MIRA
INFORM REPORT
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Report Date : |
08.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
MODISON PRIVATE LIMITED |
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Formally Known As : |
MODISON OXIDES LIMITED |
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Registered Office : |
33,Nariman Bhavan, 227 Nariman Point, Mumbai – 400 021, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
16.05.1984 |
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Com. Reg. No.: |
32895 |
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CIN No.: [Company
Identification No.] |
U24110MH1984PLC032895 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of Electrical Contacts |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 682785 |
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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 and reputed company having fine
track.Trade relations are fair. Business is active. General financial Position is satisfactory.
Payments are reported as usually correct and as per commitments. |
INFORMATION PARTED
BY
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Name : |
Mr.Ramesh Kothari |
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Designation : |
Vice President |
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Date : |
06.09.2008 |
LOCATIONS
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Registered Office : |
33,Nariman Bhavan, 227 Nariman Point, Mumbai – 400 021, Maharashtra |
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Tel. No.: |
91-22-22026437 |
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Mobile No.: |
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Fax No.: |
91-22-22048009 |
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E-Mail : |
info@modison.com / purchase@modison.com / rkothari@modison.com /silverware@modison.com /services@modison.com |
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Website : |
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Area : |
520 Sq.fts. |
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Location : |
Owned |
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Factory: |
Shah Industrial Estate - Chembur |
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Factory: |
Plot No. 5, Government Industrial Estate, Piparia,
Silvassa – 396230, United
Territory of Dadara and Nagar Haveli
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Tel. No.: |
91-260-22640994 |
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Factory : |
Near Shah industrial Estate, Deonar, Mumbai – 400088,
Maharashtra |
DIRECTORS
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Name : |
Mr. Girdharilal M. Modi |
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Designation : |
Director |
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Address : |
14-A, Shanaz, 90-Nepean Sea Road, Mumbai – 400006, Maharashtra |
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Date of Birth/Age : |
04.06.1941 |
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Qualification : |
38 Years |
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Experience : |
D.M.E. |
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Date of Appointment : |
16.05.1984 |
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Name : |
Mr. Sanwarmal M. Mody |
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Designation : |
Director |
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Address : |
74, Dariya Mahal, ‘A’, 80 Nepean Sea Road, Mumbai –
400006, Maharashtra |
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Date of Birth/Age : |
25.09.1938 |
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Qualification : |
Under Graduate |
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Experience : |
41 Years |
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Date of Appointment : |
16.05.1984 |
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Name : |
Mr. PrakashChandra M. Modi |
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Designation : |
Director |
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Address : |
76, Dariya Mahal ‘A’, 80 Nepean Sea Road, Mumbai – 400006, Maharashtra |
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Date of Birth/Age : |
30.06.1963 |
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Qualification : |
B.Com |
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Experience : |
20 Years |
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Date of Appointment : |
16.05.1984 |
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Name : |
Mr. RajKumar M. Modi |
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Designation : |
Director |
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Address : |
76, Dariya Mahal ‘A’, 80 Nepean Sea Road, Mumbai – 400006, Maharashtra |
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Date of Birth/Age : |
08.03.1965 |
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Qualification : |
M.B.A. |
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Experience : |
16 Years |
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Date of Appointment : |
05.05.1990 |
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Name : |
Mr. Anand Kumar S. Mody |
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Designation : |
Director |
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Address : |
74, Dariya Mahal, ‘A’, 80 Nepean Sea Road, Mumbai – 400006, Maharashtra |
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Date of Birth/Age : |
02.06.1976 |
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Qualification : |
M.B.A. |
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Experience : |
4 Years |
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Date of Appointment : |
01.11.2001 |
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Name : |
Mr. KumarJay G. Modi |
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Designation : |
Director |
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Address : |
14-A, Shanaz, 90-Neean Sea Road, Mumbai – 400006, Maharashtra |
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Date of Birth/Age : |
05.12.1978 |
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Qualification : |
B.Com |
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Experience : |
3 years |
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Date of Appointment : |
01.11.2001 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2005)
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Names of Shareholders |
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No. of Shares |
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Shri Mody M. Sanwarmal |
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12343 |
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Shri Modi M. Girdharilal |
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12543 |
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Shri Modi M. Kashiprasad |
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750 |
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Shri Modi M. Prakashchandra |
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10274 |
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Shri Modi M. Rajkumar |
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10274 |
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Shri Mody S. Amit Kumar |
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150 |
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Shri Mody S. Anand Kumar |
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150 |
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Shri Modi G. Kumar Jay |
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100 |
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Total |
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46584 |
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EQUITY SHARE BREAKUP (PERCENTAGE OF TOTAL EQUITY)
(As on 31.03.2007)
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Category |
Percentage |
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Directors or Relatives of Director |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Electrical Contacts |
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Products : |
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Imports : |
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Countries : |
UK |
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Terms : |
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Selling : |
Cash / Credit |
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Purchasing : |
Cash / Credit |
GENERAL
INFORMATION
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Customers : |
Manufacturer |
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No. of Employees : |
40 (in office + in factory) |
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Bankers : |
v Bank of India Nariman Point Branch, Air India Building, Mumbai – 400 021 Maharashtra |
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Facilities : |
CC – Rs.60.000 millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
v M. L. Bhuwania & Company Chartered Accountants Dahanukar Building, 5th Floor, 409 Kalbadevi Road, Mumbai – 400 002, Maharashtra |
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Tel. No.: |
91-22- 22061869 |
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Sister Concern |
v Modison Metals
Limited, 33, Nariman Bhavan, 227, Nariman Point, Mumbai – 400021,
Maharashtra, India Line of Business; Manufacturer of Electrical
Contacts v Modison Chemtech
(Private) Limited v Modison Silver
Alloys Private Limited v Modison
Contracts Private Limited v Modison Copper
Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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60000 |
Equity Share |
Rs.100/- each |
Rs.6.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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46584 |
Equity Share |
Rs.100/-
each |
Rs.4.658
millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
4.658 |
4.658 |
4.658 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
131.899 |
171.115 |
151.812 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
136.557 |
175.773 |
156.470 |
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LOAN FUNDS |
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1] Secured Loans |
55.468 |
55.449 |
26.100 |
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2] Unsecured Loans |
60.375 |
46.414 |
42.213 |
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TOTAL BORROWING |
115.843 |
101.863 |
68.313 |
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DEFERRED TAX LIABILITIES |
1.872 |
6.970 |
4.131 |
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TOTAL |
254.272 |
284.606 |
228.914 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
100.431 |
157.550 |
100.876 |
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Capital work-in-progress |
8.877 |
1.788 |
26.148 |
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INVESTMENT |
3.610 |
5.354 |
6.994 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
96.787
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87.767 |
71.670 |
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Sundry Debtors |
14.064
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26.287 |
19.340 |
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Cash & Bank Balances |
4.922
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3.846 |
3.476 |
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Other Current Assets |
19.919
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0.044 |
1.461 |
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Loans & Advances |
68.029
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62.762 |
43.743 |
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Total
Current Assets |
203.721
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180.706 |
139.690 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
18.921
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12.316 |
9.167 |
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Provisions |
43.446
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48.476 |
35.628 |
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Total
Current Liabilities |
62.367
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60.792 |
44.795 |
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Net Current Assets |
141.354
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119.914 |
94.895 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
254.272 |
284.606 |
228.914 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
443.713 |
475.895 |
319.696 |
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Other Income |
30.301 |
5.285 |
5.114 |
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Total Income |
474.015 |
481.181 |
324.810 |
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Profit/(Loss) Before Tax |
68.930 |
45.719 |
36.936 |
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Provision for Taxation |
15.099 |
15.378 |
11.905 |
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Profit/(Loss) After Tax |
53.831 |
30.341 |
25.031 |
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Expenditures : |
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Raw Material Consumed |
362.553 |
376.212 |
252.831 |
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Purchases made for re-sale |
0.000 |
0.000 |
1.371 |
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Consumption of stores and spares parts |
2.645 |
5.096 |
4.568 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
(8.730) |
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Salaries, Wages, Bonus, etc. |
8.255 |
9.233 |
7.921 |
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Managerial Remuneration |
1.565 |
1.234 |
0.296 |
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Payment to Auditors |
0.116 |
0.069 |
0.076 |
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Interest |
8.269 |
8.511 |
3.407 |
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Insurance Expenses |
0.719 |
0.732 |
0.496 |
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Power & Fuel |
5.073 |
11.531 |
9.056 |
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Depreciation & Amortization |
5.671 |
6.001 |
4.739 |
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Other Expenditure |
10.218 |
16.842 |
11.843 |
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Total Expenditure |
405.084 |
435.461 |
287.874 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
11.35
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6.29 |
7.70 |
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Net Profit Margin (PBT/Sales) |
(%) |
15.53
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60.23 |
11.55 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
21.76
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13.23 |
13.49 |
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Return on Investment (ROI) (PBT/Networth) |
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0.50
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0.26 |
0.23 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.30
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0.92 |
0.72 |
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Current Ratio (Current Asset/Current Liability) |
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3.26
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2.97 |
3.11 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Name of the company |
MODISON PRIVATE
LIMITED |
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Presented
By |
Bank of India Nariman Point
branch, Air India Building, Mumbai - 400021 |
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1) Date and description of instrument creating the change |
Agreement of
charge and Hypothecation of Book Debts Dated- 10.05.1990 executed by the
Company in favour of Bank of India |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.5.000 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 |
All tangible
moveable assets of the borrower including in particular all Book Debts of the
company,outstanding ,money
receivable, claims and bills which are now due and owing or which may at any
time thereafter during the continuance of this Security become due and owing
to the company in course of business by any local body or authority. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Hypothecation of
assets as described in column (3) and such assets of the nature mentioned
column (3) as are/ or may at any time be in possession of power of the
company to secure a Demand Cash Credit of Rs.5.000 millions carrying interest
@ 16.5% per annum interest with quarterly rests or at such other rates as may
be notified to the company by the Bank from time to time with power to the
Bank to seize and realize. |
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5) Name and Address and description of the person entitled to the charge. |
Bank of India Nariman Point
branch, Air India Building, Mumbai - 400021 |
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6) Date and brief description of instrument modifying the charge |
Third
Supplemental Deed of Hypothecation of Book Debts Date – 15.12.2005 in favour
of Bank of India, Modifying the charge from Rs.11.800 millions to Rs.15.000
millions |
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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. |
The bank has
granted to the company an additional cash credit book debts limit of Rs.3.200
millions making total limit of Rs.15.000 millions on 15.12.2005 at 0.75% per
annum below BPLR, Min.10% per annum with monthly rests or at such other rates
as may be notified to the company by the bank from time to time. |
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This form is for |
Creation of
charge |
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Corporate
identity number of the company |
U24110MH1984PLC032895 |
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Name of the company
|
MODISON PRIVATE
LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
33 Nariman
Bhavan,227 Nariman Point, Mumbai – 400021, Maharashtra,India |
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Type of charge |
Immovable Property |
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Particular of
charge holder |
Bank Of India Nariman Point
branch, Air India Building, 216, Backbay Reclamation,Nariman Point Mumbai - 400021 |
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Nature of
description of the instrument creating or modifying the charge |
Equitable
Mortgage – Oral Assent |
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Date of
instrument Creating the charge |
28.01.2008 |
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Amount secured by
the charge |
Rs.96.200
millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
a)
RATE OF INTEREST: Concessional Roi of 2.25% per annum.Below BPLR
Min.11.00% per annum Floating for term loan liabilities (Persent BPLR 13.25%) Concessional Roi
of 1% per annum Below BPLR Min 12.25% per annum Floating for cash credit
limit (Present BPLR 13.25%) 50% of Applicable
Charges in respect of Import L/C- Dp-DA-180 Days. 50% of Applicable
Charges in respect of Guarantee. b)
Terms of Repayment: On Demand c)
Margin: As per Sanction
Terms d)
Extent and operation of the charge To secure the
various credit facilities aggregating to Rs.96.200 millions as described in
the annexure attached herewith granted by the Bank to the company. e)
Others: Nil |
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Short particulars
of the property charged |
Creation of
equitable mortgage by deposit of title deeds with the bank of the company’s immovable
properties comprising land and buildings and other structures, Fixed
machinery and Plant, Fixtures and Fittings Erected or installed thereon
situate at Plot No.D-40, Part 2 in the Trans Thane Creek Industrial Area,
Admeasuring 9094 Sq.Mtrs,Village Turbhe District Thane – Navi Mumbai. |
PROFILE
The Company as a trading unit established
in 1965, dealing in iron & steel and export of general merchandise.
In 1975 the Company [formerly known as Modison
Metal Refiners], established to refine Silver, manufacture Silver Alloy
Contacts, silverwires, Plates and Strips
The Company’s group with five business
units [situated in Mumbai, Vapi, and Silvasa], employing more than 300 people,
manufacture high quality Electrical contacts, Contact Materials for High
tension & Low tension Switchgears, Brazing alloys, Copper extruded profiles
& Sections, Welding Electrodes and provides support in specialised services
like Electron Beam Welding.
The Company also have a product group of
Cuttlery.
An exquisite range of solid
silver cutlery, an extension of the rich silver heritage, reflecting quality,
rarity, beauty and prestige coming down from centuries. For generations,
table silver belongs to the most beautiful and long lasting assets. Solid
Silver Cutlery with the stamp MODISON is in many respects
reckoned among the most precious,
which are offered today . MODISON guarantees a finesse of 925 with 92.5 %
Silver and 7.5 % Copper.
The company’s fixed assets of important value include Freehold Land,
Leasehold Land, Factory Building, Plant and Machinery, Office premises,
Furniture & Fixtures, Tools & Moulds and Vehicles.
Products
Manufactured are:
v Pure Silver Wire /
Contacts
v Silver Nickel Wire
/ Contacts
v Silver Cadmium
Oxide Wire / Contacts
v (By Internal
Oxidation and Power Metallurgy Process)
v Silver Inland
Copper Strips
v Silver Brazing
Alloys (Rods, Strips, Granules)
v Silver Tin Oxide
(Patented) Contacts
v Bimetal Cladcon
Contacts
v Trimetal Cladcon
Contacts
v Trimetal Contacts
v 99.9% Pure Silver
Products which include Foils, Wires, Bars, Anodes, Medallions
v Silver Powder: the
company produce Powder by Chemical precipitation and Atomisation process.
v Silver Chloride
Sheets (as per customer’s Drawings & Specification)
Manufacturing Facilities:
v Silver Refining:
The company has melting facility of 1500 kgs. per day on single shift basis and
refining capacity of 600 kgs per day.
v Assayinf
Laboratory (RBI approved)
v Oil Fired Furnaces
v Induction Melting
Equipments
v Isostatic Press
v Oxidation Furnaces
v Atomiser for
Silver Powder
v Powder Compacting
Press, 300 Tonnes
v Fine Rolling Mill
(Up To 0.002 “)
v Slitting Line
v Bimetal Cold
Bonding Machines
v Extrusion Presses
Services offered by the company were as under:
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.44.37 |
|
UK Pound |
1 |
Rs.78.09 |
|
Euro |
1 |
Rs.63.41 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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%) Operation
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 |
|