HIL Ltd - a company from roofing solution. I ignored

Jun 16, 2018

I was checking HIL Ltd. This is CK Birla Company. Brand wise it is a very good company as you can see in this image. Growth in recent quarters are very strong and margin is improving from many past quarters. This has caught my attention.Sector is also very Hot - Roofing solutions and building materials.



Recently in Mar, 2018 quarter, HIL Ltd has not declared the consolidated result. It says that JV is not in its control and asked for exemption from Ministry. It has received the exemption.

Again after that, it has given notice on 7th June, 2018 for the investment for Rs 1000 cr which is a very big amount. They mention the intention for this amount as below:

1. To make investments or to give loans or to give guarantee(ies) or to provide security(ies) to other companies or body corporates upto Rs. 1000 crores as per provisions of Section 186(3) of the Companies Act, 2013.
2. To borrow funds upto Rs. 1000 crores, from time to time for the business of the Company as per the Section 180(1)(c) of the Companies Act, 2013.
3. To create security on the properties/assets of the Company, both present and future, in favour of lenders as per Section 180(1)(a) of the Companies Act, 2013.
The above text is mentioned on BSE announcement but PDF document attached does not mention this. I cannot see this.

This line is not clear to me. If it was investment then it was easier to understand. If it is going into those JVs for which company has not given Consolidated statement this quarter then what is going with those heavy investment can remain unknown to us. Rs 1000 Cr is not a small amount for this company's size.

To make investments or to give loans or to give guarantee(ies) or to provide security(ies) to other companies or body corporates.

Therefore, I IGNORED it as investment stock.

Comments are welcome in support of or against the investment rationale in HIL Ltd.

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