Indo Asian Fusegear Ltd: Outcome of Board Meeting

Indo Asian Fusegear Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 04, 2011, inter alia, has considered the following

1. The Board members were appraised of the Annual Business Plan of all the 3 Business Divisions i.e. Lighting, Wire & Cables and Meters. Generally, the Board members were satisfied with the initiatives being planned to make the existing business grow quickly and further gave suggestions to continue involvement of experts who would keep on assisting in the process of fine tuning the plan for the next 3 years and for the financial year 2011-12.

2. The Board Members were explained in detail the investments made by the company so that the surplus cash can generate maximum possible interest without compromising on the security and the safety of the investments.

3. The findings and recommendations of the experts who were commissioned as per the direction of the Board in the meeting held on February 26, 2011 was shared with the Board Members.

The findings recommended that the business of Power Generation in the domain of Renewable Energy held good promise and should be aggressively perused.

They also recommended at the current business portfolios of the company are distinct as two independent segments. Whereas, Wire & Cables and Lightings etc. operate through a vast retail marketing network, the Metering business on the other hand, conducts business with fewer but major customers such as utilities and very large private customers such us Builders, housing societies etc.

Each Business requires a distinctly different management and strategic approach for faster growth.

On further analysis, the Board recommended that in the best interest of the organization and shareholders, it would be appropriate to evaluate the re-alignment of the business into two segments to be made effective in the current Financial Year (i.e. April 01, 2011).

After discussing the findings in detail, the Board appointed a Special Committee, consisting of following Directors:

Mr. P. K. Ranade
Mr. Vinay Mahendru
Dr. Sai. Ramachandran
Mr. R C Bansal

to seek advice from experts in respective areas of specialisation such as Technical, Commercial and Legal etc. and present a comprehensive plan for growth of business for Board's approval.

The Board further emphasized that the Special Committee should take into consideration the vast liquid resources and other assets of the Company to be put to optimum use for the growth, expansion and diversification as mentioned above.