MIRA INFORM REPORT

Report No. :	317222
Report Date :	13.04.2015

IDENTIFICATION DETAILS

Name :	VD GLOBAL PRIVATE LIMITED
Registered Office :	HW-5012-13, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra
Tel. No.:	91-22-43629999
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 Million
CIN No.: [Company Identification No.]	U36993MH2014PTC255083
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAECV7947N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Cut and Polished Diamond.
No. of Employees :	1500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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 was erstwhile started as a partnership concern named as “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. S. George, Finance Manager 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. As per information available from indirect source i.e. CRISIL, we found that the company possesses an above average financial profile marked by healthy net worth base, moderate total outside liabilities to tangible net worth ration, and above average debt protection metrics. Moreover, management has reported large working capital intensive requirements coupled with modest profitability which is susceptible to volatility in diamond prices and foreign exchange rates. However, trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of vase experienced 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 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	Moderate degree of safety and moderate credit risk.
Date	01.04.2015

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. S. George
Designation :	Finance Manager
Contact No.:	91-22-43629999
Date :	11.04.2015

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 account@vdglobal.in
Website:	www.vdglobal.in
Location :	Owned
Locality :	Commercial
Factory :	Unit No. 11/5 to 11/10, Kohinoor Industrial Estate, Varachha Road, Surat – 395006, Gujarat, India

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
PAN No.:	ABTPV3456D
DIN No.:	02595451
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
PAN No.:	AAIPB6946L
DIN No.:	02595473
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
PAN No.:	AIOPV6883C
DIN No.:	06917762
Name :	Mr. Sumit Muljibhai Vaghasia
Designation :	Director
Address :	1801, Dhavalgiri Building, 18^th 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
PAN No.:	AFZPV7631Q
DIN No.:	06917751
Name :	Mr. Vallabhbhai Dhanjibhai Vaghasiya
Designation :	Director
Address :	1801/1802, Dhavalgiri Bldg. 18^th Floor, Papanaswadi, Nana Chowk, Grant Road, Mumbai - 400036, Maharashtra, India
Date of Birth/Age :	15.02.1954
Date of Appointment :	27.03.2014
DIN No.:	02594332
Name :	Mr. Vandit Vallabhbhai Vaghasia
Designation :	Director
Address :	1801-1802,Dhavalgiri Bldg, 18^th Floor, Papanaswadi, Nanachowk, Grant Road, Mumbai - 400036, Maharashtra, India
Date of Birth/Age :	28.09.1980
Date of Appointment :	27.03.2014
DIN No.:	02594529

KEY EXECUTIVES

Name :	Mr. S. George
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2014

Names of Shareholders	No. of Shares
Vallabhbhai Dhanjibhai Vaghasia	500000
Vandit Vallabhbhai Vaghasia	1150000
Muljibhai Dhanjibhai Vaghasia	500000
Bhavanbhai Dhanjibhai Vaghasia	500000
Sumit Muljibhai Vaghasia	1150000
Kenil Bhavanbhai Vaghasia	1150000

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Cut and Polished Diamond.
Products :	Diamond
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Cut and Polished Diamond
Countries :	· USA · Europe · Hong Kong · Israel · Japan · South East Asia
Imports :
Products :	Rough Diamond
Countries :	South Africa Belgium Israel Hong Kong
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS: NOT DIVULGED

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

Customers :

OEM’s and End Users

Reference:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

No. of Employees :

1500 (Approximately)

Bankers :

Bank Name:	Bank of India
Branch:	Star House, C-5, B Block, Bandra- Kurla, Complex, Bandra (East), Mumbai - 400051, Maharashtra, India
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Rs. 885.700 Milions
Account Operation:	Not Divulged
Remarks: Not Divulged

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)
LONG TERM BORROWINGS
Rupee term loans from banks	14.963
SHORT TERM BORROWINGS
Rupee term loans from banks	1782.339
Loans and advances from others	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
Income-tax PAN of auditor or auditor's firm :	AAFPS1156E
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital : Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 62.500 Millions

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs.10/- each	Rs. 100.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs.10/- each	Rs. 50.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	225.937
(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	344.844
(2) Current assets
(a) Current investments	0.000
(b) Inventories	2050.251
(c) Trade receivables	1907.204
(d) Cash and cash equivalents	156.469
(e) Short-term loans and advances	15.644
(f) Other current assets	0.000
Total Current Assets	4129.568
TOTAL	4474.412

Expected Sales (2014-2015): Rs. 7850.000 Millions

The above information has been parted by Mr. S. George (Finance Manager).

VALLABHBHAI DHANJIBHAI AND COMPANY (PARTNERSHIP FIRM)

Particulars	31.03.2014
Sales Turnover (Approximately)	6850.000

The above information has been parted by Mr. S. George (Finance Manager).

KEY RATIOS

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

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	No
12]	Profitability for last three years	No
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

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 & 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.

CURRENT MATURITIES OF LONG TERM DEBTS: NOT AVAILABLE

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 (EAST), MUMBAI - 400051, MAHARASHTRA, INDIA	C07302748

UNSECURED LOANS

UNSECURED LOANS	31.03.2014 (Rs. In Million)
LONG TERM BORROWINGS
Loans and advances from directors	0.605
Total	0.605

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 27^th 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.

FIXED ASSETS

Tangible Assets

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

· Other 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.62.37
UK Pound	1	Rs.91.60
Euro	1	Rs.66.49

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUB
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--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		44

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.