MIRA
INFORM REPORT
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Report Date : |
26.02.2011 |
IDENTIFICATION DETAILS
|
Name : |
PETRON ENGINEERING CONSTRUCTION LIMITED |
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Registered
Office : |
6th Floor, Swastik Chambners, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
19.07.1976 |
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Com. Reg. No.: |
019135 |
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CIN No.: [Company Identification No.] |
L45202MH1976PLC019135 |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
The Subject is engaged in the business of engineering and construction
of plants for oil refineries, power, cement. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 3943900 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Pulkit Goyal |
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Designation : |
General Manager |
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Contact No.: |
91-22-40856222 |
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Date : |
25.02.2011 |
LOCATIONS
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Registered Office : |
6th Floor, Swastik Chambers, |
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Tel. No.: |
91-22-40856200/40856400 |
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Mobile No.: |
91-9820035758 (Mr. Mukesh H. Anjankar) |
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Fax No.: |
91-22-40856250/67973509/10 |
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E-Mail : |
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Website : |
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Area : |
5000 sq.ft (approximately) |
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Location : |
Owned |
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Factory 1: |
Plot No 222-224, Village – Dabhasa, Vadodara – |
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Tel No.: |
91-2662-244181 / 244281 |
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Fax No.: |
91-2662-244181 / 244281 |
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Factory 2 : |
Plot No. A – 328, T T C, Industrial Area, MIDC, Mahape, Navi Mumbai –
400701, |
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Tel No.: |
91-22-27781245 |
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Fax No.: |
91-22-27781683 |
DIRECTORS
AS ON 03.08.2010
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Name : |
Mr. T S Das |
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Designation : |
Managing Director |
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Name : |
Mr. Ravi Keswani |
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Designation : |
Non Executive Director |
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Name : |
Mr. Dinesh Kumar Khare |
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Designation : |
Non Executive Director |
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Name : |
Dr. S Rama Iyer |
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Designation : |
Non Executive Director |
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Name : |
Mr. R Sankaran |
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Designation : |
Non Executive Director |
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Name : |
Mr. A C Mathur |
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Designation : |
Executive Director ( Operations) |
KEY EXECUTIVES
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Name : |
Mr. R N Pandey |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. Raman Trehan |
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Designation : |
Joint President (Procurement) |
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Name : |
Ms. Harsha R Kamath |
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Designation : |
Sr. Vice President(Proposals) |
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Name : |
Mr. Naresh Shah |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2010
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Category
of Shareholders |
No. of Shares |
Percentage |
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(A) Shareholding of Promoter and Promoter Group |
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3,945,393 |
52.34 |
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3,945,393 |
52.34 |
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10,130 |
0.13 |
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10,130 |
0.13 |
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Total shareholding of Promoter and Promoter Group (A) |
3,955,523 |
52.47 |
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(B) Public Shareholding |
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806,625 |
10.70 |
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1,180 |
0.02 |
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3,649 |
0.05 |
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811,454 |
10.76 |
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522,331 |
6.93 |
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1,284,671 |
17.04 |
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926,173 |
12.29 |
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38,248 |
0.51 |
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38,248 |
0.51 |
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2,771,423 |
36.76 |
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Total Public shareholding (B) |
3,582,877 |
47.53 |
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Total (A)+(B) |
7,538,400 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
7,538,400 |
- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
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Line of Business : |
The Subject is engaged in the business of engineering and construction
of plants for oil refineries, power, cement. |
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Products : |
Mechanical Engineering Fabrication Construction and Refractories |
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Imports : |
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Products : |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash, Credit: 30/60/90 Days |
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Purchasing : |
L/C, Cash, Credit: 30/60/90 Days |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
1000 (approximately) |
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Bankers : |
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Facilities : |
NOTE ** Includes interest accrued and due of Rs.0.679 millions ( Previous
year : Rs.0.101)
*** includes interest accrued and due to Holding Company of Rs.3.806
millions ( Previous year : Rs.2.516 millions) and bodies corporate Rs.37.596 (
Previous year Rs.18.124 millions) |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Lodha and Company Chartered Accountant |
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Address : |
C – 1, Upasna, 1 Haily Road, CP, |
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Internal Auditors 1 : |
Bagaria and Company Chartered Accountant |
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Internal Auditors 2 : |
DMKH and Company Chartered Accountant |
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Fellow Subsidiaries : |
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Holding Company : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10 each |
Rs.100.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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|
7538400 |
Equity Shares |
Rs. 10 each |
Rs.75.384
millions |
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NOTE
Of the total equity shares of the Company:
a) 39,22,327 (previous year: 39,22,327) equity shares are held by Petron Investments Private Limited (the 'Holding Company') - including 27 shares issued to the Holding Company out of fractional entitlement of bonus shares
b) 14,000 (previous year: 14,000) equity shares were allotted as fully paid-up, pursuant to contract, without payment being received in cash
c) 47,04,060 (previous year: 47,04,060) equity shares issued as bonus shares by way of capitalisation of general reserve.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
75.384 |
75.508 |
75.510 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
910.599 |
690.648 |
627.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
985.983 |
766.156 |
702.910 |
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LOAN FUNDS |
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1] Secured Loans |
245.561 |
298.985 |
335.650 |
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2] Unsecured Loans |
253.403 |
232.641 |
91.730 |
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TOTAL BORROWING |
498.964 |
531.626 |
427.380 |
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DEFERRED TAX LIABILITIES |
67.861 |
69.372 |
44.740 |
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TOTAL |
1552.808 |
1367.154 |
1175.030 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
639.206 |
579.761 |
490.500 |
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Capital work-in-progress |
20.802 |
56.705 |
14.570 |
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INVESTMENT |
0.001 |
0.001 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
421.665
|
670.789 |
445.390 |
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Sundry Debtors |
1611.656
|
1100.094 |
1100.950 |
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Cash & Bank Balances |
162.531
|
163.284 |
161.530 |
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Other Current Assets |
0.000
|
0.000 |
3.960 |
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Loans & Advances |
510.319
|
422.652 |
339.920 |
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Total
Current Assets |
2706.171
|
2356.819 |
2051.750 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
491.125
|
439.885 |
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Other Current Liabilities |
1111.776
|
1063.427 |
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Provisions |
210.471
|
122.819 |
45.020 |
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Total
Current Liabilities |
1813.372
|
1626.131 |
1381.790 |
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Net Current Assets |
892.799
|
730.688 |
669.960 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1552.808 |
1367.154 |
1175.030 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
5319.694 |
4571.362 |
2823.870 |
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Other Income |
17.857 |
46.283 |
5.250 |
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TOTAL (A) |
5337.551 |
4617.645 |
2829.120 |
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Less |
EXPENSES |
|
|
|
|
|
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|
Material consumed and cost of goods sold |
1386.131 |
1188.606 |
662.040 |
|
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Operating Expenses |
2534.827 |
2315.598 |
1010.720 |
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Personnel Cost |
852.220 |
811.741 |
0.000 |
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Administration and Establishment Expenses |
47.897 |
47.922 |
286.520 |
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Increase / Decrease in Stock |
0.000 |
0.000 |
26.600 |
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Other Expenditure |
0.000 |
0.000 |
597.560 |
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TOTAL (B) |
4821.075 |
4363.867 |
2583.440 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
516.476 |
253.778 |
245.680 |
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Less |
FINANCIAL EXPENSES (D) |
67.506 |
70.887 |
94.540 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
448.970 |
182.891 |
151.140 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
90.320 |
68.277 |
62.120 |
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PROFIT BEFORE
TAX (E-F) (G) |
358.650 |
114.614 |
89.020 |
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Less |
TAX (H) |
119.818 |
49.944 |
45.070 |
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PROFIT AFTER TAX
(G-H) (I) |
238.832 |
64.670 |
43.950 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
283.684 |
219.013 |
175.060 |
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Less |
APPROPRIATIONS |
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Transfer to General Reserve |
24.000 |
0.000 |
0.000 |
|
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Dividend |
2.504 |
0.000 |
0.000 |
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Tax on Dividend |
15.076 |
0.000 |
0.000 |
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|
BALANCE CARRIED
TO THE B/S |
480.936 |
283.683 |
219.010 |
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EARNINGS IN
FOREIGN CURRENCY |
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|
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Export Earnings |
59.363 |
239.868 |
NA |
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TOTAL EARNINGS |
59.363 |
239.868 |
NA |
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IMPORTS |
|
|
|
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Raw Materials |
151.981 |
104.701 |
NA |
|
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Capital Goods |
5.612 |
18.400 |
NA |
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TOTAL IMPORTS |
157.593 |
123.101 |
NA |
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Earnings Per Share
(Rs.) |
31.68 |
8.58 |
5.83 |
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Expected Sales (2010-2011) : Rs.6000.000 Millions
QUARTERLY RESULTS
|
Particulars |
|
30.06.2010 (1st Quarter) |
30.09.2010 (2nd Quarter) |
31.12.2010 (3rd Quarter) |
|
Net Sales |
|
1063.050 |
879.330 |
1138.210 |
|
Total Expenditure |
|
952.450 |
770.980 |
998.9200 |
|
PBIDT (Excl OI) |
|
110.600 |
108.350 |
139.290 |
|
Other Income |
|
2.170 |
9.500 |
2.290 |
|
Operating Profit |
|
112.770 |
117.850 |
141.580 |
|
Interest |
|
12.720 |
6.190 |
6.970 |
|
PBDT |
|
100.040 |
111.660 |
134.610 |
|
Depreciation |
|
24.190 |
29.080 |
27.260 |
|
Profit Before Tax |
|
75.860 |
82.580 |
107.350 |
|
Tax |
|
25.950 |
27.310 |
35.540 |
|
Profit After Tax |
|
49.900 |
55.270 |
71.810 |
|
Net Profit |
|
49.900 |
55.270 |
71.810 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.47
|
1.40 |
1.55 |
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|
Net Profit Margin (PBT/Sales) |
(%) |
6.74
|
2.50 |
3.15 |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.72
|
3.90 |
3.50 |
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|
Return on Investment (ROI) (PBT/Networth) |
|
30.36
|
0.14 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.34
|
2.81 |
2.57 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.49
|
1.44 |
1.48 |
LOCAL AGENCY FURTHER INFORMATION
Background and
Nature of Operations:
Subject is a company incorporated on 19.07.1976 under the companies act,
1956 (the act). The company is primarily engaged in the business of engineering
procurement and construction of plants for oil refineries, power, cement,
petrochemical, fertilizer and other industries.
The details of
sundry creditors:
Rs.
In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
|
|
|
|
Micro, small and medium enterprises |
0.537 |
-- |
NA |
|
Others |
490.588 |
439.885 |
NA |
|
Total |
491.125 |
439.885 |
NA |
FINANCIAL RESULTS
During the year the Company's total revenue has increased to Rs. 5337.600 Millions from Rs. 4617.600 Millions in the previous year (higher by 15.6%). The profit before interest, depreciation, tax and transfer from revaluation reserve were Rs. 516.500 Millions as compared to Rs. 253.800 Millions in the previous year (103% higher). The interest has declined to Rs. 67.500 Millions (Previous year: Rs. 70.900 millions) (lower by 5%) and depreciation has increased to Rs. 90.300 Millions (Previous year Rs. 68.300 Millions) (higher by 32%). The rise in turnover and improved operational efficiency has resulted into higher profit of Rs. 358.700 Millions as compared to Rs. 114.600 Millions in the previous year before providing for tax. The Net Profit for the year is higher at Rs. 238.800 Millions as compared to Rs.64.700 Millions in the previous year.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY TRENDS AND
DEVELOPMENTS
Confounding the fears of the worst after-effects of the global slowdown, the turnaround in the Indian economy has been much faster than we had anticipated a year ago. There is, however, considerable heterogeneity in the pace of the upturn in different countries with emerging and developing countries leading the way.
DIVISION WISE
PERFORMANCE
ENGINEERING AND
CONSTRUCTION
During the year, the Division has successfully executed the following contracts:
a) Mechanical and piping work for Naphtha Cracker Project of Indian Oil Corporation Limited, Panipat, Haryana
b) Piping, equipment erection, heavy lifting, steel structural and painting works for Indian Oil Corporation Limited - MEG Project - Panipat, Haryana
c) Power plant erection work for 2 x 300MW boilers (Phase 1)
for Sichuan Fortune Project Management Company Limited at Adani Power Limited,
Mundra,
d) Lump sum turnkey project of HCU/DHT Heaters for Bharat Oman Refinery Limited at Bina, Madhya Pradesh
e) Mechanical erection works for 8000 TPD cement plant of Grasim Industries Limited, Kotputli. Rajasthan
f) Mechanical erection of cement plant (Phase 1) of Madras Cements Limited at Ariyalur, Tamilnadu
The work on the following projects substantially progressed during the year:
a) Erection of boiler Proper (2 x 600MW) of Utility Energytech and Engineering Private Limited – an associate company of Reliance Infrastructure Limited - at Hisar, Haryana.
b) Erection of boiler Proper (2 x 300MW) (Phase 1) of Utility Energytech and Engineering Private Limited at Rosa Thermal Power Project, Rosa, Uttar Pradesh.
c) Mechanical and piping works of HCU/DHT Heaters for Bharat Oman Refinery Limited at Bina, Madhya Pradesh.
d) Equipment and piping installation works for DHDT and HGU
units at Indian Oil Corporation Limited, Vadodara,
e) Composite Mechanical Works for Implementation of Euro-IV Project of Chennai Petroleum Corporation Limited at Chennai
f) Lump sum turnkey project of CDU/VDU Heaters for M/S.
HPCL-Mittal Energy Limited at Bathinda,
g)Lump sum turnkey project of DHDT Heaters for M/S.
HPCL-Mittal Energy Limited at Bathinda,
h) Lump sum turnkey project of NHT/CCR Heaters for M/S.
HPCL-Mittal Energy Limited at Bathinda,
PETRON MECHANICAL
INDUSTRIES
During the year, the Division has successfully executed the following contracts:
a) Design, Engineering, Manufacturing and Supply of 33 Nos. of EOT Cranes and 23 Nos. of Electric Hoists for M/s. Vedanta Aluminium Limited, SEZ Unit, Smelter Expansion Project at Jharsuguda, Orissa
b) Supply and Installation of Mechanical Equipment for Podding Shop Project of M/s. Vedanta Aluminium Limited, SEZ Unit, Jharsuguda, Orissa
c) Design, Engineering, Manufacturing and Supply of 03 Nos. of 40T Capacity Gantry Cranes for M/s. Adani Power Maharashtra Limited for their Power Plant at Tiroda
d) Manufacturing and Supply of EOT Crane Spares for M/s. Bharat Aluminium Company Limited, Korba, CG
ELECTRICAL AND
INSTRUMENTATION
During the year, this Division has successfully executed the following orders:
a) Erection and Commissioning of Electrical and Instrumentation equipment for Madras Cements Limited, Jayanthipuram
b) Supply of Electrical and Instrumentation materials for Madras Cements Limited, Ariyalur Project
c) Electrical work of Indian Oil Corporation Limited - MEG Project for Samsung Engineering Company Limited, Panipat
d) Electrical work for OFFSITE for Bharat Oman Refinery Limited, Bina.
e) Electrical and Instrumentation work for Malkapur Line-2-2500 TPD Cement plant of India Cements Limited
Presently, the following Orders of the Division are under execution:
a) Erection, Testing and Commissioning of Electrical and Instrumentation equipment for Madras Cements Limited, Ariyalur
b) Erection, Calibration, Testing and commissioning for complete Candl Systems for 2x330MW (Unit- 3and4) at Adani Power Limited, Mundra Thermal Power Project, Mundra
c) Supply of Electrical Equipment Package (Part-l Cabling,
Earthing and Lightning Protection, Part – II Electrical Safety Equipment and
Part - III Illumination System), for 366 MW Combined Cycle Power Plant - Stage
II at Lanco Infratech Limited, Kondapalli IDA, Dist.
d) Supply and Delivery at site with all the accessories of Termination kits, glands and lugs, earthing materials, steel conduits, point wiring, Junction Boxes and other misc. electrical items for 2x300MW Rosa Thermal Power Project, for Utility Energytech and Engineers Private. Limited
e) Electrical Erection work for Rosa Thermal Power Plant for Utility Energytech and Engineers Private Limited
f) Supply of materials for Balance of Plant (BOP) for 2 x 250MW Parichha Thermal Power Project, Extension-ll, Unit 5 and 6 at Parichha, U.P for Reliance Infrastructure Limited
g) Erection, Testing and Commissioning of Electrical system for Balance of Plant (BOP) for 2 x 250 MW Parichha Thermal Power Project, Extension-ll, Unit 5 and 6 at Parichha, U.P. for Reliance Infrastructure Limited
ROCKWOOL INSULATION
and REFRACTORY
During the year, the Division has successfully executed the following contracts
a) Refractory work for Dalmia Cement Limited, Ariyalur, Tamil Nadu
b) Refractory work for Chettinad Cement Limited, Tamil Nadu
c) Refractory and insulation (ARC) works for Reliance
Petroleum Limited,
d) Refractory and insulation (ARC) works for Essar Oil
Limited, Vadinar,
e) Insulation work for HOPE, LLDPE, PP plants at Haldia
Petrochemical Limited - Haldia,
f) Insulation on Equipment and piping of Unit-1 of JSW Power Limited for Larsen and Toubro Ltd-Barmer, Rajasthan
g) Insulation on equipment and piping for Sichuan Fortune Project Management Limited for Adani
Power Limited, Mundra, Gujarat Presently, the following Orders of the Division are under execution:
a) Refractory at Associated Cement Company Limited - Wadi, Karnataka.
b) Refractory and Insulation work for Unit-3 of JSW Power Limited for Larsen and Toubro Limited - Barmer, Rajasthan
c) Refractory and insulation (ARC) works for Reliance
Petroleum Limited,
d) Refractory and Insulation (ARC) works for Essar Oil
Limited, Vadinar,
PETROFAB DIVISION
During the year, the Division has successfully executed the following contracts
a) Fabrication and assembly of piping, structures, meter runs, metering skid, piping skids, structural skids for Daniel Measurement Solutions (P) Limited, Vadodara
b) Fabrication and Testing of 8 No's Injection Point Assemblies for Hindustan Petroleum Corporation Limited, Mumbai for Larsen and Toubro Limited, Vadodara
c) Manufacturing and Supply of
d) Fabrication of Blade Mould Frames ("X" Side and "O" Side) for Suzlon Energy Limited, Vadodara
e) Fabrication of 2 No's HAG Vessels for Coen Bharat, Vadodara. Presently, the following Orders of the Division are under execution:
a) Fabrication of Fired Heaters for DHDT Unit - Mangalore Refinery Petrochemical Limited (Phase-Ill Expansion Project) for Heurtey Petrochem, Mumbai
b) Fabrication of 3 No's Convection Modules and 1 No. FG Boiler for ESSAR Project, Vadinar for Heurtey Petrochem, Mumbai
c) Supply of DCU Heaters for Nagarjuna Oil Corporation Limited, Chennai.
d) Supply of DHL) Heaters for Nagarjuna Oil Corporation Limited, Chennai
ACHIEVEMENTS
a) The company achieved maximum man hours of 16.47 Million without any lost time injury during 2009-10.
b) Successful in getting certification of ISO 9001:2008 for quality system management during 2009-10.
c) OHSAS 18001:2007 for Health and Safety Management system certificate awarded during October last year.
d) Also accredited with ISO 14001:2004 for environmental management system.
e) Petrofab - a Division of Petron Engineering Construction Limited was accredited with U, R and NB
stamps by ASME during 2009-10.
f) Successful erection of reactor (580 MT single piece) for DHDS project of Chennai Petroleum Corporation Limited (CPCL) to meet the stringent Euro - IV emission norms.
OUTLOOK
The Company has booked large orders aggregating to Rs.692 millions during 2009-10. Of late, the Company has also bagged another large order of Rs.1550.000 millions from M/s Indian Oil Corporation Limited for its Paradip refinery. The Company has accumulated orders of about Rs. 10200.000millions of which EPC orders contributes over 50%. This augurs well for Company's long term strategic business. Thus, order backlog represents increase of 55% over the pending order backlog of Rs. 6600.000 millions in the previous year
The major orders received are given below
They are expecting more orders from Adani Power Maharashtra Limited, Grasim Industries Limited, Indian Oil Corporation Limited, Reliance Infrastructure Limited etc. The outlook is encouraging and the Company can look forward to continuous improvement in its performance in the coming year/s.
OPPORTUNITIES
The Company is into fabrication, engineering, erection, installation of plant, machinery and equipment for a number of business sectors in oil, gas and petrochemicals, power, cement, minerals and metals, chemical and fertilizers etc. This spread both in reach and business sectors substantially derisk the Company from economic volatility.
The oil, gas and petrochemicals industry has been
instrumental in fuelling the rapid growth of the Indian economy. The petroleum
and natural gas sector which includes transportation, refining and marketing of
petroleum products and gas constitutes over 15% of the GDP. From being a net
importer of petroleum products,
Although
To fuel growth into the minerals and metals sector, during
the year, the National Mineral Policy (the 'NMP'), 2008 was approved by the
Government of India. The NMP has enunciated policy measures for e.g. assured
right to next stage mineral concession, transferability of mineral concessions
and transparency in allotment of concessions, in order to reduce delays which
are seen as impediments to investment and technology flow in the mining sector
in
The Company now focuses on tapping more business from the above sectors to deliver sustainable long term returns.
INTERNAL CONTROLS
The Company has a proper and adequate system of internal controls to ensure the timely and accurate recording of financial transactions and adherence to applicable accounting standards; optimum utilization and safety of assets; compliance with applicable laws, regulations, listing agreements and management policies; and an effective management information system.
There are well defined and documented procedures, policies and authority guidelines for each function in the Company. The Company has already engaged two independent firms of Chartered Accountants apart from the in-house internal audit team who conduct audits across all locations, project sites and business units of the Company throughout the year to test check the internal control system. The Board of directors has an Audit Committee whose Chairman is an independent director. The Committee meets periodically with the management, internal audit team and representatives of the statutory auditors to review the Company's program of internal audits, findings and recommendations made in the auditors' (both internal and statutory) reports and the follow-up and compliance status of its earlier observations.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010
(Rs. In millions)
|
Particulars |
|
3 months ended 31.12.2010 Unaudited |
9 months ended 31.12.2010 Unaudited |
|
Net Sales /Income from Operations |
|
1138.205 |
3080.588 |
|
Other Operating Income |
|
-- |
-- |
|
Total Income |
|
1138.205 |
3080.588 |
|
Expenditure : |
|
|
|
|
a) Increase(decrease) in stock in trade and work In progress |
|
(4.684) |
(4.341) |
|
b) Consumption of raw materials |
|
195.798 |
496.782 |
|
c) Purchase of Traded Goods |
|
11.236 |
78.857 |
|
d) Sub – contracts charges |
|
284.788 |
745.548 |
|
e) Employee Cost |
|
212.834 |
659.230 |
|
f) Depreciation |
|
27.260 |
80.528 |
|
g) Other expenditure |
|
298.946 |
746.159 |
|
Total |
|
1026.178 |
2802.763 |
|
3. Profit/ (Loss) from Operations before Other Income, Interest and Exceptional Items (1-2) |
|
112.027 |
277.825 |
|
4. Other Income |
|
2.290 |
13.842 |
|
5. Profit/ (Loss) before Interest and Exceptional Items (3+4) |
|
114.317 |
291.667 |
|
6. Interest (Net) |
|
6.966 |
25.880 |
|
7. Profit/ (Loss) after Interest but before Exceptional Items (5-6) |
|
107.351 |
265.787 |
|
8. Exceptional Items |
|
-- |
-- |
|
9. Profit / (Loss) from Ordinary Activities before tax (7-8) |
|
107.351 |
265.787 |
|
10. Tax expense |
|
35.541 |
88.805 |
|
11. Net Profit / (Loss) from Ordinary Activities after tax (9-10) |
|
71.810 |
176.982 |
|
12. Extraordinary items (net of tax expense Rs. Nil) |
|
-- |
-- |
|
13. Net Profit / (Loss) for the period (11-12) |
|
71.810 |
176.982 |
|
14. Paid-up equity share capital (Face Value - Re.10/- per share) |
|
75.384 |
75.384 |
|
15. Reserves excluding Revaluation Reserve |
|
|
|
|
16. Earnings Per Share (EPS) |
|
|
|
|
(a) Basic and Diluted EPS before Extraordinary Items |
|
9.53 |
23.48 |
|
(b) Basic and Diluted EPs after Extraordinary Items |
|
9.53 |
23.48 |
|
17. Public shareholding : |
|
|
|
|
- Number of shares |
|
3582877 |
3582877 |
|
- Percentage of Shareholding |
|
47.53% |
47.53% |
|
18. Promoters and promoter group Shareholding : |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of shares |
|
Nil |
Nil |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
|
Nil |
Nil |
|
- Percentage of shares (as a % of the total share capital of the company) |
|
Nil |
Nil |
|
b) Non-encumbered |
|
|
|
|
- Number of Shares |
|
3955523 |
3955523 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
|
100.00% |
100.00% |
|
- Percentage of shares (as a % of the total share capital of the company) |
|
52.47% |
52.47% |
NOTE
- The above results were reviewed by the Audit
Committee and approved by the board of directors of the Company at it's
meeting held on 01.02.2011.
- The Company is primarily engaged in the
business of ‘Engineering, Procurement and Construction' and operates in a
single business segment based on the nature of the products and services,
the risks and returns etc. Accordingly, these financial results have been
prepared for this single segment.
- Investors' complaint for the quarter
ended 31.12.2010. Opening -Nil, Received-Nil and Closing-Nil.
- The Auditors have qualified their report
in respect of non-provision for shortfall, in recovery against certain
debtors and detention of the fixed assets. The Company has initiated legal
action for recovery of its dues and release of the assets detained and the
management is hopeful of its recovery.
- Figures for the previous periods have
been regrouped and reclassified wherever necessary and feasible, in order
to make them comparable.
- The Limited Review of the Unaudited
Financial Results for the Quarter ended 31st December, 2010 have been
carried out by the Statutory Auditors of the Company.
FIXED ASSETS
- Plant and Machinery
- Land – freehold
- Land – leasehold
- Furniture and fixture
- Vehicles
Trade References:
- Adani Infro (
- Nagarjuna Oil Corporation Limited, Chennai
- Bharat Oman Refiners Limited
CONTINGENT LIABILITIES NOT PROVIDED FOR
(Rs. In millions)
|
PARTICULARS |
AS ON 31.03.2010 |
AS ON 31.03.2009 |
|
Bank guarantees issued by the banks on behalf of the Company |
1930.497 |
1716.233 |
|
Inland/foreign letters of credit issued by the banks on behalf of: the Company |
38.779 |
121.199 |
|
Sales tax matters in appeal |
4.948 |
4.401 |
|
Excise duty matters in appeal |
0.691 |
1.487 |
|
Service tax matters in appeal and in respect of pending notices [excluding interest etc., the amount of which is unascertainable] |
12.029 |
11.320 |
|
Labour matters and other litigations |
6.262 |
5.182 |
WEBSITE DETAILS
PROFILE
Infrastructure is the foundation of a strong economy. With a dream to be a pioneer in world class construction and development, Petron Engineering Construction Limited, came into existence nearly thirty years back. Based on the professional deliverance and commitment levels of its employees and with the focused management vision, the group today has successfully executed nearly 600 projects, for renowned public as well as private sector companies nationwide. These were in diversified sectors like Refineries ( Reformers and Crackers ), Oil and Gas, Power, Cement, Fertilizer and Petrochemical, including specialized Insulation and Refractory work, Fabrication work alongwith Electrical and Instrumentation work.
Today, the company has to its credit more than 120 Fired
Heaters, 45 Power Plant Projects and also the honour of working with top -notch
clients in the industry. Be it the Obajana Cement Plant of Nigeria, which with
a capacity of 15,000 ton per day is the biggest Cement Plant in
The company places its first focus on safety and has received lots of accreditations from its clients. Set to grow from strength to strength, the caravan is loaded with a dedicated manpower of over 12,000 and most importantly, the zeal to continuously provide quality products and services, meeting delivery schedules. The hallmark of an organization with true integrity and commitment.
DIVISIONS
Every monument needs a strong foundation to stand, the four divisions of Petron Engineering Construction Limited have been the four pillars of its strength and success. Petron Mechanical Industries ( PMI ) is a 24 year old division specializing in providing tailor made solutions. Petrofab the other division for specialized fabrication work holds the enviable strength of one of the best human resource capability company with an even more enviable list of world renowned clients.
Rockwool Insulation, formed in 1988, is the one point problem solver in the field of Refractory and Insulation and has been providing quality and committed construction services for the last 20 years. Electrical and Instrumentation ( E and I ) division is the fourth division which upholds a policy of sustainable development with ten commitments on quality and customer satisfaction.
GLOBAL
After creating a strong brand name in EPC (Engineering,
Procurement and Construction) projects in India, Petron Engineering Construction
Limited was acquired by KAZSTROYSERVICE LIMITED (KSS),
A truly global organization is identified by the clients it
serves to. KSS group has worked with a range of world class clients like AGIP
(Axxon, Chevron, E and I), KPO (Shell and BG), Siemens, KaztransOil, KMG, IOCL
and many more. Petron Engineering Construction Limited by itself successfully
finished few global projects such as, for HEISCO a project was executed in
KSS group has branches/regional offices in leading
commercial centers of the world with support centers at
The Group has total manpower of more than 38,500 alongwith
the management base consisting of professionals from
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.45.37 |
|
|
1 |
Rs.73.24 |
|
Euro |
1 |
Rs.62.68 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
|
45 |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.