MIRA INFORM REPORT

Report Date :

22.03.2007

IDENTIFICATION DETAILS

Name :	PUNJ LLOYD LIMITED
Registered Office :	Punj Lloyd House, 17-18, Nehru Place, New Delhi - 110 019, India
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	26.07.1988
Com. Reg. No.:	55-33314
CIN No.: [Company Identification No.]	U74899DL1988PLC033314
TAN No.: [Tax Deduction & Collection Account No.]	DELP08758B
PAN No.: [Permanent Account No.]	AAACP0305Q
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Undertakes General Construction, Accoustic Jobs, Slipforming and Crosscountry Piping and Gas based Power Plants on Turnkey basis and laying of Optical Fibre Cables.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 42000000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is one of the largest engineering company having satisfactory track. Financials position is satisfactory. Trade relations are fair. Payments are correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long – run.

LOCATIONS

Registered/Corporate Office :	Punj Lloyd House, 17-18, Nehru Place, New Delhi - 110 019, India
Tel. No.:	91 11 2620 0123
Fax No.:	91 11 2620 0111
E-Mail :	info@punjlloyd.com, abhargava@punjlloyd.com
Website :	http://www.punjlloyd.com
overseas representative offices	v Punj Lloyd (Malaysia) Sdn. Bhd., #14-01 B, Keck Seng Tower, 133, Cecil Street, Singapore - 069535 Tel. No. 65-22279130 Fax No. 65-22241078 v PT Punj Lloyd Indonesia Stadion Lebak Bulus, Tribun Timur TS II B, JL. Raya Jagowari, Jakarta - 12440, Indonesia Tel. No. 62-21-27666147 / 178 Fax No. 62-21-2766148
Office	South Asia Banmore Industrial Area, Banmore District Morena 476444 MP India Tel - 91 7532 243644 Fax - 91 7532-243297 1 TV Industrial Estate, S K Ahire Marg Worli, Mumbai 400 025 Tel - 91 22 24924421 Fax - 91 22 24936861 dmankame@punjlloyd.com Asia Pacific Pt. Punj Lloyd Indonesia Ventura Building, 4th Floor, Suite 401B Jl. R A Kartini 26, (T B Simtupang), Cilandak, Jakarta 12430 Indonesia Tel +6221 75 91 4766 Fax +6221 75 914 241 svyas@ptpli.com 25 International Business Park # 04-18/19 German Centre Singapore 609916 Tel +65 6562 9042 / 43 Fax +65 6562 9044 asiapacific@punjlloyd.com Central Asia Punj Lloyd Kazakhstan LLP 206 Zheltoksan Street Almaty 050059 Republic of Kazakhstan Tel +7 3272 777 761 Fax +7 3272 777 767 atulsharma@punjlloyd.com Punj Lloyd – LIMAK JV Mahatma Gandhi Cad. No: 91/9 06700 GOP, Ankara, Turkey Tel +90 312 4466364 Fax +90 312 4466794 ksaha@punjlloyd.com Office 213, Business- center «M-Style Office» 57, 3-rd Pavlovskiy str. Moscow 115 093 Russian Federation Tel/fax +7 495 250 77 69 tarkhanovandrey@punjlloyd.com Middle East PO Box 28907, 1206 Al Gaith Tower Hamdan Street , Abu Dhabi, UAE Tel +971 2 6261604 Fax +971 2 6267789 pllme@punjlloyd.com C/o Eurotec Projects Development PO Box # 22756, Doha, Qatar Tel +974 4366545/4362189 Fax +974 4366525 pllme@punjlloyd.com PO Box 704, Postal Code 133 Al Khuwair, Sultanate of Oman Tel +968 24 597728 Fax +968 24 597493 pllme@punjlloyd.com Europe 32 Harley House Marylebone Road London NW1 5HF UK Tel +44 20 7486 6009 Fax +44 20 7935 5086 info@punjlloyd.com Africa Jamel Ben Amor - Regional Director Maghreb and Africa PO Box 115 Bis- Sidi Abbes, Sfax 3062 Tunisia Tel +21674264514 Fax +21674615191 jbenamor@punjlloyd.com Bin Ashur Area -Said Bin Zayed Street Building No. 3, Apartment No. 1 PO Box 3119, Tripoli, Libya Tel + 218 92 582 4381 Fax + 218 21 363 0080 vminhas@punjlloyd.com
Factory 1 :	v Kalkaji, New Delhi – 110 019 v Punj House, Connaught Circus, New Delhi – 110 001 v Banmore Industrial Area, Banmore, District Morena – 476 444, Madhya Pradesh Tel.: 91-7532-243644 Fax: 91-7532-243297

DIRECTORS

Name :	Mr. Atul Prakash Punj
Designation :	Chairman & Managing Director
Address :	10, Prithviraj Road, New Delhi – 110 011
Date of Birth/Age :	1958
Qualification :	B. Com (Hons)
Experience :	26 Years
Date of Appointment :	01.07.1998
Previous Employment	Own Business
Name :	Mr. Vimal Kishore Kaushik
Designation :	Joint Managing Director & Chief Operating Officer
Address :	S-27/1-D, DLF Qutab Enclave Phase – III, Gurgaon – 122 002, Haryana
Date of Birth/Age :	22.11.1947
Qualification :	B. E. (Elec.)
Experience :	35 years
Date of Appointment :	01.11.1998
Previous Employment	Punj Group
Name :	Mr. Luv Chhabra
Designation :	Wholetime Director
Address :	H-16/4, DLF, Phase – 1, Gurgaon, Haryana
Date of Birth/Age :	48 Years
Qualification :	B. Tech., MBA
Experience :	26 years
Date of Appointment :	01.07.2001
Previous Employment	KEC International Limited
Name :	Mr. Karamjit Singh Butalia
Designation :	Non-executive Director
Name :	Mr. Alain Aboudharam
Designation :	Independent Director
Name :	Mr. Keith Nicholas Henry
Designation :	Independent Director
Name :	Dr. Naresh Trehan
Designation :	Independent Director
Name :	Mr. Rajan Jetley
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Dinesh Thairani
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters	28618899	54.80
Mutual Funds & UTI	933927	1.79
Banks, Financial Institutions, Insurance Companies	349067	0.67
Foreign Institutional Investors	9786623	18.74
Private Corporate Bodies	2038632	3.90
Indian Public	2799866	5.36
NRIs/OCBs	260872	0.50
Others (Including shares in transit)	7431950	14.24
Total	52219836	100.00

BUSINESS DETAILS

Line of Business :	Undertakes General Construction, Accoustic Jobs, Slipforming and Crosscountry Piping and Gas based Power Plants on Turnkey basis and laying of Optical Fibre Cables.
Products :	v Construction and Project Related Activities and Engineering Services v Pressures vessels silencing equipment
Exports :
Countries :	South Korea, Australia and Malaysia
Imports :
Countries :	USA, Japan, UK and Holland
Terms :
Selling :	Contract terms
Purchasing :	Cash, Contract, L/C and Credit (60 days) terms

GENERAL INFORMATION

Customers :

v Abu Dhabi National Oil Company Limited

v Bharat Petroleum Corporation Limited

v Botas

v BTC Company

v British Petroleum

v Chambal Fertilizer & Chemical Limited, India

v Engineers India Limited

v Gas Authority of India Limited

v Gas Transmission Company Limited

v Gujarat Gas Company Limited

v Hindustan Petroleum Corporation Limited

v Petro Kazakhstan

v Hyundai

v ILF Consulting Engineers

v Indian Oil Corporation

v Indian Petrochemicals Corporation Limited

v Kumpunan Juri Teknik Sdn. Bhd.

v McConnell Dowell Indonesia

v Nichimem Corporation

v NKK Corporation

v Oil and Natural Gas Commission

v PDIL

v Pertamina

v Petronet MHB Limited

v Petrosea Engineering and Construction Company

v PT Bouygues Offshore

v PT Trihasra Bimanusa Tunggal

v PT. Perusahaan Gas Negara

v Reliance Industries Limited

v Skoda Export

v Snamprogetti

v Zuari Agro Industries Limited, India

v Bharat Heavy Electricals Limited, India

No. of Employees :

1463

Bankers :

v Allahabad Bank

v Bank of India

v Bank of Maharashtra

v Bank Muscat

v Canara Bank, Nehru Place, New Delhi

v Central Bank of India

v Citibank N.A.

v Exim Bank of India

v Federal Bank Limited

v ICICI Bank Limited

v IDBI Bank

v ING Vysya Bank Limited

v Indian Overseas Bank

v Jammu & Kashmir Bank Limited

v MashreqBank psc

v Oriental Bank of Commerce

v Punjab National Bank

v Punjab & Sind Bank

v Standard Chartered Bank

v State Bank of Hyderabad

v State Bank of India

v Syndicate Bank

v The Karur Vysya Bank Limited

v UCO Bank

v United Bank of India

v Vijaya Bank

Facilities :

SECURED LOANS	31.03.2006
SHORT TERM WORKING CAPITAL LOAN ACCOUNT
FROM BANKS	1658.340
Out of the above, i) Rs. 473.813 Millions (previous year Rs. 56.679 Millions) is secured by way of first charge on pan passu basis on current assets (excluding book debts) and second charge on pah passu basis on fixed assets of the project division of the Company and further secured by personal guarantee of Chairman & Managing Director of the Company. ii) Rs. 17.352 Millions (previous year Rs. 210.724 Millions) is secured by way of first charge on pah passu basis on current assets (excluding book debts) and second charge on pah passu basis on fixed assets of the project division of the Company. iii) Rs. 1167.175 Millions (previous year Rs. 644.820 Millions) is secured by way of exclusive charge on the receivables of the specific projects financed by the bank, first pah passu charge on the current assets (excluding book debts) and pah passu second charge on the movable assets of the project division of the Company and further secured by personal guarantee of Chairman & Managing Director of the Company. iv) Rs. Nil (previous year Rs. 63.622 Millions) is secured by way of first charge on pah passu basis on current assets (except book debts) and second charge on fixed assets of the project division of the Company and exclusive charge on receivables of specific projects financed by the bank and further secured by personal guarantee of Chairman & Managing Director of the Company.
ON TERM LOAN ACCOUNT
FROM BANKS	1435.950
Loans aggregating to Rs. 478.992 Millions (previous year Rs. 1275.566 thousand) are repayable within one year. Out of the above, i) Rs. Nil (previous year Rs. 149.740 Millions) is secured by way of first charge on pari passu basis on fixed assets of the project division of the Company and further secured by personal guarantee of Chairman & Managing Director of the Company. ii) Rs. 546.620 Millions (previous year Rs. 693.010 Millions) is secured by way of exclusive charge on the equipment purchased out of the proceeds of loan. iii) Rs. 120.000 Millions (previous year Rs. 899.988 Millions) is secured by way of first pari passu charge on movable fixed assets of the project division of the Company. iv) Rs. 262.500 Millions (previous year Rs. Nil) is secured by way of first pari passu charge on movable assets of the project division of the Company and personal guarantee of Chairman & Managing Director of the Company. v) Rs. Nil (previous year Rs. 162.490 Millions) is secured by way of exclusive charge on financed fixed assets and second charge on pari passu basis on current assets of the Company and further secured by personal guarantee of Chairman & Managing Director of the Company. vi) Rs. Nil (previous year Rs. 50.000 Millions) is secured by way of second pari passu charge on the current assets (excluding receivables) of the project division of the Company and second pari passu charge on the fixed assets of the project division of the Company and further secured by personal guarantee of Chairman & Managing Director of the Company. vii) Nil (previous year Rs. 150.000 Millions) is secured by way of subservient charge on the entire current and movable fixed assets of the project division of the Company. viii) Rs. 235.648 Millions (previous year Nil) is secured by way of exclusive charge on the land and building for corporate office being built at Gurgaon. Rs. 171.192 Millions (previous year Rs. 514.955 Millions) is secured by way of paripassu first charge on the existing and future movable fixed assets of the project division of the Company, part possu second charge on current assets of the project division of the Company (excluding receivables of the Company) and further secured by personal guarantee of Chairman & Managing Director of the Company. x) Rs. 99.991 Millions (previous year Rs. 599.853 Millions) is secured by way of second pan possu charge on the movable fixed assets of the project division of the Company and further secured by personal guarantee of Chairman & Managing Director of the Company.
FROM OTHERS	43.961
Loans aggregating to Rs. 27.123 Millions (previous year Rs. 38.302 Millions) are repayable within one year.
Out of the above, i) Rs. 43.961 Millions (previous year Rs. 84.910 Millions) is secured by first and exclusive charge by way of hypothecation on certain specific equipments financed through the loan. ii) Nil (previous year Rs. 138.500 Millions) is secured by way of exclusive charge on the land and building for corporate office being built at Gurgaon
HIRE PURCHASE CREDITORS
FROM OTHERS	291.842
Loans aggregating to Rs. 78.811 Millions (previous year Rs. 36.235 Millions) re repayable within one year. (Secured by exclusive charge by way of hypothecation on certain specific equipments.)
EXTERNAL COMMERCIAL BORROWINGS FROM BANK	30.015
Loans aggregating to Rs. 15.007 Millions (previous year Rs. 14.729 Millions) are repayable within one year. (Secured by exclusive charge on the equipment financed through the loan.)

Banking Relations :	Satisfactory
Auditors :
Name :	S. R. Batliboi & Company Chartered Accountant
Memberships :	v Confederation of Indian Industry
Associates/Subsidiaries :	˜ PLN Construction Private Limited Subject is a subsidiary of company, specialising in Horizontal Directional Drilling. Active in the Indian market since 1997, PLN has executed crossings totalling 23,027 metres. It has laid pipelines under expressways, railways, rivers and canals. The company owns a 250 T rig spread, which can handle crossings upto 56” dia. Significant Projects :- The longest HDD crossings in India i.e. 1700 and 1770 metres at the Krishna-Godavari basin on the eastern coast of India for GAIL India Longest crossings in India to pull 42” dia pipeline i.e. 1041 metres at Tapi River near Surat for ONGC Has crossed almost all the perennial rivers of India ˜ Rajahmundry Expressway Limited ˜ Andhra Expressway Limited ˜ Vadodara Halol Toll Road Company Limited ˜ North Karnataka Expressway Private Limited ˜ Bistro Hospitality Limited ˜ Jacob Ballas Capital India Private Limited ˜ Punj Lloyd – Limak JV ˜ Punj Lloyd – Progressive Constructions Limited ˜ Persys – Punj Lloyd JV ˜ Punj Lloyd – PT Punj Lloyd Indonesia JV ˜ D & A Foods Private Limited, India ˜ Indtech Construction Private Limited, India ˜ Jay Agro Flora Private Limited, India ˜ Gujarat Toll Road Limited subsidieries ˜ Spectra Punj Lloyd Limited Specialised company for renting the equipment to construction industry was formed in the year 1985. This company helps the company’s operations by hiring in at competitive rates when the captive asset base cannot meet the total requirement and facilitates hiring out in case of certain assets being under utilized ˜ Punj Lloyd Insulations Limited, India Over the years PLIL has completed a diverse range of prime insulation projects. These industrial, hospitality and residential projects - executed for leading international as well as Indian clients and consultants - have varied in scale and complexity. Meticulous planning, precision engineering, global materials’ sourcing, and comprehensive project management, backed by an inherent regard for health, safety and environment are the main reasons for this division’s exceptional achievements. A subsidiary of the Punj Lloyd Group specialising in insulation technologies. Its areas of expertise extend from thermal insulation to waterproofing to acoustic treatment to refractory and acid - resistant lining. v Punj Lloyd (Malaysia) SDN BHD, Malaysia v Punj Lloyd Inc, USA v Punj Lloyd International Limited, USA v Punj Lloyd Kazakhstan Limited v Spectra Infrastructure Limited, India v Atna Investment Limited, India v Spectranet Limited, India v Spectra Punjab Limited v Pt. Punj Llyod Indonesia v Indudyog Company Limited v Uppal Hotels Limited, India v Spectranet Holdings Limited v Spectra Net Limited v Spectra Net Holding Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
60,000,00	Equity Shares	Rs. 10/- Each	Rs. 600.000 Millions
20,000,000	Equity Shares	Rs. 10/- Each	Rs. 200.000 Millions
	Total		Rs. 800.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
52,219,836	Equity Shares	Rs. 10/- Each	Rs. 522.198 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		522.198	252.300	206.466
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		10113.488	4434.900	2357.383
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		10635.686	4687.200	2563.849
LOAN FUNDS
1] Secured Loans		3460.109	4529.800	5317.322
2] Unsecured Loans		629.355	1168.400	939.262
TOTAL BORROWING		4089.464	5698.200	6256.584
DEFERRED TAX LIABILITIES		558.192	0.000	578.143
TOTAL		15283.342	10385.400	9398.576
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4614.973	4202.100	4675.090
Capital work-in-progress		771.792	142.900	15.874
Preoperative Expenditure		47.847	0.000	0.000
INVESTMENT		1244.085	548.600	1146.514
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6261.853	2319.174	3967.500
	Sundry Debtors	3784.834	1572.491	3115.400
	Cash & Bank Balances	732.759	302.356	303.400
	Other Current Assets	109.903	0.000	0.000
	Loans & Advances	1951.436	1786.127	1534.200
Total Current Assets		12840.785	8920.500	5980.148
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	4030.117	2465.153	3353.200
	Provisions	206.023	963.547	75.500
Total Current Liabilities		4236.140	3428.700	2465.153
Net Current Assets		8604.645	5491.800	3514.995
MISCELLANEOUS EXPENSES		0.000	0.000	46.103
TOTAL		15283.342	10385.400	9398.576

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		13682.149	14294.286	11381.122
Other Income		348.213	499.862	0.000
Total Income		14030.362	14794.148	11381.122
Profit/(Loss) Before Tax		562.919	114.943	523.782
Provision for Taxation		211.449	33.511	116.943
Profit/(Loss) After Tax		351.470	81.432	406.839
Earnings in Foreign Currency :
Total Earnings		5127.058	6554.861	600.912
Imports :
	Stores & Spares	485.354	172.163	0.000
	Capital Goods	445.811	0.000	0.000
Total Imports		931.165	172.163	186.658
Expenditures :
	Administrative Expenses	7765.226	9208.692	0.000
	Raw Material Consumed	4517.011	3775.000	0.000
	Other Expenditure	593.306	1061.591	10570.544
Total Expenditure		12875.543	14045.283	10570.544

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2006 (1^st Quarter)	30.09.2006 (2^nd Quarter)	31.12.2006 (3^rd Quarter)
Sales Turnover	3888.300	4018.700	6507.300
Other Income	183.400	77.200	186.800
Total Income	4071.700	4095.900	6694.100
Total Expenditure	3529.600	3730.800	6020.100
Operating Profit	542.100	365.100	674.000
Interest	90.800	139.500	201.500
Gross Profit	451.300	225.600	472.500
Depreciation	164.700	201.100	237.100
Tax	112.000	(33.400)	37.200
Reported PAT	185.900	7.900	190.400

200606 Quarter 1 - EPS is Basic Utilization of IPO funds Particulars 19.12.2005 30.06.2006 Invetment in capital equipement 1500.00 805.60 -Prepayment of debts 3000.00 3064.17 -Equity Investment in 500.00 203.51 ifrastructure projects WOS and JVs -General Corporate Purposes 522.92 522.92 -Other related expenses 325.70 305.10 5848.62 4901.30 Unspent IPO proceeds will be used for investment in capital equipment and equity invesment in infrastructure projects Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 178 Complaints disposed off during the quarter 178 Complaints unresolved at the end of the quarter Nil 1. The Remuneration Committee of the Company on May 10, 2006 had approved the grant of 154 208 stock options at a price of Rs 1,179 95 As at June 30, 2006 out of total 8,00,000, options under 'Employee Stock Option plan 2005' 797697 options have been granted to the eligible employees. The stock option shall vest in the ratio of 10%, 20%, 30%, and 40% at the end of one two, three and four years from the date of grant respectively. As on June 30, 2006 on stock option has been vested. 2. The standalone results for the quarter ended June 30, 2006 have been subjected to a 'Limited Review' by the Auditors. The results were reviewed by the Audit Committee of the Board. The Board of Directors has taken on record the financial results at its meeting held on July 31, 2006. 3. Consolidated financial for the quarter ended June 30, 2006 includes financial of newly acquired subsidiary in Singapur. Therefore, to that extent these are not comparable with previous year financials. 4. This being the first year of listing the figures for corresponding quarter ended on June 30, 2005 are not available for the purpose of comparison. 5. The auditors of the company have qualified the Audited Account as at March 31, 2006 of the Company for followings a) Rs 312.02 million (Rs 301.02 million as at March 31, 2006) and Rs 81.24 million (Rs 77.99 million as at March 31 2006) are recoverable from Spie Capag-Petrofac International Limited (SCPIL) in Georgia in relation to the contract work done and expenses incurred on their behalf respectively. The terms of the related contract was currently in dispute Also, the Company has raised variation orders of Rs 1550.35 million (Rs 1490.00 million as at March 31, 2006) on SCPIL and SCPIL has raised debit notes of Rs 496.67 million (Rs 477.40 million as at March 31, 2006) on the Company which are being disputed and have not been accounted for in the books. The ultimate outcome of the dispute cannot presently be determined by the Company. b) Interest of Rs 3.69 million has been accounted for during the quarter ended (in addition to credit taken of Rs 80.29 million in earlier years) on the amount withheld by a customer which is not in accordance with Accounting Standard 9 on Revenue Recongnition. There is no change in the qualifications during the quarter ended June 30, 2006. The settlement with the clients referred in (a) & (b) above is in advanced stages of discussions through arbitrations & mutual settlement. The Company expects these qualifications will be reveresed on reaching settlement with the clients. 6. a) The Company has acquired a 100% subsidiary in Singapore viz Creighton Private Limited. The name of the Company was subsequently changed to Punj Lloyd Private Limited. b) The Company has through its wholly owned subsidiary in Singapore Punj Lloyd Private Limited has acquired a majority stake in Semb Corp Engineers & Constructors from SembCorp Industries. 7. The Company has issued Zero Coupon Foreign Currency Convertible bonds of US$ 125 million on April 07, 2006. 8. Previous year figures have been regrouped and/or re-arranged wherever necessary.

200609 Quarter 2 - Expenditure Includes Material Consumed and Cost of Good Sold Rs 1024.96 million Contractor charges Rs 800.56 million Staff Cost Rs 523.07 million Other expenditure Rs 1382.21 million Tax Includes Provision for Current Tax Rs (46.47) million Deferred Tax Rs 50.07 million Fringe Benefit Tax (includes Rs 1.50 million for earlier year) Rs 13.06 million EPS is Basic Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 49 Complaints disposed off during the quarter 49 Complaints unresolved at the end of the quarter Nil 1. Utilization of IPO funds :- Projected Utilization as per the Prospectus dated December 19, 2005 Investment in Capital Equipment: 1500 Prepayment of Debts: 3000 Equity Investment in Infrastructure Projects, WOS and JVs: 500 General Corporate Purposes: 522.92 Offer related expenses: 325.7 Actual as On September 30, 2006 Investment in Capital Equipment: 1219.98 Prepayment of Debts: 3064.17 Equity Investment inInfrastructure Projects, WOS and JVs: 203.51 General Corporate Purposes: 522.92 Offer related expenses: 305.10 Unspent IPO proceeds will be used for Investment in Capital Equipments & Equity Investment in Infrastructure Projects, WOS & JVs 2. The Remuneration Committee of the Company on May 10, 2006 had approved the grant of 154,208 stock options at a price of Rs 1,179.95. As at September 30, 2006, out of total 8,00,000 options under 'Employee Stock Option Plan, 2005', 797,697 options have been granted to the eligible employees. The stock options shall vest in the ratio of 10%, 20%, 30% and 40% at the end of one, two, three and four years from the date of grant respectively. As on June 30, 2006, no stock option has been vested. 3. The business of branch operation of the Company in Singapore have been transferred to its wholly owned Subsidiary Punj Lloyd Private Limited., Singapore for operational and financial efficiencies, effective July 01, 2006. The standalone results for the quarter ended September 30, 2006, accordingly do not include the figures in respect of Singapore Branch. 4. a) The Company has acquired a 100% subsidiary in Singapore viz Creighton Private Limited. The name of the Company was subsequently changed to Punj Lloyd Private Limited. b) The company has increased its stake from 88% to 100% in newly acquired company Sembwang Engineering & Construction Private Limited, Singapore through its wholly owned subsidiary in Singapore. 5. Mr Keith Henry has resigned from the director of the Company w.e.f. October 19, 2006 and Mr Sanjay Bhatnagar has joined the Company as additional director w.e.f. October 19, 2006. 6. The Standalone results for the quarter and six months ended September 30, 2006 have been subjected to a 'Limited Review' by the Auditors while the Consolidated results for these periods have not been subjected to limited review. The results were reviewed by the Audit Committee of the Board. The Board of Directors has taken on record the financial results at its meeting held on October 30, 2006. 7. Consolidated financials for the quarter and six months ended September 30, 2006 includes financials of newly acquired subsidiary in Singapore, therefore, to that extent these are not comparable with previous year financials. 8. This being the first year of listing, the figures for corresponding quarter ended on September 30, 2005 are not available for the purpose of comparison. 9.a) The auditors of the Company have qualified the Audited Account as at March 31, 2006 of the Company for followings: a) Rs 309.14 million (Rs 301.02 million as at March 31,2006) and Rs 80.49 million (Rs 77.99 million as at March 31, 2006) are recoverable from Spie Capag-Petrofac International Limited (SCPIL) in Georgia in relation to the contract work done and expenses incurred on their behalf respectively. The terms of the related contract was currently in dispute. Also, the Company has raised variation orders of Rs 1,536.01 million (Rs 1,490.00 million as at March 31, 2006) on SCPIL and SCPIL has raised debit notes of Rs 492.08 million (Rs 477.40 million as at March 31, 2006) on the Company which are being disputed and have not been accounted for in the books. The ultimate outcome of the dispute cannot presently be determined by the Company. b) Interest of Rs 3.72 million and Rs 7.42 million has been accounted for during the quarter and six month ended September 30, 2006 respectively (in addition to credit taken of Rs 80.29 million in earlier years) on the amount withheld by a customer, which is not in accordance with Accounting Standard 9 on Revenue Recognition. There is no change in the qualifications during the quarter and six months ended September 30, 2006. The settlement with the clients referred in (a) & (b) above is in advanced stages of discussions through arbitrations & mutual settlement. The Company expects these qualifications will be reversed on reaching settlement with the clients. 10. The Company has issued Zero Coupon Foreign Currency Convertible bonds of US$ 125 million on April 07, 2006. 11. Previous year figures have been regrouped and/or re-arranged wherever necessary.

200612 Quarter 3 - Expenditure Includes Material Consumed and Cost of Good Sold Rs 1380.42 million Contractor charges Rs 1532.98 million Staff Cost Rs 659.18 million Other expenditure Rs 2447.56 million Tax Includes Provision for Current Tax Rs 23.42 million Deferred Tax Rs 7.87 million Fringe Benefit Tax Rs 13.80 million EPS is Basic Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 34 Complaints disposed off during the quarter 34 Complaints unresolved at the end of the quarter Nil 1. Utilization of IPO funds :- Projected Utilization as per the Prospectus dated December 19, 2005 Investment in Capital Equipment: Rs 1500 million Prepayment of Debts: Rs 3000 million Equity Investment in Infrastructure Projects, WOS and JVs: Rs 500 million General Corporate Purposes: Rs 522.92 million Offer related expenses: Rs 325.7 million Actual as On December 31, 2006 Investment in Capital Equipment: Rs 1485.27 million Prepayment of Debts: Rs 3064.17 million Equity Investment in Infrastructure Projects, WOS and JVs: Rs 453.31 million General Corporate Purposes: Rs 540.76 million Offer related expenses: Rs 305.09 million 2. The Remuneration Committee of the Company on May 10, 2006 had approved the grant of 154,208 stock options at a price of Rs 1,179.95 under employee stock option plan 2005. As at December 31, 2006, out of total 8,00,000 options, 797,697 have been granted to the eligible employees. The stock options shall vest in the ratio of 10%, 20%, 30% and 40% at the end of one, two, three and four years from the date of grant respectively. During the quarter 64,354 stock options have vested of which 23,731 options have been exercised and shares of Rs 10 each in respect thereof have been allotted at a premium of Rs 620 per shares. In addition, the Remuneration Committee of the Company on October 30, 2006, approved the grant of 298,210 stock options at a price of Rs 772.30 under the Employee Stock Option Plan 2006'. As of December 31, 2006 out of total 1,000,000 options, 298,210 options have been granted to the eligible employees. The stock options shall vest in the ratio of 10%, 20%, 30% and 40% at the end of one, two, three and four years from the date of grant respectively. As on December 31, 2006 no options have vested. 3. The business of branch operation of the Company in Singapore have been transferred to its wholly owned Subsidiary Punj Lloyd Pte Limited., Singapore for operational and financial efficiencies, effective July 01, 2006. The standalone results for the quarter ended December 31, 2006, accordingly do not include the figures in respect of Singapore Branch and similarly results for the nine months ended December 31, 2006, include the figures only for the first three months. 4. a) During the quarter, a joint venture (JV) Company 'Dayim Punj Lloyd Construction Contracting Co. Limited.' has been incorporated in Saudi Arabia in which the Company is 49% JV partner. The JV is yet to commence operations. b) During the quarter, a joint venture (JV) company 'Swissport Punj Lloyd India Private Limited' has been incorporated in which the company is 49% JV partner. The JV is yet to commence operations. c) The Company has incorporated a wholly owned subsidiary namely 'Simon Carves India Limited' during the quarter. The subsidiary is yet to commence operations. d) In terms of the Share Subscription and Shareholders Agreement executed by and among the Company, M/s. Punj Lloyd Insulations Limited and KAEFER GMBH, KAEFER GMBH now holds 51% of the enhanced paid up capital in the erstwhile Punj Lloyd insulation Limited and the name of the Company has been changed to KAEFER Punj Lloyd Limited w.e.f. December 15, 2006. Consequently KAEFER Punj Lloyd Limited (Formerly Punj LloydInsulations Limited) is no longer a subsidiary but an associate of Punj Lloyd Limited. 5. The Company along with Atul Punj, Shiv Punj, Arti Singh, Jyoti Punj, PLE Hydraulics Private Limited, Atna Investments Limited, Jyotcon Equipment Hire Private. Limited (i.e. persons acting in concert) have made an offer to acquire 25,000 shares in Spectra Punj Lloyd Limited, a subsidiary of the Company, at a price to be determined under Reverse Book Building process in accordance with the Securities Exchange Board of India (Delisting of Securities) Guidelines 2003. 6. Mr Keith Henry has resigned as the director of the Company w.e.f. October 19, 2006 and Mr Sanjay Bhatnagar has joined the Company as additional director w.e.f. October 19, 2006. 7. The Standalone results for the quarter and nine months ended December 31, 2006 have been subjected to a 'Limited Review' by the Auditors while the Consolidated results for these periods have not been subjected to limited review. The results were reviewed by the Audit Committee of the Board. The Board of Directors has taken on record the financial results at its meeting held on January 29, 2007. 8. This being the first year of listing, the figures for corresponding quarter and nine months ended on December 31, 2005 are not available for the purpose of comparison. 9. a) The auditors of the Company have qualified the Audited Accounts of the Company as at March 31, 2006 for following (i) Rs 296.58 million (Rs 301.02 million as at March 31, 2006) and Rs 77.22 million (Rs 77.99 million as at March 31, 2006) are recoverable from Spre Capag-Petrotac International Limited (SCPIL) in Georgia in relation to the contract work done and expenses incurred on their behalf respectively. The terms of the related contract was currently in dispute. Also, the Company has raised variation orders of Rs 1473.61 million (Rs 1,490.00 million as at March 31, 2006) on SCPIL and SCPIL has raised debit notes of Rs 472.08 million (Rs 477.40 million as at March 31, 2006) on the Company which are being disputed and have not been accounted for in the books. The ultimate outcome of the dispute cannot presently be determined by the Company. b) Interest of Rs 3.68 million and Rs 11.10 million has been accounted for during the quarter and nine month ended December 31, 2006 respectively (in addition to credit taken of Rs 80.29 million in earlier years) on the amount withheld by a customer, which is not in accordance with the Accounting Standard 9 on Revenue Recognition. There is no change in the qualifications during the quarter and nine months ended December 31, 2006. The settlement with the client referred in (a) & (b) above is in advanced stages of discussions through arbitration & mutual settlement. The Company expects these qualifications will be reversed on reaching settlement with the clients. 11. The Company has claimed benefit under Section 80IA of the Income Tax Act, 1961 in line with the benefit claimed in Assessment year 2006-07 in their return of Income. The entire benefit for nine months of the current financial year has been recognized in the current quarter. 12. Aggregate public shareholding has been recast for the previous periods as per the provisions of amended clauses 35 and 40A of Listing Agreement. 13. Previous year / period figures have been regrouped and / or re-arranged wherever necessary.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio	0.64	1.68	2.69
Long Term Debt Equity Ratio	0.43	1.49	2.69
Current Ratio	1.91	1.90	2.11
TURNOVER RATIOS
Fixed Assets	1.95	2.31	2.57
Inventory	2.76	4.76	7.25
Debtors	4.05	6.29	7.57
Interest Cover Ratio	1.85	1.03	1.73
Operating Profit Margin (%)	11.97	12.09	18.17
Profit Before Interest and Tax Margin (%)	7.78	7.29	14.19
Cash Profit Margin (%)	6.42	4.98	8.63
Adjusted Net Profit Margin (%)	2.23	0.18	4.65
Return on Capital Employed (%)	8.76	11.46	23.83
Return on Net Worth (%)	4.12	0.77	28.73

STOCK PRICES

Face Value	Rs. 10/-
High	Rs.835.85/-
Low	Rs.821.15/-

LOCAL AGENCY FURTHER INFORMATION

BUSINESS

Subject is engaged in the business of undertaking General Construction, Accoustic Jobs, Slipforming and Crosscountry Piping and Gas based Power Plants on Turnkey basis and laying of Optical Fibre Cables.

The company is engaged in engineering and construction activities, projects related activities, pressure vessels and silencing equipments, etc.

It is also engaged in a diverse range of project activities and has executed projects in diverse sectors such as oil & gas, chemicals, petrochemicals, fertilizers and other infrastructure civil projects.

Subject is a leading construction company.

The company has been accredited with ISO 9001 Certification for engineering, designing, procurement, construction and commissioning of tankages and ISO 9002 Certification for other activities.

The company is targeting major projects for EPC and construction work in thrust sectors such as oil & gas, power, terminals, infrastructure for telecommunication projects, roads and bridges, etc.

The company has restructured its activities into strategic business units in the areas of pipelines, tankages, EPC, industrial civil and telecom.

The company undertakes the following projects :-

Pipeline

· Baku-Tbilisi-Ceyhan

· Tunu Field Development Phase 9

· Dahej Vijaipur Gas

· Panaran Pemping Gas

· KAM

· Mangalore Bangalore Pipelines

· Jamnagar Loni

· Effluent Outfall

· Gas Rehabilitation and Expansion

· Kandla Bhatinda

· South Bvassein Hazira Trunkline

· Tunu Field EPSC 4 & 5

· Balongan, Jakarta

· Jarn Yaphour Field Development

· Mumbai Pune Products

Tankage and Terminals

· LNG Hazira

· LNG Dabhol

· Steel Storage Tanks, Fujairah

· LPG Terminal

Turnkey and Composite Construction

· Gas Compressor Trains Peciko

· Gas Field Development Dandewalan

· Hydrocracker for Mathura Refinery

Civil Construction

· Belgaum Maharashtra Highway

· Jaipur Bypass

· Infrastructure Services Qatar

Telecom

· OFC Laying of Gail in MP

· Western Regions for Power Grid

· OFC Laying for Bharati Telenet

The company is in trade terms with :

v Berger Paints Limited

v Wirtgen GmbH, Hohner Street 2, 53578 Windhagen, Germany

v Parker Plant Limited, P. O. Box 146, Cannon Street, Leicester, Le4 6HD, UK

v Metso Minerals Singapore Private. Limited., 501, Orchard Road, 05-09, Weelock Place, Singapore 238880

v MBW (UK) Limited, Bradley Fold Trading Estates Unit 6, Radcliffe Moore Road, Bolton BL2 6RT, England

v Stetter GmbH, Dr. Karl-Lenz-St. 70, D-87700 Memmingen, P. O. Box 1942, D- 87689 Memmingen, Germany

v Lincoln Electric Co., 22801 Saint Clair Avenue, Cleveland, Ohio, U.S.A

v Metso Dynapac AB, P.O. Box 504, SE-37123, Karlskrona, Sweden

v Volvo East Asia Pte Limited, 31, Jurong Logistics HUB, Singapore 619115

v Tyco Adhesives B.V.B.A, Nieuwlandlaan B15, B-3200 Aarschot, Belgium

v Ph : +32-16-553600, Fax : +32-16-553672

v Pipeline Inspection Co., P. O. Box 55648, Houston TX, 77255-5648

Ph : +713-681-5837, Fax : +713-681-4838

v CRC-Evans Pipeline International Inc., P. O. Box 50368, Tulsa OK 74150 - 0368

The company has joint venture with :-

v Koop International, The Netherlands

v Whessoe LGA Gas Technology Limited, Darlington, UK

v Rajahmundry Expressway Limited

v Andhra Expressway Limited

v PLN Construction Private Limited

v Vadodara Halol Toll Road Company Limited

v North Karnataka Expressway Private Limited

v Bistro Hospitality Limited

v Jacob Ballas Capital India Private Limited

v Punj Lloyd – Limak JV

v Punj Lloyd – Progressive Constructions Limited

v Persys – Punj Lloyd JV

v Punj Lloyd – PT Punj Lloyd Indonesia JV

OPERATIONS REVIEW 

 Net sales of the Company fell by 4.28 per cent from Rs. 14294.29 million in financial year (FY) 2004-05 to Rs. 13682.15 million in FY 2005-06. As a consequence of delay in obtaining right of way in road projects in Assam, the revenues and profitability have shifted to the current year. Profit before interest, depreciation and tax (PBIDT), however, increased from Rs. 1570.74 million in FY 2004-05 to Rs. 1622.81 million in FY 2005-06. 

During the year, Company carried out debt restructuring by repaying some of its high cost debts and substituting some of high cost debts by low cost debts. The total borrowing including short term loans declined from Rs. 5698.16 million in FY 2004-05 to Rs. 4089.46 million in FY 2005-06. Interest charges for the year declined from Rs. 737.98 million in FY 2004-05 to Rs. 467.99 million in FY 2005-06. The profit before tax (PBT) increased by 389.75 per cent from Rs. 114.94 million in FY 2004-05 to Rs. 562.92 million in FY 2005-06. 

Profit after tax (PAT) grew by 331.62 per cent from Rs. 81.43 million in FY 2004-05 to Rs. 351.47 million in FY 2005-06. 

SUBSIDIARY COMPANIES AND JOINT VENTURES 

 Punj Lloyd Inc., a wholly owned subsidiary (WOS) in US and Punj Lloyd (Malaysia) Sdn. Bhd., WOS in Malaysia are in the process of being wound up. 

 After the closure of current financial year, the Company has acquired 100% equity of Creighton Pte. Limited., Singapore to make it WOS of the Company. The name of the Company was later changed to Punj Lloyd Pte. Limited. 

 On an application by the Company under section 212(8), the Central Government has vide its letter No. 47/52/2006-CL-III dated February 22, 2006 exempted the Company from attaching a copy of Balance Sheet, Profit and Loss Account, and other documents in respect of its subsidiaries for the year ended March 31, 2006. 

 A statement in respect of each of the subsidiary, giving the details of capital, reserves, total assets and liabilities, details of investment, turnover, profit before taxation, provision for taxation, profit after taxation and proposed dividend is attached to the consolidated balance sheet. 

 Annual accounts of the subsidiary companies and the related detailed information will be made available to the holding and subsidiary company investors, seeking such information. Copies of the annual accounts of the subsidiary companies are available for inspection by any investor at the registered office of the Company between 11.00 AM to 13.00 PM on all working days.

 After the closure of the current financial year, the Company has entered into a joint venture with His Royal Highness Prince Khalid Bin Bandar Bin Sultan (KBS), Kingdom of Saudi Arabia. The jointly owned company would be incorporated with the share capital of 2 million Saudi Riyals in which the Company would hold 49%, while the latter would hold 51% stake. The Joint Venture Company will operate in engineering, procurement, construction, commissioning of onshore and offshore projects for the hydrocarbon sector, power, chemical, water and sewage sector, civil infrastructure and industrial projects in the Kingdom of Saudi Arabia. 

ACQUISITION OF SEMBCORP ENGINEERS AND CONSTRUCTORS PTE. LIMITED. IN SINGAPORE 

 After the closure of the current financial year, the Company has through its wholly owned subsidiary in Singapore viz. Punj Lloyd Pte. Limited., acquired a majority stake in SembCorp Engineers & Constructors (SembE&C), a wholly-owned subsidiary of SembCorp Industries (SCI) which is a leading utilities and marine group in Asia. Punj Lloyd has acquired 88% stake in SembE&C at a consideration of Singapore Dollar 35.2 million. The remaining 12% stake would be acquired by Punj Lloyd Pte. Limited. on or before December 31, 2007. 

 SembE&C is a design-and-build engineering and construction service provider with core capabilities encompassing process & plant engineering, heavy civil engineering and building. SembE&C recorded revenue of over 1 billion Singapore dollars for year ending December 2005. 

 This acquisition is in line with the Company's strategic intent to expand its geographical reach and portfolio enhancement in complementary sectors. Punj Lloyd already has a formidable presence in South Asia, Middle East, Asia Pacific, Caspian and Africa. With this acquisition, its operations will expand to Europe, China besides Iran and other SE Asian markets, by leveraging the opportunities through this acquisition. 

 This is an important milestone in the Company's ability to offer a complete portfolio of EPC solutions. With this acquisition, Punj Lloyd will add engineering construction capabilities for airports, jetties, MRT/LRT, tunneling, sewage amongst others, to its capabilities in the infrastructure domain. In petrochemical sector, Punj Lloyd can leverage Simon-Carves's (a wholly owned subsidiary of SembE&C) capabilities in engineering, procurement and construction of LDPE, PVC, Styrene and refinery processes domain. At present, Punj Lloyd provides engineering construction services in the oil and gas sector for pipelines, tanks and terminals, process facilities, and in the infrastructure sector for construction of highways and expressways, power plants and high specification buildings besides value added engineering and plant & facility maintenance. 

 This entity will contribute significantly to top-line of the Company and will provide access to new geographies and enhance their competitive positioning in existing markets. This acquisition will substantially enhance their Group's capabilities to tap into complementary growth sectors like infrastructure and petrochemicals. They will also greatly benefit from the experienced and quality manpower, as this acquisition will add a very large number of experienced and qualified engineers to their existing talent pool. 

As Per Website Details

Profile

Punj Lloyd Limited is one of the largest engineering construction companies in India providing integrated design, engineering, procurement, construction and project management services for energy industry and infrastructure sector projects. Punj Lloyd Limited provides engineering construction services for onshore and offshore pipelines, gas gathering systems, oil and gas tanks and terminals including cryogenic LNG and LPG storage terminals, process facilities in the oil and gas industry including refineries and for power plant projects. In the infrastructure sector, Punj Lloyd Limited has worked on various civil infrastructure projects for highways, flyovers, bridges and elevated railroads. In addition, Punj Lloyd Limited provides value added engineering services for energy industry and infrastructure projects as well as comprehensive plant and facility maintenance and management services.  

Punj Lloyd Limited's operations are spread across the regions of the Middle East, the Caspian, the Asia Pacific, Africa and South Asia. Punj Lloyd Limited has 13 subsidiaries including subsidiaries in Kazakhstan and Indonesia, and 12 project and marketing offices, including in the United Kingdom, Tunisia, Libya and Saudi Arabia. Over the years, Punj Lloyd Limited has received repeat orders from several major clients in different countries.  Punj Lloyd Limited has successfully executed projects in South Asia, the Asia Pacific, the C.I.S., the Middle East, and in Turkey and Georgia, in difficult terrain and extreme climatic conditions. In the years ended March 31, 2004 and 2005 and in the six months ended September 30, 2005 Punj Lloyd Limited generated approximately 26.40%, 57.54% and 56.28% of its consolidated sales and contracts revenue from projects executed outside India.  

Punj Lloyd Limited's services include detailed engineering, field services, material procurement and overall project and construction management.  It owns a large fleet of sophisticated construction equipment including pipelaying equipment, amphibious equipment for offshore work, automatic welding machines, horizontal directional drilling rigs, barges, swamp excavators, heavy construction equipment, concrete pavers, piling rigs, and transportation and camp equipment.  As of September 30, 2005, Punj Lloyd Limited's experienced multinational and multicultural work force consisted of approximately 1,472 full time employees and more than 4,500 casual and temporary contract employees based around the world. Punj Lloyd Limited is strongly committed to health, safety and environment policies and practices in the execution of its projects and has received several awards and certifications for its operations and projects from the British Safety Council as well as from its clients.  Punj Lloyd Limited also enjoys various accreditation such as the ISO 9001:2000 QMS, the ISO 14001:1996 EMS and the OHSAS 18001:1999 OHSMS from Det Norske Veritas.

Punj Lloyd Limited has worked on projects for international energy majors such as ADNOC, British Petroleum, Cairn Energy, Pertamina, PetroKazhakstan, Petroleum Development Oman, Shell, Total and TengizChevroil (a joint venture of Chevron) as well as energy majors in India such as BHEL, BPCL, CPCL, Dabhol Power Company, Essar Refineries, GAIL, Gujarat Gas, HPCL, IOC, Jindal Power, Kochi Refineries, Nuclear Power Corporation, OIL, ONGC and RIL.  Punj Lloyd Limited has also worked on projects for major engineering construction companies including Bechtel, Parsons Fluor Daniel, Petrofac, Saipem, Siirtech Nigi, Skanska, Skoda, Snamprogetti, Technip and Toyo as well as Engineers India Limited and Lurgi. On infrastructure projects, Punj Lloyd Limited has worked on various projects for NHAI and Delhi Metro.

In over 20 years of experience in construction projects, Punj Lloyd Limited has constructed more than 5,300 km of pipelines and 4 million m³ of tanks and terminals capacity and has executed 11 refinery modernisation and quality improvement projects.  Punj Lloyd Limited has also worked on or is working on 14 highway projects in the infrastructure sector.

Punj Lloyd Limited has received various awards in relation to its performance, including the following:

• Export award for the year 2004-2005 for second best performance in the category of maximum value of overseas contracts secured from the Projects Exports Promotion Council of India;
• Export award for the year 2004-2005 for second best performance in the category of maximum turnover from overseas construction contracts from the Projects Exports Promotion Council of India;
• Export award for the year 2003-2004 in recognition of foreign works secured in new areas from the Projects Exports Promotion Council of India;
• Export award for the year 2003-2004 in recognition of second best performance in maximum overseas construction contracts secured from the Projects Exports Promotion Council of India;
• Export award for the year 2002-2003 in recognition of maximum foreign works secured in new areas from the Overseas Construction Council of India; and
• Export award for the year 2002-2003 in recognition of maximum overseas construction contracts secured from the Overseas Construction Council of India.  

Punj Lloyd Limited has executed or is currently engaged in executing several landmark projects within and outside India, including pipeline projects such as the Baku – Tbilisi – Ceyhan crude oil pipeline for BP – Botas in Turkey, the KAM oil pipeline project for PetroKazhakstan in Kazakhstan, the South Sumatra – West Java pipeline project for PGN, Indonesia, the Kandla – Bhatinda oil pipeline for IOC in India, the Dahej -Vijaipur gas pipeline project for GAIL, the Uran Trombay oil pipeline project for ONGC, the Mangalya-Bijwasan pipeline project for BPCL and the Pune-Sholapur pipeline project of HPCL. Punj Lloyd Limited believes it is one of the few engineering construction companies to have laid 48 inches diameter gas pipelines and to have laid pipelines in shallow water and swampy or marshy terrain.

Punj Lloyd Limited has also undertaken several significant tank and terminal projects including the LNG storage and regasification terminal for the Dabhol project, the LNG storage tank project for Shell at Hazira, tanks for the bulk liquid products terminal for Horizon in Singapore, tank projects for PB Tankers in Singapore, tank projects of GASCO for Bechtel in Abu Dhabi, water storage tanks projects for Technip's Fujairah water and power project and the tank farm project for the Jamnagar refineries for RIL. Punj Lloyd Limited believes it is one of the few engineering construction companies internationally to have in-house capability to provide comprehensive mechanical fabrication, erection, pre-stressed wall construction and insulation works for LNG tanks.

Punj Lloyd Limited has also successfully completed or are working on EPC contracts for various process facility projects including phase IV of the Peciiko development project in Indonesia, the Vis-breaker unit and sulphur block at the CPCL refineries for Petrofac, the MSQ upgradation project for IOC at Haldia in India and the sulphur and utilities package for Siirtech Nigi at the IOC refinery at Guwahati in India. Punj Lloyd Limited is also executing the off-sites and utilities (piping and mechanical erection) project of GASCO for Bechtel in Abu Dhabi and is working on two contracts for 2 X 250 MW thermal power plant stations for Jindal Power Limited at Raigarh in India as well as a contract for BHEL for 2 X 60 MW thermal power plant stations of PT Merak Energi Indonesia.  

In the infrastructure sector, Punj Lloyd Limited's assignments include the six/four-lane approximately 77 km Belgaum - Maharashtra highway, the four–lane approximately 62 km Rajasthan RJ-8 highway, the four-lane approximately 32 km Vadodara – Halol toll road project as well as the Thiruvananthapuram city and road improvement project.

Punj Lloyd Limited's key strengths as one of the largest engineering construction companies in India with a strong international presence are its significant experience and strong track record, ability to manage operations in diverse industries and economies, long term relationships with world-class clients, strong operational results and ability to mobilise financial resources and its highly qualified and motivated employee base and proven management team.

Manpower

Punj Lloyd is a people-driven enterprise. Delivering on their mission requires people who are determined, dynamic, dedicated and share the company’s core business values and its passion for quality.

Punj Lloyd’s innovative and diverse workforce has the will not just to take on challenges but to see them through. Their approach to excellence is focussed. Working in the scorching desert sun, fierce monsoons, or at temperature extremes ranging from –45° Celsius to +45° Celsius are all in a day’s work.

With diverse projects spread all over the world, the company's engineers have generated multi-disciplinary skills and a wide range of experience in project management and execution.

As of March, 2006 the Punj Lloyd team comprised about 1850 employees of which 31 per cent are engineers and 28 per cent hold engineering diplomas. Their hunt for talent is however an unending quest.

Punj Lloyd wins contract for Dabhol - Panvel Pipeline Project (DPPL) from GAIL
Order Valued at Rs 1642.400 Millions

New Delhi, July 4, 2006

Punj Lloyd Limited has been awarded the contract for Dabhol - Panvel Pipeline Project (DPPL) from GAIL. The value of the contract is Rs 1642.400 Millions on EPC basis.

The scope of work broadly involves residual engineering, procurement, installation, testing and commissioning of Panvel-Dabhol 30 dia pipeline system from GAIL's station, installation at Panvel to Dabhol terminal including terminal work, temporary and permanent cathodic protection system, intermediate SV/IP/repeater/tap-off stations, crossings by Horizontal Directional Drilling (H.D.D) and all associated mechanical, civil, structural, electrical, instrumentation work and laying of optical fibre cable, HDPE duct, etc excluding supply of line pipe, which shall be supplied as free issue material by GAIL.

Comprising two parts, the project involves the laying of the 30” dia pipeline in 113 km length from Panvel to upstream of Savitri river crossing in 2 spreads and a length of 74 km from upstream of Savitri river crossing to Dabhol terminal. This pipeline will pass through some of the steepest slopes in the country.

Other facilities include a receipt cum despatch terminal at Dabhol, sectionalising valve stations and intermediate pigging station with a tap-off facility.

fast track project, the scheduled time for completion is within 10 and half months from the date of contract, it is worth mentioning that PLL in the past had bagged part of the Dahej-Uran Pipeline Project from GAIL.

About Punj Lloyd

Punj Lloyd is amongst the largest engineering and construction companies in India providing integrated design, engineering, procurement, construction and project management services for energy and infrastructure sector projects with operations spread across many regions in the Middle East, Caspian, Asia Pacific, Africa and South Asia . With a presence in 14 countries, Punj Lloyd has executed as many as 180 projects: onshore and offshore pipelines, cryogenic tanks and terminals, process plants, highways, bridges, railways and infrastructure services, plant & facility management and power plants. The Company has recently acquired a majority stake in SembCorp Engineers & Constructors , a Singapore $ 1 billion company. Punj Lloyd also went in for a JV in Saudi Arabia and will form ‘Dayim-Punj Lloyd Engineering Limited'

Punj Lloyd announces Annual Results

New Delhi, June 26, 2006

Engineering and construction major, Punj Lloyd Limited (PLL) has recorded consolidated income of Rs 17165.900 Millions and net profit of Rs 554.600 Millions for the financial year 2005-06. This is against consolidated income of Rs 19203.200 Millions and net profit of Rs 1006.000 Millions in the previous fiscal.

The EBIDTA (Earnings before interest, depreciation, taxes and amortisitation) for the fiscal was Rs 2228.000 Millions as against Rs 336.7 crore in the previous fiscal. The EBITDA margin in FY06 was 12.98%.

On the expanded equity of Rs 522.100 Millions, the basic EPS works out to Rs 12.74 while diluted EPS works out to Rs 12.06. The board of directors have recommended a dividend of 10% for FY06, subject to the approval of shareholders.

The management expects that in the current fiscal, PLL (other than SembCorp Engineers & Constructors) would be able to generate income between Rs 35000.000 Millions to Rs 37500.000 Millions with similar EBITDA margins.

The lower turnover in FY06 was on account of slow progress in obtaining Right of Way (RoW) for road orders worth Rs 12000.000 Millions in Rajasthan and Assam . This has since been obtained and the effect of the same would be evident in current fiscal.

During the year, PLL had a cautious bidding approach and consciously avoided BOT and annuity projects. This has been reflected in the improved quality of the order book, which would translate into increased revenue in the current fiscal.

“The stakeholders would be pleased to note that they started the last fiscal with an order backlog of Rs 12270.000 Millions and they have ended the fiscal with an order book of Rs 42820.000 Millions . As of this date, they are holding unexecuted orders worth Rs 55020.000 Millions. They have a geographically and segment-wise diversified order backlog, which reduces overall business risk. Over 37% of their order backlog is now represented from projects based outside India . I would like to emphasize that their project schedules are maintained and most of the delays are behind us”, said Mr Atul Punj, CMD, PLL.

The last financial year was marked by several landmarks. PLL successfully raised Rs 5848.600 Millions through an IPO and US $ 125 million through FCCBs (Foreign Currency Convertible Bonds), reflecting confidence of international institutional investors and domestic investors in us.

Two notable events in the recent past have been acquisition of SembCorp Engineers & Constructors, a Singapore $ 1 billion company and Dayim-Punj Lloyd, a JV with His Royal Highness Prince Khalid Bin Bandar Bin Sultan of Saudi Arabia. These would be the building blocks for Punj Lloyd, whose impact would be seen, beginning this year.

SembCorp ( in which PLL has 88% stake) would be complementing PLL in offering complete portfolio of EPC solutions which now include airports, jetties, MRT/LRT, tunneling, sewerage, water treatment, land reclamation, high spec buildings, process facilities for petrochemicals and refineries, pharmaceutical, nuclear and power. SembCorp Engineers has been primarily in engineering and procurement services while PLL is primarily a construction company. With the acquisition, PLL group will be able to provide single point EPC solutions for all business segments in which the group is present. There would be lot of offshoring opportunities from SembCorp as it shifts its high cost activities to India . Over 1000 experienced engineers including about 200 in UK would get added to the group's talent pool.

Dayim- Punj Lloyd would focus on urban infrastructure, township development etc. apart from onshore and offshore EPC contracts in Kingdom of Saudi Arabia . The infrastructure opportunity in Saudi Arabia for the Punj Lloyd Group would get additional fillip with SembCorp being part of the group.

“With the increased bandwidth coupled with immense opportunities in the construction space, I am confident that PLL will become amongst the largest EPC companies in the world. They are grateful to all their stakeholders, who have increased their confidence by reposing their faith in us”, said Mr Atul Punj, CMD, PLL.

Forward - Looking Statements:- This report contains forward –looking statements, which may be identified by their use of words like ‘plans', ‘expects', ‘will', ‘anticipates', ‘believes', ‘intends', ‘projects', ‘estimates' or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the company's strategy for growth, market position, expenditures, and financial results, are forward –looking statements. Forward -looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realized. The company's actual results, performance or achievements could thus differ materially from those projected in any such forward - looking statements. The company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

About Punj Lloyd

Punj Lloyd is amongst the largest engineering and construction companies in India providing integrated design, engineering, procurement, construction and project management services for energy and infrastructure sector projects with operations spread across many regions in the Middle East, Caspian, Asia Pacific, Africa and South Asia. With a presence in 14 countries, Punj Lloyd has executed as many as 180 projects: onshore and offshore pipelines, cryogenic tanks and terminals, process plants, highways, bridges, railways and infrastructure services, plant & facility management and power plants. The Company has recently acquired a majority stake in SembCorp Engineers & Constructors , a Singapore $ 1 billion company. Punj Lloyd also entered into a JV with Saudi Prince to form ‘Dayim-Punj Lloyd Engineering Limited'. Punj Lloyd JV has recently bagged an order worth Rs. 428 crore for the completion of Dabhol LNG Terminal

Punj Lloyd JV bags Rs 1420.000 Millions order from Delhi Metro

New Delhi, June 21, 2006

Punj Lloyd Limited., along with its joint venture partner, Persys, has bagged a Rs 1420.000 Millions project from Delhi Metro Rail Corporation (DMRC) for the Inderlok – Mundka Corridor of Phase-II.

Persys is a Malaysian construction company with whom Punj Lloyd had successfully completed the DMRC project earlier as well. This project involves design and construction of elevated via-duct of 4.784 km length including structural work of four elevated stations - Nangloi, Nangloi Railway station, Rajdhani Park, Mundka on Inderlok -Mundka corridor of phase II. The project would be completed within 30 months from the date of its starting.

Punj Lloyd had earlier completed a 6.3 km long Flyover between Kirti Nagar and Tilak Nagar as a part of CP-Dwarka Corridor in Phase-I of DMRC. It involved construction of a Metro Corridor over the existing Raja Garden flyover at a record height of 17 meters from ground, a unique feat for construction companies in India. The pile foundation work in the project had been challenging considering several existing underground utilities and round-the-clock traffic movement in congested areas.

About Punj Lloyd

Punj Lloyd is amongst the largest engineering and construction companies in India providing integrated design, engineering, procurement, construction and project management services for energy and infrastructure sector projects with operations spread across many regions in the Middle East, Caspian, Asia Pacific, Africa and South Asia. With a presence in 14 countries, Punj Lloyd has executed as many as 180 projects: onshore and offshore pipelines, cryogenic tanks and terminals, process plants, highways, bridges, railways and infrastructure services, plant & facility management and power plants. The Company has recently acquired a majority stake in SembCorp Engineers & Constructors , a Singapore $ 1 billion company. Punj Lloyd also entered into a JV with Saudi Prince to form ‘Dayim-Punj Lloyd Engineering Limited'. Punj Lloyd JV has recently bagged an order worth Rs. 4280.000 Millions for the completion of Dabhol LNG Terminal.

Press release

Punj Lloyd wins contract for Dabhol - Panvel Pipeline Project (DPPL) from GAIL

Punj Lloyd announces Annual Results

Punj Lloyd JV bags Rs 1420.000 Millions order from Delhi Metro

Punj Lloyd on order acquisition spree

Bags another order from RIDCOR valued at Rs 3020.000 Millions

Punj Lloyd takes over

SembCorp Engineers & Constructors, Singapore

Punj Lloyd bags contract worth Rs 1380.000 Millions

Construction of Spread 1 of Dahej-Uran Pipeline Project from GAIL

Punj Lloyd joins hands with Kingdom of Saudi Arabia

New jointly-owned company - "Dayim-Punj Lloyd Engineering Limited"

Punj Lloyd Limited. to raise US$ 125 million through Foreign Currency Convertible Bonds

Punj Lloyd announces award of Rs 860 million multi-speciality hospital building structure project and updates financial information.

PLN Construction

PLN Construction Limited. is a subsidiary of Punj Lloyd Limited., specialising in Horizontal Directional Drilling. Active in the Indian market since 1997, PLN has executed crossings totalling 25,700 mtrs. It has laid pipelines under expressways, railways, rivers and canals. The company owns 2 x 250 T rigs, which can handle crossings upto 56” dia.

Significant Projects

• The longest HDD crossings in India i.e. 1700 and 1770 metres at the Krishna-Godavari basin on the eastern coast of India for GAIL India
• Longest crossings in India to pull 42” dia pipeline i.e. 1041 metres at Tapi River near Surat for ONGC
• Have crossed almost all the perennial rivers of India

PUNJ LLOYD INSULATIONS

Over the years PLIL has completed a diverse range of prime insulation projects. These industrial, hospitality and residential projects - executed for leading international as well as Indian clients and consultants - have varied in scale and complexity. Meticulous planning, precision engineering, global materials’ sourcing, and comprehensive project management, backed by an inherent regard for health, safety and environment are the main reasons for this division’s exceptional achievements.

A subsidiary of the Punj Lloyd Group specialising in insulation technologies, it's areas of expertise extend from thermal insulation to waterproofing to acoustic treatment to refractory and acid - resistant lining.

Some of PLIL’s key assignments include complex insulation projects for the hydrocarbon processing, cryogenic (ammonia, PP/LPG, LNG terminals), pharmaceutical, metallurgical, power and other continuous process industries, hotels/resorts and residential buildings.

SPECTRA PUNJ LLOYD

Specialised company for renting the equipment to construction industry was formed in the year 1985. This company helps the Punj Lloyd operations by hiring in at competitive rates when the captive asset base cannot meet the total requirement and facilitates hiring out in case of certain assets being under utilised.

Punj Lloyd to build Expanded Capacity Fuel System of NDIA

Order valued at Rs 258.000 Millions

New Delhi, March 21, 2007

Punj Lloyd Limited (PLL), a global EPC services provider in energy and infrastructure domains, has received approval of extension of their existing contract with New Doha International Airport (NDIA).  The extension will enhance the capacity of the fuel system to take care of phase II expansion of the new airport. The extension order is valued at Rs 258.000 Millions. With this approval, the contract value for the extended scope becomes Rs 618.000 Millions.

The new contract with extension involves the engineering, procurement and construction of fuel farm, fuel receiving station, jet fuel hydrant system, ground service equipment fuel system, ground service equipment washing system, portable water station and operation office, parking facility for hydrant dispenser vehicles, triturator facility, special fuel system equipment, special systems in building / facilities (BMS/CCTV) etc. The project would be completed by December 2008.

Punj Lloyd is at an advanced stage of completing engineering phase for the fuel system and Client’s approval of extension of the contract reinforces the confidence of project management consultant, Overseas Bechtel Inc. in Punj Lloyd.

About Punj Lloyd Limited

Punj Lloyd (BSE SCRIP ID: PUNJLLOYD, NSE SYMBOL: PUNJLLOYD), is the second largest engineering and construction companies in India providing integrated design, engineering, procurement, construction and project management services for energy and infrastructure sector projects with operations spread across many regions in the Middle East, Caspian, Asia Pacific, Africa and South Asia.

About New Doha International Airport

Qatar’s mega project, The New Doha International Airport (NDIA) with its ultimate development is to be fully operational by 2015 with a 50 million passenger capacity. Initial phase is going to begin operations in 2009 to cater to 24 million passengers and 750,000 tonnes of cargo per year. The new facility will set a new standard in airport and airline efficiency, passenger convenience and service standards. As the new home for Qatar Airways, it is envisioned to become a major international gateway to the region.

Punj Lloyd 9M FY2007 revenue Rs. 34,861 million

Revenue more than double as compared to full FY 2006

Editor’s Synopsis

Consolidated Net Income of Rs 34,861 million for 9MFY07

Consolidated EBITDA of Rs 2,667 million for 9MFY07

Profit after Tax of Rs 1,080 million for 9MFY07

Punj Lloyd Group order backlog of Rs 143,579 million as on 31/12/06.

Sembawang E&C becomes 100% subsidiary of Punj Lloyd

New Delhi, January 29, 2007

Punj Lloyd Limited (PLL), a global EPC services provider in oil, gas and infrastructure domains, has recorded consolidated income of Rs 34,861 million and net profit of Rs 1,080 million for the first nine months of FY 07. This is as against consolidated income of Rs 17,166 million and net profit of Rs 540 million for FY 2005-06. The sharp growth in revenues has been driven by increased order book and by revenue contribution from Sembawang Engineers and Constructors, Singapore and its Subsidiary Simon Carves, UK. On a consolidated basis, EBITDA for 9MFY2007 improved to Rs. 2,667 million as against Rs 2,061 million for full fiscal 2005-06. The basic earnings per share (EPS) (not annualized) for 9MFY2007 stood at Rs 20.68.

For Q3FY07 Punj Lloyd has recorded consolidated income of Rs 14,635 million and net profit of Rs 483 million. On a consolidated basis, EBITDA for Q3FY2007 stood at Rs 1,133 million. The basic earnings per share (EPS) (not annualized) for Q3FY2007 stood at Rs 9.25.

Commenting on the Company’s performance for 9M & Q3FY07, Mr Atul Punj, Chairman, Punj Lloyd Limited., said, " The benefits of Sembawang acquisition have started flowing in with the group winning a prestigious US$290 million order from ONGC. The acquisition helped us meet ONGC’s stringent pre-qualification criteria.  A whole new gamut of opportunities have opened for the Group, which were hitherto not coming their way due to prequalification criteria. A complete portfolio of EPC solutions with airports, jetties, MRT/LRT, tunneling, sewerage amongst others as their capabilities in infrastructure domain would help us improve their order book and improve their profitability. The average ticket size of the orders is on the rise, implying sufficient execution capability with available resources. 

Order book update

As on December 31, 2006, Punj Lloyd Group had an order backlog of Rs 143,579 million compared to Rs 46,268 million as on December 31, 2005. This is the total value of unexecuted orders as on the corresponding date. The expansion in order book has been led by multiple contracts won by the Group over the past few months.

The average ticket size of the orders now stands at Rs 2,565 million as against Rs 1,521 million a year ago.

In terms of geographical contribution, the Company’s current order backlog comprises of 45% domestic contracts and 55% international contracts, with 68% of the backlog being related to projects to be executed in South/ South East Asia, 26% in the Middle East and Africa and 6% in the rest of the World.

From the application perspective, of the Company’s total backlog on 31 December 2006, 15% represents petrochemicals; 54% represents oil and gas and 31% represents civil, infrastructure and power.

During Q3FY2007, the Company procured several new contracts including Heera Redevelopment Project on an EPC basis from Oil & Natural Gas Corporation Limited (ONGC) for an approx consideration of Rs 12,887 million, contract by Horizon Terminals Limited, U.A.E., a large contract for construction of a LDPE plant in Thailand, an EPC order worth Rs 8,030 million for the Doha Urban Pipeline Relocations Projects (DUPRP) from Qatar Petroleum and contracts for IOC's Refinery project valued at Rs 13,432 million.

About Punj Lloyd Limited

Punj Lloyd (BSE SCRIP ID: PUNJLLOYD, NSE SYMBOL: PUNJLLOYD), is amongst the largest engineering and construction companies in India providing integrated design, engineering, procurement, construction and project management services for energy and infrastructure sector projects with operations spread across many regions in the Middle East, Caspian, Asia Pacific, Africa and South Asia. Sembawang E&C became a wholly owned subsidiary of Punj Lloyd in Q3FY07. Following this, the group also unveiled its new corporate identity.

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.43.39
UK Pound	1	Rs.85.16
Euro	1	Rs.57.60

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--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		48

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/normal.	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, we have no basis upon which to recommend credit dealings	No Rating

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