Raunaq Automotive Components

Raunaq Automotive Components Ltd has informed that the members at the Annual General Meeting (AGM) of the Company held on September 29, 2007, inter alia, have also accorded to the Board to mortgage and / or create hypothecation / other charge by the Board of Directors of the Company, on all movable as well as immovable properties of the Company, wherever situated, present as well as future, including the whole of undertaking of the Company together with powers to take over the management of the business & concern of the Company in certain events, to or in favour of State Bank of India / Any other Bank / FIs and Pradeshiya Industrial & Investment Corporation of UP Ltd (PICUF) to secure / to be secured payment of the additional amount mentioned against each as under:

(1)
- Name of the Institutions : State Bank of India / Any other Bank / FIs
- Additional Facilities taken / to be taken : Rs 300 Lacs
- Particulars of Activity : Financial Assistance of Rs 300 Lacs given by SBI by way of Working Capital Facilities secured by first charge by way of hypothecation of stocks & book debts etc. and second charge on other assets.

(2)
- Name of the Institutions : PICUP
- Additional Facilities taken / to be taken : Rs 200 Lacs
- Particulars of Activity : Interest free loan in lieu of sales tax secured / to be secured by way of second charge / part passu with SBI & IDBI, IFCI, ICICI on movable as well as immovable assets of the Company.

The interest payment at the agreed rate / additional interest, commitment charges and other moneys payable, whether funded and payable or not funded and payable by the company to the state Bank of India / Any other Bank / FIs in terms of the loan agreements whether executed or to be executed / letters of sanction and memorandum of terms & conditions entered / to be entered into in respect of aforesaid borrowings, subject to necessary provisions and approvals.