*inter      alia*

|   | 1. | The                Borrower’s application dated n/a and subsequent correspondence                with the Bank (hereinafter collectively referred to as “the Borrower’s                proposal”) shall be deemed to constitute the basis of this Agreement and                of the credit facilities to be granted by the Bank hereinafter and                the                Borrower hereby warrants the correctness of each and every statement                and                particulars therein contained and undertakes to carry out the proposal                therein set forth. |
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|   | 2. | The                Borrower declares and confirms that the aforesaid credit facilities                agreed                to be granted to the Borrower shall be governed by the terms and                conditions as set out in the sanction/arrangement letter                No. 0BH/MCSHR/07-08/462 dt. 22.02.08 and OBH/MCSHR/08-09/96 dt.                11.06.2008 as also herein contained, as well as those embodied in                the                relative security documents. |
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|   | 3. | The                Borrower undertakes to notify in writing to the Bank of any circumstances                affecting the correctness of any of the particulars set forth in                the                Borrower’s proposal immediately on the happening or occurrence of any such                circumstance. |
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|   | 4. | The                Borrower declares affirms confirms and covenants                that: |
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|   | a. | The                execution on behalf of the Borrower of this Agreement has been and                the                execution on behalf of the Borrower of the security documents will                be                validly authorized and the obligations expressed as being assumed                by the                Borrower hereinunder and under the security documents by the Borrower                constitute and will constitute valid legal and binding obligations                of the                Borrower enforceable against the Borrower in accordance with their                terms; |
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|   | b. | Neither                the execution and delivery hereof and of the security documents by                the                Borrower nor the performance or observance of any of obligations                of the                Borrower hereunder or thereunder                shall: |
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|   | i. | Conflict                with or result in any breach of laws, statute rule, order, trust,                agreement or other instrument, agreement, obligation or duty by which                the                Borrower is bound; or |
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|   | ii. | Cause                any limitation on any of the powers whatsoever of the Borrower however                imposed, on the right or ability of the directors of the Borrower                where                the Borrower is a company to exercise such powers to be                exceeded; |
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|   | c. | The                Borrower is not in default under any law, rule, regulation order,                mortgage, trust, instrument, agreement or other instrument, arrangement,                obligation or duty by the Borrower is                bound; |
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|   | d. | The                copies, certified by the Borrower’s Secretary, of the Certificate of                Incorporation and the Memorandum and Articles of Association of the                Borrower are true and effective and the Borrower shall not during                the                currency of this Agreement cause any alteration to be made in any                of them                without the prior notification to and written consent of the                Bank; |
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|   | e. | The                resolution passed by the Borrower in general meeting on n/a                consenting under Section 293(id) of the Companies Act, 1956 to the                Board                of Directors borrowing moneys in excess of the aggregate of the paid                up                capital of the Borrower and its free reserves, a certified copy of                the                minutes of which has been delivered by the Borrower to the Bank is                and,                during the currency of this Agreement, shall remain adequate and                effective                to enable the Bank to grant and the Borrower to receive the credit                facilities aforesaid; |
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|   | f. | The                audited profit and loss account of the Borrower for the year                ended n/a and the audited balance sheet of the Borrower as of                that date give a true and fair view of the results of the operations                of                the Borrower for that period and the financial position of the Borrower                as                of that date and that there has been no material change adverse to                the                business, assets, conditions or operations of the Borrower since                that                date; |
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|   | g. | No                litigation or administrative or arbitration proceedings of or before                any                court governmental authority or arbitrator is presently taking place                pending or threatened against the Borrower or against any of the                assets of                the B; |
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|   | h. | All                necessary resolutions, consents, licenses, approvals and authorizations                of                the Government of India and any political subdivision thereof and                of any                governmental ministry, authority, bureau or agency and of any other                person                or entity required in connection with execution, delivery, performance,                validity and enforceability of this A and/or the establishment and                continuance of the business activity of the Borrower and the transactions                relating thereto have been duly obtained and are in full force and                effect                and in respect of all payments to be made by the Borrower to the                Bank                hereunder in foreign currencies are exempt and exonerated from Indian                withholding tax and any other taxes assessed or imposed by any Government                or taxing authority thereof; |
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|   | i. | The                approval of the Reserve Bank of India in respect of credit facilities                granted/to be granted by the Bank in foreign currencies has been                duly                obtained and a certified copy hereof has been delivered to the                Bank; |
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|   | j. | To                take or cause to be taken in respect of credit facilities and repayments                thereof in foreign currencies all action which may be or become necessary                or appropriate in order to ensure the immediate availability of such                foreign currencies for all repayments and discharge of the obligations                of                the Borrower hereunder; |
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|   | k. | In                the event of default by the Borrower, the bank                may: |
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|   | i. | Apply                and/or appropriate and/or set off any credit balance standing upon                any                account of the Borrower with any branch of the Bank in India or abroad                and                in whatever currency first in or towards satisfaction of any sum                (whether                of principal, interest or otherwise) due in the Bank from the Borrower                hereunder and; |
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|   | ii. | In                the name of the Borrower as the attorney of the Borrower to do all                such                acts and execute all such documents as the Bank may consider necessary                or                expedient in this regard: |
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|   | l. | There                exists no mortgage, charge, hypothecation pledge, lien, encumbrance                or                other security interest whatsoever over the whole or any part of                the                undertaking or assets, present or future, including uncalled capital                of                the Borrower except the following:                None |
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|   | 5. | The                Bank may at its sole and absolute discretion grant to the Borrower                all or                some or any of the aforesaid credit facilities either in Indian or                foreign                currencies by way of overdrafts, demand loans, loans, cash credits                (by way                of pledge lock and key type, factory type or mundy type or by way                of                hypothecation or in any other form including working capital term                loan),                terms loans (including funding of interest or in any other form granted                as                part of rehabilitation packages), pre-shipment and post-shipment                credits,                opening of letters of credit, issuing of guarantees including deferred                payment guarantees and indemnities, negotiation and discounting of                demand                and/or usance bills and cheques inland as well as foreign and such                other                facilities as may be agreed upon, from time to time, for sums not                exceeding at any one time in the aggregate the sum of Rs. 2500 Lacs                (Rupees Two Thousand Five Hundred Lacs only) to be made available                at SBI,                Borrower, Hydrabad or at any one or more branches of the Bank or                at any                one or more branches of any one or more Associate Banks of the Bank                in                India and/or abroad. |
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|   | 6. | The                Bank shall not be required to extend or continue any of the aforesaid                credit facilities granted or to be granted to the Borrower otherwise                than                at the Bank’s sole and absolute discretion and in no circumstances to an                amount at any one time exceeding in the aggregate with the interest                thereon and other costs, if any, such limit as the Bank may, from                time to                time, decide in respect of each facility or in the                aggregate. |
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|   | 7. | As                security for payment and discharge by the Borrower to the Bank of                the said                sum of Rs. 2500 lacs and interest and costs, charges, expenses and                other                monies due and payable by the Borrower to the Bank under or in respect                of                the aforesaid credit facilities or any of them the Borrower shall,                as may                be required, create in favour of the                Bank: |
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|   | a. | A                mortgage in a form satisfactory to the Bank of all the Borrower’s                immovable properties both present and future;                and |
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|   | b. | A                first charge by way of hypothecation and/or pledge of the Borrower’s                entire goods, movables and other assets present and future including                documents of title to the goods and other assets such as book debts,                outstanding moneys, receivables including receivables by way of cash,                assistance and /or cash incentives under the cash incentive scheme                or any                other scheme, claims, including claims by way of refund of customs/excise                duties under the duty drawback credit scheme or any other scheme,                bills,                invoices, documents, contracts, insurance policies, guarantees,                engagements, securities, investments, and rights uncalled capital                and all                machinery present and future of such form satisfactory to the                bank. |
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|   | 8. | The                Borrower shall if required, procure irrevocable and unconditional                guarantees from its Directors and/or others for the payment and discharge                by the Borrower to the Bank of the sum of Rs. and interest, all costs,                charges and expenses and other monies due and payable by the Borrower                to                the Bank under or in respect of the aforesaid credit facilities in                the                form prescribed by the Bank. |
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|   | 9. | The                Bank shall have the absolute right to decide whether or not it will                accept                as security for the purpose of any/some/all of the aforesaid credit                facilities any goods, book-debts, movables and other assets offered                from                time to time to the Bank by the Borrower. The Bank shall be at liberty                at                its sole discretion at any time without previous notice and without                previous notice and without assigning any reason whatsoever to cease                to                accept the security from the Borrower and/or to cease making advances                thereagainst. |
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|   | 10. | All                the goods, book-debts, movables and other assets hypothecated and/or                pledged shall be valued at the proper rates whether fixed by the                Bank or                not and the Borrower shall not overvalue the same. Indigenous raw                materials/packing materials/consumable stores/spares shall be valued                at                current market rates or invoice rates or Government controlled rates                whichever are the lowest. Imported raw materials shall be valued                at landed                cost (i.e. invoice plus customs duty but exclusive of sales-tax and                demurrage) or market price whichever is lower. Semi-finished goods                shall                be valued at cost or market price or Government controlled rates                or                selling price whichever are the lowest. The Bank shall be at liberty                to                have any goods book-debts movables and other assets hypothecated                and/or                pledged as aforesaid valued by an appraiser appointed by the Bank                and the                Borrower agrees and confirms to give all the required                assistance/co-operation to such appraiser for such valuation and                the said                valuation shall be binding on the Borrower and the fees and expenses                of                such appraisal shall be borne by the Borrower and may be debited                to any                account(s) of the Borrower. |
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|   | 11. | The                Borrower declares and assures that all immovable properties to be                mortgaged and all goods book-debts, movables and other assets to                be                hypothecated and/or pledged to the Bank are the absolute properties                of the                Borrower at the sole disposal of the Borrower and free from any prior                charge, lien or encumbrance except such charge, lien or encumbrance                as                have been notified to the Bank and accepted by it as having priority                over                its charge and that all the future immovable properties and goods,                book-debts, movables and other assets to be given as security to                the Bank                shall be likewise the unencumbered absolute and disposable property                of the                Borrower and the Borrower shall not without the Bank’s prior written                permission lease or sell or exchange or create any mortgage, charge,                lien                or encumbrance of any kind upon or over the same or on its undertaking                and                assets including uncalled share capital or any part thereof) except                to the                Bank nor suffer any such mortgage, charge, lien or encumbrance to                affect                the same or any part thereof nor do or allow anything that may prejudice                the security while the Borrower remains indebted or liable to the                Bank in                any manner. |
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|   | 12. | Subject                always to the Bank’s rights, powers and discretion under this Agreement,                any security documents or otherwise the Borrower may with the prior                written approval of the Bank and in due course of business sell from                time                to time the goods movables and other assets and receive the book-debts                which may be/have been hypothecated, pledged mortgaged or charged                to the                Bank provided the margin(s) of security required by the Bank are                always                fully maintained and on the terms of payment and delivery to the                Bank of                the proceeds thereof and on the express understanding that the security                created thereunder and all realizations, recoveries and insurance                proceeds                thereof and all rights and interest in respect thereof and all documents                therefore, shall always be kept distinguishable and held as the Bank’s                exclusive property specifically appropriated to the security created                thereunder to be dealt with only in accordance with the directions                of the                Bank. It is further agreed that the Borrower shall keep the machinery                charged to the Bank by way of hypothecation, pledge or otherwise                in good                condition and shall do or cause to be done all acts an things necessary                to                keep the said machinery in good condition, provided that the Bank                in its                absolute discretion without being bound to do so, spend such money                as may                be necessary to maintain its undisturbed possession of the said machinery                and to preserve the security and the moneys so spent shall on demand                be                paid by the Borrower to the Bank and until payment shall be debited                to the                accounts opened by the Bank in respect of the aforesaid credit facilities                and carry interest accordingly. It is, however, understood that the                Borrower shall not with out the written consent of the bank first                had and                obtained remove the plant and machinery attached to the premises,                if any,                mortgaged to the Bank and incase of such removal shall replace the                same by                machinery, plant and fixtures and things of equivalent nature and                value,                provided that in the event of the Bank agreeing in writing that any                machinery plant or things as aforesaid to removed was redundant or                became                worn out or absolute and need not be replaced the same may be sold                and the                sale proceeds applied towards the satisfaction o payment of the amount(s)                due to the Bank. |
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|   | 13. | Registers                of immovable properties and goods, book-debts, movables and other                assets                hypothecated/pledged/mortgaged or otherwise charged to the Bank shall                be                kept by the Borrower in respect o f each of the aforesaid credit                facilities and such registers shall contain all particulars of such                immovable properties and goods book-debts movables and other assets                hypothecated, pledged, mortgaged or otherwise charged and/or such                immovable properties and goods book-debt movables and other assets                as have                been released by the bank and withdraws by the Borrower. such Registers                shall at all times be open for inspection of the Bank and the Borrower                shall if so required by the Bank furnish to the bank daily or at                such                intervals as the Bank may direct from time to time a schedule or                copy of                all the entries which shall have been made to the said                Registers. |
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|   | 14. | Interest                shall be charged on the outstanding(s) in the accounts opened in                respect                of the aforesaid credit facilities at such rate(s) as may be determined                by                the Bank from time to time at the Bank’s sole discretion on the basis of                any internal credit rating accorded to the Borrower or otherwise                provided                also that the rate(s) shall be subject to changes in the State Bank                Advance rate and/or changes in interest rates prescribed by the Reserve                Bank of India from time to time. Where interest is charged by the                Bank at                a concessionary rate or rates because of the credit facilities being                granted by the Bank to the Borrower under the interest Subsidy Scheme                or                any other Scheme(s) formulated by the government and/or Reserve Bank                of                India and/or any authority from time to time, the Borrower agrees,                declares, confirms and affirms that in the event of the withdrawal,                modifications and/or variation of such scheme(s), the concessionary                rate                or rates of interest that stand withdrawn and the usual rate or rates                of                interest of the Bank applicable at the material time to such credit                facilities shall become effective and the Bank shall become entitled                to                charge the Borrower such rate or rates of interest and the Borrower                shall                pay to the Bank on demand the difference between such concessionary                rate                or rates and the usual rate or rates of interest of the Bank applicable                at                the material time to such credit facilities and such difference shall                become due and payable by the Borrower to the Bank from the date                the                withdrawal, modification and/or variation of such Scheme(s) becomes                effective. Interest shall be calculated respectively on the daily                balance                of such account(s) and be debited thereto on the last working day                of the                month or quarter according to the practice of the Bank. The Bank                shall                also be entitled to charge at its own discretion such enhanced rates                of                interest on the account(s) either on the entire outstanding or on                a                portion thereof as it may fix for any irregularity and for such period                as                the irregularity continues or for such time as the Bank deems it                necessary                regard being had to the nature of the irregularity and the charging                of                such enhanced rate of interest shall be without prejudice to the                Bank’s                other rights and remedies. |
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|   | 15. | In                respect of security created by way of hypothecation/pledge/mortgage                or                otherwise the Borrower shall at all times maintain a sufficient quantity                and market value of goods, book-debts, movables and other assets                and also                all immovable properties given as security, to provide the margins                of                security required by the Bank from time to time and will forthwith                whenever necessary provide further goods, the Borrower shall deposit                sufficient cash or other security as may be acceptable the Bank as                margin                money as stipulated by the Bank. The Bank shall be entitled to and                shall                at its discretion which shall be final and binding on the Borrower,                change                the margins and the Borrower shall be bound by it notwithstanding                any                margins earlier agreed to by the                Bank. |
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|   | 16. | the                Borrower expressly agrees and undertakes that all the aforesaid credit                facilities or any of them shall be utilized exclusively for the purposes                set forth in the Borrower’s proposal and for no other purpose and no                change shall be made therein without the written sanction of the                Bank. |
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|   | 17. | the                Borrower shall from time to time and at all times during the continuance                of the aforesaid credit facilities or any of them keep all properties,                goods, machineries and other assets specified and mentioned in the                Agreement or any other relative security documents in good working                condition and substantial state of repairs and shall pay all ground                rent,                rates, taxes and assessments presents as well as future payable in                respect                of the same immediately they shall become due and also pay all electricity                charges, municipal rates and all other charges and assessments, connected                with the business regularly and punctually and in case the Borrower                neglects to keep the properties, goods, machineries, and other assets                secured to the Bank or any part thereof in good and substantial repair                or                pay the electricity charges, ground rent, rates, taxes, charges and                assessments as aforesaid, it shall be lawful for, but not obligatory                upon,                the Bank to have the said securities or any part thereof repaired                and to                pay any such electricity charges, ground rent, rates, taxes, charges                and                assessments, All moneys, premia, costs, charges of such repairs,                the                payment of the electricity charges, ground rent, rates, taxes, charges                and                assessments as aforesaid shall be a charge upon such securities jointly                with all principal moneys and interest as if they formed a part                thereof. |
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|   | 18. | The                Borrower shall at all times maintain sufficient financial interest                in the                business and shall if so considered necessary by the Bank bring additional                funds or assets by ways of capital deposits or otherwise. The Borrower                shall not withdraw except with the bank’s prior permission in writing or                divert or misuse the funds and assets invested in or brought into                the                business by the Borrower as capital, deposits or                otherwise. |
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|   | 19. | The                Borrower shall carry on the business efficiently, properly and profitably                and such business shall be confined to such manufacturing and/or                trading                activity as have been notified to the Bank and for which the Bank                has                sanctioned or agreed to sanction the aforesaid credit facilities                and shall                keep all the licenses, leases, contracts, engagements, essential                for                carrying on the manufacturing and/or trading activity renewed from                time to                time and shall not allow any interruption or disturbance to happen                so as                to hamper/hinder/adversely affect the business of the Borrower. the                Borrower shall maintain proper books of accounts and such other registers,                books, documents, relating to the business as may be statutorily                required                or as may be required by the bank or as may be necessary and/or generally                kept in the business of the kind carried on by the Borrower and shall                get                the accounts books duly audited and furnish to the Bank a copy of                the                audited statements and the auditor’s report. The Borrower shall, if so                required by the Bank, allow the Bank, its officers, agents and nominees                and/or qualified auditors and/or technical experts and/or management                consultants as may be appointed by the Bank to inspect ... such books of                accounts, registers, books and documents and also furnish to the                Bank at                such intervals as the Bank may direct from time to time a schedule                or copy                of all the entries which shall have been made in such                books. |
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|   | 20. | The                Borrower shall submit to the Bank periodically as required by the                Bank                copies of the Balance Sheet and Profit and Loss Account duly audited                and                stock statements in the formats as may be prescribed by the Bank                from time                to time indicating correctly the quantity and value of the stocks                and also                statements of receivables indicating the names of the debtors, amounts                of                the debts and the periods for which they are outstanding together                with a                certificate that the quantities and amounts stated are correct and                that                all stocks are fully covered by insurance unless such insurance is                waived                by the Bank and will also furnish and verify all statements, reports,                returns, certificates and the information and will also execute all                documents and do all acts and things which the Bank may require to                give                effect to any of the terms and conditions set out herein or in the                security documents or any of them that may be executed and the Borrower                authorizes the Bank and each of its agents and nominees as Attorney                for                and in the name of the Borrower to do whatever the Borrower may be                required to do under this                Agreement. |
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|   | 21. | The                Borrower shall carry on the entire banking transactions of the business                including merchant banking business through the Bank or any of its                Associate Banks wherever the Bank does not have a branch established.                In                particular, the Borrower’s entire foreign exchange business inland bill                business and deposits if any shall be placed with the Bank or any                of its                Associate Banks where the Bank does not have a branch established                thereat.                The Borrower may, however, with the prior permission in writing of                the                Bank in this regard and to the extent allowed and on such other terms                and                conditions as may be stipulated deal with any other                Bank(s). |
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|   | 22. | Where                goods, movables and other assets are pledged to the Bank, the Bank                may in                its own discretion and at the Borrower’s specific request and without                detriment to the pledge release the goods movables and other assets                pledged to the Bank from its possession to the Borrower on trust                under a                factory/mundy type pledge or other basis and/or for any purpose connected                with the Borrower’s trade business or industry and in consideration of the                Bank so handing over to the Borrower from time to time any goods,                movables                and other assets lying at the godown, factory or other place approved                by                the bank under pledge to the Bank the Borrower shall hold the goods,                movables and other assets as trustees and agents for an on behalf                of the                Bank. The Borrower undertakes that such goods, movables and other                assets                shall in all respects be treated by the Borrower in the books of                the                Borrower as belonging to and held on behalf of the                Bank. |
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|   | 23. | Where                goods movables or other assets pledged to the Bank are released to                the                Borrower on trust for any purpose connected with Borrower’s trade,                business, industry or otherwise and are put in transit by the Borrower                for                any purpose including for sale thereof the Borrower shall hand over                to the                Bank the relative railway or other transport receipts, invoices and                all                documents and shall deliver back to the Bank goods, movables and                other                assets when the purpose for which they are released on trust is                accomplished or to pay to the Bank the sale proceeds of or the proceeds                of                the bills relating to the said goods, movables or other assets. The                Borrower undertakes that the proceeds of sale of such goods, movables                or                other assets shall in ... be treated by the Borrower in the books of                Borrower as belonging to and held on behalf of the                Bank. |
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|   | 24. | The                Bank may at its own discretion and at the specific request of the                Borrower                grant the facility of cash credit accommodation to the Borrower by                fixing                limits in respect of goods, book debts, movables and other assets                hypothecated or against the security of pledge of goods, movables                and                other assets for the purpose of either (i) retiring documentary bills                drawn on the Borrower covering purchase of goods required for the                Borrower’s manufacturing activities consigned from various place, or (ii)                making remittances of the cost price of the materials direct to the                suppliers by the Bank subject, of course, to the advance being limited                in                each case to such percent of the said bills or the cost price of                the                materials respectively as may be decided by the Bank from time to                time and                where the Bank so grants the facility the Borrower hereby acknowledges                in                consideration thereof that Bank shall have a charge by way of pledge                over                the document of title to goods, movables and other assets received                with                the bills or otherwise which will be in the custody of the Bank or                which                may come into the Bank’s custody and for this purpose the documents of                title to goods movables and other assets shall be deemed to have                been                delivered by the Borrower to the Bank for creating pledge of goods,                movables and other assets covered by the documents and in further                consideration of the delivery by the Bank o the said documents of                title to                goods, movables and other assets to the Borrower or to the clearing                agents                of the Borrower under the Borrower’s instructions and on behalf of the                Borrower while the Bank’s charge hereon and the Borrower’s own                indebtedness or obligation in respect of the said advances or other                valuable consideration are subsisting, the Borrower undertakes to                clear                land store and hold the goods movables and other assets received                under the                said documents for and on behalf of the Bank as trustees and agents                and if                so required by the Bank to deliver possession of the goods, movables                and                other assets to the Bank to be held by the Bank as pledgee of the                said                goods, movables and other                assets. |
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|   | 25. | For                the purpose of clauses 22 and 23 the Borrower undertakes and declares                that: |
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|   | a. | To                handover and redeliver goods etc. the Borrower shall at any time                hand over                or redeliver or cause to be handed over or redelivered to the Bank                forthwith on demand all goods, movables and other assets and documents                of                title thereto and goods movables and other assets covered by such                documents including any policies of insurance pertaining thereto                and                authorize the Bank or any person or persons authorised by the Bank                in                writing in that behalf to enter the Borrower’s godown premises or any                other place where such goods, movables and other assets and document                of                title thereto are lying kept or stored and to take possession of                the said                goods, movables and other assets and documents of title thereto                wheresoever situated at any time without giving to the Borrower any                notice                of the Bank’s intention to do so and the Borrower hereby desires and                requires all persons in whose custody the said goods movables and                other                assets are for the time being to yield possession thereof according                to the                Bank. |
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|   | b. | The                Borrower shall not deal with the goods movables and other assets                and                documents of title thereto or the goods movables and other assets                covered                by the documents except under and in accordance with the Bank’s written                instructions. |
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|   | c. | The                Borrower shall whether or not in possession of the goods movables                and                other assets or document of title thereto are delivered to the Bank                repay                the outstandings in the said accounts within such number of days                of its                being utilized as may be specified by the Bank from time to                time. |
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|   | d. | The                Borrower shall indemnify the Bank (i) against all losses, costs,                damages                expenses whatsoever that the Bank may incur or sustain by reason                of the                Borrower’s act, default or omission of the Borrower’s servants or                employees or other persons acting on behalf of the Borrower in respect                of                goods movables and other assets pledged to the Bank and released                to the                Borrower on trust; (ii) against all losses, costs, damages, expense                or                consequences whatsoever that the Bank may incur or sustain as a result                of                the Banks complying with the Borrower’s instructions to deliver to the                Borrower or to the Borrower’s clearing agents the documents covering the                goods movables and other assets (a) whether or not said documents                are in                order; (b) notwithstanding any discrepancies that may be present                in                documents; and (c notwithstanding any discrepancy between the price/value,                quantity and quality of the goods movables and other assets covered                by the                documents and price, quantity and quality specified in the contract;                and                (iii) against all consequences losses and damages that may arise                a s a                result of the Banks complying with the Borrower’s requests to effect                advance payments form time to time to the suppliers (a) whether or                not the                suppliers consign the goods, movables and other assets; (b) whether                or not                the document in respect thereof are received by the Bank; and (c)                notwithstanding any discrepancy between the quantity or quality of                the                goods, movables and other assets received from the suppliers and                that of                the contracted quantity and                quality. |
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|   | 26. | The                Borrower shall (if so required by the Bank) display the Bank’s name on the                godown factory and other places approved by the Bank where such goods,                movables and other assets hypothecated and/or pledged to the Bank                and                against which limits for purposes of drawings have been fixed under                and                some/all of the aforesaid credit facilities have been stored indicating                that such goods, movables and other assets are hypothecated and/or                pledged                to the Bank. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 27. | In                respect of credit facilities granted to the Borrower against pledge                of                goods, movables and other assets all such goods, movables and other                assets                shall be placed in the Bank’s possession under its control and in such                manner that such possession and control may be apparent and indisputable.                In pursuance hereof, inter alia, the godown, factory and other places                approved by the Bank in this respect where the goods, movables and                other                assets that are pledged have been stored shall bear the banks name                boards                indicating that the goods, movables and other assets lying therein                are                pledged to the Bank. Where the goods, movables or other assets which                are                pledged with the Bank are released to the Borrower on trust under                a                factory, mundy type pledge, or other basis for the limited purpose                of                facilitating the Borrower carrying on the manufacturing or other                activity,                the Borrower undertakes that the Bank’s padlocks will be use don the                godown factory or other place where they are stored and such godown,                factory or other place will be locked by the Borrower when not in                use and                the keys thereof shall be returned to the Bank on demand and that                the                Bank’s name boards shall be displayed on such factory, mundy or other                place where such manufacturing or other activity is carried on indicating                that the goods, movables and other assets are pledged to the Bank.                The                Borrower further agrees that all sea, rail and other transport freight,                demurrages, customs duties, terminal taxes, cartage godown rents                and all                other charges and expenses paid or incurred by the Bank in obtaining                actual physical possession of and in clearing, storing and forwarding                the                said goods movables and other assets shall be debitable to the accounts                of                the Borrower and form a part of the aggregate amount                secured. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 28. | All                the machineries of the Borrower hypothecated, pledged, mortgaged                or                otherwise charged to the Bank shall be treated as movable properties                and                not as immovable properties and shall bear the nameplate of the Bank                indicating that the said machineries are hypothecated, pledged, mortgaged                or otherwise charged, as the case may be, to the Bank. The Borrower                shall                also exhibit conspicuously in the main hall of the factory a list                showing                the items of machineries hypothecated, pledged, mortgaged or otherwise                charged to the Bank. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 29. | In                respect of goods, movables and other assets stored and held in godowns                owned or hired by or let to the Borrower, the Borrower shall provide                the                Bank and its agents and nominees with an unimpaired access to the                godowns                at all times and where the godowns are hired by or let to the Borrower                the                Borrower shall furnish to the Bank a letter from the landlord/owner                consenting to continue such unimpaired access to the godown to the                Bank                and its agents and nominees and also declaring that notwithstanding                any                claim for any unpaid rent the landlord/owner acknowledge the prior                claim                of the Bank on all the goods movables and other assets stored and                held                therein and hypothecated, pledged, mortgaged or otherwise charged                to the                Bank and that the Bank its agents and nominees shall have the right                to                remove the goods, movables and other assets so stored and held in                the                godowns whenever desired by the                Bank. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 30. | In                respect of goods, book-debts, movable and other assets hypothecated,                pledged, mortgaged or otherwise charged to the Bank or which are                released                to the Borrower on trust under a factory/mundy type pledged or other                assets, the Banks agents ad nominees shall be entitled at all times                without notice to the Borrower but at the Borrower’s risk and expenses and                if so required as Attorney for and in the name of the Borrower to                enter                any place where the said goods, book-debts, movables and other assets                may                be and inspect value insure, superintend dispose and/or take particulars                of all or any part of the said goods, book-debts, movables and other                assets and check any statements accounts, reports and information                and do                all such acts, deeds and things necessary to preserve and protect                the same                and the Borrower confirms, affirms and undertakes to give all                assistance/co-operation as may be necessary in this                regard. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31. | All                goods, book-debts, movables and other assets hypothecated pledged,                mortgaged or otherwise charged to the Bank as security for any of                the                aforesaid credit facilities and also all immovable properties given                as                security for all such facilities or any of them as may be required                by the                Bank shall be kept at the Borrower’s risk and expense in good condition                and fully insured against loss or damages as may be required by the                Bank                due to any reason whatsoever and damages as may be required by the                Bank                due to any reason whatsoever and particularly the machineries hypothecated                and/or pledged to the Bank against fire and/or such other risk(s)                as the                Bank may from time to time stipulate in the joint names of the Borrower                and the Bank with an insurance company approved by the bank and for                such                amount as the Bank may consider necessary and that the insurance                policies                shall be delivered to the bank when required by the Bank, to do so.                If the                Borrower fails to effect such insurance the bank may, but without                being                obliged to do so, insure the said goods, movables and other assets                and                immovable properties against fire and/or such risk(s) in such joint                names                and debit the premium and other charges to any account of the Borrower                opened or to be opened and in the event of the bank being at anytime                apprehensive that the safety of the goods, movables and other assets                and                machinery is likely to be endangered owing to riot and/or strike                (including fire arising therefrom) and/or floods, earthquakes, etc.                and/or                also resulting in the loss of production therefrom the Bank may at                its                discretion but without being bound to do so insure or require the                Borrower                to insure the same in such joint names against any damage arising                therefrom the cost of such extra insurance being payable by the Borrower                and be debited to any such account. If the Bank desires that the                gods,                movables and other assets shall be insured against theft the Borrower                shall provide the necessary cover therefore. The Borrower shall provide,                if the Bank so directs, a sufficient insurance cover against breakdown                of                such machineries and against loss and damage by fire, lightning and                flood                to any immovable properties of the BORROWER. the Borrower further                expressly agrees that the Bank shall be entitled to adjust, settle,                compromise or refer to arbitration any dispute arising under or in                connection with any insurance and such adjustment, settlement, compromise                and any award made on such arbitration shall be valid and binding                on the                Borrower and also to receive all moneys payable under any such insurance                or under any claim made thereunder and to give a valid receipt therefore,                and that the amount so received shall be credited to the Borrower’s                account and the Borrower shall not raise question that a larger sum                might                or ought to have been received or be entitled to dispute its liability                for                the balance remaining due on any account or accounts after such credit.                Provided that the Bank may at its sole, absolute and unqualified                discretion waive all or any of these                requirements. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 32. | The                Borrower shall not compound or release any of the book-debs not do                anything whereby the recovery of the same may be impeded, delayed                or                prevented, without the consent in writing of the Bank first had and                obtained. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33. | The                Borrower shall as soon as any call in respect of its shares has been                resolved upon by the Directors or as soon as it shall have been resolved                to issue any unissued share capital or to create any new shares                immediately give notice of such call to the Bank or give notice to                the                Bank of the intention of the Borrower to issue or create any such                share                capital as aforesaid and the proposed amount thereof. And shall not                until                the expiration of seven clear days from the time when such notice                shall                have been sent to the Bank issue any notice to the members of the                Borrower                in respect of payment of any call or issue or create any such existing                or                new shares respectively as aforesaid. And if the Bank shall so require                every notice, prospectus, application form or allotment letter sent                out by                the Borrower in pursuance of any such resolution shall direct the                members                or applicants for allotment of the shares of the Borrower to pay                the call                so made or the moneys payable in respect of the aid existing or new                shares                to the Bank or as it shall direct and if no such requisition be made                by                the Bank the members, applicants or allottees shall be directed to                pay any                call or other moneys into the Bank’s office (as may be informed or                notified) of the joint account of the Borrower and the Bank or in                such                manner as the Bank may direct and the bank shall be entitled to require                all such calls or moneys received by the Borrower to be applied either                wholly or partly in or towards the payment or satisfaction of the                principal sum, interest and other moneys due to the bank but in default                of                the bank requiring the said calls or moneys to be so applied as aforesaid                within one month of their being paid, the Borrower may without the                consent                of the Bank apply the whole or the balance thereof over and above                what                shall be required by the Bank to be otherwise applied to the general                purposes of the Borrower as it shall think fit provided also that                all                moneys hereunder to be received by the Borrower from its members                in                advance of calls upon the shares be held by the Borrower upon trust                for                the Bank and so as to form part of the security and shall be dealt                with in                the manner hereinbefore mentioned in the case of calls or other moneys                received by the Borrower. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 34. | The                Borrower shall not (a) allow any Receiver to be appointed of the                undertaking or of the properties, immovable and movable, of the Borrower                mortgaged, pledged and/or charged to the Bank or any part thereof                (b)                allow any distress or execution to be levied upon or against the                same or                any thereof and (c) make or attempt to make without the previous                consent                of the Bank in writing any alterations of its Memorandum or Articles                of                Association or in its capital                structure. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 35. | The                Borrower shall forthwith and from time to time as may be required                by the                Bank make such alterations or additions to its Memorandum or Articles                of                Association or in its capital structure as may be necessary to conform                to                this Agreement. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 36. | The                Borrower shall make long term arrangements for a steady and regular                supply                of raw materials as may be required for its                business. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 37. | During                the currency of these presents the shareholding of such of the                shareholders in the Borrower who are its Directors at present and                the                principal shareholders and promoters of the Borrower shall not be                varied                without the previous written consent of the Bank first                obtained. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 38. | During                the subsistence of the liability of the Borrower under or in respect                of                any of the aforesaid credit facilities, the Bank without prejudice                to its                rights referred to in this Agreement shall have a right to appoint                and/or                remove, from time to time, a Director or Directors on the Board of                Directors of the Borrower as nominee Director(s) to protect the interests                of the Bank, subject however that the director or Directors so appointed                by the Bank shall not be liable to retire by rotation and need not                possess                any share qualification prescribed by the Articles of association                of the                Borrower. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 39. | The                Borrower shall at all times confine the borrowings to the drawing                power                allotted within the limit of the particular facility, namely, the                value of                the security less than stipulated margin, and in no case shall exceed                such                limit. The Bank may, however, at the specific request of the Borrower                and                in its own discretion allow drawing beyond such drawing power for                such                time as may be considered necessary and shall at any time without                any                notice call upon the Borrower to repay such excess drawings. All                rights                and obligations of the Bank and the Borrower respectively hereunder                and                under any Arrangement Letter or other documents shall extend to such                excess drawings notwithstanding the specific limit stipulated. All                the                rights and securities created hereunder in favour of the Bank and                the                obligation of the Borrower thereunder will extend to cover the Borrower’s                liabilities to the Bank under any account whatsoever of the Borrower                with                the Bank notwithstanding that such account may not related to any                particular facility agreed to be granted by the Bank to the                Borrower. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 40. | At                any time or from time to time before repayment of the amount due                to the                Bank whenever the value of the security for the time being held by                the                Bank under the security documents or otherwise shall be in excess                of                amount due to the Bank, the Bank may at the request of the Borrower                and at                its discretion release to the Borrower such excess or security or                any part                of such excess security. Provided always that the Bank may refuse                to                release such excess security as aforesaid in its discretion if there                are                any other liabilities whatsoever of the Borrower to the Bank absolute                or                contingent which in the opinion of the Bank might not be adequately                secured. Nothing contained in this clause in particular and in this                Agreement or any security documents between the Bank and the Borrower                in                general shall be construed as excluding the general lien and/or the                right                of set-off the Bank for any balance due to the Bank on any account                or in                respect of any liability whatsoever over any security for the time                being                held by or remaining with the                Bank. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 41. | The                Bank shall not be under any liability whatsoever towards the Borrower                or                any other person for verification of the quantity and/or quality                of any                goods movables or other assets shown in the relevant invoices statements                or other documents notwithstanding hat it may have taken possession                of                such goods movables or other assets by way of hypothecation pledge                or                otherwise or for any loss or damage to the goods, movables and other                assets and other documents and given as security from whatever cause                or in                whatever manner arising whether such goods movables or other assets                shall                be in the possession of the Bank or not at the time of such loss                or damage                or the happening of the cause thereof. The Borrower doth and shall                at all                times indemnify and keep indemnified the Bank from and against all                actions, suits, proceedings, costs, charges, claims and demands whatsoever                that may at any time arise or be brought or made by any person against                the                Bank in respect of any acts, mattes and things lawfully done or caused                by                the Bank in connection with the said goods, movables and other assets                or                in pursuance of the rights and powers of the Bank under this a or                other                security documents. No responsibility will lie with the Bank in respect                of                the quantity, quality or condition or on whatever account on final                out-turn of the goods, movables and other assets in possession of                the Bank                under this a or under security documents between the Bank and the                Borrower                including goods, movables and other assets which may have come into                the                possession of the Bank by the Bank exercising any of its rights under                this                Agreement or any security documents or otherwise and/or in respect                of the                correctness, validity, sufficiency or genuineness of any of the documents                relating thereto. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 42. | The                Borrower shall not during the subsistence of the liability of the                Borrower                to the Bank under or in respect of any of the aforesaid credit facilities                without the written consent of the                Bank: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Change                or in any way alter the capital structure of the borrowing                concern; |
|--------|----|----------------------------------------------------------------------------------------------------------|

|   | b. | Effect                any scheme of amalgamation or                reconstitution; |
|--------|----|------------------------------------------------------------------------------------|

|   | c. | Implement                a new scheme of expansion or take up an allied line of business or                manufacture; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------|

|   | d. | Declare                a dividend or distributes profits after deduction of axes, except                where                the instalments of principal and interest payable to the Bank in                respect                of the aforesaid credit facilities are being paid regularly and there                are                no irregularities whatsoever in respect of any of the aforesaid credit                facilities. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | e. | Enlarge                the scope of the other manufacturing/trading activities, if any,                undertaken at the time of the application and notified to the Bank                as                such; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | Withdraw                or allow to be withdrawn any moneys brought in by the promoters and                directors or relatives and friends of the promoters or directors                of the                Bank; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g. | Invest                any funds by way of deposits, or loans or in share capital of any                other                concern (including subsidiaries) so long as any money is due to the                Bank;                the Borrower will, however, be free to deposit funds by way of security,                with third parties in the normal course of business or if required                for the                business; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h. | Borrow                or obtain credit facilities of any description from any other bank                or                credit agency or money-lenders or enter into any hire-purchase arrangement                during the subsistence of the liability of the Borrower to the                Bank. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 43. | In                respect of advances granted by the Bank to the Borrower by way of                purchase/negotiation/discounting of clean/documentary/demand/usuance                bills                of exchange drawn by the Borrower on his/it/their various customers                and                expressed in foreign currency or Indian rupees and whether under                letters                of credit or otherwise and/or in respect of said bills tendered for                collection the Borrower agrees and covenants with the Bank as                under: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | That                the bills shall bear, where necessary adequate stamp duty before                purchase/negotiations/discounting and shall be drawn by the Borrower                in                conformity with the proforma prescribed under the Reserve Bank of                India                New bill market Scheme, indicating on the face thereon the description                and                quantity of goods sold and the number and date of the carrier’s                receipt; |
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|   | b. | That                the bills shall be drawn with a usuance, ordinarily, of not exceeding                90                days; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------|

|   | c. | That                the bills pertaining to supplies made to Government departments and                quasi-Government bodies as well as statutory Corporations and government                Companies shall be drawn in conformity with the pro forma prescribed                under                the Reserve Bank of India Scheme. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | That                at the time of offering upcountry usance bills for discount the bills                shall be accompanied by railway receipts or motor transport receipts                of                approved transport companies together with the relative original                invoices                and that the documents will be delivered to the drawees only after                the                bills accepted; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | That                in the case of local sales, bills shall be accompanied by copies                of                invoices bearing acknowledgements of the purchasers in token of their                having received the goods and shall be offered for discount only                after                acceptance of bills by the drawees; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | That                upcountry or local bills will not be collected by the Borrower through                other banks; |
|--------|----|------------------------------------------------------------------------------------------------------------------------|

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|   | g. | That                the Borrower shall ensure that upcountry bills are accepted by the                drawees                on presentation and retired on due dates. In the event of the bills                remaining unaccepted on presentation or unpaid on due dates, the                Bank                shall be entitled to recover the amount of such bills along with                overdue                interest and other incidental charges by debit to the accounts of                the                Borrower. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h. | That                the Bank shall be at liberty not to accept cheques drawn on local                banks                from the drawees in payment of bills drawn on them unless such cheques                are                tendered at the Bank before clearing hours on due dates. In the event                of                cheques being received late after clearing hours on due dates, the                Bank                may treat the relative bills as unpaid and may debit the amounts                thereof                to the account of the Borrower on due                dates; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | That                the Borrower shall furnish to the Bank in advance a list of local                parties                on whom the Borrower intends to draw usance bills for prior approval                of                the Bank; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | j. | That                the Borrower shall abide by such terms and conditions as the Bank                may from                time to time stipulate; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | k. | That                unless otherwise specified the rates for discounting the bills will                be the                same rate which is applicable to advances granted to the Borrower                against                stocks; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | l. | That                the Bank shall be entitled to                chare: |
|--------|----|-------------------------------------------------------------------------|

|   | i. | Service                charge on the amount of each bill and out-of-pocket expenses towards                registration, postal charges etc. per instrument as per the Bank’s                schedule of standard charges in force from time to time;                and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | Overdue                interest on bills from the due to the date of payment and in the                case of                returned bills from the due date to the date of reimbursement at                the rates                prescribed by the Bank from time to time. Provided always the Bank                a its                discretion shall be entitled to revise the aforesaid charges from                time to                time; |
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|   | m. | The                Bank may send the bills either by registered acknowledgement due                post or                registered post or ordinary post or by any courier service, as is                decided                by the Bank in its discretion to any of its own offices or to any                of the                scheduled banks reference being to Schedule II of the Reserve Bank                of                India act, 1934) or other commercial bank and/or co-operative bank                or                directly to the drawees at the Borrower’s risk and responsibility as to                the losses if any on the bills or the proceeds of the bills or of                the                goods represented by the bills due to any cause whatsoever and the                Borrower agrees to hold the Bank harmless and indemnified from and                against                all consequences that may arise from is doing so and form and against                all                losses, charges and expenses in sending the bill accepted under these                arrangements in the manner                aforesaid; |
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|   | n. | Where                the bills accepted for collection are drawn on central/state government                departments/agencies and/or public sector undertakings and/or railways                and/or other parties and/or Borrower’s customers accompanied by either                railway receipt, shipping documents or other documents evidencing                title to                goods like motor receipts or receipt notes, take delivery notes receipted                challans or inspection notes in cases where the railway receipts,                shipping                documents or motor receipts have been forwarded/direct to the concerned                drawees/consignees and offered by the Borrower to the Bank for collection                the Borrower shall deposit with the Bank copies or the relevant documents                along with the bills signed by the Borrower and invoices evidencing                dispatch of goods to the parties mentioned                therein; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | o. | Where                at the request of the Borrower the Bank ha agreed to include in the                facilities granted under this Agreement credit sales made by the                Borrower                to the customers of the Borrower whereby finished goods are directly                sent                to the customers at their requests and copies of the relative invoices                with or without receipted challans or accepted delivery notes, receipts                notes, inspection notes, are tendered by the Borrower to the Bank                as                evidencing dispatch of finished goods and where under such circumstances                or any other circumstances the Borrower receives payment of the bills                the                Borrower shall immediately deposit the proceeds of the bills and                the sale                proceeds of the goods covered by invoices directly received by the                Borrower or the agents of the Borrower whether in cash or by cheques                or by                any other mode of payment in the said account(s) with the Bank towards                payment of the outstandings in respect of the advances granted on                the                evidence of such invoices; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | p. | The                Borrower shall repay the Bank’s advances within such number of days as may                be stipulated by the Bank of the utilization of the advances by the                Borrower on each occasion whether or not the payment of the said                bills/invoices is received by the Borrower or if the bills are returned                unpaid for any reason whatsoever the Borrower shall reimburse the                Bank                immediately on receipt of the Bank’s                advice; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | q. | The                Borrower shall indemnify the Bank and keep the Bank harmless and                indemnified at all times against all losses, damages, actions, costs                (as                between Advocate and client) charges or expense which may be made                against                or sustained or incurred by the Bank (and whether paid by the Bank                or not)                as a result of or in consequence of the Bank having agreed to                purchase/negotiate/discount/collect the said bills as also as a result                of                or in consequence of the Bank through any of its offices or correspondents                in India and elsewhere guaranteeing any irregularities or discrepancies                that may be existing in the documents relating to the said bills                in                connection therewith. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | r. | The                Bank shall have first and paramount lien on the bills and the moneys                received thereunder and the goods in course of transit covered by                the                documents of title to goods or other documents which purport to represent                rights of title to goods accompanying the bills shall remain pledged                to                the Bank and irrespective of its rights as a pledge of such goods                in case                of any dispute the Bank shall also have the banker’s lien on all bills,                goods, securities, documents and moneys belonging or purporting to                belong                to the Borrower for all moneys claims and demands due or to become                due                from the Borrower to the Bank; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | s. | In                case the bills/invoices are passed for payment for a reduced amount,                the                Borrower authorizes the Bank to accept such reduced payment and the                Borrower shall make good the shortage or any loss arising therefrom                and                the Bank will not be responsible in any manner                whatsoever; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | t. | Where                the drawees return unpaid the bills/invoices to the Borrower direct,                the                Borrower shall immediately on receipt thereof return the bills/invoices                to                the Bank and the Bank’s acceptances thereof shall be without prejudice to                its right of recovery of the amounts covered by the bills/invoices                from                the Borrower. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 44. | In                respect of advances granted by the Bank to the Borrower by way of                drawee                bills acceptance limit and/or drawee bills discounting limit wherein                usance bills drawn on the Borrower by the suppliers of goods and                accepted                by the Borrower are lodged with the Bank for discounting, the Borrower                hereby agrees and covenants with the Bank as                under: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | The                Borrower hereby confirms that at the request of the Borrower the                Bank has                agreed in its sole and absolute discretion to discount usance bills                with                usance ordinarily not exceeding 90 days, drawn on the Borrower by                the                suppliers of goods and accepted by the Borrower for an amount at                any time                not exceeding the drawee bills discounting limit granted within the                overall limit (hereinafter referred to as “the                bills’). |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Whenever                the Borrower requires the Bank to discount the bills, the Borrower                shall                lodge with the Bank the bills together with the original and/or copies                of                invoices and the receipted delivery challans evidencing the supply                to the                Borrower of the goods drawn by the drawers of the bills (hereinafter                called “the Suppliers”). |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | The                Borrower hereby confirms and declares that the amounts represented                by the                Bills drawn on the Borrower by the Suppliers will be due and owing                by the                Borrower to the Suppliers and that the goods represented by the invoices                accompany the Bills will have been duly ordered and received by the                Borrower and that the amounts of such bills will be paid by the Borrower                to the bank at maturity. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | The                Borrower declares and confirms that on the Bank discounting the Bills                the                Bank will have good title thereto and will be entitled to have the                Bills                rediscounted with Reserve Bank of India, Discounted and Finance House                of                India Limited, any scheduled commercial bank or any other approved                financial institution or otherwise deal with the Bills as the holder                thereof. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | The                Borrower further confirms that notwithstanding anything to the contrary                contained in ay documents or letters written by the Borrower to the                Suppliers or by the Suppliers to the Borrower, the Borrower shall                be                irrevocably, absolutely and unconditionally liable to pay to the                Bank the                amounts of the Bills discounted with the Bank at the maturity of                such                Bills. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | f. | The                Borrower agrees, declares and confirms that the Borrower will be                liable to                the Bank as aforesaid on the Bills and that the Bank shall be entitled                to                enforce all its rights against the Borrower as the holder of such                bills                and that the Borrower shall continue to be so liable notwithstanding                any                claim, right, dispute or litigation arising or which may arise between                the                Borrower and the Suppliers/drawers. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g. | The                Borrower agrees and confirms that on the acceptance of the Bills                by the                Borrower and as the same being discounted by the Bank, the proceeds                thereof shall be paid by the Bank to the Suppliers by means of bankers                cheque or by any other means as may be deemed fit by the                Bank. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h. | The                amount of discount/commission/or exchange at the same rate as applicable                to the discounting of drawer bill or such other rate as may be decided                by                the Bank, as the case may be, will be recovered by the Bank by debit                to                the cash credit account of the Borrower at the front end, i.e., at                the                time of discounting the Bills. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | Although                the amount of the Bills is payable by the Borrower at maturity of                the                Bills, the Borrower shall provide adequate funds in the cash credit                account to enable the Bank to recover the same by debit to the cash                credit                account of the Borrower in the event of non-payment thereof by the                Borrower on the due date. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 45. | Notwithstanding                any of the provisions of the Contract Act or any other law in respect                of                advances against accepted usance bills where the bills are drawn                by the                Borrower and accepted by the drawees the Borrower agrees that the                subsequent credit to the account(s) under these facilities, unless                specifically apportioned by the Borrower or the Bank to the discharge                of                any particular bill, will not discharge the debt represented by such                bills. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 46. | The                Borrower hereby declares that bills shall not be drawn on any of                the                Borrower’s branches nor on any firm in which the Borrower has any                proprietary partnership or other interest and that if on any occasion                or                occasions the Bank in its sole discretion accepts such bulls for                collection and makes advances there against the same shall not be                deemed                as the Bank having agreed to accept thereafter other bills of such                nature. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 47. | The                Borrower undertakes that all bills and documents tendered by the                Borrower                to the Bank shall represent genuine sales transactions covering movement                of goods represented by the railway receipts or truck receipts or                shipping                or other documents accompanying such bills that the amounts of such                bills                shall truly represent the value of the goods so transported/shipped                and                that every such bills tendered by the Borrower to the Bank shall                be in                respect of execution of definite orders received by the                Borrower. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 48. | In                respect of advances granted by the Bank to the Borrower for the purpose                of                the business of the Borrower of leasing or hire-purchase the Borrower                agrees and covenants with the Bank as                under: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | The                monies advanced by the Bank to the Borrower for hire of vehicles                shall be                utilized for acquisition of machinery, equipment, vehicles and such                other                movable assets as may be the subject matter of leasing and hire purchase                and which shall be hypothecated to the                Bank. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | b. | Before                availing of any advance, the Borrower shall deposit with the Bank                the                original agreement of lease and/or hire-purchase in respect of the                hypothecated assets. The Borrower shall also deposit with the                Bank: |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | Copies                of invoices; and |
|--------|----|----------------------------------------|

|   | ii. | Letters                confirming that the hypothecated assets are covered for comprehensive                risks for the entire period of the                Agreement. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | The                Borrower undertakes to provide the Bank in respect of vehicles                hypothecated to the Bank with all particulars of registration entered                in                the registration book of the hypothecated vehicle by the relevant                road                transport authority including the entry to the effect that the interest                of                the Borrower is duly recorded in the registration book. Such particulars,                certified by the Borrower to be rue particulars, shall be lodged                with the                Bank within 60 (sixty) days of presenting the relative agreements                of lease                and/or hire purchase to the Bank. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | The                amount of instalments received by the Borrower from the lessees and/or                the                hirers will as and when received be forthwith paid by the Borrower                to the                credit of the relevant account. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | The                Borrower undertakes not to enter into any lease and/or hire purchase                agreements without satisfying themselves about the financial status                of the                lessees and/or hirers and their capacity to pay instalments and without                verifying the statements made by the lessees and/or hirers in their                proposal forms. The Borrower shall give the hypothecated assets on                leases                and/or hire-purchases only after obtaining from the lessees and/or                hirers                the proposal forms and the agreements of lease and/or hire-purchase                duly                signed by them. The Borrower shall no vary the terms or wording of                the                proposal form and/or the lease agreements and/or hire-purchase agreements                without the prior consent of the Bank and should the Borrower contravene                the terms of this clause, the Bank shall have the right to terminate                this                Agreement and decline to finance the Borrower further. The Bank retains                the rights to decline to accept for making advances any lease and/or                hire-purchase agreements executed by any lessees and/or hirers without                assigning any reasons for such                non-acceptance. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | The                Borrower undertakes to see that the lessees and/or hirers discharge                their                obligations under the lease and/or hire-purchase agreements executed                by                them without any prejudice to the rights of the Bank and any failure                on                the part of the lessees and/or hirers to carry out their obligations                shall                be promptly reported to the Bank. In the event of any failure or                default                in payment of the advance or any part thereof, insolvency or winding-up                or                liquidation of the lessees and/or hirers or any of them, or termination                of                the said lease and/or hire purchase agreements, the Borrower undertakes                to                repay the advance made and outstandings in respect thereof at the                time of                such failure, default, insolvency, winding-up or liquidation without                the                Bank being obliged either to take steps to recover the amount from                the                Lessees and/or hirers or to exhaust the                security. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | g. | The                Borrower agrees, declares, confirms and affirms that the Bank shall                be at                liberty to fix and/or revise drawing power in the relevant cash credit                account each month by suitably reducing the drawing power in respect                of                instalments/rentals due during the month or adding the amounts of                instalments/rentals relating to fresh advances, if any, granted.                Provided                always that the drawing power shall be allowed only against hypothecated                assets leased and/or hired under the lease and/or hire purchase agreements                and the relative receivables till such time as suitable security                documents                as desired by the Bank have been executed by the Borrower. provided                further that no drawing power shall be allowed against hypothecated                assets                which are found to be second hand. And provided further that the                drawing                power shall be restricted to such per cent of the value of the                hypothecated assets or the value of the relating rentals or receivables                accruing to the Borrower within such period as may be prescribed                by the                Bank from time to time. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h. | He                Borrower undertakes and assures the Bank that the monthly instalments                in                respect of all the agreements of lease and/or hire purchase deposited                with                the Bank are/or will be duly paid as and when                due. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | In                the event of the Borrower or any lessee and/or hirer of the hypothecated                assets terminating the relative lease and/or hire-purchase agreement,                the                Borrower undertakes to notify immediately the Bank of such termination                and                the Borrower undertakes forthwith to pay the Bank the total amount                of                instalments then outstanding under the terminated lease and/or                hire-purchase agreement to the Bank together with                interest. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | j. | The                Borrower shall keep and maintain a proper register of assets leased                ad/or                hired by them showing therein full and correct particulars of assets                leased and/or hired by them, the price of such assets and sales tax                thereon, the name of the lessee and/or hirer to whom each of such                assets                is given on lease and/or hire, the instalments agreed to and amounts                of                instalments received. The said register and all books of accounts                maintained by the Borrower in respect of all lease and/or hire-purchase                agreements shall be open for inspection at all times by the manager,                auditor, inspector or any other officer of the Bank. The Borrower                shall                once a month, in a form approved by the Bank, submit to the Bank                a                statement before the 5th                day of every month in respect of the previous month giving details                of the                instalment due under each lease and/or hire-purchase agreements which                have                been deposited with the Bank and giving such other particulars as                may be                required by the Bank. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | k. | The                Borrower agrees, declares, confirms and affirms that the outstandings                in                the relevant account shall at all times be fully covered by the value                of                the hypothecated assets less the stipulated margins. If at any time,                the                drawing power yielded by the hypothecated assets held by the Borrower                falls below the amount borrowed, the Borrower shall forthwith adjust                such                excess borrowings under advice to the Bank. the Borrower shall submit                to                the Bank at monthly intervals statements showing the total outstandings                against lease and/or hire purchase agreements (separately) entered                into by                the Borrower adding thereto the fresh lease and/or hire purchase                agreements entered into by it and reducing the instalments and/or                rentals                received form the lessee and/or hirers during the relative month.                The                Borrower shall indicate in the monthly statements separately the                overdue                instalments/rentals if any, under the lease and/or hire-purchase                agreements. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | l. | The                Borrower undertakes to get in respect of the vehicles registered                in the                name of the lessees and/or hirers an endorsement in the respective                certificate of registration that the vehicle is under lease and/or                hire                purchase agreement with the Borrower. The Borrower shall not cancel                such                endorsement the certificate of registration of the vehicle until                the                advances made by the Bank against the vehicle are paid in full to                the                Bank. All charges of registration, payment of any taxes, licence                fees or                insurance premia on the vehicle(s) or any charge for upkeep or repairs                or                maintenance shall be that of the lessee and/or hirers or the Borrower                and                the Bank shall not be called upon or be bound to pay such charge                sunder                any circumstances. The Borrower hereby agrees to indemnify the Bank                and/r                any of its officer, servants or agents against loss by reason of                damage or                destruction or loss of the hypothecated assets or any of them from                any                cause whatsoever or by reason or by reason of all claims whatsoever                by                third parties in respect of the                same. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | m. | The                Borrower shall not avail of any advance from any other bank or from                any                other person on the assets hypothecated and charged to the Bank and                the                Borrower and/or lessees and/or hirers shall not have or be deemed                to any                authority to create a lien or charge upon the hypothecated asset                s in                respect of any repairs, alterations or additions                thereto. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | n. | The                Borrower doth hereby lastly agree that the Borrower will at any time                on                demand by the Bank execute at the cost in all respect of the Borrower                (a)                assignments in favour of the Bank of all or any of the lease and/or                hire-purchase agreements deposited by the Borrower with the Bank                in                respect of the hypothecated assets in such forms as the Bank may                require                and will also sign and give notices of such assignments to the lessees                and/or hirers or other persons concerned and (b) irrevocable power                of                attorney authorizing the Bank to recover the instalments, purchase                price,                interest and all other moneys payable under the relevant lease and/or                hire-purchase agreements and to have and exercise all the rights                authorities of the Borrower under such agreements and to file suits                for                the purpose, such power to be in the form required by the                Bank. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 49. | The                Borrower agrees, declares, affirms and confirms that notwithstanding                any                of the provisions of the Contract Act or any other law, on any terms                and                conditions to the contrary contained in this Agreement and/or any                security                documents any payment made by the Borrower to the Bank unless otherwise                agreed to by the Bank in writing be appropriated by the Bank in the                manner                following: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Firstly                towards costs, charges, expenses and other moneys, due and payable                or                becoming due and payable to the                Bank. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | b. | Secondly                towards interest due and payable and/or accruing due and payable                to the                Bank; and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Lastly                towards repayment of the amount of any instalment(s) of the principal                sum                due and payable or becoming due and payable to the Bank; All the                aforesaid                amounts having become due and payable and/or becoming due and payable                by                the Borrower to the Bank under this Agreement and/or under any of                the                security documents executed between the Borrower and the Bank whether                the                recovery thereof has or has not become barred by any law in force                for the                time being as to the limitation of                suits. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 50. | The                Bank shall not be responsible for any damage caused to goods, movables                and                other assets in course of transit covered by the bills accepted by                the                Bank as security or for loss of the goods, movables and other assets                or                for delayed delivery short delivery or wrong delivery of goods, movables                and other assets, or for delayed or wrong presentation of bills to                paying                authorities or drawees for any reason whatsoever and incase the bills                are                sent for collection direct to other banks or bankers or government                departments/agencies/institutions or quasi-government bodies/public                sector                undertakings/railways or other parties or the Borrower’s customers the                Bank shall not be responsible for the non-receipt by it of the remittance                representing the proceeds of the bills and the relative bills will                be                collected entirely at the Borrower’s risk and responsibility. The Borrower                shall be responsible for the costs and charges incurred by the collecting                bank or bankers in this behalf and shall pay the Bank these costs                and                charges. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 51. | The                Bank may at any time whether a demand for the payment of any money                for any                account has been made or not call upon the Borrower to give possession                of                the goods, movables and other assets hypothecated to the Bank and                the                Borrower declares that on the Borrower doing so the goods, movables                and                other assets shall stand pledged to the Bank without in any manner                affecting the rights of the Bank under the security documents executed                in                favour of the Bank. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 52. | (a)                That in respect of the credit facilities by way of term loans granted                by                the Bank to the Borrower, the Borrower shall repay the amount of                the                principal together with interest, costs, charges, expenses and other                monies due to the Bank by such instalments and on such dates as may                be                stipulated by the Bank from time to time until the entire amounts                due                under the term loans facilities have been repaid. If there is any                default                in payment of any one of such instalments n due date the agreement                to                receive payment by instalments shall stand determined at the option                of the                Bank and the Bank shall be at liberty to demand payment of and the                Borrower shall be bound and liable to pay forthwith on such demand                the                balance amount due to the Bank. (b) that in respect of all other                credit                facilities granted by the Bank to the Borrower, the Borrower shall                pay to                the Bank forthwith on demand by the Bank the balance or balances                then                outstanding and owing to the Bank under any of the Borrower’s account or                accounts in respect of such credit facilities together with interest                costs                charges and expenses due in respect                thereof. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 53. |   |
|--------|-----|--------|

|  | a. | The                      Borrower irrevocably constitutes and appoints the Bank to be                      the                      Borrower’s true and lawful attorney to do and execute for an in the                      name                      and on behalf of the Borrower and where the Borrower is more                      than one                      individual jointly and severally, all or any of the following                      acts, deeds                      and things, that is to                      say: |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | i. | To                      take over and carry on the business of the Borrower and complete                      engagements and contracts; |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------|

|  | ii. | To                      sign, register, file any application forms, contracts, agreements,                      transfers, acceptance, receipts, acquittances, returns and                      any other                      documents and to sign and endorse all cheques, promissory notes,                      bills of                      exchange, bills of lading, dividend mandates or other orders                      for payment                      of money or delivery of                      property; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | iii. | To                      sell, transfer, sign or deal with any goods, movables and other                      assets; |
|--|------|----------------------------------------------------------------------------------------------------------------------|

|  | iv. | To                      demand and receive all debts, sums of money, principal money,                      dividends,                      interest and dues of whatever                      nature; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | v. | To                      appoint selling agents and if necessary to undertake new kinds                      of                      activity; |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|  | vi. | To                      realize all the assets whether movable or immovable including                      the goodwill                      of the business; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | vii. | If                      considered proper, to wind up the Borrower’s                      business; |
|--|------|-----------------------------------------------------------------------------------------------------------|

|  | viii. | To                      tender contract for purchase, accept and sign the transfer                      into the name                      of the Borrower of any securities, shares, stocks, debentures,                      funds or                      any other securities, to apply for and accept allotment of                      any shares and                      securities and to sell, endorse, negotiate, transfer and assign                      any                      securities, shares, stocks, debentures, funds, and other securities                      which                      now or shall hereafter stand in the name of the Borrower or                      to which the                      Borrower is now or may at any time hereafter be entitled to                      demand,                      receive and collect interest and dividend due or to accrue                      due on any such                      securities, shares, stocks, debentures, funds and other securities                      and                      apply the proceeds of such sale, endorsement, transfer, negotiations                      and                      assignment and the recovery o any interest and dividend in                      satisfaction of                      any monies due by the Borrower to the Bank and to endorse and                      transfer all                      or any such securities, shares, stocks, debentures, funds and                      other                      securities which may from time to time or at any time be in                      the possession                      of the Bank whether for safe custody or otherwise or held by                      the Bank as                      security for any money payable to the Bank by the Borrower                      in respect of                      any account or general balance of account or                      otherwise; |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ix. | To                  appoint a proxy or proxies for the purpose of representing the                  Borrower                  and voting in meeting or meetings of any company or corporation                  in which                  the Borrower holds any shares, debentures, stocks,                  etc. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | x. | To                deal with the assessment of the Borrower in respect of income tax,                super                ax, wealth tax, gift tax, expenditure tax, capital gains tax and                any other                taxes on income revenue or capital and levy of customs and/or excise                duties and to apply for and to receive refunds of any such tax or                taxes or                levy or levies. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xi. | To                attend and represent the Borrower before any authority or tribunal                and for                that purpose to sign, execute and deliver all such documents and                make all                such declaration as may be                necessary; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xii. | Generally                to act in the premises as fully and effectually with all intents                and                purposes and to do all things as are necessary and which the Borrower                would do if personally present; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xiii. | For                all and any of the purposes aforesaid to appoint a substitute or                substitutes; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------|

|   | b. | the                Borrower hereby ratifies and confirms all the acts, things, deeds                performed or to be performed by the Bank or its nominees or substitutes                in                pursuance of any of the aforesaid powers and the powers hereby conferred                shall not be determined or affected Borrower the fact of the Borrower                acting personally or through another in the                premises. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | the                powers vested in the Bank shall be irrevocable and subsist in favour                of                the Bank till all the dues of the Borrower to the Bank are fully                satisfied. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | the                aforesaid powers under this clause may be exercised by the Bank in                its                sole discretion but the exercise of the powers is not obligatory                on the                Bank. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 54. | The                security created and indemnities and undertakings given herein and/or                by                the security documents executed in favour of the Bank for various                credit                facilities shall operate as continuing security and/or indemnities                and/or                undertakings for all moneys, indebtedness and liabilities of the                Borrower                under such credit facilities and will operate as security and/or                indemnities and/or undertakings for the ultimate balance or aggregate                balance with interest thereon and costs, charges and expenses if                any to                become payable upon the account(s) to be opened and the said account(s)                is/are not closed and is/are not to be considered to be closed for                the                purpose of such security and/or indemnity and/or undertaking and                the                security and/or indemnity and/or undertaking is not to be considered                exhausted merely by reason of the said account(s) being closed and                fresh                accounts being opened in respect of fresh credit facilities being                granted                within the overall limit sanctioned to the Borrower or either or                any of                them being brought to credit at any time or from time to time or                any                partial payments made thereto or any fluctuations of such account(s)                and                if the whole of the Bank’s duties dues shall be repaid and the whole of                the security be withdrawn the account(s) or either or any of them                may                nevertheless at any time before such account(s) has or have been                closed,                be continued under this Agreement upon the security as aforesaid                being                again furnished. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 55. | In                respect of the credit facilities granted or to be granted by the                Bank by                way of term loans either in Indian or foreign currencies the Borrower                agrees and declares that notwithstanding anything contained herein                or in                any other security documents the entire amounts of the term loans                or the                balances then due shall, if so decided by the Bank, become forthwith                due                and payable by the Borrower to the Bank, upon the happening of any                of the                following events and the Bank shall be entitled to enforce its                security: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | a. | Any                instalments of the principal remaining unpaid for a period exceeding                one                month after the due date for payment thereof has                expired; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Any                interest remaining unpaid and in arrears for a period of one month                after                the same have become due whether demanded or                not; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | The                Borrower committing any breach or default in the performance or observance                of any of the covenants contained in these present and/or the Borrower’s                proposal and/or the security documents or any other term or condition                relating to the term loans; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | The                Borrower entering into any arrangement or composition with the Borrower’s                creditors or committing any act of                insolvency; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | Any                execution or distress being enforced or levied against the whole                or any                part of the Borrower’s property; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | On                a winding up petition being filed or the Borrower being a limited                company                going into liquidation (except for the purpose of amalgamation or                reconstruction); |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g. | A                receiver being appointed in respect of the whole or any part of the                property of the Bank; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------|

|   | h. | The                Borrower ceasing, or threatening to cease, to carry on                business; |
|--------|----|----------------------------------------------------------------------------------------------------|

|   | i. | The                occurrence of any circumstance which is prejudicial to or impairs,                imperils or depreciates or which is likely to prejudice, impair,                imperil                or depreciate the security given to the Bank;                and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | j. | The                occurrence of any event or circumstance which prejudicially or adversely                affect in any manner the capacity of the Borrower to repay the amount                due                under the term loans. On the question whether any of the above events                has                happened, the decision of the Bank shall be conclusive and binding                on the                Borrower. Provided always that the Bank may in its discretion refrain                from                forthwith enforcing its rights under this Agreement in site of the                happening of any of the contingencies aforesaid and provided further                that                the failure or deal by the Bank in exercising any right, power or                privilege hereunder or under any of the security documents shall                no                impair/extinguish the same or operate as waiver of the same nor shall                any                single or partial exercise of any right, power or privilege preclude                any                further exercise of the same or the exercise of any other right,                power or                privilege. The rights and remedies provided herein and in the security                documents are cumulative and not exclusive of any rights and remedies                provided by law. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 56. | In                respect of the credit facilities granted or to be granted by way                of term                loans or such facilities/liens of credit as may be granted in foreign                currencies (hereinafter referred to as foreign currency loans), the                Borrower hereby agrees and covenants with the Bank as                under: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | The                Bank may, without prejudice to any of the rights as may be available                to                the Bank under any other agreement, remit the instalments under the                foreign currency loans by debiting the rupee equivalents of such                instalments, as and when falling due, converted at such rate of exchange                as may be ruling at the material time as between the concerned foreign                currency and Indian Rupee and the Borrower hereby indemnifies the                Bank                against any claim or claims, loss or losses or damages, actions,                costs and                expenses whatsoever which may be brought or made against or sustained                or                incurred by the Bank (and whether paid by the Bank or not) or which                the                bank may become liable in making such remittances; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | b. | In                the event of the Borrower defaulting in effecting the remittance                of any of                the instalments falling due under the foreign currency loans, the                Bank                may, without prejudice to any other remedy or without being obliged                to do                so, shall be entitled to debit the Rupee equivalent of the said instalment                (converted at such rate of exchange as may be ruling at the material                time                as between the concerned foreign currency and Indian rupee) to any                cash                credit/overdraft account of the Borrower opened or to be opened with                the                Bank and all such amounts so debited shall be charged with interest                as                applicable to the said account as provided in clause No. 14                above; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Such                remittances made by the Bank shall not absolve the Borrower protanto                from                his liability under the foreign currency loans nor shall they be                deemed,                in so far as the Borrower’s liability to the Bank and the relative                security charged therefore in favour of the Bank are concerned, to                reduce                the outstandings under the foreign currency loans to the extent of                the                defaulted amounts of instalments so remitted by the Bank and                notwithstanding the remittances so made, the Bank reserves the right                of                set off or other legal remedies as against the Borrower according                to the                law of the country where such foreign currency loans have been made                available. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 57. | In                respect of the facilities granted by the Bank by issue of letters                of                credit, guarantees including deferred payment guarantees and indemnities                whether in Indian or foreign currencies, the Borrower hereby agrees                and                covenants with the Bank as under: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | To                indemnify the Bank against any claim or claims, loss or damage actions                costs (as between Advocate and client), charges and expenses whatsoever                which may be brought or made against or sustained or incurred by                the Bank                (and whether paid by the Bank or note) or which the Bank may become                liable                under or in respect of such letters of credit guarantees and                indemnities; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | The                Bank may in its sole absolute and unqualified discretion and without                reference to the Borrower and without the Bank being required to                ascertain                whether or not there was any breach on the part of the Borrower of                the a                executed between the Borrower and the beneficiaries in whose favour                the                guarantees and/or indemnities are or were executed by the Bank and                without                the Bank being required to into the validity or otherwise of the                demand                for payment made against the Bank and notwithstanding any directions                to                the contrary given by the Borrower or any other person on the ground                or                dispute as to the liability of the Borrower or otherwise admit or                compromise and pay or submit to arbitration or dispute or resist                any claim                or demand made against the Bank under or in respect of such guarantees                and                indemnities, the counter-indemnity/guarantee contained herein of                the                Borrower being available to the Bank in respect of any action or                payment                which the Bank may take or make; and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | c. | In                the event of any payment being made by the Bank pursuant to any letter                of                credit, guarantee/indemnity issued by the Bank on behalf of the Borrower,                the Bank without prejudice to any other remedy it may have shall                be                entitled to debit the said payment to any account of the Borrower                opened/to be opened with the Bank and all such amounts unless adjusted                against any cash margin available and properly applicable to the                said                letter of credit, guarantee/indemnitee shall also be charged with                interest                as applicable to the account in which they are debited as provided                in                clause no. 14 above. |
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|   | 58. | If                the Borrower be more than one individual all shall be bound hereunder                jointly and severally or if a firm or members of a firm, such firm                and all                such members and all the members thereof, from time to time, shall                be                bound hereunder jointly and severally notwithstanding any changes                in the                constitution or style thereof and whether such firm consist of or                be                reduced to one individual at any time and that the Borrower be more                than                one individual at any time, any notice served on any such one individual                shall be deemed to be service of such notice on all such                individuals. |
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|   | 59. | Any                notice or communication or demand by the Bank in writing to the Borrower                under this a or any security documents shall be deemed to have been                duly                given to the Borrower by sending the same by post addressed to the                Borrower at the address notified by the Borrower and such notice                or                communication or demand shall be deemed to have been received by                the                Borrower four days after the date of posting thereof and shall be                sufficient if signed by any officer of the Bank and in proving such                service it shall be sufficient if it is established that the envelope                containing such notice, communication or demand was properly addressed                and                put into the post office. |
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|   | 60. | The                Borrower shall bear and pay all costs, charges and expenses (between                Advocate and Client) including stamp duty registration and other                charges                payable in respect of this a and also in respect of other security                documents to be executed between the parties hereto as stipulated                in this                a and if any penalty or charges are paid or become payable by the                Bank,                the Borrower shall pay to the Bank the amount thereof with interest                thereon at the rate aforesaid forthwith on demand by the                Bank. |
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| SIGNED                by: | /s/                Surendra Ajjarapu | Name:                /s/ Smt. Anita Chandran, Director |
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