1. Summary Information

		Country	India
Company Name	VARDHMAN YARNS AND THREADS LIMITED	Principal Name 1	Mr. Shri Paul Oswal
Status	Good	Principal Name 2	Mr. Sachit Jain
		Registration #	16-027936
Street Address	Vardhman Premises, Chandigarh Road, Ludhiana – 141010, Punjab, India
Established Date	04.02.2005	SIC Code	--
Telephone#	91-161-2228943/ 48	Business Style 1	Manufacturing
Fax #	91-161-2601048/ 2602710	Business Style 2	Supply
Homepage	www.vardhman.com	Product Name 1	Threads
# of employees	Not Available	Product Name 2	--
Paid up capital	Rs. 570,064,000/-	Product Name 3	--
Shareholders	Foreign holdings – 49% Bodies corporate – 51%	Banking	State Bank of Patiala
Public Limited Corp.	NO	Business Period	7 Years
IPO	NO	International Ins.	-
Public Enterprise	NO	Rating	Ba (51)
Related Company
Relation	Country	Company Name	CEO
Holding Company	India	Vardhman Textiles Limited	-
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1,364,859,000	Current Liabilities	353,754,000
Inventories	1,259,874,000	Long-term Liabilities	700,101,000
Fixed Assets	1,955,690,000	Other Liabilities	244,978,000
Deferred Assets	0,000	Total Liabilities	1,298,833,000
Invest& other Assets	314,601,000	Retained Earnings	3,026,127,000
		Net Worth	3,596,191,000
Total Assets	4,895,024,000	Total Liab. & Equity	4,895,024,000
Total Assets (Previous Year)	4,503,225,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales	4,261,045,000	Net Profit	492,490,000
Sales(Previous yr)	3,771,510,000	Net Profit(Prev.yr)	413,589,000

MIRA INFORM REPORT

Report Date :

23.06.2012

IDENTIFICATION DETAILS

Name :	VARDHMAN YARNS AND THREADS LIMITED
Registered Office :	Vardhman Premises, Chandigarh Road, Ludhiana – 141010, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.02.2005
Com. Reg. No.:	16-027936
Capital Investment/ Paid-up Capital:	Rs.570.064 Millions
CIN No.: [Company Identification No.]	U17230PB2005PLC027936
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of Manufacturing and Supply Threads.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 14380000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having good track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Vardhman Premises, Chandigarh Road, Ludhiana – 141 010, Punjab, India
Tel. No.:	91-161-2228943/ 48
Fax No.:	91-161-2601048/ 2602710
E-Mail :	sjindal@vardhman.com kwalia@vardhman.com
Website :	www.vardhman.com
Factory 1 :	Phagwara Road, Hoshiarpur, Punjab, India
Factory 2 :	Phase VIII, Focal Point, Ludhiana, Punjab, India
Factory 3 :	Plot No. E-13 and H-IO, SIPCOT Industrial Growth Centre, P.V. Palayam (P.O.), Perundurai, District Erode, Tamilnadu, India
Factory 4 :	Sai Road, Baddi, Tehsil Nalagarh, District Solan, Himachal Pradesh, India
Sales and Services :	Located at: Ahmedabad Bangalore Chennai Delhi Ernakulam Gurgaon Hyderabad Indore Jaipur Kanpur Kolkata Ludhiana Mumbai Noida Patna Pune Tirupur

DIRECTORS

As on: 01.06.2011

Name :

Mr. Shri Paul Oswal

Designation :

Director

Address :

Auro Mirra Bhawan, 2722, Gurdev Nagar, Pakhowal Road, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

08.04.1942

Date of Appointment :

04.02.2005

DIN No.:

00121737

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L17111PB1962PLC002463	VARDHMAN HOLDINGS LIMITED	Director	12-04-71	12-04-71	-	Active	NO
2	L17111PB1973PLC003345	VARDHMAN TEXTILES LIMITED	Managing director	01-06-10	08-10-73	-	Active	NO
3	U33302CH1977PLC003719	KHANNA WATCHES LIMITED	Director	26-07-77	26-07-77	16-03-09	Active	NO
4	L51491PB1990PLC019212	VARDHMAN ACRYLICS LIMITED	Director	24-12-90	24-12-90	-	Active	NO
5	L65921PB1982PLC024886	SANTON FINANCE AND INVESTMENT COMPANY LIMITED	Director	20-04-93	20-04-93	-	Active	NO
6	L65921PB1982PLC024888	FLAMINGO FINANCE AND INVESTMENT COMPANY LIMITED	Director	20-04-93	20-04-93	-	Active	NO
7	U67120PB1980PTC022317	DEVAKAR INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	20-04-93	20-04-93	-	Active	NO
8	U17117PB1990PLC014070	VMT SPINNING COMPANY LIMITED	Director	30-12-93	30-12-93	-	Active	NO
9	U17231PB1994PLC014256	VTL INVESTMENTS LIMITED	Director	23-02-94	23-02-94	-	Active	NO
10	U67120PB1988PTC021770	SYRACUSE INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	01-12-97	01-12-97	-	Active	NO
11	U67120PB1987PTC021772	MARSHALL INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	15-12-97	15-12-97	-	Active	NO
12	U51494PB1987PTC007399	PRADEEP MERCANTILE COMPANY PRIVATE LIMITED	Director	16-12-97	16-12-97	-	Active	NO
13	U51909PB1987PTC007397	PLAZA TRADING COMPANY PRIVATE LIMITED	Director	16-12-97	16-12-97	-	Active	NO
14	U67120PB1981PTC004749	ANKLESH INVESTMENTS PRIVATE LIMITED	Director	16-12-97	16-12-97	-	Active	NO
15	U45202PB1978PTC003831	MAHAVIR SPINNING MILLS PRIVATE LIMITED	Director	08-01-98	08-01-98	-	Active	NO
16	U67120PB1981PLC004492	SRESTHA HOLDINGS LIMITED	Director	08-01-98	08-01-98	-	Active	NO
17	U67120PB1978ULT021891	ADINATH INVESTMENT AND TRADING COMPANY (PRIVATE COMPANY WITH UNLIMITED LIABILITY )	Director	23-10-98	23-10-98	-	Active	NO
18	L65921PB1983PLC024887	RAMANIYA FINANCE AND INVESTMENT COMPANY LIMITED	Director	09-01-02	09-01-02	-	Active	NO
19	U00000PB2004NPL026873	NIMBUA GREENFIELD (PUNJAB) LIMITED	Director	01-03-04	01-03-04	-	Active	NO
20	U17120MH1967PLC013669	CONFEDERATION OF INDIAN TEXTILE INDUSTRY	Director	22-09-04	22-09-04	25-09-08	Active	NO
21	U17230PB2005PLC027936	VARDHMAN YARNS AND THREADS LIMITED	Director	07-04-08	04-02-05	-	Active	NO
22	U65991MH2002GOI137868	UTI TRUSTEE COMPANY PRIVATE LIMITED	Director	13-01-06	13-01-06	-	Active	NO
23	U17121PB2007PLC030853	VARDHMAN SPINNING AND GENERAL MILLS LIMITED	Director	31-01-07	31-01-07	-	Active	NO
24	U18100PB2009PLC032764	VARDHMAN NISSHINBO GARMENTS COMPANY LIMITED	Director	17-04-09	17-04-09	20-08-09	Active	NO

Name :

Mr. Sachit Jain

Designation :

Director

Address :

Auro Mirra Bhawan, 2722, Gurdev Nagar, Pakhowal Road, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

08.07.1966

Date of Appointment :

04.02.2005

DIN No.:

00746409

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L17111PB1973PLC003345	VARDHMAN TEXTILES LIMITED	Whole-time director	30-03-10	13-06-94	-	Active	NO
2	L51491PB1990PLC019212	VARDHMAN ACRYLICS LIMITED	Director	30-12-95	30-12-95	-	Active	NO
3	U51494PB1987PTC007399	PRADEEP MERCANTILE COMPANY PRIVATE LIMITED	Director	16-12-97	16-12-97	-	Active	NO
4	U51909PB1987PTC007397	PLAZA TRADING COMPANY PRIVATE LIMITED	Director	16-12-97	16-12-97	-	Active	NO
5	U67120PB1981PTC004749	ANKLESH INVESTMENTS PRIVATE LIMITED	Director	16-12-97	16-12-97	-	Active	NO
6	U45202PB1978PTC003831	MAHAVIR SPINNING MILLS PRIVATE LIMITED	Director	08-01-98	08-01-98	-	Active	NO
7	U67120PB1980PTC022317	DEVAKAR INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	08-01-98	08-01-98	-	Active	NO
8	U67120PB1978ULT021891	ADINATH INVESTMENT AND TRADING COMPANY (PRIVATE COMPANY WITH UNLIMITED LIABILITY )	Director	23-10-98	23-10-98	-	Active	NO
9	U67120PB1988PTC021770	SYRACUSE INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	19-04-02	19-04-02	-	Active	NO
10	U67120PB1987PTC021772	MARSHALL INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	16-07-02	16-07-02	-	Active	NO
11	L65921PB1983PLC024887	RAMANIYA FINANCE AND INVESTMENT COMPANY LIMITED	Director	30-09-02	30-09-02	-	Active	NO
12	U67120PB1981PLC004492	SRESTHA HOLDINGS LIMITED	Director	30-09-02	30-09-02	-	Active	NO
13	L65921PB1982PLC024886	SANTON FINANCE AND INVESTMENT COMPANY LIMITED	Director	30-09-02	30-09-02	-	Active	NO
14	L65921PB1982PLC024888	FLAMINGO FINANCE AND INVESTMENT COMPANY LIMITED	Director	30-09-02	30-09-02	-	Active	NO
15	U17117PB1990PLC014070	VMT SPINNING COMPANY LIMITED	Whole-time director	01-05-08	17-04-03	14-03-11	Active	NO
16	U18100PB2003PLC026315	VARDHMAN APPARELS LIMITED	Director	28-08-03	28-08-03	-	Active	NO
17	U17230PB2005PLC027936	VARDHMAN YARNS AND THREADS LIMITED	Director	04-02-05	04-02-05	-	Active	NO
18	L17111PB1962PLC002463	VARDHMAN HOLDINGS LIMITED	Director	30-03-05	30-03-05	-	Active	NO
19	L29211PB1970PLC002942	PUNJAB TRACTORS LIMITED	Additional director	19-10-06	19-10-06	10-05-07	Amalgamated	NO
20	U17121PB2007PLC030853	VARDHMAN SPINNING AND GENERAL MILLS LIMITED	Director	31-01-07	31-01-07	-	Active	NO
21	U17231PB1994PLC014256	VTL INVESTMENTS LIMITED	Director	06-09-08	05-07-08	-	Active	NO
22	U18100PB2009PLC032764	VARDHMAN NISSHINBO GARMENTS COMPANY LIMITED	Director	20-08-09	17-04-09	-	Active	NO
23	U65991MH2002GOI137867	UTI ASSET MANAGEMENT COMPANY LIMITED	Director	20-01-10	20-01-10	-	Active	NO
24	U27100PB2010PLC033930	VARDHMAN SPECIAL STEELS LIMITED	Managing director	01-04-11	14-05-10	-	Active	NO

Name :

Mr. Darshan Lal Sharma

Designation :

Managing Director

Address :

B – XX – 770/ 2, Gurdev Nagar, Pakhowal Road, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

10.11.1948

Qualification :

M.B.A.

Date of Appointment :

24.02.2005

DIN No.:

00727581

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L17111PB1973PLC003345	VARDHMAN TEXTILES LIMITED	Whole-time director	01-04-08	08-05-85	-	Active	NO
2	L51491PB1990PLC019212	VARDHMAN ACRYLICS LIMITED	Director	24-12-90	24-12-90	-	Active	NO
3	U17121PB1983PLC005432	DELUXE FABRICS LIMITED	Director	20-08-93	20-08-93	-	Active	NO
4	U17117PB1990PLC014070	VMT SPINNING COMPANY LIMITED	Director	30-12-93	30-12-93	-	Active	NO
5	U17231PB1994PLC014256	VTL INVESTMENTS LIMITED	Director	23-02-94	23-02-94	-	Active	NO
6	U17121PB1996PTC017569	SANGAM WEAVERS PRIVATE LIMITED	Director	06-12-97	06-12-97	-	Active	NO
7	U17230PB2005PLC027936	VARDHMAN YARNS AND THREADS LIMITED	Managing director	01-04-11	24-02-05	-	Active	NO
8	U85110CH2007PTC030750	ARCS INDIA DIALYSIS CENTERS PRIVATE LIMITED	Director	23-03-07	23-03-07	-	Active	NO
9	U18100PB2009PLC032764	VARDHMAN NISSHINBO GARMENTS COMPANY LIMITED	Whole-time director	01-02-11	17-04-09	-	Active	NO

Name :

Mr. John Leslie Miller

Designation :

Director

Address :

3628, Raintree Drive, Gastonia NC 28058

Date of Birth/Age :

17.04.1954

Date of Appointment :

07.04.2008

DIN No.:

02133277

Name :

Mr. Craig George Stover

Designation :

Director

Address :

1261, Lochshire Lane, Gastonia NC 28054

Date of Birth/Age :

26.10.1957

Date of Appointment :

07.04.2008

DIN No.:

02133405

Name :

Mr. Freddy Alfred Jackson

Designation :

Director

Address :

3671, Sherwood Circle, Gastonia NC 28056

Date of Birth/Age :

07.12.1949

Date of Appointment :

07.04.2008

DIN No.:

02133432

KEY EXECUTIVES

Name :	Mr. Walia Kamal Karan
Designation :	Secretary
Address :	708/4, Punjab Mata Nagar, Pakhowal Road, Ludhiana - 141013, Punjab, India
Date of Birth/Age :	05.07.1987
Date of Appointment :	28.04.2011
PAN No.:	AAZPW3626P

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 01.06.2011

Names of Shareholders	No. of Shares
Vardhman Textiles Limited, India	29072180
Shri Paul Oswal	10
Darshan Lal Sharma	10
Sachit Jain	10
Neeraj Jain	10
Rajeev Thapar	10
Mahesh Arora	10
Adinath Investment and Trading Company Limited, India	1000
American and Efird Inc., USA	27933114
Total	57006354

Equity Share Break up (Percentage of Total Equity)

As on: 01.06.2011

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	49.00
Bodies corporate	51.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of Manufacturing and Supply Threads.

Products :

Product Description	Item Code No.
Cotton Thread	52041140
Polyester Thread	55081000
Nylon/ Syn. Filament/ Core Spun Thread	54011000

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity
Threads	MT	12000

Particulars	Unit	Actual Production
Sewing Thread	MT	2762.14

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of Patiala, Commercial Branch, Ludhiana – 141 003, Punjab, India
• ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India
• Corporation Bank, SCO – 34, Feroze Gandhi Market, Ludhiana – 141001, Punjab, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	677.491	696.305
Working capital loans banks secured	22.610	10.276
Total	700.101	706.581

Note:

*The term loans from banks are secured by mortgage created or to be created on all immovable assets of the Company, both present and future; and hypothecation of all the movable assets both present and future (except book debts), subject to charges created or to be created in favour of the bankers for securing the working capital limits.

Includes Rs.85.602 Millions (previous year Rs. 78.814 Millions) falling due for payment within one year

**Working capital borrowings from banks are secured by hypothecation of entire

present and future movable assets of the Company and are secured by second charge on all immovable assets of the company both present and future.

Banking Relations :	--
Auditors :
Name :	Walker, Chandiok and Company Chartered Accountants
Address :	L 41, Connaught Circus, New Delhi – 110 001, India
Tel. No.:	91-11-42787070
Fax No.:	91-11-42787071
E-Mail :	NEWDELHI@wcgt.in
PAN.:	AAAFW4298E
Holding Company :	Vardhman Textiles Limited CIN No.: L17111PB1973PLC003345
Company which exercise significant influence :	American and Efird Inc., USA
Subsidiary Companies :	· Vardhman Acrylics Limited · VMT Spinning Company Limited CIN No.: U17117PB1990PLC014070 · Vardhman Nisshinbo Garments Company Limited CIN No.: U18100PB2009PLC032764 · Vardhman Special Steels Limited CIN No.: U27100PB2010PLC033930

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Shares	Rs.10/- each	Rs.600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
57006354	Equity Shares	Rs.10/- each	Rs.570.064 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		570.064	570.064	570.064
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3026.127	2685.375	2400.363
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3596.191	3255.439	2970.427
LOAN FUNDS
1] Secured Loans		700.101	706.581	678.387
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		700.101	706.581	678.387
DEFERRED TAX LIABILITIES		45.541	37.409	26.266
TOTAL		4341.833	3999.429	3675.080
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1955.690	2020.373	1766.279
Capital work-in-progress		156.130	18.056	51.865
Intangible Assets		0.000	0.000	254.224
INVESTMENT		158.471	8.471	8.471
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1259.874	986.979	741.564
	Sundry Debtors	720.907	685.397	637.579
	Cash & Bank Balances	111.715	340.797	122.701
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	532.237	443.152	520.086
Total Current Assets		2624.733	2456.325	2021.930
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	304.105	321.369	263.836
	Other Current Liabilities	49.649	31.704	45.075
	Provisions	199.437	150.723	118.778
Total Current Liabilities		553.191	503.796	427.689
Net Current Assets		2071.542	1952.529	1594.241
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4341.833	3999.429	3675.080

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	4261.045	3771.510	3365.398
		Other Income	26.929	43.270	26.329
		TOTAL (A)	4287.974	3814.780	3391.727
Less	EXPENSES
		Consumption materials changes inventories	1694.162	1519.026
		Manufacturing service costs	803.535	742.498
		Employee related expenses	472.947	390.574
		Administrative selling other expenses	359.456	333.887
		TOTAL (B)	3330.100	2985.985	2671.140
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		957.874	828.795	720.587
Less	FINANCIAL EXPENSES (D)		13.193	27.211	36.100
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		944.681	801.584	684.487
Less/ Add	DEPRECIATION/ AMORTISATION (F)		209.664	195.492	201.804
	PROFIT BEFORE TAX (E-F) (G)		735.017	606.092	482.683
Less	TAX (H)		242.527	192.503	145.465
	PROFIT AFTER TAX (G-H) (I)		492.490	413.589	337.218
Less	Prior period items		(0.647)	0.282	0.366
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		307.383	172.371	62.230
Less	APPROPRIATIONS
		Transfer to General Reserve	60.000	150.000	120.000
		Dividend	131.115	110.022	91.210
		Tax on Dividend	21.270	18.273	15.501
	BALANCE CARRIED TO THE B/S		588.135	307.383	172.371
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	211.352	178.351	159.926
	TOTAL EARNINGS		211.352	178.351	159.926
	IMPORTS
		Raw Materials	206.958	132.022	65.995
		Stores & Spares	27.405	40.856	18.677
		Capital Goods	87.510	50.843	17.297
	TOTAL IMPORTS		321.873	223.721	101.969
	Earnings Per Share (Rs.)		8.65	7.25	6.02

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	11.49	10.84	9.94
Net Profit Margin (PBT/Sales)	(%)	17.25	16.07	14.34
Return on Total Assets (PBT/Total Assets}	(%)	16.05	13.54	12.74
Return on Investment (ROI) (PBT/Networth)		0.20	0.19	0.16
Debt Equity Ratio (Total Liability/Networth)		0.35	0.37	0.37
Current Ratio (Current Asset/Current Liability)		4.74	4.88	4.73

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

FINANCIAL RESULT:

During the year, the gross sales of the Company were Rs. 4261.675 Millions as against Rs. 3771.626 Millions in the previous year, registering an increase of 12.99 percent. The net profit increased from Rs. 413.589 Millions in the previous year to Rs. 492.490 Millions during the year, showing an increase of 19.08 percent. The production of sewing thread during the year was 10,936 MT as against 10,402 MT in the previous year, showing an increase of 5.13%. The FOB value of exports of the Company during the year was Rs. 211.352 Millions as against Rs. 1,783.51 Millions in the previous year, registering an increase of 18.50 percent.

BUSINESS SCENARIO:

The general economic situation improved in the country due to continued recovery in the global economies and improved performance in the manufacturing sector. The textile economy of the country witnessed buoyancy with a strong demand in both export and domestic markets. The industry witnessed unprecedented price increase of its major raw materials during the year.

Export performance of apparels and home textiles remained static with marginal growth, however, the leather goods and footwear's witnessed improved growth trends in the domestic market and also improvement in export segment. The company continued to have demand pressure for value added sewing threads but due to disruption in production at Perundrai unit of the company and limitation of servicing from Ludhiana unit we could not harness the full opportunities available during the year.

The business outlook is expected to be encouraging both because of increasing domestic demand and also due to shift of high end apparels from China to India due to increasing costs and availability of labor. Indian textile industry has the advantage of self sufficiency in major raw materials like polyester and cotton fibre giving it a competitive edge in the global trade.

The higher rate of inflation and its consequent impact on interest rates and manufacturing cost continue to remain an area of concern. The increasing cost of labor and its availability and expected fluctuations in raw materials prices are likely to affect the production cost and hence the operating margins. The management of the company is confident to continue its focus and direct its attention on emerging opportunities in the industry to achieve the projected performance levels.

CONTINGENT LIABILITIES

(Rs. in millions)

Particulars	31.03.2011	31.03.2010
a. Bank guarantees given by the company	5.320	4.027
b. Claims against the Company not acknowledged as debts.	34.763	9.601

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U17230PB2005PLC027936
Name of the company	VARDHMAN YARNS AND THREADS LIMITED
Address of the registered office or of the principal place of business in India of the company	Vardhman Premises, Chandigarh Road, Ludhiana – 141010, Punjab, India E-mail: kwalia@vardhman.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	State Bank of Patiala, Commercial Branch, Ludhiana – 141 003, Punjab, India E-mail: sbop50463@gmail.com
Nature of instrument creating charge	Agreement of hypothecation of goods and assets and sanction letter dated 22nd March, 2012.
Date of instrument Creating the charge	22.03.2012
Amount secured by the charge	Rs.123.600 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 2.00% above base rate i.e 12.50% (floating) p.a with reset every 2 years from date of sanction. Terms of Repayment First 04 installments of Rs.1.000 Millions each = Rs.4.000 Millions Next 04 installments of Rs.2.000 Millions each = Rs.8.000 Millions Next 04 installments of Rs.4.000 Millions each = Rs.16.000 Millions Next 04 installments of Rs.6.000 Millions each = Rs.24.000 Millions Next 04 installments of Rs.17.900 Millions each = Rs.71.600 Millions Margin 17.76% Extent and Operation of the charge 100%
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First charge on the entire fixed assets of the company on pari passu basis. Second charge on the entire current assets of the company on pari passu.

FIXED ASSETS:

Tangible Assets

· Freehold Land

· Leasehold Land

· Buildings

· Plant and Machinery

· Furniture and Fittings

· Vehicles

Intangible Assets

· Brands

AS PER WEBSITE DETAILS:

PROFILE

Subject Group is a leading textile conglomerate in India having a turnover of $700 mn. Spanning over 24 manufacturing facilities in five states across India, the Group business portfolio includes Yarn, Greige and Processed Fabric, Sewing Thread, Acrylic Fibre and Alloy Steel.

Subject Group manufacturing facilities include over 8,00,000 spindles, 65 tons per day yarn and fibre dyeing, 900 shuttleless looms, 90 mn meters per annum processed fabric, 33 tons per day sewing thread, 18000 metric tons per annum acrylic fibre and 100,000 tons per annum special and alloy steel.

Subject has evolved through history from a small beginning in 1965 into a modern textile major under the dynamic leadership of its chairman, S.P. Oswal. His vision and insight has given Subject an enviable position in the textile industry. Under his leadership, Subject is efficiently using resources to innovate, diversify, integrate and build its diverse operations into a dynamic modern enterprise.

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 records 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.56.99
UK Pound	1	Rs.88.97
Euro	1	Rs.71.57

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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	Capability to overcome financial difficulties seems comparatively below average.	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.