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MODI RUBBER: Net Loss Widens to INR27.9MM in Qtr. Ended March 31

Troubled 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 January-March 2007.

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 operating
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 operating agency
for the company and was directed to prepare a revival scheme.  A revised
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.
 

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