MIRA INFORM REPORT

Report Date :

16.12.2014

IDENTIFICATION DETAILS

Name :	VD GLOBAL PRIVATE LIMITED
Registered Office :	HW 5012-13, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	27.03.2014
Com. Reg. No.:	11-255083
Capital Investment / Paid-up Capital :	Rs.50.000 Millions
CIN No.: [Company Identification No.]	U36993MH2014PTC255083
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAECV7947N
Legal Form :	Private Limited Liability Company
Line of Business :	Polishing, manufacturing, import and export of cut and polished diamonds, jewellery etc. and the company shall also be continuing the power generation business from wind energy for its own captive use and consumption.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a successor of Vallabhbhai Dhanjibhai and Co. partnership concern incorporated during the year 1983 and later in 27 March, 2014 it got converted into VD Global Private Limited. It is having satisfactory track record. Mr. Modi (Account Manager) has provided us with all information. Financial position of the company seems to be decent. However, trade relations are faire. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = BBB-
Rating Explanation	Have moderate degree of safety and carry moderate credit risk.
Date	24.03.2014

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 PARTED BY

Name :	Mr. Modi
Designation :	Accounts Manager
Contact No.:	91-22-43629999
Date :	15.12.2014

LOCATIONS

Registered Office :	HW 5012-13, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-43629999 / 23692724 / 23634657
Fax No.:	91-22-23644975
E-Mail :	csmountantony13@gmail.com accounts@vdgloabl.in
Factory :	Located at Varacha Road, Surat, Gujarat, India

DIRECTORS

As on 30.09.2014

Name :	Mr. Vallabhbhai Dhanjibhai Vaghasia
Designation :	Director
Address :	1801/1802, Dhavalgiri Building, 18th Floor, Papanaswadi, Nana Chowk, Grant Road, Mumbai - 400036, Maharashtra, India
Date of Appointment :	27.03.2014
DIN No.:	02594332
Name :	Mr. Vandit Vallabhbhai Vaghasia
Designation :	Director
Address :	1801/1802, Dhavalgiri Building, 18th Floor, Papanaswadi, Nana Chowk, Grant Road, Mumbai - 400036, Maharashtra, India
Date of Appointment :	27.03.2014
DIN No.:	02594529
Name :	Mr. Bhavanbhai Dhanjibhai Vaghasia
Designation :	Director
Address :	202-Apanch Ratna Tower, L H Road, Surat - 395006, Gujarat, India
Date of Appointment :	27.03.2014
DIN No.:	02595451
Name :	Mr. Jayeshkumar Limbabhai Bharodiya
Designation :	Director
Address :	33, Enterprise Apartment, Forjet Hill Road, Tardeo, Mumbai - 400036, Maharashtra, India
Date of Appointment :	27.03.2014
DIN No.:	02595473
Name :	Mr. Muljibhai Dhanjibhai Vaghasia
Designation :	Director
Address :	Plot No.44 Vijayraj Nagar, Bhavnagar - 364002, Gujarat, India
Date of Appointment :	27.03.2014
DIN No.:	02604133
Name :	Mr. Sumit Muljibhai Vaghasia
Designation :	Director
Address :	1801, Dhavalgiri Building, 18th Floor, Papanaswadi Nana Chowk, Behind Golden Crown Hotel, Mumbai - 400036, Maharashtra, India
Date of Appointment :	27.03.2014
DIN No.:	06917751
Name :	Mr. Kenil Bhavanbhai Vaghasia
Designation :	Director
Address :	A-29,Trikam Nagar-1, L.H. Road, Surat - 395006, Gujarat, India
Date of Appointment :	27.03.2014
DIN No.:	06917762

KEY EXECUTIVE

Name :	Mr. Modi
Designation :	Accounts Manager

MAJOR SHAREHOLDERS

As on 30.09.2014

Names of Shareholders	No. of Shares	% of Holding
Vallabhbhai Dhanjibhai Vaghasia	500000	10.00
Vandit Vallabhbhai Vaghasia	1150000	23.00
Sumit Muljibhai Vaghasia	1150000	23.00
Bhavanbhai Dhanjibhai Vaghasia	500000	10.00
Jayeshkumar Limbabhai Bharodiya	50000	1.00
Muljibhai Dhanjibhai Vaghasia	500000	10.00
Kenil Bhavanbhai Vaghasia	1150000	23.00
Total	5000000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Polishing, manufacturing, import and export of cut and polished diamonds, jewellery etc. and the company shall also be continuing the power generation business from wind energy for its own captive use and consumption.
Products :	Diamonds
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Diamonds
Countries :	European Countries Asian Countries USA UK Far East Switzerland Middle East
Imports :
Products :	Diamonds
Countries :	Israel China Malaysia Hong Kong
Terms :
Selling :	Cash and Advance Payment
Purchasing :	Cash and Advance Payment

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

1000 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	Opera House, Mumbai, Maharashtra, India
Person Name (With Designation)	Mr. Mane
Contact Number	91-22-23690695
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

SECURED LOANS	27.03.2014 To 31.03.2014 Rs. In Millions
LONG TERM BORROWINGS
Rupee term loans from banks	14.963
SHORT TERM BORROWINGS
Rupee term loans from banks	1782.339
Loans and advances from related parties	285.000
Total	2082.302

Banking Relations :	--
Auditors :
Name :	Rajiv N Shah and Associates Chartered Accountants
Address :	A-001 Shreenath Darshaan, Factory Lane, Near M.K. High School, Borivali (West), Mumbai, Maharashtra, India
PAN No.:	AAFPS1156E
Memberships :	--
Collaborators :	--
Sister Concern :	Not Divulged

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

VD GLOBAL PRIVATE LIMITED

(ABRIDGED BALANCE SHEET)

SOURCES OF FUNDS	27.03.2014 To 31.03.2014
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	50.000
(b) Reserves & Surplus	950.000
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	1,000.000
(3) Non-Current Liabilities
(a) long-term borrowings	15.568
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	0.000
(d) long-term provisions	0.000
Total Non-current Liabilities (3)	15.568
(4) Current Liabilities
(a) Short term borrowings	2,067.339
(b) Trade payables	1,356.760
(c) Other current liabilities	34.745
(d) Short-term provisions	0.000
Total Current Liabilities (4)	3,458.844
TOTAL	4,474.412
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	225.938
(ii) Intangible Assets	0.000
(iii) Capital work-in-progress	0.000
(iv) Intangible assets under development	0.000
(b) Non-current Investments	10.460
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	108.447
(e) Other Non-current assets	0.000
Total Non-Current Assets	344.845
(2) Current assets
(a) Current investments	0.000
(b) Inventories	2,050.251
(c) Trade receivables	1,907.204
(d) Cash and cash equivalents	156.468
(e) Short-term loans and advances	15.644
(f) Other current assets	0.000
Total Current Assets	4,129.567
TOTAL	4,474.412

KEY RATIOS

PARTICULARS	27.03.2014 To 31.03.2014
Debt Equity Ratio (Total Debt /Networth)	2.08
Current Ratio (Current Asset/Current Liability)	1.19

VALLABHBHAI DHANJIBHAI AND CO.

(Partnership Concern)

Particulars	26.03.2014	31.03.2013	31.03.2012
Sales Turnover (Approximately)	6937.500	5498.200	4228.100

The above information has been parted by Mr. Modi

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

VALLABHBHAI DHANJIBHAI AND CO.

(Partnership Concern)

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	26.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	6937.500	5498.200	4228.100
		(20.747)	(23.100)

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	Yes
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	No
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS:

Particulars	27.03.2014 To 31.03.2014 Rs. In Millions
LONG TERM BORROWINGS
Loans and advances from related parties	0.605
Total	0.605

DIRECTORS REPORT

The company incorporated on 27th March, 2014 upon conversion of the erstwhile partnership firm M/s. Vallabhbhai Dhanjibhai and Co. under part IX of the Companies Act, 1956 taking over all its assets and liabilities as on the date of conversion. The audited financial statements of the erstwhile partnership firm M/s. Vallabhbhai Dhanjibhai and Co. for the year ended 31st March, 2014 have been adopted and are being incorporated as the opening balance sheet of The Company. The issued, subscribed and paid up capital of the Company is Rs.50.000 Millions divided into 50,00,000/- equity shares of Rs.10/- each issued at a premium of Rs.190/- per share to the subscribers to the Memorandum of Association against the balance in each of the partner's capital/current account as on the date of conversion.

ACTIVITIES

The Company has just been incorporated. The company is in the process of obtaining registration certificates, licenses, PAN, IEC, changing/opening new bank accounts etc. to commence the regular business operations in its own name. In the meantime, the company is making use of the registrations, licenses etc. in the name of the erstwhile firm. The business operations on and from 1-4-2014 shall be deemed to have been done by and in the name of the company as the firm has ceased to exist with effect from 27th March, 2014. The activities of the company shall continue to be polishing, manufacturing, import and export of cut and polished diamonds, jewellery etc. And the company shall also be continuing the power generation business from wind energy for its own captive use and consumption.

FUTURE GROWTH

The Directors shall make all possible endeavors to achieve growth at even faster rate than that achieved by the erstwhile firm in the past.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10504164	27/03/2014	1,982,000,000.00	Bank of India	Star House, C-5, B Block,, Bandra- Kurla, Complex, Bandra-(E), Mumbai, Maharashtra - 400051, India	C07302748

*Date of modification Charges

DIAMOND INDUSTRY – INDIA

- From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

- The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

- The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

- Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

- Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

- Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

- Excerpts from Times of India dated 30^th October 2010 is as under –

- Gem and Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

- The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.62.65
UK Pound	1	Rs.98.53
Euro	1	Rs.78.02

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	RAS
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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.