Preamble:
 
 The Company is engaged mainly in the business of manufacture and sale
 of non ferrous gravity and pressure die castings which is the core and
 strategic activity.The Company also derives Income from sale of certain
 electronic hardware items which is non core and non strategic in
 nature.
 
 The method of accounting and compliance with various Accounting
 Standards is displayed below:
 
 2 (b) Details of Securities created for loans External Commercial
 Borrowings
 
 i) Secured by first and exclusive charge on specific plant and
 machinery situated at the Company’s factory at Padi, Chennai.  
 
 ii) Secured by exclusive charge by way of Hypothecation of specific 
 movable assets, in the Company’s factories at Padi, Chennai and at 
 Mahindra World City, Chengalpattu, Kancheepuram District.
 
 Rupee Term Loans
 
 Exclusive charge on specific plant and machinery and other movable
 assets situated at the Company’s plant at Mahindra World City -
 Chengalpattu, Kancheepuram District, at Padi, Chennai and at
 Belagondapalli, Hosur, Krishnagiri Disctrict.
 
 Working Capital Facilities
 
 First charge by way of hypothecation of current assets viz., stocks of
 raw materials, stock in process, semi finished and finished goods,
 stores and spares not relating to plant and machinery, (consumable
 stores and spares), bills receivable and book debts and all other
 movables located at the Company’s factories at Padi, Chennai, Mahindra
 World City - Chengalpattu, Kancheepuram District and at Belagondapalli,
 Hosur, Krishnagiri District
 
 5 Contingent liability not provided for
 
 (a) On counter guarantees given to bankers         2,367.42     868.51
 
 (b) On letters of credit opened with bankers      16,723.90  13,194.44
 
 (c) On partly paid shares                              0.04       0.04
 
 (d) Estimated amount of contracts remaining to 
     be executed on capital account                 6,077.77   1,799.77
 
 (e) On guarantees furnished on behalf of  
     employees                                        125.94     126.15
 
 (f) On account of future export obligations 
     (under Export Promotion Capital Goods 
     Scheme)                                        6,822.70   3,998.20
 
 (g) On bills discounted                            2,317.16   1,752.62 
 
 (h) Capital commitment                             8,026.40   9,430.50 
 
 (i) Others                                           767.41     235.45