MIRA
INFORM REPORT
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Report Date : |
04.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
CONTINENTAL INDIA LIMITED |
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Formerly Known
As : |
MODI TYRES COMPANY LIMITED |
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Registered
Office : |
1012-1015, 10th Floor, Devika Towers, 6 Nehru Place, New
Delhi – 110019 |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
16.09.2006 |
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Com. Reg. No.: |
55-153993 |
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Capital Investment
/ Paid-up Capital : |
Rs.560.466
Millions |
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CIN No.: [Company Identification
No.] |
U25203DL2006PTC153993 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Manufacturer of Tyres and Related Components for Heavy Vehicles. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B (26) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 800000 |
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Status : |
Recently Commenced Business |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Though the company was incorporated in the year 2006, the company has
commenced its commercial operation in the year 2009-10. Trade relations are
fair. Business is active. Payments are reported to be slow. The company can be considered for business dealing 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) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
1012-1015, 10th Floor, Devika Towers, 6 Nehru Place, New
Delhi – 110019, India |
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Tel. No.: |
91-11-26848416 |
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Fax No.: |
91-11-26837530 |
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E-Mail : |
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Website : |
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Corporate Office : |
Roorkee Moad, Modipuram, Meerut – 250110, India |
DIRECTORS
AS ON 29.09.2010
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Name : |
Mr. Vinay Kumar Modi |
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Designation : |
Director |
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Address : |
55-A, Friends Colony, |
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Date of Birth/Age : |
13.06.1943 |
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Date of Appointment : |
16.09.2006 |
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Name : |
Mr. Alok Kumar Modi |
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Designation : |
Whole Time Director |
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Address : |
55-A, Friends Colony, |
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Date of Birth/Age : |
18.06.1966 |
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Date of Appointment : |
16.09.2006 |
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Name : |
Mr. Chandan Bhattacharya |
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Designation : |
Director |
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Address : |
Flat 702, Surya Apartment A Wing, 53 B, |
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Date of Birth/Age : |
13.01.1945 |
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Date of Appointment : |
20.08.2009 |
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Date of Ceasing : |
14.03.2011 |
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Email : |
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Name : |
Mr. Prithvi Raj Khanna |
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Designation : |
Director |
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Address : |
House No. 70, Sunder Nagar, |
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Date of Birth/Age : |
02.07.1993 |
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Date of Appointment : |
20.08.2009 |
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Date of Ceasing : |
14.03.2011 |
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Email : |
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Name : |
Mr. Sanjiwan Sahni |
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Designation : |
Director appointed in casual vacancy |
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Address : |
H- I, Harshingar Lane, Deramandi Road, New Delhi – 110047, India |
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Date of Birth/Age : |
16.12.1945 |
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Date of Appointment : |
14.03.2011 |
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Email : |
KEY EXECUTIVES
|
Name : |
Mr. Saroj Kumar Thakur |
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Designation : |
Company Secretary |
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Address : |
House No.1082, Sector 3, Ballabgarh, Faridabad – 121004, Haryana,
India |
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Date of Birth/Age : |
04.06.1984 |
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Date of Appointment : |
20.01.2010 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 29.09.2010)
|
Names of Shareholders |
No. of Shares |
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|
Vinay Kumar Modi |
1 |
|
Modi Rubber Limited, India |
56046679 |
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Total |
56046680 |
(AS ON 29.09.2010)
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Category |
Percentage |
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Bodies corporate |
100.00 |
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Total
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Tyres and Related Components for Heavy Vehicles. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
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Particulars |
Unit |
Installed Capacity |
Actual Production |
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Tyres |
No. |
1140000 |
469350 |
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Tubes |
No. |
1200000 |
495600 |
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Flaps |
No. |
240000 |
154876 |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
· Yes Bank Limited, 9th Floor, Nehru
Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – 400018,
Maharashtra, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name 1 : |
BSR and Company Chartered Accountant |
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Address : |
Building No.10, 8th Floor, Tower-B, |
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Ultimate Holding Company/ Holding Company : |
· Modi Rubber Limited CIN No.: L25199UP1971PLC003392 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
75000000 |
Equity Shares |
Rs.10/- each |
Rs.750.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
56046680 |
Equity Shares |
Rs.10/- each |
Rs.560.466
Millions |
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|
|
|
|
NOTE:
Previous year 10000 equity shares of Rs.10 each
fully paid up (of the above 56046679 equity shares of Rs.10 each fully paid up
are held by Modi Rubber Limited, the holding and the ultimate holding company)
(Of the above 45661744 (previous year nil)
equity shares of Rs.10 each have been allotted as fully paid up, without
payments 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 |
560.466 |
560.466 |
0.100 |
|
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2] Share Application Money |
0.000 |
0.000 |
456.617 |
|
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
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4] (Accumulated Losses) |
(362.481) |
(116.466) |
0.000 |
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NETWORTH |
197.985 |
444.000 |
456.717 |
|
|
LOAN FUNDS |
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|
|
|
|
1] Secured Loans |
1000.866 |
14.768 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
1000.866 |
14.768 |
0.000 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
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|
|
|
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TOTAL |
1198.851 |
458.768 |
456.717 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
587.695 |
93.457 |
49.286 |
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Capital work-in-progress |
71.259 |
543.597 |
430.412 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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|
Inventories |
913.712
|
85.064
|
66.826 |
|
|
Sundry Debtors |
592.695
|
0.000
|
0.000 |
|
|
Cash & Bank Balances |
45.135
|
2.896
|
0.175 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
263.664
|
2.004
|
11.795 |
|
Total
Current Assets |
1815.206
|
89.964
|
78.796 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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|
Sundry Creditor |
374.606
|
161.397
|
33.820 |
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|
Other Current Liabilities |
801.914
|
33.153
|
0.000 |
|
|
Provisions |
98.789
|
73.700
|
67.993 |
|
Total
Current Liabilities |
1275.309
|
268.250
|
101.813 |
|
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Net Current Assets |
539.897
|
(178.286)
|
(23.017) |
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|
|
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|
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|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.036 |
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|
|
|
|
|
|
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TOTAL |
1198.851 |
458.768 |
456.717 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
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TOTAL (A) |
|
3676.340 |
Nil |
|
|
|
|
|
|
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|
Less |
EXPENSES |
|
|
|
|
|
|
|
Personnel Expenses |
|
|
68.715 |
|
|
|
Stores and spares consumed |
|
3738.357 |
1.429 |
|
|
|
Administrative Expenses |
|
|
33.298 |
|
|
|
TOTAL (B) |
|
3738.357 |
103.442 |
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
(62.017) |
(103.442) |
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|
|
|
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|
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Less |
FINANCIAL
EXPENSES (D) |
|
122.784 |
4.760 |
|
|
|
|
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
(184.801) |
(108.202) |
|
|
|
|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
61.214 |
6.558 |
|
|
|
|
|
|
|
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|
PROFIT BEFORE
TAX (E-F) (G) |
|
(246.015) |
(114.760) |
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|
|
|
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|
|
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Less |
TAX (H) |
|
0.000 |
1.702 |
|
|
|
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PROFIT AFTER TAX
(G-H) (I) |
|
(246.015) |
(116.466) |
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|
|
|
|
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IMPORT VALUE |
|
159.678 |
1.088 |
|
|
|
|
|
|
|
|
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EXPORT VALUE |
|
755.411 |
-- |
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|
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|
Earnings Per
Share (Rs.) |
|
(4.39) |
(2.75) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(6.69)
|
0.00 |
-- |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(10.24)
|
(62.56)
|
-- |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(1.24)
|
(0.25)
|
-- |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
11.50
|
0.63
|
0.22 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.42
|
0.33
|
0.77 |
LOCAL AGENCY FURTHER INFORMATION
NOTE:
The Registered Office of the company has been shifted from, 4/7C DDA
Shopping Centre, New Friends colony, New Delhi – 110025, India, to the present
address w.e.f. 15.07.2011.
WORKING RESULT AND
FUTURE OUTLOOK:
The company has recorded domestic sales of Rs.3056.066 Millions and
export sales Rs.755.411 Millions. The company has reported a loss after tax of
Rs.246.015 Millions as compared of Rs.116.466 Millions in the previous year.
Plant has a capacity of production 95,000 tyres per month whereas presently
company is producing 60,000 tyres per months approx. It is expected during the
current year company with achieve 90.95% plant capacity.
The company has been making all
out efforts to strengthen distribution and selling net work and to have maximum
products in its portion to cater needs of its customers presently the company
has 110 CFAs and 1400 dealers. During the current year, it is expected to reach
200 CFAs a2d 2500 dealers. The company has developed a new tyres ‘Miler’ to
expand product portfolio which is expected to hit market some time in the month
of Nov/ Dec 2010. The company has successfully gone live on SAP in its
production for uniformity in products and inventory, distribution and
accounting for elective and better control.
The board of directors are the company has successfully renewed
technology and continental brand use agreements with continental
Aktiengeleschaft, Germany.
Board of director are report that product is very well accepted in the
market by the customers and future of the company coupled with the expected GDP
growth of over 8.9% looks very optimality. However, high volubility in the
prices of raw materials in particulars natural tuber presently being witnessed
will pose a challenge to the company to meet.
FINANCIAL RESULTS:
During the year under review company has reported a loos of 116.500 millions (Previous year profit/loss Nil) and accumulated capital work in progress of Rs.543.600 millions Which required to be capitalized in terms of Accounting standards requirements on commencement of commercial production in the current year, Capital work in progress mainly consist of assets transferred and funds provided for repair Rs.109.749 millions is lying in the share application account, pending allotment of share, Incurred by MRL for repair and refurbishment.
FIXED ASSETS:
·
Software License
·
Assets
·
Freehold land
·
Building
·
Furniture and fixtures
·
Office equipment
·
Computers
·
Vehicles
FORM: 8
|
Corporate
identity number of the company |
U25203DL2006PLC153993 |
|
Name of the
company |
MODI TYRES
COMPANY LIMITED |
|
Address of the
registered office or of the principal place of business in |
4/7C DDA Shopping
Centre, New Friends Colony, New Delhi – 110025, India |
|
This form is for |
Modification of
Charge |
|
Type of charge |
Immovable
Property Book Debts Movable Property Floating Charge Others : All Current and Movable Fixed Assets |
|
Particular of
charge holder |
Yes Bank Limited,
9th Floor, Nehru
Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – 400018,
Maharashtra, India |
|
Nature of
instrument creating charge |
1 Supplemental
Deed of hypothecation dated March 23, 2011 for enhancement of facilities to
Rs.140.000 Millions 2 Supplemental
Deed of hypothecation dated March 23, 2011 for enhancement of facilities from
Rs.140.000 Millions to Rs.160.000 Millions |
|
Date of
instrument Creating the charge |
23.03.2011 |
|
Amount secured by
the charge |
Rs.1600.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest
: LC/ FBG: 3% p.a. CC/WCDL: YBL Base
rate plus 8% p.a. EPC: YBL Base
rate plus 8% p.a. PCFC/PSFC:LIBOR
plus 2%pa STL: Base Rate
plus 5.50% pa TL A: Base Rate
plus 3% pa TL B: Base Rate
plus 8% pa Terms of
Repayment : 1 Letter of
Credit (LC) (Rs.1300 Million): NA Sub Limit of 1 1a Cash Credit / Working
Capital Demand Loan: Payable on Demand 1b Export Packing
Credit In Rupee (EPC)/ Post Shipment in Foreign Currency (PSFC)/ Packing
Credit in Foreign Currency (PCFC)/ Bank Guarantee (Financial) (BG): NA 1d Short Term
Loan: 9 monthly installment after moratorium of 3 months 2 Term Loan A
(Rs.200 Million): Bullet repayment on December 31, 2011 3 Term Loan B
(Rs.100 Million): Bullet repayment on December 31, 2011 Margin : 1 Cash Credit
(CC)/ Working Capital Demand Loan (WCDL): 25% of Debtors (not more than 90
days old) plus 25% of Raw Material plus 20% of work in progress and finished
goods plus 33.37% of stores and spares less creditors (Good covered under
unpaid bills under LC will be excluded from the total value of stocks) 2 LC/BG: 10% Cash
Margin 3 EPC/PCFC/PSFC:
Nil 4 Term Loan A (TL
A): Nil 5 Term Loan B (TL
B): Nil Extent and
operation of the charge : Exclusive charge
by way of Hypothecation on all Current assets and Movable Fixed Assets of the
Borrower (both present and future) Exclusive charge
by way of Equitable mortgage on properties: 1. Plot of land
bearing Khasra No. 1M (0-17-7), 4M(174-11-3), 6M(5-5-10), vill. Mukurrabpur
Palhera and Khasra Bearing No. 1699M(4-12-0), 1700M (1-18-0) vill. Pabil
Khas, Parghana Daurala, Tehsil Sardhana, Meerut Total admeasuring(admg)
117Acres(approx). 2. Plot of land
admg 12045 Sq. Mtrs. Ved Vyas Puri, Meerut. Others : |
|
Short Particulars
of the property charged |
Exclusive Charge
on whole of the Current Assets of the Borrower's stock of raw material, semi-finished
and finished goods, stores and spares, bills receivables and book debts (both
present and future) Exclusive Charge
on whole of the Movable Fixed Assets of the Borrower located anywhere in
India (both present and future) Equitable
mortgage on Plot bearing Khasra No.1M(0-17-7), 4M (174-11-3),6M (5-5-10) at
Mukurrabpur Palhera and Khasra bearing 1699M(4-12-0),1700M (1-18-0) at Pabil
khas, Parghana Daurala, Tehsil Sardhana, Meerut Equitable
mortgage on Plot of land admeasuring 12045 Sq. Mts. at Ved Vyas Puri, Meerut. |
|
Particulars of
the present modification |
Modification is
pursuant to enhancement in the facility amount from Rs.1300.000 Millions to
Rs.1600.000 Millions pursuant to sanction of fresh TL A of INR 200 Million
and fresh TL B of Rs.100 Million Charge on the
immovable property is only on the facility amount of Rs.1300 million. Charge on the
current and movable fixed assets is on the facility amount of Rs.1600
million. Total charge on the
Current Assets, Movable fixed Assets and Immovable Property shall not exceed
Rs.1600.000 Millions |
FIXED ASSETS:
· Freehold Land
· Building
· Plant and Machinery
· Furniture and Fixtures
· Office Equipments
· Computers
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.49.42 |
|
|
1 |
Rs.76.72 |
|
Euro |
1 |
Rs.65.85 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
26 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.