MIRA INFORM REPORT

Report No. :	329570
Report Date :	30.06.2015

IDENTIFICATION DETAILS

Name :	VARDHMAN TEXTILES LIMITED (w.e.f. 05.09.2006) AURO TEXTILES (DIVISION OF VARDHMAN TEXTILES LIMITED)
Formerly Known As :	MAHAVIR SPINNING MILLS LIMITED
Registered Office :	Chandigarh Road, Ludhiana – 141 010, Punjab
Tel. No.:	91-161-2662543-47/ 2670707/ 09/ 2228943-48
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	08.10.1973
Com. Reg. No.:	16-003345
Capital Investment / Paid-up Capital :	Rs. 636.500 Million
CIN No.: [Company Identification No.]	L17111PB1973PLC003345
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	JLDM03450G / JLDM03167D
PAN No.: [Permanent Account No.]	AABCM4692E
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing of Cotton Yarn, Synthetic Yarn and Woven Fabric.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

A (69)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is well established company and it is having good track record. The company has a healthy business risk profile, marked by a strong market position in the textile sector. The company business risk profile is also strengthened by its strong operating efficiencies of the company. Rating take consideration on company’s strong net worth position and group’s diversified portfolio with a presence in the yarn, fabric, thread, and steel businesses. Moreover, the rating get strength on combination of the business and financial risk profiles of VTL, its subsidiaries, and its group company. This is because all these entities, collectively referred to as the “Vardhman Group”, and have an integrated treasury and strong intra-group operational linkages. Trade relation are fair. Business is active. Payments are reported to be regular as per commitment. In view of strong operational and financial base backed by reputed market position, the company can be considered for the business dealings on its 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, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Bank Facilities = AA
Rating Explanation	High degree of safety and very low credit risk.
Date	02.06.2015
Rating Agency Name	CRISIL
Rating	Short Term Bank Facilities = A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	02.06.2015

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 31-03-2013.

INFORMATION DECLINED

Management Non-Corporative 91-161-2662543/2670707

LOCATIONS

Registered / Corporate Office :	Chandigarh Road, Ludhiana – 141010, Punjab, India
Tel. No.:	91-161-2662543-47/ 2670707/ 09/ 2228943-48
Fax No.:	91-161-2662542/ 2664541/ 2670503/ 2601040/ 2601048/ 2602710/ 2222616
E-Mail :	vssidh@rnj.sprintrpg.ems.vsnl.net.in secretarial.lud@vardhaman.com neerajgupta@vardhaman.com
Website :	http://www.vardhman.com
Location :	Owned
Locality :	Commercial
Head Office :	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
Plants :	· Anant Spinning Mills New Industrial Area, Mandideep - 462046, Madhya Pradesh, India · Arihant Spinning Mills Industrial Area, Malerkotla-148023, Punjab, India · Arisht Spinning Mills Village Baddi, Tehsil Nalagarh, District Solan -173205, Himachal Pradesh, India · Auro Dyeing Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Auro Weaving Mills Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Auro Textiles Sai Road, Post No 17, Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Mahavir Spinning Mills (Gassed Mercerised Yarn Unit) Phagwara Road, Hoshiarpur-146001, Punjab, India · Mahavir Spinning Mills (Textile Division) Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Vardhman Spinning Mills, Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Vardhman Spinning and General Mills (Unit-I and II), Chandigarh Road, Ludhiana-141010, Punjab, India · Vardhman Fabrics Budhni, District Sehore, Madhya Pradesh, India · Vardhman Yarns Budhni, District Sehore, Madhya Pradesh, India · Vardhman Fabrics (Power Division) Budhni, District Sehore, Madhya Pradesh, India · Vardhman Yarns (Power Division) Budhni, District Sehore, Madhya Pradesh, India
Branch Offices :	Located at: · P-22, 3rd Floor, Flat No.6, C.I.T. Road, Scheme IV, Kolkata - 700014, West Bengal, India · Chandigarh Road, Ludhiana - 141010, Punjab, India · 314, Solaris II, Opposite L and T Gate No.6, Saki Vihar Road, Andheri (East), Mumbai - 400072, Maharashtra, India · 504, Dalamal House, Nariman Point, Mumbai - 400021, Maharashtra, India · 309-310, Surya Kiran Building, 19, Kasturba Gandhi Marg, New Delhi - 110001, India · 377-B, Muthuswami Industrial Complex, Palladam Road, Tirupur - 638604, Tamilnadu, India · 1^st Floor, Palm Court, Opposite Management Development Institute, MG Road, Sector - 16, Gurgaon - 122001, Haryana, India

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Shri Paul Oswal
Address:	Auro Mirra Bhawan, 2722, Gurdev Nagar, Pakhowal Road, Ludhiana - 141001, Punjab, India
Designation :	Managing Director
Date of Birth/Age :	73 Years
Qualification :	M. Com.
Experience :	48 Years
Name :	Mr. Ashok Kumar Kundra
Designation :	Director
Address:	House No. 1138, Sector 44-B, Chandigarh, 160047, Chandigarh, India
Date of Appointment :	28.01.2009
Name :	Mr. Neeraj Jain
Designation :	Whole-time director
Address:	B-19-167/1, Col. Gurdial Singh Road,, Civil Lines, Ludhiana, 141001, Punjab, India
Date of Appointment :	31.03.2010
Name :	Mr. Prafull Anubhai
Address:	9, Pathik,, Shitalbag, Paldi, Ahmedabad, 380007, Gujarat, India
Designation :	Director
Date of Birth/Age :	20.01.1938
Qualification :	B.Com, B.S.C. (Eco.) – London
Date of Appointment :	26.07.1980
Name :	Mr. Subash Khanchand Bijlani
Address:	J-17, South City - I, Gurgaon -122001, Haryana, India
Designation :	Director
Date of Birth/Age :	06.09.1942
Qualification :	B. Tech, PGDC in Mgt and Finance
Date of Appointment :	30.03.2005
Name :	Mr. Suresh Kishinchand Khatanhar
Designation :	Nominee director
Address:	8 A, The peregrine, Veer Savarkar Marg, Prabhadevi, Mumbai - 400025, Maharashtra, INDIA
Name :	Mr. Darshan Lal Sharma
Designation :	President and Executive Director
Date of Birth/Age :	10.11.1948
Expertise in specific functional area :	Business Executive having experience of more than 38 years in Textile and Sewing Thread Business.
Qualification :	B.Sc. (Engg.), M.B.A.
Date of Appointment :	08.05.1985
Name :	Mr. Shravan Talwar
Address:	B-101, Defence Colony, New Delhi - 110024, Delhi, India
Designation :	Director
Date of Birth/Age :	17.04.1970
Qualification :	B.A. (Computational and Applied Maths and Economics), M.B.A.
Date of Appointment :	29.01.2010
Name :	Mrs. Suchita Jain
Designation :	Executive Director
Date of Birth/Age :	20.03.1968
Qualification :	M.Com
Date of Appointment :	29.01.2010
Name :	Mr. Sachit Jain
Designation :	Executive Director
Address:	Auro Mirra Bhawan, 2722, Gurdev Nagar, Pakhowal Road, Ludhiana - 141001, Punjab, India
Date of Birth/Age :	08.07.1966
Qualification :	B. Tech., MBA
Date of Appointment :	30.03.2005
Name :	Mr. Devendrabhushan Jain
Designation :	Director
Address:	Rattan Kunj, 7 Bunglows Road, Vesava (Versova),, Andheri (W), Near Nana Nani Park, Mumbai, 400061, Maharashtra, India

KEY EXECUTIVES

Name :	Ms. Karan Kamal Walia
Designation :	Company Secretary
Name :	Mr. Rajeev Thapar
Designation :	CGM (Finance, Accounts and Taxation)
Name :	Mr. Neeraj Gupta
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2015

Category of Shareholder	Total No. of Shares	As a % of (A+B+C)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1461658	2.30
Bodies Corporate	37013302	58.15
Any Others (Specify)	895053	1.41
Sub Total	39370013	61.85
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	39370013	61.85
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	8247091	12.96
Financial Institutions / Banks	71813	0.11
Insurance Companies	101575	0.16
Foreign Institutional Investors	6528745	10.26
Sub Total	14949224	23.49
(2) Non-Institutions
Bodies Corporate	708287	1.11
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	4878817	7.66
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1932058	3.04
Any Others (Specify)	1813480	2.85
Trusts	1634995	2.57
Non Resident Indians	178485	0.28
Sub Total	9332642	14.66
Total Public shareholding (B)	24281866	38.15
Total (A)+(B)	63651879	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	63651879	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Cotton Yarn, Synthetic Yarn and Woven Fabric.

Products :

ITC Code No.	Product Descriptions
52.05	Cotton Yarn
55.09	Yarn of Synthetic
52.08	Woven Fabric of Cotton

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

Information declined by the management

Bankers :

• State Bank of Patiala
• Allahabad Bank
• ICICI Bank Limited
• Punjab National Bank
• State Bank of India
• Bank of India
• Corporation Bank
• IDBI Bank Limited
• Canara Bank
• Standard Chartered Bank
• State Bank of Hyderabad
• State Bank of Mysore
• Axis Bank Limited
• Exim Bank
• Oriental Bank of Commerce

Facilities :

(Rs. In Million)

SECURED LOANS	31.03.2015 (Rs. In Millions)	31.03.2014 (Rs. In Millions)
LONG-TERM BORROWINGS
Term loans
- From banks	NA	19250.600
SHORT TERM BORROWINGS
Working capital loans - From banks	NA	7975.101
Total	NA	27225.701
LONG-TERM BORROWINGS a). Details of security for term loans 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 including movable machinery, machinery parts, tools and accessories and other movable both present and future (except book debts), subject to charges created or to be created in favour of the bankers for securing the working capital limits. SHORT TERM BORROWINGS Details of security for working capital borrowings Working capital borrowings from banks are secured by way of hypothecation of entire present and future tangible current assets of the company as well as a second charge on the entire present and future fixed assets of the company. Terms :- i) From banks carries interest @ 9.70% to 12.50% p.a. (Previous year 12.25% to 13.25% p.a.) ii) From related parties carries interest @ 9.50% to 10% p.a. (Previous year 9.25% to 10% p.a.)

Auditors :
Name :	S.C. Vasudeva and Company Chartered Accountants
Address :	New Delhi, India
Subsidiaries [As on 31.03.2014] :	· VMT Spinning Company Limited · Vardhman Acrylics Limited · VTL Investments Limited · Vardhman Yarns and Threads Limited · Vardhman Nisshinbo Garments Company Limited (Formerly known as Vardhman Texgarments Limited)
Associates [As on 31.03.2014] :	· Vardhman Textile Components Limited · Vardhman Spinning and General Mills Limited · Vardhman Special Steels Limited (w.e.f 8th April, 2011)
Enterprises over which key Management Personnel and relative of such personnel is able to exercise significant influence or control [As on 31.03.2014++] :	· Vardhman Holdings Limited · Vardhman Apparels Limited · Smt. Banarso Devi Oswal Public Charitable Trust · Sri Aurobindo Socio Economic and Management Research Institute · *Adinath Investment and Trading Company · *Devakar Investment and Trading Company Limited · *Srestha Holdings Limited · *Santon Finance and Investment Company Limited · *Flamingo Finance and Investment Company Limited · *Ramaniya Finance and Investment Company Limited · *Marshall Investment and Trading Company (Private) Limited · *Pardeep Mercantile Company (Private) Limited · *Plaza Trading Company (Private) Limited · *Anklesh Investments (Private) Limited · *Syracuse Investment and Trading Company (Private) Limited · *Mahavir Spinning Mills (Private) Limited (Formerly known as Vardhman Textiles Processors (Private) Limited) · **Northern Trading Company · **Ambar Syndicate · **Paras Syndicate · **Adinath Syndicate · **Eastern Trading Company

NOTE:

Only Loan Transactions have taken place with these Companies.

No transaction has taken place during the year.

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital : Not Available

Issued, Subscribed and Paid-up Capital : Rs. 636.500 Million

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
90000000	Equity Shares	Rs. 10/- each	Rs. 900.000 Million
10000000	Redeemable Cumulative Preference Shares	Rs. 10/- each	Rs. 100.000 Million
	Total		Rs. 1000.000 Million

Issued, Subscribed and Paid-up Capital :

No. of Shares	Type	Value	Amount
63651879	Equity Shares	Rs. 10/- each	Rs. 636.519 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	636.500	636.500	636.519
(b) Reserves & Surplus	30197.300	27846.700	22129.177
(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)	30833.800	28483.200	22765.696
(3) Non-Current Liabilities
(a) long-term borrowings	13172.600	19250.600	19849.605
(b) Deferred tax liabilities (Net)	1984.800	2661.500	2271.425
(c) Other long term liabilities	144.600	123.400	102.777
(d) long-term provisions	51.500	44.200	41.652
Total Non-current Liabilities (3)	15353.500	22079.700	22265.459
(4) Current Liabilities
(a) Short term borrowings	4685.500	8355.000	7576.464
(b) Trade payables	1295.500	966.100	462.790
(c) Other current liabilities	10043.200	8085.300	5674.843
(d) Short-term provisions	836.700	832.600	487.981
Total Current Liabilities (4)	16860.900	18239.000	14202.078
TOTAL	63048.200	68801.900	59233.233
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	25730.500	28592.600	23278.143
(ii) Intangible Assets	5747.700	4931.800	77.051
(iii) Capital work-in-progress	0.000	0.000	2128.951
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	2931.902
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	723.100	889.500	1425.940
(e) Other Non-current assets	1238.500	300.600	500.208
Total Non-Current Assets	33439.800	34714.500	30342.195
(2) Current assets
(a) Current investments	994.000	2191.600	2661.120
(b) Inventories	16367.400	18715.400	14994.448
(c) Trade receivables	6768.200	7387.600	6319.161
(d) Cash and cash equivalents	1755.500	527.400	266.291
(e) Short-term loans and advances	3544.500	5086.600	4471.366
(f) Other current assets	178.800	178.800	178.652
Total Current Assets	29608.400	34087.400	28891.038
TOTAL	63048.200	68801.900	59233.233

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2012
	SALES
	Income	58871.500	52253.700	39180.015
	Other Income	129.600	105.200	605.707
	TOTAL	59001.100	52358.900	39785.722
Less	EXPENSES
	Cost of Materials Consumed	29005.200	25123.900	22003.383
	Purchases of Stock-in-Trade	744.200	571.300	310.170
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	1310.300	(2294.700)	1269.049
	Power And Fuel	6078.300	5448.800	0.000
	Employees benefits expense	3508.300	3201.600	2211.299
	Other expenses	7358.200	7054.600	8458.267
	TOTAL	48004.500	39105.500	34252.168
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	10996.600	13253.400	5533.554
Less	FINANCIAL EXPENSES	1215.400	1518.300	1732.227
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	9781.200	11735.100	3801.327
Less/ Add	DEPRECIATION/ AMORTISATION	4888.500	2941.300	2346.718
	PROFIT/ (LOSS) BEFORE TAX	4892.700	8793.800	1454.609
Less	TAX	1301.600	2275.000	357.970
	PROFIT/ (LOSS) AFTER TAX	3591.100	6518.800	1096.639
	Earnings / (Loss) Per Share (Rs.)	56.42	102.42	17.23

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	N.A	19250.640	19849.605
Cash generated from operations	N.A	N.A	N.A

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	6.10	12.48	2.80
Operating Profit Margin (PBIDT/Sales)	(%)	18.68	25.36	14.12
Return on Total Assets (PBT/Total Assets}	(%)	7.76	12.78	2.69
Return on Investment (ROI) (PBT/Networth)		0.16	0.31	0.06
Debt Equity Ratio (Total Debt /Networth)		0.58	1.65	2.08
Current Ratio (Current Asset/Current Liability)		1.76	1.87	2.03

STOCK PRICES

Face Value	Rs.10.00/-
Market Value	Rs. 658.00/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	636.519	636.500	636.500
Reserves & Surplus	22129.177	27846.700	30197.300
Net worth	22765.696	28483.200	30833.800
long-term borrowings	19849.605	19250.600	13172.600
Short term borrowings	7576.464	8355.000	4685.500
Current maturities of long-term debts	19849.605	19250.640	0.000
Total borrowings	47275.674	46856.240	17858.100
Debt/Equity ratio	2.077	1.645	0.579

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	39180.015	52253.700	58871.500
		33.368	12.665

b

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	39180.015	52253.700	58871.500
Profit	1096.639	6518.800	3591.100
	2.80%	12.48%	6.10%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	Yes
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS:

Diary Number	1087359	District	Ludhiana
Category	--	Main Case Details	CRM-M-37623-2013
Party Detail	M/S VARDHMAN UDHYOG AND ANR   V/S M/S VARDHMAN TEXTILES LIMITED	List Type
Advocate Name	SOURABH GOEL	Next date
STATUS	PENDING

CORPORATE INFORMATION (As on 31.03.2015)

Vardhman Textiles Limited (The Company) is a public Company incorporated under the provisions of the Companies Act, 1956 on 8th October, 1973. The name of the Company at its incorporation was Mahavir Spinning Mills Limited and subsequently changed to Vardhman Textiles Limited on 5th September, 2006. The Company is engaged in manufacturing of Cotton yarn, Synthetic yarn and woven fabric.

UNSECURED LOAN

PARTICULARS	31.03.2015 (Rs. In Millions)	31.03.2014 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans repayable on demand
From bank		201.867
From related parties	NA	160.558
		17.474
Total	NA	379.899

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10558928	24/03/2015	1,350,000,000.00	STATE BANK OF INDIA	IFB, GOLDEN TOWER, DHOLEWAL CHOWK, LUDHIANA, PUNJAB - 141003, INDIA	C48989784
2	10508490	21/06/2014	440,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, GOLDEN TOWER, DHOLEWAL CHOWK, LUDHIANA, PUNJAB - 141003, INDIA	C10904514
3	10443552	04/03/2014 *	450,000,000.00	STATE BANK OF INDIA	IFB, GOLDEN TOWER, DHOLEWAL CHOWK, LUDHIANA, PUNJAB - 141003, INDIA	C05014287
4	10435934	04/03/2014 *	435,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR-21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 4000  05, INDIA	C05707757
5	10426904	04/03/2014 *	1,600,000,000.00	STATE BANK OF INDIA	IFB, GOLDEN TOWER, DHOLEWAL CHOWK, LUDHIANA, PUNJAB - 141003, INDIA	C05014964
6	10348797	28/12/2012 *	2,650,000,000.00	STATE BANK OF PATIALA	COMMERCIAL BRANCH, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA	B66523994
7	10324897	25/06/2012 *	1,300,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR-21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B44004083
8	10307728	25/06/2012 *	4,000,000,000.00	IDBI BANK LIMITED	INDIAN RED CROSS SOCIETY BUILDING, 1, RED CROSS ROAD, POST BAG NO. -231, NEW DELHI, DELHI - 110001,  INDIA	B43941921
9	10304839	25/06/2012 *	2,350,000,000.00	STATE BANK OF INDIA	S.C.B MILLER GANJ,, PAHWA HOSPITAL COMPLEX (MID C  ORPORATE SALES HUB), LUDHIANA, PUNJAB - 141003, INDIA	B43971183
10	10293871	27/05/2013 *	750,000,000.00	KOTAK MAHINDRA BANK LIMITED	7TH FLOOR, AMBADEEP BUILDING, 14 K G MARG, NEW DELHI, DELHI - 110001, INDIA	B77078913

CONTINGENT LIABILITIES:

Particulars	31.03.2014 (Rs. In Millions)
(i) Claims not acknowledged as debts	79.029
(Ii) Bank Guarantees and Letters of Credit outstanding	6,40.784
(iii) Bills discounted with banks	7,88.434
(iv) Other monies for which the Company is contingently liable a) The Company has contested the additional demand in respect of Sales Tax, Excise Duty etc., amounting to H1,31.907 Million (Previous Year H51.502 Million). As against this a sum of H10.214 Million (Previous Year H10.171 Million) has been deposited under protest and stands included under the head “other recoverable in note-21 - Short-term loans and advances “. The Company has filed an appeal with the Appellate Authorities and is advised that the demand is not in accordance with law. No provision, therefore, has been made in accounts in respect thereof. b) The Company has contested the additional demand in respect of income tax amounting to H14,68.178 Million (Previous Year H5.036 Million). Pending appeal with appellate authorities, provision of H11,69.508 Million (Previous Year H2.323 Million) has not been made in the books of account as the Company is confident to get the desired relief. c) The Company had taken over the textile undertaking of Vardhman Holdings Limited (formerly known as Vardhman Spinning & General Mills Limited) by a scheme of Arrangement and De-merger. An injunction was obtained against the London Branch of the said textile undertaking for preventing disposal of assets upto the value of Pound Sterling 0.299 Million as a result of a court case pending in London for alleged non-fulfilment of an agreement of cotton purchase. The said matter had been decided against the said textile undertaking and accordingly, Pound Sterling 0.048 Million lying in the bank account at London had been paid to the claimant pursuant to the Order of the Court. The said amount was written off in the books of the said undertaking by way of debit to the statement of Profit and Loss. No provision has been made for the balance decreed amount by the undertaking in view of the fact that the said undertaking was prevented by force majure in fulfiling its part of contract. The Company as successor to the textile undertaking is contesting this matter in Indian Courts and is confident that there would not be any further liability in this regard.

FIXED ASSETS

Tangible Assets:

• Free-hold Land
• Leasehold Land
• Buildings
• Plant and Equipment
• Furniture and Fixtures
• Vehicles
• Office equipment

Intangible Assets:

• Computer Software
• Right to use Power lines

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.63.60
UK Pound	1	Rs.100.09
Euro	1	Rs.71.23

INFORMATION DETAILS

Information Gathered by :	GYA
Analysis Done by :	KSH
Report Prepared by :	RKI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		69

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.