MIRA INFORM REPORT
|
Report Date : |
25.01.2007 |
IDENTIFICATION DETAILS
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Name : |
MADHUCON GRANITES LIMITED |
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Registered Office : |
1-7-70 Jublipura-Madhu
Complex, Khammam- 507 003, Andhra Pradesh |
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Country : |
India
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Financials : |
31.03.2004 |
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Date of Incorporation : |
15.02.1998 |
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Com. Reg. No.: |
01-8311 |
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CIN No.: [Company Identification No.] |
U13209AP1988PTC008311 |
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TAN No.: [Tax Deduction & Collection Account No.] |
HYDM02242C |
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Legal Form : |
A
closely held Public Limited Liability Company. |
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Line of Business : |
Subject
is engaged in to carry on the business as Quarry Owners, Excavators of
Quarries and Mines, Manufacturers, Dealers, Distributors, Merchant,
Exporters, Importers, Stockiest and Agents of all kind of Granites Stones,
Marble Stones, Marble Slabs, Marble Tiles, Marble Powder and Marble White
Paint. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
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Status : |
Moderate |
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Payment Behaviour : |
Slow by average 30/60 days
to local Suppliers |
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Litigation : |
Unknown |
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Comments : |
Subject is a well-established company but it’s payments are reported as slow by plus 30/60 days to local suppliers. Further
in absence of latest financials or business details, it is difficult to
assess current performance and financial status. |
LOCATIONS
|
Registered Office : |
1-7-70 Jublipura-Madhu
Complex, Khammam- 507 003, Andhra Pradesh, India |
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Tel. No.: |
91-8742-225141
/225381/223638 / 233108 / 223386 / 224408 |
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Fax No.: |
91-8742-224408 |
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E-Mail : |
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Website : |
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Head Office : |
D-27,
East of Kailash, New Delhi - 110 065, India |
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Tel. No.: |
91-11-26425507/26425820 |
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E-Mail : |
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Website : |
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Corporate Office : |
Madhucon
House, Plot No. 1129/A, Road No. 36, Jubilee Hills, Hyderabad- 500 033,
Andhra Pradesh, India |
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Tel. No.: |
91-40-23354592/23351692/23556001/2/3/4 |
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Fax No.: |
91-40-2336215/23556005 |
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E-Mail : |
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Website: |
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Factory 1 : |
Gollagudem
Village, Khammam Rural Mandal, Kammam District, Andhra Pradesh, India |
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Factory 2 : |
Addagurki
Village, Dharmapuri, House T Q, Tamilnadu, India |
DIRECTORS
|
Name : |
Mr.
N. Nageswar Rao |
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Designation : |
Chairman
and Managing Director |
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Address : |
Door No. 648, Road No. 14, Jubliee Hills,
Hyderabad - 500033, Andhra Pradesh |
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Date of Birth/Age : |
15/03/1957 |
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Name : |
Mr.
K. Krishnaiah |
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Designation : |
Executive
Director |
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Address : |
Varalakshmi nilayam, House No. 11/4/65/c, Nehru
Nagar, Khammam - 507002, Andhra Pradesh |
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Date of Birth/Age : |
15/12/1967 |
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Name : |
Mr.
T. Venugopal Rao |
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Designation : |
Director
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Address : |
D-23, Steel & Mines Complex, Srinagar Colony
Extension, Hyderabad - 560073, Andhra Pradesh |
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Date of Birth/Age : |
04/06/1968 |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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N. Nageswar Rao |
|
76800 |
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N. Chinnamma |
|
43280 |
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N. Krishnaiah |
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23200 |
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N. Seetaiah |
|
13000 |
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T. V. Venugopal Rao |
|
700 |
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N. Varalaxmi |
|
1800 |
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N. Rama Rao |
|
700 |
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BUSINESS DETAILS
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Line of Business : |
Subject
is engaged in to carry on the business as Quarry Owners, Excavators of
Quarries and Mines, Manufacturer, Dealers, Distributors, Merchants,
Exporters, Importers, Stockiest and Agents of all kind of Granites Stones,
Marble Stones, Marble Slabs, Marble Tiles, Marble Powder and Marble White
Paint. |
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Products : |
>
Granites Stones >
Marble Stones >
Marble Slabs >
Marble Tiles >
Marble Powder >
Marble White Paint |
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GENERAL INFORMATION
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No. of Employees : |
15 |
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Bankers : |
Ø
State Bank of India,
Khammam, Andhra Pradesh Ø
State Bank of India,
Ongole, Andhra Pradesh Ø
State Bank of
Hyderabad, Khammam, Andhra Pradesh Ø
Canara Bank, Khammam,
Andhra Pradesh Ø
Canara Bank,
Industrial Finance Branch, TSR Complex, SP Road, Secundrabad - 500 003,
Andhra Pradesh Ø
Canara Bank, Ongole Ø
ICICI Bank, Hyderabad,
India Ø
Andhra Bank, Khammam |
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Facilities : |
Secured
Loan Packing Credit Limit-
CB Rs.27.519 millions FDB limit – CB Rs. 3.454 millions Term Loan –Andhra Bank Rs. 64.808 millions Secured Hire
Purch.Loan Rs. 14.685 millions Secured Under LC Rs. 75.994 millions Credit
Limits Rs. 780.00 millions as on 06/06/2002 |
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Banking Relations : |
Satisfactory |
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Auditors : |
K Sivarama Krishna Prasad
& Company Chartered
Accountants |
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Address : |
331,
Arorra Colony, Road No. 3, Banjara Hills, Hyderabad- 500 034, India |
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Associates : |
Ø
Madhucon Group Ø
Varalaxmi Granites
Limited |
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Sister Concerns : |
Madhucon
Projects |
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Address : |
Road No. 36, Jubilee Hills Plot No. 1129/A, Hi-tech
City Road Hyderabad – 500 038, Andhra
Pradesh |
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Tel. No. : |
91-8742-23556001 – 004 |
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Fax No. : |
91-8742-23556005 |
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Line of Business : |
The
concern is under the project of Roads, i.e. Road Construction from Tuni to
Kanagapalli and Tad to Nellore (National Highway No. 5 at Andhra Pradesh. |
CAPITAL STRUCTURE
As on 31st
March 2006
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000 |
Equity
Shares |
Rs. 100/- |
Rs. 200.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000 |
Equity
Shares |
Rs. 100/- |
Rs. 150.000 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
15.948 |
15.948 |
15.948 |
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2] Reserves & Surplus |
159.031 |
153.123 |
121.933 |
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NETWORTH
|
174.979 |
169.071 |
137.881 |
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LOAN FUNDS |
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1] Secured Loans |
186.462 |
32.283 |
37.055 |
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TOTAL
BORROWING
|
186.462 |
32.283 |
37.055 |
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TOTAL
|
361.441 |
201.354 |
174.936 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
296.786 |
94.558 |
83.854 |
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INVESTMENT
|
49.805 |
48.615 |
39.539 |
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Inventories
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Sundry Debtors
|
199.299 |
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Cash & Bank Balances
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|
103.577
|
102.226 |
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Other Current Assets
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Loans & Advances
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Total Current Assets
|
199.299 |
103.577
|
102.226 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
194.831
|
51.446
|
58.922 |
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Provisions
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Total Current Liabilities
|
194.831 |
51.446
|
58.922 |
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Net Current
Assets
|
4.468 |
52.131
|
43.304 |
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MISCELLANEOUS EXPENSES
|
10.382 |
6.050 |
8.239 |
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TOTAL
|
361.441 |
201.354 |
174.936 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
Sales Turnover [including other income]
|
254.597 |
231.210 |
172.292 |
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Profit/(Loss) Before Tax
|
40.829 |
37.773 |
32.246 |
Provision for Taxation
|
11.000 |
6.583 |
4.000 |
Profit/(Loss) After Tax
|
29.829 |
31.190 |
28.246 |
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Export Value
|
0.000 |
198.400 |
0.000 |
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Total Expenditure
|
215.836 |
188.244 |
144.250 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2004 |
31.03.2003 |
31.03.2002 |
PAT / Total Income
|
(%)
|
11.716 |
13.49
|
16.39 |
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Net Profit Margin
(PBT/Sales) |
(%) |
16.120 |
16.34
|
18.72 |
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Return on Total Assets
(PBT/Total Assets} |
(%) |
7.479 |
15.31
|
14.29 |
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Return on Investment (ROI)
(PBT/Networth) |
|
0.233 |
0.22
|
0.23 |
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Debt Equity Ratio
(Total Liability/Networth) |
|
2.179 |
1.50
|
1.70 |
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Current Ratio
(Current Asset/Current
Liability) |
|
1.029 |
2.01
|
1.73 |
LOCAL AGENCY FURTHER INFORMATION
History:
The
company was incorporated on 15th February, 1988 at Khammam in Andhra
Pradesh under the name and style of Madhu Minerals Trading Company Private
Limited and changed its’ name and style to present with effect from 28.03.1994.
The
company is an Export Oriented Unit.
It
is also undertaking a 200 millions project expansion in its cutting and
polishing unit with IDBI and IFCI assistance.
During
the year under report, the sales turnover of the company was Rs. 108.388
millions as against Rs. 115.812 millions in the year 1998-99. The net profit was Rs. 33.473 millions as
against Rs. 37.692 millions in the year 1998-99.
About
Company:
The
Company Madhucon Granites Limited (MGL), the growing giant in Granite Industry
and a 100% Export Oriented Unit is established in Khammam District, Andhra
Pradesh, India. Since its inception in 1988, the Company has displayed an
inexorable spirit of innovation and enterprise. Thriving on an enviable track
record of performance in production and export volumes, the Company surges
ahead to expand its global frontiers. The Company is a renowned name in the
exports of precision dimensional stones of highest international quality.0, it
is a fully owned subsidiary of Stone Track Corp. The company has based its
headquarters at Khammam, being the hub of Indian dimensional stone industry
thereby enabling a smooth procurement of products from both, northern as well
as southern regions of the country. The company is engaged in the activity of
exploration & processing of Granite stone which India is the largest
producer in the world. Varalakshmi
Granites (Private) Limited, a company having its registered office at Khammam.
Mines and processes granite for the domestic market.
Awards
& Accolades:
MADHUCON
GRANITES has earned a solid reputation for delivering excellent craftsmanship
and customer satisfaction throughout the industry. Its continuous effort towards a perfection has earned them such
coveted honors as the State Award for Export Excellence (2000-2001) by the
Govt. of Andhra Pradesh, Capexil certificate of Merit (1996-97) by Govt. of
India, Capexil Certificate of Merit
About Group Companies:
1.Madhucon
Projects Limited is a
professionally managed engineering construction company,with its inception in
the year 1980. With the expansion and growth of business, the company was
converted into Public Limited Company in the year 1995. Madhucon is registered
with various departments of the state and central governments and public sector
undertakings.
2.
Madhucon Binapuri JV:is a joint
venture company of Madhucon Projects Limited with Bina Puri Holdings BHD, a
holding company, based in Kuala Lampur, Malaysia.This joint venture had
constructed a flyover in Hyderabad at a highly traffic intensive road junction.
Anchored Reinforced Soil structures were used for the first time in India in
these Hyderabad flyovers.
3.
Madhucon Granites Limited: A wholly
export oriented unit, has its own quarries in the states of Andhra Pradesh and
Karnataka and processes raw granites in its own factories, situated at Khammam.
The products are wholly exported, mainly to, Italy, France, Germany, UK and
USA. The company is twice recipient of " Best Exporter" award given
by Government of India for its achievements in earning valuable foreign
exchange.
4.
Varalaxmi Granites Limited:A company
having its registered office at Khammam. Mines and processes granite for the
domestic market.
5.
Madhucon Engineers Limited: A
consultancy firm equipped professionally with latest computer Hardware and
Software suitable for any type of civil engineering work. Apart from offering
engineering services to Madhucon Projects Limited, the company also caters to
Techinical constancy requirements of various government departments and private
and companies.
6.
Madhucon Finance Limited.
7.
Madhu Global Exports Limited.
8.
Madhucon Infotech Limited:(MIL)was incorporated with the objective of providing
original software solutions to critical business processes, based on the
evolving e-business paradigm to its local and offshore clients. And the source
of its strength is its well nurtured, ever expanding human resource pool, which
is equal to any technological challenge. Providing products of unmatched
quality in software development, e-technology and e-business solutions, the
resource pool keeps Madhucon's discerning client group perfectly satisfied.
Whatever businesses the clients are in, MIL helps the clients adept emerging
technologies to run their businesses.
9.
MBN Anchored Earths Limited.A joint
venture company of Madhucon Projects Limited with Anchored Earth SDN BHD of
Malaysia, who are specialists in the construction of reinforced soil
structures. MBN Anchored Earth Limited, established in 1996 under the Companies
Act uses reinforced earth technology in India, under license from Anchored
Earth SDN BHD, Malaysia, for the first time.
Infrastructure:
Madhucon
Granites Limited is a 100% E.O.U manufacturing products and monuments of high
quality .The best machinery available in the world had been selected from
Germany (Speilvogel) & France (Thibaut) to ensure the highest quality of
international standars for the global market
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.44.24 |
|
UK
Pound |
1 |
Rs.86.95 |
|
Euro |
1 |
Rs.57.33 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
33 |
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
|
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/normal. |
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 |