Midwest Gold Ltd

Midwest Gold Ltd

.rm77 NOVA GRANITES (INDIA) LTD.BRIEF HISTORY : Incorporated on 20th November 1990 and obtained the Certificate for Commencement of Business on 1st October 1992. Promoted by Prabhat K.Tyagi Subhas K. Mahbubani Pawan Kumar Jain and J. Basant Surana. Commenced its export of lprocessed dimensional granite blocks in 1992-93.THE PROJECT : Setting up 100% EOU Project for the manufacture of polished granite slabs and tiles of various colours and sizes with an installed capacity of 89600sq. mtrs. perannum. Acquired land admeasuring 21016 sq mts. on lease-cum-sale basis plot 25A Attbele Industrial Area Anekal Taluk Bangalore Dist. Karnataka. Major pllant and equipment like gangswas with computerised control systems slab cross cutting machine edge ctting machine edge cutting machine calibrating machine etc. were being improted from SIMEC s.p.a. Italy. The other machinery including 30T goliath crane EOT crane quarry equipment etc. were being procured indigenously. Granite is used in commercial and resiodential building as a finishing materials just like marble and ceramic tiles.MARKETING ARRANGEMENTS : Entered into a sale agreement with Euro Granit Enterprises S.A.(EUGE) to buy a minimum of 50000 sq.mts.p.a.of granite slabs & tiles at prices prevailing in the international market for an initial period of 3 years anbd can be extended for another 2 years.COST OF THE PROJECT & FINANCE : The total cost of the project estimated at Rs.1460 lakhs was to be met by equity capital of Rs.760 lakhs and term loans of Rs.700 lakhs (Rs.425 lakhs from IDBI and Rs.275 lakhs form SBI).SCHEDULE OF IMPLEMENTATION : Commercial production expected to commence by July 1994.RISKS AS PERCEIVED BY TEH MANAGEMENT : (i) Delay in delivery of machines may affect the financial projections. (ii) Power of 326 KVA iyt if titak reqyurenebt if 726 KVA is yet to be tied up. (iii) the cost of the project is subject to variation on account of exchange rates fluctuation rupee devaluation rise in input costs etc. (iv) Changes in Government policies with regard to imports excise/customs duties local tax3es etc. would have a bearing on the cost of the project/profitability. (v) The policies of the Government in respect of miniing and leasing of quarries have a direct bearing on the availability of raw materials.DETAILS OF THE ISSUE : Authorised caplital of Rs.2000 lakhs comprises 200 lakh equity shares of Rs.10 each 1730570 equity shares of Rs. 10 each shares of Rs. 10 each issued subscribed and paid up 5869430 equity shares of Rs. 10 each now being issued of which the following are reserved for firm allotment: (i) 2669430 shares to promoters directors and associates including EUGE: (ii) 300000 shares to UTI; (iii) 300000 shares to IDBI; (iv) 300000 shares to SBI Mutual Fund; (v) 300000 shares to 20th Century MUtual Fund. The remaining 2000000 shares are to be issued to the public.The Company was incorporated as a Public Limited Company on 20th November 1990 with its Registered Office at Bangalore and obtained its certificate for commencement of business on 1st October 1992. The Company commenced its export of processed dimensional granite blocks in 1992-93 and achieved a turnover of Rs.60.44 lacs during the year. In the current year exports upto December 1993 were Rs.199.93 lacs. The project as appraised by Industrial Development Bank of India is to set up facilities for a 100% Export Oriented Unit at Attibele Anekal Taluk Bangalore District in Karnataka for the manufacture of polished granite tiles and slabs of various colours and sizes with an installed capacity of 89600 sq.mts per annum.The Company does not belong to any existing industrial group.During the year 1996-97 the company earned Rs 1.46 cr by export.