MIRA INFORM REPORT

Report Date :

05.10.2007

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) :	31.03.2007
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 lying 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 records. 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 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
Corporate Office 1:	78, Institutional Area, Sector 32, Gurgaon – 122 001, Haryana, India
Tel. No.:	91-124-2620123
Fax No.:	91-124-2620111
Corporate Office 2:	95 Institutional Area, Sector 32, Gurgaon – 122 001, Haryana, India
Tel. No.:	91-124-2620123
Fax No.:	91-124-2620777
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
Factory :	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
Branches :	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

DIRECTORS

Name :	Mr. Atul Prakash Punj
Designation :	Chairman and 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 and 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 and 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 lying 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 and 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 :

Over 6000

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 and Kashmir Bank Limited

v Mashreq Bank PSC

v Oriental Bank of Commerce

v Punjab National Bank

v Punjab and 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

v Allahabad Bank

v Arab Bank plc

v Bank Muscat

v Canara bank

v Centurian bank of Punjab

v Central Bank of India

v Citibank N A

v Commercial Bank of Qatar

v DBS Bank Limited

v Deutsche Bank AG

v Development Credit Bank Limited

v Doha Bank

v Dubai Islamic Bank

v Export Import Bank of India

v Federal Bank Limited

v HDFC Bank Limited

v HSBC Bank Middle East limited

v Indian Bank

v Mashreq Bank psc

Facilities :

SECURED LOANS	As on 31.03.2007 Rs. in Millions
SHORT TERM WORKING CAPITAL LOAN ACCOUNT
FROM BANKS	5728.240
Out of the above, i) Rs. 124.546 Millions is secured by way of first charge on pan passu basis on current assets (excluding Receivables) and second charge on pari passu basis on movable fixed assets of the project division of the Company and further secured by personal guarantee of Chairman and Managing Director of the Company. ii) Rs. 975.037 Millions is secured by way of first charge on pari passu basis on current assets (excluding Receivables) and second charge on pari passu basis on fixed assets of the project division of the Company. iii) Rs. 562.217 Millions is secured by way of exclusive charge on the receivables of the specific projects financed by the respective bank, first pari passu charge on the current assets of the project division (excluding receivables) and pari passu second charge on the movable fixed assets of the project division of the Company and further secured by personal guarantee of Chairman the Company. iv) Rs. 2567.909 Millions is secured by way of exclusive charge on the receivables of the specific projects financed by the respective banks, first pari passu charge on the current assets pf the project division (excluding receivables), and pari passu second charge on the movable fixed assets of the project division of the company. v) Rs. 494.038 Millions in respect of a foreign subsidiary is secured by lien over the subsidiary’s trade receivables (existing and project specific) and some part of building, land, inventory, machinery and motor vehicles. The loan is further secured by corporate guarantee of the parent Company and pledge of certain trade receivables, inventories and fixed assets of the subsidiary. vi) Rs. 452.306 Millions in respect of a foreign subsidiary is secured by hypothecation of equipment and machinery. The loan is further secured by corporate guarantee of the parent company vii) Rs. 50.260 Millions in respect of an Indian subsidiary is secured by hypothecation by way of charge on inventories both on hand and in transit, book debts, other receivables (both present and future) and charge on all the fixed assets of the subsidiaries except those acquired under hire purchase agreements. The loans are further secured by corporate guarantee of the parent Company. viii) Rs. 13.487 Millions in respect of an Indian subsidiary is secured by hypothecation of raw-materials, work-in-progress, finished goods and sundry debtors of the subsidiary. ix) Rs. 117.211 Millions in respect of a foreign subsidiary is secured by indirect assignment of contract receivables under a project. x) Rs. 0.507 Million in respect of a joint venture is secured by hypothecation by way of charge on inventories both on hand and in transit, book debts and other receivables (both present and future) of the joint venture. The loan is further secured by corporate guarantee foreign joint venture partner. xi) Rs. 370.719 Millions in respect of a joint venture is secured by ▫ Tangible and movable properties (including plant and machinery) both present and future. ▫ Annuity revenues and receivables (excluding bonus for early completion) ▫ All project agreements, all guarantees, performance guarantees or bonds, letters of credit, applicable permits, plant rights, titles, approvals, permits, clearances and interest under the project Agreement. ▫ Intangible assets including but not limited to goodwill ▫ All bank accounts including Trust and Retention Account and all monies from time to time deposited therein and all permitted Investments or other securities representating all amounts credited to the Trust and Retention Account.
ON TERM LOAN ACCOUNT
FROM BANKS	4682.147
Out of the above: i) Rs. 1007.412 Millions is secured by way of exclusive charge on the equipment purchased out of the proceeds of loan. ii) Rs. 1737.974 Millions is secured by way of first pari passu charge on movable fixed assets of the project division of the Company iii) Rs. 476.480 Millions is secured by way of first pari passu charge on movable fixed assets of the project division of the Company and further secured by personal guarantee of Chairman of the company. iv) Rs. 263.994 Millions is secured by way of exclusive charge/ mortgage by way of deposit of title deeds of the land and building for corporate office at Gurgaon v) Rs. 64.602 millions is secured by way of pari passu first charge on the movable fixed assets of the project division of the Company, pari passu 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 of the Company. vi) Rs. 79.935 Millions is secured by way of second pari passu charge on the movable fixed assets of the project division of the Company and further secured by personal guarantee of Chairman of the Company. vii) Rs. 249.840 Millions is secured by way of pari passu first charge on the movable fixed assets of the project division of the Company and pari passu second charge on current assets of the project division of the company (excluding receivables of the Company) viii) Rs. 500.000 Millions is secured by way of subservient charge on the entire current and movable fixed assets of the project division of the Company. ix) Rs. 221.817 Millions in respect of a foreign subsidiary is secured by lien over the subsidiary’s trade receivables and some part of building, land, Inventory, machinery and motor vehicles. The loan is further secured by corporate guarantee of the parent company.
FROM OTHERS	593.638
Rs. 593.638 is secured by first and exclusive charge by way of hypothecation on certain specific equipments financed through the loan.
HIRE PURCHASE LOANS
FROM OTHERS	291.84213.2412
(Secured by exclusive charge by way of hypothecation on certain specific equipments.)
EXTERNAL COMMERCIAL BORROWINGS FROM BANK	14.591
(Secured by exclusive charge on the equipment of the Company financed through the loan)

Unsecured Loans

Particulars	As on 31.03.2007 Rs. in Millions
Short term Working Capital Loans from Banks	78.388
Term Loan Account from banks	240.000
Intercorproate Deposits	4.164
External Commercial Borrowings from Banks	13.995
Zero Coupon Foreign currency Convertible Bonds	5422.500
Other Loans	1.180
Total	5760.227

Banking Relations :	Satisfactory
Auditors :
Name :	S. R. Batliboi and Company Chartered Accountants
Memberships :	Confederation of Indian Industry
Associates/Subsidiaries :	˜ PLN Construction Private Limited Subject is a subsidiary of company, specializing in Horizontal Directional Drilling. Active in the Indian market since 1997, PLN has executed crossings totaling 23,027 meters. 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 meters 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 meters 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 and 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 Specialized 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 specializing 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		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		522.521	522.198	252.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12266.566	10113.488	4434.900
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		12789.087	10635.686	4687.200
LOAN FUNDS
1] Secured Loans		11231.857	3460.109	4529.800
2] Unsecured Loans		5760.227	629.355	1168.400
TOTAL BORROWING		16992.084	4089.464	5698.200
DEFERRED TAX LIABILITIES		683.216	558.192	0.000
TOTAL		30522.956	15283.342	10385.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12471.524	4614.973	4202.100
Capital work-in-progress		709.984	771.792	142.900
Preoperative Expenditure		147.928	47.847	0.000
INVESTMENT		1698.474	1244.085	548.600
DEFERREX TAX ASSETS		322.326	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15016.674	6261.853	2319.174
	Sundry Debtors	12233.876	3784.834	1572.491
	Cash & Bank Balances	10026.796	732.759	302.356
	Other Current Assets	510.574	109.903	0.000
	Loans & Advances	4461.774	1951.436	1786.127
Total Current Assets		42249.694	12840.785	8920.500
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	25430.336	4030.117	2465.153
	Provisions	1646.889	206.023	963.547
Total Current Liabilities		27077.225	4236.140	3428.700
Net Current Assets		15172.469	8604.645	5491.800
MISCELLANEOUS EXPENSES		0.251	0.000	0.000
TOTAL		30522.956	15283.342	10385.400

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		51265.783	13682.149	14294.286
Other Income		793.706	348.213	499.862
Total Income		52059.489	14030.362	14794.148
Profit/(Loss) Before Tax		2649.923	562.919	114.943
Provision for Taxation		689.602	211.449	33.511
Profit/(Loss) After Tax		1960.321	351.470	81.432
Export Value		NA	5127.058	6554.861
Imports :
	Stores & Spares	NA	485.354	172.163
	Capital Goods	NA	445.811	0.000
Total Imports		NA	931.165	172.163
Expenditures :
	Administrative Expenses	30790.233	7765.226	9208.692
	Raw Material Consumed	16372.752	4517.011	3775.000
	Other Expenditure	2246.581	593.306	1061.591
Total Expenditure		49409.566	12875.543	14045.283

SUMMARISED RESULTS

PARTICULARS	30.06.2007 (1^st Quarter)
Sales Turnover	7068.500
Other Income	155.200
Total Income	7223.700
Total Expenditure	6342.700
Operating Profit	881.000
Interest	269.300
Gross Profit	611.700
Depreciation	253.000
Tax	131.900
Reported PAT	212.000

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt Equity Ratio	0.90	0.64	1.68
Long Term Debt Equity Ratio	0.81	0.43	1.49
Current Ratio	2.17	1.91	1.90
TURNOVER RATIOS
Fixed Assets	2.75	1.95	2.31
Inventory	2.74	2.76	4.76
Debtors	4.67	4.05	6.29
Interest Cover Ratio	2.41	1.85	1.03
Operating Profit Margin (%)	11.43	11.97	12.09
Profit Before Interest and Tax Margin (%)	7.58	7.78	7.29
Cash Profit Margin (%)	6.65	6.42	4.98
Adjusted Net Profit Margin (%)	2.80	2.23	0.18
Return on Capital Employed (%)	8.16	8.76	11.46
Return on Net Worth (%)	5.72	4.12	0.77

LOCAL AGENCY FURTHER INFORMATION

Milestones

1985 – 1^st Pipeline Project (Bombay-Pune, India

1992 – 1^st overseas Contract (Balongan – Jakarta Product Pipeleine, Indonesia)

1993 – 1^st Middle East Contract (Jarn Yaphour Field Development, Abu Dhabi)

1994 – Longest stretch of pipeline 557 km (Kandla- Bhatinda, India)

1995 – 1^st EPC Contract in oil and gas sector (Gas Field Development, India)

1996 – 1^st overseas pipeline contract in swamp and shallow water (Tunu Field Development EPSC 4 and 5, Indonesia), 1^st overseas EPC pipeline contract in offshore (Balongan-Jakarta Product Pipeline, Indonesia)

1999 – 1^st road project (Vadodara – Halol Tollway, India)

2002 – Entry into Caspian region (KAM Pipeline, Kazakhastan)

2004 – EPC tank contract in Asia Pacific (Bulk Liquid Terminal, Singapore)

2005 – 1^st Thermal power project (Jindal, India)

2006 – Added hi-spec building and urban infrastructure like airports, jetties, Mass Rapid Transit, Light Rail Transit (MRT/LRT) systems, hotels, resorts, golf clubs etc with the acquisition of Sembawang

Added polymers and petrochemicals, chemicals, biofuels, nuclear power with the acquisition of Simon Carves Entered into new region (Libya)

2007 – 1^st offshore platform (Heera Redevelopment, India)

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 lying 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 and 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 and 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 and 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 Private 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 

Total Revenue of the Company rose by 64.32 percent from Rs. 14,030.36 million in financial year (FY) 2005-06 to Rs. 23,054.78 million in FY 2006-07. The profit before interest, depreciation and tax (PBIDT), increased by 54.69 percent from Rs. 1622.81 million in FY 2005-06 to Rs.2, 510.36 million in FY 2006-07. 

During the year, the unsecured loans of the Company have increased from Rs. 629.36 million to Rs. 5,754.98 million primarily due to issuance of USD 125 million, Zero Coupon Foreign Currency Convertible Bonds (FCCB) in April 2006. The secured loans have also increased during the year from Rs.

3,475.30 million to Rs. 9,431.42 million due to the additional working capital required for execution of various new projects being undertaken by the Company. Interest charges have also increased from Rs. 467.99 million to Rs. 692.42 million as result of increased borrowings and higher interest rates owing to revision in PLR. 

The Profit before tax (PBT) has increased by 72.91 percent from Rs. 562.92 million in FY 2005-06 to Rs. 973.33 million in FY 2006-07 and the Profit after tax (PAT) has increased by 75.22 percent from Rs. 351.47 million in FY 2005-06 to Rs. 615.84 million in FY 2006-07. 

BUSINESS REVIEW 

A detailed business review is being given in the Management Discussion and Analysis section of the annual report. 

SUBSIDIARY COMPANIES AND JOINT VENTURES 

Subsidiaries 

During the year under review, the Company has through its wholly owned subsidiary in Singapore viz Punj Lloyd Pte. Ltd., acquired 100% stake in SembCorp Engineers & Constructors (SEC), a wholly-owned subsidiary of SembCorp Industries (SCI) which is a leading utilities and marine group in Asia. The SEC Group is a major design-and-build engineering and construction service provider with core capabilities encompassing heavy civil engineering, building and process and plant engineering and its experience spans across 35 countries. The SEC Group has contributed significantly to the top line of consolidated results of the Company as its revenues for the ten months period ended March 31, 2007 was Singapore Dollars 744 million (approx. Rs. 21520 million). This acquisition will help the Company in achieving its objective of becoming a top global EPC Company with an increasing scale of operations.

Simon Carves Ltd., U.K., a subsidiary of SEC is a well known and established process engineering contractor and offers full range of process design and engineering services to various industries worldwide and provides end to end solutions including basic and detailed engineering, front end engineering design, procurement services, construction and construction management services. Simon Carves has a strong order book, which will form a strong business platform for 2007-08 and on into following year. 

For the purpose of integrating the engineering expertise of the Company with that of its two recent acquisitions viz. Sembawang Engineers & Constructors and Simon Carves, UK, a new Company - Simon Carves India Limited has been incorporated in India as a Wholly Owned Subsidiary of the Company for carrying out back office engineering activities for the Punj Lloyd Group in India. In addition to the above, Simon Carves India Limited shall provide design and engineering services to all types of industries/ sectors including oil & gas, infrastructure, etc. 

After the closure of current financial year, two new wholly owned subsidiaries i.e. Punj Lloyd Upstream Limited and Punj Lloyd Infrastructure Limited have been incorporated to carry on the business of drilling in the fields of oil exploration and promoting and developing SEZs respectively. 

The process of winding up of Punj Lloyd Inc., a wholly owned subsidiary (WOS) in US and Punj Lloyd (Malaysia) Sdn. Bhd., WOS in Malaysia are in progress and will be completed on receipt of necessary clearance from the appropriate authorities of the respective countries. 

On an application by the Company under section 212(8), the Central Government has vide its letter No. 47/78/2007-CL-III dated March 6, 2007 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, 2007. 

A statement in respect of each of the subsidiaries, 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 this report. 

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. 

Joint Ventures 

During the year under review, the Company has entered into a joint venture with Swissport International, one of the world leaders in ground handling services. In terms of the Joint Venture Agreement with Swissport, a new company in the name of Swissport Punj Lloyd India Pvt. Ltd.' has been incorporated with equity participation in the ratio of 51:49 by Swissport and the Company respectively. Leveraging on Swissport's brand and know-how and Punj Lloyd's local expertise, both partners will take advantage of this joint venture to develop projects in the Indian ground handling sector. 

The Company has also entered into a joint venture with KAEFER GmbH, Germany, a world leader in the insulation business. In terms of the above joint venture, KAEFER GmbH has acquired 51% stake in Punj Lloyd Insulations Limited, a Wholly Owned Subsidiary of the Company. Consequent to the above acquisition, the name of Punj Lloyd Insulations Limited' has been changed to KAEFER Punj Lloyd Limited'. This joint venture will open avenues for developing innovative insulation solutions for various applications. 

HEALTH, SAFETY AND ENVIRONMENT (HSE) 

As a rapidly growing engineering and construction contractor with presence in different global locations with diverse cultures and operations in remote locations, Punj Lloyd strives to minimize accidents and occupational risks through systematic assessment and control of hazards by providing training to employees and subcontractors. HSE considerations are put at the forefront of everything our employees do - whether designing oil storage tank farm or constructing that facility.

To protect health of their employees and of subcontractors' employees in their activities, for last several years we have deployed an Occupational Health & Safety policy based on identifying and managing risks. We strongly encourage the adoption of Occupational Health, Safety and Environmental Management System as an integral part of their operations. Risk assessment methodology and criteria has been distributed to all their sites. Identified high and medium risks are managed through action plans covering prevention, protection, and employee information and education initiatives. Punj Lloyd believes in holding regular HSE programs to develop and enhance competency of employees.

Punj Lloyd recognizes that with leadership comes great responsibility and that future generations are relying on us to protect and preserve the natural environment. We promote environmental management by managing their operations in a responsible way. Their key environmental monitoring parameters are energy efficiency, spill prevention and waste management.

Reaffirming their commitment to fighting HIV/AIDS, world aids day is celebrated organization wide. We have selected Medicity Site at Gurgaon, Haryana in association with SNS Foundation to focus on four main areas viz.

Information and awareness, prevention, promotion of voluntary confidential testing and free treatment. 

As a key management control process, periodically we are audited internally and by internationally renowned third party Det Norske Veritas (DNV) in accordance with internationally recognized protocols of Occupational Health & Safety Management System (OHSAS 18001) and Environment Management System (ISO 14001). 

Pursue goal of no harm to employees and Sub contractors, Reduce risk as low as reasonably possible, Minimize pollution in construction activities by efficient use of non-renewable resources and optimizing fuel consumption, Reduce waste generation and reusing the materials wherever possible are their main HSE objectives

MANAGEMENT DISCUSSION AND ANALYSIS 

Economic Overview 

India's GDP grew at 9.4 per cent in 2006-07; it’s highest in recent times.

This comes on the back of an equally robust 9 per cent growth recorded in the last fiscal. 

GDP growth in 2006-07 was essentially led by the manufacturing sector, which grew by 12.3 per cent (compared to 9.1 per cent in 2005-06). Growth in the Services sector too witnessed acceleration (up from 9.8 per cent in fiscal 2005-06 to 11 per cent in 2006-07). 

The twin engines of this robust growth have been investments and consumption, both of which, given their current trend, appear well poised for an encore in 2007-08.

 Foreign direct investment increased to USD 16,000 million and exports recorded an impressive growth of 23.9 per cent to USD 124,600 million in 2006-07. Foreign exchange reserves continued their ascent and crossed the USD 200,000 million marks. 

With India's per capita disposable income currently at USD 556 per annum and expected to double by 2015, the Indian economy appears set to maintain its momentum in the future. Strong corporate performance combined with a conducive microenvironment is reflecting a healthy uptrend in the secondary market. 

The infrastructure sector has been expanding significantly. The overall index of six core infrastructure industries that largely reflect the undercurrent of the economy, registered a robust growth of 8.6 per cent in 2006-07, compared to a 6.2 per cent increase in 2005-06. 

The Government is actively pursuing Public Private Partnerships (PPPs) to bridge the infrastructure deficit in the country. Several initiatives have been taken to promote PPPs in sectors like power, ports, highways, airports, tourism and urban infrastructure. 

The outlook going forward remains optimistic although the growth rate may rationalize owing to a higher base, hardening of interest rates and an unpredictable scenario of energy and commodity prices. 

BUSINESS SEGMENTS

Oil & Gas 

Punj Lloyd provides comprehensive engineering, procurement and construction services to the Oil and Gas sector which includes the setting up of complex storage tanks and terminals, refinery and process facilities, cross-country oil and gas pipelines, offshore pipelines and platforms. 

Pipelines

Today, Punj Lloyd is the leading pipeline contractor in Asia with a significant international presence. The Company is an all terrain specialist having laid pipelines in the most demanding and challenging areas around the world. 

With global demand for energy rising at a rapid pace along with substantial discoveries of gas, the need to transport crude oil and gas for refining, storage and transportation has increased manifold. There are numerous major pipeline projects being planned and built across the globe. According to Simdex, an agency that monitors pipeline projects across-the-globe, total pipeline projects planned over the next few years totaled 246,473 km., as of May 2007. Given the rising demand, and therefore higher investments in the Asian region led by India and China, pipeline investments in Asia dominate with a 33 per cent share in total pipeline projects. 

 Punj Lloyd has laid in excess of 8,000 km. of cross-country pipelines for hydrocarbons and water services. The Company has the resources, experience and expertise to provide EPC solutions for pipeline projects upto 56' in diameter in terrains such as deserts, rain forests, rocky and marshy areas.

The Company's fleet of equipment includes shallow water pipe laying barge, a push pull pipe laying barge, 4 Nos. of HDD rigs of capacity upto 400mt and 11 Automatic Welding Stations (a technology introduced by Punj Lloyd), 160 Side Booms and more than 200 excavators. 

In India, an increase in the domestic demand for energy, the recent discovery of large oil and gas reserves in various parts of the country and the Government's decision to permit oil retailing by the private sector have led to the demand for a huge pipeline network covering the whole nation. Companies like GAIL and Reliance Industries plan to make investment in the region of Rs. 300,000 million in a pipeline grid across the country that will stretch 10,000 km. Other companies such as IOCL, ONGC, HPCL, BPCL and Gujarat State Petronet have announced similar plans.

Punj Lloyd's core competence and experience in laying pipelines, give it an enviable position in the energy transportation business. The Company is currently executing five major pipeline construction works in India alone.

For 2006-07, Punj Lloyd bagged onshore orders worth Rs. 5,932 million and an offshore pipeline order worth Rs. 13,037 million. The offshore pipeline order is for the Heera Redevelopment project from ONGC. The project involves design and detailed engineering and off-shore installation of 4 Wellhead Platforms, 57 Km Rigid Pipeline, and a 10.5 Km Flexible Pipeline. 

Further, the Company's experience and technological acumen led to a rise in new pipeline laying orders, especially from the Middle-East and its first ever order from a new market - North Africa. Punj Lloyd received an order of USD 290 million from Sirte Oil Company, Libya, on an EPC basis, which is the largest single contract ever won by the Company. 

Storage Tanks and Terminals 

The market for LNG has been growing at a tremendous pace spanning all the continents. Within the Indian region, growth in LNG demand is strong and expected to stay strong through the next decade owing to increasing demand for electricity and for industrial usage. New projects have led to a boom in the LNG market and resultantly for setting up storage tanks and terminals. Transportation of Oil & Gas has also spurred the setting up of storage tanks and terminals. 

Punj Lloyd is an acknowledged storage system EPC company having successfully executed projects in India and abroad. The client list includes major public sector undertakings, Oil & Gas majors and multinational engineering & construction companies. Till date the Company has built in excess of 6 million cubic meters of storage capacities. Punj Lloyd Group's experience in tankage and terminals extends from the construction of cryogenic to floating and fixed roof storage tanks for oil, gas, and water, and EPC capabilities, including insulation in LNG Tanks.

The Company leverages its in-house project management and EPC capabilities to take on tank and terminal mega projects. 

Process Plants 

Proven capabilities in turnkey & composite construction have made Punj Lloyd a leader in the process plant engineering, procurement and construction business. Oil and gas companies require various process facilities in the production and refining of oil and gas and derivative products. 

The Company's clients have recognized Punj Lloyd's track record in delivering plants which provide guaranteed performance and demonstrate high reliability, low maintenance requirements and low overall life cycle costs. 

 The Company has a chain of successful projects on portfolio, in the Indian sub-continent, Middle East, South East Asia, and CIS countries. Punj Lloyd's acquisitions of Sembawang Engineers and Constructors Pte Ltd and Simon Carves Ltd has added significantly to its processing capabilities and increased its scale of operations. 

Consolidated list of Major Domestic Projects under execution and awarded to Punj Lloyd Group during the year:  

Name of the Project Value of Project (INR Mn) 

PIPELINES

 Dahej-Hazira-Uran Pipeline Project, GAIL 1371.97 

Backwater & Onshore Pipeline For Crude 399.81 

Oil Receipt Facilities Project, KRLFabrication & Lying of 750NB & 400 NB 86.95 

Pipelines by HDD method, KRLDabhol-Panvel Pipeline Project, GAIL 1642.40 

Uran-Trombay Gas Pipeline Project, 2419.63ONGC 

Power

India's power sector is a potential high growth area. With an installed generation capacity of 123 GW, generation of more than 600,000 million kwh, and a transmission & distribution network of more than 6.3 million circuit kms, India has today emerged as the fifth largest power market in the world compared to its previous position of eighth in the last decade.

Yet the industry continues to be characterized by power shortages. Although power generation capacity has increased in recent years, it has not kept pace with the growth in demand. The Government of India has set a goal to supply power for all by 2012'. The investment requirement for the sector is projected at over USD 300,000 million and the mission to supply power to all would require a 75% increase in India's installed generation capacity from the present level of 123,000 MW to at least 200,000 MW by 2012. 

To meet this goal, the Government has envisaged a manifold increase in the role of the private sector in the financing and operations of the power sector. The opportunities are large in scale and many large private domestic companies are pursuing investments in the power sector. 

Ultra mega Power projects are being launched by both public and private entities. Respective State utilities are launching new power projects in their states with the objective of providing adequate power to the urban and rural houses. 

Punj Lloyd is engaged in EPC services for the complete civil works, electrical systems, mechanical packages, controls and instrumentation of power plants. The Company provides competitive and optimized solutions for these works on turnkey basis which includes all facets of engineering, procurement and construction. 

 The Company's engagements in the power sector today comprise more than 200,000 engineering hours and almost 5 million construction man hours.

A prestigious contract secured in 2005-06 of 4 x 250MW Thermal Power Plant Station for Jindal Power Ltd., at Raigarh is nearing completion. The Company has achieved significant milestones on the project. These includes steel fabrication & erection of 14,500 MT completed in 15 months, 6,000 pile foundation completed in 5 months, and 125,000 cubic meters of concreting completed in 18 months. 

This year the division has secured a large turnkey power plant construction project, a Greenfield 2 x 250 MW power station in Rajasthan. This EPC project is worth Rs. 8,230 million. 

Further, with the acquisition of Sembawang E&C and Simon Carves, Punj Lloyd is qualified to bid for larger power projects.

Consolidated list of Major Projects under execution and awarded to Punj Lloyd Group during the year: Name of the Project Value of Project (INR Mn) 

POWER

Civil contract from Jinal Power. Raigarh 2328Power Project, 4 x 250 MW ThermalPower Plants, Raigarh. 

 EPC contract from Rajasthan Rajya 8230Vidyut Utpadan Nigam Ltd. ChhabraThermal Power Project, 2 x 250 MWPower Plants, Rajasthan. 

Infrastructure

Punj Lloyd provides EPC services for various infrastructure projects, which include buildings, highways, flyovers, bridges, elevated railroads, metro rail stations and underground tunnels. 

At present, in the domestic market, Punj Lloyd is working on twelve highways, an elevated metro rail viaduct, and a multispecialty hospital. 

In India, infrastructure development has accelerated and is witnessing unprecedented growth across various segments. The sector is estimated to grow at a CAGR of 15 per cent over the next few years. The construction sector is expected to be the biggest beneficiary of the infrastructure boom. The opportunity in the construction sector carries great potential with USD 124,650 million of investments committed over the next five years. 

 The growth in the infrastructure sector is being driven by a host of factors, which include reform programs undertaken by the Government to enhance investments, infrastructure project funding from multi-lateral agencies like the World Bank and Asia Development Bank and increased private participation. Roads, power, and airports are expected to see rapid growth in the near future because of initiatives of the Indian Government to increase private investments in these sectors.

Roads

The Government's focus on improving road quality and road connectivity has brought about significant investments in road development. The Government has set forth a National Highway Development Plan (NHDP) to upgrade India's road infrastructure. The total estimated cost of this plan is USD 50,000 million by 2012. 

As per the National Highways Authority of India (NHAI), a total of 23,546 kms of roads is to be constructed in the next two years. 

Ports

India has 12 major ports and 185 minor ports spread across nine coastal states. Indian ports handle 90 percent of India's total foreign trade in terms of volume. 

The Government has set a goal of USD 150,000 million for exports by the year 2008-09 to double India's share in world exports. As a result, the ports require capacity expansion on a large scale. 

The setting up of the National Maritime Development Programme (NMDP) is an initiative towards enhancing the present capacity and modernizing the existing ports. Under the programme, several projects are to be completed over the next few years. These include projects related to port development (construction of jetties, berths etc.); procurement, replacement or upgradation of port equipment; and deepening of channels. 

The estimated investment for the projects is USD 13,500 million.

Airports

With the advent of low cost carriers and air travel becoming more affordable, air traffic in India is witnessing rapid growth. Passenger traffic has grown at an average of nine percent over the last ten years.

The domestic passenger segment is likely to grow at 12 per cent per annum over the next few years. 

In the past, Indian airports have suffered owing to poor infrastructure and several constraints. In line with its objective of developing world class airports, the Government is inviting private participation for developing existing airports and building new ones. 

In addition to the upgradation of metro city airports, thirty-five non-metro airports have been identified for development by the Government. The total investment in Indian airports is estimated to be USD 5,070 million over the next five years.

Metro Rail Projects 

Indian cities have been experiencing rapid growth in population in the last few decades. The result is extreme congestion on roads, fuel wastage and environmental pollution amongst others. To rectify the situation, the Government of India is introducing the rail based Mass Rapid Transit system (MRTs) in major cities like Delhi, Hyderabad, Calcutta and Bangalore. The Delhi Metro Rail Project is already under implementation.

The total investment envisaged in these projects is USD 5,700 million. 

Punj Lloyd is well placed with a robust order book in the infrastructure segment. Further, with the acquisition of Sembawang E&C, the Company expects to receive high-value orders in international markets, particularly in the Asia Pacific and Middle East regions. 

Broadband and Turnkey Telecom Solutions 

The Broadband division of the Company provides an array of services that include corporate and retail broadband internet, Internet data centre, managing and maintenance of optic fiber build out and other value added services. The over 20,000 satisfied customers are spread over segments like BPOs, ITES, Telco, SOHOs, SMEs and Households, across the NCR, Bangalore and Mumbai. 

The Broadband division has taken multiple initiatives to face the challenges of a dynamic technological environment. The robust fiber infrastructure has been further expanded to approx 100Km. in Delhi and the NCR with Ghaziabad, Faridabad, Rohini and Greater NOIDA added to the list.

The Company has entered into Bandwidth purchase contracts of 10 years as part of its international capacity and to reduce cost of purchase. 

The division has launched Wi - Fi (Wireless Fidelity) broadband, using radio waves, enabling provision of ready to use internet without wires at Hot Spots such as hotels, education centers, hospitals etc. On WiMax side the division has been allocated the 12 MHz Frequency spectrum in the 3 GHZ Band. WiMax technology is easy to deploy, delivers Non LOS services from a base station to subscribers and is used to fill up the dark area zones. At present deployment of WiMax technology is in progress in Delhi and Bangalore. The division has ordered Metro Ethernet equipment of 1000 Mb ring giving increased capacity and higher uptime due to failover ring architecture. 

 In a challenging and competitive environment, the division has carved out a niche for itself and is driving forward with a multi pronged strategy by enhancing the Corporate ISP business, boosting retail sales, expansion of Internet data centre services, and developing the auxiliary business stream - Wi- Fi/Wimax, VPN. 

Sembawang Engineers and Constructors Private Limited

The acquisition of Sembcorp E &C (now Sembawang Engineers and Constructors) has widened subject’s canvas and not only deepened its presence in existing markets but also given it access to develop new markets. Because of the acquisition, subject’s average ticket size of orders is on the rise, implying sufficient execution capability with available resources.

Subject’s capabilities now include airports, jetties, mass rapid transport/ light railtransport, hi-spec buildings and tunneling amongst others, in the infrastructure domain. Enabled by extended capabilities, subject is now also pre-qualified for larger and more complex project bids.

The Heera Development Project order received from Oil and Natural Gas Commission (ONGC) in January 2007 is an example of such a successful bid as PT Sempec, a Sembcorp E & C Company that won the order possessed the necessary qualifications to bid for the project.

Amongst its recent projects, Sembawang Engineers and Constructors is also building the villas for Riffa Golf and Residential Development Company of the Kingdom of Bahrain at a cost of Rs. 5.42 billion.

Simon Carves Limited

Simon Carves, founded in 1881, has provided its clients over 125 years of professional excellence. It offers a full range of process design and engineering services to the oil, gas and downstream chemical engineering industry worldwide and provides end-to-end solutions including basic and detailed engineering, front end engineering design, procurement services, and construction services, Simon Carves has completed over 4000 capital projects to date in 50 countries.

Simon Carves has strong petrochemical sector capabilities with a global leadership position in all types of polymerization processes particularly for LDPE and HDPE.

Amongst its many achievements, Simon Carves has built more than 350 Sulphuric acid plants worldwide.

The company is currently working on a LDPE project in Teesside, UK. This design is based on state-of-the-art technology and when built, will be the largest single stream LDPE plant in the world, producing 400000 tonnes of product per year.

Simon carves has also received an order from the Ensus Group to design and construct the world’s largest wheat based bio-ethanol production facility in England.

Fixed Assets

Land

Buildings

Leasehold Improvements

Plant and Machinery

Furniture, Fixtures and Office Equipments

Tools

Vehicles

Software

Goodwill Arising on Consolidation

Technical Know-how

Capital Work-in-Progress

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 accreditations such as the ISO 9001:2000 QMS, the ISO 14001:1996 EMS and the OHSAS 18001:1999 OHSMS from Det Norske Veritas.

Subject 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 modernization 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.  

Subject 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.

Subject 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.

Subject 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.

Subject’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 mobilize 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 focused. 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 dispatch terminal at Dabhol, sectionalizing 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 and facility management and power plants. The Company has recently acquired a majority stake in Semb Corp Engineers and 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 has 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 and 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, and 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 and 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 and facility management and power plants. The Company has recently acquired a majority stake in SembCorp Engineers and 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 an 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 and facility management and power plants. The Company has recently acquired a majority stake in SembCorp Engineers and 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 and 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., specializing 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 specializing 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

Specialized 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

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

v Consolidated EBITDA of Rs 2,667 million for 9MFY07

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

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

v 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 and 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 has 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. 

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. 39.56
UK Pound	1	Rs. 80.30
Euro	1	Rs. 55.76

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