MIRA INFORM REPORT

Report Date :

10.11.2014

IDENTIFICATION DETAILS

Name :	VARDHMAN POLYTEX LIMITED
Registered Office :	341 K-1, Mundian Khurd, P.O. Sahabana, Chandigarh Road, Ludhiana - 141 123, Punjab
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	20.08.1980
Com. Reg. No.:	16-004242
Capital Investment/ Paid-up Capital:	Rs.198.524 Millions
CIN No.: [Company Identification No.]	L17122PB1980PLC004242
TAN No.: [Tax Deduction & Collection Account No.]	AMRV10742E/ PTLV10260F/ AMRV10633A/ PTLV10530C/ AMRV10685D/ JLD00443C/ JLDV00837E/ PTLV10422G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The company’s principal activity is manufacturing of yarn, garments and develop residential and commercial colony or project.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

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

Status :	Moderate
Payment Behaviour :	Slow and Delayed
Litigation :	Exist
Comments :	Subject is an established company having moderate track. As per financials, profitability of the company is low. Rating also takes into account irregularity in debt repayments as scheduled in the corporate debt restructuring scheme due to delay in cash inflow. Business is active. Payments terms are slow and delayed. The company can be considered normal for business dealing on safe and 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 – 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

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

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term fund based facilities D
Rating Explanation	Lower credit quality and very low prospects of recovery
Date	September, 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

Management non co-operative (91-011-23312478)

LOCATIONS

Registered/ Corporate Office :	341 K-1, Mundian Khurd, P.O. Sahabana, Chandigarh Road, Ludhiana - 141 123, Punjab, India
Tel. No.:	91-161-2685301-305
Fax No.:	91-161-5052439
E-Mail :	vpl.sect@oswalgroup.com
Website :	www.oswalgroup.com
Administrative Office :	305, Ansal Bhawan, 16, K.G. Marg, New Delhi – 110001, India
Tel. No.:	91-11-23311582/ 23312478
Fax No.:	91-11-23312477
Factory 1 :	Badal Road, Bathinda - 151005, Punjab, India
Factory 2 :	Vinayak Textile Mills (Spinning Unit), D-295/1, Phase VIII, Focal Point, Ludhiana - 141123, Punjab, India
Factory 3 :	Vinayak Textile Mills (Dyeing Unit), D-295/1, Phase VIII, Focal Point, Ludhiana – 141123, Punjab, India
Factory 4 :	Anshupati Textiles, 341 K-1, Mundian Khurd, P.O. Sahabana, Chandigarh Road, Ludhiana – 141123, Punjab, India
Factory 5 :	Amkryon International, HB-22, Phase-VI, Focal Point, Ludhiana – 141123, Punjab, India

DIRECTORS

As on: 31.03.2014

Name :

Mr. Ashok Oswal

Designation :

Chairman and Managing Director

Date of Appointment :

01.04.2011

DIN No.:

00009403

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	L17122PB1980PLC004242	VARDHMAN POLYTEX LTD	Managing director	01/04/2011	30/12/1986	-	Active	NO
2	U67120PB1988PTC021768	BORAS INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	20/04/1993	20/04/1993	-	Active	NO
3	U67120PB1987PTC021773	CALGARY INVESTMENT AND TRADING COMPANY PVT LTD	Director	20/04/1993	20/04/1993	-	Active	NO
4	U67120PB1981PTC004748	ENAKSHI INVESTMENTS PVT LTD	Director	20/04/1993	20/04/1993	-	Active	NO
5	U51494PB1987PTC007396	GAGAN MERCANTILE COMPANY PRIVATE LIMITED	Director	20/04/1993	20/04/1993	-	Active	NO
6	U67120PB1981PTC004747	KENT INVESTMENTS PRIVATE LIMITED	Director	20/04/1993	20/04/1993	-	Active	NO
7	U17212PB1979PTC003952	PANCHSHEEL TEXTILE MFG AND TRADING Company Private limited	Director	20/04/1993	20/04/1993	-	Active	NO
8	U51494PB1987PTC007394	PIONEER MARCANTILE INDIA PVT LTD	Director	20/04/1993	20/04/1993	-	Active	NO
9	U51494PB1987PTC007395	RUBY MERCANTILE COMPANY PVT LTD	Director	20/04/1993	20/04/1993	-	Active	NO
10	U51494PB1987PTC007398	LIBERTY MERCANTILE COMPANY PVT LTD	Director	20/04/1993	20/04/1993	-	Active	NO
11	U67120PB1989PTC021422	ADESH INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	08/01/1998	08/01/1998	-	Active	NO
12	U67120PB1987PTC021769	ALLEPY INVESTMENT AND TRADING CO.PVT. LTD	Director	18/04/2002	18/04/2002	-	Active	NO
13	U17110PB2006PLC029518	F M HAMMERLE TEXTILES LIMITED	Managing director	18/04/2007	12/01/2006	-	Active	NO
14	U70102PB2008PTC031717	OSWAL INFRATECH PRIVATE LIMITED	Director	29/02/2008	29/02/2008	-	Active	NO
15	U74992PB2008PTC032154	OSWAL HOLDING PRIVATE LIMITED	Director	30/07/2008	30/07/2008	-	Active	NO
16	U67190WB2007PTC118948	ALMA ASSETS CONSULTANCY PRIVATE LIMITED	Director	03/05/2010	03/05/2010	-	Active	NO

Name :

Dr. Balbir Singh Bhatia

Designation :

Director

Date of Birth :

20.07.1942

Date of Appointment :

22.01.1987

DIN No.:

00551715

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	L17122PB1980PLC004242	VARDHMAN POLYTEX LTD	Director	30/09/2014	22/01/1987	-	Active	NO
2	U51909UP1985PLC056366	AMRIT BANASPATI COMPANY LIMITED	Director	14/09/2007	24/07/2007	22/07/2013	Active	NO
3	U51311DL2001PTC111748	OSWAL INDUSTRIAL ENTERPRISE PRIVATE LIMITED	Director	30/09/2013	11/02/2013	-	Active	NO

Name :

Mr. Ajay Chaudhry

Designation :

Director

Date of Birth :

19.10.1953

Date of Appointment :

30.09.2014

DIN No.:

00055733

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	L17122PB1980PLC004242	VARDHMAN POLYTEX LTD	Director	30/09/2014	08/06/1989	-	Active	NO
2	U67120CH2000PLC023244	L S E SECURITIES LIMITED	Nominee director	25/08/2011	08/09/2005	-	Active	NO
3	L17122DL1989PLC035050	SPORTKING INDIA LIMITED	Director	25/04/2006	25/04/2006	-	Active	NO
4	U17110PB2006PLC029518	F M HAMMERLE TEXTILES LIMITED	Director	22/09/2009	07/02/2009	-	Active	NO
5	U99999PB1994PLC014431	KANGARO INDUSTRIES LIMITED	Director	30/09/2014	05/07/2013	-	Active	NO

Name :

Mr. Manohar Dattatraya Kanitkar

Designation :

Director

Date of Birth :

11.12.1945

Date of Appointment :

30.09.2014

DIN No.:

00551803

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	L17122PB1980PLC004242	VARDHMAN POLYTEX LTD	Director	30/09/2014	31/01/2005	-	Active	NO
2	U17115PN2005PTC021029	SHIVAM TEXMECH PRIVATE LIMITED	Director	25/07/2005	25/07/2005	-	Active	NO
3	L51491PN1993PLC073706	ABHISHEK CORPORATION LIMITED	Director	17/09/2010	17/05/2010	15/06/2013	Active	NO
4	U74140MH2010PTC209485	SUVIN ADVISORS PRIVATE LIMITED	Director	27/10/2010	27/10/2010	03/03/2014	Active	NO

Name :

Mr. Adish Oswal

Designation :

Executive Director

Date of Appointment :

10.04.2014

DIN No.:

00009710

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	U51311DL2001PTC111748	OSWAL INDUSTRIAL ENTERPRISE PRIVATE LIMITED	Director	01/04/2008	20/07/2001	-	Active	NO
2	U67120PB1987PTC021769	ALLEPY INVESTMENT AND TRADING CO.PVT. LTD	Director	18/04/2002	18/04/2002	-	Active	NO
3	U17110PB2006PLC029518	F M HAMMERLE TEXTILES LIMITED	Director	12/01/2006	12/01/2006	-	Active	NO
4	U70102PB2008PTC031717	OSWAL INFRATECH PRIVATE LIMITED	Director	29/02/2008	29/02/2008	-	Active	NO
5	U74992PB2008PTC032154	OSWAL HOLDING PRIVATE LIMITED	Director	30/07/2008	30/07/2008	-	Active	NO
6	L17122PB1980PLC004242	VARDHMAN POLYTEX LTD	Whole-time director	01/04/2011	31/07/2009	-	Active	NO
7	U51109WB2007PTC113824	NIGHTNAGLE DEALCOM PRIVATE LIMITED	Director	23/01/2010	23/01/2010	-	Active	NO
8	U67190WB2007PTC118948	ALMA ASSETS CONSULTANCY PRIVATE LIMITED	Director	03/05/2010	03/05/2010	-	Active	NO
9	U17120MH1967PLC013669	CONFEDERATION OF INDIAN TEXTILE INDUSTRY	Director	28/09/2010	28/09/2010	30/09/2011	Active	NO

Name :

Mr. Amit Jian

Designation :

Director

Date of Birth :

28.10.1972

Date of appointment :

30.09.2014

DIN No.:

00020860

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	U17111DL2006PTC148870	SHINGORA FASHION FABRICS PRIVATE LIMITED.	Director	12/07/2011	17/05/2006	-	Active	NO
2	U17200DL2008PLC179117	SHINGORA TEXTILES LIMITED	Whole-time director	01/07/2014	05/06/2008	-	Active	NO
3	U91900PB2011NPL034564	YOUNG PRESIDENT'S ORGANISATION (PUNJAB CHAPTER)	Director	06/06/2011	23/03/2011	-	Active	NO
4	L17122PB1980PLC004242	VARDHMAN POLYTEX LTD	Director	30/09/2014	06/05/2013	-	Active	NO
5	AAC-0726	SHINGORA TECHNOLOGIES LLP	Designated Partner	10/02/2014	10/02/2014	-	Active	NO

Name :

Mr. Ashok Kumar Goyal

Designation :

Director

Date of Birth :

23.10.1959

Date of appointment :

30.09.2013

DIN No.:

06676556

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	L17122PB1980PLC004242	VARDHMAN POLYTEX LTD	Whole-time director	30/09/2013	01/09/2013	-	Active	NO

Name :

Mrs. Rakhi Oswal

Designation :

Director

Date of Birth :

03.09.1981

Date of appointment :

30.09..2014

DIN No.:

00009682

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	U51311DL2001PTC111748	OSWAL INDUSTRIAL ENTERPRISE PRIVATE LIMITED	Managing director	15/02/2013	01/04/2005	-	Active	NO
2	U51909DL2008PTC174350	OSWAL TRADECOM PRIVATE LIMITED	Director	21/02/2008	21/02/2008	-	Active	NO
3	L17122PB1980PLC004242	VARDHMAN POLYTEX LTD	Director	30/09/2014	12/08/2014	-	Active	NO

KEY EXECUTIVES

Name :	Dr. Rakesh Mittal
Designation :	Chief Executive Officer - Corporate
Name :	Mr. Parvinder Singh
Designation :	Chief Financial Officer
Name :	Mr. Sushil Sharma
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	347200	1.75
Bodies Corporate	10584002	53.41
Sub Total	10931202	55.16
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	10931202	55.16
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1800	0.01
Financial Institutions / Banks	1134	0.01
Foreign Institutional Investors	551200	2.78
Any other	150	0.00
Sub Total	554284	2.80
(2) Non-Institutions
Bodies Corporate	4493543	22.67
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	1445372	7.29
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	2365278	11.94
Any Others (Specify)
NRIs/OCBs	28278	0.14
Sub Total	8332471	42.05
Total Public shareholding (B)	8886755	44.84
Total (A)+(B)	19817957	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	19817957	100.00

BUSINESS DETAILS

Line of Business :

The company’s principal activity is manufacturing of yarn, garments and develop residential and commercial colony or project.

Products :

Grey Cotton Yarn(Carded) Grey Cotton Yarn(Combed) Compact Yarns Organic Cotton Yarns SUPIMA cotton Yarns Polyester / Cotton Yarns (Different Blends) 100% Modal and cotton/Modal blends 100% bamboo and cotton / Bamboo Blends Slub/Multicount Lycra/ Spandex Blended Core Spum Yarns Polyester Cotton Yarn Grey High Bulk Acrylic Yarn(VIP) Fiber/Tow Dyed Acrylic Yarn (Daffodil) Hank Dyes acrylic yarn (Dolly) Mink Blanket Yarn Acrylic Polyester(Grey and dyed) Acrylic/Nylon (Rainbow /Surbhi) Acrylic/wool (80:20 ,70:30, 50:50) Fancy Yarn

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Canara Bank
• State Bank of India
• State Bank of Patiala
• Punjab National Bank
• Corporation Bank
• Bank of India
• Axis Bank Limited
• Bank of Baroda
• Bank of Maharashtra
• Punjab and Sind Bank
• United Bank of India
• Allahabad Bank
• Jammu and Kashmir Bank
• Andhra Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term Loans:
Rupee Loan from Banks	1729.911	1742.287
Rupee Loan from Others	69.776	71.342
Working capital term loan (I)	330.723	654.355
Working capital term loan (II)	624.620	641.352
Funded interest term loan	360.069	422.994
Vehicle Loan	5.317	14.450
SHORT TERM BORROWING
Working Capital Loans From Bank	1242.748	617.447
Total	4363.164	4164.227

Banking Relations :	--
Auditors :
Name :	S.S. Kothari Mehta and Company Chartered Accountants
Address :	New Delhi, India
Subsidiary Company :	Oswal F.M. Hämmerle Textiles Limited Oswal Industrial Enterprise Private Limited FMH Verwaltungs GmbH
Enterprises over which Key Management Personnel (KMP) is able to exercise Significant Influence :	Panchsheel Textile Manufacturing and Trading Company Private Limited Enakshi Investments Private Limited Liberty Mercantile Company Private Limited Allepy Investment and Trading Company Private Limited Kent Investments Private Limited Ruby Mercantile Company Private Limited Boras Investment and Trading Company Private Limited Gagan Mercantile Company Private Limited Pioneer Mercantile India Private Limited Adesh Investment and Trading Company Private Limited Calgary Investment and Trading Company Private Limited Oswal Infratech Private Limited Oswal Tradecom Private Limited Oswal Holding Private Limited Nightnagle Dealcom Private Limited Alma Assets Consultancy Private Limited

CAPITAL STRUCTURE

As on: 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
70000000	Equity Shares	Rs.10/- each	Rs.700.000 Millions
	Total		Rs.700.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19817957	Equity Shares	Rs.10/- each	Rs.198.179 Millions
	Forfeited Shares		Rs.0.345 Million
	Total		Rs.198.524 Millions

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Particular	No of shares
Equity Shares At the beginning of the year	17842957
Add: Shares issued during the year	1975000
Outstanding at the end of the year	19817957

Note:

a) Out of total shares held by promoters & promoters group companies 1,09,07,202 equity shares (face value of Rs.10/-each) pledged with National Securities Depository Limited (NSDL) in favour of Canara Bank (Lead Banker).

b) Equity Shares arising out of conversion of the convertible warrants issued on Preferential basis.

Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each shareholder is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. During the year ended 31.03.2014, the amount of dividend recognized as distribution to equity shareholder was Rs. Nil (Previous year Rs. Nil).

Details of shareholders holding more than 5% Equity Shares in the Company

Particular	No of shares	Percentage
Panchsheel Textile Manufacturing And Trading Company Private Limited	44,02,917	22.22%
Alma Assets Consultancy Private Limited	43,62,325	22.01%
Swarnim Tie Up Private Limited	14,00,000	7.06%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	198.524	178.775	162.775
(b) Reserves & Surplus	990.364	843.994	775.236
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	98.500	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1287.388	1022.769	938.011
(3) Non-Current Liabilities
(a) long-term borrowings	2614.161	3108.475	2003.241
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	2.831
(d) long-term provisions	43.947	20.785	15.073
Total Non-current Liabilities (3)	2658.108	3129.260	2021.145
(4) Current Liabilities
(a) Short term borrowings	1242.748	914.909	1861.724
(b) Trade payables	719.192	479.540	285.962
(c) Other current liabilities	1255.364	1209.660	1337.188
(d) Short-term provisions	29.608	96.043	60.716
Total Current Liabilities (4)	3246.912	2700.152	3545.590
TOTAL	7192.408	6852.181	6504.746
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2827.666	2941.954	3167.925
(ii) Intangible Assets	4.620	5.397	10.637
(iii) Capital work-in-progress	76.575	141.510	215.697
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1365.048	1365.048	1365.048
(c) Deferred tax assets (net)	182.141	167.613	129.085
(d) Long-term Loan and Advances	94.755	103.385	85.746
(e) Other Non-current assets	236.299	95.652	0.000
Total Non-Current Assets	4787.104	4820.559	4974.138
(2) Current assets
(a) Current investments	6.955	9.199	9.199
(b) Inventories	921.917	509.947	310.151
(c) Trade receivables	659.501	567.041	461.469
(d) Cash and cash equivalents	131.034	174.681	48.350
(e) Short-term loans and advances	685.897	770.754	701.439
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	2405.304	2031.622	1530.608
TOTAL	7192.408	6852.181	6504.746

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	9227.180	7862.168	7492.730
		Other Income	201.612	93.468	214.171
		TOTAL (A)	9428.792	7955.636	7706.901
Less	EXPENSES
		Cost of Materials Consumed	6334.334	5164.377	5514.563
		Purchases of Stock-in-Trade	27.715	4.835	132.183
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(233.376)	(101.349)	307.215
		Employees benefits expense	530.226	458.978	382.625
		Other expenses	1692.346	1510.481	1443.744
		TOTAL (B)	8351.245	7037.322	7780.330
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1077.547	918.314	(73.429)
Less	FINANCIAL EXPENSES (D)		717.739	602.824	677.195
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		359.808	315.490	(750.624)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		326.585	366.007	295.969
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		33.223	(50.517)	(1046.593)
Less	TAX (H)		(14.528)	(62.223)	(232.471)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		47.751	11.706	(814.122)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	4412.361	3029.491	2855.259
	TOTAL EARNINGS		4412.361	3029.491	2855.259
	IMPORTS
		Raw Materials	66.415	0.000	22.400
		Stores & Spares	27.635	22.635	19.161
		Capital Goods	0.000	0.000	230.917
	TOTAL IMPORTS		940.500	22.635	272.478
	Earnings/ (Loss) Per Share (Rs.)		2.28	0.72	(50.12)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.52	0.15	(10.87)
Operating Profit Margin (PBITD/Sales)	(%)	11.68	11.68	(0.98)
Return on Total Assets (PBT/Total Assets}	(%)	0.60	(0.98)	(21.83)
Return on Investment (ROI) (PBT/Networth)		0.03	(0.05)	(1.12)
Debt Equity Ratio (Total Liability/Networth)		3.00	3.93	4.12
Current Ratio (Current Asset/Current Liability)		0.74	0.75	0.43

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	162.775	178.775	198.524
Reserves & Surplus	775.236	843.994	990.364
Net worth	938.011	1022.769	1188.888
long-term borrowings	2003.241	3108.475	2614.161
Short term borrowings	1861.724	914.909	1242.748
Total borrowings	3864.965	4023.384	3856.909
Debt/Equity ratio	4.120	3.934	3.244

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	7492.730	7862.168	9227.180
		4.931	17.362

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	7492.730	7862.168	9227.180
Profit	(814.122)	11.706	47.751
	(10.87%)	0.15%	0.52%

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	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

(Rs. In Millions)

Unsecured Loan	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Foreign Currency Convertible Bonds	239.640	461.380
Fixed Deposits	0.495	5.906
Others	50.000	50.000
Less: Amount disclosed under other current liability	(796.390)	(955.591)
SHORT TERM BORROWING
Letter of Credit/Sale Bill Discounting With Banks/Financial Institutions	0.000	277.369
Bill discounting from others	0.000	20.093
Total	(506.255)	(140.843)

Note:

The company has signed settlement agreement with Foreign Currency Convertible Bond holders of principal value of USD 85,00,000 (Rs. 4,61.380 millions) worth of bonds and redemption premium of USD 15,64,850 (Rs.84.940 millions) aggregating the total of USD 1,00,64,850 (Rs 5,463.20 millions) . Under the settlement agreement, the final amount including redemption premium has been settled at USD 5171513 which is payable in instalment up to year 2016. Out of the final settled amount of USD 51,71,513 the company in the current financial year has paid an amount of USD 26,07,823 (equivalent value bonds surrendered to the company) and accordingly an amount of USD 27,20,627 has been written back in the books of accounts . The Axis Bank bond holders reserves the right to exit the settlement agreement on the balance amount of USD 32,00,000, if there is reasonable ground for it to conclude (at its own discretion) that the Company may not fulfil its obligation and retains its rights to recompense.

LITIGATION DETAILS

CASE DETAILS FOR CASE CM-9004-CII-2013
Diary Number	954585	District	UT-CHANDIGARH
Category	--	Main case Details	ITA-55-2013
Party Name	COMMISSIONER OF INCOME TAX-I LUDHIANA V/S M/S VARDHIMAN POLYTEX LTD
Advocate Name	RAJESH KATOCHI	List Type	ORDINARY
Status	PENDING

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10428686	26/04/2013	59,700,000.00	STATE BANK OF PATIALA	Commercial Branch, Miller Ganj, Ludhiana, Punjab  - 141003, INDIA	B76092360
2	10428650	30/03/2013	581,300,000.00	Bank of Baroda	Industrial Area- B, Ludhiana, Punjab - 141003, IND  IA	B75884502
3	10410967	27/02/2013	723,800,000.00	STATE BANK OF INDIA	Industrial Finance Branch, Golden Tower, Ludhiana  , Punjab - 141003, INDIA	B70487855
4	10398966	31/12/2012	288,100,000.00	Bank of India	Ludhiana Mid Corporate Branch,, 579, 1st Floor, M  odel Town, Ludhiana, Punjab - 141002, INDIA	B66472663
5	10406370	31/12/2012	1,558,300,000.00	Canara Bank	Bharat Nagar Chowk, Ludhiana, Ludhiana, Punjab -  141001, INDIA	B68949692
6	10424282	24/12/2012	95,000,000.00	Punjab National Bank	Dhandhari Kalan, Ludhiana, Ludhiana, Punjab - 141  014, INDIA	B69082501
7	10304145	23/12/2013 *	79,000,000.00	RELIGARE FINVEST LIMITED	D3, P3B,, District Centre, Saket, New Delhi, Delh  i - 110017, INDIA	B92328202
8	10309483	27/08/2011	250,000,000.00	JAMMU & KASHMIR BANK LTD	INDUSTRIAL AREA-A ,CHEEMA CHOWK,, LUDHIANA, Punjab  - 141001, INDIA	B22249148
9	10299161	04/03/2013 *	420,300,000.00	Andhra Bank	Andhra Bank, SCO 202-204, Sector 17-C, Chandigarh  , Chandigarh, Chandigarh - 160017, INDIA	B72383920
10	10297373	27/06/2011	250,000,000.00	UNITED BANK OF INDIA	202, SAI TOWERS, INDUSTRIAL AREA-I, NEAR CHEEMA C  HOWK, OPP. POLICE POST JANAKPURI, LUDHIANA, Punjab  - 140003, INDIA	B16917130

BUSINESS PERFORMANCE

The Company's business operations performance as follows:

• SALES REVENUE

During the year under review, the turnover of the Company was Rs. 9227.243 millions as against Rs. 7862.330 millions in 2012-13, registering an increase of 17.36%. The FOB value of exports during the year increased to Rs. 4412.361millions from Rs.3029.491millions in 2012-13, registering a growth of 45.65%.

• PROFITABILITY

During the year, the Company earned a profit before interest, depreciation and tax of Rs.1077.547 millions as against of Rs.918.314 millions during the previous year. The Company earned a net profit after tax of Rs.477.51 millions during the current year against of Rs.11.706 millions in the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE, DEVELOPMENT and FUTURE OUTLOOK

India’s textiles and clothing industry is one of the mainstays of the national economy. It is also one of the largest contributing sectors to Indian economy in terms of direct and indirect employment generation and net foreign exchange earnings. Textile sector contributes about 14% to industrial production, 4% to the Gross Domestic Product (GDP) and 27% to the country’s foreign exchange inflows. It provides direct employment to over 45 million people and second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of the national economy.

The Indian textiles industry accounts for about 24% of the world’s spindle capacity and 8% of global rotor capacity. The cotton yarn production in India has increased by about 10% during April 2013- February 2014 and the total cloth production grew by 3% during the period April 2013 - February 2014. The Man-Made Fibers (MMF) in Indian textile has successfully established its presence in almost all the countries across the globe. MMF production recorded an increase of 4% during the period April 2013 - February 2014.

The India’s cotton consumption grew by 12% to 4.8 million tons and is expected to grow by 7% to 5.4 million tons in 2014-15. World ending stocks are forecast to increase by 12% in 2013-14 to 20 million tons, and then to expand by another 5% in 2014-15 to 21 million tons. The projected accumulation of cotton stocks will weight on international cotton prices in 2014-15, particularly as more stocks will be held outside of China.

In the global exports of Textiles, India has improved its ranking to emerge as the second largest textile exporter.

Currently, India textiles exports worth US$ 40.2 billion, while the total global textiles exports stand at US$ 772 billion, with India commanding 5.2% of the share. The rise in textile exports from India is largely attributed to the growth in apparel and clothing sector as this account for almost 43% of the share. The Indian textile and apparel industry has potential to reach at size US$ 221 billion by 2021. Since most of the capacity expansions have taken place in normal/ commodity products, the severity of competition and decrease in profit margins is inevitable. Thus, in order to survive, sustain and thrive in the global market, it would be necessary to differentiate and improve presence in value added products in the near future. Further, Technical textile is expected to grow at

a faster pace as compared to other textiles products. It would be prudent to be an early bird and earmark

some investments for this area for better and sustainable profitability.

FIXED ASSETS:

Tangible Assets:

• Freehold Land and Site Development
• Lease Hold Land
• Building
• Plant and Machinery
• Furniture and Fixture
• Vehicles

Intangible Assets:

• Trademarks
• 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 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.61.45
UK Pound	1	Rs.97.75
Euro	1	Rs.76.67

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUM
Report Prepared by :	JYTK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	1
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		12

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.