MIRA INFORM REPORT

 

 

Report Date :

19.09.2011

 

IDENTIFICATION DETAILS

 

Name :

TULSYAN NEC LIMITED

 

 

Registered Office :

61, Sembudoss Street, 1st Floor, Chennai – 600 001, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

11.04.1947

 

 

Com. Reg. No.:

18-007437

 

 

Capital Investment / Paid-up Capital :

Rs.50.000 millions

 

 

CIN No.:

[Company Identification No.]

L28920TN1947PLC007437

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRT04262G

 

 

PAN No.:

[Permanent Account No.]

AABCT3720E

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Steel Bars and Rods, HDPE/ PP Woven Sacks.

 

 

No. of Employees :

1550 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (51)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Maximum Credit Limit :

USD 3000000

 

 

Status :

Good

 

 

Payment Behaviour :

Usually  Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having fine track. Financials positions of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The company can be considered normal for 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 – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

 

 

 

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

61, Sembudoss Street, 1st Floor, Chennai – 600 001, Tamilnadu, India

Tel. No.:

91-44-25222673/ 25223918/ 25221060/ 25222676/2024432/2023974

Fax No.:

91-44-39181076

E-Mail :

tulsyannecltf@vsnl.net

investor@tulsyannec.com

Website :

www.tulsyannec.co.in

 

 

Corporate Office :

Apex Plaza, 1st Floor, Old No. 3, New No. 77, Nungambakkam High Road, Chennai  - 600 034, Tamilnadu, India

Tel. No.:

91-44-39181060 / 39120756 / 39181097

Fax No.:

91-44-39181097

Email :

tulsyannec@gmail.com

 

 

Administrative Office  :

37, Kaveriappa Layout, Miller Tank Bund Road, Vasanth Nagar, Bangalore - 560 052, Karnataka, India

 

 

Plant Location :

 

Steel Division :

·         39, Dr. Harikrishna Naidu Street, Ambattur, Chennai - 600 053, Tamilnadu, India

 

·         Plot No. A 15/N, (Pt) SIPCOT Industrial Complex, Gummudipoondi, Chengalpet District, Tamilnadu, India

 

·         D-4, SIPCOT Industrial Complex, Gummudipoondi, Chengalpet District, Tamilnadu, India

 

·         476, K.G. Palayam Post, Kariyam Palayam, Pugalur, Annur Union, Coimbatore - 641 697, India

 

Depot :

 

·         55/2, Cuddalore Main Road, Ariyankuppam, Pondicheery – 605 007, India

 

Windmill :

 

·         Kudimangalam, Udumalapet, Tamilnadu, India

 

·         Pazhavoor, Tirunelveli District Tamilnadu, India

 

·         Kavalakiurichi, Tirunelveli District Tamilnadu, India

 

 

Synthetic Division :

·         7-A, Doddaballapura Industril Area, Kasba Hobli, Karnataka, India

 

·         2-B, Survey No. 16, Korandanahalli, Malur Industrial Area, Malur Kolar District Karnataka, India

 

·         Plot No.20, KIADB Industrial Area, Malur - 563130, Kolar District, Karnataka, India

 

·         Plot No.E-4, Madkaim Industrial Area, Madkain Village, Ponda Taluk, Goa

 

·         Survey No. 4/1-P-1, Adakamaranahully Village, Dasanapura Hobli, Makali Post, Tumkur Road, Bangalore, Karnataka, India

 

·         Survey No.237 to 245, Boincheruvupalli Village, Peapully Mandal, Kurnool District – 518 220, Andhra Pradesh, India

 

 

 

DIRECTORS

 

Name :

Mr. Lalit Kumar Tulsyan

Designation :

Executive Chairman

Date of Birth/ Age :

18.02.1960

Qualification:

B.Com

Experience :

30 years

Date of Appointment :

27.01.1994

Other Directorship :

·         Tulsyan Smelters Private Limited

·         Cosmic Global Limited

·         Tulsyan Power Limited

·         Balaji Engineering and Galvanizing Limited

·         Tulsyan Alloys Limited

·         Chitrakoot Steel and Power Private Limited

·         Buildmet Fibers Private Limited

 

 

Name :

Mr. Sanjay Tulsyan

Designation :

Managing Director

Date of Birth/ Age :

12.01.1964

Qualification:

B.Com., (Hons)

Experience :

25 years

Date of Appointment :

06.09.1986

Other Directorship :

·         Tulsyan Smelters Private Limited

·         Cosmic Global Limited

·         Tulsyan Power Limited

·         Balaji Engineering and Galvanizing Limited

·         Tulsyan Alloys Limited

·         Chitrakoot Steel and Power Private Limited

·         Buildmet Fibers Private Limited

·         Color Peppers Media Private Limited

 

 

Name :

Mr. S. Soundararajan

Designation :

Director

Qualification:

I.A. & A.S.

 

 

Name :

Mr. P.T. Rangamani

Designation :

Director

 

 

Name :

Mr. A.P. Venkateshwaran

Designation :

Director (Finance)

Qualification:

B.Com. FCA

 

 

Name :

Mr. S. Ramakrishnan

Designation :

Director

Qualification:

B.Com.

 

 

Name :

Mr. Sanjay Agarwalla

Designation :

Whole –Time Director

Date of Birth/ Age :

26.06.1963

Qualification:

B.Com

Experience :

20 years

Date of Appointment :

27.04.2006

Other Directorship :

·         Tulsyan Power Limited

·         Cosmic Global Limited

·         Balaji Engineering and Galvanizing Limited

·         Chitrakoot Steel and Power Private Limited

·         Color Peppers Media Private Limited

 

 

Name :

Mr. V. Kirubanandan

Designation :

Director

Date of Birth/ Age :

30.04.1948

Qualification:

B.E., M. Tech., M.B.A.

Experience :

42 years

 

 

Name :

Mr. C. Ramachandran

Designation :

Director

 

 

Name :

Mr. Selvaganapathy

Designation :

Director

Date of Birth/ Age :

15.07.1954

Qualification:

B. com

Experience :

32 years

Other Directorship :

·         Buildmet Fibers Private Limited

·         Shakthi Kiran Foods Private Limited

·         Good Creations Private Limited

·         Transpac Asia Private Limited

 

 

KEY EXECUTIVES

 

Name :

Mr. K. Janakiraman

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 30.06.2011)

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

11,215,180

74.77

Sub Total

11,215,180

74.77

 

 

 

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

11,215,180

74.77

 

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

2,000

0.01

Foreign Institutional Investors

24,385

0.16

Sub Total

26,385

0.18

 

 

 

(2) Non-Institutions

 

 

Bodies Corporate

157,604

1.05

 

 

 

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 Million

2,061,328

13.74

Individual shareholders holding nominal share capital in excess of Rs.0.100 Million

1,264,044

8.43

Any Others (Specify)

275,459

1.84

Clearing Members

1,833

0.01

Hindu Undivided Families

175,054

1.17

Non Resident Indians

98,572

0.66

Sub Total

3,758,435

25.06

 

 

 

Total Public shareholding (B)

3,784,820

25.23

 

 

 

Total (A)+(B)

15,000,000

100.00

 

 

 

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

 

 

 

Total (A)+(B)+(C)

15,000,000

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Steel Bars and Rods, HDPE/ PP Woven Sacks.

 

 

Products :

 

ITC Code

Product Description

 

7214-1090

Non Alloy Bars and Rods

3923-2990

HDPE/ PP Woven Sacks

7206-1090

Non Alloy Ingots

7207-1920

Non Alloy Billets

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Licensed Capacity

Installed Capacity

Actual Production

 

 

 

 

Finished Steel Products (Chennai)

Delicensed

48000 MT

43374 MT

Finished Steel Products (Chennai- Gummudipoondi)

* 150000 MT added during September, 2009

Delicensed

300000* MT

130916 MT

MS Ingots

Delicensed

36000 MT

--

MS Billet

Delicensed

144000 MT

75679 MT

HDPE/PP Woven Sacks and Fabrics

Delicensed

25797 MT

11696 MT

 

Note:

 

·         Installed Capacity being a technical matter is as certified by the Management and relied upon by the Auditors.

·         Scrap generated 7733 MT (During the year 2009-10 - 6640 MT)

 

 

GENERAL INFORMATION

 

Customers :

·         Ascendas

·         Atomic Energy – IGCAR / BHAVANI

·         BGR Energy

·         CCCL – Sun TV

·         Hilton Hotel

·         HIRCO

·         Nokia

·         Robert Bosch

·         RMZ Bangalore

·         C.P.W.D.

·         Arkay Energy, Hyderabad

·         Om Sakthi Constructions

·         Loyal Textiles Limited

·         GEA Energy Systems

·         Empee Distilleries Limited

·         Sakthi Sugars Limited

·         Suzlon Energy

 

 

No. of Employees :

1550 (Approximately)

 

 

Bankers :

v      Canara Bank

v      Syndicate Bank

v      Andhra Bank

v      State Bank of India

v       IDBI Bank

v       Indian Overseas Bank

 

 

Facilities :

Secured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

 

 

 

Working capital loans from Banks (Note 1)

 

 

Canara Bank

531.397

491.151

Syndicate Bank

409.650

322.077

State Bank of India

308.743

248.621

Andhra Bank

152.892

131.075

 

 

 

Term Loan from Banks

 

 

Term Loan – Andhra Bank (Note 2)

82.392

22.581

Term Loan- Canara Bank (Note 2)

145.750

24.628

Term Loan – Syndicate Bank (Note 2)

213.876

193.683

Term Loan – State Bank of India (Note 2)

16.652

22.464

Term Loan – State Bank of India (Windmill) (Note 3)

13.914

19.914

Term Loan – Indian Overseas Bank – (Note 4)

97.900

--

 

 

 

From Financial Institutions

 

 

Industrial Development Bank of India  (Note 4)

220.938

389.966

Tata Capital

27.284

0.000

From Others

210.069

164.609

 

 

 

Total

 

2431.457

2030.769

 

Notes:

 

1.       Against hypothecation of book debts inventories and second charge on fixed assets of the company.

2.       Secured by first charge on fixed assets on above loan.

3.       First charge on wind mill, in addition, the above loans are also guaranteed by directors.

4.       Secured by first charge on balance of fixed assets of the company. In addition, the above loans are also guaranteed by directors.

 

Unsecured Loans

31.03.2010

31.03.2009

 

 

(Rs. In Millions)

 

 

From Bodies Corporate

135.360

165.860

From Directors

62.795

4.196

From Others

28.963

10.812

Interest Accrued and Due

8.474

8.691

IFST Loan

10.435

17.460

 

 

 

Total

 

246.027

207.019

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

C.A. Patel and Patel

Chartered Accountants

Address :

Chennai

 

 

Associates :

·         Tulsyan Smelters Private Limited

·         T.G. Logistics Private Limited

 

 

Subsidiaries :

·         Cosmic Global Limited

·         Tulsyan Power Limited

·         Chitrakoot Steel and Power Private Limited

·         Balaji Engineering and Galvanizing Limited

·         Color Peppers Media Private Limited

 

 

CAPITAL STRUCTURE

 

(AS ON 31.03.2011)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

22000000

Equity Shares

Rs.10/- each

Rs.220.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5000000

Equity Shares

Rs.10/- each

Rs.50.000 millions

 

 

 

 

 

Note:

 

Of the above, 506660 Equity shares of Rs.10/- each were issued as fully paid bonus shares by way of capitalization of reserve.

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

50.000

50.000

50.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

655.023

573.307

499.843

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

705.023

623.307

549.843

LOAN FUNDS

 

 

 

1] Secured Loans

2431.457

2030.769

1622.437

2] Unsecured Loans

246.027

207.019

129.815

TOTAL BORROWING

2677.484

2237.788

1752.252

DEFERRED TAX LIABILITIES

153.811

138.189

123.171

 

 

 

 

TOTAL

3536.318

2999.284

2425.266

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1053.362

1069.409

981.512

Capital work-in-progress

411.385

1.476

48.332

 

 

 

 

INVESTMENT

87.867

77.364

11.216

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1269.443
974.746
643.566

 

Sundry Debtors
1354.682
1368.731
786.447

 

Cash & Bank Balances
206.000
187.390
140.757

 

Other Current Assets
0.000
0.000
0.000

 

Loans & Advances
903.928
632.231
755.648

Total Current Assets
3734.053

3163.098

2326.418

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditor
1538.608
1119.505
786.780

 

Other Current Liabilities
0.000
0.000

0.000

 

Provisions
215.963
192.558
155.432

Total Current Liabilities
1754.571
1312.063
942.212

Net Current Assets
1979.482
1851.035
1384.206

 

 

 

 

MISCELLANEOUS EXPENSES

4.222

0.000

0.000

 

 

 

 

TOTAL

3536.318

2999.284

2425.266

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

7812.605

5930.097

6308.402

 

 

Other Income

17.767

17.524

22.338

 

 

TOTAL                                    

7830.372

5947.621

6330.740

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials and other expenses

7593.833

5721.770

6037.407

 

 

Exceptional Items Profit / Loss

12.696

8.573

72.210

 

 

TOTAL                                    

7606.529

5730.343

6109.617

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

223.843

217.278

221.123

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

85.788

81.333

72.502

 

 

 

 

 

 

PROFIT BEFORE TAX

138.055

135.945

148.621

 

 

 

 

 

Less

TAX                                                                 

44.622

51.017

53.541

 

 

 

 

 

 

PROFIT AFTER TAX

93.433

84.928

95.080

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

333.484

269.883

196.303

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

10.500

10.200

11.500

 

 

Interim dividend Paid

5.000

0.000

0.000

 

 

Corporate Tax on Interim Dividend Paid

0.850

0.000

0.000

 

 

Proposed Dividend

5.000

10.000

10.000

 

 

Corporate Tax on Dividend

0.531

1.126

0.000

 

BALANCE CARRIED TO THE B/S

405.036

333.485

269.883

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

319.020

185.719

377.017

 

TOTAL EARNINGS

319.020

185.719

377.017

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

1213.546

649.208

708.571

 

TOTAL IMPORTS

1213.546

649.208

708.571

 

 

 

 

 

 

Earnings Per Share (Rs.)

18.69

16.98

19.02

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2011

Type

 

 

1st Quarter

Net Sales

 

 

2688.690

Total Expenditure

 

 

2560.470

PBIDT (Excl OI)

 

 

128.220

Other Income

 

 

0.500

Operating Profit

 

 

128.720

Interest

 

 

66.330

Exceptional Items

 

 

0.000

PBDT

 

 

62.390

Depreciation

 

 

22.260

Profit Before Tax

 

 

40.130

Tax

 

 

13.880

Provisions and contingencies

 

 

0.000

Profit After Tax

 

 

26.250

Extraordinary Items

 

 

0.000

Prior Period Expenses

 

 

0.000

Other Adjustments

 

 

0.000

Net Profit

 

 

26.250

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
1.19
1.43

1.50

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
1.77
2.29

2.36

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
2.88
3.21

4.49

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.20
0.22

0.27

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
6.29
5.70

4.90

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
2.13
2.41

2.47

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY:

 

Engaged in the manufacture of rolled steel products, National Engineering Company was incorporated in 1974, in Calcutta, by a Jullunder-based businessman. The company implemented a modernisation-cum-expansion project to increase the operating capacity from 21,750 tpa to 48,000 tpa to finance which, it came out with a public issue in Jul.'94. The expansion project was operational since Jan.'95. The company diversified into plastics manufacturing for which it considered a merger proposal, whereby, Tulsyan Synthetics Private Limited, a Bangalore-based group company merged with the company. During 1995-96, the company increased the installed capacity of M S Ignots from 8898 MT to 48000 MT, and that of Synthetic division from 4800 TPA (about 45 million bags) to 7200 TPA (about 66 million bags). The company has also installed wind power generators in Coimbatore thereby increasing the wind farm capacity to 1000 KW.

 

In 1998-99 company increased its installed capacity of HDPE/PP/Woven Sacks and Fabric from 6558 MT to 8558 MT. In 2000 the HDPE/PP woven sacks was expanded to 114514 MT. It is also planning to increase the capacity of Steel by installting one more plant in Gummudipoondi. In 1999-2000, the company ventured into IT industry by floating Tulsyan Technologies as a subsidiary. The company has started new process called Thermo Mechanically Treated (TMT) for steel rod making.

 

 

OPERATIONS AND OUTLOOK:

 

The Sales and other receipts grew 32.93% YOY to Rs.8431.061 Millions. EBITDA grew by 4.73% YOY to Rs.236.539 Millions and PAT grew by 10.02% YOY to 93.433 Millions. The directors expect a growth of 35% in the top line for the FY 2012.

 

As in the last year during the current year also there were drastic power cuts consequently effecting their costs and also the production. Due to these power cuts they could not utilize their capacities in full thus losing out on economies of large scale production. The 35 MW captive thermal power plant at Gummudipoondi is expected to commence production from June 2012. The company proposes to set up an additional captive Power.

 

Plant of 35 MW capacity, additional Induction furnaces of 4 numbers of 20T each for billet manufacturing with annual installed capacity of 274000 MTPA this will be set up at the new site where the captive power plant of 35MW is under implementation. The company is setting up a Wire Rod and Bundling machine with a coal gasifier at the existing rolling mill division in Gummudipoondi.

 

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE AND DEVELOPMENTS:

 

The Company's products are TMT Bars, Sponge, Billets and Ingots in the steel division and in synthetic division it is PP Woven Sacks, FIBC and Woven Fabric. TMT Bars are used in the Construction Sector and the plastic products cater to the packaging needs of various industries such as Cement, Fertilizers, Food grains, Sugar, etc.

 

 

The raw materials for Steel Making are M.S. scrap, Sponge and for TMT Bars is Billets. PP granules is used for manufacture of plastic packaging products. This raw material is available in abundance within the country and can also be freely imported. Being in the commodity market the company is continuously making efforts for reducing the cost of production to sustain its margins.

 

 

SEGMENT-WISE/PRODUCT-WISE:

 

The production of steel rods was 174290 MT compared to 155544 MT in the previous year. The sale of rods during the year was 176603 MT compared to 143362 MT in the previous year.

 

The production of synthetic products was MT compared to 11464 MT in the previous year. The sale of synthetic products during the year was 11013 MT compared to 11101 MT in the previous year

 

 

FUTURE OUTLOOK:

 

With various infrastructure facilities coming up both in private and public sectors including nuclear power and water, across the country, the management envisages huge demand for its products especially steel. The company has emerged stronger in the last three four years and is well set to capitalize on growth prospects as they arise. The main Raw Material for our Steel making is Scrap / Sponge Iron and Power. MS Scrap is being imported from various countries all across the globe; sponge iron is being supplied by our subsidiary company M/s. Chitrakoot Steels and Power Private Limited. The other major cost is power which cost the company is aiming to reduce by installing a 35MW thermal Power plant at Gummudipoondi. During the current year your company is planning to set up an additional captive Power Plant of 35 MW capacity, additional Induction furnaces of 4 numbers of 20 T each for billet manufacturing with annual installed capacity of 274000 MTPA this will be set up at the new site where the captive power plant of 35 MW is under implementation. The company is setting up a Wire Rod and Bundling machine with a coal gasifier at the existing rolling mill division in Gummudipoondi.

 

 

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

 

Turnover for the year amounted to Rs.8431.062 Millions as against Rs.6342.039 Millions for the previous year showing a increase of 32.93% over the last year. The profit during the year, after tax was Rs.93.433 Millions  as against Rs.84.925 Millions last year, indicating an increase of 10.02%.

 

 

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.

 

Particulars

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

 

 

 

Guarantees Outstanding

14.238

13.388

FLC with Bank

481.367

--

Entry Tax

8.044

8.044

Excise Duty

0.996

0.996

 

 

 

 

 

The Company has executed (during the year 2009-10) Corporate Guarantee in favour of the Shamrao Vithal Co- operative Bank Limited, Mumbai for the loan taken by M/s. Chitrakoot Steel and Power Private Limited, wholly owned subsidiary of the Company, for Rs.200.000 Millions.

 

 

FIXED ASSETS

 

·         Land

·         Leasehold Land

·         Factory Buildings

·         Office Premises

·         Plant and Machinery

·         Works Equipments

·         Lab Equipments

·         Office and Other Equipments

·         Vehicles

 

 

WEBSITE DETAILS:

 

PROFILE:

 

Established in 1947, Subject is an ISO 9001-2000 Certified Company with a turnover of 7000.000 millions. The company has operations in Steel Manufacturing, HDPE/PP Woven Sacks, Power and Information Technology.

 

Tulsyan NEC Steel is one of India's leading manufacturers of Thermo Mechanically Treated (TMT) Bars. The company was initially known as the National Engineering Company until the early 90s, when it was renamed Company. Company is listed on the Indian stock exchange.

 

Technology, quality and cost are three key focus areas for Company. Every TMT Bar that rolls out of the plant bears the stamp of quality on it. Company has been awarded the ISO and IS 1786/ 1985 certification in recognition of its pursuit of quality. Company Steel is registered with the Bureau of Indian Standards, and each TMT Bar is accompanied by a BIS Test Certificate.

 

 

 

 

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 :

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.47.47

UK Pound

1

Rs.74.96

Euro

1

Rs.65.79

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--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

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

51

 

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.