MIRA
INFORM REPORT
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Report Date : |
25.10.2008 |
IDENTIFICATION DETAILS
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Name : |
PUNJ LLOYD LIMITED |
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Registered Office : |
Punj Lloyd House, 17-18, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
26.07.1988 |
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Com. Reg. No.: |
55-33314 |
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CIN No.: [Company
Identification No.] |
U74899DL1988PLC033314 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELP08758B |
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PAN No.: [Permanent
Account No.] |
AAACP0305Q |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
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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
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 120000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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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
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Registered Office / Corporate office 1 : |
Punj Lloyd House, 17-18, Nehru Place, New Delhi - 110 019, India |
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Tel. No.: |
91 11 2620
0123 |
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Fax No.: |
91 11 2620
0111 |
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E-Mail : |
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Website : |
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Corporate Office 2 : |
Office 95, Institutional Area, Sector – 32, Gurgaon – 122001, Haryana,
India |
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Tel No.: |
91-124-2620493 |
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Fax No.: |
91-124-2620111 |
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E-Mail: |
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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 |
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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 |
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Factory: |
78, Industrial Area, Sector 32, Gurgaon – 122001, India |
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Tel. No.: |
91-124-2620123 |
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Branches : |
South
Asia Banmore Industrial Area, Banmore
Asia Pacific
25 Central Asia Punj Lloyd Kazakhstan LLP Punj Lloyd – LIMAK JV Office 213,
Business- center «M-Style Office» Middle East PO Box 28907, 1206 Al Gaith Tower
Europe
Africa Jamel
Ben Amor - Regional Director Maghreb and Africa
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DIRECTORS
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Name : |
Mr. Atul Prakash Punj |
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Designation : |
Chairman and Managing Director |
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Address : |
10, Prithviraj Road, New Delhi – 110 011 |
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Date of Birth/Age : |
1958 |
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Qualification : |
B. Com (Hons) |
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Experience : |
26 Years |
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Date of Appointment : |
01.07.1998 |
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Previous Employment |
Own Business |
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Name : |
Mr. Vimal Kishore Kaushik |
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Designation : |
Managing Director and Chief
Operating Officer |
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Address : |
S-27/1-D, DLF Qutab Enclave Phase – III, Gurgaon – 122 002, Haryana |
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Date of Birth/Age : |
22.11.1947 |
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Qualification : |
B. E. (Elec.) |
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Experience : |
35 years |
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Date of Appointment : |
01.11.1998 |
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Previous
Employment |
Punj Group |
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Name : |
Mr. Luv Chhabra |
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Designation : |
Wholetime Director |
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Address : |
H-16/4, DLF, Phase – 1, Gurgaon, Haryana |
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Date of Birth/Age : |
48 Years |
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Qualification : |
B. Tech., MBA |
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Experience : |
26 years |
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Date of Appointment : |
01.07.2001 |
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Previous
Employment |
KEC International
Limited |
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Name : |
Mr. Karamjit Singh Butalia |
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Designation : |
Non-executive Director |
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Name : |
Mr. Alain Aboudharam |
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Designation : |
Independent Director |
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Name : |
Mr. Keith Nicholas Henry |
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Designation : |
Independent Director |
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Name : |
Dr. Naresh Trehan |
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Designation : |
Independent Director |
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Name : |
Mr. Rajan Jetley |
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Designation : |
Independent Director |
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Name : |
Mr. Scott R. Bayman |
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Designation : |
Director |
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Name : |
Mr. Sanjay Gopal Bhatnagar |
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Designation : |
Independent Director |
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Name : |
Mr. Pawan Kumar Gupta |
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Designation : |
Director |
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Name : |
Mr. Mehar Karan Singh |
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Designation : |
Independent Director |
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Name : |
Mr. Nitin Malhan |
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Designation : |
Non-Executive Director |
KEY EXECUTIVES
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Name : |
Mr.
Dinesh Thairani |
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Designation : |
Company Secretary |
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Shareholders/ Investors Grievance Committee: |
Mr. Naresh Kumar Trehan Mr. Atul Jetley Mr. Luv Chhabra |
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Audit Committee: |
Mr. Naresh Kumar Trehan Mr. Rajan Jetley Mr. Sanjay Gopal Bhatnagar Mr. Niten Malhan |
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Remuneration Committee: |
Mr. Naresh Kumar Trehan Mr. Rajan Jetley Mr. Sanjay Gopal Bhatnagar Mr. Niten Malhan |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2008
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoters and Promoter
Group |
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Indian |
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Individuals/ Hindu Undivided Family |
35561311 |
11.72 |
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Bodies Corporate |
21976950 |
7.24 |
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Foreign |
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Individuals (Non- Resident Individuals/
Foreign individuals) |
1430540 |
0.47 |
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Bodies Corporate |
75691430 |
24.94 |
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Public
Shareholdings |
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Mutual Funds/ UTI |
55277079 |
18.22 |
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Financial Institutions/ Banks |
3151216 |
1.04 |
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Foreign Institutional Investors |
44104189 |
14.53 |
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Foreign Venture Capital Investors |
9675851 |
3.19 |
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Non
Institutions |
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Bodies Corporate |
19709196 |
6.49 |
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Individuals - |
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i. Individuals shareholders holding
nominal share capital up to9 Rs. 0.100 Million |
23948550 |
7.89 |
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ii. individual shareholders holding
nominal share capital in excess of Rs. 0.100 Million |
7425529 |
2.45 |
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Any
other (specify) |
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Clearing Members |
2764300 |
0.91 |
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Trusts |
38775 |
0.01 |
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NRIs |
2709572 |
0.89 |
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Foreign National |
112 |
0.00 |
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Total |
303464600 |
100.00 |
BUSINESS DETAILS
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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. |
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Products : |
v
Construction and Project
Related Activities and Engineering Services v
Pressures vessels silencing
equipment |
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Exports : |
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Countries : |
South Korea,
Australia and Malaysia |
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Imports : |
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Countries : |
USA, Japan, UK
and Holland |
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Terms : |
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Selling : |
Contract terms |
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Purchasing : |
Cash, Contract,
L/C and Credit (60 days) terms |
GENERAL INFORMATION
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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 |
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No. of Employees : |
1463 |
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Bankers : |
v
AXIS Bank v
ABN Amro Bank NV v
Arab Bank plc Bahrain v
Bank Muscat SAOG, Oman v
BNP Paribas, Abu Dhabi v
Barclays Bank plc v
Canara Bank v
Central Bank of India v
Citi Bank NA v
DBS Bank Limited v
Deutsche Bank AG v
Development Credit Bank Limited v
Doha Bank, Qatar v
Dubai Islamic Bank PJSC, Abu Dhabi v
Emirates Bank International PJSC, Abu Dhabi v
Export - Import Bank of India v
Federal Bank v
First Gulf Bank, Abu Dhabi v
HDFC Bank Limited v
HSBC Bank Middle East Limited, Dubai v
ICICI Bank Limited v
IDBI Bank Limited v
Indian Bank v
International Finance Corporation, Washington DC v
Indian Overseas Bank v
IndusInd Bank v
ING Vysya Bank v
Jammu and Kashmir Bank Limited v
Kotak Mahindra Bank Limited v
Mashreq Bank psc, Dubai v
Oriental Bank of Commerce v
Punjab National Bank v
Standard Chartered Bank v
State Bank of India v
State Bank of Bikaner and Jaipur v
State Bank of Hyderabad v
State Bank of Indore v
State Bank of Mysore v
State Bank of Patiala v
UCO Bank v
Union National Bank, Abu Dhabi v
United Bank of India v
Vijaya Bank v
Yes Bank |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. R. Batliboi and Company Chartered Accountant |
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Joint Venture: |
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 |
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Memberships : |
Confederation of
Indian Industry |
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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 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 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 |
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350000000 |
Equity Shares |
Rs.2/- each |
Rs.700.000
millions |
|
10000000 |
Preferences Shares |
Rs.10/- each |
Rs.100.000
millions |
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Total |
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Rs.800.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
303446081 |
Equity Shares |
Rs. 2/- Each |
Rs.606.892
Millions |
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OF THE ABOVE i) 136,700 equity shares of Rs. 10 each
were allotted as fully paid up pursuant to a contract for consideration other
than cash, ii) 28,615,239 equity shares of Rs. 10
each were allotted as fully paid up bonus shares by capitalisation of
profits, iii) During the previous year, the Company
had converted 917,928 zero percent convertible preference shares of Rs. 10
each into 3,098,296 equity shares of Rs. 10 each, iv) The Company
has sub-divided nominal value of its equity shares from Rs. 10 each to Rs. 2
each on March 6, 2007.Consequently, the number of authorised issued, subscribed and paid up equity shares have
increased accordingly. |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
606.892 |
522.521 |
522.198 |
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2] Share Application Money |
254.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
23538.816 |
10519.670 |
10113.488 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
24399.708 |
11042.191 |
10635.686 |
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LOAN FUNDS |
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1] Secured Loans |
11148.444 |
9431.416 |
3460.109 |
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2] Unsecured Loans |
2528.040 |
5754.983 |
629.355 |
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TOTAL BORROWING |
13676.484 |
15186.399 |
4089.464 |
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DEFERRED TAX LIABILITIES |
763.548 |
606.083 |
558.192 |
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TOTAL |
38839.740 |
26834.673 |
15283.342 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
9894.344 |
8512.212 |
4614.973 |
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Capital work-in-progress |
928.476 |
40.336 |
771.792 |
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Preoperative Expenditure |
0.000 |
0.000 |
47.847 |
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INVESTMENT |
7277.555 |
3177.973 |
1244.085 |
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DEFERREX TAX ASSETS |
1.085 |
0.124 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
15051.481
|
11628.361
|
6261.853
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Sundry Debtors |
9639.672
|
5615.052
|
3784.834
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Cash & Bank Balances |
2144.231
|
3379.007
|
732.759
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Other Current Assets |
812.473
|
510.129
|
109.903
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Loans & Advances |
7452.308
|
6163.963
|
1951.436
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Total
Current Assets |
35100.165
|
27296.512
|
12840.785
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
13635.104
|
11895.088
|
4030.117
|
|
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Provisions |
726.781
|
297.396
|
206.023
|
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Total
Current Liabilities |
14361.885
|
12192.484
|
4236.140
|
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Net Current Assets |
20738.280
|
15104.028
|
8604.645
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
38839.740 |
26834.673 |
15283.342 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
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Sales Turnover |
45417.563 |
23054.778 |
13682.149 |
|
|
Other Income |
0.000 |
0.000 |
348.213 |
|
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Total Income |
45417.563 |
23054.778 |
14030.362 |
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Profit/(Loss) Before Tax |
3409.501 |
973.331 |
562.919 |
|
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Provision for Taxation |
1195.075 |
357.485 |
211.449 |
|
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Profit/(Loss) After Tax |
2214.426 |
615.846 |
351.470 |
|
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Earnings in Foreign Currency : |
|
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|
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Total Earnings |
NA |
NA |
5127.058 |
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Imports : |
|
|
|
|
|
|
Stores & Spares |
NA |
NA |
485.354 |
|
|
Capital Goods |
NA |
NA |
445.811 |
|
Total Imports |
NA |
NA |
931.165 |
|
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|
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Expenditures : |
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|
|
|
|
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Administrative Expenses |
0.000 |
0.000 |
7765.226 |
|
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Raw Material Consumed |
16253.630 |
5904.187 |
4517.011 |
|
|
Contract Charges |
9963.084 |
4972.087 |
0.000 |
|
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Other Operating Expenses |
5080.684 |
3833.139 |
0.000 |
|
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Salaries, Wages and other employee benefits |
3475.743 |
2340.220 |
0.000 |
|
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Managerial Remuneration |
109.513 |
25.413 |
0.000 |
|
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Interest |
1132.517 |
692.421 |
0.000 |
|
|
Depreciation |
1133.872 |
844.605 |
0.000 |
|
|
Auditor’s Remuneration |
18.945 |
17.630 |
0.000 |
|
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Bad debts/ Advances written off/ provision for
Doubtful Receivables |
79.875 |
98.371 |
0.000 |
|
|
Other Expenditure |
4759.902 |
3353.374 |
593.306 |
|
Total Expenditure |
42008.062 |
22081.447 |
12875.543 |
|
QUARTERLY RESULTS
|
PARTICULARS
|
|
|
30.06.2008 1st Quarter |
|
Sales Turnover |
|
|
15585.800 |
|
Other Income |
|
|
256.700 |
|
Total Income |
|
|
15842.500 |
|
Total Expenditure |
|
|
14009.600 |
|
Operating Profit |
|
|
1832.900 |
|
Interest |
|
|
321.500 |
|
Gross Profit |
|
|
1511.400 |
|
Depreciation |
|
|
274.200 |
|
Tax |
|
|
332.300 |
|
Reported PAT |
|
|
841.200 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt Equity Ratio |
0.82 |
0.90 |
0.64 |
|
Long Term Debt Equity Ratio |
0.70 |
0.60 |
0.43 |
|
Current Ratio |
1.96 |
1.73 |
1.91 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
4.09 |
2.28 |
1.95 |
|
Inventory |
3.62 |
2.81 |
2.76 |
|
Debtors |
5.89 |
4.83 |
4.05 |
|
Interest Cover Ratio |
4.01 |
1.97 |
1.85 |
|
Operating Profit Margin (%) |
12.63 |
12.52 |
11.97 |
|
Profit Before Interest and Tax Margin (%) |
10.10 |
8.77 |
7.78 |
|
Cash Profit Margin (%) |
7.45 |
6.49 |
6.42 |
|
Adjusted Net Profit Margin (%) |
4.93 |
2.74 |
2.23 |
|
Return on Capital Employed (%) |
14.21 |
9.67 |
8.76 |
|
Return on Net Worth (%) |
12.63 |
5.72 |
4.12 |
LOCAL AGENCY FURTHER INFORMATION
History:
The Company was incorporated in September 26th of the year 1988
as Punj Lloyd Engineering Private Limited. While it started operations with
pipelines, followed by tanks and terminals, refineries, power and civil
infrastructure, the company has grown rapidly to augment its portfolio to
include a whole gamut of services ranging from Upstream, Midstream to
Downstream segments of the energy sector, to petrochemicals, chemicals,
biofuels, utilities and buildings. PLL is a transnational company specialising
in the energy and infrastructure sectors. The Company provides integrated
design, engineering, procurement, construction and project management services.
Its operations spread across the Middle East, Africa, the Caspian, Asia Pacific
and South Asia. PLL holds an ISO 9001:2000, ISO 14001:1996 and OHSAS 18001:1999
certifications. The Company extends EPC services ranging from Oil and Gas,
Refineries, Civil Infrastructure, Thermal Power, Asset Management and Telecom
and Broadband.
During the year 1989, the company name was renamed as Punj Lloyd Private
Limited and subsequently became Public Limited in 1992. Again the name was
changed to the present name Punj Lloyd Limited. In the same year PLL wins its
first overseas pipeline contract in Indonesia. A year back, the company gets it
first Middle East contract for field development in 1993. During the year 1999,
the company forayed into first Road project, Vadodara-Halol Tollway, India. PLL
got the chance for entry into the Caspian with KAM pipeline, Kazakshtan in the
period of 2002. In 2004, the company bagged EPC Tank contract in Asia Pacific,
Bulk Liquid Terminal of Singapore. PLL's first Thermal Power Plant, Jindal,
India came to existence in the year 2005. During the year 2006, PLL acquired
the Singapore-based Sembawang and Simon Carves, UK. The Company had entered
into the strategic Joint Venture (JV) agreements with Swissport International
for ground and cargo handling, Dayim in Saudi Arabia for oil and gas and
infrastructure and KAEFER of Germany for insulation.
The Company launched new brand identity to its own. In the same year 2006, PLL
added the petrochemicals, engineering, buildings and urban infrastructure
projects like airports, jetties, Mass Rapid Transit, Light Rail Transit System,
hotels, resorts, to its portfolio. To address the opportunities in the
Integrated Drilling Services market, the company incorporated Punj Lloyd
Upstream Limited in April of the year 2007. PLL made Joint venture agreement
with the Pipavav Shipyard for offshore and shipbuilding and also made JV with
Ramprastha Group to forge into Real Estate Development during the year 2007.
Punj Lloyd has been awarded a $400-million (INR 11192.000 Millions) contract by
Marina Bay Sands Pte Limited thorough its wholly-owned subsidiary company Sembawang
Engineers and Constructors Pte Limited (Sembawang EandC) in February 2008 to
construct and build the North Podium of Marina Bay Sands integrated resort
comprising the casino, theatres and retail arcade in Singapore. During June of
the year 2008, The Company has acquired a strategic 74% stake in Technodyne
International Limited, Eastleigh, UK for an undisclosed amount. PLL has signed
an agreement, to divest interests in its ISP division to a JV formed between
Shyam Group, the promoters of Shyam Telelink, a nationwide unified service
access licensee and Spanco Telesystems and Solutions Limited (SPANCOe).
The Company has secured a Rs 6490.000 Millions contract for the Motor Spirit
Quality (MSQ) Upgradation Project of Indian Oil Corporation Limited at Barauni
Refinery, Bihar. PLL has signed a collaboration agreement with Singapore
Technologies Kinetics Limited (ST Kinetics), for the manufacture of defence
equipment during the month June of the year 2008.
Subject is on the way to achieving its vision of being among the top five
global companies of the world in the segments and markets where the company
serve during the upcoming years.
CAPITAL
STRUCTURE:
During the year, the share capital of the Company was
changed /altered as follows:
a) 334,476 equity shares of Rs. 2/- each were allotted to employees under
ESOP 2005 and ESOP 2006 of the Company;
b) 12,251,270 equity shares of Rs. 2/- each were allotted on conversion
of Foreign Currency Convertible Bonds: and
c) 29,600,000 equity shares of Rs. 2/- each were allotted to Qualified
Institutional Buyers under Chapter XIIIA of SEBI (DIP) Guidelines, 2000 as
amended from time to time.
Pursuant to the provisions of Chapter XIII of SEBI (DIP) Guidelines, 2000 as
amended from time to time on Preferential Issues and approval of shareholders,
the Company allotted 10,000,000 warrants to M/s Indtech Construction Private
Limited, a promoter Company. Each warrant gives a right to the holder to apply
for one equity share of the Company at a price of Rs.254/- per share.
OPERATIONS
REVIEW
Total Revenue of the Company rose by 97 percent from Rs. 23054.78
million in financial year (FY) 2006-07 to Rs. 45417.56 million in FY 2007-08.
The profit before interest, depreciation and tax (PBIDT), increased by 126
percent from Rs. 2510.36 million in FY 2006-07 to Rs. 5676.18 million in FY
2007-08.
The unsecured loans of the Company have declined to Rs. 2528.04 million as on
March 31, 2008 from Rs. 5754.98 million as on March 31, 2007. The secured loans
however, have increased from Rs. 9431.42 million as on March 31, 2007 to Rs.
11148.44 million as on March 31, 2008 owing to the additional working capital
required for execution of various new projects being undertaken by the Company.
Financial charges during the year have increased from Rs. 1001.16 million to
Rs, 1540.63 million as a result of higher interest rates owing to revision in
PLR of banks.
The Profit before tax (PBT) has increased by 250 percent from Rs.973.33 million
in FY 2006-07 to Rs. 3409.50 million in FY 2007-08 and the Profit after tax
(PAT) has increased by 260 percent from Rs. 615.84 million in FY 2006-07 to Rs.
2214.43 million in FY 2007-08.
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
During the year, three new companies Punj Lloyd Upstream Limited, Punj Lloyd
Infrastructure Limited and Punj Lloyd Aviation Limited were incorporated as
wholly owned subsidiaries (WOS) in India to carry on the business of drilling
for exploration of oil and gas, promoting and developing Special Economic Zones
and investment in real estate and aviation respectively.
Also during the year, a strategic joint venture partner was inducted in Punj
Lloyd Upstream Limited. The Company, through its WOS, Punj Lloyd Infrastructure
Limited forayed into real estate sector by entering into a 50:50 Joint Venture
with Ramprastha Group.
Punj Lloyd Inc., a WOS in United States of America and Punj
Lloyd (Malaysia) Sdn. Bhd., a WOS in Malaysia were wound up.
On an application by the Company under Section 212(8), the Central Government
vide its letter No. 47/1 73/2008-CL-lll dated March 24, 2008 has 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,
2008.
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 as well as
the Corporate Office of the Company between 11.00 A.M. to 1.00 P.M. on all
working days.
MANAGEMENT
MANAGEMENT DISCUSSION AND ANALYSIS
This is given as a separate chapter in this Annual Report.
DISCLOSURE REQUIREMENTS
�� Disclosures on materially significant
related party transactionsare given in the Notes to Accounts attached to the
BalanceSheet.
�� During last three years, there has been no
non-compliance by the Company and no penalties, strictures are imposed on the
Company by the Stock Exchanges, or SEBI or any statutory authority on any
matter related to capital markets.
�� The Company has complied with all the
mandatory requirements of Clause 49 of the Listing Agreement and it has set up
a remuneration committee and adopted Whistle Blower Policy under non mandatory
requirements.
SHAREHOLDERS
RE-APPOINTMENT OF DIRECTORS
1.
Dr. NARESH KUMAR TREHAN
Dr. Naresh Kumar Trehan, (61), an Indian national is a
renowned cardiovascular and cardiothoracic surgeon. He graduated and completed
his internship from King George Medical College and subsequently obtained a
diploma from the American Board of Surgery and the American Board of
Cardiothoracic Surgery in the United States. Dr. Trehan was the Founder,
Executive Director and Chief Cardiovascular Surgeon of the Escorts Heart
Institute and Research Centre, New Delhi for 20 years. At present, Dr. Trehan
is the Senior Cardiovascular and Thoracic Surgeon at Apollo Hospitals, New
Delhi and also Chairman, Global Health Private Limited (popularly known as
Medicity, Gurgaon). Dr. Trehan has received many prestigious awards, including
the Padma Shree and the Padma Bhushan Award, presented by the Government of
India.
Dr. Trehan is also a Director of Dabur Pharma Limited,
Jubilant Organosys Limited, Shrumps Real Estate Limited, Kingfisher Airlines
Limited, Afsan Health Resorts Private Limited, Dr. Naresh Trehan and Associates
Health Services Private Limited, Howden Insurance Brokers India Private
Limited, Globerian India Private Limited, Global Health Private Limited, Raksha
TPA Private Limited, Trasa Investments Private Limited, Wah India Private
Limited and Naresh Trehan Holdings Private Limited
Dr. Trehan is Chairman of Shareholders/Investors
GrievanceCommittee and Audit Committee, Punj Lloyd Limited And Member of
Remuneration Committee, Punj Lloyd Limited
Dr. Trehan, hold 4000 equity Shares of Rs. 2/- each in the
Company jointly with his wife.
Mr. LUV CHHABRA
Mr. Luv Chhabra, (51), an engineering graduate from IndianInstitute
of Technology, Delhi and MBA from the Faculty of Management Studies, Delhi
University, joined Punj Lloyd in 2001 with his rich experience of around three
decades in the oil and gas and construction sectors.
Mr. Chhabra started his career with Bharat Petroleum, moving
to join Bharat Shell in 1996 as Deputy Managing Director. In Bharat Shell, he
played a key role in major projects, besides being responsible for the Finance
and Accounts for the company and operations of the lubricants blending plant.
In 1997, Mr. Chhabra joined Petronet India Limited as
Managing Director where he was responsible for setting it up as a financial
holding company for joint ventures that constructed and operated liquid
hydrocarbon pipelines on the principle of common carrier. Before joining Punj
Lloyd, he was the Managing Director of KEC International Limited, a global
leader in turnkey design, engineering and construction of high voltage
transmission system, where he supervised company’s projects in over 10 countries
in the Middle East, South East Asia, Indian sub-continent and African region.
In Punj Lloyd, Mr. Chhabra has been handling Corporate
Affairs and playing a key role in furthering the Company’s business. Mr.
Chhabra’s vast experience stands the Company in good stead while closing
financing arrangements and strategic ventures.
Mr. Chhabra is also a Director of PL Engineering Private
Limited, Sembawang Engineers and Constructors Pte. Limited, Punj Lloyd Pte.
Limited, Swissport Punj Lloyd India Private Limited, Simon Carves Limited,
Simon Carves India Limited, Sembawang Infrastructure (India) Private Limited,
Punj Lloyd Upstream Limited, Punj Lloyd Infrastructure Limited, Punj Lloyd
Aviation Limited, Ramprastha Punj Lloyd Developers Private Limited, Indtech
Aviation Training Services Private Limited, Air Works India Engineering Private
Limited, Sembawang UAE Pte. Limited and Sembawang Infrastructure (Mauritius)
Limited
Mr. Chhabra is a member of Shareholders/Investors Grievance
Committee, Punj Lloyd Limited and Audit Committees of Punj Lloyd Aviation
Limited, Punj Lloyd Upstream Limited and Simon Carves India Limited
Mr. Chhabra does not hold any share in the Company.
APPOINTMENT OF DIRECTORS
Mr. NITEN MALHAN
Mr. Niten Malhan (36) has been with Warburg Pincus since
2001 and focuses on the firm’s investment activities in India. Prior to joining
Warburg Pincus, he was a Director of business development at Stratum8
Corporation, a Silicon Valley start-up. He also worked as an Engagement Manager
with McKinsey and Company in New Delhi, Jakarta and Boston.
Mr. Malhan holds a B.S. in Computer Science and Engineering
from IIT-Delhi and M.B.A. from the Indian Institute of Management, Ahmedabad.
Mr. Malhan is also a Director of Aryan Clean Coal
Technologies Private Limited, Aryan Coal Benefications Private Limited, Aryan
Energy Private Limited, Aryan Ispat and Power Private Limited, Citrus Hotels
Private Limited, DB Corp. Limited, Kartikay Coal Washeries Private Limited,
Krizm Hotels Private Limited, Meringue Hotels Private Limited, NM Tyres Private
Limited, Spank Hotels Private Limited, Spectrum Coal and Power Limited, Havells
India Limited and Warburg Pincus India Private Limited
Mr. Malhan is a member of Audit Committee, Punj Lloyd
Limited, Audit Committee, Shareholders/ Investors Grievance Committee and
Remuneration Committee of DB Corp. Limited, and Audit Committee, Havells India
Limited
Mr. Malhan does not hold any shares in the Company.
Mr. MEHAR KARAN SINGH
Mr. Mehar Karan Singh (52) has 29 years of experience in
different areas of Business Management, with Real Estate Development and
Financing. His expertise extends to project management, industrial and general
administration. Mr. Singh had earlier worked with Tata Administrative Service
(18 years) and Taj Group of Hotels as Vice President (Projects and
Development).
He was with Schindler India Limited, for 5 years as Managing
Director and set up the operations in India for the Swiss multinational, to
reach a leadership position in the escalator business, and number three
position in the elevator business. He was appointed the Chief Executive and
Executive Director in the Real Estate Division from July 2004 to lead the
initiative in the property development business for Bombay Dyeing for the Mill
Land Development and the Wadia Group to develop and manage their real estate
assets, as well as third party developments with International and Domestic
institutions in Joint Ventures. He is also the Vice Chairman of Dawnay Day
Group’s Property Development Business in India, as well as on the Board of the
holding company, Dawnay Day Properties Limited, UK in a non-executive capacity.
Mr. Singh is a Bachelor of Technology in Mechanical
Engineering from IIT, Delhi (President’s Silver Medal, and first in class) and
MBA from IIM, Ahmedabad (Gold Medal, second on the Dean’s list).
Mr. Singh is also a Director in Bombay Dyeing and
Manufacturing Company Limited and is not holding any committee membership.
Mr. Singh does not hold any shares in the Company.
Mr. ATUL PUNJ
Mr. Atul Punj (51) is Chairman of Punj Lloyd, a global EPC
Group headquartered in India. A US$ 2 billion organization, Punj Lloyd has
operations spread across the Middle East, the Caspian, Asia Pacific, Africa,
South Asia, China and Europe and offers a wide portfolio of services in the Oil
and Gas, Petrochemicals and Infrastructure sectors including airports,
seaports, townships and industrial parks, among others. Mr. Punj’s focused
approach and foresight has seen the Company grow phenomenally to become the
second largest construction player in India, with the last 3 years witnessing a
quadruple growth.
Mr. Atul Punj’s entrepreneurial skills and foresight that
resulted in the acquisition of SembCorp EandC, Singapore, now called Sembawang,
and Simon Carves, UK in 2006. Through a combination of strategic acquisitions
and joint ventures with partners in Germany, Saudi Arabia, Switzerland and
India, he led the Group to enhance its scale and competitive position to become
a well established and respected global player. Today, Punj Lloyd enjoys a
leadership position in the industry and has an impressive list of international
and national clients. Mr. Punj’s strategic planning has further enabled him to
drive growth and expand capabilities with the Group moving into diversified
services in Real Estate, Aviation, Defence, Upstream and Ship building.
Mr. Atul Punj was awarded the Ernst and Young ‘Entrepreneur
of the Year 2007’ in the Infrastructure and Construction
category. The award notes Mr. Punj’s clear vision, foresight
and focused approach to establish the Punj Lloyd Group as the leader in the
industry.
Mr. Atul Punj is actively involved with many trade bodies.
He is a Member of the Construction Federation of India,
Construction Industry Development Council, the National
Council of Confederation of Indian Industry and GE’s India Infrastructure
Advisory Board.
Mr. Atul Punj is also a Director of Punj Lloyd Oil and Gas
(Malaysia) Sdn. Bhd., Punj Lloyd Industries Limited, Spectra Net Limited,
Spectra Punjab Limited, Spectra Net Holdings Limited, Atna Investments Limited,
PL Engineering Private Limited, Jacob Ballas Capital India Private Limited, PLE
Hydraulics Private Limited, Atna Properties Private Limited, Afsan Health
Resorts Private Limited, Cawdor Enterprises Limited, Global Health Private
Limited, Swissport Punj Lloyd India Private Limited, Sembawang Engineers and
Constructors Pte. Limited, Punj Lloyd Pte. Limited, Simon Carves Limited,
Bridge Capital Realty Pte. Limited, Simon Carves India Limited, Punj Lloyd
Upstream Limited, Punj Lloyd Infrastructure Limited, Punj Lloyd Aviation
Limited, Ramprastha Punj Lloyd Developers Private Limited, Pipavav Shipyard
Limited, Punj Lloyd International Limited, Indtech Aviation Training Services
Private Limited, Air Works India Engineering Private Limited, Sembawang UAE
Pte. Limited, PT. Punj Lloyd Indonesia, Sembawang Infrastructure (India)
Private Limited and Galactic Infrastructure Private Limited
Mr. Atul Punj is Chairman of Audit Committee, Punj Lloyd
Industries Limited, a member of Shareholders/Investors Grievance Committee,
Punj Lloyd Limited, Audit and Remuneration Committees of Spectra Net Limited,
Audit Committees of Punj Lloyd Aviation Limited, Punj Lloyd Upstream Limited,
and Simon Carves India Limited
Mr. Atul Punj is holding 1430540 shares in the Company.
MANAGEMENT
DISCUSSION AND ANALYSIS
Economic Overview
India is amongst the fastest growing economies in the world with at an average
GDP rate of 8.8 per cent per annum since 2003-04. A notable feature of the
recent growth has been a significant annual increase in gross domestic
investment by 13.1 per cent and savings by 11.3 per cent of GDP, during the
period 2002-07. Macroeconomic fundamentals continue to inspire confidence and
the investment climate is full of optimism. FDI inflows have jumped by almost
three times to USD 15.7 billion in 2006-07 as against USD 5.5 billion in
2005-06. With positive indicators such as high GDP growth, rising foreign
exchange reserves, a booming capital market and rapidly expanding FDI inflows,
India is on the fulcrum of an ever increasing growth curve.
India Inc invested an overwhelming 81 per cent of its planned total investment
of USD 104 billion during April-December 2007-08 in developing core, physical
and service infrastructure. The Government has undertaken many proactive
measures like opening up the infrastructure sector to private players,
permitting Foreign Direct Investment into various segments, introducing model
concession agreements, significantly increasing allocation to road
infrastructure, taking up new projects like the National Highway Development
Project, generating additional power capacity of about 70,000 MW, adding
capacity in major and minor ports, modernising and redeveloping railway
stations and metro and non-metro airports, etc.
In the years to come, the pace of infrastructure development is only expected
to increase. Regardless of the impediments along the way over the next few
years, the sector is expected to continue to record high rates of growth.
(Sources of Macroeconomics data: CII, RBI)
Business Segments Oil and
Gas
The Company provides comprehensive Engineering, Procurement and Construction
(EPC) services in the Oil and Gas sector. Its expertise includes laying
cross-country oil and gas pipelines, setting up storage tanks and terminals,
refinery and process facilities, offshore pipelines and platforms.
Pipelines
The Company is one of the few multi-national EPC companies internationally to
have laid 48' diameter oil and gas pipelines, and other onshore and offshore
pipelines for large international oil and gas majors. The Company's expertise
also lies in handling complicated horizontal directional drilling projects.
The strong growth of Indian economy and infrastructure has lead to robust
demand for energy which has resulted in the need to develop an efficient
distribution network for oil and natural gas transportation.
Responding to the recent privatization initiatives of the Government, large oil
and natural gas companies in India including Oil and Natural Gas Corporation
(ONGC), Indian Oil Corporation (IOC), Reliance Industries (RIL), Bharat
Petroleum Corporation (BPCL) and Essar Oil have commenced oil and natural gas
exploration, production and transportation infrastructure projects. Some of
these companies also propose to establish dedicated distribution oil and gas
networks. The demand for and the supply of natural gas in India is also
expected to increase in the next few years. This increased demand is expected
to result in the need for an extensive gas transportation pipeline
infrastructure. Recent discoveries of natural gas on the east coast of India by
RIL, Gujarat State Petroleum Corporation (GSPC) and ONGC led consortiums will
entail development of pipeline infrastructure to transport gas produced from
these fields.
The Company's considerable expertise and experience and its
large equipment base, experienced manpower and cost effective solutions, make
it a preferred pipeline contractor for most prestigious oil and gas
conglomerates.
During the financial year 2007-08, the Company bagged orders worth INR 6,403
million towards projects in cross country pipelines.
Storage Tanks and Terminals
With increasing demand of natural gas and limited indigenous gas reserves in
many Asia Pacific countries, liquefied natural gas (LNG) has emerged as an
important gas supply source in the region. The growth in the Indian LNG demand
has encouraged the rapid development of LNG export projects in the Asia Pacific
region and in the Middle East.
The outlook for LNG demand in the Indian region continues to be good, with Asia
Pacific LNG imports projected to nearly double by 2015. The LNG demand outlook
provides opportunities and challenges for LNG suppliers to the India market.
This has led to a boom in the LNG market and has resulted in setting up of
cryogenic storage tanks and associated facilities. The robust demand for Oil
and Gas has also spurred the setting up of storage tanks and terminals at
costal and inland locations.
The Company has built over 8 million cubic metres of storage tank capacity in
oil, gas and water. Punj Lloyd is the only company to be involved with all
three LNG terminals in India besides having successfully completed a wide range
of projects for prestigious clients, providing design, engineering, procurement
and construction services for petroleum and gas storage. It executes composite
EPC work involving conventional large diameter storage tanks, cryogenic LPG and
LNG tanks, equipment erection, piping and structural work to the highest levels
of industry standards.
The Company is presently working on an EPC Contract for Ethylene and Propylene
Storage Facilities of Indian Oil Tanking Limited's (IOTL) Panipat Naphtha
Cracker Project and cryogenic LNG storage tanks for IHI for Petronet LNG
Terminal at Dahej.
The Company is today an accredited major in the field of large capacity tankage
projects and has constructed storage tanks ranging from conventional
atmospheric cone roof tanks, floating roof tanks, complicated process tanks to
large LNG storage tanks. The Company has also started executing mounded bullets
and Horton spheres on EPC basis and has a cross section of clientele ranging
from major public sector undertakings to multinationals like Exxon Mobil,
Yemgas etc.
Process Plants
Refining capacity in India is being augmented through new refineries and brown
field expansions by Reliance Petroleum Limited (RPL), Essar Oil, Bharat Oman
Refineries Limited (BORL) and Cum Cobind Singh Refineries Limited (GGSRL). A
mega refinery of Indian Oil Corporation Limited (IOCL) is also planned at
Paradip.
The Company has been serving customers in the refining
sector to build refinery process units on an EPC basis. Over the years, it has
established itself as a major player in the process plant business. It provides
planning, design, engineering and construction services in turnkey and
composite construction assignments.
Besides experience in complicated projects like Sulphur Recovery, Vis-Breaker,
Crude Distillation, Hydrocracker and Vacuum Distillation, gasoline upgradation
and other specialized process units in Refineries, the Company has also handled
Refinery Upgradation, Gas Gathering and Processing facilities, Gas Compressor
stations, Effluent Treatment plants, and Regasification units for LNG Import
Terminals.
During the financial year 2007-08, the Company bagged orders worth INR 116,254
million in India on process plant projects.
Railways
The Indian Railways has embarked upon a massive project towards building of
their infrastructure, where they will be investing USD 55 billion in the 11th
five year Plan, Most of the works are on turnkey basis or EPC contracts. The major
works involve Gauge conversions, Gauge Doubling, Upgradation and Modernization
of Railway Station and Freight Corridors.
The Government of India has set up the Dedicated Freight Corridor Corporation
of India (DFCCI) to undertake projects of Freight Corridor. The Company has
filed its Expression of Interest with DFCCI indicating its willingness to take
up these works.
* Ports
India has 12 major ports and 187 minor ports spread across nine coastal states.
Indian ports handle 90 percent of India's total foreign trade by volume.
The National Maritime Development Programme (NMDP) has been set up tor
enhancing the present capacity and modernizing the existing ports. Under this
programme, several projects are to be completed over the next few years. The
estimated investment in port projects is USD 15 billion.
Almost all major Ports have announced capacity enhancement programmes e.g.
Jawaharlal Nehru Port Trust (JNPT) is coming up with additional berth, Goa has
announced the development: of a Coal import terminal at the port of Mormugao,
Chennai Port has announced a Mega Container Terminal and Ennore Port has
announced the development of a Container Terminal. The Company is actively
pursuing these projects.
* Airports
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 billion over the next
five years.
The Company has obtained qualification for taking up the role of Construction
Contractor in association with TAV Tepe Akfen Yatirim Insaat ve Isletme A.S. of
Turkey for Chennai Airport Terminal Upgradation projects. The Company is also
qualified for a Runway Project at Chennai Airport.
* Roads
The Government has set forth a National Highway Development Plan (NHDP) to
upgrade India's road infrastructure. The total estimated investment in this
plan is USD 50 billion by 2012.
As per the National Highways Authority of India (NHAI) a total of 25,785
kilometres of road are to be constructed in the next two years. The NHAI has
recently invited pre-qualifications of about 30 major highway projects valued
at USD 10 billion on BOT basis. These are expected to be followed by many more
in future and towards this end the &&&i Company is pursuing joint
ventures with select companies for project financing, toll road projects and
other activities.
* Metro Rail
In an effort to address the increasing congestion, the Government of India is
introducing the rail based Mass Rapid Transit System (MRTS) in major cities
like Delhi, Hyderabad, Kolkata and Bangalore. The Delhi Metro Rail Project is
already under implementation.
Punj Lloyd proposes to aggressively pu'sue opportunities in this segment.
Maintenance
and Management Services
The Company was awarded the job of routine maintenance and upkeep of the
erstwhile Daewoo Motors India Limited plant at Surajpur Greater NOIDA, UP. The
stressed asset was with Asset Reconstruction India Limited till Nov 07 and
thereafter sold to Pan India Motors Private Limited
Engineering and Design
Services
The Company had set up a wholly owned subsidiary Simon Carves India Limited
(SCIL) to focus on leveraging and enhancing its UK based subsidiary Simon
Carves' design and engineering capabilities in the Oil and Gas, Petrochemical,
Infrastructure and other sectors in line with its objective of possessing a
strong engineering and design back office that will support the entire Group
.
The Company has emerged as a Best of Breed Engineering Design and high
value-add Services Company focused on helping its clients to enhance their
capacity for growth through reliable Engineering and Design services and adding
value to their business by in sightful and analytical research. It has built
capabilities for detailed engineering of complex projects in the petrochemical,
refineries, and pipelines verticals by taking up challenges of talent
acquisition and move up the learning curve by employing a talented employee
base which is presently over 500. The entity received an ISO 9001
certification, issued by DNV in the period.
SCIL's major projects under
execution for the year include:
1. Renewable Energy projects:
The Plant Design and Engineering Services projects include Feed and detailed
engineering for 2,500 MT Solar grade Poly silicon facility.
2. Oil and Gas:
* Refinery Process Unit: SCIL is providing Residual Engineering, Deta il
Engineering and Procurement Support for up gradation of a refinery process
unit. It also provides support for procurement of electrical, static and
rotating equipments. The refinery process unit assists in bid evaluation for
platform modification works.
* Storage Tanks: SCIL helps its client in design review that includes
detailed design and engineering work for cryogenic storage tanks, atmospheric
tanks, bullets and associated facilities, design review for structural drawings
and detailed design and engineering services for structural, fire protection,
electrical and instrumentation.
3. Pipelines: SCIL is carrying out a number of pipeline projects. These
projects include detailed engineering for gas export pipeline with block valve
stations, gas compression and metering facilities and procurement
support.
4. Infrastructure: SCIL provides services in design review, detailed
design and engineering, field support during construction, procurement support
etc. for its clients in industrial/urban buildings and road sectors.
5. Petrochemical and Chemicals: SCIL provides detailed design and
engineering services for LDPE plant.
There are several key factors contributing to the growth of engineering design
and high value-add services. These include high quality delivery, significant
cost benefits, and abundant skilled resources. SCIL focuses on value
engineering for its clients by continually evaluating and training its
professionals in new technologies and methodologies. The Simon Carves Knowledge
Management System enables them everage existing solutions across the
organization, where appropriate. The Company has aggressive plans to grow and
expand services portfolio in new industry segments like automobile engineering,
aeronautics engineering. To enhance effectiveness in the off-shore delivery
model, front-end business development teams in US/Canada, Europe and Middle
East have been established. Apart from the front end business development
teams, SCIL leverages talent and expertise from Punj Lloyd's group companies,
Simon Carves-UK and Sembawang Engineers and Constructors to service its customers
for global projects.
New initiatives Aviation
In November 2007, the Company's subsidiary, Punj Lloyd Aviation acquired a 33%
stake in Air Works India along with Global Technology Investments Croup LLC,
USA. The Company believes that the aviation business holds tremendous potential
and this initiative is expected to enable it leverage these
opportunities.
Several Indian aircrafts are today compelled to fly overseas for Maintenance,
Repair and Overhaul (MRO). Air Works' operations are being scaled up to include
an exclusive MRO facility besides offering several other services including
aircraft charters, aircraft maintenance, sales and acquisitions, crew training
and infrastructure development.
Defence
The Company views the Defence Industry as a strategic high growth opportunity.
It has been issued a license by the Government of India to manufacture guns,
rockets and missile artillery systems and related equipment in addition to
other defence equipment. Other spheres in addition to already tendered weapon
systems in the defence sector are opening up. Battlefield Management systems
with C4i elements (Command, Control, Communication, Computers and intelligence)
are being introduced in the Indian Armoured Forces. Plans to design and develop
armoured fighting vehicles using the Public and Private sector are being made
to further bolster Indian defence capability. With the available licence they
are well poised to exploit these opportunities.
As the Company grows and expands its technological base with respect to land
systems it would be in a position to enter other components of the defence
sector. Punj Lloyd is in advance stages of negotiations towards entering into
collaboration with a leading arms manufacturing Company in Singapore for
manufacture of defence equipment in India.
Drilling for Oil Exploration
The drilling requirements under the New Exploration Licensing Policy (NELP)
coupled with the high crude oil prices has resulted in a substantial increase
in the requirement of Integrated Drilling Services. The current fleet of
drilling rigs is unable to meet the market requirements throwing up a huge
demand supply gap and attractive business opportunity The Company has set up a
subsidiary named Punj Lloyd Upstream which, in the beginning will facilitate
the exploration and production companies in the domestic oil and gas sector by
providing Offshore Integrated Drilling Services.
The subsidiary has since placed orders for procurement of two onshore
rigs.
Shipyard and Fabrication
The Company acquired a 28.84% stake in Pipavav Shipyard Limited (PSL) for INR
3,493 million to provide support to grow and exploit opportunities in the
offshore sector. With further allotments by PSL, the present equity stake of
the Company in PSL is 22.30%. The Pipavav Shipyard complex is located on the
South Western coast of Gujarat. It is adjacent to Pipavav Port, the first
private sector port in India.
Pipavav Shipyard aims to be the largest and most efficient integrated shipyard
in India by 2010 and among the top ten shipyards of the world by 2015, with the
ability to build and repair commercial and naval vessels as well as offshore
structures for the oil and gas sector.
PSL is well equipped to cater to the immense opportunities opening up in the
oil and gas space. The Company is also the Co-Promoter of PSL. Its capabilities
will include fabrication/construction of offshore platforms, Single Buoy
Moorings (SBM), rigs, jackets, vessels, etc. for upstream oil and gas sector
companies both in India and abroad. This facility can also be used for
fabrication of vessels for petrochemicals and refineries.
The Company expects to gain through this association given the increasing
demand for offshore facilities in India and abroad and with the ongoing
shortage of shipyard capacity in India and globally.
PSL presently has an orde' book of approximately USD 1 billion.
Contingent
Liabilities:
|
Particulars |
2007-2008 Rs.
In Millions |
2006-07 Rs.
In Millions |
|
a) i) Bank Guarantees given by the Company |
252.435 |
194.505 |
|
ii) Bank Guarantees given on behalf of subsidiaries and
joint ventures |
55.456 |
84.774 |
|
b) Liquidated damages deducted by customers not accepted by
the Company and pending final settlement (Also refer Note 6 (a) below)*. |
501.725 |
448.839 |
|
c) Corporate Guarantees given on behalf of subsidiaries,
joint ventures and associates |
32817.356 |
17627.691 |
|
|
33626.972 |
18355.809 |
|
* excludes possible liquidated damages which can be levied
by customers for delay in execution of projects. The management believes that
there exist strong reasons why no liquidated damages shall be levied by these
customers. |
||
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 Company, 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 Company, 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
Fixed Assets:
˛
Land
Building
˛
Leasehold
Improvements
˛
Plant
and Machinery
˛
Furniture
and Fixture
˛
Office
Equipments
˛
Tools
˛
Vehicles
As Per
Website Details
Punj Lloyd Limited is a transnational company specialising
in the energy and infrastructure sectors. The operations spread across the
Middle East, Africa, the Caspian, Asia Pacific and South Asia.
They extend EPC services ranging from:
Oil and Gas
·
Offshore
·
Onshore Field Development
·
Onshore and Offshore Pipelines
·
Tankage and Terminals
Process
·
Refineries
Civil Infrastructure
·
Highways, Flyovers and Bridges
·
Buildings
·
Metro Rail
Thermal Power
Asset Management
Asset
Preservation and Maintenance
As a reflection of the international quality standards,
construction and project management techniques, Punj Lloyd holds ISO 9001:2000,
ISO 14001:1996 and OHSAS 18001:1999 certifications.
The expanding list of satisfied clients reflects the ability
to execute challenging projects, despite all odds. The high percentage of
repeat orders stand testimony to this. They have achieved many milestones and
broken many records. Difficult weather or terrain has been no deterrent to the
team which has delivered consistently and brought accolades to the company.
The ability to manage operations in diverse industries and
economies coupled with the track record in mobilising financial and human
resources, makes them the preferred contractor for critical projects.
The large fleet of sophisticated construction equipment they
own, including horizontal directional drilling rigs and pipe-laying barges,
gives them a competitive edge over the competitors, while the central workshop
and equipment maintenance yards in India, Indonesia, Abu Dhabi and Kazakhstan
ensure minimal downtime on all projects. The multi-skilled, multi-cultural and
highly adaptable workforce is capable of handling multiple complex projects
across the world.
The position as an exemplary transnational company can be
accredited to the high standards in health, safety, environment and quality,
coupled with a track record of timely completion of projects. They are on the
way to achieving the vision of being among the top five global companies of the
world in the segments and markets they serve during the next five years.
PRESS RELEASE
Punj Lloyd secures
USD 800 million prestigious contract in Qatar
New Delhi,
September 23, 2008: Punj Lloyd, a globally diversified services and development
specialist, has been awarded the Engineering, Procurement, Installation, and
Commissioning of Strategic Gas Transmission Project, worth USD 800 million (Rs
36360.000 Millions), from Qatar Petroleum. The project includes laying of 211
km of pipeline with associated stations and infrastructure.
The project will transport 2000 MMSCFD1of sweet lean gas from Ras Laffan
to different consumers via 36 inch diameter pipelines. Work on the project is
expected to be completed in 32 months.
According to Mr Atul Punj, Chairman, Punj Lloyd Group, “This is the
fourth EPC contract that we have bagged in Qatar and this prestigious contract
demonstrates the confidence of the client in Punj Lloyd Groupʼs capability in executing large and challenging projects. The project
will facilitate in meeting the power and water production growth of Qatar.”
“Middle East is a key market for us. Owing to the rapid infrastructure
and oil and gas development in the region, we will continue to secure large
ticket orders for our portfolio. I am glad our strategy of operating in
different geographies is paying rich dividends”, he further added.
Punj Lloyd has major presence in Qatar and is executing key EPC projects
including the Doha Urban Pipeline Relocation and the Multi-Product Pipeline
from Qatar Petroleum Refinery to Doha Depot for Qatar Petroleum, and fuel
systems for the New Doha International Airport.
With this, the order backlog for the Punj Lloyd Group on consolidated
basis has gone up to Rs 240630.000Millions. This is the total value of
unexecuted orders as of June 30, 2008 and new orders received till date.
About Punj Lloyd
Group
Punj Lloyd Group (BSE SCRIP ID: PUNJLLOYD, NSE SYMBOL: PUNJLLOYD) is a
globally diversified services and development specialist, with interests in
engineering, construction, aviation, defense and real estate sectors. The Group
is known for its capabilities in delivering mega projects ʻon-time,ʼ thereby ensuring repeat customers. The
Group possesses a rich experience, having successfully delivered projects
across the globe, while maintaining the highest standards of health, safety,
environment and quality (HSEQ). Further information about the Group is
available at www.punjlloydgroup.com
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. 49.95 |
|
UK Pound |
1 |
Rs. 79.59 |
|
Euro |
1 |
Rs. 63.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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 |
|