Company History - Modern Insulators
Modern Insulators Ltd. (hereinafter referred to as MIL) was
incorporated as a Public Limited Company on 1st May 1982 and the
certificate for Commencement of Business from the Registrar of
Companies, Rajasthan, at Jaipur, was obtained on 15th May, 1982.
MIL promoted in the Joint Sector by Shri H.S.Ranka and Rajasthan
State Industrial Development and Investment Corporation Limited
(RIICO) is engaged in the manufacture of various types of High
Tension (HT) Insulators upto 400 KV with an installed capacity of
5000 tonnes per annum producing Sectional and Post Insulators, Solid
Core Insulators for Railways and Bushings for Transformers, Apparatus
Insulators, Solid Core Insulators including Long Rod and Line Post
Insulators at Abu Road, District Sirohi in Rajasthan, in technical
collaboration with Siemens AG, Germany.
The project was set up at a cost of Rs.3310 lakhs with an overrun in
cost of Rs.680 lakhs due to adverse exchange fluctuation and
additional provision of expenditure and delay of about 2 years which
was financed by term loans from institutions/banks aggregating
Rs.2155 lakhs, Central
Subsidy of Rs.25 lakhs, funded interest of Rs.261 lakhs and equity
share capital of Rs.869 lakhs including oversubscription of Rs. 119
lakhs.
Since inception, MIL had been facing technical problems resulting in
high degree of rejections at various stages of manufacture. With a
view to helping MIL to overcome its resultant liquidity problems and
stabilise operations on a viable footing, the institutions have been
extending reliefs in the past by way of interest deferments and
reschedulement of principal repayments. However, despite grant of
reliefs / concessions, from time to time, there was no appreciable
improvement in the performance of MIL and it continued to incur
losses. Based on the audited accounts for the year ended 30th April,
1991, a reference was made to BIFR under Sec. 15 (ii) of the Sick
Industrial
Companies (Special Provisions ) Act, 1985 (SICA) on the basis of
which it was registered with BIFR. However based on another reference
made to BIFR on the basis of its audited accounts for the period ended
31.10.1992 which indicated positive Net Worth, the case was
deregistered
with BIFR.
MIL has since overcome the technical problems faced in the past and
improved its capacity utilisation. However, due to liquidity
constraints, MIL again approached the institutions with revival
proposal in August, 1994, envisaging expansion in installed capacity
to 6000 tpa and a package of reliefs/concessions. Institutions and
Banks
agreed to provide reliefs and concessions in respect of term loans by
way of waiver of penal interest, liquidated damages, compound interest
and also 50% of the simple interest outstanding as on 28.2.1993 and
accepting payment of balance simple interest in 3 instalments payable
by June 1996 besides revision of repayment schedules at net document
rates to be paid during the years 1997-98 to 2002-03 as also certain
reliefs in respect of working capital facilities subject to certain
terms and conditions as per details given elsewhere in the LOF
including the waiver of outstanding royalty dues and appointment of
Joint Managing Director by Siemens AG, Germany and promoters raising
funds by way of Rights Issue aggregating Rs. 1304 lakhs for part
financing the scheme.
Achievements
-First Indian Company to design and manufacture Long rod Insulators
for High Voltage transmission lines up to 1200kV.
-First Indian Company to design and manufacture Solidcore Insulators
for High Voltage application up to 1200kV.
-First Indian Manufacturer to regularly produce and supply Porcelain
Insulators with ENEL Profile sheds (Creepage as high as 31mm/kV) for
European Market.
-First Indian Manufacturer to develop 420kN long rod insulators for
extra high voltage lines to meet the requirement of Power Grid
Corporation of India.
2004
- Hotline Teletube & Components Ltd has recommended dividend of 10%
on the equity shares of the Company.
2005
- Hotline Teletube & Components Ltd has recommended dividend of 15%
on the equity shares of the Company.
