Press Release March 22, 2024 TULSYAN NEC LIMITED Rating Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Non Convertible Debentures (NCD)	269.00	Not Applicable | Withdrawn	-
Total Outstanding	0.00	-	-
Total Withdrawn	269.00	-	-

Rating Rationale

­Acuité has withdrawn the long-term rating on the Rs.269.00 Cr. of Proposed Non Convertible Debentures of Tulsyan NEC Limited.(TNECL). The same is withdrawn without assigning any rating as the Instrument is proposed facility. The rating is being withdrawn on account of the request received from the company as per Acuité’s policy on withdrawal of ratings as applicable to the respective facility/instrument.

About the Company

­Tulsyan NEC Limited Incorporated in the year 1947 by Mr. Sanjay Tulsyan Located at Bangalore, under the name National Engineering Company Limited (NECL), the company was taken over by the Tulsyan group of companies in 1986. In the year 1996, Tulsyan Synthetics Limited, a group company was merged with the NECL and the name of the company was changed to Tulsyan NEC Limited (TNECL) with effect from August 1996. TNECL is one of the major manufacturers of thermo mechanically treated (TMT) bars and billets in South India. It is also a large manufacturer of High Density Poly Ethylene (HDPE)/ Poly Propylene (PP) sacks and Flexible Intermediate Bulk Containers (FIBC) in the region. The operation of the company is divided into three divisions viz. Steel division, Synthetics division and Power division. Currently the company is managed by Mr. Sanjay Tulsyan, Mr. Sanjay Agarwalla, Mr. Manogyanathan Parthasarathy, Mr. Antonisamy Axilium Jayamary, Mr. Somasundaram Ponsing Mohan Ram, Mr. Lalit Kumar Tulsyan, Mr. Ravi Muthusamy and Mr. Subramanian Chandrasekaran.

Unsupported Rating

­Not Applicable

Analytical Approach

­­Not Applicable

Key Rating Drivers

Strengths

­­Not Applicable

Weaknesses

­­Not Applicable

Rating Sensitivities

Not applicable

Liquidity Position

­Not applicable

Outlook

­Not applicable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	950.47	752.32
PAT	Rs. Cr.	247.93	789.95
PAT Margin	(%)	26.08	105.00
Total Debt/Tangible Net Worth	Times	0.85	3.74
PBDIT/Interest	Times	20.64	163.82

Status of non-cooperation with previous CRA (if applicable)

­ Not Applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Entities In Manufacturing Sector:- https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisa"on of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow pa&erns, number of counterpar"es and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Ra"ng Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 23 Mar 2023 Proposed Non Convertible Debentures Long Term 269.00 ACUITE C | Not Applicable (Assigned)

­

Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Not Applicable Not avl. / Not appl. Proposed Non Convertible Debentures Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 269.00 Simple Not Applicable|Withdrawn

Contacts

Analytical Details	Contact Details
Mohit Jain Senior Vice President - Rating Operations Tel: 022–49294017 mohit.jain@acuite.in Thejaswini P V Senior Analyst - Rating Operations Tel: 022-49294065 thejaswini.pv@acuite.in	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in Tel: 022-49294011 rating.desk@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.