MIRA INFORM REPORT

 

 

Report Date :

02.10.2007

 

IDENTIFICATION DETAILS

 

Name :

MYSORE MINERALS LIMITED

 

 

Registered Office :

No. 39, United Mansion, M G Road, Bangalore 560 001, Karnataka

 

 

Country :

India

 

 

Date of Incorporation :

13.05.1966

 

 

Com. Reg. No.:

1620

 

 

CIN No.:

[Company Identification No.]

U85110KA1996PTC001620

 

 

Legal Form :

Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Minerals, Raw Materials, Granites and Rough Granite Blocks, Mining and Marketing of Various Products like Minerals like Dolmoite, Iron Ore, Chromite, Limestone, Clay, Celdspr, Soap Stone, Manganese Quartz, Granites like Black Granite, Pink Granite, Yellow Granite, Green, Grey, Multi Colours.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

--

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company having satisfactory track. Directors are reported as experience and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments.

The company can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

No. 39, United Mansion, M G Road, Bangalore 560 001, India

Tel. No.:

91-80-25580390 / 73 / 74 / 75 / 91-80-25582450 / 91-80-25596257 / 91-80-25583172

Mobile No.:

91-9448572450

Fax No.:

91-80-25583172

E-Mail :

gm@mysoreminerals.com

cmd@mysoreminerals.com

Website :

www.mysoreminerals.com

Area :

20000 sq. fts.

Location :

Owned (Govt. of Karnataka)

 

 

Mines :

Different Locations All Over Karnataka

(40 Mining Lasers, 26 Granite Lasers)

 

 

Factory  :

Bageshpura

 

 

DIRECTORS

 

Name :

Mr. Mahendra Jain

Designation :

Managing Director  and Chairman

Other Directorship:

Ø       Secretary Industries Department

Ø       Commissioner Mines and Geology Department

Ø       Managing Director  - Hatti Gold Mines Limited

Ø       Secretary Finance Department

 

 

Name :

Mr. Jija Maoway Hari Singh

Designation :

Managing Director

 

 

Name :

Mr. L Shanthakumari

Designation :

Managing Director

 

 

Name :

Mrs. Meera C Sakeena

Designation :

Director

 

 

Name :

Mr. Arvind Jadhav

Designation :

Director

 

 

Name :

Mr. Shamim Banu

Designation :

Director

 

 

Name :

Mr. K N Shrivastava

Designation :

Director

 

 

Name :

Mrs. Tara Ajai Singh

Designation :

Director

 

 

Name :

Mr. P Ravikumar

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Prof. B T Luxman

Designation :

General Manager (Production and Marketing)

 

 

Name :

Mr. B B Nanjegowda

Designation :

Chairman

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Minerals, Raw Materials, Granites and Rough Granite Blocks, Mining and Marketing of Various Products like Minerals like Dolmoite, Iron Ore, Chromite, Limestone, Clay, Celdspr, Soap Stone, Manganese Quartz, Granites like Black Granite, Pink Granite, Yellow Granite, Green, Grey, Multi Colours.

 

 

Products :

Ores, Iron

Ø       Haematite / Kidney Ore

Ø       Limonite / Brown Haematite

 

Ores, Alloying Element

Ø       Chromium ores and minerals

Ø       Cobalt ores and minerals

Ø       Manganese ores and minerals

Ø       Nickel ores and minerals

 

Ores, heavy metal

Ø       Ores, heay metal, sintered

 

Plutonic rocks

Ø       Granite

 

Dunite

Premium Recovered

Royalty Recovered

 

 

Exports :

 

Products :

Ø       Metals Ores

Ø       Iron Ores

Ø       Manatite

Ø       Chromite

Ø       Mangenase

Ø       Lime Stones 

Countries :

Italy, Japan, Chaina and Singapore

 

 

GENERAL INFORMATION

 

Customers :

Ø       Steel Mills

Ø       Steel Plants

Ø       Granite Processing Unit

 

 

No. of Employees :

2500

 

 

Bankers :

Ø       Canara Bank, M G Road Branch

Ø       State Bank of India , M G Road Branch

Ø       State Bank of Mysore , M G Road Branch

 

 

Facilities :

Nil

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Radhika and Company

Chartered Accountants

Address :

Karnataka, India

 

 

Memberships :

Ø       FIMI

Ø       FEIO

Ø       CAPEXIL

Ø       ISVL

Ø       Kalyani Steel

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

7000000

Equity shares

Rs. 10/- each

Rs. 70.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

3000000

Equity shares

Rs. 10/- each

Rs. 30.000 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

31.03.2007

31.03.2006

Sales Turnover

 

Around 1800.000

Around 2100.000

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2002

31.03.2001

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

30.000

30.000

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

3.286

3.511

4] (Accumulated Losses)

 

(284.994)

(292.531)

NETWORTH

 

(251.708)

(259.020)

LOAN FUNDS

 

 

 

1] Secured Loans

 

122.034

130.612

2] Unsecured Loans

 

169.378

141.678

TOTAL BORROWING

 

291.412

272.290

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

39.704

13.270

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

35.906

47.209

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

3.060

3.069

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

 

Sundry Debtors

 

 

 

 

Cash & Bank Balances

 

320.513

264.204

 

Other Current Assets

 

 

 

 

Loans & Advances

 

 

 

Total Current Assets

 

320.513

264.204

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Current Liabilities

 

389.413

377.186

 

Provisions

 

0.000

0.000

Total Current Liabilities

 

389.413

377.186

Net Current Assets

 

(68.900)

(112.982)

 

 

 

 

MISCELLANEOUS EXPENSES

 

69.638

75.974

 

 

 

 

TOTAL

 

39.704

13.270

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2002

31.03.2001

Total Income

 

349.103

203.604

 

 

 

 

Profit/(Loss) Before Tax

 

12.335

(168.483)

Provision for Taxation

 

0.000

0.000

Profit/(Loss) After Tax

 

12.335

(168.483)

 

 

 

 

Expenditures :

 

 

 

 

Salaries, Wages, Bonus, etc.

 

120.690

157.805

 

Rent and Royalty

 

2.129

9.236

 

Interest

 

63.018

60.482

Total Expenditure

 

336.768

372.087

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2002

31.03.2001

PAT / Total Income

(%)

 

3.53

(82.75)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

 

3.53

(82.75)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

 

3.47

(54.10)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

 

(0.04)

0.65

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

 

(2.70)

(2.50)

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

 

0.82

0.70

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

As Per Web Details:

Subject (MML) has been a dynamic player in the Mining field and has been responsible for the efficient harnessing of this resources.

 

MML has been involved in the Mining Business since 1966 and today is a recognized name in the industry with high competent and scientific methods to its credit. Capitalizing on this natural resource of Karnataka and acting as an agent of the Government has made MML a vital link in the Local as well as Global trade relations.

 

Karnataka has been blessed with vast deposits of granite. Heritage sites like Hampi and Shravanabelagola are living testimonies of the awe-inspiring effect of this stone. Granite is widely available in the state and lends its beauty to structures not just within the country but outside as well.

 

 

Right to Information Act

INFORMATION UNDER Sec 4[1] [b] OF RIGHT TO INFORMATION ACT 2005

CHAPTER II

 

Particulars of the organization, its functions and duties

Background, Aims and achievements of the organization

 

Subject, a fully owned Company of Government of Karnataka was established in the year 1966 by taking over the assets of the erstwhile Board of Mineral Development. The Company is registered under the Companies Act 1956.

 

Initially, the Company had confined its activities to exploration, production and marketing of the various minerals available in the State. The prominent minerals which were the main resource of the Company were Chromite, Manganese and Iron Ore. The Company is one of the major producers of Iron Ore, Chromite, Magnesite, Clay, Limestone, Dolomite in the State.

 

Keeping in view the demand in the international market for the different colours of granite blocks available in the State, the Company had entered into the area of production and marketing of granite blocks of different colours available in Kanakapura, Hassan, Chamarajnagar and Ilkal Sectors.

 

During the year 1982 – 1983, the Company had taken up diversification programmes to expand its activities. Under this programme, the Company had established a Stoneware Pipe producing unit in Bageshpura, Hassan District and also started an 100 % export oriented unit for cutting and polishing of granite blocks in Hassan Industrial Area during the year 1984 – 85

 

Subject is headed by the Managing Director. The other Officers are, Chief Administrative and Vigilance Officer, Chief General Manager, Chief Administrative Manager [W], Deputy Controller of Finance, Company Secretary and staff assisting the Managing Director.

 

Subject has 45 mining leases and 27 quarry leases in different parts of Karnataka and has provided gainful employment to 1318 employees.

 

The financial status of the Company is given below:

 

 

PARTICULARS

RUPEES [in Millions]

a

Authorised share capital

70.000

b

Paid up share capital

30.000

c

Total turnover of the Company since inception 1966 – 67

5303.961

d

Total foreign exchange earned from 1966 - 67

2028.330

e

Total revenue remitted to Government in the form of royalty, Taxes etc., from 1966 - 67

627.945

f

Dividend paid to Government 2003 - 04

20.114

 

The turnover made and the profit earned by the Company during the last three financial years is given hereunder.

[Rupees in Millions]

 

Financial Year

Turn over

Profit

2001 – 02

315.321

14.648

2002 – 03

333.759

23.181

2003 - 04

585.628

18.575

2004 – 05

1083.767

413.618

 

 

Organization

The company has employed 1318 staff and workers and is one of the leading mining industry of the State. In addition to mining and quarrying, Subject is owning a mineral based Stone Ware Pipe Factory at bageshpura and also a 100% Export Oriented Unit, Granite Cutting and Polishing Unit as Hassan(non -working at the present).


The following are the major minerals produced by Subject.

Ø       Chromite

Ø       Iron Ore

Ø       Limestone

Ø       Dolomite

Ø       Magnesite

Ø       China Clay

Ø       Aluminous Clay

Ø       Quartz

Ø       Feldspar

Ø       Bauxite

Ø       Dunite

Ø       Manganese (closed on account of F.C. Act, 1980)

 

Similarly, the following are the major coloured granites produced by MML.

Ø       Ruby Red(llkal)

Ø       Fish Belly(Mudgal)

Ø       Multicolour(Kanakapura)

Ø       Juprana(Kanakapura)

Ø       Hassan Granite(Chamarajanagar and Kanakapura)

Ø       Chocolate Brown(Badanahatti)

Ø       Pink Panther(Koppal)

 

In the present growing financial status of the company, its inbuilt technical know how, implementation of Corporate strategy and good governace with its strength of possessing fairly good Mining Leases and opportunity of demand in the market for various minerals products, the company can go a long way in achieving self sufficiency and sustainance.

 

 

Company Profile

Subject, a Government of Karnataka undertaking was incorporated under the Companies Act in 1966 and taken over the assets of the board of Mineral Development with a main aim to exploit the available mineral resources in various regions of their state to cater to the needs of local indurstry and to create employment opportunity of the mineral regions also is the objective of achieving the Social and Economic obligation of the State in the Mining Sector.

 

Subject is engaged in scientific and eco-friendly exploration, exploitation and marketing of various minerals in the State of Karnatka.

 

At present Subject has 45 Mining Leases covering an area of 5440.06 hectares and 27 quarry leases covering an area of 781.38 hectares for various minerals and granites as mentioned above.

 

In the present growing financial status of the company, its inbuilt technical know how, implementation of Corporate strategy and good governance with its strength of possessing fairly good Mining Leases and opportunity of demand in the market for various minerals products, the company can go a long way in achieving self sufficiency and sustainance.

 

The corporate strategy to operate the mines and quarries, profitablity has been formulated and implemented.

With the dynamic modification of business strategy, based on the changing scenario the company poised to achieve a turnover of Rs.800.000 millions during 2004-2005.

 

Training programmes are being conducted to motivates as well as multi-skill the personnel.

 

The company is one of the largest producer of chormite, Mangesite, Limestone, dolomite, Iron Ore, clay and Granite in the state.

 

With the above production and market strategy of the company could able to make profit for the years 2001-03 and 2003-04.

 

They work with a strongly founded infrastructure that is designed to optimize time and effort. Retaining quality standards is a priority to ensure that they satisfy their clients from all over the world.


Their Business spans over:

Ø       17 quarries

Ø       45 mines

Ø       Scientific Methodology

Ø       38 years of experience

Ø       Eco-Friendly exploration And

Ø       Mining technologies

 

BOARD OF DIRECTORS OF SUBJECT

Telephone Numbers & Extensions

 

Sl No.

EMPLOYEE NAME

DESIGNATION

E-MAIL ID

TELEPHONE NO.

1

 Sri. Mahendra Jain IAS

 Chairman And Managing  Director

 cmd@mysoreminerals.com

25583275

2

 Sri. Gangaram Baderiya,IAS,

 Director

 

 

3

 Sri Ashok V.Devid,IAS,

 Director

 diravd@mysoreminerals.com

25323840

4

 Dr.S.Subramanya,IAS,

 Director

 dirss@mysoreminerals.com

22353138

5

 Sri Yogendra Tripathi,IAS,

 Director

 diryt@mysoreminerals.com

22269632

7

 Sri K.R.Thathaiah,

 Director

 dirkrt@mysoreminerals.com

0813-1241833

8

 Sri Kanthappa Alva,

 Director

 dirka@mysoreminerals.com

0825-5239675

9

 Sri Abdul Azeez,

 Director

 diraa@mysoreminerals.com

0821-497675

10

 Sri B.B.Patil

 Director

 dirbbp@mysoreminerals.com

0831-362509

11

 Sri Kishore Kumar,

 Director

 dirkk@mysoreminerals.com

958152-224660

 

 

EMPLOYEES
Telephone Extension Numbers

 

Sl No.

EMPLOYEE NAME

DESIGNATION

E-MAIL ID

EXT NO.

1

 Sri. Mahendra Jain,IAS

 Chairman And Managing Director

 cmd@mysoreminerals.com

10

2

 Sri Praveen Chandra, IFS

 Executive Director

 ed@mysoreminerals.com

12

3

 Sri S.Krishna,KAS

 Chief Admin. & Vigilance Officer

 cavo@mysoreminerals.com

60,21

4

 Sri V.Venugopal

 General Manager[p]

 gm@mysoreminerals.com

48

5

 Sri NanadaKumar

 Dy.General Manager [finance]

 

 

6

 Sri Chandrashekar

 Asst. General Manager[Eg]

 agmeg@mysoreminerals.com

32

7

 Sri Sanjeevagowda

 Asst. General Manager[Env]

 agmenv@mysoreminerals.com

25

8

 Sri M.G. Basavarajappa

 Law Officer

 lo@mysoreminerals.com

71

9

 Sri K.S.Srinivasan

 Manager [Eq]

 

 

10

 Sri K.V.Venkatiah

 Manager [Production]

 

 

11

 Sri V. Govindaraj

 Asst. Executive Engineer

 agmm@mysoreminerals.com

66

12

 Sri K.S.Umesh

 Asst.Executive Engineer

 umeshks@mysoreminerals.com

 

13

 C.S.Muralidhar

 Dy.Manager(F)

 amcsm@mysoreminerals.com

52

14

 Sri Ravi Kumar

 Dy.Manager

 

63

15

 Sri D.Chandraiah

 Dy.Manager

 amdc@mysoreminerals.com

74

 

 

 

 


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 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.39.73

UK Pound

1

Rs.81.37

Euro

1

Rs.56.63

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

TOTAL

 

52

 

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

 

 

 

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