**Premier Ltd.** is a long-standing Indian engineering entity currently undergoing a **Corporate Insolvency Resolution Process (CIRP)**. Historically a significant player in the high-precision machine tools sector, the company’s operations are presently managed by a **Resolution Professional (RP)** following a mandate by the **National Company Law Tribunal (NCLT)**, Mumbai Bench, effective **January 29, 2021**. --- ### **Current Insolvency Status & Resolution Roadmap** The company’s survival and future operations are entirely contingent upon the successful conclusion of the legal resolution process under the **Insolvency and Bankruptcy Code (IBC)**. * **Resolution Plan Status:** A formal resolution plan submitted by **Fab Metals Pvt. Ltd.** was approved by the **Committee of Creditors (CoC)** during its 17th meeting in January 2022. * **Creditor Consensus:** The plan received a high level of support, with a **92.47% assent** from the CoC. * **Judicial Approval:** As of the latest reporting period, the plan is awaiting final approval from the **Hon’ble NCLT, Mumbai Bench**. * **Management:** The powers of the Board of Directors remain suspended. All corporate actions and financial decisions are overseen by the **Resolution Professional**. --- ### **Engineering Portfolio & Technical Capabilities** Despite the current operational halt, Premier Ltd. maintains a specialized product portfolio designed for high-precision industrial applications, with a strategic focus on **import substitution**. * **Core Product Segments:** * **CNC Machines:** High-precision Computer Numerical Control machines for the wind energy and infrastructure sectors. * **Gear Hobbing Machines:** Development of **High-Speed** variants featuring a **0 to 180-degree Ring Loader**, specifically optimized for **sprocket machining**. * **Vertical Turret Lathes (VTL):** Specialized focus on the sub-**1000 mm Table size** market, utilizing **L.M. Guideways** and **offset Tables** to enhance precision. * **Special Purpose Machines (SPM):** Custom-engineered solutions for the **Automobile, Railways, and Defence** industries, designed to maximize machine **Uptime**. * **Strategic Objectives:** The company’s engineering strategy centers on **Technology Absorption**—upgrading legacy features to reduce reliance on expensive foreign components and improve price competitiveness. --- ### **Operational Infrastructure & Asset Base** The company’s physical infrastructure is centered in a modern industrial hub, though it remains underutilized due to the insolvency proceedings. * **Manufacturing Facility:** Located in the **Chakan Industrial Area, Pune**. The facility is a **"built to suit"** infrastructure occupied on a **10+10 year long-lease** basis. * **Operational Halt:** Manufacturing activities have been suspended since **March 3, 2020**, primarily due to a critical **lack of working capital** and incomplete machinery installation. * **Inventory & IT:** As of **March 31, 2024**, the company held **nil inventory**. Internal operations are managed via **Tally ERP**, with IT maintenance outsourced to local providers. * **Asset Verification:** Property, Plant & Equipment (PPE) have been physically verified by the RP with no material discrepancies noted. However, the company owned **no intangible assets** as of the end of FY2024. --- ### **Financial Performance & Capital Structure** The company is in a state of severe financial distress, characterized by a total erosion of net worth and a cessation of revenue. **Key Financial Indicators (Values in ₹ Lakhs)** | Metric | 9M FY2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | :--- | | **Total Turnover** | **NIL** | **NIL** | **NIL** | **38.80** | | **Net Profit / (Loss)** | **(581.00)** | **(1,040.82)** | **(1,365.21)** | **(2,249.21)** | | **Net Worth** | **Eroded** | **(32,977.93)** | **(31,937.10)** | **(30,571.88)** | | **Earnings Per Share (₹)** | **-** | **-** | **(4.49)** | **(7.41)** | * **Debt Assignment:** Bank loans from a consortium (SBI, State Bank of Hyderabad, J&K Bank) have been assigned to **Edelweiss Asset Reconstruction Company Limited (EARC)**. * **Secured Liabilities:** EARC holds a **pari-passu charge** on Chakan assets and an exclusive charge on **41.08 acres** of land at **Kalyan/Dombivali** for a **₹118 crore** loan. * **Unsecured Debt:** Inter-Corporate Deposits (ICD) total **₹21.08 crore** with interest rates as high as **22.00%**. * **Taxation Policy:** The company has reversed its **Net Deferred Tax Asset of ₹45.85 crore** due to a lack of "virtual certainty" regarding future profits. It has adopted the **25.17%** tax rate under **Section 115BAA**. --- ### **Corporate Structure & Associate Interests** Premier Ltd. operates as a standalone entity with no subsidiaries, but it holds a significant stake in one associate company. | Entity | Stake | Status | | :--- | :--- | :--- | | **PAL Credit & Capital Ltd (PCCL)** | **27.31%** | **Discontinued**; NBFC license surrendered to RBI. | * **Investment Impairment:** The investment in PCCL has undergone **100% diminution** in value. Advances of **₹3.85 crore** to PCCL have been fully provided for. * **Registrar:** The company’s Registrar & Transfer Agent is **MUFG Intime India Private Ltd** (formerly Link Intime India). --- ### **Human Resources & Industrial Relations** The workforce has been decimated by the cessation of operations, leading to significant legal friction. * **Headcount:** Reported as **NIL** as of **March 31, 2024**. * **Labor Litigations:** The **Labour Union** has filed multiple cases in the **Industrial Court** and **Bombay High Court** challenging the suspension of operations and claiming unpaid wages. * **Claim Admittance:** The RP has admitted labor claims at **50% of monthly wages** up to the CIRP commencement date; final settlements are pending court outcomes. --- ### **Risk Factors & Contingent Liabilities** Investors should note the high-risk environment surrounding the company’s legal and regulatory standing. * **Going Concern Uncertainty:** Auditors have issued a **Qualified Conclusion** regarding the company’s ability to continue as a going concern given the total erosion of net worth. * **Internal Control Failures:** A **Disclaimer of Opinion** was issued regarding internal financial controls due to the absence of process owners and records. * **Governance Vacancies:** The company is currently in violation of the **Companies Act, 2013**, due to the lack of a **Company Secretary** and **Internal Auditor**. * **Major Contingent Liabilities:** * **Income Tax Demands:** **₹118.97 crore** (AY 2013-14) and **₹1.44 crore** (AY 2017-18). * **Indirect Tax Disputes:** **₹75.15 crore** in Sales Tax and **₹73.92 lakhs** in Service Tax. * **Statutory Defaults:** Delay in transferring **₹46.55 lakhs** in matured deposits to the **IEPF**. * **Guarantees:** **₹6.82 crore** related to lease "lock-in" periods at the Chakan plant.