Modern Dairies Ltd: Outcome of Board Meeting

Modern Dairies Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 20, 2011, inter alia, took the following decisions, with immediate effect:

1. Mr. Amarjit Goyal, Director, resigned from the board and the same was accepted.

2. Mrs. Alka Goyal, Director, resigned from the board and the same was accepted.

3. Dr. P. K. Jain was appointed as Whole Time Director on the Board of Directors, designated as Director (Administration & Milk Procurement) for a period of three years.

4. Mr. A. K. Aggarwal, Director (Operations) of the Company has been re-designated as Executive Director.

5. Mr. Krishan Kumar Goyal, Chairman & Mg. Director of the Company submitted his resignation from the Board as Director. The Board of Directors accepted his resignation.

6. Prof. Satish Kapoor was unanimously elected as new Chairman of the Board of Directors of the Company.

7. The Board of Directors appointed Mr. Krishan Kumar Goyal as the Chairman Emeritus of the Company in recognition of his invaluable contribution to the Company's affairs over the last two decades and the progress and success made by the Company during his tenure as a member on its Board of Directors.

- In his capacity as 'Chairman Emeritus' of Modern Dairies Limited, Mr. Goyal will act as a strategic advisor to the Company's Board and will continue to be a part of the Company's board meetings.

8. Since as on March 31, 2011, the Net Worth of the Company has become negative, the Board of Directors decided to make reference to Board for Industrial & Financial Reconstruction (BIFR) under Section 15 of Sick Industrial Companies Act (SICA).