MODI RUBBER: Net Loss Widens to INR27.9MM in Qtr. Ended
Company Reporter, June 1, 2007
Modi Rubber Limitedís net loss grew
to INR27.86 million in the three
months ended March 31, 2007, twice the INR13.52-million net loss booked
in the same quarter in 2006. Total income decreased 18% to
INR3.75 million while expenditures rose 113% to INR24.55 million in
During the quarter under review, the company booked interest charges
totaling INR6.73 million, depreciation of INR330,000 and zero taxes.
For the year ended March 31, 2007, the company incurred a net loss of
INR12.92 million on revenues of INR97.99 million. With
expenditures totaling INR83.88 million, the company booked an operating
profit of INR12.11 million in FY2007.
Headquartered in Delhi, India, Modi Rubber Limited -- http://www.mepc.com/ --
is principally involved in the development, manufacture and distribution
of automobile tires, tubes and flaps. The company's financial
performance has not been all that impressive, as it continuously
reported losses in the past years, which eventually lead to its closure
in 2001. The financial health of its subsidiaries was also in
question with Modistone being referred to the Board of Industrial and
Financial Reconstruction due to the erosion in net worth.
Modi Rubber's equity shares were the delisted from the Uttar Pradesh
Stock Exhange, Kanpur. The delisting, effective Feb. 22,
2006, came after news that 44% stake in the rubber manufacturer was
acquired by a group of financial institutions.
The Board for Industrial and Financial Reconstruction on May 23, 2006,
declared the company as "Sick Company" and appointed IDBI Bank
has been appointed as the operating agency. By BIFR order
dated Oct. 9, 2006, the State Bank of India has been appointed as
for the company and was directed to prepare a revival scheme. A
draft revival scheme of Modi Rubber was submitted to its board of
directors at its meeting on March 10, 2007, which board gave unanimous
approval. The same has been submitted to SBI and BIFR on
March 15, 2007, for further action.