8/20/2019 Noddy Auto Pvt Ltd Foundry Letter Head

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Dated: 19/01/2016

Our Revival Plans

In continuation of your discussion on TEV study at our plant, ourmanagement as dra!n plan follo!ing strategy to re"i"e companyand its #nancial ealt in tese toug economic circumstances$

1% Te present pro&lem !it te company is:'

a) (nderutili)ation of capacity due to glo&al recession inmanufacturing industries, especially !it automo&ile andInfrastructure industry$ Te company is utili)ing almost**+ of its manufacturing capacity !ile oter areamared for trading is not generating any sales re"enue$

b) -ontinuous De"elopment/ upgradation in "arious productsre.uire continuous infusion of capital$

c) o!er generation of pro#ts due poor demand andcontinuous re.uirement of cas infusion in capitalependitures$ Tis continuous loss due lo!er utili)ationand "arious capital ependitures, a"aila&le !oring capitalgets eroded$

d) iger repayment &urden and ig #nancial cost duringtese recessionary days resulting defaults in meetingrepayment commitments$

2% Revival Plan

a) Restructuring of our nancial liabilities: ' anagementas re.uested &an to restructure te eisting #nancialeposure, so tat te immediate repayment &urden !ill &ereduced and su&stantial repayment !ill &e defer till te timecompany starts utili)ing signi#cant capacity !it &etterutili)ation of !oring capital$ 3an also understood tepro&lem faced &y te company and accepted to considerte re.uest &y te company as per te company4s letterdated 05/11/201*$ -opy of letter attaced$

8/20/2019 Noddy Auto Pvt Ltd Foundry Letter Head

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b) Reduction in working capital loan:' s mentioneda&o"e, te present pro&lem !it te company is erosion/di"ersion in !oring capital in capital epenses and alsomeeting de&t repayments$ ccordingly, management asconsidered maintaining !oring capital limits at optimumle"el considering all factors in mind$ 7e a"e re.uested toreduce !oring capital to 8s$ * -rores from (nited &an of India$

c) Concentrating on regular product and slowing thenew development projects:- anagement reali)es tattaing up "arious ne! de"elopment product re.uirescontinuous infusion of capital and furter delaying teregular operation of company, !ere company can gra&iger &usiness potential !it steady performances$ Terefore management as slo!do!n all maorde"elopment proects and present focus is on &etterutili)ation of capacity !it regular products$

e) allooning repa!ment terms:- anagement and&an as consider  te &allooning repayment term sotat company generates su&stantial re"enue in and&efore te ig repayment commitments gets due$

f) "easing of ideal area for trading operation:-anagement is eploring "arious option to lease outte eisting infrastructure and space of tradingoperation to oter corporate entities$ Tese !ill elpcompany to earn lease rental !itout any signi#cant

cost and also utili)ation of a"aila&le infrastructure,!ic oter!ise as no use for company for net fe!years$