Fixes Record Date for Consolidation of Shares & Reduction of Capital

Arora Fibres Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 06, 2011, has decided to fix the Record Date as January 17, 2011 for the purpose of reduction & consolidation of capital as per BIFR order.

As per the said order the existing paid up Share Capital of the Company will be reduced by 90% and after reduction ten equity shares of Re. 1/- each fully paid up shall be consolidated into one equity share of Rs. 10/- each fully paid up. Thus a share holder holding 100 shares will be entitled post reduction and consolidation for 10 equity shares of Rs. 10/- each of the Company. In case of fractional entitlement the fractions will be consolidated and shares will be allotted in the name of the director. At the appropriate time these shares will be sold in the market and the proceeds will be distributed to the fractional holders in proportion to their holding.

The Scheme also provide for induction of Rs. 195 Lacs by promoters as unsecured loan and the same will be converted into equity share capital @Rs. 10/- per share. The scheme further provides that the promoters who have already invested an amount of Rs. 663.66 lacs in the form of unsecured loan in the Company will be allotted Rs. 660 lacs worth of shares by conversion of unsecured loan of that amount into equity share capital @Rs. 10/- per share.

The promoters will induct Rs. 195.00 Lacs on or before January 17, 2011 and shares to be allotted to the promoters as per the scheme in the next board meeting.