MIRA INFORM REPORT

Report Date :

27.08.2014

IDENTIFICATION DETAILS

Name :	V AND S INTERNATIONAL PRIVATE LIMITED
Registered Office :	S-22, 2nd Floor, Manish Global Mall, Sector-22, Dwarka, New Delhi - 110075
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	14.08.1992
Com. Reg. No.:	55-049964
Capital Investment / Paid-up Capital :	Rs. 406.200 Millions
CIN No.: [Company Identification No.]	U74899DL1992PTC049964
PAN No.: [Permanent Account No.]	AAACV0030A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Selling of Garments.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ca (22)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company is continuously incurring losses. Further, the rating of the company takes into consideration the ongoing delays in debt servicing resulting from stretched liquidity position owing to elongated working capital cycle and weak financial profile marked by low profitability and moderate gearing. However, business is active. Payment terms are reported to be slow. The company can be considered for business dealings on a secured 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes that many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long-term Bank facilities = D
Rating Explanation	Lowest credit quality and very low prospects of recovery.
Date	April 28, 2014

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 31-03-2014.

INFORMATION DECLINED BY

Name :	Mr. Sandeep
Designation :	Manager
Contact No.:	91-124-4039852
Date :	23.08.2014

LOCATIONS

Registered Office :	S-22, 2nd Floor, Manish Global Mall, Sector-22, Dwarka, New Delhi – 110075, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	shikha@vnstexnits.com vands@vandsindia.com
Factory 1 :	15/19, 15/22, Begumpur Khatola, Gurgaon, Haryana, India
Tel. No.:	91-124-4039852
Factory 2 :	38KM Milestone, Delhi Jaipur Highway, Behrampur Road, Gurgaon, Haryana, India
Factory 3 :	28/19/1/2/2, 19/2/2, 22/1, 22/2/1, Begumpur Khatola, Gurgaon, Haryana, India
Factory 4 :	Plot No. 25, Sector-32, Gurgaon, Haryana, India

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Chander Parkash Gauba

Designation :

Managing director

Address :

C-3, Old DLF Colony, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

05.11.1954

Date of Appointment :

01.06.2007

PAN No.:

AAMPG0335N

DIN No.:

00054933

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	U74899DL1990PTC039251	V AND S INDUSTRIES PRIVATE LIMITED	Director	16/02/1990	16/02/1990	-	Active	NO
2	U74899DL1992PTC049964	V AND S INTERNATIONAL PRIVATE LIMITED	Managing director	01/06/2007	14/08/1992	-	Active	NO
3	U74899DL1995PTC109280	J. G. ELECTROS PRIVATE LIMITED	Director	07/01/1998	07/01/1998	27/04/2010	Active	NO
4	U29308CH1995PTC016920	J G ELECTROS PRIVATE LIMITED	Director	07/01/1998	07/01/1998	-	Not Available for eFiling	NO
5	U70109DL1996PTC079487	V AND S PROJECTS PRIVATE LIMITED	Director	07/01/1998	07/01/1998	-	Active	NO
6	U17110DL1998PLC096947	DESTINI INDIA LIMITED	Director	05/11/1998	05/11/1998	-	Active	NO
7	U74899DL1982PTC014200	MONARCH CONTROLS PRIVATE LIMITED	Director	23/04/1999	23/04/1999	06/02/2008	Active	NO
8	U55101DL1999PTC098356	V & S INDIA PRIVATE LIMITED	Director	25/08/1999	25/08/1999	-	Active	NO
9	U18101DL2000PTC106099	V AND S TEXNITS PRIVATE LIMITED	Director	05/06/2000	05/06/2000	-	Amalgamated	NO
10	U18101DL2001PTC112671	MANU CREATIONS PPRIVATE LIMITED	Director	21/03/2005	21/03/2005	-	Amalgamated	NO
11	U17121DL1992PLC050696	MONARCH TAPES LIMITED	Director	21/06/2005	21/06/2005	15/02/2012	Active	NO
12	U51311DL2005PTC138028	S S TEXTRADE PRIVATE LIMITED	Director	27/06/2005	27/06/2005	17/12/2009	Active	NO
13	U70101DL2004PTC129178	ABC REALTORS PRIVATE LIMITED	Director	17/09/2005	17/09/2005	08/10/2013	Active	NO
14	U17121HR2006PTC036455	ALOHA APPARELS PRIVATE LIMITED	Director	16/11/2006	16/11/2006	01/02/2008	Active	NO
15	U74992HR2006PTC036513	GAUBA SONS HOLDINGS PRIVATE LIMITED	Director	29/12/2006	29/12/2006	-	Active	NO
16	U50101HR2006PTC049596	MEHTA WHEELS PRIVATE LIMITED	Director	23/01/2007	23/01/2007	-	Active	NO
17	U45200HR2012PTC046237	V & S DWELLERS PRIVATE LIMITED	Director	15/06/2012	15/06/2012	-	Active	NO
18	U74899DL1994PTC059236	BULL AND BEAR SHARES PRIVATE LIMITED	Additional director	28/03/2014	28/03/2014	-	Active	NO

Name :

Mr. Sahil Gauba

Designation :

Director

Address :

C-3, Old DLF Colony, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

04.02.1984

Date of Appointment :

29.09.2007

PAN No.:

AJKPG5528Q

DIN No.:

00969915

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	U74992HR2006PTC036513	GAUBA SONS HOLDINGS PRIVATE LIMITED	Director	29/12/2006	29/12/2006	-	Active	NO
2	U74899DL1992PTC049964	V AND S INTERNATIONAL PRIVATE LIMITED	Director	29/09/2007	01/06/2007	-	Active	NO
3	U17121DL1992PLC050696	MONARCH TAPES LIMITED	Director	01/11/2009	01/11/2009	15/02/2012	Active	NO
4	U55101DL1999PTC098356	V & S INDIA PRIVATE LIMITED	Director	01/11/2009	01/11/2009	-	Active	NO
5	U74899DL1994PTC059236	BULL AND BEAR SHARES PRIVATE LIMITED	Additional director	10/09/2013	10/09/2013	-	Active	NO
6	U70109DL1996PTC079487	V AND S PROJECTS PRIVATE LIMITED	Additional director	11/09/2013	11/09/2013	-	Active	NO
7	U17110DL1998PLC096947	DESTINI INDIA LIMITED	Additional director	28/03/2014	28/03/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Sandeep
Designation :	Manager
Name :	Ms. Nidhi Aggarwal
Designation :	Secretary
Address :	161/11, Indrapuri, Jacubpura, Near Ramlila Ground, Gurgaon – 122001, Haryana, India
Date of Birth/Age :	09.09.1985
Date of Appointment :	06.07.2012
PAN No.:	AQOPA3204G

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Equity Shareholders	No. of Shares
C.P. Gauba	2876500
Neeta Gauba	3608600
Vipul Gauba	1392500
Sahil Gauba	1392500
C.P. Gauba (HUF)	735800
Solo Apparels Private Limited	60000
Bull and Bear Shares Private Limited	228000
Satish Arora	94000
P.K. Sethi	94000
V and S Industries Private Limited	23500
Pardeep Sethi	108100
Ravindra Nath	1500
Sudha Bala Sethi	5000
Total	10620000

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	3.00
Directors or relatives of directors	87.29
Other top fifty shareholders	9.71
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Garments.

Products/ Services :

ITC Code No.	Product Descriptions
61130000	Fabrics

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· Union Bank of India

SME Branch, SCO-13, Sector-14, Gurgaon - 122001, Haryana, India

· Standard Chartered Bank

Credit Risk Control, Narain Manzil, 23 Barakhamba Road, New Delhi - 110001, Delhi, India

· State Bank of India

Commercial Branch, Palam Court, Gurgaon, Gurgaon - 122001, Haryana, India

· Indian Overseas Bank

Industrial Finance Branch, 101-102, Rohit House -3, Tolstoy Marg, New Delhi - 110001, Delhi, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	164.548	236.348
Rupee term loans from others	0.000	33.696
Other loans and advances	0.662	0.937
SHORT TERM BORROWINGS
Working capital loans from banks	945.302	845.508
Total	1110.512	1116.489

Banking Relations :	--
Auditors :
Name :	APT Associates Chartered Accountants
Address :	B-36, Sagar Apartments, 6 Tilik Marg, New Delhi -110001, India
Income-tax PAN of auditor or auditor's firm :	AAEFA4171C
Enterprises over which Key Managerial Persons and their relatives exercise significant influence :	· V and S Industries Private Limited V and S India Private Limited V and S Projects Private Limited Destini India Limited Monarch Tapes Limited Gauba Sons Holdings Private Limited Bull and Bears Shares Private Limited ABC Realtors Private Limited Belle Amour Rebel

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
13,500,000	Equity Shares	Rs. 10/- each	Rs. 135.000 Millions
3,000,000	Preference Shares	Rs. 100/- each	Rs. 300.000 Millions
	Total		Rs. 435.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,620,000	Equity Shares	Rs. 10/- each	Rs. 106.200 Millions
3,000,000	Preference Shares	Rs. 100/- each	Rs. 300.000 Millions
	Total		Rs. 406.200 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	406.200	406.200	406.200
(b) Reserves & Surplus	238.096	447.666	448.701
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	644.296	853.866	854.901
(3) Non-Current Liabilities
(a) long-term borrowings	245.125	335.987	356.065
(b) Deferred tax liabilities (Net)	0.000	91.701	88.143
(c) Other long term liabilities	2.325	5.848	1.835
(d) long-term provisions	4.482	2.952	4.990
Total Non-current Liabilities (3)	251.932	436.488	451.033
(4) Current Liabilities
(a) Short term borrowings	945.302	845.508	853.715
(b) Trade payables	168.320	192.640	299.773
(c) Other current liabilities	36.927	60.669	161.197
(d) Short-term provisions	5.291	5.296	4.600
Total Current Liabilities (4)	1155.840	1104.113	1319.285
TOTAL	2052.068	2394.467	2625.219
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	500.761	608.704	701.980
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	20.544	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	6.984	0.000	0.000
(d) Long-term Loan and Advances	15.265	16.429	13.638
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	543.554	625.133	715.618
(2) Current assets
(a) Current investments	0.100	1.205	1.355
(b) Inventories	456.930	740.855	741.783
(c) Trade receivables	931.339	906.520	825.623
(d) Cash and cash equivalents	24.297	13.028	11.334
(e) Short-term loans and advances	95.848	107.726	329.506
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1508.514	1769.334	1909.601
TOTAL	2052.068	2394.467	2625.219

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	1038.100	1427.100	2249.400
		Other Income	103.000	65.900	119.800
		TOTAL	1141.100	1493.000	2369.200
Less	EXPENSES
		TOTAL	1409.700	1448.100	2300.300
	PROFIT/ [LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION		(268.600)	44.900	68.900
Less/ Add	DEPRECIATION/ AMORTISATION		39.600	41.700	45.800
	PROFIT/ [LOSS] BEFORE TAX		(308.200)	3.200	23.100
Less	TAX		(98.700)	4.200	(2.600)
	PROFIT/ [LOSS] AFTER TAX		(209.500)	(1.000)	25.700
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods - FOB Basis	231.507	200.901
		Freight Outward Received from customers	9.040	2.657
	TOTAL EARNINGS		240.547	203.558	NA
	IMPORTS
		Accessories/Consumables	7.842	4.362
		Repair and Maintenance - Machinery	0.429	0.000
	TOTAL IMPORTS		8.271	4.362	NA
	Earnings/ [Loss] Per Share (Rs.)		(19.73)	(0.10)	1.89

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(18.36)	(0.07)	1.08
Net Profit Margin (PBT/Sales)	(%)	(29.69)	0.22	1.03
Return on Total Assets (PBT/Total Assets}	(%)	(15.22)	0.13	0.88
Return on Investment (ROI) (PBT/Networth)		(0.48)	0.00	0.03
Debt Equity Ratio (Total Debt/Networth)		1.85	1.38	1.42
Current Ratio (Current Asset/Current Liability)		1.31	1.60	1.45

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	406.200	406.200	406.200
Reserves & Surplus	448.701	447.666	238.096
Net worth	854.901	853.866	644.296
long-term borrowings	356.065	335.987	245.125
Short term borrowings	853.715	845.508	945.302
Total borrowings	1209.780	1181.495	1190.427
Debt/Equity ratio	1.415	1.384	1.848

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2249.400	1427.100	1038.100
		(36.556)	(27.258)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2249.400	1427.100	1038.100
Profit/ [Loss]	25.700	(1.000)	(209.500)
	1.14%	(0.07%)	(20.18%)

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	Yes
10]	Designation of contact person	Yes
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	--
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	Yes
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	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10313643	30/08/2011	318,000,000.00	INDIAN OVERSEAS BANK	RAJIV CIRCLE BRANCH, D-28/29, CONNAUGHT PLACE, NEW DELHI, DELHI - 110001, INDIA	B23691942
2	10063939	31/07/2007	20,000,000.00	INDIAN OVERSEAS BANK	INDUSTRIAL FINANCE BRANCH, 101-102,ROHIT HOUSE -3 TOLSTOY MARG, NEW DELHI, DELHI - 110001, INDIA	A20777751
3	10066445	30/07/2007	320,000,000.00	STANDARD CHARTERED BANK	CREDIT RISK CONTROL, NARAIN MANZIL, 23, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA	A22089734
4	10002883	31/03/2014 *	81,000,000.00	STATE BANK OF INDIA	STATE BANK OF INDIA, SME BRANCH VATIKA FIRST INDIA PLACE, M.G.ROAD, GURGAON, HARYANA - 122002, INDIA	C05122676
5	10002234	16/02/2008 *	173,500,000.00	STATE BANK OF INDIA	CHANDNI CHOWK, NEW DELHI, DELHI - 110006, INDIA	A34009639
6	80002905	26/08/2009 *	310,000,000.00	STANDARD CHARTERED BANK	CREDIT RISK CONTROL, NARAIN MANZIL, 23 BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA	A68136449
7	80002907	26/08/2009 *	310,000,000.00	STANDARD CHARTERED BANK	CREDIT RISK CONTROL, NARAIN MANZIL, 23 BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA	A68136985
8	80013659	30/10/2007 *	100,000,000.00	UNION BANK OF INDIA	SSI BRANCH, SCO14, SECTOR14, GURGAON, HARYANA - 122001, INDIA	A26376913
9	80013656	20/12/2012 *	299,900,000.00	UNION BANK OF INDIA	SME BRANCH, SCO-13, SECTOR-14, GURGAON, HARYANA - 122001, INDIA	B66014630
10	90044109	14/02/2009 *	594,900,000.00	INDIAN OVERSEAS BANK	RAJIV CIRCLE BRANCH, D-28/29, CONNAUGHT PLACE, NEW DELHI, DELHI - 110001, INDIA	A57495756
11	90054697	28/10/2002	19,000,000.00	CANARA BANK	CHANDNI CHOWK, NEW DELHI, DELHI, INDIA	-
12	90041174	31/07/2007 *	576,410,000.00	INDIAN OVERSEAS BANK	INDUSTRIAL FINANCE BRANCH, 101-102,ROHIT HOUSE -3 TOLSTOY MARG, NEW DELHI, DELHI - 110001, INDIA	A20778114

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Loans and advances from directors	65.205	53.566
Loans and advances from others	14.710	11.440
Total	79.915	65.006

RESULTS OF THE OPERATIONS

The Indian Textiles Industry witnessed challenging times. The slowdown in the global growth aggravated the sluggishness in the economy. Apart from the un-favorable demand supply scenario the industry has been also reeling under the pressure of rising input costs. The prices of key raw materials have soared.

The gross sales and other income for the financial year were Rs. 1141.100 Millions as against Rs. 1493.000 Millions for the previous financial year registering an decrease of 351.900 Millions. The profit/loss After tax (After interest and depreciation charges) of Rs. (209.500) Millions as against Rs. (1.000) Million for the previous year. The substantial increase in loss is mainly due to sale of obsolete/ slow moving stocks at diminished value.

AMALGAMATION

1) Hon’ble Delhi High Court has approved on 07-05-2007, the arrangement as embodied in the Scheme of Arrangement and Amalgamation (The Scheme) of erstwhile V and S Texnits Private Limited, (VST), the transferor Company and Manu Creations Private Limited (MANU) the transferor Company with V and S International Private Limited, (The Company), the transferee Company. On complying with the requisite formalities by the Company, the Scheme became effective on 01.06.2007 (the effective date), operative retrospectively from April 1, 2006, the appointed date as per Scheme. Accordingly, the whole of the undertaking of VST and MANU have been transferred to and vested in the Company as a going concern and VST & MANU without any further act have been dissolved without winding up.

2) In terms of the scheme, the company is in the process of getting the titles of assets, accounts, licenses, registrations, certificates etc. transferred in its name which are related to erstwhile transferor companies in pursuant of scheme of amalgamation.

3) The Amalgamation has been accounted for under the ‘pooling of interest method’ as prescribed by Accounting Standard 14 (AS-14) issued by the Institute of Chartered Accountants of India and specific provisions of the scheme.

CONTINGENT LIABILITIES:

Particulars	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
i). Bills discounted by bank and outstanding	161.871	146.638
ii). Corporate guarantee issued in favour of Indian Overseas Bank for:
a). Destini India Limited	18.500	--
iii). The Company had imported Capital Equipment under ‘EPCG’ (Export Promotion Capital Goods scheme) at a concessional rate of Customs Duty. The company has pending export obligations to the extent of USD 966018 (equivalent to Rs.62.792 Millions approx.) to be fulfilled during a period of 8 years, as applicable from the date of imports, failing which the company will be liable to pay the differential Customs Duty together with interest and penalties, if imposed. iv). Company has not provided for interest on credit facilities availed from Indian Overseas Bank as the same have not been charged by the bank in view of the overdue status. v). Company is in litigation w.r.t. amount payable to outside parties including banks/ FI’s, for an amount aggregating to Rs.55.818 Millions. Company has entered in to MOU’s with some of the parties, for settlement. Others are being discussed and negotiated for settlement. Out of the above, a sum of Rs.39.654 Millions is payable to HDFC Limited, who have issued a notice u/s 13(2) of the Securitisation And reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002, and has claimed a sum of Rs.40.277 Millions from the company and the guarantors.

FIXED ASSETS:

· Land

Buildings

Other building

Plant and equipment

Other plant and equipment

Furniture and fixtures

Motor vehicles

Office equipment

Computer equipments

Computer software

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 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. 60.50
UK Pound	1	Rs. 100.33
Euro	1	Rs. 79.91

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	DIV
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	--
--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	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		22

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.