MIRA INFORM REPORT

 

 

Report Date :

04.11.2014

 

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

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Polishing, manufacturing, import and export of cut and polished diamonds, jewellery etc and also engaged in power generation business.

 

 

No. of Employees :

Information declined by the management

 

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (34)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject was erstwhile started as a partnership concern named as “M/s. Vallabhbhai Dhanjibhai and Company” in the year 1984. Subsequently, in the year April 2014 the said concern was completely converted into private limited company bearing moderate.

 

Mr. Sandesh, accounts executive provided information and claimed that the management has reported a decent turnover working under the concern during FYE 14, whereas the other assets and liabilities are been recorded as opening balances in the financial of private limited company enabling the commercial business operations.

 

However, trade relations seem to be improving. Business is active. Payment terms are reported as slow but correct.

 

In view of lack of organised of financials due to recent conversion, albeit considering the vast experience promoters, long track record along with decent revenue base from its operations under the name of concern, the company can be considered for business dealings with some caution.

 

NOTES :

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

 

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.

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

 

INFORMATION DECLINED BY

 

Name :

Mr. Sandesh

Designation :

Accounts Executive

Contact No.:

91-22-43629999

Date :

31.10.2014

 

 

LOCATIONS

 

 

Registered Office :

HW-5012-13, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra EAST, Mumbai – 400051, Maharashtra  , India

Tel. No.:

91-22-43629999

Fax No.:

91-22-43629990  

E-Mail :

csmountantony13@gmail.com

gia@vdglobal.in

Website:

www.vdglobal.in

 

 

 

DIRECTORS

 

 

Name :

Mr. Muljibhai Dhanjibhai Vaghasia

Designation :

Director

Address :

Plot No.44, Vijayraj Nagar, Bhavnagar - 364002, Gujarat, India 

Date of Birth/Age :

05.07.1957

Date of Appointment :

27.03.2014

DIN No.:

02604133

 

 

Name :

Mr. Bhavanbhai Dhanjibhai Vaghasia

Designation :

Director

Address :

202-Apanch Ratna Tower, L H Road, Surat -395006, Gujarat, India 

Date of Birth/Age :

14.05.1962

Date of Appointment :

27.03.2014

DIN No.:

02595451

PAN No.:

ABTPV3456D

 

 

Name :

Mr. Jayeshkumar Limbabhai Bharodiya

Designation :

Director

Address :

33, Enterprise Apartments, Forjet Hill Road, Tardeo Mumbai – 400036 Maharashtra, India 

Date of Birth/Age :

01.07.1974

Date of Appointment :

27.03.2014

DIN No.:

02595473

PAN No.:

AAIPB6946L

 

 

Name :

Mr. Kenil Bhavanbhai Vaghasia

Designation :

Director

Address :

A-29,Trikam  Nagar-1, L.H. Road, Surat – 395006, Gujarat, India 

Date of Birth/Age :

13.09.1990

Date of Appointment :

27.03.2014

DIN No.:

06917762

PAN No.:

AIOPV6883C

 

 

Name :

Mr. Sumit Muljibhai Vaghasia

Designation :

Director

Address :

1801, Dhavalgiri Blgd, 18th Floor, Papanaswadi Nana Chowk, Behind  Golden Crown Hotel Mumbai – 400036, Maharashtra, India 

Date of Birth/Age :

09.02.1986

Date of Appointment :

27.03.2014

DIN No.:

06917751

PAN No.:

AFZPV7631Q

 

 

KEY EXECUTIVES

 

Name :

Mr. Sandesh

Designation :

Accounts Executive

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

NOT AVAILABLE

 

BUSINESS DETAILS

 

Line of Business :

Polishing, manufacturing, import and export of cut and polished diamonds, jewellery etc and also engaged in power generation business.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

Bank of India, Star House, C-5, B Block, Bandra- Kurla, Complex, Bandra-(East), Mumbai - 400051, Maharashtra, India

 

 

Facilities :

Secured Loan

 

31.03.2014

(Rs. in Millions)

Long-term Borrowings

 

 

Rupee term loans from banks

 

14.963

Loans and advances from related parties

 

0.605

Short-term borrowings

 

 

Rupee term loans from banks

 

1782.339

Loans and advances from others

 

285.000

Total

 

2082.907

 

 

 

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 N Income-tax PAN of auditor or auditor's firm :

AAFPS1156E

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

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]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

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)

 

 

1000.000

 

 

 

 

(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

 

 

2067.339

(b) Trade payables

 

 

1356.760

(c) Other current liabilities

 

 

34.745

(d) Short-term provisions

 

 

0.000

Total Current Liabilities (4)

 

 

3458.844

 

 

 

 

TOTAL

 

 

4474.412

 

 

 

 

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

 

 

2050.251

(c) Trade receivables

 

 

1907.204

(d) Cash and cash equivalents

 

 

156.468

(e) Short-term loans and advances

 

 

15.644

(f) Other current assets

 

 

0.000

Total Current Assets

 

 

4129.567

 

 

 

 

TOTAL

 

 

4474.412

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2014

Debt Equity Ratio

(Total Debt /Networth)

 

 

 

2.08

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

 

 

1.19

 

 

Particulars

 

 

 

31.03.2013

Sales Turnover (Approximately)

 

 

5120.000

 

The above information has been denied by Mr. Sandesh (Accounts Executive)

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS: NOT AVAILABLE

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last one year

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

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

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 8th Century B.C.  India, in fact, remained undisputed leader till 18th 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 30th 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.

 

 

NOTE: Registered office of the company has been shifted from G-1. Basement, Prasad Chambers, Tata Road No 2, Opera House, Mumbai – 400004, Maharashtra, India to the present address w.e.f. 21.06.2014

 

DIRECTORS REPORT

 

The Directors take pleasure in making maiden presentation of the financial statements of the company incorporated on 27th March, 2014 upon conversion of the erstwhile partnership firm M/s. Vallabhbhai Dhanjibhai and Company. 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 Company. 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 mean time, 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.

 

INDEX OF CHARGES

 

S.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

 

 

FIXED ASSETS

 

Tangible assets

 

  • Buildings
  • Plant and equipment
  • Furniture and fixtures
  • Vehicles
  • Computer equipments

 


 

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.61.41

UK Pound

1

Rs.98.06

Euro

1

Rs.76.67

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Analysis Done by :

SUB

 

 

Report Prepared by :

KVT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

4

--CREDIT LINES

1~10

3

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

34

 

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.