The Supreme Court's decision to temporarily ban mining in Bellary district of Karnataka has affected the alloy steel production at Mukand Ltd.'s facility at Hospet that is dependent on iron ore. The Hospet facility manufactures steel using the mini blast furnace route where iron ore is the major input. The Company proposes to buy iron ore from other districts in Karnataka and other states.

Mukand Ltd. also produces steel at its facility in Kalwe, Thane using the electric arc furnace route with steel scrap as the major input and thus will not be affected by the scarcity in the availablity of iron ore. This facility is currently used for producing stainless steel but can also produce alloy steel when required. The above measures will take care of the short fall to a major extent.

This matter is coming up for review in the Supreme Court on Friday, August 5, 2011.

Anna Abraham

Chief, Corporate Communication

Mukand Ltd.

Tel 91 22 21277608