MIRA
INFORM REPORT
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Report Date : |
16.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
MADHAV MARBLES
AND GRANITES LIMITED |
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Registered Office : |
National Highway
8, Amberi, |
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Country : |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
07.04.1989 |
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Com. Reg. No.: |
4903 |
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CIN No.: [Company
Identification No.] |
U14101RJ1989PLC004903 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JDHM03496D |
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Legal Form : |
A Closely Held
Public Limited Liability Company. |
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Line of Business : |
Manufacturing and
selling of marble tiles, granite tiles and marble slabs. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2900000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having satisfactory track. The slowdown in
the Directors are
reported as experienced, respectable and resourceful businessmen and eminent
personalities. Their trade relations
are reported as fair. General financial
position is satisfactory. Payments are
reported as correct and as per commitments. |
LOCATIONS
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Registered
Office : |
National Highway
8, Amberi, |
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Tel. No.: |
91-294-2525808 / 2527535
/ 2440113 / 131 |
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Fax No.: |
91-294-2525887 /
2440139 |
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E-Mail : |
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Website : |
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Administrative
Office : |
59, Moti Magri,
Scheme V, |
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Tel. No.: |
91-294-2525808 /
2527535 |
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Fax No.: |
91-294-2525887 |
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E-Mail : |
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Website : |
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Overseas
Distributors : |
Located at : |
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Factory : |
Ř
Marble Division Sukher Industrial Area, Ř
Granite Division Village Thopur, Distt. Dharampuri, Ř
Wind Mills SF NO. 405/1 (PART) & 412 (PART),
VILLAGE: Balabathiraramapuram, Dist. Tirunelveli, Tamilnadu |
DIRECTORS
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Name : |
Mr. Raj Singh Dungarpur |
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Designation : |
Chairman |
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Name : |
Mr. C D Gopinath |
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Designation : |
Director |
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Name : |
Mr. Arvind Laxman Apte |
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Designation : |
Director |
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Name : |
Mr. Ajayindrajitthakore |
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Designation : |
Director |
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Name : |
Mr. Jagdish Dashora |
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Designation : |
Director |
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Name : |
Mr. |
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Designation : |
Director |
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Name : |
Mr. Vipin Doshi |
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Designation : |
Director |
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Name : |
Mr. Raj Kumar Bapna |
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Designation : |
Whole-Time Director |
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Name : |
Mr. Ashok Doshi |
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Designation : |
Managing Director |
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B.Sc. |
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Name : |
01-05-1995 |
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Designation : |
A.R. Enterprises Limited |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and
selling of marble tiles, granite tiles and marble slabs. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Marble Tiles |
Sq. mtr. |
361338 |
361338 |
31770.04 |
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Granite Tiles |
Sq. mtr. |
260000 |
158400 |
204636.67 |
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Granite Slabs |
Sq. mtr. |
340000 |
160000 |
216795.70 |
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Marble Slabs |
Sq. mtr. |
-- |
-- |
3161.82 |
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Power Generation |
Units |
-- |
-- |
350398 |
GENERAL INFORMATION
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No. of Employees : |
188 |
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Bankers : |
Ř
State
Bank of Ř
Allahabad
Bank Ř
ICICI
Bank Limited |
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Facilities : |
Notes The Term Loan
from State Bank of Loans from Banks secured by hypothecation of stocks and book debts
present and future of the Company and guaranteed by Directors. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Nyati & Associates Chartered Accountants |
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Address : |
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Associates : |
v
Akshat
Exports v
Raj
Exports v
Rajdarshan
Industries Limited v
Ashok Drilling Company v
Sumal
Finance and Investment Private Limited |
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Subsidiary : |
Rose Marble Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17,250,000 |
Equity Shares |
Rs. 10/- each |
Rs. 172.500 millions |
|
75,000 |
Cumulative
Convertible Preference Shares |
Rs. 100/- each |
Rs.
7.500 millions |
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Total
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Rs. 180.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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8,947,000 |
Equity Share |
Rs. 10/- each |
Rs. 89.470 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
89.470 |
89.470 |
89.470 |
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3] Reserves &
Surplus |
542.108 |
538.245 |
453.460 |
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NETWORTH
|
631.578 |
627.715 |
542.930 |
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LOAN FUNDS |
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1] Secured Loans |
87.896 |
69.700 |
80.012 |
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2] Unsecured
Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING
|
87.896 |
69.700 |
80.012 |
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DEFERRED TAX
LIABILITIES |
50.973 |
25.242 |
28.312 |
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TOTAL
|
770.447 |
722.657 |
651.254 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
318.836 |
214.097 |
217.926 |
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Capital work-in-progress
|
7.096 |
6.740 |
8.013 |
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INVESTMENT
|
0.000 |
0.000 |
9.409 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
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187.531
|
137.453
|
143.257 |
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Sundry Debtors
|
38.495
|
37.151
|
33.466 |
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Cash & Bank Balances
|
74.566
|
68.205
|
41.088 |
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Loans & Advances
|
269.164
|
315.656
|
264.067 |
Total Current Assets
|
569.756
|
558.465
|
481.878 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
95.119
|
37.027
|
47.064 |
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Provisions
|
30.349
|
20.187
|
20.186 |
Total Current Liabilities
|
125.468
|
57.214
|
67.250 |
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Net Current Assets
|
444.288
|
501.251
|
414.628 |
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MISCELLANEOUS EXPENSES
|
0.227 |
0.569 |
1.278 |
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TOTAL
|
770.447 |
722.657 |
651.254 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Sales Turnover |
718.819 |
614.839 |
563.251 |
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Other Income |
9.813 |
5.649 |
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Increase / (Decrease) in Stock |
5.352 |
[2.874] |
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Total Income |
733.984 |
617.614 |
563.251 |
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Profit/(Loss) Before Tax |
143.678 |
102.350 |
74.758 |
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Provision for Taxation |
25.730 |
[3.070] |
0.199 |
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Profit/(Loss) After Tax |
117.949 |
105.420 |
74.559 |
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Earnings in Foreign Currency : |
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Export Earnings |
672.951 |
571.512 |
501.497 |
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Total Earnings |
672.951 |
571.512 |
501.497 |
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Imports : |
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Raw Materials |
3.250 |
1.700 |
63.816 |
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Stores & Spares |
91.990 |
71.037 |
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Capital Goods |
53.129 |
13.280 |
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Total Imports |
148.369 |
86.017 |
63.816 |
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Expenditures : |
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Materials
consumed / sold |
313.151 |
259.499 |
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Purchase of
traded goods |
10.456 |
11.889 |
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Manufacturing
expenses |
143.113 |
116.778 |
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Payment to and
provision for employees |
30.503 |
37.549 |
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Administrative
and other expenses |
54.177 |
48.242 |
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Interest |
12.253 |
11.704 |
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Depreciation |
26.651 |
29.603 |
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Total Expenditure |
590.304 |
515.264 |
488.490 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
PAT / Total Income |
(%) |
16.07
|
17.07 |
13.24 |
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Net Profit Margin (PBT/Sales) |
(%) |
19.99
|
16.65 |
13.27 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
16.17
|
13.25 |
13.61 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
0.16 |
0.14 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.34
|
0.20 |
0.27 |
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Current Ratio (Current Asset/Current Liability) |
|
4.54
|
9.76 |
7.17 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Free
- Building
- Plant and Machinery
- Electrical Installation
- Factory Equipments
- Furniture, Fixture and Office Equipment
- Vehicles
HISTORY :
The company was incorporated on 7th April, 1989
at
It’s Company Registration Number is 4903.
Subject was promoted by Mr. Rajsingh Dungarpur, Mr. J. H.
Dashora, Mr. R. B. Bapna and Ms. Lata Mangeshkar.
The company processes marbles and granites. The products of
the company are marble and granite tiles used for flooring and wall cladding in
residential and commercial complexes and also for interior decoration.
The company came out with a public issue in May 1992 to set
up a 100% Export Oriented Unit to process granite tiles with an installed
capacity of 1,38,000 sq. mtr. p.a. and another unit to process marbles tiles
with an installed capacity of 3,61,338 sq. mtr. p.a.
The company is in processing and exporting granite and green
marble tiles since 1992.
It has been unable to make a breakthrough in the development
of mines, inspite of substantial investments, due to huge developmental
expenses, infrastructure bottlenecks, quality of materials and operational
difficulties.
During the year, 1999-2000, a 100% Export Oriented Unit was
set up for manufacturing polished granite slabs.
Rose Marbles Limited has became the subsidiary of the
company in 2001-02, consequent to acquisition of 52300 equity shares which
represents 51.27%. Rose Marbles Limited is in the business of processing Marbles
Slabs / Marble Trading.
Today, the company is the largest producer and exporter of
granite and green marble tiles in
The company had an agreement with Khimji Ramdas,
The company exports its products to over 20 countries
including
Rose Marbles Limited had become the subsidiary of the
company in 2001-02, consequent to acquisition of 52300 equity shares which
represents 51.27%. RML is in the business of processing Marble Slabs/Marble
Trading.
PERFORMANCE
The
Company had a successful year under review with consistent growth in sales and
profits. Consolidated net sales and other income during the year grew by 17% to
Rs. 728.63 million while profit aftertax registered growth of 11.88% to Rs.
117.95 million and is the highest ever achieved by the Company.
WIND POWER
As
power is a major cost component in the Granite tile and slab processing, the
company decided to diversify by setting up two Wind Turbine Generating units
each with a capacity of 1.25 M W and both the units have commenced operation
with effect from 30th September 2005 and 12th October 2005 respectively. The
Company has availed term loan of Rs. 45 Millions from State Bank of India for the
aforesaid diversification .This has helped in enhancing the profitability of
the company by reducing the power cost and on account of tax incentives.
EXPANSION
During
the period under report the Company had undertaken the expansion by enhancing
the capacity of its existing
(a)
marble division by adding marble slab processing facility, (b) granite division
by enhancing the capacity of its existing granite slab processing unit and tile
processing unit, and, (c) power
generation by adding one additional Wind Turbine Generator. After the
expansion, the Company's working capital requirements will also be increased.
The total outlay of the project has been estimated at Rs. 187.225 Millions
including working capital requirements. The Company has successfully commissioned
Marble Slab Processing plant W.e.f. 16.09.2005 The Company has already placed
orders for the granite slab processing unit and the Company is hopeful of
commissioning the same by December 2005. To meet the fund requirements for
undertaking the aforesaid expansion, the Company had issued 20,00,000 warrants
at Rs. 51.35 per warrant on 29th March 2005, convertible into equity shares on
preferential basis to promoters including persons acting in concert with them
and other investors or select group of persons. Totalling to Rs. 102.700
Millions and balance Rs. 84.525 Millions from internal Accruals. The warrants
shall be convertible at any time within a period of 18 months from the date of
allotment.
AWARDS
During
the period under report, the Company has received the "Special Export
Award", in recognition of outstanding export achievement, in respect of
Granite, Marble - Slabs & Tiles, for the year 2003-2004 from CAPEXIL. The
Company is receiving CAPEXIL Awards from the year 1992- 1993, twelve years in
succession. The Management is hopeful of receiving the CAPEXIL Award for the
year under review.
Marble
tiles and slab business
Review
of Operations
The
marble division continue to face various constraints as the market conditions were
sluggish during the year under review. The working was also affected by reduced
demand of marble tiles, stagnant prices in international market and
unprecedented rise in prices of rough marble blocks. During the year the marble
business registered a positive growth of around 21.12% with turnover of Rs.
60.37 million and loss of Rs. 0.04 million against a loss of Rs. 35I44 million
in the previous year.
Outlook
The
company's diversification plans for setting up slab processing unit which was
undertaken during the year under review with an installed capacity of 40000 sq.
mtr. per annum was commissioned w.e.f. 16m September 2005.
The
company has rededicated itself to improving the operations of the division
through cost control measures, improving productivity, maintaining quality
standards and committed to significant increase in profits which would be
possible. The company is receiving orders for slabs from the existing customers
and the trend of the international market is encouraging. Overall the business
outlook for the current year remains positive.
Granite
Slab Business
During
the period under report, the Slab Division posted the highest ever turnover and
profits, mainly due to substantial improvements in operations and higher volume
of sales.
Review
of Operations
The
turnover from the slab business was at Rs. 428.22 million as against Rs. 349.57
million in the previous year, registering a positive growth of over 22.50%. The
production quantity was at 216.795 sq. meters and the sale quantity was at
218938.38 sq. meters. The slab business has achieved higher productivity in its
operations resulting in lower costs. Throughout the year demand for slabs from
US market remained strong. The Company has also sold slabs to
Outlook
The
company has undertaken the enhancement of its capacity by acquiring two Gangsaw
Unit & One Polishing Unit during the year under review; It has already
Commissioned Polishing plant in the month of Sept 05' and is hopeful of
Commissioning the balance slabs unit by December 05'. With the increase in its
capacity the company will get advantage of volume business which would further
improve its profitability.
Sales
and Other Income
Net
sales and other income during the year has grown by around 17% to Rs. 728.62
million, which includes over 59% contribution from granite slab business, over
32% contribution from granite tile business, and around 9% contribution from
marble tile and slab business.
Profit
before interest, depreciation and tax
Due to
better operating efficiencies, increase in turnover from slab business and continuous
cost cutting measures the Company has maintained its operating profits, which
is at 25% of total sales.
Net
Profit
The
Net Profit is up from Rs. 105.42 million in FY 2004 to Rs. 117.95 million,
reflecting a growth of 11.88%. The Earning Per Share was Rs. 13.18 during FY
2005 up from Rs. 11.78 during FY 2004 and Cash Earning Per Share also up from
Rs.15.09 to Rs. 16.16 during this period.
Recognition
The
Company is the first to become the Member of Marble Institute of America (MIA)
from
AS PER WEBSITE
Subject was
incorporated as a Public Limited Company in 1990 to set up modern processing
plants for marble and granite tiles and slabs.
A plant for producing marble tiles was set in
The granite plant is a 100%
export oriented unit and exports almost all its production to many countries
including
The marble plant, though not a
100% export oriented unit, exports almost its entire production to various
countries, prominent ones being
Madhav
Marbles and Granites Limited is a member of the Marble Institute of
America
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(Rs.
in
Millions) |
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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.40.70 |
|
|
1 |
Rs.80.80 |
|
Euro |
1 |
Rs.54.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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/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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|