The Board of Directors of the Company have decided to set-up two Plants to manufacture Fibre Cement Sheets and Accessories at an estimated cost of Rs.30 Crores each and to set-up a Plant to manufacture Autoclaved Aerated Concrete Blocks at an estimated cost of Rs. 40 Crores. Total investment of these 3 plants will be approximately Rs. 100 Crores. The Board of Directors have recomended dividend @ Rs.5.00 per equity share of Rs.10/- each ( i.e. 50% ) for the financial year ending 31st March , 2006 at the Annual General Meeting of the Company. Pursuant to the Orders of Hon’ble High Court of judicature, Andhra Pradesh at Hyderabad and Hon’ble High Court of Kerala at Earnakulam Malabar Building Products Limited (MBPL) has been merged with Hyderabad Industries Limited(HIL) w.e.f.1-4-2005. Since, MBPL and HIL are engaged in similar lines of business, the synergy from the combined resources of HIL and MBPL would lead to more economic and efficient management, control, running and development of market potential, optimum growth and development of both the companies in asbestos cement sheet business. Pursuant to the above scheme of amalgamation shareholders of MBPL are entitled to receive shares in the HIL in the ratio of 29(Twenty Nine) fully paid-up equity shares of Rs.10/- each of HIL for every 100 (One hundred) fully paid-up equity shares of Rs.10/- each of MBPL.