EGM on Jun 29, 2010

• Security Code: 517421
• Company: BUTTERFLY

Gandhimathi Appliances Ltd has informed BSE that the Extra Ordinary General Meeting (EGM) of the members of the Company will be held on June 29, 2010, for the following special resolutions:

1. To alter the existing sub-clause (7) under clause III (B), being the objects incidental or ancillary to the attainment of the main objects, by deleting the same and substituted the following new sub-clause 7) :

"To purchase, acquire, hold and dispose of or otherwise deal and invest in any shares, debentures and other securities in or any company or companies’ real estate, properties either out of its own funds or out of funds that the company might borrow by issue of debenture or from bankers or otherwise howsoever in any other manner whatsoever."

2. To provide loans of Rs. 15 crores and Rs. 6.50 crores respectively to its associate companies, M/s. Butterfly Marketing Pvt. Ltd., and Gangadharam Appliances Ltd., to facilitate the eventual merger of Gangadharam Appliances Ltd with the Company as approved in principle by the Hon'ble Board for Industrial and Financial Reconstruction (BIFR) vide its order dated July 15, 2009 for which a Modified Draft Rehabilitation cum Merger Scheme has been submitted by Gangadharam Appliances Ltd to BIFR, notwithstanding that the aggregate loan amount of Rs. 21.50 crores shall be in excess of the limits prescribed under section 372A of the Companies Act, 1956 i.e., exceeding sixty percent of the Company’s paid- up share capital and free reserves, or hundred percent of its free reserves, whichever is more.

Authority to the Board of Directors of the Company to borrow the said sum of Rs. 21.50 crores from M/s. Dewan Housing Finance Corporation Ltd, Mumbai.