Outcome of board meeting of Diamond Power Infrastructure

Held on 21 July 2016

Diamond Power Infrastructure announced that the Board of Directors of the Company at its meeting held on 21 July 2016, inter alia, has discussed and approved/recommended following items:

1. Approval of SDR proposal initiated by the Banks. The Board of Directors, approved the invocation of SDR by Lenders in the Joint Lenders meet held on 29 June 2016. The Lenders will be allocated shares which aggregate to a minimum of 51% of the companies paid up capital. The Board of Directors recommended to have an enabling resolution to the shareholders in the ensuring 24th AGM for empowering the board of directors with suitable power to execute the transaction.

2. Approved, subject to the approval of the Shareholders in their general meeting, increase in the authorized capital of the Company from Rs. 80,00,00,000 (Rupees Eighty Crores Only) divided into 7,58,58,500 (Seven Crores Fifty Eight Lacs Fifty Eight Thousand Five Hundred Only) Equity Shares of Rs.10/- (Rupees Ten) each and 41,41,500 (Forty One Lacs Forty One Thousand Five Hundred Only) Preference Shares of Rs. 10/- (Rupees Ten) Each to Rs. 2,00,00,00,000 (Rupees Two Hundred Crores Only) divided into 19,58,58,500 (Nineteen Crores Fifty Eight Lacs Fifty Eight Thousand Five Hundred Only) Equity Shares of Rs.10/- (Rupees Ten) each and 41,41,500 (Forty One Lacs Forty One Thousand Five Hundred Only) Preference Shares of Rs. 10/- (Rupees Ten) Each ranking pari passu in all respect with the existing Shares.

3. Reconstituted Audit Committee of the Company.

Future Guidance for the Shareholders of the company regarding investor Induction on the company.

a) The Company has identified Jiangsu Longzhe Trade & Technology Company as an Investors and given a Proposal to the lenders on April 23, 2016 for induction of new investors and re-alignment of debt.

b) The Companies lenders have invoked SDR, with a view to convert a substantial portion of the debt into equity, with an objective to moving the Company to have a sustainable debt and also compensate the banks present sacrifices to future gains in equity.

c) The lender has appointed Ernst and Young to carry out a Transparent and open process of Investors induction mandate of which is presently under execution by them & is expected to be concluded at the earliest possible time.

d) Upon Conclusion of the process & approval of the lenders the best offer received by them, will be selected for sale of at least 26% Shares, the incoming lender will be required to buy another 25% into the company directly.

e) Pursuant to Purchase of 26% from the lenders the incoming investors will be making an open offer, to the Shareholders of the company to comply with the regulatory guidelines as mandated by SEBI.

The offer received from Jiangsu Longzhe Trade & Development Company, Nanjig, PR China is considered at the Base Minimum while carrying out the above process by Lenders through E & Y, any better then it will be considered.

The Company presently estimates to complete the entire process in 90-100 days.

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