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 #	91-161-2222447	Business Style 2	Supply
Homepage	http://www.vardhman.com	Product Name 1	Threads
# of employees	Not Available	Product Name 2	--
Paid up capital	Rs. 570,063,540/-	Product Name 3	--
Shareholders	Foreign holdings 49.00%, Bodies corporate 51.00%	Banking	State Bank of Patiala
Public Limited Corp.	No	Business Period	8 Years
IPO	No	International Ins.	-
Public Enterprise	No	Rating	Ba (50)
Related Company
Relation	Country	Company Name	CEO
Holding Company	India	Vardhman Textiles Limited	-
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2012		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1,125,577,000	Current Liabilities	490,798,000
Inventories	1,040,233,000	Long-term Liabilities	708,148,000
Fixed Assets	2,122,987,000	Other Liabilities	261,978,000
Deferred Assets	0,000	Total Liabilities	1,460,924,000
Invest& other Assets	1,012,983,000	Retained Earnings	3,270,792,000
		Net Worth	3,840,856,000
Total Assets	5,301,780,000	Total Liab. & Equity	5,301,780,000
Total Assets (Previous Year)	4,895,024,000
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales	4,646,887,000	Net Profit	403,299,000
Sales(Previous yr)	4,261,045,000	Net Profit(Prev.yr)	492,490,000

MIRA INFORM REPORT

Report Date :

04.12.2013

IDENTIFICATION DETAILS

Name :	VARDHMAN YARNS AND THREADS LIMITED
Registered Office :	Vardhman Premises, Chandigarh Road, Ludhiana – 141010, Punjab
Country :	India
Financials (as on) :	31.03.2012
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
PAN No.: [Permanent Account No.]	AACCV2554K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Supply of Threads.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 15360000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is an established company having fine track record. Management has failed to file its latest financial of 2013 with the government department. As per of 2012, there appears dip in profit of the company. However, liquidity position seems to be strong and healthy. Trade relations are reported to be fair. Business is active. Payment terms are regular and as per commitment. The company can be considered for 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Vardhman Premises, Chandigarh Road, Ludhiana – 141010, Punjab, India
Tel. No.:	91-161-2228943-48
Fax No.:	91-161-2222447/ 6701435
E-Mail :	sjindal@vardhman.com kwalia@vardhman.com shashiranjan@vardhman.com
Website :	http://www.vardhman.com
Head Office/ Works :	C-58, Focal Point, Ludhiana 141010, Punjab, India
Tel. No.:	91-161-2670707/ 2670708/ 2670709
Fax No.:	91-161-2670503
E-Mail :	steel@vardhman.com
Central Marketing Office :	212, Deen Dayal Upadyay Marg, 1st Floor, Urdu Ghar, New Delhi – 110002, India
Tel. No.:	11-49564400
Fax No.:	11-23232608
E-Mail :	indy@vardhmanthreads.in
Warehouses :	Located at: · Ludhiana Baddi Faridabad Bhiwadi Pune Chennai
Sales and Services :	Located at: Ahmedabad Bangalore Chennai New Delhi Ernakulam Gurgaon Faridabad Hyderabad Indore Jaipur Kanpur Kolkata Ludhiana Mumbai Noida Patna Ranchi Pune Tirupur
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
Branch Offices :	Located at: Yarns · Ludhiana Mumbai Calcutta Tirupur Bangalore Fabrics · Solan Threads · Ahmedabad Bangalore Chennai Chennai SWH New Delhi Ernakulam Gurgaon Faridabad Hyderabad Indore Raipur Jaipur Kanpur Kolkata Kolkata (Godown) Ludhiana Jammu Mumbai Noida Patna Ranchi Pune Tirupur Orissa Baraielly Guwathi Steel · Ludhiana Chennai Faridabad New Delhi Pune Kolkata

DIRECTORS

AS ON 29.05.2012

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 :

B.S.C. (ENGG.), MBA

Date of Appointment :

01.04.2013

PAN No.:

AIPPS7078H

DIN No.:

00727581

Other Directorship :

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	Director	01/04/2008	08/05/1985	-	Active	NO
2	L51491PB1990PLC019212	VARDHMAN ACRYLICS LIMITED	Director	24/12/1990	24/12/1990	-	Active	NO
3	U17121PB1983PLC005432	DELUXE FABRICS LIMITED	Director	20/08/1993	20/08/1993	-	Active	NO
4	U17117PB1990PLC014070	VMT SPINNING COMPANY LIMITED	Director	30/12/1993	30/12/1993	-	Active	NO
5	U17231PB1994PLC014256	VTL INVESTMENTS LIMITED	Director	23/02/1994	23/02/1994	-	Active	NO
6	U17121PB1996PTC017569	SANGAM WEAVERS PRIVATE LIMITED	Director	06/12/1997	06/12/1997	01/03/2013	Active	NO
7	U17230PB2005PLC027936	VARDHMAN YARNS & THREADS LIMITED	Managing director	01/04/2013	24/02/2005	-	Active	NO
8	U85110CH2007PTC030750	ARCS INDIA DIALYSIS CENTERS PRIVATE LIMITED	Director	23/03/2007	23/03/2007	-	Strike off	NO
9	U18100PB2009PLC032764	VARDHMAN NISSHINBO GARMENTS COMPANY LIMITED	Whole-time director	01/02/2013	17/04/2009	-	Active	NO
10	U91110MH1954NPL009385	THE COTTON TEXTILES EXPORT PROMOTION COUNCIL	Director	30/09/2013	30/09/2013	-	Active	NO

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

Qualification :

M. Com (Gold Medalist)

Date of Appointment :

04.02.2005

DIN No.:

00121737

Other Directorship :

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	12/04/1971	12/04/1971	-	Active	NO
2	L17111PB1973PLC003345	VARDHMAN TEXTILES LIMITED	Managing director	01/06/2010	08/10/1973	-	Active	NO
3	U33302CH1977PLC003719	KHANNA WATCHES LIMITED	Director	26/07/1977	26/07/1977	16/03/2009	Active	NO
4	L51491PB1990PLC019212	VARDHMAN ACRYLICS LIMITED	Director	24/12/1990	24/12/1990	-	Active	NO
5	L65921PB1982PLC024886	SANTON FINANCE AND INVESTMENT COMPANY LIMITED	Director	20/04/1993	20/04/1993	-	Active	NO
6	L65921PB1982PLC024888	FLAMINGO FINANCE AND INVESTMENT COMPANY LIMITED	Director	20/04/1993	20/04/1993	-	Active	NO
7	U67120PB1980PTC022317	DEVAKAR INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	20/04/1993	20/04/1993	-	Active	NO
8	U17117PB1990PLC014070	VMT SPINNING COMPANY LIMITED	Director	30/12/1993	30/12/1993	-	Active	NO
9	U17231PB1994PLC014256	VTL INVESTMENTS LIMITED	Director	23/02/1994	23/02/1994	-	Active	NO
10	U67120PB1988PTC021770	SYRACUSE INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	01/12/1997	01/12/1997	-	Active	NO
11	U67120PB1987PTC021772	MARSHALL INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	15/12/1997	15/12/1997	-	Active	NO
12	U51494PB1987PTC007399	PRADEEP MERCANTILE COMPANY PVT LTD	Director	16/12/1997	16/12/1997	-	Active	NO
13	U51909PB1987PTC007397	PLAZA TRADING COMPANY PRIVATE LIMITED	Director	16/12/1997	16/12/1997	-	Active	NO
14	U67120PB1981PTC004749	ANKLESH INVESTMENTS PRIVATE LIMITED	Director	16/12/1997	16/12/1997	-	Active	NO
15	U45202PB1978PTC003831	MAHAVIR SPINNING MILLS PRIVATE LIMITED	Director	08/01/1998	08/01/1998	-	Active	NO
16	U67120PB1981PLC004492	SRESTHA HOLDINGS LIMITED	Director	08/01/1998	08/01/1998	-	Active	NO
17	U67120PB1978ULT021891	ADINATH INVESTMENT AND TRADING COMPANY (PRIVATE COMPANY WITH UNLIMITED LIABILITY )	Director	23/10/1998	23/10/1998	-	Active	NO
18	L65921PB1983PLC024887	RAMANIYA FINANCE AND INVESTMENT COMPANY LIMITED	Director	09/01/2002	09/01/2002	-	Active	NO
19	U00000PB2004NPL026873	NIMBUA GREENFIELD (PUNJAB) LIMITED	Director	01/03/2004	01/03/2004	-	Active	NO
20	U17120MH1967PLC013669	CONFEDERATION OF INDIAN TEXTILE INDUSTRY	Director	22/09/2004	22/09/2004	25/09/2008	Active	NO
21	U17230PB2005PLC027936	VARDHMAN YARNS & THREADS LIMITED	Director	07/04/2008	04/02/2005	-	Active	NO
22	U65991MH2002GOI137868	UTI TRUSTEE COMPANY PRIVATE LIMITED	Director	13/01/2006	13/01/2006	28/10/2013	Active	NO
23	U17121PB2007PLC030853	VARDHMAN SPINNING AND GENERAL MILLS LIMITED	Director	31/01/2007	31/01/2007	-	Active	NO
24	U18100PB2009PLC032764	VARDHMAN NISSHINBO GARMENTS COMPANY LIMITED	Director	17/04/2009	17/04/2009	20/08/2009	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

Qualification :

B. Tech, M.B.A.

Date of Appointment :

04.02.2005

DIN No.:

00746409

Other Directorship :

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	30/03/2010	13/06/1994	-	Active	NO
2	L51491PB1990PLC019212	VARDHMAN ACRYLICS LIMITED	Director	30/12/1995	30/12/1995	-	Active	NO
3	U51494PB1987PTC007399	PRADEEP MERCANTILE COMPANY PRIVATE LIMITED	Director	16/12/1997	16/12/1997	-	Active	NO
4	U51909PB1987PTC007397	PLAZA TRADING COMPANY PRIVATE LIMITED	Director	16/12/1997	16/12/1997	-	Active	NO
5	U67120PB1981PTC004749	ANKLESH INVESTMENTS PRIVATE LIMITED	Director	16/12/1997	16/12/1997	-	Active	NO
6	U45202PB1978PTC003831	MAHAVIR SPINNING MILLS PRIVATE LIMITED	Director	08/01/1998	08/01/1998	-	Active	NO
7	U67120PB1980PTC022317	DEVAKAR INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	08/01/1998	08/01/1998	-	Active	NO
8	U67120PB1978ULT021891	ADINATH INVESTMENT AND TRADING COMPANY (PRIVATE COMPANY WITH UNLIMITED LIABILITY )	Director	23/10/1998	23/10/1998	-	Active	NO
9	U67120PB1988PTC021770	SYRACUSE INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	19/04/2002	19/04/2002	-	Active	NO
10	U67120PB1987PTC021772	MARSHALL INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	16/07/2002	16/07/2002	-	Active	NO
11	L65921PB1983PLC024887	RAMANIYA FINANCE AND INVESTMENT COMPANY LIMITED	Director	30/09/2002	30/09/2002	-	Active	NO
12	U67120PB1981PLC004492	SRESTHA HOLDINGS LIMITED	Director	30/09/2002	30/09/2002	-	Active	NO
13	L65921PB1982PLC024886	SANTON FINANCE AND INVESTMENT COMPANY LIMITED	Director	30/09/2002	30/09/2002	-	Active	NO
14	L65921PB1982PLC024888	FLAMINGO FINANCE AND INVESTMENT COMPANY LIMITED	Director	30/09/2002	30/09/2002	-	Active	NO
15	U17117PB1990PLC014070	VMT SPINNING COMPANY LIMITED	Whole-time director	01/05/2008	17/04/2003	14/03/2011	Active	NO
16	U18100PB2003PLC026315	VARDHMAN APPARELS LIMITED	Director	28/08/2003	28/08/2003	-	Active	NO
17	U17230PB2005PLC027936	VARDHMAN YARNS & THREADS LIMITED	Director	04/02/2005	04/02/2005	-	Active	NO
18	L17111PB1962PLC002463	VARDHMAN HOLDINGS LIMITED	Director	30/03/2005	30/03/2005	-	Active	NO
19	L29211PB1970PLC002942	PUNJAB TRACTORS LIMITED	Additional director	19/10/2006	19/10/2006	10/05/2007	Amalgamated	NO
20	U17121PB2007PLC030853	VARDHMAN SPINNING AND GENERAL MILLS LIMITED	Director	31/01/2007	31/01/2007	-	Active	NO
21	U17231PB1994PLC014256	VTL INVESTMENTS LIMITED	Director	06/09/2008	05/07/2008	-	Active	NO
22	U18100PB2009PLC032764	VARDHMAN NISSHINBO GARMENTS COMPANY LIMITED	Director	20/08/2009	17/04/2009	-	Active	NO
23	U65991MH2002GOI137867	UTI ASSET MANAGEMENT COMPANY LIMITED	Director	20/01/2010	20/01/2010	-	Active	NO
24	L27100PB2010PLC033930	VARDHMAN SPECIAL STEELS LIMITED	Managing director	01/04/2011	14/05/2010	-	Active	NO
25	U27106MH1968NPL014092	THE ALLOY STEEL PRODUCERS ASSOCIATION OF INDIA	Director	20/09/2013	20/09/2013	-	Active	NO

Name :

John Leslie Miller

Designation :

Director

Address :

3628, Raintree Drive, Gastonia NC 28058 United State of America

Date of Birth/Age :

17.04.1954

Qualification :

Graduate

Date of Appointment :

07.04.2008

DIN No.:

02133277

Name :

Craig George Stover

Designation :

Director

Address :

1261, Lochshire Lane, Gastonia NC 28054 United State of America

Date of Birth/Age :

26.10.1957

Qualification :

Graduate

Date of Appointment :

07.04.2008

DIN No.:

02133405

Name :

Freddy Alfred Jackson

Designation :

Director

Address :

3671, Sherwood Circle, Gastonia NC 28056 United State of America

Date of Birth/Age :

07.12.1949

Qualification :

Graduate

Date of Appointment :

07.04.2008

DIN No.:

02133432

KEY EXECUTIVES

Name :	Mr. Karan Kamal Walia
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 29.05.2012

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

AS ON 29.05.2012

Equity Share Breakup	Percentage of Holding
Category
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 :

Manufacturing and Supply of Threads.

Products/ Services :

ITC Code No.	Product Descriptions
53061090	Yarn
52041140	Cotton Thread
55081000	Polyester Thread
54011000	Nylon/ Syn. Filament/ Core Spun Thread

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity
Threads	MT	12000

Particulars	Unit	Actual Production
Sewing Thread	MT	2762.14
Others	MT	30.80
Total		2792.94

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of Patiala, Commercial Branch, Miller Ganj, Ludhiana - 141003, Punjab, India

Corporation Bank, SCO-34, Feroze Gandhi Market, Ludhiana - 141001, Punjab, India

ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

State Bank of India, Mid Corporate Branch, SCB Miller Ganj, Ludhiana - 141003, Punjab, India

Facilities :

SECURED LOANS

31.03.2012

(Rs. In Millions)

LONG-TERM BORROWINGS

Rupee term loans from banks

707.276

SHORT TERM BORROWINGS

Working capital loans from banks

0.872

Total

708.148

LONG-TERM BORROWINGS

Term Loans from banks are secured by mortgage created or to be created on all the immovable assets of the company, both present and future and hypothecation of all movable assets, both present and future (except book debts), subject to charges created or to be created in favor of the bankers for securing the working capital limits.

SHORT TERM BORROWINGS

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.

SECURED LOANS	31.03.2011 (Rs. In Millions)
Rupee term loans banks secured	677.491
Working capital loans banks secured	22.610
Total	700.101

Banking Relations :	--
Auditors :
Name :	Walker Chandiok and Company Chartered Accountants
Address :	L-41, Connaught Circus, New Delhi, India
Income-tax PAN of auditor or auditor's firm :	AAAFW4298E
Holding company :	Vardhman Textiles Limited [L17111PB1973PLC003345]
Fellow Subsidiary Company :	· Vardhman Acrylics Limited [L51491PB1990PLC019212] VMT Spinning Company Limited [U17117PB1990PLC014070] Vardhman Nisshinbo Garments Company Limited [U18100PB2009PLC032764] Vardhman Special Steels Limited [U27100PB2010PLC033930]
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	American and Efird Global, LLC

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
60,000,000	Equity Shares	Rs. 10/- each	Rs. 600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
57,006,354	Equity Shares	Rs. 10/- each	Rs. 570.064 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	570.064
(b) Reserves & Surplus	3270.792
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	3840.856
(3) Non-Current Liabilities
(a) long-term borrowings	707.276
(b) Deferred tax liabilities (Net)	68.278
(c) Other long term liabilities	1.308
(d) long-term provisions	10.176
Total Non-current Liabilities (3)	787.038
(4) Current Liabilities
(a) Short term borrowings	0.872
(b) Trade payables	332.373
(c) Other current liabilities	157.117
(d) Short-term provisions	183.524
Total Current Liabilities (4)	673.886
TOTAL	5301.780
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1925.038
(ii) Intangible Assets	169.483
(iii) Capital work-in-progress	28.466
(iv) Intangible assets under development	0.000
(b) Non-current Investments	512.760
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	40.919
(e) Other Non-current assets	1.890
Total Non-Current Assets	2678.556
(2) Current assets
(a) Current investments	500.223
(b) Inventories	1040.233
(c) Trade receivables	796.761
(d) Cash and cash equivalents	136.106
(e) Short-term loans and advances	149.901
(f) Other current assets	0.000
Total Current Assets	2623.224
TOTAL	5301.780

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

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012
	SALES
		Revenue from operations	4646.887
		Other Income	89.835
		TOTAL (A)	4736.722
Less	EXPENSES
		Cost of materials consumed	1552.850
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	59.072
		Employee related expenses	530.055
		Other expenses	1716.023
		Prior period items	(3.125)
		TOTAL (B)	3854.875
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		881.847
Less	FINANCIAL EXPENSES (D)		69.150
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		812.697
Less/ Add	DEPRECIATION/ AMORTISATION (F)		209.083
	PROFIT BEFORE TAX (E-F) (G)		603.614
Less	TAX (H)		200.315
	PROFIT AFTER TAX (G-H) (I)		403.299
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		588.135
Less	APPROPRIATIONS
		Transfer to General Reserve	40.000
		Dividend	131.115
		Tax on Dividend	21.270
	BALANCE CARRIED TO THE B/S		799.049
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	241.222
	IMPORTS
		Raw Materials	131.562
		Stores & Spares	45.289
		Capital Goods	55.834
	TOTAL IMPORTS		232.685
	Earnings Per Share (Rs.)		6.96

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	4261.045	3771.510
		Other Income	26.929	43.270
		TOTAL (A)	4287.974	3814.780
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
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		957.874	828.795
Less	FINANCIAL EXPENSES (D)		13.193	27.211
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		944.681	801.584
Less/ Add	DEPRECIATION/ AMORTISATION (F)		209.664	195.492
	PROFIT BEFORE TAX (E-F) (G)		735.017	606.092
Less	TAX (H)		242.527	192.503
	PROFIT AFTER TAX (G-H) (I)		492.490	413.589
Less	PRIOR PERIOD ITEMS		(0.647)	0.282
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		307.383	172.371
Less	APPROPRIATIONS
		Transfer to General Reserve	60.000	150.000
		Dividend	131.115	110.022
		Tax on Dividend	21.270	18.273
			212.385	278.295
	BALANCE CARRIED TO THE B/S		588.135	307.383
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	211.352	178.351
	IMPORTS
		Raw Materials	206.958	132.022
		Stores & Spares	27.405	40.856
		Capital Goods	87.510	50.843
	TOTAL IMPORTS		321.873	223.721
	Earnings Per Share (Rs.)		8.65	7.25

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	8.51	11.49	10.84
Net Profit Margin (PBT/Sales)	(%)	12.99	17.25	16.07
Return on Total Assets (PBT/Total Assets}	(%)	12.68	16.05	13.54
Return on Investment (ROI) (PBT/Networth)		0.16	0.20	0.19
Debt Equity Ratio (Total Debt/Networth)		0.18	0.19	0.22
Current Ratio (Current Asset/Current Liability)		3.89	4.74	4.88

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

LITIGATION DETAILS

PUNJAB & HARYANA HIGH COURT
CASE STATUS INFORMATION SYSTEM

Case Status: PENDING

Status of          CRIMINAL MISCELLANEOUS PETITION   24837        of    2012    

ZUARI CEMENTS LIMITED AND ORS.                 Vs.                  VARDHMAN YARNS AND THREADS LIMITED

Pet's Adv.     :   KUNAL DAWAR                   

Last Listed On :     No Date Mentioned

List Type :   NO LIST TYPE MENTIONED

FIR No. :   NO FIR DETAILS AVAILABLE / NOT A CRIMINAL CASE

Complaint No. :   NO COMPLAINT DETAILS AVAILABLE

Category :   NO CATEGORY MENTIONED

:NO BENCH MENTIONED

Last Hearing Detail 2 :   NO BENCH MENTIONED

CONNECTED APPLICATION (S)	CONNECTED MATTER (S)
No Connected Application.	No Connected Cases.

Case Updated on:   Friday, April 27, 2012

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10348798	11/10/2012 *	12,360,000.00	STATE BANK OF PATIALA	COMMERCIAL BRANCH, MILLER GANJ, LUDHIANA - 141003, PUNJAB, INDIA	B61540134
2	10310358	11/10/2012 *	450,000,000.00	STATE BANK OF PATIALA	COMMERCIAL BRANCH, MILLER GANJ, LUDHIANA - 141003, PUNJAB, INDIA	B61540464
3	10230075	30/06/2010	42,500,000.00	STATE BANK OF INDORE	SCO-7, FEROZE GANDHI MARKET, LUDHIANA - 141001, PUNJAB, INDIA	A90099185
4	10228708	30/06/2010	164,500,000.00	ALLAHABAD BANK	IIFB BRANCH,, NEAR CHEEMA CHOWK, LUDHIANA - 141003, PUNJAB, INDIA	A89502991
5	10229673	30/06/2010	203,600,000.00	CORPORATION BANK	SCO-34, FEROZE GANDHI MARKET, LUDHIANA - 141001, PUNJAB, INDIA	A89632954
6	10180416	30/06/2010 *	225,000,000.00	ORIENTAL BANK OF COMMERCE LIMITED	DELHI, INDIA, DELHI - 110001, INDIA	A89766208
7	10175377	18/09/2009 *	35,500,000.00	STATE BANK OF PATIALA	COMMERCIAL BRANCH, G.T. ROAD, MILLERGANJ, LUDHIANA - 141001, PUNJAB, INDIA	A70990817
8	10105602	18/09/2009 *	602,000,000.00	STATE BANK OF PATIALA	COMMERCIAL BRANCH, LUDHIANA - 141003, PUNJAB, INDIA	A70991229

* Date of charge modification

BACKGROUND AND NATURE OF OPERATIONS

Vardhman Yarns and Threads Limited (the Company) incorporated in February 2005, under the Companies Act 1956, is engaged in the business of manufacturing and supply of threads. Currently, the Company has four manufacturing facilities, at Ludhiana (Punjab) thread manufacturing, Hoshiarpur (Punjab) spinning and thread manufacturing, Baddi (Himachal Pradesh) thread manufacturing and Perundurai (Tamilnadu) thread manufacturing.

FINANCIAL RESULTS

During the year, the Revenue from operations (Gross) of the Company were Rs. 4647.944 Millions as against Rs. 4277.167 in the previous year, showing an increase of 8.67 percent. The Profit for the year decreased to Rs. 397.049 Millions from Rs. 493.137 Millions in the previous year, registering a decrease of 19.49 percent. The production of sewing thread during the year was 10335 MT as against 10,936 MT in the previous year, showing a fall of 5.5 percent. The FOB value of exports of the Company during the year was Rs. 241.200 Millions as against Rs. 211.400 Millions in the previous year, registering an increase of 14.1 percent.

BUSINESS SCENARIO

The country witnessed a general economic slowdown with GDP growth rate declining from over 8 percent in the previous year to about 6.2 percent during this financial year. The Indian rupee weakened during the year by more than 10 percent. The Textile industry passed through a turbulent time due to inventory losses with unprecedented price fluctuations of raw cotton and other materials and high bank rate of interest.

Although, the export of Ready Made Garments increased by more than 10 percent in value terms due to higher unit prices but remained flat in volumes. The home textile witnessed growth both in value and volume. The footwear and leather goods export remained stagnant, while the domestic markets remained buoyant.

The company achieved value growth in sales turnover but declined in volume growth other than for specialty products. The major decline in production and sales of A and E branded products was mainly due to continued closure of Perundrai Unit. The increased cost of labor, energy and high interest rates resulted in the lowering of operating margins during the year.

The Management of the Company continued to focus in the growth of high value niche products/market opportunities for which adequate investments both in capacity build up as well as technology upgradation is being done. Due to pressure in demand of apparels and textiles from the developed world and general economic slowdown, the business situation is really challenging. However, with the Perundrai Unit already in operation with state of art, facility for recycling of water the Management of the Company is confident to increase its market share to achieve the projected business volumes.

FIXED ASSETS:

· Land

Buildings

Other building

Plant and equipment

Other plant and equipment

Furniture and fixtures

Vehicles

Motor vehicles

Office equipment

Other equipments

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. 62.34
UK Pound	1	Rs. 102.06
Euro	1	Rs. 84.46

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.