MIRA INFORM REPORT

 

 

Report Date :

31.08.2012

 

IDENTIFICATION DETAILS

 

Name :

PSL LIMITED (w.e.f. 19.05.2003)

 

 

Formerly Known As :

PSL HOLDINGS LIMITED

 

 

Registered Office :

Kachigam, Daman – 396 210, Union Territory of Daman and Diu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

24.08.1987

 

 

Com. Reg. No.:

56-002395

 

 

Capital Investment / Paid-up Capital :

Rs.533.338 Millions

 

 

CIN No.:

[Company Identification No.]

L67120DD1987PLC002395

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

SRTP01477A

 

 

PAN No.:

[Permanent Account No.]

AAACP2734K

 

 

Legal Form :

Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of HSAW Pipes.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (53)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 36569000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having good track. There appears some dip in the profitability and sales turnover. However, networth of the company appears to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be regular 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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

BBB+ (Cash Credit Limit)

Rating Explanation

Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk.

Date

May 27, 2010

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

LOCATIONS

 

Registered Office :

Kachigam, Daman – 396 210, Union Territory of Daman and Diu, India

Tel. No.:

91-260-2242989/ 2252248/ 2244496

Fax No.:

91-260-2241932

E-Mail :

ggehani@gmail.com

Website :

http://www.psllimited.com

 

 

Corporate Office/ Marketing Office 1 :

PSL Towers, 615, Makwana Road, Marol, Andheri (East), Mumbai - 400 059, Maharashtra, India

Tel. No.:

91-22-66447777/ 66447788

Fax No.:

91-22-66447700/ 66447711

 

 

Legal and Secretarial Office / Project Office :

3rd Floor, Punj House, M-13A, Connaught Circus, New Delhi – 110 001, India

 

 

Marketing Office 2 :

1106, 11th Floor, The Pinnacle, The Claridges Office Complex, Shooting Range, Faridabad - 121 001, Haryana, India

 

 

Marketing Office 3 :

Meridian House, 8/2, Montieth Lane, Egmore, Chennai – 600 008, Tamilnadu, India

 

 

Plant 1 :

Survey No.35, 37, 41, 301/1 and 308/1 and 2, Varsana and Nani Chirai, Anjar and Bhachau, Kutch, Gujarat, India

 

 

Plant 2 :

Survey No.38/1, 38/2, 39, 40 and 42 Varsana, Anjar, Kutch, Gujarat, India

 

 

Plant 3 :

East of N.H.-8 A, Kandla Road, Gandhidham, Kutch, Gujarat, India

 

 

Plant 4 ;

Plot No.4 and 5, Sector-12/B, Kandla Road, Gandhidham, Kutch, Gujarat, India

 

 

Plant 5 :

Kachigam, Daman – 396 210, Union Territory of Daman and Diu, India

 

 

Plant 6 :

No.22, Vaiyavoor, Maduranthakam Taluka, Kancheepuram District, Tamilnadu, India

 

 

Plant 7 :

Survey No.207, Industrial Development Area, Gurrampalem, Pendurthi, Vishakhapatnam, Andhra Pradesh, India

 

 

Plant 8 :

Plot No.2A, APIIC, Layout Phase-II, Peddapuram – 533 437, Kakinada, District East Godavari, Andhra Pradesh, India

 

 

Plant 9 :

Survey No.124, Khadat, Pilwai, Towards Mahudi Road, Taluka-Mansa, District, Gandhinagar, Gujarat, India

 

 

Plant 10 :

Khasra No.46, 48, 73, 82, Village-Gaduda, Tehsil-Phagi, Jaipur, Rajasthan, India

 

 

Overseas Plant 1 :

13092, Sea Plane Road, Bay St. Louis, Mississippi 39520, USA

 

 

Overseas Plant 2 :

Post Box No.42131, Inner Harbour, Plot No.HJ-02, Hamriyah Free Trade Zone, Sharjah, UAE

 

 

 

 

DIRECTORS

 

As on 31.03.2012

 

Name :

Mr. Ashok Punj

Designation :

Managing Director

Qualification :

Bachelors in Electrical Engineering

Masters in System Engineering

 

 

Name :

Mr. Alok Punj

Designation :

Non-Executive Director

Date of Birth/Age :

29.05.1950

Qualification :

B.E. (Industrial Engineering)

Expertise in specific functional area :

General Management

Brief Resume :

Mr. Alok Punj, who attended a Bachelor of Engineering Programme in Industrial Engineering at Illinois Institute of Technology, Chicago has over three decades of experience in senior positions in different Engineering Companies of the world and also has experience in International Marketing and Projects, both in the Middle East and Far East. Having guided different companies as a Senior Management Personnel, the Company is now being benefited by his being there on Company's Board and even on few important Committees of Board such as Audit Committee, Committee of Directors, Remuneration Committee, and Shareholders'/ Investors' Grievance Committee.

 

 

Name :

Mr. M.M. Mathur

Designation :

Whole-time Director

Date of Birth/Age :

11.09.1936

Qualification :

M.A. and Diploma in Management

Expertise in specific functional area :

General Management and Marketing

Brief Resume :

Mr. M.M. Mathur after completing his Graduation in Science obtained a Masters Degree in English in addition to a Diploma in Management. Mr. M.M. Mathur's association with the Group now stretches to about four decades during which he has held various Senior positions. Most of Mr. Mathur's experience is in the Energy Sector as Service provider in oil and gas transmission of pipelines, onshore and offshore in areas of Internal and External Coatings and Cathodic Protection System.

 

Mr. Mathur is a member of several International Associations viz; National Association of Pipeline Applicators, U.S.A. Indo-German Chamber of Commerce etc. Since his first appointment, he has been rendering valuable service to the Company by way of being not only on Company's Board, but even on few important Committees of Board such as Committee of Directors and Share Transfer Committee.

 

 

Name :

Mr. R.K. Bahri

Designation :

Whole-time Director

Date of Birth/ Age :

10.09.1942

Qualification :

B.E. Mech.

Expertise in specific functional area

General Management and Production

Directorship held in other Companies

PSL Corrosion Control Services Limited

Eurocoustic Products Limited

Indian Institute of Corrosion

Brief Resume :

Shri R. K. Bahri, primarily a qualified Mechanical Engineer, had joined the Company as a Director in 1989 and later elevated to the position of Whole Time Director in April 1994. Prior to his induction, he had spent over two decades with Fedders Lloyd Corporation in various senior positions. Shri Bahri introduced Fusion Bonded Epoxy Coating for Reinforced Steel Bars for the first time in India. He is also serving the Indian Institute of Interior Designs since its inception in various capacities and is the Trustee of NACE International India Section, Ex-Chairman of the Society for Advancement of Electrochemical Science and Technology (SAEST), Bombay Chapter.

 

 

Name :

Mr. D.N. Sehgal

Designation :

Whole-time Director

Date of Birth/ Age :

01.01.1947

Qualification :

B.Tech. - (Prodn) Engg. (Hons), M.tech- Industrial Engg.

Expertise in specific functional area :

General Management and Marketing

Directorship held in other Companies :

v      Sehdev Projects Private Limited

v      PSL FZE

v      PSL Infrastructure Ports Private Limited

Brief Resume :

Shri D.N. Sehgal is a qualified Production Engineer having completed his Post Graduation Programme in Industrial Management and Engineering with distinction. Shri Sehgal has spent three decades in core sector of Indian Economy - eg. Marketing and Project Management of large value complex Industrial projects in Refinery, Petrochemical, Metallurgical and other onshore and offshore pipeline projects. Prior to joining PSL about 2 decades ago, he has held important portfolios in senior capacities in Dodsal Private Limited, BST Engineering Services Limited, Dynacraft Machine Co. Limited and Mukund Iron Steel Works. He joined the Company's Board on September, 1994 and is directly responsible for execution of various important projects of the Company.

 

 

Name :

Mr. S.P. Bhatia

Designation :

Whole-time Director

Date of Birth/ Age :

18.12.1951

Qualification :

B.Sc. Engg. (Mechanical)

Expertise in specific functional area :

Management of various Projects

Directorship held in other Companies :

Punj Corporation Private Limited

Brief Resume :

Shri S.P. Bhatia, born in 1951 is a BSC. Engg. (Mechanical) from Regional Engineering College, Kurukshetra. Shri Bhatia is working with the Group since 1983 and has served in different capacities in various divisions of the Group such as Insulation, Pipe Coating, Pipe Making, etc. Shri Bhatia, as head of the Projects Department, has been responsible for setting up of various projects and facilities at different locations of the Company in India. He has also been responsible for acquiring know-how on behalf of PSL from Byard Engg. Consultants - UK, UMRAN - Turkey and Dr. G.Valle- Italy, PWSGermany and S.I.M- Korea for Pipe Making and Induction Bending Technologies.

 

 

Name :

Mr. G. Gehani

Designation :

Whole-time Director and Company Secretary

Date of Birth/ Age :

27th January, 1953

Qualification :

FCS, M.Com, LL.B, DPM and IR and DCL and SP

Expertise in specific

functional area :

Legal and Secretarial

Brief Resume :

Shri G.Gehani, born in 1953, is a fellow Member of Institute of Company Secretary of India (ICSI) and has to his Credit a few other degrees and Diplomas in different disciplines such as M.Com, LLB, DPM and IR and DCL and SP.

 

Since completion of his Company Secretaryship way back in 1978 and prior to joining PSL in 1991 he worked at various senior positions in Public and Private Sector Companies such as Pawan Hans, CCIC, Taj Group of Hotels etc.

 

Hence, out of total 34 years of post qualification experience, Shri Gehani has been heading the Legal and Secretarial Department of PSL Limited for more than 21 years now. He had effectively contributed in successful completion of Company's maiden IPO, FCCB issue, Right issue and few Preferential Allotments which directly helped in raising adequate funds for establishment of new Production Facilities. Shri Gehani has been associated with various Professional and Social Organizations of the country for last 25 years and has held Senior responsible positions in some of them.

 

 

Name :

Mr. C.K. Goel

Designation :

Whole-time Director

Date of Birth/ Age :

16.11.1957

Qualification :

Diploma in Mech. Engg., Business Management, Refrigeration and Air Conditioning

Expertise in specific functional area :

General Management and Production

Brief Resume :

Shri C.K. Goel, born in 1957 has a post graduate diploma in Mechanical Engineering with specialization apart from a Diploma in Business Management, Refrigeration and Air Conditioning. He had joined PSL way back in 1978 and has now completed 33 years of working in responsible positions. Before taking over as In charge of an important production facility at Varsana in Gujarat, which includes the latest Two-Step Helical Spiral Pipe Mill, Shri Goel has handled and headed various projects and operations in Company's different plants.

 

 

Name :

Mr. N.C. Sharma

Designation :

Independent Director

Date of Birth/Age :

26.11.1942

Qualification :

M.A English Literature

Expertise in specific functional area :

Financial Management

Brief Resume :

Mr. N. C. Sharma is an eminent Insurance Expert having successfully held various senior positions in LIC of India where he rose to the position of its "Managing Director". It is only after his retirement from LIC after serving for more than four decades that Mr. Sharma joined Company's Board as Additional Director with effect from July, 2003 which appointment was later confirmed by the shareholders as they passed an unanimous Resolution in their meeting held on 25th September, 2003.

 

Since his appointment, Mr. Sharma has been rendering valuable service to the Company by way of being not only on Company’s Board, but even on few important Committees of Board such as Audit Committee, Shareholders'/ Investors' Grievance Committee etc.

 

 

Name :

Mr. Prakash V. Apte

Designation :

Independent Director

Date of Birth/Age :

17.08.1943

Qualification :

B. Com, FCA

Expertise in specific functional area :

Finance, Banking and Accounts

Brief Resume :

Mr. Prakash Vinayak Apte, after completing Chartered Accountancy Programme from England in November 1968 worked with many leading Accounting Firms in England up to 1975. Subsequently, after a short spell with Maharashtra Electrosmelt Limited, Mr. Apte joined Hongkong and Shanghai Banking Corporation Limited (HSBC) and worked in various senior positions both within and outside the country for 23 long years. Keeping in view of his vast experience in the field of Banking, Company's Board of Directors appointed him as Additional Director with effect from March 2003, which appointment was later confirmed by the shareholders as they passed an unanimous Resolution in their meeting held on 25th September, 2003. Since his appointment, Mr. Apte has been rendering valuable service to the Company by way of being not only on Company's Board, but even on few important Committees of Board such as Audit Committee, and Remuneration Committee.

 

 

Name :

Mr. Ashok Sharma

Designation :

Independent Director

Date of Birth/Age :

04.07.1942

Qualification :

B. Tech

Expertise in specific functional area :

Information Technology

Brief Resume :

Mr. Ashok Sharma after his graduation from Indian Institute of Technology - Madras, India worked in key senior positions in major multinational companies, rising to Senior Regional Management positions in the internationally known companies such as IBM and Microsoft.

 

Mr. Ashok Sharma has an in-depth knowledge of IT activities and related fields of Business Development, Marketing, Sales, Manufacturing and Personnel Management. Based on a unique blend of experience - gained through working for some of the world's largest Organizations - he offers practical advice for implementing Best Practices - to help make corporate strategy work.

 

Looking at the vast knowledge that Mr. Sharma has in the field of Information Technology, he was inducted on Company's Board as "Additional Director" on 15th December, 2005. Subsequently the shareholders of the Company in their meeting held on 31st August, 2006 passed an unanimous Resolution appointing Mr. Sharma as a Director on the Board.

 

Since his appointment, Mr. Ashok Sharma has been rendering valuable services to the Company by way of being not only on Company's Board, but even on few important Committees of Board such as Remuneration Committee and Shareholders'/ Investors' Grievance Committee.

 

 

Name :

Mr. Harry H. Shourie

Designation :

Independent Director

Date of Birth/ Age :

15.01.1944

Qualification :

Masters in International Relations, MBA

Expertise in specific

functional area

Finance Management

Directorship held in

other Companies

Tri Nexus Advisory, CA, USA

Brief Resume :

Shri Harry H. Shourie holds Masters degree in International Relations from University of Chicago in addition to an MBA from East Texas State University and a Bachelor Degree from Delhi University. He is primarily a Finance Professional having specialization in trade finance. Apart from being advisor for many export projects of United technologies, Hughes aircraft, Northrop aviation, Honeywell, Lockheed, Boeing, HP etc., he has also worked on different projects like South Korean Pipeline Export, Greenfield's Telecom in Philippines and also in Nigeria. He has also handled a major project for Union Bank of California.

 

Having considered his experience in diverse fields such as Finance and International Business, Shri Shourie was inducted on Company's Board in December, 2005 and since then Shri Shourie is rendering very useful advice in the Board deliberations.

 

 

Name :

Mr. Paresh J. Shah

Designation :

Independent Director

 

 

Name :

Mr. Harsh Pateria

Designation :

Independent Director

 

 

KEY EXECUTIVES

 

Name :

Mr. G. Gehani

Designation :

Company Secretary and Compliance Officer

 

 

Name :

Mr. K. Ramanathan

Designation :

Chief Finance Officer (from 01.06.2011)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.06.2012

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

17,361,610

32.48

Bodies Corporate

3,621,100

6.77

Sub Total

20,982,710

39.25

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

20,982,710

39.25

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

4,820,203

9.02

Financial Institutions / Banks

256,703

0.48

Foreign Institutional Investors

2,101,783

3.93

Sub Total

7,178,689

13.43

(2) Non-Institutions

 

 

Bodies Corporate

7,955,692

14.88

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

11,339,122

21.21

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

4,909,037

9.18

Any Others (Specify)

1,095,661

2.05

Non Resident Indians

1,010,922

1.89

Clearing Members

81,239

0.15

Overseas Corporate Bodies

1,000

-

Trusts

2,500

-

Sub Total

25,299,512

47.32

Total Public shareholding (B)

32,478,201

60.75

Total (A)+(B)

53,460,911

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

53,460,911

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of HSAW Pipes.

 

 

Products :

PRODUCT DESCRIPTION

ITEM CODE NO.

Other Tubes, Pipes and Hollow Profiles in Spira or Straight Welded Seam of Dia 300 MM and Above and made out of Iron Steel of all type

3319

External and Internal Coating of Line Pipes

3450

Anti-Corrosion Coatings of Re-Enforced Rebars

3450

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Installed Capacity and Licensed Capacity

 

Particulars

Unit

Installed Capacity and Licensed Capacity

Spiral Arc Welded Pipes

Mt.

1400000

Coating on Steel Pipes

Mtrs.

NA

Anode

Mt.

1500

Wire Mesh

Sqm.

720000

Outer Wrap

Sqm.

2500000

Rebar Coating

--

NA

 

Actual Production

 

Particulars

Unit

Actual Production

 

HSAW Pipes

Mt.

398451.116

Coating on Steel Pipes

Mtrs.

Turnkey Jobs

Anodes

Kgs.

55050.770

Wire Mesh

Sqm.

NIL

Outer Wrap

Sqm.

NIL

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

v      ICICI Bank limited

v      Canara Bank

v      State Bank of India

v      Indian Overseas Bank

v      Bank of Baroda

v      Union Bank of India

v      Punjab National Bank (International) Limited

v      ING Vysya Bank Limited

v      Bank of India

v      Yes Bank Limited

v      Standard Chartered Bank

v      DBS Bank Limited

v      Export Import Bank of India

v      Deutsche Bank

v      IDBI Bank Limited

v      Indian Bank

v      Axis Bank Limited

v      Kotak Mahindra Bank

v      Syndicate Bank

v      Development Credit Bank

v      Oriental Bank of Commerce

 

 

Facilities :

Secured Loans

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

LONG TERM BORROWINGS

 

 

Term Loans From Banks :

 

 

Foreign Currency Loan

1534.300

2232.500

Rupee Loan

1122.422

2789.252

Motor Vehicle Loans

6.324

0.571

SHORT TERM BORROWINGS

 

 

Loans repayable on demand

 

 

i) From Banks

(Secured against Hypothecation of Project Current Assets and Second Charge on some of the Immoveable and Moveable Assets of the Company)

10338.140

2679.479

ii) From Banks

(Secured against Hypothecation of Project Current Assets)

12688.016

6193.604

Total

25689.202

13895.406

 

Nature of Security and Terms of Repayment for Long Term Secured Borrowing

1. Foreign Currency Term Loan (ECB) amounting to USD 50 mn (March 31, 2011 USD 50 mn) is Secured against First Charge on parri passu basis on some of the Immovable and Moveable Assets of the Company.

Terms of Repayment: USD 20 mn on 14th December 2012 and USD 30 mn on 16th January 2015.

2. Term Loan amounting to Rs. Nil (March 31, 2011 Rs.374.504 millions is secured against First Charge on pari passu basis on some of the Immovable and Moveable Assets of the Company).

3. Term Loan amounting to Rs.1400.000 millions (March 31, 2011 Rs.1800.000 millions) is secured against First Charge on pari passu basis on some of the Immovable and Moveable Assets of the Company.

Terms of Repayment: Two Quarterly Installments of Rs.100.000 millions each and Eight quarterly Installment of Rs.150.000 millions each Last Installment 30th September 2014.

4. Term Loan amounting to Rs.888.800 millions (March 31, 2011 Rs.1000.000 millions) is secured against Second charge on pari passu basis over the moveable Assets of the Company.

Terms of Repayment: Monthly installment of Rs.55.555 millions. Last Installment Date 29th July 2013.

5. Term Loan amounting to Rs.500.363 millions (March 31, 2011 Rs.1000.000 millions) is secured against Subsequent Charge on Fixed Assets and Current Assets of the Company.

Terms of Repayment: Quarterly installment of Rs.125.000 millions. Last Installment Date 31st March 2013.

6. Vehicle Loans is Secured by Hypothecation of Specific Vehicles

 

Unsecured Loans

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

SHORT TERM BORROWINGS

 

 

Loans Repayable on Demand

 

 

From Banks

0.000

2500.000

Total

0.000

2500.000

 

 

 

Banking Relations :

--

 

 

Auditors (From 22.09.2011 to 27.09.2012) :

 

Name :

Suresh C. Mathur and Company

Chartered Accountants

Address :

64, Regal Building, Connaught Place, New Delhi – 110 001, India

 

 

Subsidiaries :

In India

 

PSL Corrosion Control Services Limited

Survey No.377/2, Zari Cause Way Road, Kachigam, Daman – 396 210, Union Territory of Daman and Diu, India

 

PSL Gas Distribution Private Limited

Punj House, M-13A, Connaught Circus, New Delhi - 110 001, India

 

PSL Infrastructure and Ports Private Limited

3rd Floor, Punj House, M-13A, Connaught Circus, New Delhi – 110 001, India

 

Abroad

 

Pipeline Systems Limited

C/o IFS, IFS Court, 28 Cybercity, Ebene, Mauritius

 

PSL USA INC.

Corporation Trust Centre, 1209, Orange Street, Wilmington, New Castle, 19801, Delaware, USA

 

PSL North America, LLC

Corporation Trust Centre, 1209, Orange Street, Wilmington, Delaware, USA

 

PSL FZE

P.O. Box No.42131, Inner Harbour Plot No.HJ-02, Hamriyah Free Trade Zone, Sharjah, UAE

 

 

Associate :

v      BHI Limited

v      Broken Hills International Limited

v      Eurocoustic Products Limited

v      Punj International Private Limited

v      Punj Investments Limited

v      Punj Corporation Private Limited

v      Rosoboronterra India Private Limited

(Subsidiary of Punj Corporation Private Limited)

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

100000000

Equity Shares

Rs.10/- each

Rs.1000.000 Millions

 

 

 

 

 

Issued Capital :

No. of Shares

Type

Value

Amount

53460911

Equity Shares

Rs.10/- each

Rs.534.609 Millions

 

 

 

 

 

Subscribed and Paid-up Capital :

No. of Shares

Type

Value

Amount

 

Subscribed & Fully Paid up

 

 

53296811

Equity Shares

Rs.10/- each

Rs.532.968 Millions

 

Subscribed but not Fully Paid up

 

 

164100

Equity Shares

Rs.10/- each

Rs.1.641 Millions

 

Less: Calls in Arrears by Directors

 

Nil

 

Calls in Arrears by Officers

 

Nil

 

Calls in Arrears by Others

 

Rs.1.271 Millions

 

Total

 

Rs.533.338 Millions

 

Particulars

As at March 31, 2012

No. of Equity Shares

Equity Shares Outstanding at the Beginning of the Year

53,460,911

Add: Equity Shares Issued during the Year

NIL

Less: Equity Shares Bought Back during the Year

NIL

Equity Shares Outstanding at the End of the Year

53,460,911

 

The Company has only one class of Equity Shares having a par value of Rs.10/- Per Share. Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of Shareholders, except in case of Interim Dividend. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining Assets of the Company, after distribution of all preferential amounts, in proportion of their Shareholding.

 

Sr. No.

Name of Shareholder

As at March 31, 2012

No. of Shares held

% of Holding

1.

Ashok Y. Punj

4,919,890

9.20

2.

Arjun A. Punj

3,011,580

5.63

3.

Keshav A. Punj

3,011,550

5.63

4.

Reliance Capital Trustee Company Limited (Reliance Infrastructure Fund)

2,849,600

5.33

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

533.338

533.338

533.320

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

8608.970

8370.873

7850.937

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

9142.308

8904.211

8384.257

LOAN FUNDS

 

 

 

1] Secured Loans

25689.202

13895.406

18871.080

2] Unsecured Loans

0.000

2500.000

612.850

TOTAL BORROWING

25689.202

16395.406

19483.930

DEFERRED TAX LIABILITIES

74.546

58.314

106.570

 

 

 

 

TOTAL

34906.056

25357.931

27974.757

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

9370.608

8690.142

7136.488

Capital work-in-progress

2973.566

1966.676

3156.256

 

 

 

 

INVESTMENT

2318.102

2029.157

1943.582

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
23723.604
19146.956
11229.482

 

Sundry Debtors
7045.472
5537.633
5046.902

 

Cash & Bank Balances
2087.720
1935.998
1071.936

 

Other Current Assets
0.000
0.000
0.000

 

Loans & Advances
4561.210
4691.023
6023.207

Total Current Assets
37418.006
31311.610
23371.527

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Sundry Creditors
11368.370
15227.246
4802.295

 

Other Current Liabilities
5326.283
2903.627
2316.328

 

Provisions
479.573
508.781
514.473

Total Current Liabilities
17174.226
18639.654

7633.096

Net Current Assets
20243.780
12671.956
15738.431

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

34906.056

25357.931

27974.757

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from Operations

22779.438

24962.130

25931.566

 

 

Other Income

130.502

342.173

491.344

 

 

TOTAL                                     (A)

22909.940

25304.303

26422.910

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

18128.418

23636.596

23496.584

 

 

Manufacturing and Operating Costs

4376.872

2823.641

 

 

 

Changes in inventories of Finished Goods Work-in-Progress and Stock-in-Trade

(5491.176)

(6592.661)

 

 

 

Employee Benefits Expense

830.405

759.230

 

 

 

Other Expenses

739.447

544.550

 

 

 

TOTAL                                     (B)

18583.966

21171.356

23496.584

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

4325.974

4132.947

2926.326

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

2487.887

1918.360

1089.871

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

1838.087

2214.587

1836.455

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1141.488

1167.956

663.481

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

696.599

1046.631

1172.974

 

 

 

 

 

Less

TAX                                                                  (H)

155.000

290.000

290.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

541.599

756.631

882.975

 

 

 

 

 

Less

PRIOR YEAR EXPENSES (INCOME TAX)

NA

NA

28.503

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

NA

NA

88.297

 

 

Proposed Dividend

NA

NA

213.162

 

 

Tax on Interim Dividend

NA

NA

0.000

 

 

Tax on Proposed Dividend

NA

NA

35.404

 

BALANCE CARRIED TO THE B/S

NA

NA

517.609

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Pipe Sales & Pipe Coating Receipts (FOB)

5680.312

4635.245

1432.663

 

TOTAL EARNINGS

5680.312

4635.245

1432.663

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Material

6461.269

10638.136

937.717

 

 

Stores and Spare Parts

50.173

26.918

195.937

 

TOTAL IMPORTS

6511.442

10665.054

1133.654

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

- Basic

10.13

14.16

18.03

 

- Diluted

10.13

14.16

17.82

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2012

(1st Quarter)

Net Sales

 

 

6381.500

Total Expenditure

 

 

5161.600

PBIDT (Excl OI)

 

 

1219.900

Other Income

 

 

0.000

Operating Profit

 

 

1219.900

Interest

 

 

717.500

Exceptional Items

 

 

0.000

PBDT

 

 

502.400

Depreciation

 

 

310.100

Profit Before Tax

 

 

192.300

Tax

 

 

44.200

Provisions and contingencies

 

 

0.000

Profit After Tax

 

 

148.100

Extraordinary Items

 

 

0.000

Prior Period Expenses

 

 

0.000

Other Adjustments

 

 

0.000

Net Profit

 

 

148.100

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
2.36
2.99
3.34

 

 
 
 
 

Net Profit Margin

(PBT/Sales)

(%)
3.06
4.19
4.52

 

 
 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)
1.49
2.62
3.84

 

 
 
 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.08
0.12
0.04

 

 
 
 
 

Debt Equity Ratio

(Total Liability/Networth)

 
4.69
3.93
3.23

 

 
 
 
 

Current Ratio

(Current Asset/Current Liability)

 
2.18
1.68
3.06

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes

4) Premises details

No

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter’s background

Yes

8) No. of employees

No

9) Name of person contacted

No

10) Designation of contact person

No

11) Turnover of firm for last three years

Yes

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No

19) Payments terms

No

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

Yes

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

Yes

28) Incorporation details, if applicable

Yes

29) Last accounts filed at ROC

Yes

30) Major Shareholders, if available

Yes

31) Date of Birth of Proprietor/Partner/Director, if available

Yes

32) PAN of Proprietor/Partner/Director, if available

No

33) Voter ID No of Proprietor/Partner/Director, if available

No

34) External Agency Rating, if available

Yes

 

 


PERFORMANCE HIGHLIGHTS

 

STANDALONE FINANCIAL STATEMENTS

 

During the Year:

During the year, Indian economy witnessed various issues such as slower growth, high inflation, uncertain political environment and strong forex volatility. Inspite of such adverse external environment an aggregate income of Rs.22909.900 millions was generated which was merely 9% lower than that of previous financial year when the economy did not suffer from all such adverse factors in one single year.

 

The Profit before depreciation and finance cost stood at Rs.4326.000 millions as against Rs.4132.900 millions in previous year thereby registering a growth of 4.7 %. However, the Net Profit before and after Tax stood at Rs.696.600 millions and Rs.541.600 millions during the year respectively against Rs.1046.600 millions and Rs.756.600 millions in the previous year.

 

For the Year:

a) Due to decline in Profit before Tax during the year, the amount of Rs.54.200 millions proposed to be transferred to the General Reserve Account is lesser than that transferred in the previous year.

 

b) Due to similar reason as stated above, the credit balance of Profit and Loss Account proposed to be carried to Balance Sheet is Rs.183.900 millions, which is lesser than that of previous year balance.

 

c) In addition to an Interim Dividend of Rs.2.00 per share paid by the Company, the board has also recommended payment of Rs.2.00 per share as final dividend, thereby aggregating to a total dividend of Rs.4/- per share for the financial year 2011-12.

 

IMPORTANT OPERATIONAL ACHIEVEMENTS

 

Members are aware that amongst various pipe manufacturers in the country, the Company is the only one which has attached adequate importance to establish its pipe manufacturing facilities at various strategic locations of the country. Such decision taken in the past has indeed proved fruitful since a manufacturing capacity in the vicinity of the major pipeline projects as and when they arise, definitely helps in substantially saving on account of transportation cost thereby directly reducing the overall project cost, hence this factor gets more weightage in the minds of prospective customers. This benefits not only the Company, but also facilitates timely execution of major pipeline projects by reducing logistic difficulties and complexities in turn pleasing the owner companies.

 

PRESTIGIOUS ORDER FROM INDIAN OIL CORPORATION LIMITED

 

As stated above the strategic locational advantage of the Company's Jaipur Pipe Mill directly benefited the Company when Indian Oil Corporation Limited recently awarded a very prestigious order for "DE-BOTTLENECKING OF SALAYAMATHURA PIPELINE". This order to the Company further proves, Company's planned development across the country as it demonstrate that proximity of pipe manufacturing to required delivery point is a key advantage both financially and in terms of logistic in the pipe supply business.

 

Having secured this prestigious order, the Company, in the shortest possible time, enhanced the production capacity at its Jaipur Pipe Mill from the previous levels of 150,000 MT per annum to 300,000 MT per annum, effectively doubling the capacity.

 

In addition, specialized coating facilities for Oil and Gas Pipelines were also installed and the whole unit obtained the requisite approval from Indian Oil Corporation Limited and other agencies to supply a portion of SALAYA-MATHURA PIPELINE order.

 

NEW FACILITY FOR THREE LAYER COATING ON LARGE DIAMETER PIPES

 

Continuing to set a pioneering pace, the Company, having secured large supply orders for water pipeline in the state of Gujarat, became the first manufacturer in India and amongst a handful worldwide, to undertake specialized three Layer Polyethylene Coating application on steel pipes having diameter upto 100".

 

The specialized facility was deployed and commissioned in a record time to meet client's requirement for the Gujarat Water and Irrigation Board, which had laid down this challenging specification which the Company was the first to respond to and achieve success in.

 

PERFORMANCE OF SUBSIDIARY COMPANIES

 

ON DOMESTIC FRONT

 

PSL CORROSION CONTROL SERVICES LIMITED - an Indian Company

PSL Corrosion Control Services Limited Operates through its various divisions such as Rebar Coating Division, Corrugated Steel Plate Bridge Division, Steel Structure Division etc.

 

The corrosion resistance FBE coated bars provided by the Company meets all international standards on the subject thereby directly contributing in country's efforts in developing its infrastructure sector. During the year, the Company could bag prestigious orders for providing FBE Coating to the Steel Bars for usage in various infrastructure projects of reputed Companies like ONGC, L&T, Navy, Tata Projects Limited, CIDCO etc.

 

The division of manufacturing steel plate bridges has commenced its operations in India very recently. The division completed the FIRST ever Corrugated Steel Plate Bridge in India at Jawahar, by Govt. of Maharashtra. The project was successfully completed with the help of their collaboration with Fixon, Korea in 21 days.

 

Another division of the Company namely Steel Structure Division was fortunate enough to bag an order from

Reliance Group for constructing a Reliance Retail Mall at Ring Road in Rajkot, Gujarat. This division by using circular steel columns could complete this first steel structure mall in a record time of four months.

 

PSL Corrosion Control Services Limited is confident that with state of the art technologies that it uses in all its aforesaid three divisions, it will be in a position to bag more prestigious order for each of these three divisions in the Current Financial Year.

 

ON INTERNATIONAL FRONT

 

PSL FZE - a UAE based company

The Company's subsidiary PSL FZE, in a systematic and time bound manner, doubled its pipe manufacturing capacity during the course of the year, taking it from 75,000 MT per annum to 150,000 MT per annum.

 

The project was successfully commissioned and the additional capacity has been deployed in serving the customer's pipe requirement in neighbouring Saudi Arabia.

 

PSL NORTH AMERICA LLC - a US based company

The Company's subsidiary in the U.S. "M/s PSL North America LLC" enhanced its pipe manufacturing capacity by adding a specialized module of 75,000 MT per annum capacity enabling the facility to produce pipes for structural application, as well as extra large diameter pipe for upto 110" diameter as opposed to its earlier limitation of 60" diameter maximum.

 

This important development will enable the subsidiary to serve the needs of the rapidly increasing water pipeline sector in the region.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

INDUSTRY STRUCTURE AND DEVELOPMENT

 

During 2011-12 Indian Economy found itself in the midst of conflicting demands namely managing the growth at the minimum desired level on one hand and keeping strict check on prices so as to contain the inflationary pressures.

 

As per the economic survey presented in the parliament, the Indian economy was estimated to grow by 6.9% in 2011-12, after having grown at the rate of 8.4% in each of the two preceding years. At the same time, as compared to many other economies of the world, India remains among the front-runners. Also, it is expected that their economy would rise up to 7.6% in 2012-13 and 8.6% in 2013-14. With Agriculture and Service Sector continuing to perform well, India's slowdown can be attributed almost entirely to weakening Industrial growth. The Service sector contributed 59% in GDP in 2011-12 as compared to 58% in 2010-11 with a growth rate of 9.4%. Inflation as measured by Wholesale price Index (WPI) was high during most of the year, though by the year's end there was clear slow down. Food inflation came down significantly with most of the remaining WPI inflation being driver by non-food manufacturing products. Reserve Bank of India also tightened the monetary policy to control inflation and inflationary expectations. The growth rate of investment registered significant decline and witnessed a sharp increase in Interest rates that resulted into higher cost of borrowing and other cost that affected profitability.

 

OUTLOOK

Overall growth of the pipeline industry would positively be affected by the growth in domestic and emerging market, largely driven by economic growth and increased government spending on pipeline projects. With the growing population and emerging economic spending power of Asian countries, energy needs are increasingly on rise. Based on the various surveys, in India around 200 new cities have been identified for implementation of City Gas Distribution network by 2015. On an average there is a need for laying 30-40 kms. of pipelines per city.

 

On the global front, the growth in the oil and gas pipelines expenditure will be fuelled by the emerging countries of China, Brazil and Venezuela as well as some mature markets such as Canada and Russia. The overall spending on the oil and gas pipeline systems will depend on the future oil price developments, the level of natural gas demand and the expansion of unconventional oil and gas activity. Connecting unconventional and offshore oil and gas to consumption centers would also help to drive the market. Economic growth in the Asia - Pacific has led to surge in demand for natural gas, crude oil and petroleum products. Countries in South Asia and South East Asia is dependent on oil and gas imports from Central Asia and the Middle East. Company's subsidiary PSL FZE has established itself well in the middle east. Another subsidiary setup in North America namely PSL North America LLC also bagged an order for Shale Gas Transmission from US based pipeline operators.

 

The outlook on the domestic front is also encouraging as apart from valuable orders received by the Company from some major players such as IOCL's Debottlenecking of Salaya- Mathura Pipeline Project, many more pipeline projects have been bid by the company and it is hoped that based on the past performances, their company would be successful in its bids.

 

Another most significant development in the Indian market impacting pipe manufacturers was the removal of some of the critical bottlenecks which have prevented, over the last 3 years, the construction of the National Gas Grid planned for implementation from 2008 onwards.

 

Gas Grid

Consisting of approximately 10 major cross country pipelines, this grid was to have been completed by 2013. However, only 2 of the 10 major segments could actually come forward for implementation, while the remaining 8 segments were kept in abeyance due to diverse reasons including:

 

i. Jurisdictional disputes between Public Sector Undertaking charged with implementing 6 of the remaining 8 segments, and

 

ii. The drastic drop and reduction in national gas output from the KG Basin which impacted the implementation of the balance 2 segments.

 

Due to policy resolution and judicial decisions which took place in the intervening 2 years 2010 - 2011, many of the reasons causing these delays were set aside, or resolved, enabling most of the remaining segments to come up for implementation with pressure on the implementing entities to expedite the projects and compensate for some of the lost time.

 

Based on the above, it is expected that 2013, 2014 and 2015 will see a surge in gas pipeline construction in the country, resulting in substantially improved capacity utilization among the pipeline manufacturing industry units.

 

Another significant factor aiding the above development is the conception of a policy to encourage import of LNG, in particular, on the east coast, to compensate or set off the reduction in gas production from KG Basin, and this policy when implemented will further enhance pipeline construction, in addition to the gas grid, to facilitate off take of this imported LNG.

 

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATONAL PERFORMANCE

 

The board has decentralized most of the operational powers to different operational levels at widely spread network of Company's plants so as to reduce the occurrence of inefficient operational performance due to lack of decision making powers. Delegation of powers at Senior and Middle management has been resorted to avoid such occurrences. However, important areas like funds requirements at different units and mode for raising such funds are done in a centralized manner.

 

Apart from routine up gradation of the production facilities at various plants set up by the company, planning for setting up of new projects at various strategic location is done at the Headquarters with the help of suitable inputs from experienced unit heads and management.

 

CONTINGENT LIABILITIES

 

PARTICULARS

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

A. Counter Guarantees given by the Company for Bank Guarantees

5116.506

5996.168

B. Other Guarantees Given by the Company on behalf of Subsidiary Company

[Includes Corporate Guarantee as Security for a Standby Letter of Credit (SBLC) given by a bank in USA amounting to Rs.3120.000 millions (equivalent to USD 78 mn) towards security for Tax Exempt Variable Rate Demand Revenue Bonds - Series 2007A and Taxable Variable Rate Demand Revenue Bonds- Series 2007 B issued by Mississippi Business Finance Corporation USA on behalf of Company’s wholly owned subsidiary]

18577.496

11988.525

- Others

28.607

198.784

C. Letter of Credit Outstanding (Not yet committed)

1571.950

6576.735

D. Bills Discounting

1201.090

809.228

E. Estimated amount of contracts remaining to be executed on capital  account and not provided for (Net of advances)

300.000

300.000

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2012

(Rs. in millions)

Particulars

Standalone for Quarter Ended on 30.06.2012

Unaudited

Part I

 

1. Income Other Operation

 

(a) Gross Sales/Income from Operations

6583.900

(b)Less: Excise Duty

251.000

(c) Net Sales Income from Operation

6332.900

(d)Other Operating Income

48.600

Total

6381.500

2. Expenditure

 

(a) Consumption of raw materials

4569.900

(b) Purchase of traded Goods

0.000

(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade

(880.400)

(d) Employee benefits expenses

170.300

(e) Depreciation

310.100

(f) Other Expenditure

1301.800

(any item exceeding 10% of the total Expenditure to be shown separately)

 

Total

5471.700

3. Profit from operation before other income, interest and exceptional items (1-2)

909.800

4. Other Income

0.000

5. Profit from ordinary activities before Finance costs and Exceptional Items (3+4)

909.800

6. Finance Costs

717.500

7. Profit from ordinary activities after Finance costs but before Exceptional Items (5-6)

192.300

8. Exceptional Items

0.000

9. Profit(+)/Loss(-) from Ordinary Activities before tax (7+8)

192.300

10. Tax Expenses

44.200

11. Net Profit(+)/Loss(-) from Ordinary Activities after tax (9-10)

148.100

12. Extraordinary Items

0.000

13. Net Profit(+)/Loss(-) for the period (11-­12)

148.100

14. Share of Profit / (Loss) of associates*

0.000

15. Minority Interest *

0.000

16. Net Profit/ (Loss) after taxes, minority interest and share of profit/ (loss) of associates (13+14+15) *

148.100

17. Paid-up Equity Share Capital (@ Rs.10/ per share)

533.300

18. Reserves excluding revaluation reserves as per balance sheet of previous accounting year

--

Earning Per Share (EPS) before Extraordinary items (of Rs.10/- each) (not annualized)

 

- Basic

2.77

- Diluted

2.77

 

 

Earning Per Share (EPS) after Extraordinary items (of Rs.10/- each) (not annualized)

 

- Basic

2.77

- Diluted

2.77

 

 

Part II

 

A. PARTICULARS OF SHAREHOLDING

 

1. Public Shareholding

 

- Number of Shares

32478201

- Percentage of Shareholding

60.75%

2. Promoters and Promoter group

 

a) Pledged /Encumbered

 

(i) Number of shares

Nil

(ii) Percentage of shares (as a % of total shareholding of the promoter and promoter group)

Nil

(iii) Percentage of shares (as a % of total share capital of the company)

Nil

b) Non  Encumbered

 

(i) Number of shares

20982710

(ii) Percentage of shares (as a % of total shareholding of the promoter and promoter group)

100%

(iii) Percentage of shares (as a % of total share capital of the company)

39.25%

 

 

B. INVESTOR COMPLAINTS

 

Pending at the beginning of the quarter

0

Received during the quarter

0

Disposal of during the quarter

0

Remaining unresolved at the end of the quarter

0

 

FIXED ASSETS

Tangible Assets:

v      Free Hold Land

v      Lease Hold Land

v      Office Buildings

v      Factory Building

v      Furniture and Fixtures

v      Plant and Equipment

v      Office Equipments

v      Lab Equipments

v      Computers

v      Motor Cars

v      Commercial Vehicles

v      Cycles    

v      Earth Moving Equipments

v      Shed Construction

Intangible Assets:

v      Computer Software

 

WEBSITE DETAILS

 

PRESS RELAESES:

 

PSL SECURES ORDER FROM INDIAN OIL WORTH RS.5700.000 MILLIONS FOR SALAYA-MATHURA PIPELINE DEBOTTLENECKING PROJECT

 

PSL - Wednesday, April 11, 2012

 

Company Completes the supply of pipes for Kochi-Kottanad-Bangalore-Mangalore Gas Pipeline (KKBMPL) Project of GAIL India  PSL Limited, a global leader in manufacturing and coating of pipes for transporting hydrocarbon products, water products, and steel structural applications, and the largest manufacturer of high-grade large diameter Helical Submerged Arc Welded (HSAW) pipes in India, today announced that it has bagged an order from Indian Oil Corporation Limited (IOC) cumulating to approximately Rs. 5700.000 Millions for the manufacture of pipes and provision of ancillary coating services towards the Salaya-Mathura Pipeline (SMPL) Project.

 

The company is to supply 28-inch diameter coated steel pipes for IOCs 821 km. oil pipeline de-bottlenecking project. Production for this order is expected to commence almost immediately, with pipe for this particular project being of X-70 Grade and up to 40 feet in length. PSL’s state-of-the-art pipe mills located at Jaipur and Kandla shall be pressed into service to meet the aforementioned supply requirements - these facilities are fully geared to meet the challenge and complete supply within the current financial year.

 

It would also be interesting to note that very recently PSL successfully completed the pipe supply requirements for another large oil and gas major, GAIL, adhering to the most stringent quality specifications. The total order value was Rs. 7530.000 Millions, and the total length of pipe supplied was an estimated 735 km., of which 437 km. comprised API X-80 Grade Pipes and the remaining 298 km. comprised API X-70 Grade Pipe. This was the third major gas pipeline being implemented by GAIL utilizing high-grade X-80 pipe, making GAIL, and India, operators of the second largest X-80 pipeline network globally. Both PSL’s Chennai and Vizag pipe mills, which were in close proximity to the pipeline’s right-of-way (ROW), enabled PSL to offer not just competitive prices but timely delivery as well.

 

Mr. Ashok Punj, MD, PSL Limited stated “PSL has steadily built its strong supply-chain capabilities over many years, and therefore looks forward to ever-enhancing participation in the development of the nation’s energy grid and oil and gas network. These orders reinstate the trust of our clients in PSL Limited and further strengthen our foothold in the Indian market. We are positive that our technical expertise and the proximity of our various mills to these projects will deliver high quality products and services to our customers in a prompt manner.”

 

Following the receipt of these projects, the standalone order book of PSL Limited stands at approximately Rs.30500.000 Millions, while the consolidated order book is approximately Rs.36100.000 Millions, with various high-value bids still outstanding and currently awaiting award.

 

PSL BAGS ADDITIONAL ORDERS WORTH RS.7420.000 MILLIONS FOR VARIOUS INTERNATIONAL/DOMESTIC PROJECTS - COMPANY AND ITS FOREIGN SUBSIDIARY SECURE NEW PROJECTS WITHIN THE OFFSHORE OIL AND GAS, WATER, AND PETROLEUM STORAGE SEGMENTS

 

PSL - Tuesday, February 14, 2012

 

PSL Limited, a global leader in manufacturing and coating of pipes for transporting hydrocarbon products, water products, and steel structural applications, and the largest manufacturer of high-grade large diameter Helical Submerged Arc Welded (HSAW) pipes in India, today announced that both the company and its Middle Eastern subsidiary PSL FZE, based in Sharjah, UAE, have bagged orders cumulating over Rs. 7420.000 Millions for the manufacture of pipes and the provision of ancillary coating services. The orders are with leading international and domestic infrastructure majors such as M/s. Leighton Offshore, M/s. Larsen and Toubro, M/s. Nagarjuna Construction Company, M/s. Pratibha Industries, and assorted other customers, and have all been secured in Q4 FY2011/12 till date.

 

The foreign order component comprises the award of an offshore pipe coating project by Leighton Offshore, Malaysia, for an SPM Pipeline Project in Iraq. The scope of work includes coating approximately 66 kms. of 48-inch diameter bare line pipes, and the contract has been awarded to PSL FZE despite stiff competition from well-established pipe coating companies based in the Middle East. PSL had earlier worked successfully as a subcontractor for Leighton India on its SPM pipeline projects in both Vishakhapatnam and Kandla, and this had been an important factor for favourable award of works in favour of PSL FZE.

 

Mr. Ashok Punj, MD, PSL Limited stated “With oil prices at current levels, Iraq and other Arabian Gulf Nations are looking forward to ramping up their infrastructure capabilities to boost export capacities. Thus, the market for supply of pipe and attendant coating services is quite positive, and PSL FZE is accordingly geared with vendor approvals from major clients like Abu Dhabhi Marine Operating Company and Qatar Petroleum to serve this requirement.”

 

PSL also announced that the company has secured orders from large domestic companies L&T, NCC, and Pratibha for water pipeline projects being implemented in the states of Gujarat and Tamilnadu. The company’s Kandla and Chennai pipe mills, respectively, shall be pressed to meet these pipe supply requirements.

 

Mr. Punj added “These customers have placed firm orders on PSL mills in order to both optimize their logistic and procurement costs, and ensure timely completion of their water pipelines in accordance with project schedules. The pipes manufactured by PSL at its various locations across the country hence offer the best solution to these repeat customers on a regular basis.”

 

Following the receipt of these projects, the standalone order book of PSL Limited stands at approximately Rs.29000.000 Millions, while the consolidated order book is approximately Rs.35000.000 Millions, with various high-value bids still outstanding and currently awaiting award.

 

 

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.55.65

UK Pound

1

Rs.88.10

Euro

1

Rs.69.84

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

53

 

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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.