MIRA
INFORM REPORT
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Report Date : |
28.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
TULSYAN NEC LIMITED |
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Registered Office : |
61, Sembudoss Street, 1st Floor, Chennai – 600 001,
Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
11.04.1947 |
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Com. Reg. No.: |
007437 |
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CIN No.: [Company
Identification No.] |
L28920TN1947PLC007437 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRT04262G |
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PAN No.: [Permanent
Account No.] |
AABCT3720E |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business : |
Manufacturer of Steel Bars and Rods, HDPE/ PP Woven Sacks. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1698660 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. Trade
relations are fair. Financial position is good. The company is doing well. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
61, Sembudoss Street, 1st Floor, Chennai – 600 001,
Tamilnadu, India |
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Tel. No.: |
91-44-25222673/ 25223918/ 25221060/ 25222676 |
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Fax No.: |
91-44-39181076 |
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E-Mail : |
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Corporate Office : |
Apex Plaza, I Floor, Old No. 3, New No. 77, Nungambakkam High Road, Chennai - 600 034,
Tamilnadu, India |
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Administrative Office : |
37, Kaveriappa Layout, Miller Tank Bund Road, Vasanth Nagar, Bangalore - 560 052, Karnataka, India |
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Plant Location : |
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Steel Division : |
39, Dr. Harikrishna Naidu Street Ambattur, Chennai - 600 053, Tamilnadu, India A 15/N, (Pt) SIPCOT Indl. Complex, Gummudipoondi, Chengalpet Dist, Tamil Nadu, India D-4, SIPCOT Indl. Complex, Gummudipoondi, Chengalpet Dist., Tamil Nadu, India 476, K.G. Palayam Post, Kariyam Palayam, Pugalur, Annur Union, Coimbatore - 641 697, India Windmill Kudimangalam, Udumalapet, Tamil Nadu, India Pazhavoor, Tirunelveli Dist.Tamil Nadu, India Kavalakiurichi, Tirunelveli Dist. Tamil Nadu, India |
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Synthetic Division : |
7-A, Doddaballapura Indl. Area, Kasba Hobli, Karnataka, India 2-B, Survey No. 16, Korandanahalli Malur Industrial Area, Malur Kolar Dist. Karnataka, India Survey No. 4/1-P-1 Adakamaranahully Village, Dasanapura hobli Makali Post, Tumkur Road, Bangalore, Karnataka, India Unit III, No. 343, 9th Cross, 4th Phase, Peenya II Stage, Bangalore - 560 058. Karnataka, India Plot No.E-4, Madkaim Indl. Area, Madkaim Village, Ponda Taluk, Goa. |
DIRECTORS
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Name : |
Mr. Lalit Kumar Tulsyan |
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Designation : |
Executive
Chairman |
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Age : |
47 Years |
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Qualification: |
B.Com |
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Experience : |
21 Years |
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Date of Employment : |
27.01.1994 |
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Name : |
Mr. Sanjay Tulsyan |
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Designation : |
Managing Director |
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Name : |
Mr. S. Soundararajan |
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Designation : |
Director |
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Name : |
Mr. P T Rangamani |
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Designation : |
Director |
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Name : |
Mr. A P Venkateshwaran |
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Designation : |
Director |
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Name : |
Mr. S. Rama Krishnan |
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Designation : |
Director |
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Name : |
MR. Sanjay Agarwalla |
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Designation : |
Director |
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Name : |
Mr. V. Kirubanandan |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. R B Prem Ganesh |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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A. Shareholding of Promoter and Promoters Group |
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1. INDIAN |
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Individuals/ Hindu
Undivided Family |
3239800 |
64.79 |
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Sub -Total (A) (1) |
3239800 |
64.79 |
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B. Public Shareholding |
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1. INSTITUTIONS |
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Mutual Funds/UTI |
48600 |
0.97 |
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Sub -Total (B) (1) |
48600 |
0.97 |
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2. NON-INSTITUTIONS |
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a. Bodies
Corporate |
241207 |
4.82 |
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b. Individuals - |
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1. Individual
Shareholders holding nominal share capital up to Rs. 0.100 million |
1238508 |
24.77 |
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II. Individual
Shareholders holding nominal share capital up to Rs. 0.100 million |
230000 |
4.60 |
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c. Any other Clearing
Member |
1885 |
0.03 |
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Sub- Total (B) (2) |
1711600 |
34.23 |
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Total Public Share holders (B) = (B) (1) +
(B) (2) |
1760200 |
35.20 |
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Total (A) + (B) |
5000000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Steel Bars and Rods, HDPE/ PP Woven Sacks. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Finished Steel Products (Chennai) |
Delicensed |
48000 MT (48000MT) |
46193MT (42193MT) |
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Finished Steel Products (Coimbatore) |
Delicensed |
36000 MT (36000MT) |
(36000MT) (9428 MT) |
|
Ms Ingots |
Delicensed |
36000 MT (36000MT) |
18758MT (18386MT) |
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MS Billet |
Delicensed |
72000 MT 72000 MT |
40730 MT (36364 MT) |
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HDPE/PP Woven Sacks
and Fabrics |
Delicensed |
17541 MT (17541 MT) |
14712 MT (13131 MT) |
GENERAL
INFORMATION
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Bankers : |
v Canara Bank v Syndicate Bank v Andhra Bank v State Bank of
India v IDBI Bank |
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Facilities : |
Secured Loans
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Patel and Patel Chartered Accountants |
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Address : |
Chennai |
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Associates : |
v Cosmic Global Limited v Tulsyan Power Limited v Savitri Steel Industries v Tulsyan Smelters Private Limited v Vijaya Steels Limited v G L and Sons(Metal and Products) Private Limited v Bharat Tin and Enamel Company Private Limited v Shri Lalit Kumar Tulsyan v Shri Sanjay Tulsyan v Shri A P Venkateswaran |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50,00,000 |
Equity shares |
Rs. 10/- each |
Rs. 50.000 millions |
|
5,00,000 |
Preference shares |
Rs. 100/- each |
Rs. 50.000 millions |
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Total |
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Rs. 100.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50,00,000 |
Equity shares |
Rs. 10/-
each |
Rs. 50.000 millions |
Note:
Of the above 5,06,660 Equity shares of Rs.
10/- each were issued as fully paid bonus shares.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
50.000 |
50.000 |
50.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
289.732 |
237.509 |
206.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
339.732 |
287.509 |
256.600 |
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LOAN FUNDS |
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1] Secured Loans |
1111.323 |
1010.109 |
810.200 |
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2] Unsecured Loans |
122.143 |
69.688 |
72.100 |
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TOTAL BORROWING |
1233.466 |
1079.797 |
882.300 |
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DEFERRED TAX LIABILITIES |
86.285 |
79.852 |
0.000 |
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TOTAL |
1659.483 |
1447.158 |
1138.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
457.862 |
472.247 |
405.000 |
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Capital work-in-progress |
188.640 |
0.000 |
0.000 |
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INVESTMENT |
30.411 |
30.401 |
17.400 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
|
0.000 |
371.100 |
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Sundry Debtors |
0.000
|
0.000 |
723.700 |
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Cash & Bank Balances |
0.000
|
0.000 |
76.500 |
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Other Current Assets |
1334.107
|
1531.359 |
0.000 |
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Loans & Advances |
504.098
|
334.586 |
478.800 |
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Total
Current Assets |
1838.205
|
1865.945 |
1650.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
789.754
|
869.394 |
896.000 |
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Provisions |
66.126
|
52.469 |
37.600 |
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Total
Current Liabilities |
855.880
|
921.863 |
933.600 |
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Net Current Assets |
982.325
|
944.082 |
716.500 |
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MISCELLANEOUS EXPENSES |
0.245 |
0.428 |
0.000 |
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TOTAL |
1659.483 |
1447.158 |
1138.900 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
4315.710 |
3282.250 |
3228.300 |
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Other Income |
15.243 |
9.192 |
17.000 |
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Total Income |
4330.953 |
3291.442 |
3245.300 |
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Profit/(Loss) Before Tax |
88.926 |
60.464 |
50.700 |
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Provision for Taxation |
27.814 |
21.179 |
10.100 |
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Profit/(Loss) After Tax |
61.112 |
39.285 |
40.600 |
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Earnings in Foreign Currency : |
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Export Earnings |
430.228 |
263.228 |
0.000 |
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Total Earnings |
430.228 |
263.228 |
0.000 |
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Imports : |
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Raw Materials |
565.222 |
651.163 |
0.000 |
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Total Imports |
565.222 |
651.163 |
0.000 |
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Expenditures : |
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Cost of Goods Sold |
4201.889 |
3195.682 |
0.000 |
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Manufacturing Expenses |
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|
126.200 |
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Administrative Expenses |
|
|
136.000 |
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Raw Material Consumed |
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|
2545.300 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
(4.700) |
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|
Salaries, Wages, Bonus, etc. |
|
|
73.100 |
|
|
Interest |
|
|
71.500 |
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Power & Fuel |
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|
217.500 |
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Depreciation & Amortization |
40.138 |
35.296 |
29.600 |
|
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Other Expenditure |
0.000 |
0.000 |
0.100 |
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Total Expenditure |
4242.027 |
3230.978 |
3194.600 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales
Turnover |
967.600 |
1083.600 |
1203.400 |
2088.200 |
|
Other
Income |
0.000 |
4.000 |
0.000 |
4.200 |
|
Total
Income |
967.600 |
1087.600 |
1203.400 |
2092.400 |
|
Total
Expenditure |
903.200 |
999.300 |
1104.300 |
1932.500 |
|
Operating
Profit |
64.400 |
88.300 |
99.100 |
159.900 |
|
Interest |
22.500 |
34.100 |
39.300 |
48.500 |
|
Gross
Profit |
41.900 |
54.200 |
59.800 |
111.400 |
|
Depreciation |
11.900 |
13.700 |
14.000 |
25.400 |
|
Tax |
2.700 |
8.200 |
10.000 |
24.700 |
|
Reported
PAT |
27.300 |
29.800 |
32.000 |
44.300 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
3.72 |
3.65 |
3.66 |
|
Long
Term Debt-Equity Ratio |
2.23 |
2.21 |
1.70 |
|
Current
Ratio |
1.29 |
1.30 |
1.21 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
5.88 |
4.86 |
5.62 |
|
Inventory |
6.75 |
6.16 |
8.57 |
|
Debtors |
6.07 |
4.42 |
5.92 |
|
Interest
Cover Ratio |
1.76 |
1.76 |
1.63 |
|
Operating
Profit Margin(%) |
5.71 |
5.34 |
4.52 |
|
Profit
Before Interest And Tax Margin(%) |
4.78 |
4.27 |
3.60 |
|
Cash
Profit Margin(%) |
2.35 |
2.27 |
2.03 |
|
Adjusted
Net Profit Margin(%) |
1.42 |
1.19 |
1.11 |
|
Return
On Capital Employed(%) |
14.06 |
11.21 |
10.54 |
|
Return
On Net Worth(%) |
19.67 |
14.58 |
15.13 |
LOCAL AGENCY
FURTHER INFORMATION
As Per Website
Details
Company Profile
Established in 1947 – An ISO: 9001-2000 Certified Company
Turnover 450 Crores - Core activity steel manufacturing
Company Activities : Steel manufacturing, HDPE/PP Woven Sacks & Information Technology.
Listed in Indian Stock Exchange.
Manufacturing units at Chennai, Coimbatore, Goa and Bangalore.
Pioneers in TMT bars, first to be licensed by BIS in South India.
Manufacturing all Grades of TMT Bars : Fe-415, Fe-500, Fe-550 and Corrosion Resistant Steel (CRS Bars)
First to have an in-house Billet manufacturing unit
Largest suppliers for major projects in India
Marketing Offices at : Chennai, Bangalore, Cochin, Calicut, Coimbatore, Madurai, Erode, Tiruchirapalli, Goa, and Mysore.
Director’s Report
Operations and
Outlook
With constant vigil over ever-changing technological trends and consistent upgrading of equipment, the company is able to provide value added products to its customers. Indisputable superiority in quality and timely supplies has facilitated a continuous increase in demand for the company's product, which is being very closely monitored The Directors re-assure that all efforts shall continue to sustain satisfactory margin and to further consolidate retained earnings.
Contingent
Liabilities
All Liabilities have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the Notes to the Accounts wherever practicable.
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|
31.03.2007 (Rs. In millions) |
31.03.2006 (Rs. In
millions) |
|
Guarantees Outstanding |
22.682 |
16.762 |
|
F L C with the Bank |
27.974 |
Nil |
|
Entry Tax |
8.044 |
8.044 |
|
Excise Duty |
0.995 |
0.995 |
Expenses of Rs. 54985.792 millions incurred towards acquiring and bringing into working condition of Rolling Mill at Coimbatore for period of three years lease has been capitalised and written off pro-rata over the lease period. During the year Rs. 18326.600 millions has been written off.
Other Contingent Liabilities
|
|
31.03.2007 (Rs. In millions) |
31.03.2006 (Rs. In
millions) |
|
Guarantees given by
bankers |
19.840 |
19.840 |
|
Counter Guarantee given for Subsidiary Company |
-- |
-- |
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Liability under acceptances against Letters of Credit established by
Bankers |
94.517 |
100.326 |
The Company has confirmed balances with most of Sundry Debtors, Creditors and Loans and Advances.
An amount of Rs. 10.000 millions has been appropriated from Profit and Loss Appropriation A/c to General Reserve A/c from profits.
Income tax deducted at source:
|
|
31.03.2007 (Rs. In millions) |
31.03.2006 (Rs. In
millions) |
|
From interest received |
1.442 |
0.406 |
|
From job works received |
0.086 |
0.010 |
|
From Commission received |
0.000 |
0.000 |
|
From Others |
0.010 |
0.630 |
Balance with bank in deposit accounts includes Rs.78.945 millions being margin money for Letter of Credit /Guarantees issued by Bank (As at 31.03.2006 Rs. 69.873 millions)
The Company has not received replies from the Creditors as to whether they are Small Scale Industrial Undertakings and hence the information in respect of dues to such units, if any, could not be furnished.
As per the management representation there is no impairment loss on fixed assets during the year. So AS-28 is not applicable.
Prior period expenses Rs. 0.267 millions in various head are debited during the year.
Previous year figures have been regrouped wherever necessary.
AS-16 Borrowing Cost have been treated in accordance with the Accounting Standard (AS-16) issued by the Institute of Chartered Accountants of India. During the financial year the interest of Rs. 1.502 million has been capitalized to Plant & Machinery.
Licence under DFRC (Duty Free Replinishment Certificate) to the extent of Rs. 47.658 millions to which exports have already been made and proceeds received, has been credited to Raw Material Purchase Account and debited to Loans and Advances.
Fixed Assets
v Leasehold Land
v Factory buildings
v Office Premises
v Plant and Machinery
v Works Equipments
v Lab Equipments
v Office and Other Equipments
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 records 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 records 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 :
The 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.
The 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. 42.79 |
|
UK Pound |
1 |
Rs. 85.04 |
|
Euro |
1 |
Rs. 67.34 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
55 |
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
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 |
|
NR |
In view of the lack of information, they have no basis upon which to
recommend credit dealings |
No Rating |
|