MIRA INFORM REPORT

Report Date :

31.01.2011

IDENTIFICATION DETAILS

Name :	MODISON METALS LIMITED
Registered Office :	33, Nariman Bhavan, 227, Nariman Point, Mumbai-400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.04.1983
Com. Reg. No.:	11-029783
CIN No.: [Company Identification No.]	L51900MH1983PLC029783
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Electrical Contract Materials for High Voltage Switch Gears, Medium Voltage Switch Gears.

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 2400000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financial positions of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION DECLINED BY

Name :	Mr. Kothari
Designation :	Finance Head
Contact No.:	91-22-22026437
Date :	28.01.2011

LOCATIONS

Registered Office :	33, Nariman Bhavan, 227, Nariman Point, Mumbai-400021, Maharashtra, India
Tel. No.:	91-22-22026437
Fax No.:	91-22-22048009
E-Mail :	info@modison.com purchase@modison.com
Factory :	Plot No. 85/A, B, D and E, Phase 1, Road E, Vapi-396195, Gujarat, India

DIRECTORS

As on 31.03.2010

Name :	Mr. Ranjan Dasgupta
Designation :	Chairman
Name :	Mr. G. L. Modi
Designation :	Managing Director
Name :	Mr. S. M. Mody
Designation :	Director
Name :	Mr. Suresh Mody
Designation :	Director
Name :	Mr. Rajkumar Modi
Designation :	Wholetime Director
Name :	Mr. Shravan Sharma
Designation :	Director
Name :	Mr. Satish Mody
Designation :	Director
Name :	Mr. R. A. Goenka
Designation :	Director
Name :	Mr. Anil Lohia
Designation :	Director
Name :	Mr. B.B. Singh
Designation :	Wholetime Director W.E.F. 29.05.2010

KEY EXECUTIVES

Name :	Mr. Kothari
Designation :	Finance Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2010

Names of Shareholders	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	17,024,260	52.46
Sub Total	17,024,260	52.46
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	17,024,260	52.46
(B) Public Shareholding
(1) Institutions
Foreign Institutional Investors	50,000	0.15
Sub Total	50,000	0.15
(2) Non-Institutions
Bodies Corporate	2,546,222	7.85
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	4,848,436	14.94
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	7,829,168	24.13
Any Others (Specify)	151,914	0.47
Clearing Members	51,846	0.16
Non Resident Indians	100,068	0.31
Sub Total	15,375,740	47.38
Total Public shareholding (B)	15,425,740	47.54
Total (A)+(B)	32,450,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Electrical Contract Materials for High Voltage Switch Gears, Medium Voltage Switch Gears.

Products :

Product Description	Item Code No
Silver Alloy Contact, Silver Tungsten Contact, Silver Graphite Contact, Bimetal Contact, Copper Chromium Contact, Copper Tungsten Contact, Electrical Contact etc.	85.38
Pure Silver Wire and Strips, Silver Brazing Alloy, Silver Alloy Wire and Strip, Articles Of Silver (Silver Flatware)	710160, 710170

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Installed Capacity*
Electrical Contacts / Contacts for SF6	MT	450
Circuit Breakers #
Silver Flatware #	MT	5

particular	Actual Production Qty
Electrical Contacts / Contacts for SF6 Circuit Breakers	36232.703 129355925
Silver Flatware	--

Note:

• # Licensed Capacity is not applicable as the industry has been de-licensed.
• *Installed Capacity is as certified by the management and relied upon by the Auditors.

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

• Bank of India
• Citi Bank N.A

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loans From Bank
Foreign Currency Loan	56.604	46.064
Working Capital Loan From Bank
Rupee Loan	28.333	0.000
Foreign Currency Loan	14.716	0.000
Total	99.653	46.064
Unsecured Loan
Form Directors	0.000	2.148
From Promoters	0.000	67.840
Total	0.000	69.988

Banking Relations :	--
Auditors :
Name :	M.L. Bhuwania and Company Chartered Accountant
Address :	Dahanukar Building, 5^th Floor, 480, Kalbadevi Road, Mumbai-400002, Maharashtra, India

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
32500000	Equity Shares	Rs.1/- each	Rs.32.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
32450000	Equity Shares	Rs.1/- each	Rs.32.450 Millions

Note:

Out of the above shares 30,000,000 (Previous year 30,000,000) shares had been allotted as fully paid-up, pursuant to a Scheme of Amalgamation of erstwhile Modison Metals Limited, without payment being received in cash)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		32.450	32.450	32.450
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		584.093	495.382	418.335
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		616.543	527.832	450.785
LOAN FUNDS
1] Secured Loans		99.653	46.064	69.949
2] Unsecured Loans		0.000	69.988	76.730
TOTAL BORROWING		99.653	116.052	146.679
DEFERRED TAX LIABILITIES		62.214	57.089	49.199
TOTAL		778.410	700.973	646.663
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		439.268	409.410	381.129
Capital work-in-progress		1.230	0.860	5.892
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	239.249	157.972	163.560
	Sundry Debtors	114.831	74.618	155.968
	Cash & Bank Balances	57.795	89.707	3.240
	Other Current Assets	3.664	3.544	1.585
	Loans & Advances	195.181	175.174	179.428
Total Current Assets		610.720	501.015	503.781
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.308	5.373	38.555
	Other Current Liabilities	75.091	30.709	29.728
	Provisions	189.409	174.230	175.856
Total Current Liabilities		272.808	210.312	244.139
Net Current Assets		337.912	290.703	259.642
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		778.410	700.973	646.663

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	965.046	771.460	1050.855
		Labour Charges	0.368	0.707	1.773
		Other Income	8.623	9.835	4.758
		TOTAL (A)	974.037	782.002	1057.386
Less	EXPENSES
		Cost of Material	607.165	472.456	633.751
		Salaries, Wages and Other Benefits	53.382	42.460	37.525
		Manufacturing and Other Expenses	53.647	60.689	69.905
		Sales, Administration and Other Expenses	31.654	38.726	47.482
		In-House R and D Expenses	0.965	0.864	0.669
		TOTAL (B)	746.813	615.195	789.332
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		227.224	166.807	268.054
Less	FINANCIAL EXPENSES (D)		10.255	17.047	22.098
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		216.969	149.760	245.956
Less/ Add	DEPRECIATION/ AMORTISATION (F)		39.689	35.100	26.456
	PROFIT BEFORE TAX (E-F) (G)		177.280	114.660	219.500
Less	TAX (H)		59.240	40.359	78.725
	PROFIT AFTER TAX (G-H) (I)		118.040	74.301	140.775
Add	PRIOR YEAR TAX ADJUSTMENT		0.040	(0.143)	(0.795)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		418.389	366.832	256.037
Less	APPROPRIATIONS
		Transfer to General Reserve	12.000	7.416	14.000
		Dividend	24.338	12.980	12.980
		Tax on Dividend	4.042	2.205	2.205
	BALANCE CARRIED TO THE B/S		496.089	418.389	366.832
	EARNINGS IN FOREIGN CURRENCY		117.333	119.441	277.153
	IMPORTS
		Raw Materials	33.322	48.329	51.596
		Components & Spares Parts	1.098	2.185	3.305
		Capital Goods	54.115	49.030	48.688
	TOTAL IMPORTS		88.535	99.544	103.589
	Earnings Per Share (Rs.)		3.64	2.29	4.31

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010
Type	1^st Quarter	2^nd Quarter
Net Sales	294.530	303.010
Total Expenditure	233.440	234.920
PBIDT (Excl OI)	61.090	68.090
Other Income	0.740	0.310
Operating Profit	61.830	68.400
Interest	2.880	2.850
PBDT	58.950	65.550
Depreciation	11.000	11.050
Profit Before Tax	47.950	54.500
Tax	16.330	18.170
Profit After Tax	31.620	36.330
Net Profit	31.620	36.330

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	12.12	9.50	13.31
Net Profit Margin (PBT/Sales)	(%)	18.37	14.86	20.89
Return on Total Assets (PBT/Total Assets}	(%)	16.88	12.59	24.80
Return on Investment (ROI) (PBT/Networth)		0.29	0.22	0.49
Debt Equity Ratio (Total Liability/Networth)		0.60	0.62	0.87
Current Ratio (Current Asset/Current Liability)		2.23	2.38	2.06

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
For Capital Goods	0.581	1.287	29.758
For Purchase of Goods	2.104	1.444	3.928
For Others	5.623	2.642	4.869
Total	8.308	5.373	38.555

OPERATIONS:

During the year, the Company has achieved the turnover of Rs. 974.038 Millions as compared to Rs. 782.004 Millions during previous year. After facing slowdown, F.Y. 2009-10 was extremely good for your Company. Turnover grew by 24.56% i.e. by Rs.192.034 Millions , Profit before tax grew by 54.61% i.e. by Rs.62.620 Millions and Net Profit after taxation grew by 58.87% i.e. by Rs.43.739 Millions . Earnings per share for the year 2009-10 increased to Rs. 3.64 from Rs. 2.29 in the previous year. Book value now stands at Rs. 18.79 per Equity Share of Re.1/- each.

EXPORTS:

The Exports during the year amounts to Rs.117.333 Millions as against Rs. 119.441 Millions achieved in the previous year. The Company is focusing to improve its exports performance.

Management Analysis and Discussion Report:

Industry Structure and Developments:

The company specializes in making precision components forming the main active elements of Electrical Switchgear, which actually makes/ breaks Currents at all Voltage levels in AC and DC systems. The core strength being in processing raw billets/ powder of Silver and Copper into world class electrical contact material can only be attributable to the highly skilled and experienced labor employed. Latest generation machineries employed, complimented by skilled labour have added to the productivity and thus a competitive edge in the global market.

Opportunities:

Recognition as a potential, long term partner by all leading MNCs and Switchgear majors within and outside the country has ensured a sustained growth for the company. Further, marketing efforts like participation in International Trade Fairs have improved visibility of MODISON, in the overseas market as well. With the recent Budget concluding plans to double the Power Sector investments, increase in volumes is eminent. However, these gestures by the Government have simultaneously attracted competition from overseas giants especially from China, where subsidies granted by their Governments over power price structure offered by domestic manufacturers may affect company’s profitability.

Productwise Performance and Financial Performance:

The company is manufacturing Electrical Contacts for Low, Medium, High and Extra High Voltage Switchgear. Silver Flatware is the other product manufactured by the Company, but that product contributes less than 1% of the total turnover. During the F.Y. 2009-10 Revenue of the Company rose to Rs. 974.038 Millions as compared to Rs.782.004 Millions achieved during the previous F.Y. of 2008-09. Consequently, the Profit before Tax grew to Rs. 177.280 Millions in the Year under report from Rs. 114.660 Millions achieved during the previous F.Y. Export sales during the current F.Y. amounted to Rs. 117.333 Millions as against Rs. 119.441 Millions achieved in the previous F.Y.

Future Outlook:

In spite of the thrust on Power Sector, one can expect hurdles in implementation owing to the political scenario prevailing in several states. The focus on non-conventional Energy initiative also is a long drawn process while being an expensive one. Therefore, one cannot expect any major breakthrough immediately and the Company is expecting only a nominal but steady growth in the times to come.

Fixed Assets:

• Leasehold Land
• Office Premises
• Factory Building
• Residential Building
• Plant and Machinery
• Furniture and Fixtures
• Vehicles
• Office Equipments
• Intangible Assets

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^TH SEPTEMBER, 2010

Rs. in Millions

Particular	Quarter Ended	Half Year Ended
Sales: Gross	326.368	646.394
Less: Excise Duty	25.510	51.545
(a) Net Sales / Income from operations	300.858	594.849
(b) Other Operating Income	2.155	1.539
Expenditure
a) (Increase) / Decrease in stock in trade and work in progress	(16.126)	(29.553)
b) Consumption of raw materials	204.637	410.245
c) Purchase of traded goods	0.000	0.000
d) Employees cost	15.114	28.618
e) Depreciation	11.048	22.048
f) Other expenditure	31.302	57.905
Total	245.975	489.263
Profit from operations before other income, interest and exceptional Items	57.038	107.125
Other income	0.309	1.053
Profit before interest and exceptional Items	57.347	108.178
Interest	2.853	5.734
Profit after Interest but before Exceptional Items	54.494	102.444
Exceptional Items	--	--
Profit (+)/Loss(-) from Ordinary Activities before tax	54.494	102.444
Tax expense	18.166	34.497
Net Profit (+)/Loss(-) from Ordinary Activities after tax	36.328	67.947
Extraordinary Item (net of tax expenses)	--	--
Net Profit (+) / Loss (-) for the year period	36.328	67.947
Paid up equity share capital (Face value of Rs.10/- per share)	32.450	32.450
Reserves excluding revaluation reserves as per balance sheet of previous accounting year	--	--
Earning per share (EPS)
(a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not to be annualised)	1.12	2.09
(a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not to be annualised)	1.12	2.09
Public shareholding
Number of shares	15425740	15425740
Percentage of shareholding	47.54	47.54
Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	--	--
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	--	--
Percentage of shares (as a % of total share capital of the company)	--	--
b) Non Encumbered
Number of shares	17024260	17024260
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00	100.00
Percentage of shares (as a % of total share capital of the company)	52.46	52.46

STATEMENT OF ASSETS AND LIABILITIES AS ON 30^TH SEPTEMBER, 2010

	Rs in Millions
Particulars	Quarter ended
	As on 30.09.2010
	(Unaudited)
SHAREHOLDERS FUNDS
Share Capital	32.450
Reserves & Surplus	651.626
LOAN FUNDS	80.801
DEFERRED TAX LIABILITIES	61.612
TOTAL	826.489
FIXED ASSETS	437.635
INVESTMENT	--
CURRENT ASSETS, LOANS & ADVANCES
Inventories	311.180
Sundry Debtors	132.069
Cash & Bank Balances	11.598
Other Current Assets	2.795
Loans & Advances	231.467
Less : CURRENT LIABILITIES & PROVISIONS
Other Current Liabilities	103.465
Provisions	396.790
Net Current Assets	388.854
TOTAL	826.489

Note:

• The financial results were reviewed by the audit committee and taken on record by the board of directors at its meeting held on 09^th November, 2010
• The statutory auditors have carried out limited review of the above results for the quarter ended 30^th September, 2010.
• The company has two business segment viz. electrical contracts and silver flatware since the segment revenue, segment results and segment assets of the segment silver flatware is less than 1% of the totals, the same is considered insignifleant and accordingly no primary segment is considered reportable.
• During the quarter, the company did not receive only complaint from the shareholders, there are no complaints remaining unresolved as at the beginning and end of the quarter.
• Previous year figures have been regrouped wherever necessary.

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.45.74
UK Pound	1	Rs.72.73
Euro	1	Rs.62.73

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.