POKARNA Share price

Pokarna Granites Ltd was incorporated on 9th October 1991as a Limited Company with an objective to take over therunning business of M/s Pokarna Granites a partnershipconcern. The Company obtained Certificate of Commencementof Business on 28th November 1994 and took over PokarnaGranites as a going concern on 1.12.1994. The firm hassince been dissolved.M/s.POKARNA GRANITES is engaged in granite quarrying . Itwas established in the year 1991 as a partnership concernand acquired 24.10 acres of BLACK GALAXY granite quarry inR.L.Puram Village Chimakurthy Mandal Prakasham Districtof Andhra Pradesh. The quarrying operations commenced inthe month of April 1992.All the quarrying operations are mechanised and areequipped with the latest quarrying equipment such asDiamond Wire Saw Cutting and Automatic Channelling andDrilling. The firm has also acquired and developed othercolour granite quarries during 1993 and 1994 and followingare the quarries under operation:***********Description of Ouarry Area in Acres Locationa) GALAXY BLACK 24.10 R L P u r a m Chimaku rthy Mandal Andhra Pradeshb) VIZAG BLUE/BENGAL BLUE 5.00 Tekkali Andhra Pradeshc) SILVER PEARL 10.00 Konidena Village Prakasham Dis- trict Andhra Pradeshd) ABSOLUTE BLACK 6.18 VenkatagiriKesa mudram Mandal Warangal District Andhra PradeshIn addition to the above the Company has already acquired quarries inPrivate Leases in the following colours:Description of Ouarry Area in Acres Locationa) SAPHIRE BROWN 4.90 MadikondaVillage Hanumakonda Mandal Warangal District Andhra Pradesh.b) BLACK 20.00 Anekkal Banga- lore District Karnataka Total 24.90For the above two quarries necessary applications are made for obtainingmining leases. In addition to the these the Company proposes to acquiremore granite quarries in the States of Andhra Pradesh Karnataka andTamil Nadu as an ongoing process.PRESENT BUSINESSM s.POKARNA GRANITES LIMITED was incorporated in October 1991as a Public Limited Company under the Companies Act 1956.As per the main object - Clause No. 4 of the Memorandum of Associationof the Company M/s Pokarna Granites Ltd. took over the running busi-ness of M/s Pokarna Granites on going concern basis as per the terms andconditions of the agreement between the company and the partners ofPokarna Granites as at the closing hours of 30th November 1994 and thefirm Pokarna Granites has become the proprietory unit of the companywith effect from 30.11.1 994.ln terms of the agreement with Pokarna Gran-ites for take over of business 424500 equity shares of Rs. 10/-have beenalloted to various. partners of the firm at the Meeting of the Board of Direc-tors on 1.12.1994.The value of the assets & liabilities has been taken as per audited balancesheet of the firm as on 30.11.1994. There has been no revaluation of as-sets. The value of the assets as reduced by the liabilities amount to Rs.214.04 lacs against which 424500 Equity Shares of Rs. 10/-each amount-ing to Rs. 42.45 lacs have been allotted as fully paid up. The balance ofRs. 171.59 lacs being the free reserves were utilised for issuing bonusshares in the ratio of 4:1.The taken over assets include 24.10 acres of Black Galaxy Quarry on along term lease at a notional lease rent of Rs. 1 per acre per year.The assets and liabilities of M/s Pokarna Granites as on 30.11.1994 stoodas follows:Assets: Rs. in IakhsFixed Assets(Net Block) 263.95InvestmentsInventories 43.50Sundry Debtors 62.44Cash & Bank Balances 22.07Advances/Deposits 9.91Total 401.87Liabilities:Partners Current Accounts 171.59Partners Capital Accounts 42.45Secured Loans 118.52Unsecured Loans 17.01Sundry Creditors 1.93W.C Loan from Union Bank of India 50.37Total 401.87As per the main object - Clause No. 4 of the Memorandum of Association W.C Loan from Union Bank of India 50.37of the Company M/s Pokarna Granites Ltd. took over the running busi-ness of M/s Pokarna Granifes ongoing concern basis as per the terms and Total 401.87conditions of the agreement between the company and the partners ofDETAILS OF QUARRIESQuarry Nature Deposit Lease Lease Dead Rent RoyaltyLocation of land Amount Rental Period Payable to (Rs.) Rs. State Govt. Rs. Per AnnumBlack Private 670000 Re. 1/- 25 yrs 30000'' 1500/CBMGalaxy Lease per acre renewable per in case ofChimakurthy per annum at the hectare sale out ofMandal option of state & 750/Prakasham Dt the lessee CBM within(A P) state saleVizag Blue Govt - - 5 yrs 25000 -1000/CBM inTekkali Mandat Lease renewable per case of saleSrikakulam Dt. at the hectare out of state(A F) option of & 500/CBM the lessee within state saleSilver Pearl Govt - - -do- -do- -do-Ballikuruva LeasePrakasham Dt(A.P)Absolute Private 800000 500 per 15 years 30000 1500/CBM inBlack Lease acre p.a renewable per case of saleVenkatagiri at the hectare out of stateKesamudram option of & 750/CBMWarangal the lessee within state-(A.P) sale.Saphire Private 500000 800 per -do- 25000 1000/CBM inBrown Lease CBM per case of saleMadikonda hectare out of stateHanmakonda & 500/CBMWarangal within stateiA.P) sale.Anekkal Private 2000000 - 20 years - -Bangatore Lease renewableKarnataka at the option of the lesseeThe Company has entered into a lease agreement on 6.12.1994 for theotiarries in Srikakulam and Prakasam Districts.In respect of Hanumakonda(A.P) and Anekal(Karnataka) Quarries theCompany has made application for mining leases to the Department ofMines and Geology of the respective State Governments. The State Gov-ernments formalities in granting the lease is as follows.a. The Company has to submit the No Objection Certificate from the Rev-enue Authorities.h. The NOC from the revenue authorities is to be submitted to the De-partment of Mines and Geology together with the sale agreement andother documents.c. The Department of Mines and Geology then conducts a survey of theland.(t. Once the above formalities are completed the Department grants thelease and the agreement has to be executed.The Company shall keep the issue proceeds in a fixed deposit ac-count with a Bank until it is required.There are no labour disputes and outstanding litigations other thanthat mentioned as contingent liability elsewhere in the prospectus.TheCompany has not faced any labour problems and there was no clo-sure of any quarries.SUBSIDIARIES OF THE COMPANYThe Company does not have any subsidiaries.