MIRA INFORM REPORT

 

 

Report Date :

3rd June, 2006.

 

IDENTIFICATION DETAILS

 

Name :

MAHAVIR SPINNING MILLS LIMITED

 

 

Registered Office :

Post Box 105, Chandigarh Road, Ludhiana – 141 010, Punjab, INDIA

 

 

Country :

India

 

 

Financials (as on) :

31.03.2005

 

 

Date of Incorporation :

08.10.1973

 

 

Com. Reg. No.:

16-3345

 

 

CIN No.:

[Company Identification No.]

L17111PB1973PLC003345

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

JLDM03450G

JLDM03167D

 

 

PAN No.:

[Permanent Account No.]

AABCM4692E

 

 

Legal Form :

A Closely Held Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges

 

 

Line of Business :

The company is engaged in Manufacturing and Sale of Cotton Yarn, Acrylic Yarn, Polyester Sewing Threads, Steel, Yarn of Synthetic Staple Fibre, Woven Fabric of Cotton and Alloy Steel Ingots.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 32000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company of Vardhman Group.  Available information indicates high financial responsibility of the company.  Trade relations are reported as fair.  General financial position is satisfactory.

 

Payments are reported as correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office :

Post Box 105, Chandigarh Road, Ludhiana – 141 010, Punjab, INDIA

Tel. No.:

91-161-2662543-47 / 2670707 / 09

Fax No.:

91-161-2662542 / 2664541 / 2670503 / 2601040 / 2601048 / 2602710

E-Mail :

vssidh@rnj.sprintrpg.ems.vsnl.net.in

secretarial.lud@vardhaman.com

Website :

www.vardhman.com

 

 

Factories  :

Phagwara Road, Hoshiarpur – 146 001, Punjab

 

gassed mercerised yarn unit

Phagwara Road, Hoshiarpur – 146 001, Punjab

 

dyeing &  finishing – perundurai unit

Plot No. E – 13 & H – 10, Sipcot Industrial Growth Centre, P. V. Palayam (P. O.), Perundurai – 638 052

 

arihand spinning mills

Industrial Area, Malerkotla – 148 023, Sanazur, Punjab

 

anant spinning mills

New Industrial Area, Mandideep – 462 046, Madhya Pradesh

vardhman special steels

C-58, Focal Point, Ludhiana – 141 010, Punjab

 

sewing thread – unit ii

Phase VIII, Focal Point, Ludhiana – 141 123, Punjab

 

ARISHT SPINNING MILLS,

(DTA-I, II & 100% EOU),

BADDI

 

AURO SPINNING MILLS, BADDI, Teh. Nalagarh, District Solan – 173 205

 

AURO DYEING , BADDI, Teh. Nalagarh, District Solan – 173 205

 

AURO WEAVING MILLS, BADDI, Teh. Nalagarh, District Solan – 173 205

 

AURO TEXTILES, BADDI, Teh. Nalagarh, District Solan – 173 205

 

MAHAVIR SPINNING MILLS LIMITED,

(Gassed Mercerised Yarn Unit),

Phagwara Road, Hoshiarpur – 146 001

 

MAHAVIR SPINNING MILLS LIMITED,

Phagwara Road, Hoshiarpur – 146 001

 

MAHAVIR SPINNING MILLS LIMITED,

(Dyeing & Finishing-Perundurai Unit),

Plot No. E-13, & H- 10, SIPCOT, Industrial Growth Centre, P. V. Palayam Perundurai – 638 052

 

MAHAVIR SPINNING MILLS LIMITED,

(Sewing Thread, Unit-ll),

Phase – VIII, Focal Point, Ludhiana – 141 123.

 

VARDHMAN SPINNING AND GENERAL MILLS,

(UNIT-I & II), LUDHIANA

 

VARDHMAN SPINNING AND GENERAL MILLS,

(100% EOU), BADDI

 

 

Branches :

v      30 & 33, Shri Krishna Centre, 1st Floor, Near Mithakhali Six Road,

      Navrang Pura, Ahmedabad-380 009

 

v      No. 15, H. Siddiah Road, Bangalore-560 027

 

v      S.C.O.1,2 & 3, Sector-17B, Chandigarh-160 017

 

v      36/2303, D & K, Ammankovil Road, Ernakulam (Cochin)-682 035

 

v      832, Phase-V, Udyog Vihar, Gurgaon-122 016

 

v      3-6-270/2, Himayat Nagar, Opposite Telugu Academy, Hyderabad-580 029

 

v      Plot No.141, Pipila Road, A.B. Road, lndore-452 001

 

 

v      B-34, Sangam Bhawan, Vijay Path, Titek Nagar, Jaipur-302 004

 

v      84/55, G.T. Road, Near Zarib Chowki, Next to Bankey Bihari Dham Banquet Hall, Kanpur-208 003

 

v      P-22, 3rd Floor, Flat No. 6, C.I.T. Road, Scheme-IV, Kolkata-700 014

 

v      55, Canal East Road, Belighatta, Kolkata-700 085 Chandigarh Road, Ludhiana-141 010

 

v      314, Solaris-ll, Opp. L&T Gate No. 6, Saki Vihar Road, Andheri (East), Mumbai-400 072

 

v      Solaris-ll, Universal Industrial Estate, Gala Number G-7 To G-14 & B-12 to B-14, Saki Vihar Road, Andheri (East), Mumbai-400 072

 

v      C-40 & 42, Okhla Industrial Area, Phase-ll, NewDelhi-110020

 

v      212, Deen Dayal Upadhyaya Marg, Urdu Char, 1st Floor, New Delhi-110 002

 

v      5th Floor, Plot No. 19, Sagar Plaza Building, Laxmi Nagar, District Centre, New Delhi-110 092 ,

 

v      310, Surya Kiran Building, 19, Kasturba Gandhi Marg, New Delhi-110 001

 

v      B-47, Sector-6, Noida-201 301

 

v      Mezzanine Floor, Abhishek Plaza, Exhibition Road, Patna-800 001

 

v      Realty Warehousing, Gat No. 2323/1, Wagholi, Pune-411 014

 

v      Jyoti Sangam Lane, Upper Bazar, Ranchi-834 001

 

v      No-40-LRG Layout, Narayan Knitting Mills Compound, Kongu Nagar Extension, Tirupur-638 607

 

v      377-B, Muthuswami Industrial Complex, Palladam Road, Tirupur

 

DIRECTORS

 

Name :

Mr. Shri Paul Oswal

Designation :

Executive Chairman & Managing Director

Age:

63years

Qualification:

M. Com.

Experience:

38 years

Date of Appointment:

01.11.2001

 

 

Name :

Mr. Darshan Lal Sharma

Designation :

President & Executive Director

 

 

Name :

Mr. Tilak Raj Bajalia

Designation :

Nominee Director of IDBI

 

 

Name :

Mr. Vinod Kumar Saxena

Designation :

Nominee Director of IDBI

 

 

Name :

Mr. Ajay Kumar Chakraborty

Designation :

Nominee Director of ICICI

 

 

Name :

Mr. Yesh Pal Gupta

Designation :

Nominee Director of UTI

 

 

Name :

Mr. Dr. Jagdish Chander Bakshi

Designation :

Director

 

 

Name :

Mr. Prafull Anubhai

Designation :

Director

 

 

Name :

Mr. Dr. Triloki Nath Kapoor

Designation :

Director

 

 

Name :

Mr. Sachit Jain

Designation :

Executive Director

Age:

39 Years

Qualification:

B. Tech., MBA

Experience:

15 Years

Date of Appointment:

30.03.2005

 

 

Name :

Mrs. Suchita Jain

Designation :

Executive Director

Age:

37 Years

Qualification:

M. COM

Experience:

12 Years

Date of Appointment:

30.03.2005

 

 

Name :

Mr. Subash Khanchand Bijlani

Designation :

Director

 

 

Name :

Mr. Vipin Gupta

Designation :

Company Secretary

 

BUSINESS DETAILS

 

Line of Business :

The company is engaged in Manufacturing and Sale of Cotton Yarn, Acrylic Yarn, Polyester Sewing Threads, Steel, Yarn of Synthetic Staple Fibre, Woven Fabric of Cotton and Alloy Steel Ingots.

 

 

Products :
Item Code No.
Product Description

52.05

Cotton Yarn

54.01

Polyester Sewing Thread

55.09

Yarn of Synthetic Staple Fibre

52.08

Woven Fabric of Cotton

72.06

Steel

 

 

Exports to :

20 countries including Hong Kong, Japan, South Korea, Australia, New Zealand, Europe and others.

 

 

Imports from :

Germany

 

 

Terms :

 

Selling :

 

 

 

Purchasing :

L/C terms

 

PRODUCTION STATUS

 

Particulars

Unit

Installed Capacity

Actual Production

Yarn #

MT

NA

30532

Sewing Thread

MT

NA

5202

Steel Ingots / Billets

MT

100000

52613

Rolled Products

MT

40000

48990

End Cutting / Misroll

MT

NA

2312

Oxygen Gas

Cu. M.

2450000

1638015

Spindles

No.

243640

NA

 

GENERAL INFORMATION

 

No. of Employees :

1000

 

 

Bankers :

v      Bank of Baroda, Ludhiana, Punjab

v      State Bank of Patiala

v      Punjab National Bank

v      Union Bank of India

v      State Bank of India

v      Bank of America

v      Bank of Baroda

v      Allahabad Bank

v      Deutsche Bank

v      BNP Paribas

v      Canara Bank

v      Corporation Bank

 

 

 

Facilities :

Secured Loan

Amount (in millions)

40 (Previous Year 40) ,8.49% Secured Redeemable

Non Convertible Debentures of Rs. 7.5000  Millions each

(Previous Year Rs. 10.000 Millions each)

 

300.000

25 (Previous Year 25) ,12.10% Secured Redeemable

Non Convertible Debentures of Rs. 10.000 Millions each

(Previous Year Rs. 10.000 Millions each) .

250.000

25 (Previous Year 25) ,7.90% Secured Redeemable

Non Convertible Debentures of Rs. 10.000 Millions each

(Previous Year Rs. 10.000 Millions each)

250.000

 

 

Term Loans

 

From Banks

3559.826

From Others

210.000

 

 

Working Capital Borrowings from Banks

2142.600

 

 

Interest accrued and due

2.579

 

 

Unsecured Loan

 

Fixed Deposits

39.428

Short Term Loan and Advances

 

From Banks

630.000

From Others

111.222

 

 

Interest accrued and due

0.162

 

 

TOTAL:

7495.817

 

 

 

 

Banking Relations :

Good

 

 

Auditors :

S C Vasudeva & Company, New Delhi

Qualification:

Chartered Accountants

 

 

Branch Auditors :

S. S. Kothari & Company, New Delhi

Qualification:

Chartered Accountants

 

 

Associates :

Marubeni Corporation

Marubeni Textile Asia Limited

Vardhman Textile Components Limited

Vardhman Spinning & General Mills Limited

Vardhman Polytex Limited

 

 

Subsidiaries:

v      VMT Spinning Company Limited

      Chandigarh Road, Ludhiana – 141 010, Punjab

     The company started its commercial production on 21st September,             

      1996.

v      Vardhman Acrylics Limited

      Chandigarh Road, Ludhiana – 141 010, Punjab

 

v      Vardhaman Threads Limited

      Chandigarh Road, Ludhiana – 141 001, Punjab

 

v      VKM Colourspin Limited

      Chandigarh Road, Ludhiana – 141 001, Punjab

 

 

Other Companies:

v      Vardhman Spinning and General Mills Limited

v      Banarso Devi Oswal Public Charitable Trust

v      Adinath Investment & Trading Co.

v      Srestha Holdings Limited

v      Flamingo Finance & Investment Co. Limited

v      Marshall Investment & Trading Co. (P) Limited

v      Plaza Trading Co. (P) Limited

v      Anklesh Investments (P) Limited

 

v      Vardhman Apparels Limited

v      Sri Aurobindo Socio Economic and Research

v      Management Institute

v      Devakar Investment & Trading Co. (P) Limited

v      Santon Finance & Investment Co. Limited

v      Ramaniya Finance & Investment Co. Limited

v      Pradeep Mercentile Co. (P) Limited

v      Vardhman Textile Processors (P) Limited

v      Syracuse Investment & Trading Co. (P) Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

4,00,00,000

Equity Shares

Rs. 10/- each

Rs. 400.000 Millions

1,00,00,000

Redeemable Cumulative Preference Shares

Rs. 10/- each

Rs. 100.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

2,57,49,954

Equity Shares

Rs. 10/- each

Rs. 257.499 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

257.495

257.495

2] Equity share capital pending allotment pursuant

    to the scheme of 'Arrangment and Demerger'

 

127.631

0.000

3] Reserves & Surplus

 

7618.116

4747.928

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

8003.242

5005.423

LOAN FUNDS

 

 

 

1] Secured Loans

 

6715.005

4695.191

2] Unsecured Loans

 

780.812

478.840

TOTAL BORROWING

 

7495.817

5174.031

DEFERRED TAX LIABILITIES

 

959.000

536.654

 

 

 

 

TOTAL

 

16458.059

10716.108

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

7575.726

4267.908

Capital work-in-progress

 

511.400

89.344

 

 

 

 

INVESTMENT

 

957.091

963.900

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

5269.330

4010.995

 

Sundry Debtors
 

2084.173

1315.664

 

Cash & Bank Balances
 

227.243

180.758

 

Other Current Assets
 

0.000

0.000

 

Loans & Advances
 

1298.413

724.053

Total Current Assets
 

8879.159

6231.470

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

1251.848

714.414

 

Provisions
 

213.469

122.100

Total Current Liabilities
 

1465.317

836.514

Net Current Assets
 

7413.842

5394.956

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

16458.059

10716.108

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2005

31.03.2004

Sales Turnover [including other income]

 

18781.070

10957.082

 

 

 

 

Profit/(Loss) Before Tax

 

1596.715

823.532

Provision for Taxation

 

389.113

221.883

Profit/(Loss) After Tax

 

1207.602

601.649

 

 

 

 

Export Value

 

4130.755

2769.085

 

 

 

 

Import Value

 

1642.766

907.110

 

 

 

 

Total Expenditure

 

17184.355

10133.550

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

 

 

31.03.2006

(Full Year)

Sales Turnover

 

 

1,889.16

Other Income

 

 

48.43

Total Income

 

 

1,937.59

Total Expenditure

 

 

1,546.17

Operating Profit

 

 

391.42

Interest

 

 

39.49

Gross Profit

 

 

351.93

Depreciation

 

 

101.34

Tax

 

 

58.02

Reported PAT

 

 

196.32

Dividend (%)

 

 

40.00

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2005

31.03.2004

Debt-Equity Ratio

 

0.98

1.03

Long Term Debt-Equity Ratio

 

0.59

0.63

Current Ratio

 

1.53

1.49

TURNOVER RATIOS

 

 

 

Fixed Assets

 

1.70

1.48

Inventory

 

4.16

3.24

Debtors

 

11.36

10.12

Interest Cover Ratio

 

3.70

3.05

Operating Profit Margin(%)

 

16.34

15.52

Profit Before Interest And Tax Margin(%)

 

11.32

10.60

Cash Profit Margin(%)

 

11.28

10.12

Adjusted Net Profit Margin(%)

 

6.25

5.21

Return On Capital Employed(%)

 

17.12

12.64

Return On Net Worth(%)

 

18.75

12.61

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

 

Subject was originally established in the 1966 at Ludhiana in Punjab and converted into Joint Stock Company with effect from 8th August, 1973 having Company Registration No. 3345.

 

Subject was promoted by Vardhman Spinning and General Mills and is managed by Chairman Paul Oswal. The first plant was commissioned in 1975 with 25,088 spindles in Hoshiarpur, Punjab.  

 

In 1977-78, the company set up a 25,000-spindle textile mill at Malerkotla in Sanazur, Punjab. MSML is into the spinning of cotton, staple, acrylic and acetate yarn and sewing thread. The company took over an ailing mini-steel plant and renamed it Vardhman Steels. It exports yarn to 20 countries including Hong Kong, Japan, South Korea, Australia, New Zealand, Europe and others.

 

In 1992-93, the company commissioned a 100% EOU at Mandideep. The EOU at Mandideep and the spinning unit at Malerkotla were awarded the ISO 9002/BIS 14002 by Bureau of Indian Standards (BIS). Its gassed and mercerised dyed yarn project at Hoshiarpur commenced commercial production in March, 1995. The company has entered into a joint venture agreement with Marubeni Corporation and Toho Rayon, Japan, for setting up a 100% EOU at Baddi, Himachal Pradesh, commercial production of this project commenced on September, 1996. During 1998-99, the third 100% EOU at Mandideep with an installed capacity of 25000 spindles, has started commercial production. 


Expansion of Sewing Thread capacity by addition of unit-II at Ludhiana with a capacity of 5 TPD implemented in two phases, the first phase with a capacity of 2.5 TPD has commenced production. Further Unit-V with a capacity of 24192 spindles to produce fine counts meant for Gassed Mercerised Unit started commercial production. 

 
The company is also undertaking expansion and technological upgradation of the existing spinning unit at Malerkotla. To manufacture superior sewing thread under their brands of PERMASPUN, D-CORE and PERMACORE the company has signed an agreement with American & Efird Inc., USA.

 

 

It is in trade terms with :

 

v      Bhagwan Chemicals, Faridabad, Haryana

v      Himalya Phytochemicals, Khanna

v      Joglekar Refractories, Mumbai

v      Shriram Lime Products, Jodhpur

v      Sahni Lines, Kharar

v      S. R. Jindal Metals

 

PROFITABILITY:

 

The Company earned profit before depreciation, interest and tax of Rs. 31,57.745 millions as against Rs. 17,93.649 Millions in the previous year. After providing for depreciation of Rs. 9,70.083 millions (previous year Rs. 5,67.761 millions), provision for current tax Rs. 4,76.000 millions (previous, year Rs. 1,98.200 millions), provision for deferred tax (net of adjustments), Rs. (84.164) millions (previous year Rs.23.683 millions), income tax adjustments for earlier years Rs. (2.723 millions) (previous year nil) the net profit worked out to Rs. 12,07.602 millions as compared to Rs. 6,01.649 millions in the previous

 

SCHEME OF ARRANGEMENT & DEMERGER BETWEEN VARDHMAN SPG. & GEN. MILLS LIMITED AND MAHAVIR SPINNING MILLS LIMITED:

 

During the year, a Scheme of Arrangement and Demerger between Vardhman Spinning and General Mills Limited (VSGM) and Mahavir Spinning Mills Limited (MSML) was formulated. The Scheme was duly approved by the Creditors and Members of the respective companies in their Court convened Meetings held on 11 th December, 2004 and the same was got duly sanctioned by the Hon'ble Punjab & Haryana High Court vide its Order dated 04.03.2005. As per the Scheme, the textile business of VSGM stands vested with your Company w.e.f. 1st April, 2004.

 

Accordingly, the following manufacturing units, belonging to VSGM, now form part of the

Company:-

 

1. Auro Spinning Mills, Baddi.

2. Auro Dyeing, Baddi.

3. Auro Weaving, Baddi.

4. Auro Textiles, Baddi.

5. Vardhman Spinning and General Mills (100% EOU), Baddi.

6. Vardhman Spinning and General Mills (Unit-l), Ludhiana.

7. Vardhman Spinning and General Mills (Unit-ll), Ludhiana.

 

This consolidation of textile business is expected to enhance the shareholders' value and will improve the competitiveness of merged entity. Further, pursuant to the Scheme, the Company has allotted 12,763,064 equity shares of Rs.10/- each to the shareholders of VSGM in the ratio of eight shares for every ten shares of VSGM held as on the "Record Date" fixed by the Company i.e. 22nd April, 2005. Consequent to this allotment, the paid-up equity capital of the Company stands enhanced to Rs. 3,85.130 millions.

 

FIXED ASSETS:

 

Freehold Land, Leasehold Land, Buildings, Plant & Machinery, Furniture & Fixtures And Vehicles. 

 

AS PER WEBSITE:

 

In India, Vardhman is synonymous with threads. Not just threads for clothes, but for furnishings, wallets, hand bags, suitcases, shoes, car upholstery, tents, industrial applications and even kite-flying.

In each case, users' demands differ. Designers expect strength in some threads, strength and finish in another, the qualities of fusion in a third. A leather craftsman expects a completely different combination of attributes. An automobile manufacturer spells out another set of specifications. So does the little boy on the rooftop, the kite flyer.

Reputed manufacturers and buying houses prefer Vardhman because of its unswerving commitment to quality and service. The company fulfils IS/ISO 9001:2000 requirements and the products manufactured are azo free. They meet Oeko-Tex Standard 100 under stringent environmental norms. Sheer technical competence and service makes Vardhman India's one and only flag bearer in threads.

Besides, Vardhman covers vast ground: cotton, polyster, core spun (polyester cotton/ polyester polyester), trilobal embroidery thread, bonded nylon and lubricated nylon thread including specialized threads like button fusing, bead fusing and anti wicking, button shanking, indigo dyed and so on.This enormous collection from Vardhman has a single purpose:

 

v      MISSION:

 

Vardhman aims to be world class textile organization producing diverse range of products for the global textile market. Vardhman seeks to achieve customer delight through excellence in manufacturing and customer service based on creative combination of state-of-the-art technology and human resources.Vardhman is committed to be responsible corporate citizen.

 

v      BUSINESS PORTFOLIO

 

Yarns


Yarn Manufacturing is the major activity of the group accounting for 65 percent of the group turnover. Vardhman is virtually a supermarket of yarns, producing the widest range of cotton, synthetics and blended, Grey and Dyed yarns and Hand Knitting Yarns, in which Vardhman is the market leader in India. The group has nine production plants with a total capacity of over 5.5 lacs spindles, spread all over the country. In many of the yarn market segments, Vardhman holds the largest market share. Vardhman is also the largest exporters of yarn from India, exporting yarns worth more than USD 90 million.

 

  Sewing Thread


Vardhman is the second largest producer of sewing thread in the country. The sewing thread manufacturing capacity is being expanded from present 17 tons per day to 22 tons per day in its sewing thread plants located at Hoshiarpur, Baddi and Ludhiana. Sewing threads contributes 12 percent of the group turnover.

 

  Fabrics


The group has created state-of-the-art fabric weaving and processing facilities in its plant at Baddi, Nothern India. The group has installed 208 shuttleless looms and a fabric processing capacity of 30 million meters per annum in collaboration of Tokai Senko of Japan. Fabrics business contributes 8 percent to the group turnover.

 

  Fibre


The group has recently set up an Acrylic Staple Fibre plant at Bharuch in Gujrat in collaboration with Marubeni and Japan Exlan of Japan. The plant has annual capacity of 18000 tons per annum. Fibre contributes 8 percent to the total turnover of the group.

 

  Steel


The Group is also present in upper-end of the steel industry. The group has manufacturing capacity of 100000 tons of special and alloy steel. The group supplies its steel products to some of the most stringent quality steel buyers like Maruti and Telco. It contributes 6 percent to the total turnover of the group.

 

 

v      BRIEF HISTORY:

 

The industrial city of Ludhiana, located in the fertile Malwa region of Central Punjab is otherwise known as the "Manchester of India". Within the precincts of this city is located the Corporate headquarters of the Vardhman Group, a household name in Northern India. The Vardhman Group, born in 1965, under the entrepreneurship of Late Lala Rattan Chand Oswal has today blossomed into one of the largest Textile Business houses in India.

At its inception, Vardhman had an installed capacity of 14,000 spindles, Today, its capacity has increased multifold to over 5.5 lacs spindles. In 1982 the Group entered the sewing thread market in the country which was a forward integration of the business. Today Vardhman threads is the second largest producer of sewing thread in India. In 1990, it undertook yet another diversification - this time into the weaving business. The grey fabric weaving unit at Baddi (HP), commissioned in 1990 with a capacity of 20,000 meters per day, has already made its mark as a quality producer of Grey poplin/sheeting/shirting in the domestic as well as foreign market. This was followed by entry into fabric processing by setting up Auro Textiles at Baddi, which currently has a processing capacity of 1 lacs metres/day.


In the year 1999 the Group has added yet another feather to its cap with the setting up of Vardhman Acrylics Ltd., Bharuch (Gujarat) which is a joint venture in Acrylic Fibre production undertaken with Marubeni and Exlan of Japan. The company also has a strong presence in the markets of Japan, Hongkong, Korea, UK and EU in addition to the domestic market. Adherence to systems and a true dedication to quality has resulted in obtaining the coveted ISO 9002/ ISO 14002 quality award which is the first in Textile industry in India and yet another laurel to its credit.

 

v      TECHNICAL SERVICE CELL:

In the rapidly changing business & technological scenario, it is important for specialist support in different area of manufacturing. At Vardhman we endeavor to fulfill these roles by providing a well-structured and systematic approach for identifying customer needs and translating the same into products characteristics.

Shop Floor Studies:

 

Shop floor studies are carried out by qualified textile technologist for assessing thread performance and relative productivity differentials in using different types of threads.

For enhancing of stitching room performance w can also undertake specific projects for achieving higher productivity, reducing wastage, thread calculation etc.

 

Technical Seminars

 

Thread Education Seminars are part of our value added services, during this class room study we talk of importance of using a right quality of thread, different application of thread for different fabric and sewing applications, and solutions for problems faced during sewing operations like Puckering/skip stitches/thread breakages/seam slippage.

 

Thread Recommendation

 

Thread advisory reports is the key feature of our value added services. After analyzing in our Research and Development laboratory we provide thread recommendation for any type of fabric.

 

Thread Consumption

 

Our team of experts studies the garment and can tell you the actual thread consumed per garment.

 

 

v      APPAREL:

KNITS

CORESPUN THREADS

 

DURO SOFT / D-CORE (A&E)

Duro Soft is a high quality extra long cotton staple fiber wrapped core spun thread with a core of continuos filament polyester yarn. The polyester core provides the strength while the softness of cotton cover provides very good sewing performance.

Applications
All Knit wear

SizesAvailable


Tex 18, 24, 40, 60, 80, 90, 105, 120, 150, 180, 220.

 

DURO POLY / PERMA CORE(A&E)

Duro Poly is a super high tenacity, minimal elongation polyester staple fiber wrapped core spun thread with a core of continuos filament polyester yarn. The Filament polyester core provides the strength while the spun polyester cover gives excellent sewability.

Applications
All Knit wear

Sizes Available
Tex 18, 21, 24, 30, 40, 60, 80, 90, 105, 120, 150, 180

 

SPUN THREADS

TORA - 3 + POLY / PERMA SPUN (A&E)

Made from 100 % spun polyester thread, manufactured from high tenacity Polyester fiber which has been lubricated to withstand high speed sewing operations.

Applications
All Knit Wear

Sizes Available
Tex 18, 21,24, 27, 30, 35, 40, 45, 50, 60, 70, 80, 90, 105,120, 180

 

COTTON THREADS

SUPERSEAM

Superseam is a 100 % extra long staple mercerized cotton thread. This product is gassed to provide a smooth surface and lubricated for better sewability where as mercerization process gives extra strength and lustre.

Application
Sewing of cotton garments.

Sizes Available
Tex 35

Sizes Available
Denier 150, 300

 

TEXTURISED THREAD

SOFF

Soff is a continuos filament Polyester Texturised thread. It provides with better stretch on the seams and gives a very soft feel. It can be used on Overlocking and Cover seaming machines as a looper thread.

Application
Lingerie, Swimwear, Knitwear, Babywear

Sizes Available
Denier 150, 300

SOFF NYLON

Soff Nylon is a Nylon Texturised thread meant to be used on Overlocking and Cover Seaming Machines as looper thread. It provides with more elasticity on the seams and gives a very soft feel when the seam comes in contact with the skin.

Applications
Lingerie,Swimwear,Knitwear,Babywear,Athletic wear

Sizes Available
Denier 150, 300

 

WOVEN

 

CORESPUN THREADS

 

Duro Soft is a high quality extra long cotton staple fiber wrapped core spun thread with a core of continuos filament polyester yarn. The polyester core provides the strength while the softness of cotton cover provides very good sewing performance.

Applications
All Woven garments

Sizes Available
Tex 18, 24, 40, 60, 80, 90, 105, 120, 150, 180, 220.

DUROPOLY/PERMA CORE(A&E)

Duro Poly is a super high tenacity, minimal elongation polyester staple fiber wrapped core spun thread with a core of continuos filament polyester yarn. The Filament polyester core provides the strength while the spun polyester cover gives excellent sewability.

Applications
All Woven garments

Sizes Available
Tex 18, 21, 24, 30, 40, 60, 80, 90, 105, 120, 150, 180

SPUN THREADS

TORA - 3 + POLY / PERMA SPUN (A&E)

 Made from 100 % spun polyester thread, manufactured from high tenacity Polyester fiber which has been lubricated to withstand high speed sewing operations..

Applications
All Woven Garments

Sizes Available
Tex 18, 21,24, 27, 30, 35, 40, 45, 50, 60, 70, 80, 90, 105,120, 180


COTTON THREADS

SUPERSEAM

Superseam is a 100 % extra long staple mercerized cotton thread. This product is gassed to provide a smooth surface and lubricated for better sewability where as mercerization process gives extra strength and lustre.

Application
Sewing of cotton garments.

Sizes Available
Tex 35

 

DENIM

 

Denim, denotes a rugged cotton twill textile, in which the weft passes under two or more warp fibers, producing the familiar diagonal ribbing identifiable on the reverse of the fabric, which distinguishes denim from cotton duck. Denim was traditionally colored blue with indigo dye to make blue "jeans," though "jean" denoted a different, lighter cotton textile.


CORESPUN THREADS

 

DURO SOFT / D-CORE (A&E)

 

Duro Soft is a high quality extra long cotton staple fiber wrapped core spun thread with a core of continuos filament polyester yarn. The polyester core provides the strength while the softness of cotton cover provides very good sewing performance.

 

Applications
Denim Shirts, Pants, Dresses, Kidswear

 

Sizes Available
Tex 60, 80, 90, 105, 150, 120, 180, 220.

 

DURO POLY / PERMA CORE (A&E)

 

Duro Poly is a super high tenacity, minimal elongation polyester staple fiber wrapped core spun thread with a core of continuos filament polyester yarn. The Filament polyester core provides the strength while the spun polyester cover gives excellent sewability.

 

Applications
All Denim apparel

 

Sizes Available
Tex 60, 90, 80, 105, 120, 150 , 180


SPUN THREADS

 

TORA - 3 + POLY / PERMA SPUN (A&E)

Made from 100 % spun polyester thread, manufactured from high tenacity Polyester fiber which has been lubricated to withstand high speed sewing operations..

 

Applications
All denim wear

 

Sizes Available
Tex 50, 60, 70, 80, 90, 105,120, 180

 

OVERDYED

CHROMA

 

 

Chroma is a 100 % mercerized cotton thread meant for garments which are to be Overdyed. Chroma provides with better strength as compared to normal cotton threads and also gives better dye affinity.

 

Applications
RFD Garments

 

Sizes Available
Tex 27, 40, 60, 70, 105, 120

 

SPECIAL APPLICATION THREADS

FUSER

Fuser is a Poly Poly Corespun thread with a Fusible coating. This product is meant for attachment of beads, sequins and buttons. When heat is applied the coating melts and fuses the knots thus securing the attachment.

 

Sizes Available
Tex 24 , 40

 

 

TAURUS

Taurus is a continous filament polyester thread. Dtex 120 & Dtex 80 can be used for fine Blind Hemming.

 

FOOTWEAR
LEATHER GARMENTS
LEATHER ACCESSORIES
AUTOMOTIVE SEATING AND UPHOLSTERY
LUGGAGE
MATTRESS AND QULITING
SADDLERY INDUSTRIAL
FILTER
COMPRESSOR
WINDING CURTAIN AND TENTS
BOOK BINDING

 

 
Application

Segment

Category

Suggested Brand/Ticket

FOOTWEAR

PREMIUM LEATHER

MASTER 60,40,20

TEACHER 60,40,20

FOOTWEAR

ECONOMY LEATHER

RANGER 60,40,20

LINKER 60,40,20

FOOTWEAR

CANVAS

TAURUS 60,40,20

 

FOOTWEAR

SOLE STITCHING

MASTER 8 ,7

RANGER 8 ,7

APARRELS

LEATHER

DUROGLACE 75,50,36

 

ACCESSORIES

LEATHER

DUROGLACE 75,50,36

RANGER 60,40

AUTOMOTIVE

UPHOLSTERY

MASTER 60,40,20

TEACHER 60,40,20

LUGGAGE

SOFT

LINKER 40,30,20

 

LUGGAGE

HARD

MASTER 40,30,20

RANGER 40,30,20

MATTRESS AND QUILTING

 

TAURUS 60,40

LINKER 60,40

SADDLERY

 

DUROGLACE 25,15

 

OUTDOOR APPLICATION

 

LINKER 40,20,15

 

FILTER CLOTH

 

TEACHER 40

LINKER 40

COMPRESSOR WINDING

 

TAURUS 8

MOX 1.0MM

CURTAIN AND TENTS

 

LINKER 40

 

BOOK BINDING

 

DUROGLACE 15

 

 

BONDED NYLON 6.6 THREADS

 

MASTER

MASTER is produced from high tenacity continuous filament Nylon 6.6 . The thread goes through specially formulated bonding process which ensures that the twisted plies stay together even during multidirectional sewing . Master Provides very high strength combined with exceptional abrasion resistance. It is completely rot proof , has a high resistance to alkalis and is stabilized for maximum sewing performance . Its excellent strength and recovery properties, together with its lustrous appearance, make it one of the most versatile threads available.


Thread Construction : TWISTED MULTIFILAMENT


Substrate : Nylon 6.6


Finish : Bonded


Suggested Key Uses


Premium leather footwear , Leather Goods , Shoe uppers , Auto motive Upholstery , belts , Luggage , Hand Bags, Golf bags , Industrial Filters. Tickets Available : 7 , 8 , 10, 13, 15, 20, 30, 40, 60, 80

 

LUBRICATED NYLON 6.6 THREADS

 

TEACHER

TEACHER is produced from high tenacity continuous filament Nylon 6.6 . After twisting and dyeing , a specially formulated lubricant is applied to the thread to give excellent sewing characteristics. TEACHER has a high tensile strength and is completely rot proof . It has high resistance to alkali and stabilized for maximum sewing performance.


Thread Construction : TWISTED MULTIFILAMENT


Substrate : Nylon 6.6


Finish : Lubricated


Suggested Key Uses
Premium leather footwear , Leather Goods , Shoe uppers , Auto motive Upholstery , belts , Luggage , Hand Bags, Golf bags , Industrial Filters. Tickets Available : 8 ,10 ,15 ,20 ,30 ,40 ,80 , 120

 

BONDED NYLON 6 THREADS

 

RANGER

RANGER is produced from high tenacity continuous filament Nylon 6.6 . The thread goes through specially formulated bonding process which ensures that the twisted plies stay together even during multidirectional sewing .It has a high resistance to alkalis and is stabilized for maximum sewing performance .bonding also gives good resistance to abrasion.


Thread Construction : TWISTED MULTIFILAMENT


Substrate : Nylon 6


Finish : Bonded


Suggested Key Uses


Economy leather shows , Protective footwear , Handbags , Automotive seats , Seat Belts , Collar linking (Hosiery) , Luggage , Leather goods ,upholstery , mattresses. Tickets Available : 7, 15, 20, 30, 40, 60

 

LUBRICATED NYLON 6 THREADS

 

LINKER

LINKER is produced from high tenacity continuous filament Nylon 6 . After twisting and dyeing , a specially formulated lubricant is applied to the thread to enable good loop formation and stitch locking operation. It has a high resistance to alkalis and is pre - stabilized for better sewing performance.


Thread Construction : TWISTED MULTIFILAMENT

 
Substrate : Nylon 6


Finish : Lubricated


Suggested Key Uses


Economy leather shows , Protective footwear , Handbags , Automotive seats , Seat Belts , Collar linking (Hosiery) , Luggage , Leather goods ,upholstery , mattresses. Tickets Available :
10, 15, 20, 30, 40, 60

 

LUBRICATED POLYESTER THREADS

 

TAURUS

TAURUS is manufactured by twisting continuous filament polyester and its controlled elongation gives excellent sewing properties , resistance to abrasion and good UV resistance .After twisting and dyeing , a specially formulated lubricant is applied to the thread to give excellent sewing characteristics


Thread Construction : TWISTED MULTIFILAMENT


Substrate : Polyester


Finish : Bonded / Lubricated


Suggested Key Uses


Canvas Shoes , Soft luggage , Upholstery , Yacht Sails , Tents , Canopies , Leather goods ,mattresses , Zips .


Tickets Available : 5 , 8 , 20 , 30,10 ,13 ,40 , 20, 60, 180

 

BRAIDS (POLYESTER)

MOX

MOX is manufactured by braiding continuous filament polyester , and is produced in an extensive range of sizes . MOX construction is important in applications where appearance matters . It is also used in high strength applications and for decorative stitching . Mox threads , after braiding and dyeing , are either lubricated for machine sewing applications or are evenly waxed for hand sewing.


Thread Construction : BRAIDED FILAMENT


Substrate : Polyester


Finish : Lubricated / Waxed


Suggested Key Uses
Decorative stitching , sole stitching , parachutes , stator binding , Venetian blinds , welt stitching .


Tickets Available : 0.6mm , 0.8mm , 1.0mm , 1.2mm , 1.4mm

 

POLYESTER COTTON CORESPUN

DURO

DURO (Glaced) yarn is produced by spinning a sheath of cotton around a core of Continuous high quality polyester filament . Its stretch and recovery properties make it indispensable for stretch seams , Duro glace combats needle heat in sewing and is an excellent multipurpose thread. Special glace finish gives the thread the much desired lustre abd shine for leather garments.


Thread Construction : CORE SPUN


Substrate : Poly Cot


Finish : Glaced (Polished)


Suggested Key Uses
Leather garments , leather accessories , Gloves , Saddlery and Harness , Golf Bags and Hand bags .


Tickets Available : 15 ,25 ,36 ,50 , 75 ,120

 

OTHER SPECIALITY THREADS

 

MACHINERY EMBROIDERY:

 

Polymerised
Metallic
Specials
Cotton

 

v      POLYMERISED

 

PRIDE

 

Pride is a 100 % Trilobal polyester continous filament thread ideally suited for embroidery on high speed machines.It offers sparkling lustre and enhanced productivity due to low breakages. The dye fastness rating is also very good.


Application
Embroidery on logos, garments, Upholstery, Home Furnishing


Sizes Available
Tex 27

 

v      METALLIC

 

EUREKA METALL

 

Eureka metall is a metallic embroidery thread with a nylon core and a metallised foil cover. A special lubrication ensures proper running of the thread on high speed machines. Available in 36 colours including Gold and Silver.


Application
All kinds of Embroidery with metallic look


Sizes Available
Tex 27

 

v      SPECIALS

 

PUFF

Puff is a 100 % Acrylic thread, which is ideal for raised effect embroidery. It can be used on Multi head machines as well as manual machines


Application
Embroidery on all types of fabric for raised effect with Matt finish.


Sizes Available
Tex 70

 

PUFF WOOL

Puff wool is composed of 50 % Wool and 50 % Acrylic. Embroidery done with Puff Wool gives a raised and wool effect.


Application
Embroidery on all types of fabric for raised effect.


Sizes Available
Tex 60

 

MULTI COLOUR

Multi Colour or better known as space dyed is a combination of two or more colours in the same thread. PRIDE offers multi colour threads in a combination of two or four colours. It is available in Tex 27.

 

v      COTTON EMBROIDERY THREADS

 

SUPERSEAM

Superseam is a 100 % extra long staple mercerized cotton thread. Its available in Tex 35.

 

 

SCHIFFLI / LACE:

 

Embroidery, the art of forming attractive designs with hand or machine needlework, has been around virtually as long as clothing itself.

Schiffi embroidery is a single needle and single/multi head machine embroidery. Both mercerized cotton as well as staple polyester fibers is used to manufacture this thread. It gives excellent resistance to heat and organic solvent and good resistance to alkalis but sensitive to acdis.

Application:
All Kinds of Embroidery with Lock stitch.

Top Thread (Cotton)
Tex Sizes Available: 14, 18, 27, 35, 60, 80, 105, 120

Bobbin Thread (Polyester)
Tex Size Available: 16, 18

 

HAND EMBROIDERY

 

People have always found deep personal pleasure and sense of satisfaction in creating articles of daily use and artistic works from basic equipment and materials. One of the crafts practiced since times immemorial is needlecraft and embroidery - the urge to create with colourful threads. Embroidery was used in Ancient Egypt to decorate the hems of royal robes, in tapestries in the Middle Ages, and in ladies' samplers during the Colonial and Victorian eras. It continues as an art form today.

 

Hand embroidery is used to decorate wall hangings, pillowcases, quilts and table runners. Hand embroidery differs from counted cross stitch in that it uses many different types of stitches to achieve texture and interest, whereas counted cross stitch uses a single stitch and relies on color and shading for texture. Five stitches form the basis for hand embroidery. The stitches are outline, satin, lazy daisy, cross and French knot.

 

Hand embroidery is a beautiful art that almost anyone can learn. It is an art that should be preserved and well worth learning. The hand embroidery market in India is segmented into three segments.

 

Premium Embroidery Threads
Popular Embroidery Threads
Crochet Threads

 

USAGE OF HAND EMBROIDERY THREAD

 

PRODUCTS

 

v      Magika, Premium Embroidery

 

Threads

 

To satisfy your creative urge to create exquisite designs with colourful threads, we created MAGIKA, Premium Embroidery Threads suitable for all kinds of embroidery.

 

MAGIKA (ART J777)

Magika is a brilliant six strand mercerized cotton thread with separable strands, made from Egyptian cotton. It is 100% cotton; double gassed mercerized threads for various embroidery applications.

KEY FEATURES

 

v      Rangoli, Popular Embroidery

 

 Threads

 

RANGOLI (ART J754)

 

Rangoli is a six strand mercerized cotton thread with separable strands. It is 100% cotton; gassed mercerized threads for various embroidery applications.

 

KEY FEATURES

Shade assortments of 50 and 100 skeins are also available

 

v      Crochet Threads

 

RANGOLI - Ball Items

 

A brand recognized for its value for money image. We have under this brand all kinds of ball articles to suit all kinds of hand embroidery applications.

 

RANGOLI E801 Tkt 20 & RANGOLI E802 Tkt 40

KEY FEATURES

 

RANGOLI A805 Tkt 8 Pearl Cotton

KEY FEATURES

 

TAILORING:

 

PREMIUM GENT'S TAILORING SEGMENT

TORA GOLD (B083) - 150 Mts.

KEY FEATURES

Packaging:

 

 

 


READY MADE GARMENT SEGMENT

HAMMER POLY (A023) - 300 Mts.

KEY FEATURES

Packaging:

 

 

 


LADIES TAILORING SEGMENT

HAMMER POLY (A037) - 180 Mts.

KEY FEATURES

Packaging:

 

 


ECONOMY GENTS TAILORING SEGMENT

CHALLENGE (B021) - 130 Mts.

KEY FEATURES

Packaging:

 

 

 

 


HOUSEHOLD SEGMENT (WHITES)

These products are retailed out of Kiryana shops.

 

 

EYEBROW THREADING:

 

Vanity Eyebrow Threading Thread:

 

Vanity was launched in the year 2003 as a specialist eyebrow threading thread.

KEY FEATURES

 

HAND EMBROIDERY

 

People have always found deep personal pleasure and sense of satisfaction in creating articles of daily use and artistic works from basic equipment and materials. One of the crafts practiced since times immemorial is needlecraft and embroidery - the urge to create with colourful threads. Embroidery was used in Ancient Egypt to decorate the hems of royal robes, in tapestries in the Middle Ages, and in ladies' samplers during the Colonial and Victorian eras. It continues as an art form today.

Hand embroidery is used to decorate wall hangings, pillowcases, quilts and table runners. Hand embroidery differs from counted cross stitch in that it uses many different types of stitches to achieve texture and interest, whereas counted cross stitch uses a single stitch and relies on color and shading for texture. Five stitches form the basis for hand embroidery. The stitches are outline, satin, lazy daisy, cross and French knot.

Hand embroidery is a beautiful art that almost anyone can learn. It is an art that should be preserved and well worth learning. The hand embroidery market in India is segmented into three segments.

 

Premium Embroidery Threads

Popular Embroidery Threads

Crochet Threads

 

USAGE OF HAND EMBROIDERY THREAD

PRODUCTS


Magika, Premium Embroidery Threads

 

To satisfy your creative urge to create exquisite designs with colourful threads, we created MAGIKA, Premium Embroidery Threads suitable for all kinds of embroidery.

MAGIKA (ART J777)

 

Magika is a brilliant six strand mercerized cotton thread with separable strands, made from Egyptian cotton. It is 100% cotton; double gassed mercerized threads for various embroidery applications.

KEY FEATURES

 


Rangoli, Popular Embroidery Threads

 

RANGOLI (ART J754)

 

Rangoli is a six strand mercerized cotton thread with separable strands. It is 100% cotton; gassed mercerized threads for various embroidery applications.

 

KEY FEATURES

Shade assortments of 50 and 100 skeins are also available.


Crochet Threads

 

RANGOLI - Ball Items

A brand recognized for its value for money image. We have under this brand all kinds of ball articles to suit all kinds of hand embroidery applications.

 

RANGOLI E801 Tkt 20 & RANGOLI E802 Tkt 40

KEY FEATURES

 

RANGOLI A805 Tkt 8 Pearl Cotton

KEY FEATURES

 

KITE FLYING:

 

Vardhman Threads is one of the leading thread manufacturers in India. We produce a wide range of high quality Kite Flying threads. These products are available in Premium and Popular segments.

The flagship brand in premium segment is Panda, which is available in 6, 9 & 12 ply & tickets 2, 5, 7 & 8. These threads are available in different lengths that can also be tailor made.

Ply

Ticket

Strength

 

 

 

6ply

8

2950g

9ply

2

3175g

9ply

5

3100g

9ply

7

3100g

9ply

8

3650g

12ply

8

3650g

In popular segments there are many products that are available in 2, 3, 4, 6, 9 & 12 ply and tickets 8 & 12 which are custom made products.

 

 

 

 

CMT REPORT [Corruption, Money laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.46.06

UK Pound

1

Rs.85.27

Euro

1

Rs.58.88

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

63

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)                  Ownership background (20%)                         Payment record (10%)

Credit history (10%)                            Market trend (10%)                                             Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions