VAIBHAV GLOBAL Share price

Vaibhav Gems Ltd. (herein after referred to as VGL) wasincorporated on 8th May 1989 with the objective of settingup a jewellery manufacturing unit. VGL was engaged in theexports of gem stones on a nominal scale upto 1994. Thepromoters of VGL were engaged in the business ofmanufacturing and trading of coloured gem stones throughtheir partnership firm called Vaibhav Enterprises whichwas founded by Mr. Sunil Agrawal. VGL was set up with aview to have a synergy with the existing business of thepromoters.Vaibhav Enterprises commenced its operations in 1980 andwas engaged in manufacturing & trading of coloured gemstones both precious and semi precious the entireproduction of which was exported. Since its inception thefirm has attempted to adhere to the highest standard ofquality in its product range. As a recognition of itsefforts it has been awarded the Highest Exporter Award byGems and Jewellery Export Promotion Council (GJEPC)sponsored by Ministry of Commerce Govt. of India in SemiPrecious Category 3 times for the years 1984-85 1986-87and 1992-93.Subsequently it was realised that it would be in theinterest of the Company to merge Vaibhav Enterprises withVGL and to be just one entity. The takeover could not beachieved earlier due to non concretisation of jewellerymanufacturing plans. Vaibhav Enterprises was taken over asa going concern by VGL vide agreement dated 1/7/1994.Since then Vaibhav Enterprises is not doing any business.The consideration for the sale was Rs. 13148872.51 beingthe book value of all the assets of the firm (excludingimmovable property) as reduced by the aggregate of all theliabilities of the business as on 30/06/94. VGL has agreedto purchase immovable properties of Vaibhav Enterprises fora consideration of Rs. 672990 by a separate agreement.During the same time another partnership firm called"Vikas" which was founded by Mr. Rajiv Jain in June 1985was taken over by VGL as a going concern vide agreementdated 1st November 1994. The consideration for the salewas Rs.315103.71 being the book value of all the assetsof the firm as reduced by the aggregate of all theliabilities of the business as on 31/10/94. M/s. Vikas hasbeen closely associated with Vaibhav Enterprises and wasengaged in cutting and polishing gem stones which wassupplied to Vaibhav Enterprises. No revaluation of assetsof the partnership firms was done in the preceding 3 yearsprior to the takeover.VGL has been awarded the Highest Exporter Award by GJEPC inSemi Precious Category for the year 1994-95 and also theState Award for Export Excellence from the Govt. ofRajasthan in recognition of their best performance in theexport of Gems & Jewellery during the year 1994-95.