MIRA
INFORM REPORT
|
Report Date : |
17.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
MODERN INSECTICIDES LIMITED |
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Registered Office : |
2nd Floor, Kesar Complex, Near Machar Cinema, Gurdev Nagar,
Ludhiana – 141001, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
22.10.1990 |
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Com. Reg. No.: |
16-10771 |
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CIN No.: [Company
Identification No.] |
U24211PB1990PTC010771 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JLDM00959A |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturers of Agro Chemicals and Pesticides |
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 47000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are fair. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
2nd Floor, Kesar Complex, Near Malhar Cinema, Gurdev Nagar,
Ludhiana – 141001, Punjab, India |
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Tel. No.: |
91-161-2405625 / 2410765 |
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Fax No.: |
91-161-2403649 / 2410942 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Jagjit Singh Gujral |
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Designation : |
Managing Director |
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Address : |
435/8, Krishna Nagar, Civil Lines, Ludhiana – 141003, Punjab, India |
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Date of Birth/Age : |
02.11.1939 |
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Date of Appointment : |
22.10.1990 |
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Name : |
Mr. Avtar Singh Gujral |
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Designation : |
Director |
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Address : |
435/8, Krishna Nagar, Civil Lines, Ludhiana – 141003, Punjab, India |
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Date of Birth/Age : |
04.03.1943 |
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Date of Appointment : |
22.10.1990 |
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Name : |
Mr. Harpeet Singh Gujral |
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Designation : |
Director |
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Name : |
Mr. Charanjit Singh Gujral |
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Designation : |
Director |
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Address : |
435/8, Krishna Nagar, Civil Lines, Ludhiana – 141003, Punjab, India |
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Date of Birth/Age : |
05.12.1980 |
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Date of Appointment : |
16.07.2003 |
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Name : |
Mr. Kooner Singh Surinder |
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Designation : |
Director |
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Address : |
282, II – J, Bhai Randhir Singh Nagar, Ludhiana – 141001, Punjab,
India |
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Date of Birth/Age : |
05.05.1943 |
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Date of Appointment : |
22.10.1990 |
KEY EXECUTIVES
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Name : |
RCS and Company |
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Designation : |
Company Secretary |
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Address : |
B – 23/750 Janak Puri, Street No. 5, Industrial Area ‘A’, Ludhiana –
141003 |
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Tel No. : |
91-161-2609257 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
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No. of Shares |
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Jagjit Singh |
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14660 |
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Surinder Singh Kooner |
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17660 |
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Harpeet Singh |
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17490 |
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Modern Sprayers Private Limited |
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10100 |
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Parkash Kaur |
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9500 |
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Jasbir Kaur |
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15790 |
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Jaswant Singh Nagra |
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20000 |
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Panna Lala |
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2000 |
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Sarbjit Kaur Sangha |
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1500 |
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Arun Kumar |
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2000 |
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J. S. Lamba |
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6500 |
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Palwinder Singh |
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1950 |
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Kanwaljit Singh |
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1900 |
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Amarjit Singh |
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1400 |
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Equity Share Breakup
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Percentage of
Holding |
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Category |
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Bodies corporate |
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6.04 |
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Directors or relatives of directors |
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51.00 |
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Other top fifty shareholders |
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42.96 |
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Total |
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100.00 |
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BUSINESS DETAILS
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Line of Business : |
Manufacturers of Agro Chemicals and Pesticides |
GENERAL
INFORMATION
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No. of Employees : |
60 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Ashok Sareen and Associates Chartered Accountants |
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Address : |
89-90 Partap Colony, Model Gram, Ludhiana – 141002, Punjab, India |
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Tel. No.: |
91-161-2423232 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000 |
Equity Shares |
Rs. 10/-
each |
Rs. 5.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
167300 |
Equity Shares |
Rs. 10/-
each |
Rs. 1.673
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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1.673 |
1.673 |
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2] Share Application Money |
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2.366 |
2.366 |
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3] Reserves & Surplus |
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7.770 |
7.467 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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11.809 |
11.506 |
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LOAN FUNDS |
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1] Secured Loans |
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16.988 |
12.635 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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16.988 |
12.635 |
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DEFERRED TAX LIABILITIES |
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1.634 |
1.262 |
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TOTAL |
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30.431 |
25.403 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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22.500 |
12.402 |
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Capital work-in-progress |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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90.479 |
87.359 |
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Sundry Debtors |
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31.141 |
36.081 |
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Cash & Bank Balances |
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0.337 |
0.291 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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9.038 |
5.103 |
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Total
Current Assets |
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130.995 |
128.834 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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124.935 |
118.687 |
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Provisions |
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1.129 |
0.646 |
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Total
Current Liabilities |
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126.064 |
119.333 |
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Net Current Assets |
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4.931 |
9.501 |
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MISCELLANEOUS EXPENSES |
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3.000 |
3.500 |
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TOTAL |
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30.431 |
25.403 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover |
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132.054 |
195.410 |
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Total Income |
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132.054 |
195.410 |
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Profit/(Loss) Before Tax |
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1.150 |
2.114 |
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Provision for Taxation |
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0.813 |
0.582 |
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Profit/(Loss) After Tax |
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0.337 |
1.532 |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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0.26 |
0.78 |
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Net Profit Margin (PBT/Sales) |
(%) |
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0.87 |
1.08 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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0.75 |
1.50 |
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Return on Investment (ROI) (PBT/Networth) |
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0.10 |
0.18 |
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Debt Equity Ratio (Total Liability/Networth) |
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12.11 |
11.47 |
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Current Ratio (Current Asset/Current Liability) |
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1.04 |
1.08 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
|
Name of the company |
MODERN
INSECTICIDES LIMITED |
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Presented By |
Mr. Avtar Singh
– Managing Director |
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1) Date and description of instrument creating the change |
Memorandum of
agreement and loan agreement in form C – 5, both dated 8th
September, 2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 4.500
Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Pledge /
Hypothecation of Plant and machinery installed / to be installed at Company’s
works situated at Batbalia, Udhampur, Jammu |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Repayable in 60
months with monthly installments of Rs. 0.075 Millions each + interest. The
first installment shall start from December, 2005 Interest @ 12.60
% p.a. Margin 25 % Extent and
operation of charge : 100 % |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of
Patiala Hi-tech
Agriculture Branch, Ludhiana – 141001 |
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6) Date and brief description of instrument modifying the charge |
-- |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
-- |
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This form is for |
Modification of
charge |
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Charge
identification number of the charge to be modified |
10027218 |
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Corporate
identity number of the company |
U24211PB1990PTC010771 |
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Name of the
company |
MODERN INSECTICIDES LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
2nd Floor, Kesar Complex, Near Machar Cinema, Gurdev Nagar,
Ludhiana – 141001, Punjab, India |
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Type of charge |
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Particular of
charge holder |
Punjab National
Bank, Chandigarh Road, Ludhiana – 141008, Punjab, India |
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Nature of description
of the instrument creating or modifying the charge |
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Date of
instrument Creating the charge |
11.09.2007 |
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Amount secured by
the charge |
Rs. 118.991
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest C/C [Hyp] : 14.00
% p.a. PC : 10.25 % p.a.
Terms of
repayment On Demand Margin Stock : 25 % Book Debts : 40 %
Extent operation
of the charge 100 % Others : Total limits are
consisting of C/C Rs. 27.500 Millions BD : Rs. 5.000 Millions, PC Rs. 30.000
Millions, FOBNLC / FOUBNLC / FOBP Rs. 30.000 Millions, ILC DA Rs. 15.000
Millions FLC DA Rs. 25.000 Millions, term loan Rs. 0.991 Millions and term
loan Rs. 3.000 Millions |
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Short particulars
of the property charged |
Hypothecation of
assets including present and future stocks of raw materials, work in process,
finished goods, consumable stores and spares, present and future book debts
and other movable assets excluding bills purchased / discounted by bank and
plant and machinery and more particularly described in the agreements located
at company’s premises situated at Kohara, Focal point and Udhampur |
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Date of latest
modification prior to the present modification |
15.12.2006 |
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Particulars of
the present modification |
Total fund based
and not fund based limits have been increased to Rs. 118.991 Millions from
the existing limits of Rs. 61.750 Millions |
As
Per Website
Subject was started
in 1998 under the name of Modern Agro Sprayers Corp. with the sole objective of
providing Indian Farmers with the most Modern Insecticides at affordable prices.
Apart from giving best possible pesticides, company had committed itself to
work with the farmers, analyzing their crop problems and solving them in their
own fields by arranging demonstration and discussions.
With every passing year their resolve to satisfy the farmer's community met
with great success and farmers put their faith in Modern Insecticides Limited's
products. This encouraged them to go in for latest agro products which were
needed by the farmers. Today they have 34 products on their range and hope to
add some more within next one or two years so that farmers could be provided
with a complete package.
Research &
Development
The Research & Development is a continuous process at subject., which is
carried out by a team of skilled and dedicated researchers and scientists, with
a vast experience in the field of agrochemicals.
Company is committed
to produce the best Quality of world standard pesticides thru strict quality
check measures. Their quality assurance staff is highly qualified and trained
in this line. Each Product passes thru rigorous and exhaustive quality checks
before it is rolled out of their plant premises. This is the reason, why their
products give the best control in the field.
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.39.34 |
|
UK Pound |
1 |
Rs.80.72 |
|
Euro |
1 |
Rs.57.71 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
45 |
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 |
|