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  • 8/8/2019 Bpsm Assignment Prashant


  • 8/8/2019 Bpsm Assignment Prashant


  • 8/8/2019 Bpsm Assignment Prashant


    3 | P a g e

    I ndex

    S r. no Particulars Page No.

    1 Company Profile 4

    2 SWOT Analysis 7

    3 Business Performance 8

    4 Stock Analysis 8

    5 Graphical Representation 14

    6 Corporate Governance 11

    7 Corporate Social Responsibility 15

    8 Bibliography 17

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    Tamilnadu Petroproducts Limited (TPL), a corporate star, was born in the year 1984

    with the objective of setting up a 50,000 MTA Linear Alkyl Benzene (LAB) project. TPL has

    since imprinted winning hall marks successively over the years in Corporate India and

    the Petrochemical I ndustry in particular. Over more than a decade, TPL grew in strength,

    thinking differently, harnessing the resources by laying a fundamental platform for financial

    strength and responding to customers innovatively by bringing in new products and services.

    TPL has surged ahead with laurels for a challenging & promising future, carrying the

    business commitment of the promoters, M/s. SPIC Limited, who have diverse interest in

    fertilizers, petrochemicals and other services and Tamilnadu Industrial DevelopmentCorporation Limited (TIDCO), a State Govt. enterprise, with prime interest in promoting

    industries in the State of Tamilnadu. SPIC its boasts of a turnover close to US $ 800 million and

    has been the principal force in TPL achieving corporate leadership in detergent business.

    By 20 15,to be the most prefered chemicalcompan y commited to stake holders andstakeholders care for the societ y.


    To achieve and maintain the higest attainablelevel of performance .Consistenc y with integrit y in terms of qualit y,productivit y, safet y and management practicesHave a significance presence in Internationalmarket .


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    The LAB plant is located in the Manali Industrial Belt, 25 KMs away from Chennai

    City. The various infrastructure facility at Manali, the advantages of a Metropolitan city, hi-tech

    communication interface and cosmopolitan culture, synergise with the vision of promoters

    business plans.

    TPL continues to march ahead excellent track record and its achievements in a short

    time frame stand out distinctly, propelled by continuous upgradation of technology, quality

    human resource and utmost customer satisfaction.

    Conceived in the early 80's, the genesis of Linear Alkyl Benzene (LAB) project by

    Tamilnadu Petroproducts Limited (TPL) could be traced back to the Promoter's vision to

    propel the growth of environmental friendly and bio-degradable detergents in India serving asan import substitution product. The emerging economic environment in India offered a very

    high potential for newer petrochemical business, especially in the area of business focused on

    consumer requirements in the country.

    Incorporated in year 1984, TPL as part of its initial pre-project activities, worked

    towards identifying suitable location, obtaining necessary governmental clearances, sourcing

    of right technology, typing up of feedstock and other raw materials and further executing

    necessary technology / feedstock agreements. TPL commissioned the LAB Project

    successfully in April 1988 in a record 22 months from the time of financial closure.

    In 1989 a Modern Define Unit, the first of its kind in Asia with UOP know-how was

    installed to improve the quality to adhere to global standards.

    In the year 1990, a 15,000 MTPA Heavy Normal Paraffin unit was commissioned to

    cater to the requirements of Chlorinated Paraffin Wax (CPW) manufacturers. CPW finds

    extensive application in Synthesizing Plasticisers.

    In a couple of years time in 1992, TPL'S LAB Plant was the first in the world to

    implement Advanced Process Control in association with M/s. Setpoint, USA., increasing the

    LAB capacity level to 85,000 MTPA. TPL's LAB plant has since evolved itself as a role model

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    plant in the LAB ind

    During the year 1995, TPL diversified into manufacture of Epichlorohydrin (ECH), a

    key raw material for producing Epoxy Resins. Further during year 2000, TPL as part of

    consolidation of ECH business acquired a 150 MTPD Caustic Soda / Chlorine a plant which

    uses the latest Membrane, cell process.

    In line with the changes required to envision and remain with the time, TPL has

    committed itself to adopting the state of the art technology. During the year 2001, TPL

    achieved a capacity of 100,000 MTPA of LAB and further is in an advanced stage of enhance

    the LAB capacity to 120,000 MTPA in the year 2003-04. The vision to grow and maintain

    leadership in this business is a silver lining to its business philosophy.

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    Ratio Analysis:-

    Key F inancial Ratios of TamilnaduPetroproducts ------------------- in Rs.

    C r. -------------------

    Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

    I nvestment Valuation RatiosFace Value 10.00 10.00 10.00 10.00 10.00

    Dividend Per Share 1.00 -- -- -- 0.50

    Operating Profit Per Share(Rs)

    6.14 3.92 1.94 4.97 6.28

    Net Operating Profit Per Share (Rs)

    90.88 91.93 86.72 104.49 100.60

    Free Reserves Per Share (Rs) 30.80 29.57 28.23 28.96 --

    Profitability RatiosOperating Profit Margin(%) 6.75 4.26 2.23 4.75 6.24

    Gross Profit Margin(%) 4.71 1.91 -1.97 1.28 2.83

    Cash Profit Margin(%) 4.94 2.64 0.76 3.18 4.55

    Net Profit Margin(%) 0.24 -1.32 -1.51 0.69 1.17

    Return On CapitalEmployed(%) 3.76 1.38 -1.59 3.73 6.19

    Return On Net Worth(%) 0.55 -3.10 -3.45 1.86 2.85

    Liquidity And S olvencyRatiosCurrent Ratio 0.63 0.54 0.50 0.55 0.96

    Quick Ratio 0.48 0.39 0.46 0.51 0.59

    Debt Equity Ratio 0.67 0.60 0.55 0.43 0.48

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    Long Term Debt Equity 0.52 0.44 0.38 0.26 0.48

    Management Efficiency Ratios

    Inventory Turnover Ratio 7.56 8.42 33.05 25.99 10.75

    Debtors Turnover Ratio 12.88 12.72 14.27 18.02 15.69

    Investments Turnover Ratio 11.75 13.14 33.05 25.99 10.75

    Fixed Assets Turnover Ratio 1.68 1.78 0.63 0.79 0.73

    Total Assets Turnover Ratio 1.33 1.45 1.46 1.87 1.62

    Number of Days In WorkingCapital -17.25 -29.25 -34.02 -18.08 -3.77

    Profit & Loss Account RatiosMaterial Cost Composition 53.11 56.57 59.54 59.07 55.04Imported Composition of Raw Materials Consumed 36.34 28.09 0.37 12.39 21.40

    Selling Distribution Cost

    Composition10.95 13.33 7.99 9.50 --

    Expenses as Composition of Total Sales 11.62 7.34 5.83 5.98 7.94

    Earnings Per Share 0.23 -1.23 -1.32 0.73 1.20Book Value 40.85 39.62 38.28 39.00 41.91

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    C omments:

    1. Investment valuation ratios:a. Face is constant for last five years i.e. Rs. 10

    b. Company has not given any dividend four last four years but it has declared dividendof 50% in last year,

    c. Operating profit if showing increasing trend over the period of five years.

    2. Profitability ratios:These ratios showing upward trend from 07-08 as the company has incurred

    increase in revenue as well as profit margins. Hence we can say that after therecession company is on growing path.

    3. Liquidity And Solvency Ratios:

    Current liabilities are decreasing from last five years and debt to equity ratio has been decreasing as the long term debt is falling considerably.

    4. Management efficiency ratios :As all the turnover ratios are within ideal range we can conclude that

    management is working efficiently and investors can consider this company as goodinvestment option.

    5. Profit and loss account ratios:Earning per share is at 1.2 only for the year 09-10 which is matter of concern for

    the equity share holders hence it will profitable if they invest in other stock options wherethey can get higher returns .

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    S tock Analysis

    G raphical Representation

    Date Open High Low Close Volume2002 16.75 19.75 16.6 18.6 3007802003 18.7 20.1 19.3 20.05 99327

    2004 21.5 24.2 21 23.65 146682

    2005 23.4 21.5 19.6 21.3 60089

    2006 20 21.35 19.7 21.1 630453

    2007 21.2 16.7 15.85 16.4 283084

    2008 16.6 15.9 14.6 14.9 298439

    2009 14.4 9.4 8.12 8.44 625002010 8.3 19 16 18.7 424276



    1 0



    2 5


    20 02 2003 2 00 4 2 00 5 20 0 6 20 0 7 20 0 8 200 9 20 1 0

    Op e



    C e

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    C orporate G overnance

    Tamilnadu Petroproducts Limited ("the Company") is conscious that businesses run on

    principles of fairness, transparency and accountability aids in fostering a healthy relationship

    with all stakeholders. The Company considers ethical conduct of business as one of the most

    important factors which will contribute to fulfillment of the Company's corporate objectives.

    The Company's Code of Conduct envisages that every Member of the Board of Directors,

    individually and, the Board of Directors, collectively, will, at all times, pursue and uphold ethical

    standards and values as vigorously as their pursuit of the Company's business objectives. In line

    with these principles, the Board of Directors of the Company has adopted this Code as a guide to

    the high ethical standards and values expected from its Members. Any change in this code will

    be made only with the approval of the Board of Directors of the Company.

    The C ode

    In discharge of their functions as Members of Board and Board Committee(s), all Directors shall:

    y Take necessary efforts to prepare for, attend and actively participate in meetings of the

    Board of Directors and of the Board Committees of the Company, on which they serve;

    y Become familiar with the Company's business and the economic & competitive

    environment in which the Company operates;

    y Discharge their duties, in the best interests of the Company and all its stakeholders;

    y Inform the Board of Directors of any change in their employment and other Board

    positions; of conditions that may interfere with their ability to perform their duties or

    whether they meet the requirements applicable to their service on the Company's Board

    of Directors and Board Committees as per the Companies Act, 1956 and the Listing

    Agreement entered into by the Company with the National Stock Exchange of India,

    Bombay Stock Exchange Ltd. and Madras Stock Exchange Ltd;y Not to pursue for their own account, or for the account of any other person, any business

    opportunity that conflicts with the Company's business strategies, plans or objectives;

    y Maintain confidentiality about the Company and its business affairs in respect of all non-

    public information; and

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    y Abide by all applicable laws and regulations;

    In addition, the Whole-time Directors of the Company will also be bound by the Code of

    Conduct prescribed for the Senior Management of the Company.

    C ode of C onduct for S enior Management of the C ompany

    O bjective

    Tamilnadu Petroproducts Limited ("the Company") is conscious that businesses run on

    principles of fairness, transparency and accountability aids in fostering a healthy relationship

    with all stakeholders. The Company considers ethical conduct of business as one of the most

    important factors which will contribute to fulfilment of the Company's corporate objectives.

    This Code of Conduct will be applicable to the CEO/COO [Managing Director(s)],CFO [Finance

    Director(s)], other Whole-time Directors, Head(s) of Strategic Business Units and Head(s) of

    Business Process.

    The Company's Code of Conduct envisages that every constituent of the Senior Management

    individually and collectively, will, at all times, pursue and uphold ethical standards professional

    integrity and values while working in office and also in other places while representing the

    Company in discharge of their duties.

    Any change in this Code will be made only with the approval of the Board of Directors of the


    The C ode

    Under this Code, constituents will:

    y Devote, in consideration of employment with the Company, their full attention to the

    business interests of the Company and not engage in any activity that interferes with their

    performance or responsibilities of the Company, or is otherwise in conflict with or

    prejudicial to the Company.

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    y Act with honesty and integrity, without compromising on ethics, actual or apparent

    conflicts of interest between their personal interests and their responsibility to the


    y Make total, fair, correct and timely disclosure in all reports and documents that the

    Company files with or submits to its stakeholders, government authorities, stock

    exchanges, statutory authorities or otherwise makes public.

    y Act on good faith, responsibly, with due care, competence and diligence, without

    misrepresenting material facts or allowing their independent judgment to be sub-

    ordinated in any manner whatsoever.

    y Respect the confidentiality of information acquired during the course of their

    work/discharge of their duties except when authorised or otherwise legally obligated to

    disclose and not use such confidential information to their personal advantage and ends.y Under no circumstances accept any gift, or anything of value from customers, suppliers,

    contractors, competitors, or other persons dealing with the Company, that is perceived as

    intended, directly or indirectly, to influence any business decision. However, gifts as a

    token on celebratory occasions and entertainment, provided they are not excessive, would

    not violate this policy. Gifts given on behalf of the Company to customers, suppliers,

    contractors, should be appropriate to the occasion, and should not be of a kind that could

    create an appearance of impropriety.

    y Not to exploit the opportunities that are discovered through the use of corporate property,

    information or position for personal gain without referring to the Company.

    y Update knowledge of the legal requirements relating to their functions and ensure


    y Educate other colleagues of the importance of adherence to this Code.

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    C orporate S ocial Responsibility

    CS R activities:

    Safety first is an internalized philosophy with every employee in day-to-day operations at TPL.Safety as the lifeline of work culture is more than a practice in the company. TPL has won the

    British Safety Council 'Sword of Honour' in appreciation of its overall safety performance and

    that too in a record time of within five years of commencing operations. The new heights of

    safety were conquered when the 5 Star British Safety council Award came to its fold after a

    stringent audit by the Council.

    TPL has also won several other awards, reinforcing its philosophy of internalizing safety

    measures matching the national and international safety norms.

    H ealth

    TPL's concern for life science and its relevance to employees associated with it are the theme

    behind its health care philosophy. Believing strongly in health care and to usher in a safe

    working environment and physical and mental fitness to employees, it has designed and

    implemented intensive health are programmes. Frequent clinical health audit programmes, yogafor employees, meditation after working schedule in calm surrounding have taken TPL to the

    new horizons of people's involvement.

    Environment Protecting Tomorrows W orld

    TPL has designed its business programmes beginning from creating a friendly and safe

    environment. The endeavors in environment protection, in addition to providing a safe

    surrounding, also dovetail with national agenda of economic development. In its efforts toconserve the environment, TPL is consistently working on minimizing pollution and waste

    generation by improving source designs and adapting new technologies. TPL's environmental

    concern entails sourcing non-conventional energy for higher efficiency, and in the process

    develop a greener environment. TPL's foray into the new century is a culmination of

    commitment and service adopting newer environment friendly technologies. TPL has achieved

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    ISO 14001 Certification for its LAB & Heavy Chemical plants in line with its Vision, to promote

    a cleaner environment. TPL feels proud of its product reaching billions of people for their

    hygiene requirements in day-to-day life.

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    B ibliography

    W ebsite :


    B ook and Reports :

    Top 500 companies in India Latest edition 2009 Annual Reports of Tamilnadu Petrochemical Limited.