2007 after the closing of the quarter ended September 30, 2007. The said MoU inter alia provided that the purchase was subject to due diligence to be carried out by the Company. After due diligence, it was found that aforesaid purchase was not in the interest of the Company to proceed further in the matter. Accordingly, said MoU has been terminated on November 28, 2007.

The Company has acquired land near its plant at Ginigera (Karnataka) to set up its own coke manufacturing facilities and hence there will be no financial impact on costs due to aforesaid termination of MoU.