Attachment 1
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Report
Update On |
10th April, 1999 |
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Report on (correct name) |
PSL INTERNATIONAL LIMITED |
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Registered Office |
Kachigam, Post Box No. 25, Daman (Union Territory) 396 210, INDIA |
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Tel. No. |
91-2636-529 89 / 522 48 |
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Fax No. |
91-2636-524 56 |
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E-Mail |
-- |
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Telex |
-- |
Attachment 2
S U M M A R Y
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Incorporated |
1987 |
Status |
Moderate |
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Registration No. |
28991 |
Chief Executive |
Mr. Ashok Punj |
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Capital (Rs.) |
111.046 millions |
Payments |
Slow |
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Sales (Rs.) |
408.546 millions |
Litigation |
-- |
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Net Worth (Rs.) |
540.122 millions |
Banking Reputation |
Satisfactory |
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No. of Employees |
400 |
Auditors |
Mathur & Company |
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Credit Rating |
Ba (See attachment 3) |
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INDUSTRY
The much-talked about decline
in growth sector is the outcome of a combination of factors affecting industry
competitiveness and end user industry growth. The inverted duty structure (raw
materials such as steel plates are at 30% while finished products are at 20%
customs duty) alongwith special custom duty status for project impars in major
end use sectors such as oil refining and fertilizer have hit the industry hard.
Part of the problems is also due to the inability to offer financing options to
the end use sectors.
The investments
planned in the ninth plan for oil refining and fertilizer sectors are Rs.50-60
and Rs.10-15 billions respectively. If
the domestic industry is not made competitive, there is a good chance that
their order book position will wersen and imports would increase. Key end use
sectors such as process industry, textiles and cement are witnessing sluggish
growth and threat of imports.
Poor investments in
power transmission and distribution sectors have resulted in the poor
performance of transformer manufacturers. The fortunes of engineering industry
other than capital goods has been hit by the recent decline in the growth of
the automobile sector, a major end use segments of bearings and machine tools.
The machine tool and bearings sectors are also witnessing significant import
threats.
************************
FORMERLY KNOWN AS
PSL PIPE COATERS LIMITED
FACTORY / WAREHOUSE
K No. 22, Vaiyavur Village, Madhuranthakam, Taluk, District Kacheepuram 603 308, Tamilnadu, INDIA
Tel. No. 91-4115-752 94 / 752 95
Fax No. 91-4115-752 93
K East of National Highway, No. 8-A, Post Box No. 100, Kandla Road, Gandhidham 370 201, Gujarat, INDIA
Tel. No. 91-2836-318 52 / 321 98 / 340 28
Fax No. 91-2836-330 42
K Nanichirai Village, Bhachau Taluk, Dist. Kutch 370 140, Gujarat, INDIA
BRANCH
K 307-319, Vardhaman Chambers, Sector 17, Navi Mumbai 400 705, INDIA
K N-161, 4-5th Floor, Thapar House, Gulmohar Enclave, Commercial Complex, New Delhi 110 049, INDIA
Tel. No. 91-11-685 9813 / 685 9814
Fax No. 91-11-685 9813 / 685 9814
K B-96, Greater Kailash I, New Delhi 110 048, INDIA
Tel. No. 91-11-643 4712 / 642 8290 / 642 4167
Fax No. 91-11-643 5745
HISTORY
The company was incorporated on 24th August, 1987 at New Delhi as a Private Limited Company under the name and style of PSL PIPE COATERS PRIVATE LIMITED. The company was converted to a Deemed Public Limited company w.e.f. 8th June, 1994 and the name was subsequently changed to present w.e.f. 8th June, 1995.
The Company Registration Number is 28991.
The registered office of the company was shifted from Delhi to Daman in January, 1998.
LEGAL FORM
The Company Registration Number is 28991.
DIRECTORS/PARTNERS/SOLE PROPRIETOR
|
Mr. Y. P. Punj |
Chairman |
|
Mr. Ashok Punj |
Managing Director |
|
Mr. Murli Manohar Mathur |
Director |
|
Ms. Devki Nandan Sehgal |
Director |
PARTICULARS OF CHIEF EXECUTIVE
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Name |
Mr. Ashok Punj |
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Designation |
Managing Director |
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Address |
9, Tolstoy Marg, New Delhi 110 001, INDIA |
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Year of Birth |
1949 |
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Qualification |
M. S. Engg. (IIT.), U.S.A. |
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Experience |
26 years |
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Previous Employment |
Lloyd Insulations (India) Private Limited Director |
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Other Directorships |
PSL Engineering Private Limited PSL Corporation Control Services Private Limited Punj International Private Limited Fedders Lloyd Corporation Limited PSL Holdings Private Limited Lloyd Systems Private Limited Eurocoustic Products Private Limited Lloyd Electric & Engineering Private Limited |
MAJOR SHAREHOLDERS
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Name
of Shareholder |
No. of Shares |
Percentage |
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Ashok
Punj |
565,480 |
20.36% |
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Sandhya
Punj |
146,480 |
5.28% |
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Y.
P. Punj |
645,400 |
23.25% |
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Punj
International Private Limited |
200,000 |
7.20% |
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Lloyd
Systems Private Limited |
264,000 |
9.51% |
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HBSC
(Agency) Private Limited |
650,000 |
23.41% |
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Punj
Family |
304,800 |
10.99% |
BUSINESS
The company is engaged in undertaking of weight coating of pipelines & anodes including anti-corrosion treatment.
The company imports its requirements from Germany.
The companys customers includes of Manufacturers and Government Bodies.
The company sells its products against contract, credit of 45 90 days.
Some if the major customers of the company are :
K Gas Authority of India Limited
K Oil & Natural gas Corporation Limited
K Indian Oil Corporation Limited
K Oil India Limited
K Engineers India Limited
K Reliance Petroleum Limited
K Bharat Petroleum Corporation Limited
K Hindustan Petroleum Corporation Limited
K Gujarat Water Supply Corporation
The company operates from a caption owned residential office premises of 3,000 sq.ft. The head office of the company is leased and it measures about 5,000 sq.ft. The factory premises situated in a rural area is owned by the company.
The company employs 400 persons comprising of Office Staff, Plant Workers, Sales Staff and Others.
ASSOCIATES
K PSL Engineering Private Limited
K Fedders Lloyd Corporation Limited
K Punj International Private Limited
K PSL Holdings Private Limited
K Lloyd Electric & Engineering Private Limited
K Lloyd Sales Private Limited
K Broken Hills Industries Private Limited
BANKERS
K Hongkong & Shanghai Banking Corporation
K ANZ Grindlays Bank plc
K Banque Nationale De Paris
K Times Bank Limited
K Credit Agricole Indosuez
K HDFC Bank Limited
AUDITORS
K Mathur & Company
Chartered Accountants
New Delhi 110 001, INDIA
FINANCIAL INFORMATION
The company's last available financial information for the 18 months period ended 31st December, 1996 is enclosed herewith.
CAPITAL STRUCTURE
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Authorised Capital : |
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25,000,000 |
Equity Shares of Rs.10/- each |
Rs.250.000 millions |
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Issued, Subscribed &
Paid-up Capital : |
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11,104,640 |
Equity Shares of Rs.10/- each |
Rs.111.046 millions |
COMMENTS
Subject is a part of Punj Group, whose Broken Hills Industries Limited is in financial difficulties. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are reported as fair. Payments are reported slow but correct.
The company can be considered for your proposed business dealings of US$ 565,000 against D/A or D/P terms.
No clean credit may be granted, initially.
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IMPORTANT FINANCIAL
INFORMATION FOR Three PERIODS
[figures are in Rupees Millions]
|
PARTICULARS |
31.12.1996 (18 mnth) |
30.06.1995 (15 mnth) |
31.03.1994 (12 mnth) |
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Sales Turnover |
408.546 |
672.633 |
384.511 |
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[including other income] |
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Profit/(Loss) Before Tax |
67.349 |
144.439 |
116.139 |
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Provision for Taxation |
0.625 |
28.600 |
5.000 |
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Profit/(Loss) After Tax |
66.724 |
115.839 |
111.139 |
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Export Earnings |
44.500 |
587.400 |
261.100 |
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Imports |
62.000 |
112.400 |
161.300 |
ABRIDGED BALANCE SHEET AS ON
31ST DECEMBER, 1996
[figures are in Rupees Millions]
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SOURCES OF FUNDS |
31.12.1996 (18 mnth) |
30.06.1995 (15 mnth) |
31.03.1994 (12 mnth) |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
111.046 |
111.046 |
27.762 |
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2] Reserves & Surplus |
429.076 |
372.069 |
341.110 |
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LOAN FUNDS |
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1] Secured Loans |
110.744 |
0.000 |
4.550 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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GRAND TOTAL
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650.866 |
483.115 |
373.422 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
43.661 |
54.161 |
66.897 |
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Capital work-in-progress |
202.268 |
51.566 |
0.000 |
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INVESTMENTS |
74.743 |
57.303 |
28.601 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
34.422 |
141.990 |
468.477 |
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Sundry Debtors |
104.844 |
1.957 |
116.740 |
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Cash & Bank Balances |
72.729 |
150.415 |
174.636 |
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Loans & Advances |
172.419 |
194.037 |
176.706 |
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Total Current Assets |
384.414 |
488.399 |
936.559 |
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Less : |
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Current Liabilities |
50.823 |
131.150 |
648.092 |
Provisions |
3.401 |
37.172 |
10.552 |
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Net Current Assets |
330.190 |
320.077 |
277.915 |
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MISCELLANEOUS EXPENSES |
0.004 |
0.008 |
0.009 |
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GRAND TOTAL
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650.866 |
483.115 |
373.422 |
Attachment 3
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SCORE SHEET |
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SCORE |
CREDIT RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the
strongest capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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. Maybe drawn to slightly difficult position as
unfavourable conditions arise. Minimal assurance for timely payment on
interest and principal sums |
Moderate |
|
26-40 |
B |
Unfavourable & favourable factors carry similar
weight in credit consideration. Capability to overcome financial difficulties
seems comparatively limited or considered not known. Capability to pay both
interest and principal sums is doubtful |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit
not recommended |
Attachment 4
INDIA
In 1998, the Hindu-nationalist party, the BJP was elected and formed a new Government. Soon after, however, both India and Pakistan conducted nuclear tests and tension in Kashmir grew. 1999 is not likely to be much calmer with regard to neighbouring Pakistan, but it is believed that the tensions will be more loud than physical in nature. India is growing at a healthy 5% pace and is expected to continue its level for the coming year. Inflation has been high however and was 16.3% for the year, as of the end of September, 1998. 1999 inflation is expected to be reduced to 9.3%, still high. Foreign reserves have grown by $2.1 billion to $26.5 billion as of November, in comparison to one year earlier. The trade deficit and current account balance remain in red.
Ranked among the ten most corrupt nations in the world, the parallel economy is conservatively estimated to be Rs.300,000 millions roughly equal to the Gross Domestic Product.
LEADING EONOMIC INDICATORS
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Outstanding As On |
% Variation Over |
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Banking, M3 & Forex (Rs. mlns.) |
Feb. 26, 1999 |
End-March 1998 |
Financial Year So Far |
Year Ago |
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1997-98 |
1998-99 |
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Aggregate Deposits |
6,983,380 |
6,054,100 |
15.3 |
15.3 |
19.8 |
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Demand Deposits |
1,029,500 |
1,025,130 |
0.2 |
0.4 |
13.4 |
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Time Deposits |
5,953,880 |
5,028,970 |
18.7 |
18.4 |
20.9 |
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Investments |
2,519,660 |
2,187,050 |
12.3 |
15.2 |
17.7 |
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Government Securities |
2,203,170 |
1,869,570 |
14.2 |
17.8 |
21.4 |
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Other Approved Securities |
316,490 |
317,480 |
2.7 |
-0.3 |
-2.3 |
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Bank Credit |
3,547,420 |
3,240,790 |
12.4 |
9.5 |
13.3 |
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Food Credit |
167,320 |
124,850 |
62.4 |
34.0 |
35.6 |
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Non-food Credit |
3,380,110 |
3,115,940 |
11.0 |
8.5 |
12.4 |
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Money Supply M3 (Feb. 26, 1999) |
9,455,060 |
8,253,890 |
13.4 |
14.6 |
18.8 |
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Net Bank Credit to Government |
3,868,200 |
3,306,190 |
11.4 |
17.0 |
20.3 |
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Reserve Bank Credit to
Government |
1,543,690 |
1,351,600 |
5.1 |
14.2 |
18.3 |
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Bank Credit to Commercial
Sector |
4,651,290 |
4,321,900 |
11.8 |
7.6 |
10.6 |
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FOREX (US$ mln.) March 19, 1999 |
312,350 |
293,670 |
7.0 |
6.4 |
10.5 |
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Foreign Currency Assets |
282,560 |
259,750 |
11.1 |
8.8 |
13.7 |
FOREIGN INSTITUTIONAL INVESTMENT IN INDIA
|
Financial Year |
Gross Purchases (Rs. mlns.) |
Gross Sales (Rs. mlns.) |
Net Investment (Rs. mlns.) |
|
|
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1992-93 |
175 |
40 |
135 |
|
1993-94 |
55,927 |
4,665 |
51,262 |
|
1994-95 |
76,310 |
28,354 |
47,966 |
|
1995-96 |
96,930 |
27,520 |
69,420 |
|
1996-97 |
155,540 |
69,804 |
85,746 |
|
1997-98 |
186,948 |
127,373 |
59,577 |
|
1998-99 |
161,150 |
176,993 |
-15,844 |
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Total |
732,980 |
434,749 |
298,262 |