RETENTION AMOUNT BANK GUARANTEE Date : 30th July 2013

BANK GUARANTEE NO : To M/s. Rane TRW Steering Systems Limited 38th K.M.Stone, G.S.T. Road (NH 45) Vallanchery Village, Guduvanchery Post 603 202.

This guarantee is made this 31st day of July 2013, Between The Karur Vysya Bank Ltd, a company incorporated under Banking Regulations Act and having its Branch Office at No.50, AMM Towers, Thiruvalluvar Main Road, Mogappair, Chennai 600 037 and having its head office at Erode Road, Karur (hereinafter called the Bank) which expression shall unless repugnant to the context or contrary to the meaning thereof include its successors of the on part and M/s. Rane TRW Steering Systems Limited, incorporated in India under Indian Companies Act 1956 (hereinafter called Beneficiary) which expression shall include the successors and consignees) of the other part. WHEREAS the Beneficiary has placed a contract vide Purchase Order No : 4300 4900076765 Dated 12.03.2013 ( hereinafter called Work Order ) with M/s.PKM Metal Buildings Company ( hereinafter called the Contractor ) having registered office & factory at # 43/17, Thulangum Thandalam Village, Dimmasamudram Post, Near Vellagate, Kancheepuram 631 502 for Removal of existing AC Sheet and provision of single skin insulated sheet with weld mesh in pump building ( hereinafter called the Work) at the Total Basic cost of Rs 48,39,099/-. AND WHEREAS it is one of the terms of the said contract that the Contractor shall furnish to the Beneficiary a Bank Guarantee for 10% of the Basic Value of the Final Tax Invoice No 037 Dated 15.07.2013, Rs 4,83,910/- and shall be valid for a period of one year from the date of final Tax Invoice.. AND WHEREAS the Bank has, at the request of the Contractor, agreed to be given in favour of the Beneficiary a Guarantee in manner hereinafter appearing, which the Beneficiary has agreed to accept. NOW THIS DEED WHITNESSETH AS FOLLOWS : 1. In pursuance of the said agreement and in consideration of the premises, the Bank hereby guarantees to the Beneficiary due observance and fulfillment by the Contractor of the items of the said contract relating to the said work and of the performance warranty which is part of the said contract and agrees and undertakes that if the contractor fails to observe and fulfill the said terms of the said contract and / or the performance warranty, then the Bank shall immediately pay to the Beneficiary on demand such sum or sums of money to the extent of 10% of the

Final Tax Invoice Value on account of losses and damages suffered by the Beneficiary as may claimed by the Beneficiary by reason of such nonobservations and non-fulfillment by the contractor may suffered by the Beneficiary as aforesaid and against all costs, changes, expenses which may be incurred by the Beneficiary, in connection herewith. The Bank shall pay the said amount without demur of protest or without recourse to the contractor. Any such demand placed on the Bank shall be inclusive as regards the amount due and payable by the Bank under this Guarantee. 2. This guarantee is a continuing guarantee and not revocable except with the previous written consent of the Beneficiary and save as aforesaid it will continue in force until the expiry of the defects liability period of one year ie; 14.07.2014,under the said contract and observed and fulfilled the said performance warranty and all other terms and conditions of the said contract. The Beneficiary may, without affecting Banks liabilities and obligations hereunder, grant time or other indulgence to or compound with the contractor or enter into any agreement or agree to forebear to enforce any of the terms and conditions of the said contract against the contractor or agree to vary any of the terms and conditions of the said contract. This guarantee shall not be affected by any change in the constitution of the Beneficiary by absorption with any other body or corporation or otherwise and this guarantee will be available to or enforceable by such body or corporation. All compositions and payments received by the Beneficiary from or on behalf of the contractor shall be regarded as payments in gross and in the event of the contractor being wound-up, the Beneficiary will be entitled to prove against the properties of the contractor in respect of the whole of the Contractors indebtedness of the Beneficiary, without any right on the part of the Bank to stand in the Beneficiary place in respect of or to claim the benefits of such composition and payment or any security held by the Beneficiary until the Beneficiary shall have received the full amount of the claims against the Contractor. In order to give effect to this guarantee the Beneficiary will be entitled to act as if the Bank were the Principal debtor and the Bank hereby waives all and any of its rights of surety ship. This guarantee shall continue to be in force notwithstanding the discharge of the contractor by operation of law and shall cease only on payment of the full amount by the Bank of the Beneficiary of the amount hereby secured and on the claim of the Beneficiary against the Contractor in respect of the said contractor being satisfied. This guarantee shall be in addition to and not in substitution for any other guarantee or security for the contractor given or to be given to the Beneficiary in respect of the said contract be the Bank (whether alone or jointly with others) Subject to Clause 2 hereof this Guarantee shall remain in force for 12 months from the date of Final Tax Invoice 15th July 2013.

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Unless a demand or claim under this Guarantee is made on the bank in writing within the expiry date of this bank guarantee ie; 15th July 2014, we shall be discharged from all liability under this Guarantee. Any notice by way of request, demand or otherwise hereunder may be sent by post to the Bank addressed as aforesaid and if sent by post, it shall be demand to have been given at the time when it would be delivered in due course of post and in proving such notice, when given by post, it shall be sufficient to prove that the envelope containing the notice was posted and a certificate signed by and an officer of the Beneficiary that the envelope was so posted shall be conclusive. This present shall be governed by and construed in accordance with Indian Law. The Bank hereby declares that it has the power to issue this Guarantee and the undersigned has full powers to do so.

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Notwithstanding anything contained hereinabove our liability under this guarantee is restricted to Rs. 4,83,910/- (Rupees Four Lakhs eighty three thousand nine hundred and ten only) and shall remain in force up to 14.07.2014 unless a demand or a claim in writing on or before 14.07.2014 we shall be discharged from all liabilities under this notice thereafter.

IN WITNESS where of the Bank has executed these present the day and year first above written. SIGNED AND DELIVERED for an on behalf _________________________________ of the above named ______________________________________.