MIRA INFORM REPORT

Report Date :

04.12.2014

IDENTIFICATION DETAILS

Name :	TATA COFFEE LIMITED
Registered Office :	Pollibetta, Kodagu – 571215, Karnataka
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	19.11.1943
Com. Reg. No.:	08-000833
Capital Investment / Paid-up Capital :	Rs.186.770 Millions
CIN No.: [Company Identification No.]	L01131KA1943PLC000833
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Producer and Exporter of Coffee.
No. of Employees :	5388 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (72)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a subsidiary of “TATA GLOBAL BEVERAGES LIMITED”. It is a well-established and reputed company having fine track record. The rating reflects company’s strong operational efficiencies supported by strong financial base, adequate liquidity profile and favourable profitability margins of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered good for normal business dealings 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund based bank facilities=AA
Rating Explanation	High degree of safety and very low credit risk.
Date	February, 2014

Rating Agency Name	ICRA
Rating	Commercial paper programme=A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	February, 2014

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION DENIED

Management Non Co-operative (91-80-23560695)

LOCATIONS

Registered Office :	Pollibetta, Kodagu – 571215, Karnataka, India
Tel. No.:	91-80-3560695
Fax No.:	91-80-8601843
E-Mail :	suryanarayanan.ns@tatacoffee.com conscof@tatatea.com
Website :	www.tatacoffee.com
Corporate Office :	No. 57, Railway Parallel Road, Kumara Park (West), Bangalore – 560 020, Karnataka, India
Tel. No.:	91-80-23560695
Fax No.:	91-80-23341843
E-Mail :	investors@tatacoffee.com
PLANT LOCATIONS :
Coffee Estates :	Located at · Kodagu, Karnataka, India · Hassan, Karnataka, India · Chikmagalur, Karnataka, India
Tea and Coffee (mixed) Estate :	Basrikatte, Chikmagalur District, Karnataka, India
Tea Estates :	Located at · Malkiparai, East Godavari District, Andhra Pradesh, India · Pachaimalai, Tamilnadu, India · Pannimade, Tamilnadu, India · Uralikal, Tamilnadu, India · Velonie, Tamilnadu, India · Hudikeri, Kodagu District Karnataka, India
Coffee Estate :	Located at · Valparai, Tamilnadu, India
Curing Works, R&G factory and Pepper processing Unit :	Located at · Kushalnagar, Kodagu District, Karnataka, India · Kudige, Kodagu District, Karnataka, India · Kodagu District, Karnataka, India
Instant Coffee Plants :	Located at · Toopran, Brahmanpally Village, Andhra Pradesh, India · Theni, Tamilnadu, India

DIRECTORS

AS ON 31.03.2014

Name :	Mr. R.K. Krishna Kumar
Designation :	Chairman till 18.07.2013
Name :	Mr. Harish Bhat
Designation :	Chairman w.e.f. 26.07.2013
Name :	Mr. Hameed Huq
Designation :	Managing Director
Name :	Mr. U.M. Rao
Designation :	Director till 02.07.2013
Name :	Prof. A. Monappa
Designation :	Director
Name :	Mr. S. Sanathanakrishnan
Designation :	Director
Name :	Mr. Venu Srinivasan
Designation :	Director
Name :	Mr. D.R. Kaarthikeyan (w.e.f 02.07.2013)
Designation :	Director
Name :	Mr. M. Deepak Kumar
Designation :	Director
Name :	Mr. T. Radhakrishnan
Designation :	Executive Director – ICD Operations (w.e.f. 26.07.2013)

KEY EXECUTIVES

Audit Committee :	Mr. S. Santhanakrishnan – Chairman Mr. D.R.Kaarthikeyan Prof. A.Monappa
Stakeholders Relationship Committee :	Mr. S. Santhanakrishnan -– Chairman Mr. Harish Bhat Mr. Hameed Huq
Nomination and Remuneration Committee :	Mr. S.Santhanakrishnan – Chairman Mr. Harish Bhat Prof. A.Monappa Mr. Venu Srinivasan
Corporate Social Responsibility Committee :	Mr. S. Santhanakrishnan Mr. D. R. Kaarthikeyan Mr. Hameed Huq

SHAREHOLDING PATTERN

AS ON 30.06.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	10735982	57.48
Sub Total	10735982	57.48
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	10735982	57.48
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2923	0.02
Financial Institutions / Banks	71418	0.38
Insurance Companies	525827	2.82
Foreign Institutional Investors	1250	0.01
Sub Total	601418	3.22
(2) Non-Institutions
Bodies Corporate	1760663	9.43
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	3997397	21.40
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	816496	4.37
Any Others (Specify)	765081	4.10
Foreign Corporate Bodies	758631	4.06
Trusts	6251	0.03
Directors & their Relatives & Friends	199	0.00
Sub Total	7339637	39.30
Total Public shareholding (B)	7941055	42.52
Total (A)+(B)	18677037	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	18677037	0.00

BUSINESS DETAILS

Line of Business :	Producer and Exporter of Coffee.
Products :	Coffee
Brand Names :	--
Agencies Held :	--
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

5388 (Approximately)

Bankers :

· Corporation Bank

· Indian Overseas Bank

· Standard Chartered Bank

· Hongkong and Shanghai Banking Corporation Limited

· ICICI Bank Limited

· HDFC Bank Limited

· RABOBANK International

· Citi Bank

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
Long Term Borrowings
Loan from Banks
External Commercial Borrowing	486.850	543.000
Less: Maturing within the next 12 months	(149.800)	(101.813)
Short Term Borrowings
Loan from Banks
Working capital facilities	599.720	553.066
Total	936.77	994.253

NOTES:

Long Term Borrowings

Details of Borrowings:

External Commercial Borrowing is secured by first ranking exclusive charge over the land, building and plant & equipment of a coffee estate and a pari-pasu charge over immovable and movable fixed assets situated at the Theni Plant. The Loan is repayable in sixteen equal quarterly instalments commencing from 3rd September, 2013.

Short Term Borrowings

Working capital facilities are secured by hypothecation of Coffee crop, inventories, finished/ semi-finished goods/ receivables of the Company. Part of the working capital facilities is also secured by deposit of title deeds of a coffee estate.

Banking Relations :	--
Auditors :
Name :	SNB Associates Chartered Accountants
Membership :	--
Holding Company :	· Tata Global Beverages Limited
Subsidiaries/ JVs :	· Consolidated Coffee Inc. · Eight O Clock Holdings Inc. · Eight O Clock Coffee Company · Alliance Coffee Limited
Associates :	· The Rising Beverages Company LLC (wound up during the year) · RBC Hold Co. LLC
Fellow Subsidiary/(s) :	· OOO Sunty LLC · TGBL GB Ltd · Tata Starbucks Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs. 10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18677037	Equity Shares	Rs. 10/- each	Rs.186.770 Millions

Details of shares held by Holding Company/ Subsidiaries / Associates:

Equity Shares	Number of Shares	% Holding
Tata Global Beverages Limited - Holding Company	10735982	57.48%

Details of Shareholders holding more than 5% shares:

Equity Shares	Number of Shares	% Holding
Tata Global Beverages Limited - Holding Company	10735982	57.48%

Reconciliation of number of shares:

Particulars	Number of Shares
Number of shares as at 01.04.2013	18,677,037
Add: Shares issued during the year	--
Number of shares as at 31.03.2014	18,677,037

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	186.770	186.770	186.770
(b) Reserves & Surplus	5852.202	5057.763	4385.802
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	6038.972	5244.533	4572.572
(3) Non-Current Liabilities
(a) long-term borrowings	337.050	441.187	241.680
(b) Deferred tax liabilities (Net)	169.763	72.179	105.600
(c) Other long term liabilities	23.649	16.820	14.902
(d) long-term provisions	241.265	239.048	152.110
Total Non-current Liabilities (3)	771.727	769.234	514.292
(4) Current Liabilities
(a) Short term borrowings	599.720	553.066	166.227
(b) Trade payables	238.070	291.373	123.780
(c) Other current liabilities	689.279	681.442	681.141
(d) Short-term provisions	495.961	443.161	508.613
Total Current Liabilities (4)	2023.030	1969.042	1479.761
TOTAL	8833.729	7982.809	6566.625
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3070.935	2346.060	2287.352
(ii) Intangible Assets	58.425	75.129	3.886
(iii) Capital work-in-progress	76.692	538.491	22.867
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1456.344	1456.344	1456.409
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	110.781	199.976	418.077
(e) Other Non-current assets	0.875	0.849	1.903
Total Non-Current Assets	4774.052	4616.849	4190.494
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1971.774	1592.045	1239.528
(c) Trade receivables	627.037	495.994	443.472
(d) Cash and cash equivalents	135.739	235.533	140.705
(e) Short-term loans and advances	1217.246	893.128	541.691
(f) Other current assets	107.881	149.260	10.735
Total Current Assets	4059.677	3365.960	2376.131
TOTAL	8833.729	7982.809	6566.625

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
			Income	6509.163	5980.796	5085.178
			Other Income	351.807	222.068	80.542
			TOTAL (A)	6860.970	6202.864	5165.720
Less	EXPENSES
			Cost of Materials Consumed	2093.680	1896.894	1488.627
			Purchase of Stock-in-trade	339.610	313.725	297.478
			Changes in Inventories of finished goods, work-in-progress and stock-in-trade	(305.462)	(158.439)	(97.679)
			Employee Benefits Expenses	1382.392	1202.299	1093.387
			Other Expenses	1614.228	1347.745	1220.577
			Exceptional Items	0.000	95.878	(83.857)
			TOTAL (B)	5124.448	4698.102	3918.533
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			1736.522	1504.762	1247.187
Less	FINANCIAL EXPENSES (D)			49.131	45.496	73.202
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			1687.391	1459.266	1173.985
Less	DEPRECIATION/ AMORTISATION (F)			205.074	147.776	132.411
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			1482.317	1311.490	1041.574
Less	TAX (H)			416.616	374.564	253.046
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			1065.701	936.926	788.528
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			1678.663	998.607	458.504
Less	APPROPRIATIONS
		Interim and Proposed Dividend		242.802	233.463	205.447
		Provision for Tax on Dividend		41.276	38.956	33.329
		Transferred from Debenture Redemption Reserve		0.000	(135.744)	(106.099)
		Transferred to General Reserve I / General Reserve II		127.500	120.195	115.748
	BALANCE CARRIED TO THE B/S			2332.786	1678.663	998.607
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports (Includes Exports through third parties and Export Houses in case of 100% EOU)		3928.967	3779.370	3169.265
		Dividend earned in foreign currency - Net of Withholding Tax		197.145	93.709	0.000
	TOTAL EARNINGS			4126.112	3873.079	3169.265
	IMPORTS
		Raw Materials		1417.848	1358.263	798.532
		Spare Parts & Components		28.250	2.742	27.360
		Capital Goods		17.746	340.637	14.641
	TOTAL IMPORTS			1463.844	1701.642	840.533
	Earnings Per Share (Rs.)			57.06	50.16	42.22

QUARTERLY RESULTS

(Rs. In Millions)

Particulars	30.06.2014 (Unaudited)	30.09.2014 (Unaudited)
	1^st Quarter	2^nd Quarter
Net Sales	1680.700	1755.800
Total Expenditure	1379.000	1512.700
PBIDT (Excl OI)	301.700	243.100
Other Income	34.500	32.600
Operating Profit	336.200	275.700
Interest	22.200	24.800
Exceptional Items	0.000	0.000
PBDT	314.000	250.900
Depreciation	51.800	54.700
Profit Before Tax	262.200	196.200
Tax	74.800	41.200
Provisions and contingencies	0.000	0.000
Profit After Tax	187.400	155.000

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	16.37	15.67	15.51
Operating Profit Margin (PBDIT/Sales)	(%)	26.68	25.16	24.53
Return on Total Assets (PBT/Total Assets}	(%)	20.30	21.90	20.47
Return on Investment (ROI) (PBT/Networth)		0.25	0.25	0.23
Debt Equity Ratio (Total Debt /Networth)		0.16	0.19	0.09
Current Ratio (Current Asset/Current Liability)		2.01	1.71	1.61

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	186.770	186.770	186.770
Reserves & Surplus	4385.802	5057.763	5852.202
Net worth	4572.572	5244.533	6038.972
long-term borrowings	241.680	441.187	337.050
Short term borrowings	166.227	553.066	599.720
Total borrowings	407.907	994.253	936.770
Debt/Equity ratio	0.089	0.190	0.155

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	5085.178	5980.796	6509.163
		17.612	8.834

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	5085.178	5980.796	6509.163
Profit	788.528	936.926	1065.701
	15.51%	15.67%	16.37%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

FINANCIAL AND OPERATIONAL PERFORMANCE

The operating results showed a substantial improvement with the top-line crossing Rs.6509.200 Millions. The operating profit of Rs.1179.600 Millions was 4% lower than the previous year’s profit of Rs.1230.800 Millions. The profit after tax is Rs.1065.700 Millions vis Rs.936.900 Millions in the previous year.

The Instant Coffee Division faced a challenging time to maintain its trend of turnover and profitability as compared to the previous years.

The Plantations reflected significant improvement over the previous year, driven to a great extent by the surge in unit realizations in pepper. There were pressures on Coffee and Tea operations which were impacted by severe weather conditions.

OPERATIONS

Plantations:

Coffee:

The Company has harvested a higher Arabica Crop of 2076 MT as against 1542 MT of previous year; being an off year, Robusta production has been lower at 4781 MT as against 6800 MT in the previous year. This decline has been witnessed across all growing areas due to a long period of drought, followed by an extremely harsh monsoon which led to soil saturation and wet feet conditions resulting in defoliation, berry drop and incidences of stalk rot and black rot.

The plantations are experiencing an unusual weather pattern wherein there has been a long drought after the cessation of monsoon in October with only sporadic drizzles thereafter till the end of March 2014. Added to this, the prevailing day temperatures has been touching 36°C as against the normal range of 32 - 34°C.

In view of untimely and insufficient blossom showers, the Company has taken up blossom irrigation in all Robusta areas followed by backing to the extent possible, depending on the availability of water in the tanks.

Tea:

The Company produced 6.545 Million Kgs of Made tea in the financial year 2013-14 as against 6.640 Millon kgs in the previous year. The long drought in the month of January to April, with high day temperatures followed by incessant rains during monsoon had its impact on tea production. The selling prices were marginally better than the previous year.

Pepper:

The Company has achived a total pepper crop of 368 MT as against 1148 MT in the previous year. The steep decline in production is due to the prolonged dry period in the previous year experienced across all growing regions in India .The pepper crop was also affected by root wilt and quick wilt disease and the Company has taken all proactive measures to mitigate and minimize the damages.

Curing Works:

The Company’s Curing Works at Kushalnagar cured a total of 11988 MT Coffee during the current year as against 12509 MT in the previous year. In addition, 306 MT of Monsooned Coffee was processed as against 307 MT in the previous year.

The unit handled marginally lower volumes during the year due to the lower crop arrivals during 2013-14 season and continued to achieve good financial performance due to the sustained cost reduction initiatives in the factory and better husk sale realization.

EXPORTS

During the year 2013-14, Subject exported 5237 MT of Coffee as against 4831 MT in the previous year. Subject continues to focus on growth through differentiated Coffees with volumes at 1205 MT with very good premiums.

QUALITY AWARDS

Sustained and continued focus on quality has been the main focus of the Company over the years. In the year, the Company has won awards as the best exporter of Coffee to the Far East Russia, CIS Countries, USA and Canada at the Indian Coffee Export Awards. The R&G Unit at Kushalnagar has bagged the best Roaster Award in the India International Coffee Festival (IICF) held in the current calendar year. The Valparai, Nullore, Mylemoney, Goorghully, Margolly and Gubgul Estates of the Company have been adjudged as the best for their Arabica and Robusta Coffee.

The company is committed to growth through quality and continues to participate in domestic and International forums to popularize the company’s coffee.

OTHER OPERATIONS

Plantation Trails

Divisional focus continues on improving margins by positioning the Plantation Trails brand in the premium segment. The Cottabetta Bungalow has performed well and continues to exceed guest expectations. The Thaneerhulla Bungalow has been recently launched after renovation and has received encouraging feedback.

The overall top box scores for Customer Satisfaction were at 74%.

There have been media articles recognizing the uniqueness of our product and the coffee experience as a distinct strength of the business. International media familiarization trips has resulted in several brand mentions across international markets. A significant impact of this campaign has been an increase in the inbound business.

Plantation Trails was a recipient of several industry awards and recognitions for its continuous customer focus and excellence in service and delivery. Emphasis continues to be on improving occupancies by building sales and distribution using digital and social media channels.

STARBUCKS

The Company has commissioned a state of art coffee roasting facility at Kushalnagar to cater exclusively to the requirements of Tata Starbucks in India. The facility is certified by Food Safety Standards Authority of India, and under ISO 22000:2005 and SA8000:2008. The facility also won the prestigious India International Coffee Festival (IICF) 2014 award.

The coffee beans used in this roastery are being supplied exclusively from the Company’s estates. The Company is expected to benefit substantially in the long run from this alliance in terms of technology and process know-how and expansion into new geographies by supplying Starbucks requirement.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure and Developments:

The global production of coffee in the 13-14’ season is estimated at 145.7 million bags and consumption at 145.8 million bags. The World top Coffee producer – Brazil has reported lower output due to drought conditions, which has caused significant fluctuations in coffee prices in the international market. As per ICO estimates, the total consumption grew at the rate of 2.7% in the year 2013-14. The coffee consumption in the exporting countries continues to increase significantly.

The domestic coffee consumption has also been growing steadily over the years. With the decline in the production of Robusta coffee and pepper for the financial year 2013-14 across all planting areas of Karnataka, Kerala and Tamilnadu, their prices are expected to go up.

The market for certified coffee continues to grow at a good rate with healthy premiums. The market condition was challenging for Instant Coffee due to a dip in Russian market volumes. The Company has embarked upon dynamic marketing strategies and has made successful forays into African and Mid East markets; It is confident of posting better sales volumes in the coming year.

The global soluable coffee market is around 7,10,000 Metric Tonnes and is forecasted to reach 8,20,000 Metric Tonnes by 2017. The Spray and Agglomerated coffee markets are expected to post a CAGR of 2.7% and Freeze dried coffee market at CAGR of 5.2% till 2017. Much of the projected growth is expected to come from the emerging markets in Eastern Europe, Africa, Russia and CIS continue to yield volumes though the prices are much lower.

Tea continues to be the most popular and widely consumed beverage in India and around the world. Its consumption continues to grow globally at 3% annually. India, China and Srilanka have long dominated the world tea production, the African countries have steadily increased their production.

The Global tea production is around 2500 M. Kgs out of which the combined production of the Asian Countries, Kenya, Indonesia and Vietnam account for 89%. The Indian tea production was about 1200 M Kgs, during 2013-14 as compared to 1126 M Kgs in the previous year mainly on account of unfavourable weather conditions in the major tea growing areas.

OUTLOOK

Though dry and hot condition prevailed for a long period at the plantation, Subject has provided blossom irrigation to ensure the timely onset of blossom which is necessary for crop yield. The showers received during late March and April has acted as backing and will help in crop setting. With these initiatives, normal crop is expected for 2014-15.

With the continued thrust on producing quality coffee and increasing the production of specialty coffee, we should be able to increase our share in international coffee market. The Company’s association with the global major Starbucks should help in marketing our products through their supply chain all over the world. The Company’s thrust towards community service as a good corporate citizen has been continuing.

The Instant Coffee Division will strive to hone the operational excellence and customer centricity initiatives bringing in global standards and best practices to attain sustainable growth. New product development and packaging solutions fastened with continual improvement and innovation will be the driving factors of this Division.

As regards Tea, the supply situation is tight in India at present and is likely to pick up in the coming months. Quality teas will continue to sell well and command a good premium in the domestic markets. The outlook for good liquoring teas is promising and is expected to have a strong demand. The plainer teas could come under pressure, and will depend on the Crops to be seen in the year 2014-15.

LITIGATION DETAILS:

HIGH COURT OF KARNATAKA

CASE PENDING

High Court of Karnataka -Bangalore Bench

RFA 1819/2011

Petitioner/Appnt. Name	WIMCO LIMITED			Respondent/Defnt. Name	TATA COFFEE LIMITED
Petnr./Appnt. Advocate	M/S HOLLA & HOLLA			Respnt./Defnt. Advocate	P B APPAIAH
Date Filed	24/10/2011	Classification	MON	District	Bangalore City

Stage	HEARING	Last Posted For	ADMISSION
Last Action Taken	ADMIT/RULE	Last Date of Action	14/08/2014	Next Hearing Date
Latest Order
Before Hon'ble Judge/s	K.L.MANJUNATH A.V.CHANDRASHEKARA

Connected to

RFA 1820/2011

Lower Court Details [Appeal from below case.]

Case No	Court Name	Disposal Dt
OS 3690/1990	XV ADDL CITY CIVIL & SESSIONS JUDGE AT BANGALORE	04/07/2011

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER / HALF YEAR ENDED 30TH SEPTEMBER 2014

(Rs. In Millions)

Particulars	3 Months Ended	3 Months Ended	Half Year Ended
	30.09.2014	30.06.2014	30.09.2014
	UNAUDITED
1. Income from operations
a) Net sales/ Income from operation (net of excise duty)	1647.100	1591.400	3238.500
b) Other operating income	108.700	89.300	98.000
Total income from Operations(net)	1755.800	1680.700	3436.500
2.Expenditure
a) Cost of material consumed	588.000	568.300	1156.300
b) Purchases of stock in trade	100.200	107.600	207.800
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	114.700	(38.800)	75.900
d) Employees benefit expenses	351.000	349.600	700.600
e) Depreciation and amortization expenses	54.700	51.800	106.500
f) Other expenditure	358.800	392.300	751.100
Total expenses	1567.400	1430.800	2998.200
3. Profit from operations before other income and financial costs	188.400	249.900	438.300
4. Other income	32.600	34.500	67.100
5. Profit from ordinary activities before finance costs	221.000	284.400	505.400
6. Finance costs	24.800	22.200	47.000
7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items	196.200	262.200	458.400
8. Exchange Currency Fluctuation Loss/ (Gain)	0.000	0.000	0.000
9. Profit from ordinary activities before tax Expense:	196.200	262.200	458.400
10.Tax expenses	41.200	74.800	116.000
11.Net Profit / (Loss) from ordinary activities after tax (9-10)	155.000	187.400	342.400
12.Extraordinary Items (net of tax expense)	0.000	0.000	0.000
13.Net Profit / (Loss) for the period (11 -12)	155.000	187.400	342.400
14.Paid-up equity share capital (Nominal value Rs.10/- per share)	1867.70	1867.70	1867.70
15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year
(a) Basic and diluted	8.30	10.03	18.33
A. Particulars of shareholding
1. Public Shareholding
- Number of shares	7941055	7941055	7941055
- Percentage of shareholding	42.52%	42.52%	42.52%
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	3100040	3100040	3100040
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	28.88%	28.88%	28.88%
Percentage of shares (as a % of total share capital of the company)	16.60%	16.60%	16.60%
b) Non Encumbered
Number of shares	7635942	7635942	7635942
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	71.12%	71.12%	71.12%
Percentage of shares (as a % of total share capital of the company)	40.88%	40.88%	40.88%
B. Investor Complaints
Pending at the beginning of the quarter	0
Receiving during the quarter	0
Disposed of during the quarter	0
Remaining unreserved at the end of the quarter	0

STANDALONE STATEMENT OF ASSTES AND LIABILITIES AS ON 30.09.2014

Rs. In Millions

SOURCES OF FUNDS	30.09.2014 (Unaudited)
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	186.800
(b) Reserves & Surplus	6182.400
(c) Pending Call Money	0.000
Sub-total Shareholders’	6369.200
(2) Non-Current Liabilities
(a) long-term borrowings	270.200
(b) Deferred tax liabilities (Net)	179.400
(c) Other long term liabilities	24.700
(d) long-term provisions	264.500
Sub-total of Non-Current liabilities	738.800
(3) Current liabilities
(a) Short term borrowings	809.500
(b) Trade payables	270.600
(c) Other current liabilities	698.100
(d) Short-term provisions	17.600
Sub-total of Current liabilities	1795.800
TOTAL	8903.800
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
Tangible Assets	3108.400
Intangible Assets	57.400
Capital Work in progress	27.200
(b) Non-Current investments	1456.300
(c) Deferred tax assets (net)	0.000
(d) Long term loans and advances	201.600
(e) Other non-current assets	0.900
Sub-total of Non-Current Assets	4851.800
(2) Current assets
(a) Current investments	0.000
(b) Inventories	1889.900
(c) Trade receivables	864.100
(d) Cash and cash equivalents	31.500
(e) Short-term loans and advances	1138.700
(f) Other current assets	127.800
Sub-total of Current Assets	4052.000
TOTAL	8903.800

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10364373	22/08/2012 *	558,505,000.00	COOPERATIEVE CENTRALE RAIFFEISEN BOERENLEENBANK BA (ALSO KNOWN AS RABOBANK INTERNATIONAL) HONG KONG	32/F, THREE PACIFIC PLACE, 1 QUEEN'S ROAD EAST, HONG KONG, - 0000, HONG KONG	B57789679
2	10239429	21/08/2010	250,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	A94218286
3	10144453	06/12/2006	935,152,800.00	THE WESTERN INDIA TRUSTEE AND EXECUTOR COMPANY LIMITED	VISWASTA BHAWAN 218PRATAPGANJ PETH, SATARA, MAHARASHTRA - 415002, INDIA	A07279094
4	90285648	29/01/2004	44,787,367.00	TATA COFFEE LIMITED	RAILWAY PARALLEL ROAD, BANGLORE, KARNATAKA, INDIA	-
5	80063801	12/01/2012 *	450,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	#7, M G ROAD, BANGALORE, KARNATAKA - 560001, INDIA	B29600517
6	90285461	27/10/2001	5,000,000.00	TAMILNAD MERCANTILE BANK LIMITED	THENI, THENI, TAMIL NADU, INDIA	-
7	90285460	22/10/2001	34,000,000.00	TAMILNAD MERCANTILE BANK LIMITED	THENI, THENI, TAMIL NADU, INDIA	-
8	80067290	10/05/2001	220,000,000.00	CORPORATION BANK	QUEEN'S ROAD, BANGALORE , KARNATAKA - 560001, INDIA	-
9	80034227	05/11/2013 *	100,000,000.00	INDIAN OVERSEAS BANK	POLLIBETTA BRANCH, POLLIBETTA, KARNATAKA - 571215, INDIA	B90878729

*Date of modification Charges

FIXED ASSETS:

· Freehold and Leasehold Land

· Buildings

· Water and Sanitary Installations

· Electrical Installations

· Plant and Equipment

· Furniture and Fixtures

· Computers

· Office Equipment

· Motor Vehicles

PRESS RELEASE:

Tata Coffee announces financial results for Quarter 1, FY 2014-15

Tata Coffee, Asia's largest integrated coffee company, announced its results for the Quarter ended 30th June, 2014. The Company has reported a net profit of Rs. 303.100 Millions on a consolidated basis for the first quarter of 2014-15, compared with a net profit of Rs. 403.800 Millions in the corresponding period last year. Total income from operations is lower by 11% at Rs. 3745.200 Millions during the first quarter of 2014-15, against Rs. 4184.600 Millions during the corresponding period last year. Earnings per share stood at Rs. 16.23.

The lower profits in this quarter primarily reflect the lesser crop available for sale in the plantations business, on account of the lower production of coffee, tea and pepper during the previous season, which had witnessed distinctly unfavourable weather conditions. However, the instant coffee business saw good volume growth, aligned to the Company's strategy of driving significant growth of value-added products.

Segment-wise Performance

Plantations:
Income and profitability of the plantation segment have been impacted during the quarter on account of lower plantation output available for sale. This was caused both by adverse weather, as well by the fact that the previous financial year was an "off-year" in the biennial production cycle of coffee and pepper.

Instant Coffee

The instant coffee segment reported good topline growth, with revenues standing at Rs. 86 crores for the quarter, compared to Rs. 76 crores for the corresponding period last year. This growth was driven primarily by higher sales of instant coffee to new geographies.

During the quarter, the instant coffee business has commissioned its new aroma agglomeration plant, which will cater to premium agglomerated coffee customers.

The Company continues to invest significantly into Research and Development, as well as technology, in its instant coffee business.

During the quarter, the Company exported 1,836 MT of instant coffee as compared to 1,535 MT during the corresponding period last year, registering a handsome volume growth of 20%.

Eight O'Clock Coffee

The Company's US subsidiary Eight O'Clock Coffee (EOC) continued to grow significantly in the pods format, with royalty income relating to this format growing by 26%. On the other hand, the bagged coffee segment saw a decline in sales, resulting in total income for the quarter standing at US $ 34.54 million. However, the gross income figure does not reflect sales revenues relating to Eight O'Clock Coffee pods, in view of the arrangement which governs this business, and which results in royalty income accruing to EOC. For the quarter, EOC recorded a profit after tax of US $ 3.87 million vis-à-vis US $ 4.40 million during the corresponding quarter last year.

Sustainability
Tata Coffee is committed to the use of sustainable practices in various areas of plantations, including irrigation and water management. This focus has also now extended to the instant coffee operations, including significant use of wind power at the Theni manufacturing unit.

Commenting on the Company's performance, Mr. Hameed Huq, Managing Director, Tata Coffee, said – "The Company's focus on value-addition and superior offerings is producing good results, as demonstrated by the growth in sales of instant coffee. Our premium value propositions have allowed us to gradually move away from commodity price volatilities. The global instant coffee market is showing steady recovery after a slow-down in some markets. The new capacities we have put in place will help us strongly leverage such growth."

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

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 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.61.89
UK Pound	1	Rs.96.83
Euro	1	Rs.76.57

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KRN
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		72

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.