Mar 22, 2008

Escorts - Notice of Postal Ballot

iEscorts Ltd has informed that the members of the Company will consider to approve by way of Postal Ballot the following Special Resolutions:

1. The following guarantees provided on behalf of Escorts Construction Equipment Ltd (ECEL), a subsidiary of the Company:-

a. Rs 20 crores in favour of Indusind Bank Ltd in order to secure the repayment of working capital facilities of Rs 20 crores (i.e. fund based- Rs 10 crores, non-fund based- Rs 10 crores) sanctioned by the said Bank to ECEL.

b. Rs 25 crores in favour of Axis Bank Ltd in order to secure the repayment of working capital facilities of Rs 25 crores (i.e. fund based- Rs 10 crores, non-fund based- Rs 15 crores) sanctioned by the said Bank to ECEL.

notwithstanding that such guarantee(s) and security(ies) together with the Company's existing investments in other bodies corporate and loans to or guarantee(s) / security(ies) provided on behalf of other (bodies corporate, be in excess of the percentage prescribed under Section 372A(1) of the Companies Act, 1956.

Further resolved that the aggregate value of guarantee / security(ies) so provided / to be provided by the Company on behalf of ECEL in no case shall exceed Rs 45 crores plus interest and other charges payable ECEL to the aforementioned banks.

Further resolved that the Board of Directors or any other person authorized by the Board or any Committee thereof, be and is hereby authorized to take all such steps as may be deemed expedient or necessary to give effect to the above resolution.

2. Accorded to guarantee(s) provided / to be provided for the exposure of the following Banks for providing Channel / Retail financing to Channel Partners and END Customers of the Company for its products:

i. Name of the Bank: Axis Bank Ltd - Purpose and exposure of the Bank: Channel financing upto Rs 125 crores - Corporate guarantee: 20% of Exposure

ii. Name of the Bank: State Bank of India - Purpose and exposure of the Bank: Dealer financing upto Rs 100 crores - Corporate guarantee: 2% of Exposure

iii. Name of the Bank: Oriental Bank of Commerce - Purpose and exposure of the Bank: Channel and Retail financing - Corporate guarantee: 2% of Exposure

iv. Name of the Bank: Punjab and Sind Bank - Purpose and exposure of the Bank: Channel financing and Lock & key arrangement upto to Rs 100 crores. -Corporate guarantee: 2% of Exposure

v. Name of the Bank: Syndicate Bank - Purpose and exposure of the Bank: Channel financing and Lock & key arrangement upto to Rs 28.50 crores. - Corporate guarantee: 2% of Exposure

vi. Name of the Bank: Industrial Development Bank of India Ltd - Purpose and exposure of the Bank: Channel financing and Lock & key arrangement upto to Rs 45 crores. - Corporate guarantee: 2% of Exposure

3. To alter the Articles of Association of the Company.

4. To appoint Mr. Nikhil Nanda as Joint Managing Director of the Company for a period of five (5) years with effect from September 19, 2007, and payment of remuneration to him for first three years of his appointment i.e. from September 19, 2007 to September 18, 2010, on terms & conditions.

5. Payment of remuneration to Mr. Rajan Nanda as Chairman and Managing Director of the Company during the period of April 01, 2008 to March 31, 2010, on terms & conditions.

6. To delist the securities of the Company from the Delhi Stock Exchange Association Ltd.

The Company has appointed Mr. M L Pahwa, retired Deputy Commissioner of Excise & Taxation, Haryana, as the Scrutinizer for conducting the Postal Ballot process in a fair and transparent manner.

The Postal Ballot form duly completed should reach the scrutinizer on or before April 15, 2008. The scrutinizer will submit his report to the Chairman, after completion of the scrutiny and the results of the postal ballot will be announced thorough a newspaper advertisement thereafter.

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