MIRA
INFORM REPORT
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Report Date : |
17.08.2007 |
IDENTIFICATION DETAILS
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Name : |
MADURAI ARKAY ROCK PRODUCE PRIVATE LIMITED |
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Registered Office : |
4/48 Sholavandan Road Nagari, Madurai-625221, Madurai
District, Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
31.10.1997 |
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Com. Reg. No.: |
18.39345 |
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CIN No.: [Company
Identification No.] |
U26999TN1997PLC039345 |
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IEC No.: |
3593003678 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRIM00326E |
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PAN No.: [Permanent
Account No.] |
AABCM2300B |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer, exporter and importer of Marble, Granites,
Sandstone, Limestone, Slate, Travertine, Monuments, Work of Art, |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 186336 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. General financials positions are satisfactory. Payments are usually correct and as per commitments. The company can be considered good for any normal business
dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office/ Factory : |
4/48 Sholavandan Road Nagari, Madurai-625221, Madurai
District, |
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Tel. No.: |
91-4543 – 258020 / 258930 / 32 |
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Fax No.: |
91-4543 – 258030 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Kottai Office : |
7 / 23B, |
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Tel No.: |
91-451-2556774 / 2556755 / 2552168 |
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Fax No.: |
91-452-5353085 |
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E – Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. R. Sriram |
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Designation : |
Director |
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Address : |
FF – Adhi Home, Parsn Srishti, |
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Date of Birth/Age : |
10.04.1964 |
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Qualification : |
B.E. (Mech) |
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Experience : |
15 years |
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Name : |
Mr. K Geetha Sriram |
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Designation : |
Director |
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Address : |
FF – Adhi Home, Parsn Srishti, |
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Date of Birth/Age : |
30.05.1966 |
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Qualification : |
B.E. (Electronic) M. Tech (Comp Science) |
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Experience : |
10 years |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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R. Sriram |
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58500 |
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K Geeta |
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22500 |
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R. Kalyani |
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9000 |
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Category |
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Percentage of
Holding |
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Director or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, exporter and importer of Marble, Granites,
Sandstone, Limestone, Slate, Travertine, Monuments, Work of Art, |
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Exports : |
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Products : |
Granite Monuments |
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Countries : |
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Imports: |
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Products: |
Rough Granite Blocks, Consumable / Tools for granite processing |
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Countries: |
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Imports : |
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Products : |
Rough Granite Blocks, Consumables / Tools for Granite processing |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash, DA (80 days, 90 days) |
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Purchasing : |
L/C, Cash, DA (120 days) |
PRODUCTION STATUS
|
Particulars |
Installed
Capacity |
Actual
Production |
Sales Quantity |
Sales Value
in millions |
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Granite Monuments |
36,000 Cft |
28000.87 Cft |
28000.87 Cft |
105.288 |
GENERAL INFORMATION
|
Suppliers : |
♠
Matech ♠
Braze N Tech Engineers ♠
Elan Diamond Tools Private Limited ♠
Grantools Private Limited ♠
Premier Systems and Peripherals ♠
Supreme Industreis Limited ♠
♠
Smpath Machine Tools ♠
Toolgal Degania Industrial Diamond ♠
Shinhan Diamond Tools ♠
Carbosium SA ♠
Sanwa Kanma Limited |
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Customers : |
Wholesalers, Retailers and Manufacturers |
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No. of Employees : |
200 (21 Office, 179 Factory) |
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Bankers : |
♠
Canara Bank 33, ♠
State Bank of Industrial Finance Branch, |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. C. Balakrishnan Chartered Accountants |
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Address : |
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Memberships : |
♠
CAPEXIL (Chemicals and Allied Products Export
Promotion Council) ♠
Export Promotion Council for EOUs / SEZs ♠
Confederation of Export Units (CEU) ♠
♠
Madurai District Tiny and Small Scale Industries
Association (MADITSSIA) ♠
Nagari Industries Association ♠
The Indo – ♠
Indo – German Chamber of Commerce ♠
Tamilnadu Granite Quarry Owners and Exporters
Association ♠
Monument Builders of ♠
Indo – American Chamber of Commerce ♠
Tamilnadu Electricity Consumers Association |
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Associates/Subsidiaries : |
Dunite Rocks Private Limited S. No. 12 / 1B, Line of Business: Manufacturer and Exporter of Granite Slabs / Tiles /
Products |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100000 |
Equity Shares |
Rs.100/- each |
Rs.10.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
90000 |
Equity Shares |
Rs.100/-
each |
Rs.9.000
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
9.000 |
9.000 |
9.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
37.584 |
40.862 |
53.221 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
46.584 |
49.862 |
62.221 |
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LOAN FUNDS |
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1] Secured Loans |
44.533 |
43.367 |
35.478 |
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2] Unsecured Loans |
0.889 |
1.054 |
0.044 |
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TOTAL BORROWING |
45.422 |
44.421 |
35.522 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
92.007 |
94.283 |
97.743 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
38.908 |
36.033 |
36.362 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
16.016 |
0.011 |
0.011 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
6.526
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9.717 |
13.322
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Sundry Debtors |
27.668
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29.840 |
24.409
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Cash & Bank Balances |
2.337
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17.399 |
22.311
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Other Current Assets |
0.000
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0.000 |
0.000
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Loans & Advances |
7.326
|
7.462 |
6.689 |
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Total
Current Assets |
43.857
|
64.418 |
66.731 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
4.785
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4.416 |
4.201
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Provisions |
1.990
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1.765 |
1.160
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Total
Current Liabilities |
6.775
|
6.181 |
5.361 |
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Net Current Assets |
37.083
|
58.239 |
61.370 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
92.007 |
94.283 |
97.743 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
105.288 |
106.381 |
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Other Income |
0.037 |
0.024 |
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Total Income |
105.326 |
106.406 |
104.375 |
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Profit/(Loss) Before Tax |
4.552 |
3.651 |
3.495 |
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Provision for Taxation |
2.699 |
1.765 |
1.160 |
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Profit/(Loss) After Tax |
1.853 |
1.886 |
2.336 |
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Earnings in Foreign Currency : |
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Export Earnings |
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Commission Earnings |
107.439 |
93.346 |
96.897 |
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Other Earnings |
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Imports : |
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Raw Materials |
8.387 |
14.478 |
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Stores & Spares |
10.245 |
7.884 |
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Capital Goods |
2.103 |
1.329 |
22.340 |
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Others |
0.000 |
0.000 |
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Total Imports |
20.735 |
23.691 |
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Expenditures : |
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Raw Material Consumed |
58.280 |
61.206 |
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Increase/(Decrease) in Finished Goods |
0.905 |
1.943 |
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Salaries, Wages, Bonus, etc. |
13.651 |
12.116 |
93.346 |
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Interest |
2.485 |
1.543 |
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Depreciation & Amortization |
6.386 |
6.728 |
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Other Expenditure |
19.064 |
19.216 |
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Total Expenditure |
100.771 |
102.752 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
1.75
|
1.77 |
2.238
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Net Profit Margin (PBT/Sales) |
(%) |
4.32
|
3.43 |
3.348
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.49
|
3.63 |
3.389
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Return on Investment (ROI) (PBT/Networth) |
|
0.09
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0.07 |
0.056
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Debt Equity Ratio (Total Liability/Networth) |
|
0.14
|
0.12 |
0.657
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Current Ratio (Current Asset/Current Liability) |
|
6.47
|
10.42 |
12.447
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LOCAL AGENCY FURTHER INFORMATION
Form 8:
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Name of the company |
MADURAI ARKAY
ROCK PRODUCE PRIVATE LIMITED |
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Presented
By |
Mrs. K. Geetha
Sriram |
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1) Date and description of instrument creating the change |
Hypothecation agreement
dated 27.06.2005 for Rs.52.668 millions – Equitable Mortgage |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.13.000
millions towards packing credit Rs.31.000
millions towards FBE / FDB Rs.7.500 millions
towards Term Loan – I Rs.1.168 millions
towards Term Loan – II |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
a. Hypothecation of
machinery items purchases amount of Term Loan for Rs.8.594 millions b. Land and
Building value of Rs.1.877 millions c. EMT of 3.47
acres of Land at RS No. 12 / 1, at Vadipatti Taluk, d. EMT of S.No.
345 / 3, 345 / 4, 345 / 5 in the name of Madurai Rock Produce Private
Limited, value of Rs.3.200 millions at Thanichiyan village at Vadipatti Taluk e. Memorandum o
fdeposit of title deeds dt.11.07.2005 exceuted by Mr. R. Siram, Manging
Director, Madurai Arkay Rock Produce Private Limited, favouring Canara Bank, |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Term Loan 1:
Entire Loan to be repaid Quarterly Installments equally of Rs.0.375 millions
each other a repayment holiday o f3 months. Interest at the rate of 14.25%
has to be paid then and there. Term Loan 2:
Entire Loan to be repaid 6 quarterly installments of Rs.0.200 million for 5
installments and Rs.0.168 million for last installment. Interest at the rate
of 14.25% has to be paid then and there. Packing Credit
with a interest of 7.5% and FBD / FBE at rate of 7.5% |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank |
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6) Date and brief description of instrument modifying the charge |
Memorandum of
deposit of title deeds registered on 11.07.2005 |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Deposit of title
deeds in favour of the charge holder registered on 11.07.2005 for loan amount
remains at Rs.52.668 millions |
Fixed Assets:
♠
Land
♠
Building
♠
Machinery
♠
Electrical Machinery
♠
Office Equipments
♠
Vehicles
♠
Furniture and Fittings
♠
Computer and Accessories
♠
Cycle
♠
Road
Trade References:
♠
Grantools private
Limited,
♠
The Supreme Industries
Limited, Hosur
♠
Elan Diamond Tools
Limited, Chennai
♠
♠
Frank England,
♠
Decra Art Limited,
♠
Dorking AG,
♠
Tool gal
Industry
The construction industry continues an estimated 10% to
Granites are mainly used in domestic and industrial construction and exports. At present, industry is passing through difficult time, mainly due to high cost of raw materials, transportation, other inputs and stiff competition in the international market.
Constitutional Details:
♠
Established as a
Partnership SSI firm in September 1992 with the name “Arkay Rock Produce” by
the young entrepreneurs / Entrepreneurs / Engineering Graduate Mr. R. Sriram
and Mr. R. Muthusankar to manufacturer and Exporter Granite Monuments.
♠
The Partnership firm became
a Private Limited Company in 1997
♠
The company was converted
into a 100% Export Oriented Unit (100% EOU ) in 1998
♠
The company is currently
holding One Star Export House Status.
♠
Directors: Mr. R. Sriram,
B.E. and Mrs. Geetha Sriram, B.E., M. Tech
♠
Mr. R. Sriram, Managing
Director is currently one of the Vice Presidents of Indian Monument
Manufacturers Association (IMMA), Chennai and also the Southern Regional
Chairman of confederation of Export Units (CEU) and the President of Nagari
Industries Association, Nagari, Madurai District.
Awards Received:
♠
1st Prize of
Visvesvaraya Award sponsored by MADITSSIA – AIMO for the years 199, 1999 and
2003
♠
Export Award for
excellence in export, increase in export in new markets and new items in SSI
sector during the year 1996 from the department of Industry and Commerce,
Government of Tamilnadu
♠
CAPEXIL’s certificate of
merit for export performance for the
years 1997 – 98, 1998 – 99, 1999 – 2000, 2000-2001, 2001 - 2002, 2002 –
2003, 2003 – 2004, 2004 – 2005, 2005 – 2006
Diversification Venture:
With the kind of experience / expertise gained
in monument manufacturing the directors have venture with a view to entering
into the Slabs / Tiles market by way of establishing a Gang Saw Plant with the
name “Dunite Rocks Private Limited”, Which is also a 100% EOU
Arkay’s way of working:
♠
Products exactly to
buyers requirements
♠
Delivery in the best
possible time
♠
Regular visit to buyers
♠
Continual / Focused
facility and infrastructure development
♠
Quality cultured / committed
work force
♠
Professionalism in
products and services
♠
Loyalty and Genuineness
towards customers
♠
Not just a buyer – one of
the members of the :Arkay Family”s
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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.41.09 |
|
|
1 |
Rs.81.46 |
|
Euro |
1 |
Rs.55.16 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|