Kinetic Engineering updates

Kinetic Engineering Ltd has informed that an Extra Ordinary General Meeting (EGM) of the members of the Company will be held on November 06, 2007, inter alia, to transact the following business:

1. Increase the Authorised Share Capital of the Company from Rs 50,00,00,000 (Rupees Fifty Crores) divided into 1,93,60,200 (One Crore Ninety Three Lakhs Sixty Thousand Two Hundred) Equity Shares of Rs 10/- each, 1,50,00,000 (One Crore Fifty Lakhs) Redeemable Non-Convertible Non-Cumulative Preference Shares of Rs 10/- each, 6,50,000 (Six Lakhs Fifty Thousand) Optionally Convertible Cumulative Preference Shares of Rs 156/- each, 3,20,500 (Three Lakhs Twenty Thousand Five Hundred) Redeemable Cumulative Preference Shares of Rs 156/- each and 5,00,000 (Five Lakhs) Unclassified Shares of Rs 10/- each to Rs 63,40,00,000 (Rupees Sixty three Crores forty lakhs) divided into 1,93,60,200 (One Crore Ninety Three Lakhs Sixty Thousand Two Hundred) Equity Shares of Rs 10/- each, 1,50,00,000 (One Crore fifty Lakhs) Redeemable Non-Convertible Non-Cumulative preference Shares of Rs 10/- each, 15,07,400 (Fifteen Lakhs Seven Thousand Four Hundred) Optionally Convertible Cumulative Preference Shares of Rs 156/- each, 3,20,500 (Three Lakhs Twenty Thousand Five Hundred) Redeemable Cumulative Preference Shares of Rs 156/- each end 5,24,560 (Five Lakhs twenty four Thousand five hundred sixty) Unclassified Shares of Rs 10/- each by creation of 8,57,400 Optionally Convertible Cumulative Preference Shares of Rs 156/- each and 24560 Unclassified Shares of Rs 10/- each & consequential amendment in the Memorandum & Articles of Association of the Company.

2. To create, offer, issue and allot to Micro Age Instruments Pvt Ltd ('MAIPL' which term shall include its affiliates and nominees), under and by way of a preferential issue 8,65,384 (Eight Lakhs Sixty Five Thousand Three Hundred and Eighty Four) Optionally Convertible Cumulative Preference Shares of Rs 156/- each, fully paid-up, in the share capital of the Company convertible in full into maximum of 8,65,384 fully paid-up equity shares of the face value of Rs 10/- each at a price of Rs 156/- per equity share (including premium of Rs 146/- per share) which price is higher than the price calculated as per the formula specified in Chapter XIII of the SEBI (Disclosure and Investor Protection) Guidelines, 2000 for preferential issues with reference to the 'Relevant Date' being 30 days prior to the date of this Extraordinary General Meeting against conversion of the existing inter-Corporate Deposit given to the Company by MAIPL, subject to necessary provisions & approvals.

3. To borrow from time to time to such sums of money as it may consider fit and proper for the purpose of the business of the Company, notwithstanding that the monies to be so borrowed together with monies, already borrowed by the Company (apart from temporary loans obtained or to be obtained from the Company’s Bankers in the ordinary course of business), may exceed the aggregate of the paid-up capital of the Company and its free reserves provided that the total amount so borrowed by the Board and outstanding at any time, shall not exceed the sum of Rs 300.00 Crores (Rupees Three Hundred Crores Only), subject to necessary provisions & approvals.

4. To create, offer, issue and allot to Reliance capital Ltd ('RCL' which term shall include its affiliates and nominees), under and by way of a preferential issue of 1,50,00,00 (One Crore fifty Lakhs) Redeemable Non-Convertible Non-Cumulative Preference Shares of Rs 10/- each, fully paid at par, in the share capital of the Company for the purpose of redemption of 1,50,00,000 (One Crore Fifty Lakhs) Redeemable Non-convertible Non-Cumulative Preference Shares of Rs 10/- each, fully paid-up, issued earlier by the Company to RCL, subject to necessary provisions & approvals.