YEAR                       EVENTS
 1985 - The company was incorporated as a private limited company on
 25th
        July, & it was converted into a public limited company on
 24th
        June, 1986.  It was promoted by the Uni-Cardan Group of West
        Germany.  The main objects & activities of the company is
        manufacture of drive axle assemblies including constant
 velocity
        joints.
 
      - The company entered into a technical collaboration agreement
 with
        Uni-Cardan of West Germany (U.C.) for implementation of their
        project for the manufacture of constant Velocity joints &
        connected Shafts.
 
      - Uni-Cardan Invel Beteiligungsgesellschaft mbH, a wholly owned
        subsidiary of U.C. were to participate to the extent of 40%
 in
        the equity capital of the Company.
 
      - International Finance Corporation, Washington (IFC) also
 agreed
        to subscribe upto 20% of the equity share capital of the
 Company
        on a firm allotment basis.
 
      - Constant velocity joints are a superior version of
 conventional
        universal joints and these high precision engineering
 products
        are used in front wheel drive and high performance rear wheel
        drive vehicles.  Drive axles with constant velocity joints
 are
        used in light commercial vehicles and passenger cars like
 Maruti
        car, Maruti Gypsy, Bajaj Tempo, etc.
 
 1988 - The Company entered into an agreement with IFC during June.
 
      - The Company undertook to set up a project for the manufacture
 of
        1,44,000 vehicle sets per annum of constant velocity joints
 for
        use in front wheel drive design vehicles.
 
      - 70 No. of equity shares subscribed for by signatories to
        Memorandum, promoters, directors, etc.  74,99,930 No. of
 equity
        shares issued at par of which 45,00,000 shares reserved and
        allotted on a firm basis as follows: 
 
      - (i) 30,00,000 shares to Un-Carden Invel
 Beteiligungsgesellschaft
        mbH and 
 
      - (ii) 15,00,000 shares to International Finance Corporation,
         Washington, DC, USA.
 
      - Out of the balance of 29,99,930 shares, 3,75,000 shares
 reserved
        for preferential allotment to employees (incl. Indian working
        directors)/workers of the Company (only 3,530 shares taken
 up).
        The remaining 26,24,930 shares together with the unsubscribed
        3,71,470 shares of the employees' quota offered for public
        subscription during July.
 
 1990 - The Company embarked upon expansions of its installed
 capacity
        from 1,05,000 to 1,25,000 vehicle sets.
 
      - In order to keep up with the expansion programmes of Maruti
        Udyog, Ltd. the company proposed to undertake further
 expansion
        of its installed capacity from 1,25,000 vehicle sets to
 2,10,000
        vehicle sets per annum.
 
 1991 - In April, the company received a letter from Maruti Udyog Ltd.
 to
        initiate development activity for axle drives for it's 1000
 cc
        car.
 
 1992 - The Company proposed to double its production capacity of
        1,25,000 car sets within three years and also to provide for
        further increase of 50,000 sets in the 4th year so as to
 reach
        a total of 3,00,000 sets.  This was in view of introduction
 of
        `Zen' car by Maruti Udyog Ltd., and due to demand for
 Company's
        products in the spares market.
 
      - 6,54,000 No. of equity shares allotted on 24.8.92 on
 conversion
        of loans to financial institutions.
 
 1993 - The overall performance was affected by industrial action
        resulting in a 3 week stoppage of production.
 
      - On 14th May, it was proposed to convert interest free
 unsecured
        loan of Rs 1,20,00,000 from Uni-cardan Invel
        Beteiligungsgesellschaft mbH (UCIB) into equity shares of the
        Company, partly at par to restore the shareholding of UCIB to
 the
        original level of 40% and balance at a premium of Rs 5 per
 share.
        Accordingly 9,45,333 fully paid shares of Rs 10 each was
 allotted
        to UCIB on 14th May.
 
 1994 - The Company proposed to further increase the production
 capacity
        to 5,00,000 car sets.
 
      - During July/August, the company offered 18,19,867 No. of
 equity
        shares of Rs 10 each at a premium of Rs 25 per share on right
        basis to the existing shareholders in the ratio of 1:5. 
 (Only
        18,18,867 shares were taken up.  1,000 shares were kept in
        abeyance).
 
 1995 - The Name of the Company proposed to be changed to GKN Invel
 Ltd.
        subject to the approval of the concerned authorities.
 
      - 75,000 No. of equity shares of Rs 10 each at a premium of Rs
        89.57 per share allotted to Sriram Mobiles Ltd., towards part
        consideration for the acquisation of its assets and
 identified
        liabilities.  17,79,861 No. of equity shares of Rs 10 each
 for
        cash at a premium of Rs 89.57 per share were allotted to
        Uni-Cardan Invel Beteiligungsgesellschaft GmbH, Germany (UCIB)
 
        by virtue of which UCIB has increased its shareholding in the
        company to 51%.
 
 1996 - Company had promoted a new Company viz. Drivetech Accessories
 
        Ltd. which became a subsidiary in April.  This Company
 absorbs
        the erstwhile Drivetech unit and will be used for providing
        quality service to car users for inspection and replacement
 of
        drive shafts of cars of all makes.
 
      - As a part of the ongoing expansion programme the installed
        capacity was increased to 3,30,000 vehicle sets per annum
 with
        the commissioning of the Gummidipundi works from April.
 
 1997 - The Company had received ISO 9002 certification for Faridabad
        Works and the Corporate Office in 1997. Now the Company is
        implementing plans for certification to QS 9000 standards for
 all
        three Works and the Corporate Office.  This certification is
        useful for the Company to continue to be suppliers to
        the new international OE manufacturers setting up base in
 India.
 
      - The accounts of the subsidiary Company Drivetech Accessories
 Ltd.
        is attached pursuant to Section 212 (1) of the Companies Act,
        1956.  A statement pursuant to Section 212 (1) (e) of the
        Companies Act, 1956 is also attached as Annexure 1 to this
        report.
 
      - The Company has set up a new unit in Dharuhera (Haryana). 
 The
        commercial production commenced on 14th January. 
 Pre-operative
        expenditure upto the date of commercial production and
 regarded
        as a part of indirect cost incidental and related to
 construction 
        has been allocated to Fixed Assets.
 
 1998 - Sales declined due to severe recession in the Indian Economy
        coupled with continued recession in the automobile industry.
 
      - The Company has been awarded the QS 9000 certification for
 all
        its locations in May which is a prerequisite for being
 suppliers
        to international OE manufacturers.
 
      - The Company has embarked upon a major project for
 implementation
        of an ERP software (BPCS) for achieving integration of its
        operations across all facilities.
 
      - The Company has taken planned initiatives to achieve cost
        competitiveness, quality development capability and customer
        response.
 
      - The Company has also received a certificate required under
 the
        Proviso to Sub-Section (1) of Section 224 of the Companies
 Act,
        1956 from M/s. Lovelock & Lewes, Chartered Accountants, New
        Delhi.
 
      - During the year under review, the captive generation capacity
 of
        the Company had been put to use frequently because of power
        interruptions and cuts at all the three Works.
 
      - The Company received the runner-up award from GKN Group for
        Safety.
 
      - As a part of the GKN Group the Company is involved in a
 project
        for Year 2000 preparedness which would enable the Company to
 do
        business without any interruption from January 1, 2000
 onwards.
 
      - The Company has a major project which covers checking
 compliance
        of in house computer systems, softwares, infrastructure,
 network,
        embedded chips in machines & equipments, suppliers,
 customers,
        agents, utility & service providers.
 
      - Technology for localisation of components on the Hyundai,
 Telco,
        Honda, Ford and Fiat vehicles have been fully absorbed and
        adopted and engineered to suit GKN level's production
 facilities.
 
 1999 - No News.
 
 2000 - Mr John Ian Dickenson has ceased his contract as MD of the
 company with 
              effect from 31st October.
 
            - Mr. S. Ravindran has been redesignated as MD of the
 company from 1st November.
 
 2002-GKN Driveshafts India Ltd has informed BSE that the following
 changes has been taken place in the Board of Directors of the
 Company:
 
 Dr Walter Rohregger has resigned as member of Board of Directors w e
 f September 01, 2002
 
 Mr Engelbert Schwarz has resigned as member of Board of Directors w e
 f September 01, 2002
 
 Mr S Ravindran has ceased his contract as Managing Director of the
 Company w e f September 01, 2002. However he will continue to be
 member of the Board ie non-executive Director.
 
 Mr Mansoor Anwar has been appointed as Managing Director of the
 Company w e f September 01, 2002
 
 Mr KVLN Murty has been appointed as Whole-Time Director of the
 Company w e f September 01, 2002.
 
 2003
 
 --Gkn Driveshafts (India) Limited has changed its name to GKN
 Driveline (India) Ltd.