SUPPLEMENTAL LOAN AGREEMENT This SUPPLEMENTAL BUSINESS M POWER SCHEME AGREEMENT is executed on 02nd day of March, 2011 BY M/s.

M.R. Fabrics a Proprietorship Concern having its office at E-19, Nagori Garden, Bhilwara, through its Sole Proprietor Shri Moti Lal Lalani (hereinafter referred to as the Borrower,which expression shall unless it be repugnant to the context or meaning shall mean and include its successors and permitted assigns); IN FAVOUR OF AXIS BANK LTD., a Banking Company incorporated and registered under the Companies Act, 1956 and carrying on Banking Business under Banking Regulation Act, 1949 and having its Registered office at Trishul, 3rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad 380 006, Gujarat and one of its branches at Ganpati Enclave, Heera Panna Campus, Pur Road, Bhilwara hereinafter referred to as the Bank(which expression shall unless it be repugnant to the context or meaning thereof, shall mean and include its successors and assigns)

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WHEREAS :
1.

The Borrower was sanctioned Overdraft facility, under the Business MPower Scheme, aggregating to Rs. 39,00,000/- (Rupees Thirty Nine Lakh only) by the Bank vide its sanction letter no. UTIB / BHL / CR / PP / 2006-07 / 550 dated 05.03.2007 and renewed vide letter No. AB / BHL / CR / 07-08 / 1055 dated 29.03.2008, thereafter further renewed and enhanced to Rs. 63,00,000/- (Rupees Sixty Three Lakh only) vide letter No. AB / ADV / MPOWER / 08-09 / 268 dated 07.08.2008 and then further renewed and enhanced to Rs. 75,00,000/- (Rupees Seventy Five Lakh only) vide letter no. AB / SME-CEN / JPR / 2009-10 /906 dated 23.12.2009 (hereinafter called the Principal Sanction Letter(s)). In consideration of the said sanction the Borrower has entered into a Loan Agreement dated 06.03.2007 (hereinafter referred to as the Principal Loan Agreement) and supplemental Business M-Power facility agreement dated 08.08.2008 and 01.01.2010. The Borrower had also executed the undermentioned documents.

2.

S.N .

Document

Date of execution

Amount

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1 Sanction letter no. UTIB / BHL / CR / PP / 2006-07 / 550 dated 05.03.2007 duly accepted 2 D.P. Note 3 D.P. Note Delivery cum waiver letter 4 Loan agreement 5 Letter of continuing security 6 Sanction letter no. AB / ADV / M-Power / 08-09 / 268 dated 07.08.2008 duly accepted 7 D.P. Note 8 D.P. Note Delivery cum waiver letter 9 Deed of hypothecation of current assets 13 Supplemental Business M-Power facility agreement 10 Sanction letter no. AB / SME-CEN / JPR / 200910 / 906 dated 23.12.2009 duly accepted 11 D.P. Note 12 D.P. Note Delivery cum waiver letter 13 Supplemental Business M-Power facility agreement
3.

06.03.2007 06.03.2007 06.03.2007 06.03.2007 06.03.2007 08.08.2008 08.08.2008 08.08.2008 08.08.2008 08.08.2008 01.01.2010 01.01.2010 01.01.2010 01.01.2010

Rs.39,00,000 0/Rs.39,00,000 0/Rs.39,00,000 0/Rs.39,00,000 0/Rs.39,00,000 0/Rs. 63,00,000/Rs. 63,00,000/Rs. 63,00,000/Rs. 63,00,000/Rs. 63,00,000/Rs. 75,00,000/Rs. 75,00,000/Rs. 75,00,000/Rs. 75,00,000/-

At the request of the Borrower, the Bank has vide its further sanction letter no. AB / SME-CEN / JPR / 2010-11 / 1123 dated 26.02.2011 agreed to enhance said overdraft facility from the existing Rs. 75,00,000/- (Rupees Seventy Five Lakh only) to Rs. 1,75,00,000/- (Rupees One Crore Seventy Five Lakh only) as more particularly described in the said further sanction letter forming the part of the integral part of this Supplemental Agreement.

4. By virtue of this enhancement and revision of the principal Sanction Letter, it has become necessary to amend the Principal Loan Agreement, which the Borrower has agreed to do. The parties hereto have agreed to execute this Supplemental Agreement as under: NOW THIS AGREEMENT WITNESSETH AS UNDER:

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1.

The Borrower agrees and confirms that this Agreement is and shall be supplemental to the said Principal Loan Agreement dated 06.03.2007, supplemental Business M-Power facility agreement dated 08.08.2008 and supplemental Business M-Power facility agreement dated 01.01.2010 and shall always be read in conjunction with the same and with all the agreements already executed. The Borrower agrees and confirms that the borrowing Limit of Rs. 39,00,000/- (Rupees Thirty Nine Lakh only) stated in the Schedule of the said Principal Loan Agreement and in all other places in the said Principal Loan Agreement and shall stand modified to Rs. 1,75,00,000/(Rupees One Crore Seventy Five Lakh only). The borrower also agrees and confirms that borrowing limit of Rs. 63,00,000/- (Rupees Sixty Three Lakh only) in supplemental Business M-Power facility agreement dated 08.08.2008 and in all other places in the said Business M-Power facility agreement stands modified to Rs. 1,75,00,000/- (Rupees One Crore Seventy Five Lakh only). Further borrower also agrees and confirms that borrowing limit of Rs. 75,00,000/- (Rupees Seventy Five Lakh only) in supplemental Business M-Power facility agreement dated 01.01.2010 and in all other places in the said Business M-Power facility agreement stands modified to Rs. 1,75,00,000/- (Rupees One Crore Seventy Five Lakh only). The rate of interest applicable for the revised aggregate limit shall be 4.75 % above base rate i.e. presently 13.50 % p.a. payable at monthly interval, subject to change from time to time as decided by the bank or such other rate as may be revised by the Bank from time to time depending on the change in Base rate of the Bank or directives of RBI or policy of the Bank from time to time. It is hereby agreed that the figure of Rs. 39,00,000/- (Rupees Thirty Nine Lakh only) appearing in the said Principal Loan Agreement shall stand revised to Rs. 1,75,00,000/- (Rs. One Crore Seventy Five Lakh only) and figure of Rs. 63,00,000/- (Rupees Sixty Three Lakh only) appearing in the supplemental Business M-Power facility agreement dated 08.08.2008 shall stand revised to Rs. 1,75,00,000/- (Rs. One Crore Seventy Five Lakh only) and further figure of Rs. 75,00,000/- (Rupees Seventy Five Lakh only) appearing in the supplemental Business M-Power facility agreement dated 01.01.2010 shall stand revised to Rs. 1,75,00,000/- (Rs. One Crore Seventy Five Lakh only) and the figure of interest BPLR-2.50 % p.a. shall stand modified as 4.75 % above base rate i.e. presently 13.50 % p.a. at present in Principal loan agreement and all Supplemental Business M-Power facility agreement and that all other terms and conditions in the Principal Loan Agreement and supplemental Business M-Power facility agreements shall remain unchanged and shall continue to be applicable to the revised limits and be binding on the Borrower.

2.

3.

4.

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5. a) The Borrower acknowledges and agrees that the Bank has/shall have sole discretion to: i. allow Temporary Overdrafts in the account for meeting the temporary mismatches; ii. allow operations beyond sanctioned limits i.e. granting excesses etc. iii. honour cheques in the account for other than agreed purposes; iv. allow any additional facilities on regular or ad-hoc basis; v. allow drawings in the account after classifying it as NPA. The Borrower also undertakes and agrees that they shall not be entitled to claim any of the above as a matter of right even if the same are allowed by the Bank at any point of time at their sole discretion. In such event, the Borrower hereby waives the requirement of notice of withdrawal of any such facility stated above in this clause. The Borrower understands and agrees that in the event of the Bank granting/allowing excess drawing to the extent specified hereinabove, the same shall not be permitted to be continued for a period exceeding 30 days at a time and further the total number of days such excess drawing allowed shall not exceed 180 days in aggregate in a year (i.e. from the date of sanction to the day the account falls due for renewal). It is also understood and agreed by the Borrower that such Temporary Overdrafts shall not be granted by the Bank for more than six occasions during the period of 12 months starting from the date of sanction or renewal as the case may be.
b)

The Borrower shall be allowed to overdraw, as above, the account to the extent of 10% of the sanctioned limit or the Drawing Power whichever is lower, at the discretion of the Bank.
c)

6.

The Borrower agrees and declares that all the schedules, covenants and stipulations contained in the said Principal Facility Agreement and to be performed and observed by the Borrower shall be applicable to the enhanced facility as herein mentioned and be binding on and enforceable against the Borrower as if all the provisions contained in the Principal Loan Agreement were reiterated and reproduced herein. The Borrower confirms and agrees that except for the above modification all the terms and conditions, covenants, stipulations including all the provisions and schedules contained in Principal Loan Agreement executed by the borrower will hold good without any change and shall form part of this Supplemental Agreement. The Parties hereby agree that save and except the terms and conditions hereinafter specified for the above said substitution in this supplemental agreement, all the other terms and conditions as contained in the Principal Loan Agreement shall remain unchanged and shall continue to

7.

8.

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be applicable and be binding on the Borrower irrespective of the contents of this supplemental agreement. 9. The Borrower understand that as a pre-condition, relating to grant of the loans/ advances/other fund based and/or non fund based credit facilities to the Borrower, the Bank requires the consent of the Borrower for the disclosure by the bank of, information and data relating to the Borrower, of the credit facility availed of/to be availed, by the Borrower. Obligations assumed/to be assumed, by the Borrower(s) in relation thereto and default, if any, committed by the Borrower in discharge thereof. Accordingly, the Borrower hereby agree and give consent for the disclosure by the Bank of all or any such: (a) information and data relating to us (b) the information or data relating to any credit facility availed of/to be availed by us and (c) default, if any, committed by us, in discharge of our such obligations, as the Bank may deem appropriate and necessary to disclose and furnish to Credit Information Bureau (India) Ltd. and any other agency authorised in this behalf by RBI 11. 12. We, declare that the information and data furnished by us to the Bank are true and correct.

10.

We, undertake that: (a) the Credit Information Bureau (India) Ltd, and any other agency so authorised may use, process the said information and data disclosed by the Bank in the manner as deemed fit by them and (b) the Credit Information Bureau (India) Ltd. and any other agency, so authorised may furnish for consideration, the processed information and data or products there of prepaid by them, to Banks/FIs and other credit grantors or registered users, as may be specified by the Reserve bank in this behalf. That all the terms and conditions, covenants, stipulations, clauses including all the provisions contained in the Principal Loan Agreement executed by the borrower shall remain unchanged and shall apply mutatis mutandis to this Supplemental Agreement also. The Borrower confirms and agrees that this Supplemental agreement shall always be read in conjunction with the Principal Loan Agreement executed as afore said.

13.

14.

IN WITNESS WHEREOF the said Proprietor has set and subscribed his/her hand hereto, the day and year first hereinabove mentioned at Bhilwara For M.R. Fabrics

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Proprietor

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