Vardhman Textiles Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 28, 2008, has took note of the status of Scheme of Arrangement, Reorganisation and Demerger by and amongst Vardhman Textiles Ltd (VTXL), Vardhman Threads Ltd (VTL) (a 100% subsidiary of VTXL), Vardhman Yarns and Threads Ltd (VYTL) (a subsidiary of VTXL) and their respective shareholders and creditors, providing for the transfer of the Sewing Thread business of VTXL, on slump sale basis as well as demerger of Sewing Thread business of VTL, to VYTL. Further, the Board of Directors of VTXL, discussed the overall perspective of Sewing Thread business. The Board of Directors took the view that the textile and clothing business has acquired a global dimension and it may be desirable and pertinent to explore the possibilities of strategic relationship with one of the international players in Sewing Thread business so that the business can meet the demand of users of sewing thread particularly when they have to ensure compliance of Specifications and Standards set out by major Buying Houses and Retailers. The Board of Directors, therefore, empowered Mr. D L Sharma, President & Executive Director and Mr. Neeraj Jain, CFO to explore possibilities for such tie ups including overseas investments for Sewing Thread business and, it required, to appoint Consultants / Advisors for the purpose. Vardhman Textiles Ltd has informed BSE that the Scheme of Arrangement, Re-organisation and Demerger by and amongst Vardhman Textiles Ltd (VTXL), Vardhman Threads Ltd (VTL) (a 100% subsidiary of VTXL), Vardhman Yarns and Threads Ltd (a subsidiary of VTXL) and their respective shareholders and creditors has been sanctioned by the Hon'ble Punjab and Haryana High Court and Order for the same has been received on March 17, 2008. The Scheme provides for the transfer of the Sewing Thread Business of VTXL on slump sale basis and demerger of the Sewing Thread business of VTL to VYTL. The Scheme will become effective after the Order sanctioning it is filed with the Registrar of Companies. To achieve the objective of possible creations of strategic relationship with an international thread entity, the Company has signed a Joint Venture Agreement on March 24, 2008 with American & Efird Inc.(A&E), a subsidiary of Ruddick Corporation, USA to manufacture, distribute and sell Sewing Thread for Industrial and Consumer markets in India and for Exports to other countries. The Joint Venture will be implemented in Vardhman Yarns and Threads Ltd (VYTL), a subsidiary Company of Vardhman Textiles Ltd. This Joint Venture Agreement envisages A&E's participation in equity, initially to the extent of 35% of paid-up equity share capital with an option to increase its share in equity up to 49% within the next five years. The Joint Venture will come into effect after the Board of VYTL allots shares to A&E and to the Company after fulfillment of specified conditions and completion of obligations by the Parties to the Agreement. The Company expect that to happen some time during April 2008. The management expects that this strategic alliance will help the thread business of Vardhman by integrating with the global operations of A&E and its subsidiaries. (As per BSE Announcement Website dated on 24/03/2008) With reference to the earlier announcement dated March 24, 2008 about the Scheme of Arrangement, Re-organisation and Demerger by and amongst Vardhman Textiles Ltd (VTXL), Vardhman Threads Ltd (VTL) (a 100% subsidiary of VTXL), Vardhman Yarns and Threads Ltd (a subsidiary of VTXL) and their respective shareholders and creditors has been sanctioned by the Hon'ble Punjab and Haryana High Court and Order for the same has been received on March 17, 2008. The Scheme provides for the transfer of the Thread Business of VTXL on slump sale basis and demerger of the Thread business of VTL to VYTL, Vardhman Textiles Ltd has informed BSE that now the above-referred Order has been filed with the Registrar of Companies on April 01, 2008 and has thus become effective from the said date. (As per BSE Announcement Website dated on 01/04/2008)