TCM Ltd enters into temporary license deed agreement for trial run of cattle feed factory

TCM Ltd has entered into a license deed agreement on 10 February 2023 as a licensee with PDDP Central Society, Kalady, Ernakulam to conduct trial run for 45 days of their cattle feed factory located at Kalady, Ernakulam for manufacturing cattle feed.

It is a license agreement with TCM Ltd as a licensee, in order to convince ourselves about the workability of the Cattle Feed factory of PDDP Central Society, we requested the licensor's permission to have a trial run in the factory for 45 days for manufacturing Cattle Feed with all the factory buildings and other paraphernalia for running the factory. It is purely a license arrangement without claiming any other rights. After 45 days of trial run from the date of this agreement, the arrangement will come to an end and thereafter licensee will not have any right in the factory or the property owned by the licensor where the factory is established. The trial run is for convincing about the workability of the factory, So as to take the factory on a license for an extended period and to operate the factory for manufacturing cattle feed. On the basis of the workability of this trial run, both the parties will enter into a long term license agreement for manufacture of the cattle feed.

For conducting this trial run for 45 days, commencing from 10 Feb 2023, the company will pay PDDP Central Society a license rent of Rs.50000/- (Rupees Fifty Thousand Only) for the entire license period plus GST after deducting TDS. In addition to this, Rs.10,00,000/- (Rupees Ten Lakhs) interest free security deposit, which is refundable after 45 days of trial run will be paid to the licensor. Electricity and other expenses related to the operation of the factory will be paid by the licensee on actuals.

The company (licensee) can use the factory only for trial run and will not have any commercial production during the license period. However, whatever products manufactured and any balance of materials in stock will be the property of the licensee.

The licensee will pay a license rent of Rs.50000/- (Rupees Fifty Thousand Only) for the entire license period plus GST after deducting TDS. In addition to this, Rs.10,00,000/- (Rupees Ten Lakhs) interest free security deposit, which is refundable after 45 days of trial run will be paid to the licensor. Electricity and other expenses related to the operation of the factory will be paid by the licensee on actuals.

Shares of TCM LTD. was last trading in BSE at Rs. 35.80 as compared to the previous close of Rs. 34.55. The total number of shares traded during the day was 1299 in over 26 trades.

The stock hit an intraday high of Rs. 36.15 and intraday low of 34.10. The net turnover during the day was Rs. 46158.00.

Source : Equity Bulls

Keywords

TCM INE034F01010 TrialRun CattleFeedFactory