Bombay Swadeshi Members Accord Sub-Division Of Existing Equity Shares

Bombay Swadeshi Stores Ltd has informed that the members at the Extra-Ordinary General Meeting (EGM) of the Company held on December 16, 2006, inter alia, have accorded to the following:

1. Sub-division of the existing equity shares of Rs 10/- each into equity shares of Rs 2/- each by sub dividing 1 equity Share of Rs 10/- (Old Shares) into 5 equity shares of Rs 2/- each, (New Shares).

2. A sum not exceeding Rs 21,00,000/- out of the amount standing to the credit of the Share Premium Account and the Profit and Loss Account, as per the Audited Accounts for the year ended March 31, 2006, as approved at the One Hundredth Annual General Meeting of the Company be and is hereby authorised to be capitalised and set free for distribution amongst the shareholders whose names appear on the Register of Members of the Company on such date, the Record Date, as may be decided by the Board, towards payment in full of upto 10,50,000 equity shares of the Company of the face value of Rs 2/- each out of the unissued equity share capital, forming part of the Authorised Capital of the Company, Bonus Shares, on the following terms and conditions, subject to necessary provisions and approvals.