1. Summary Information

 

 

Country

India

Company Name

PSL LIMITED

Principal Name 1

Mr. Ashok Punj

Status

Good

Principal Name 2

Mr. G. S. Sauhta

 

 

Registration #

56-002395

Street Address

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

Established Date

24.08.1987

SIC Code

--

Telephone#

91-260-2242989 / 2252248 / 2244496

Business Style 1

Manufacturer

Fax #

91-260-2241932

Business Style 2

--

Homepage

http://www.psllimited.com

Product Name 1

Line Pipe

# of employees

2500 (Approximately)

Product Name 2

--

Paid up capital

Rs. 533,338,000/-

Product Name 3

--

Shareholders

Shareholding of Promoter and Promoter – 39.25 %

 

Public shareholding –  60.75%

Banking

ICICI Bank limited

 

Public Limited Corp.

Yes

Business Period

25 Years

IPO

Yes

International Ins.

-

Public Enterprise

Yes

Rating

B (56)

Related Company

Relation

Country

Company Name

CEO

Subsidiaries

India

PSL Corrosion Control Services Limited

 

--

Note

-

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2011

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

12,164,655,000

Current Liabilities

16,791,806,000

Inventories

19,146,955,000

Long-term Liabilities

17,781,021,000

Fixed Assets

8,690,142,000

Other Liabilities

520,547,000

Deferred Assets

0,000

Total Liabilities

35,093,374,000

Invest& other Assets

3,995,833,000

Retained Earnings

8,370,873,000

 

 

Net Worth

8,904,211,000

Total Assets

43,997,585,000

Total Liab. & Equity

43,997,585,000

 Total Assets

(Previous Year)

35,607,853,000

 

 

P/L Statement as of

31.03.2011

(Unit: Indian Rs.)

Sales

25,786,744,000

Net Profit

757,107,000

Sales(Previous yr)

27,615,206,000

Net Profit(Prev.yr)

882,975,000

MIRA INFORM REPORT

 

 

Report Date :

18.06.2012

 

IDENTIFICATION DETAILS

 

Name :

PSL LIMITED (w.e.f. 19.05.2003)

 

 

Formerly Known As :

PSL HOLDINGS LIMITED

 

 

Registered Office :

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

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

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 :

A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer of Line Pipe for Oil and Gas Pipe Lines, Non-Galvanised Corrosion coating, Cranes Designated for Mounting on road vehicles, Epoxy Powder for Anti-Corrosion Treatment.

 

 

No. of Employees :

2500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A  (56)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 36000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having fine track. There appears some dip in the sales turnover and the profitability of the company. However, trade relations are reported as 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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

Kachigam, Daman, P. O. Box No. 25, Union Territory of Daman and Diu, Daman and Diu – 396 210, 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-110001, India

 

 

Marketing Office 2 :

“PSL House”, B-96, Greater Kailash-I, New Delhi – 110 048, India

 

 

Marketing Office 3 :

Meridian House, 8/2, Montieth Lane, Egmore, Chennai - 600008, 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,  Union Territory of Daman and Diu, Daman and Diu-396210, India

 

 

Plant 6 :

No. 22, Vaiyavoor, Maduranthakam Taluk, Kancheepuram Distirct, 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-533437, 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 42131, Inner Harbour, Plot No. HJ02, Hamriyah Free Trade Zone, Sharjah, UAE

 

 

 

 

DIRECTORS

 

As on 31.03.2011

 

Name :

Mr. Ashok Punj

Designation :

Managing Director

Qualification :

Bachelors in Electrical Engineering

Masters in System Engineering

 

 

Name :

Mr. G. S. Sauhta

Designation :

Whole-time Director

 

 

Name :

Mr. S. P. Bhatia

Designation :

Whole-time Director

Qualification :

B.Sc. (Mechanical Engineer)

 

 

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

Directorship held in

other Companies
  • Mukund Limited
  • K-Life Style Technologies Limited
  • Eskay K'n'it (India) Limited
  • Asian Oilfield Services Limited

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. Harry H. Shourie

Designation :

Independent Director

Qualification :

Master Degree in International Relations

MBA

 

 

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

Directorship held in

other Companies
  • Eurocoustic Products Limited
  • Punj Investments Private Limited
  • Broken Hills International Private Limited
  • BHI Limited
  • Punj International Private Limited
  • Sai Shakti Properties Private Limited
  • PSL USA Inc.

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. R. K. Bahri

Designation :

Whole-time Director

Qualification :

Mechanical Engineer

 

 

Name :

Mr. G. Gehani

Designation :

Whole-time Director

Qualification :

M.Com, LLB, DPM and IR, DCl and SP

 

 

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

Directorship held in

other Companies
  • Arohan Trustee Company Private Limited
  • Calcutta Promotions Private Limited

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. Paresh J. Shah

Designation :

Independent Director

 

 

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. D. N. Sehgal

Designation :

Whole-time Director

Qualification :

Post Graduation Programme  in Industrial Management and Engineering

 

 

Name :

Mr. C. K. Goel

Designation :

Whole-time Director

Qualification :

Post Diploma in Mechanical Engineering

Diploma in Business Management

 

 

Name :

Mr. Ashok Sharma

Designation :

Independent Director

Date of Birth/Age :

04.07.1942

Qualification :

B. Tech

Expertise in specific functional area :

Information Technology

Directorship held in

other Companies

Advanced Business Solutions FZE LLC, Dubai

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. 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 31.03.2012

 

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

253,880

0.47

Foreign Institutional Investors

2,299,262

4.30

Sub Total

7,373,345

13.79

(2) Non-Institutions

 

 

Bodies Corporate

7,894,717

14.77

Individuals

 

 

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

11,054,095

 

21.15

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

4,864,368

9.10

Any Others (Specify)

1,040,676

1.95

Non Resident Indians

953,640   

1.78

Clearing Members

83,036

0.16

Overseas Corporate Bodies

1,000

--

Trusts

3,000

0.01

Sub Total

25,104,856

46.96

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 Line Pipe for Oil and Gas Pipe Lines, Non-Galvanised Corrosion coating, Cranes Designated for Mounting on road vehicles, Epoxy Powder for Anti-Corrosion Treatment.

 

 

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 :

2500 (Approximately)

 

 

Bankers :
  • ICICI Bank limited
  • Canara Bank
  • State Bank of India
  • Indian Overseas Bank
  • Bank of Baroda
  • Union Bank of India
  • Punjab National Bank (International) Limited
  • ING Vysya Bank Limited
  • Bank of India
  • Yes Bank Limited
  • Standard Chartered Bank
  • DBS Bank Limited
  • Export Import Bank of India
  • Deutsche Bank
  • IDBI Bank Limited
  • Indian Bank
  • Axis Bank Limited
  • Kotak Mahindra Bank
  • Syndicate Bank
  • Development Credit Bank

 

 

Facilities :

 

  PARTICULARS

(SECURED LOANS)

As on 31.03.2011 Rs. in Millions

As on 31.03.2010

Rs. in Millions

A. Term Loan from Financial Institutions , Banks and Non Banking Financial Institutions

[Secured against first charge on some of the immovable and moveable assets of the Company ]

2607.005

2934.352

B. working Capital Term Loan from Scheduled Banks

[Secured against first charge on pari passu basis on some of the immovable and moveable assets of the Company]

1800.000

2000.000

C. From Scheduled Banks

[Secured against hypothecation of Current Assets and second charge on the assets as per [A] above]

10873.445

13934.502

D. From Scheduled Banks

[Motor Vehicle Loans]

0.571

2.226

Total

15281.021

18871.080

 

  PARTICULARS

(UNSECURED LOAN)

As on 31.03.2011

Rs. in Millions

As on 31.03.2010

Rs. in Millions

Foreign Currency Convertible Bonds

(Redeemable in 2010) (Unsecured)

0.000

112.850

From Scheduled Banks

2500.000

500.000

Total

2500.00

612.850

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Suresh C. Mathur and Company

Chartered Accountants

Address :

64, Regal Building, Connaught Place, New Delhi-110001, Delhi, India

 

 

Subsidiaries :

Indian Subsidiaries

PSL Corrosion Control Services Limited

Survey No. 377/2, Zari Cause Way Road, Kachigam, Union Territory of Daman and Diu, Daman and Diu -396210, India

 

PSL Gas Distribution Private Limted

Punj House, M-13A, Connaught Circus, New Delhi-110001, Delhi, India

 

PSL Infrastructure and Ports Private Limited

3rd Floor, Punj House, M-13A, Connaught Circus, New Delhi-110001, Delhi, India

 

Foreign Subsidiaries

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 Zone, Sharjah, UAE

 

 

Companies in which control exist directly / indirectly :
  • BHI Limited
  • Broken Hills International Limited
  • Eurocoustic Products Limited
  • Punj International Private Limited
  • Punj Investments Limited
  • Punj Corporation Private Limited
  • Rosoboronterra India Private Limited (Subsidiary of Punj Corporation Private Limited.)

 

 

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100000000

Equity Shares

Rs.10/- each

1000.000 Millions

 

 

 

 

 

Issued and Subscribed and Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

53460911

Equity Shares

Rs.10/- each

Rs.534.609 Millions

 

Less : Allotment Money in Arrears Pertaining to The Shares Allotted Prior to Merger (Directors Nil)

 

Rs.1.271 Millions

 

Total

 

Rs.533.338 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

533.338

533.320

425.819

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

8370.873

7850.937

5859.349

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

8904.211

8384.257

6285.168

LOAN FUNDS

 

 

 

1] Secured Loans

15281.021

18871.080

6196.383

2] Unsecured Loans

2500.000

612.850

127.375

TOTAL BORROWING

17781.021

19483.930

6323.758

DEFERRED TAX LIABILITIES

58.314

106.570

4.252

 

 

 

 

TOTAL

26743.546

27974.757

12613.178

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

8690.142

7134.488

4559.996

Capital work-in-progress

1966.676

3156.256

2283.973

 

 

 

 

INVESTMENT

2029.157

1943.582

1942.692

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
19146.955
11229.482
17177.836

 

Sundry Debtors
5537.634
5046.902
5232.642

 

Cash & Bank Balances
1935.998
1071.936
1206.186

 

Other Current Assets
0.000
0.000
0.000

 

Loans & Advances
4691.023
6023.207
5064.291

Total Current Assets
31311.610
23371.527
28680.955

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Sundry Creditors
15227.246
4802.295

23010.077

 

Other Current Liabilities
1564.560
2316.328
1233.584

 

Provisions
462.233
514.473
610.777

Total Current Liabilities
17254.039
7633.096

24854.438

Net Current Assets
14057.571
15738.431

3826.517

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

26743.546

27974.757

12613.178

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

25786.744

27615.206

34879.572

 

 

Other Income

912.205

491.344

619.932

 

 

TOTAL                                     (A)

26698.949

28106.550

35499.504

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials

17509.626

20783.208

25428.533

 

 

Manufacturing Expenses

1746.319

1358.437

2293.869

 

 

Excise Duty

2005.803

1683.640

3261.837

 

 

Employee Cost

759.230

588.588

631.231

 

 

Bad Debts Written off

12.000

0.000

0.000

 

 

Other Expenses

1036.435

766.351

1038.883

 

 

TOTAL                                     (B)

23069.413

25180.224

32654.353

 

 

 

 

 

Less

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

3629.536

2926.326

2845.151

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1414.473

1089.871

1007.193

 

 

 

 

 

 

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

2215.063

1836.455

1837.958

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1167.956

663.481

570.664

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1047.107

1172.974

1267.294

 

 

 

 

 

Less

TAX                                                                  (H)

290.000

290.000

408.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

757.107

882.975

859.294

 

 

 

 

 

Less

PRIOR YEAR EXPENSES (INCOME TAX)

16.350

28.503

(19.171)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

75.711

88.297

100.000

 

 

Interim Dividend

106.594

0.000

106.351

 

 

Proposed Dividend

106.668

213.162

106.455

 

 

Tax on Interim Dividend

17.704

0.000

18.074

 

 

Tax on Proposed Dividend

17.309

35.404

18.097

 

BALANCE CARRIED TO THE B/S

416.771

517.609

529.488

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

4635.245

1432.663

715.172

 

TOTAL EARNINGS

4635.245

1432.663

715.172

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

10638.136

937.717

21788.586

 

 

Stores and Spares

26.918

195.937

71.261

 

TOTAL IMPORTS

10665.054

1133.654

21859.847

 

 

 

 

 

 

Earnings Per Share (Rs.)

14.16

18.03

20.12

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2011

1St Quarter

30.09.2011

2nd  Quarter

31.12.2011

3rd Quarter

31.03.2012

4th Quarter

Net Sales

5279.200

5090.800

5206.600

8020.900

Total Expenditure

4342.800

4258.500

4425.600

6773.300

PBIDT (Excl OI)

936.400

832.300

781.000

1247.600

Other Income

0.000

0.000

0.000

0.000

Operating Profit

936.410

832.300

781.000

1247.600

Interest

444.400

405.000

408.300

701.700

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

492.000

427.300

372.700

545.900

Depreciation

285.100

277.600

277.600

301.000

Profit Before Tax

206.900

149.700

95.100

244.900

Tax

62.100

44.900

28.500

19.500

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

144.800

104.800

66.600

225.400

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

144.800

104.800

66.600

225.400

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
2.84
3.14
2.42

 

 
 
 
 

Net Profit Margin

(PBT/Sales)

(%)
4.06
4.24
3.63

 

 
 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)
2.61
3.85
3.57

 

 
 
 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.12
0.14
0.20

 

 
 
 
 

Debt Equity Ratio

(Total Liability/Networth)

 
3.93
3.25
4.96

 

 
 
 
 

Current Ratio

(Current Asset/Current Liability)

 
1.81
3.06
1.15

 

 

 

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

Yes

9) Name of person contacted

No

10) Designation of contact person

No

11) Turnover of firm for last two years

Yes

12) Profitability for last two 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

--

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

No

 

FINANCIAL PERFORMANCE

 

DURING THE YEAR

 

While the Indian economy was still trying to come out from the adverse effects of recessionary trends, which affected the whole world in turn affecting the top line of many of the Indian Companies, the Company’s Total Income stood at Rs.26698.900 Millions, which almost equaled the Company’s income in the previous year. Moreover, in spite of absence of any growth in the turnover, Net Profit before Depreciation and Interest registered an impressive growth of 24%. However, consequent upon the charge of higher depreciation to Profit and Loss Account due to wider Capital goods base, the Net Profit before Tax did decrease marginally from Rs.1173.000 Millions in the previous year to Rs.1047.100 Millions during the year.

 

FOR THE YEAR

 

a) As a direct result of decline of Profit before Tax during the year, the General Reserve Account is proposed to be credited with Rs.75.700 Millions, which is lesser than the amount of credit accorded in the previous Financial Year.

 

b) Due to similar reason as above, the Credit Balance of Profit and Loss Account proposed to be carried to Balance Sheet is Rs.416.800 Millions, which is lesser than similar balance credited in the previous year.

 

c) Keeping in view the interest of the investors of the Company and to abide by Long Term Dividend Policy of the Company, in addition to an Interim Dividend of Rs.2.00 per share already paid by the Company in March 2011, the Board has recommended further payment of Rs.2.00 per share as Final Dividend also. If the members approve the said recommendation in the forthcoming Annual General Meeting, the aggregate dividend for the Financial Year 2010-11 would be Rs.4.00 per share working out to a 40% Dividend Payout Ratio.

 

OPERATIONAL ACHIEVEMENTS

 

The Company has, over the course of the Financial Year, achieved a number of milestones in spite of facing a difficult and complex business and operating environment.

 

STATUS OF DOMESTIC FRONT

 

Several delays in implementation and expansion of the natural gas grid coupled with deteriorating macro-sector business conditions in terms of raw material, inflation and interest rate enhancement, have adversely impacted Indian businesses operating within the pipeline sector.

 

(The Company has seized the opportunity to position itself competitively vis-a-vis these developments by initiating the process of related diversification within the pipeline field, thereby yielding the prospect of considerable synergies in the years to come.)

 

Despite these difficulties, the Company has managed to complete a host of projects on time and within budget. It has also had the privilege to be part of the growth story in terms of the country’s water sector developments. The brief list of Oil and Gas and Water projects successfully completed during the course of the year.

 

In this 25th year of operation, the Company stands as an example of progress in the field of nation building and infrastructure development.

 

PROGRESS ON OVERSEAS FRONT

 

A) North America Project

 

Upon successful completion of its maiden order within the continental United States, as indicated in last year’s Annual Report, PSL North America LLC has commenced efforts to enhance its reach within the North American gas pipeline markets and also the water and structural pipe segments of the North American market. In spite of adverse business condition coupled with a depressed natural gas price environment, PSL North America has successfully secured and executed several smaller pipeline projects and is well positioned, at the time of this report, for securing two major gas pipeline projects where its bids have been evaluated and found competitive.

 

PSL North America’s quality record has been appreciated in view of the fact that ‘zero’ failures have occurred under field hydro-testing conditions of its supplied pipes. This is despite an extremely stringent quality assurance and testing procedure imposed on United States pipeline projects by PHMSA (Pipeline and Hazardous Materials Safety Administration).

 

Prospects of an improvement in the natural gas pipeline industry segment within the North American market are bright because of the new development ‘Shale Gas’ discoveries. This newly developing component of the natural gas industry is likely to provide a growth impetus to pipe manufacturers within the continental USA.

 

B) UAE Project

 

The Company’s associate in the UAE – PSL FZE has seen a veritable turnaround in market prospects in the Middle East over the past year, culminating in securing its single largest order from the Saudi Saline Water Commission for high grade steel pipe amounting to approximately US$ 80 Million in value. To cater to this enhanced demand, the Company has decided to enhance its capacity and prepare to meet related demands from Middle East and North African clients in the coming years. 

 

The Company is active in providing anti-corrosion and negative buoyancy services to the offshore pipe industry in the gulf which has seen a strong revival with both gas and oil offshore construction being stimulated by prevailing higher crude oil prices.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

INDUSTRY STRUCTURE AND DEVELOPMENT

 

Consequent upon collapse in the global businesses and international trade due to major financial crisis in the period 2007-09, the Indian economy also had an adverse impact although much lesser in quantum than that for major developed countries of the world. Hence, as compared to many other economies of the world, their economy could sustain itself not only during the peak of the crisis period but even in the two succeeding financial years i.e. 2009-10 and 2010-11 during which the ripple effect of the crisis continued. Again, in spite of the fact that the three successive years i.e. 2008-09, 2009-10 and 2010- 11 witnessed erratic agricultural growth and its direct and indirect adverse effect on the economy, it could generally grow at approximatley 8% in 2010-11 if the Government statistics are to be believed. The medium to long term prospect of the economy including the Industrial Sector continued to be positive in spite of a little declaration in Industry and Manufacturing Sectors. The GDP could grow as a direct result of rise in savings and investments coupled with enhanced consumption. Although, inflationary trends were witnessed but the focus of such inflationary pressures remained generally driven by food items pushing the inflation to elevated levels for a large part of the Financial Year, 2010-11. In spite of adequate movement in prices of crude oil mainly caused by political turmoil in the Middle East, exports could improve and imports did take a dip resulting into an appreciable balance of payment position.

 

With the aforesaid background of Global as well as Indian economy, one can confidently say that as the global economy gradually returns to normalcy and achieve pre-recession status, the future of Indian economy will also gradually improve thereby pushing the Manufacturing Sector in general and Pipe making Industry in particular.

 

OUTLOOK

 

The clouds of global recession, which made the whole world suffer, are slowly and slowly getting cleared from the sky of uncertainties. As a result of such pleasant developments, Indian economy is looking forward for playing a vital role in the world economy with each of its three important Sectors namely Agricultural, Manufacturing and Services playing a significant role in contributing their respective might to boost the GDP of the country.

 

Regarding the Company's own outlook, it can confidently claim that the high-tech State of the Art Plant set up by Company's Subsidiary namely, 'PSL North America LLC' at St. Bay Louise near Gulf of Mexico has established itself very well in the North America particularly after very successfully completing the first major Project awarded to it by Florida Gas Company. While few competitors have come on the US Pipeline Industry map, huge demand arising in North America as a result of Gas and Oil Policies followed by US administration post the infamous gas leak is a big hope for Company's US establishment.

 

On the Middle East front, while at the Plant established by Company's Subsidiary at Hamriya Free Trade Zone in Sharjah, UAE, another Pipe Mill is being added to it has, after successfully completing an earlier prestigious Order awarded by Multinational Construction Company has bagged another Saudi Arabian Order worth US$ 80 Million, which shall be adequate enough to keep the Plant in full operation for the entire Current Financial Year.

 

The outlook on domestic front is also encouraging as apart from prestigious orders bagged by the Company from Indian Oil Corporation Limited (IOCL), Gas Authority of India Limited (GAIL) and National Thermal Power Corporation Limited (NTPC) in the recent past, many more Pipeline Projects have been bid by the Company and it is hoped that based on its strategic planning of establishing Pipe Mills at different strategic locations of the country, Company will be successful in bagging many of the Projects bid by it.

 

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

 

With the wide network of Plants, Branches and Offices of the Company across the length and breadth of the Country, it is important that apart from achievement of good performance of the various production facilities, excellent financial performance of each Unit is also achieved. While adequate decentralization of powers at Plants and Branches level has been resorted to, all crucial decisions pertaining to operation as well as finance are taken at Company's Headquarters at Mumbai. The centralized purchase of the major raw-materials and the centralized fund raising exercise at Headquarters level has indeed proved beneficial to the Company as both these areas are fairly sensitive keeping in view the peculiar nature of Company's operations. As an on going exercise continuous planning by senior personnel based at Headquarters in Mumbai with respect to crucial operational matters goes a long way in exercising strict cost controls eventually resulting into profit maximization.

 

CONTINGENT LIABILITIES

 

(Rs. In Millions)

PARTICULARS

31.03.2011

31.03.2010

Counter Guarantees Given by the Company for Bank Guarantees

5996.168

8842.360

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 2007B issued by Mississippi Business Finance Corporation USA on behalf of company's wholly owned subsidiary]

11988.525

7696.370
  • Others

198.784

195.603

Letter of Credit Outstandings (Not yet Commited)

6576.735

555.614

Bills Discounting

809.228

1480.876

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

300.000

300.000

 

 

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH, 2012

 

 

 

 

 

 

Rs in Millions

 

Particulars

Quarter Ended

Quarter Ended

Year Ended

 

31.03.2012

31.12.2011

31.03.2012

 

(Audited)

(Unaudited)

(Audited)

1

Income Other Operation

 

 

 

 

(a) Gross Sales/Income from Operations

8327.300

5020.100

23469.400

 

(b)Less: Excise Duty

398.900

196.000

1086.000

 

(c) Net Sales Income from Operation (1a-1b)

7928.400

4824.100

22383.400

 

(b)Other Operating Income

92.500

186.500

527.000

 

Total income from operations (net)

8020.900

5010.600

22910.400

2

Expenditure

 

 

 

 

(a)

Increase/(Decrease) in Stock-in-trade and work in progress

0.000

0.000

0.000

 

(b)

Consumption of raw materials

6083.100

5002.600

18750.700

 

©

Purchase of traded Goods

0.000

0.000

0.000

 

(d)

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

(1180.000)

(2250.700)

(5495.500)

 

(e)

Employees Cost

192.200

152.400

717.500

 

(f )

Depreciation

301.000

277.600

1141.300

 

(g)

Other Expenditure

1678.000

1325.300

5140.400

 

 

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

7074.300

4507.200

20254.400

3

 

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

946.600

503.400

2656.000

 

4

 

Other Income

0.000

0.000

0.000

5

 

profit before interest and exceptional items(3+4)

946.600

503.400

2656.000

6

Interest

701.700

408.300

1959.4000

7

Profit after interest but before exceptional items(5-6)

244.900

95.100

696.600

8

Exceptional Items

0.000

0.000

0.000

9

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

244.900

95.1000

696.6000

 

10

Tax Expenses

19.500

28.500

155.000

11

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

225.400

66.600

541.600

 

12

Extra Ordinary Items

0.000

0.000

0.000

13

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

225.400

66.600

541.600

14

Paid-up Equity Share Capital Rs.10/ per share

533.300

53.300

53.300

15

Reserves excluding revaluation reserves

0.000

0.000

0.000

16

Earning Per Share

 

 

 

(a)

Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)

4.21

1.25

10.13

 

 

(b)

 Basic and diluted EPS after Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)

4.21

1.25

10.13

 

 

17

Public Shareholding

 

 

 

 

Number of Shares

32478201

32478201

32478201

 

Percentage of Shareholding

60.75%

60.75%

60.75%

18

Promoters and Promoter group

 

 

 

 

a) Pledged/Encumbered

 

 

 

 

Number of shares

20982910

20982910

20982910

 

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

100%

100%

100%

 

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

39.25%

39.25%

39.25%

 

Investor Complaints

For the quarter ended 31st March, 2012

Pending at the beginning of the quarter

0

Received during the quarter

36

Disposal of during the quarter

36

Remaining unresolved at the end of the quarter

0

 

Note:

 

1.       The above financial results for the quarterly ended March 31,2012 were reviewed by the Audit Committee at the meeting held today i.e.. 29th May. 2012 and approved by Board of Director and taken on record at the meeting also held today. 10.13

 

2.       The Company's main business is to manufacture steel pipes. Accordingly, the company does not have more than one segment eligible for reporting in terms of relevant Accounting standard issued by the Institute of Chartered Accountants of India. 10.13

 

3.       The Company has a few subsidiaries as at 31st March. 2012. Hence, with a view to apprise the Company's members and investing community and in compliance of Clause 41 (1) (e) (ii) of the Listing Agreement, the table above includes Standing Financial Results as we well as Consolidated Furancia1 Result for the Financial Year 201 1-2012.

 

4.       An Intern Dividend of Rs.2/- per Equity Share for the Financial Year 201 1-2012 was declared by the Dividend Declaration Committee at its meeting held on 12th April, 2012, The said dividend w s paid to a l the eligible  members /beneficiaries on 27th April, 2012. Additionally, the Board of the company has today recommended a final dividend of Rs. 2/- per share, subject to the member’s approval in the ensuing Annual General Meeting

 

5.       The summarised data fur standalone as ml as Consolidated Assets and Liabilities as required vide Clause 41 (1) (eaa) of the Listing Agreement for the year ended on 31st M a h , 2012 as follows:-

 

 

STATEMENT OF ASSETS AND LIABILITIES

 

 

PARTICULAR

31.03.2012

I

Equity and Liabilities

 

 

1) Shareholders Funds

 

 

a) Share Capital

533.300

 

b) Reserves and Surplus

8609.000

 

c) Money received against share warrants

0.000

 

Total

9142.300

 

 

 

 

2) Non – Current Liabilities

 

 

a) Long term Borrowing

2663.000

 

b) Deferred tax liabilities (Net)

74.500

 

c) Other Long term liabilities

0.000

 

d) Long – term Provision

0.000

 

Total

2737.500

 

 

 

 

3) Current Liabilities

 

 

a) Short term borrowing

23026.200

 

b) Trade payable

11368.400

 

c) Other current liabilities

5326.300

 

d) Short term provision

479.600

 

Total

40200.500

 

 

 

 

Total

52080.300

II

Assets

 

 

1) Non – Current Assets

 

 

a) Fixed assets

 

 

         i.            Tangible assets

9370.400

 

       ii.            Intangible assets

0.200

 

      iii.            Capital works in progress

2973.600

 

      iv.            Intangible under developments

0.000

 

b) Non – current Investment

2308.100

 

c)Deferred tax assets (Net)

0.000

 

d) Long term loans and advance

375.500

 

e) Other non current assets

0.000

 

Total

15027.800

 

 

 

 

2) Current Assets

 

 

a) Current Investment

10.000

 

b) Inventories

23723.600

 

c) Trade receivables

7045.500

 

d) Cash and cash equivalents

2087.700

 

e) Short term loans and advance

4185.700

 

f) Other current assets

0.000

 

Total

37052.500

 

 

 

 

Total

52080.300

 

1.       The figures for the quarter ended 31st March 2012 are the balancing figures between Audited figures in respect of full financial year and published year to date figures upto the third quarter of the current financial year. Previous year figure have been regrouped reworked/rearranged/restated wherever necessary.

 

2.       The above results have also been submitted to the Bombay and National Stock exchange where the company's securities are listed and the same have been posted

 

3.       The company has five subsidiaries as at 31st March 2012. In case of PSL USA Inc., unaudited financial results for the financial year ended 31st March 2012 have been considered for Consolidation. In case of other subsidiaries Audited Financial Results have been considered.

 

4.       The company has excercised the option as per Ministry of Corporate Affairs Notification dated 31st March 2009 in respect of AS 11. In veiw of extention of applicability of the said notification vide GSR 378 (E) dated 11th May 2011, for the year Rs. 325.000 Millions being eligible exchange difference loss has been adjusted in the cost of the assets.

 

5.       The Company has outstanding derivative contracts undertaken from time to time to hedge its business related exposures in foreign currency. Gains/Loss on such contracts are recongnised as and when these are matured/cancelled during the year.

 

 

FIXED ASSETS

 

  • Free Hold Land
  • Lease Hold Land
  • Office Building
  • Factory Building
  • Furniture and Fixture
  • Plant and Machinery
  • Office Equipment
  • Lab Equipment
  • Computer
  • Motor Car
  • Commercial Vehicles
  • Cycle   
  • Earth Moving Equipments
  • Shed Construction

 

WEBSITE DETAILS

 

corporate overview

With a production capacity in excess of the 1 million ton mark, we are India’s producer/manufacturer of HSAW pipes - the line-pipe industry's preferred pipe. But our leadership in the pipe industry is not confined to the domestic market alone, though the market is huge and still growing - global recognition is reflected in the huge orders already in hand from the US even before the commissioning of Their 300,000 MT capacity plant in Missisipi not to mention the USD 45 million order of our pipe mills in Sharjah in the UAE.

These facilities are backed by sound technology, state-of-the-art infrastructure, technical collaborations with leading Design and Engineering consultancies of Germany and Italy and most importantly, by a human resources pool that is amongst the best in the industry - ensuring that your project is completed on target, time after time.

BUSINESS DESCRIPTION

 

Subject is an India-based company engaged in pipe manufacturing. The Company is engaged in the business of production of steel products. This Company is presently focuses on providing anti-corrosive treatment on steel bars. It is a producer/manufacturer of helically submerged arc welded (HSAW) pipes. It manufactures and supplies spiral weld pipes conforming to American Petroleum Institute (API) standards for oil, gas and water transmission, as well as structural and piling applications for both onshore and offshore sector. The Company’s products include other tubes, pipes and hollow profiles in spiral or straight welded seam of dia 300 millimeters and above and made out of iron steel of all type, external and internal coatings of line pipes, and anti-corrosion coatings of re-enforced rebears. The Company’s subsidiaries include PSL Corrosion Control Services Limited, Pipeline Systems Limited, PSL USA INC, PSL FZE, UAE, PSL North America LLC, USA. For the nine months ended 31 December 2010, Subject's revenues totaled RS24.42B. Net income totaled RS504.7M. Results can not be compared since the Company has reported the consolidated financials only for the current period. Subject is engaged in pipe manufacturing. Subject manufactures and supplies spiral weld pipes conforming to American Petroleum Institute standards for oil, gas and water transmission.

 

BOARD OF DIRECTORS

 

Mr. Prakash Vinayak Apte

Independent Non-Executive Director

Mr. Prakash Vinayak Apte serves as Independent Non-Executive Director of Subject. He completed his Chartered Accountancy Programme from England in November 1968 worked with many 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 his 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 a unanimous Resolution in their meeting held on 25th September, 2003. Since then Mr. Apte has been rendering service to the Company by way of being not only on Subject ’s Board, but even on few important Committees of Board such as Audit Committee and Remuneration Committee.

 

Mr. G. Gehani

Compliance Officer, Company Secretary, Whole-time Director

Mr. G. Gehani serves as Compliance Officer, Company Secretary, Whole-time Director of Subject. He is a Fellow Member of Institute of Company Secretary of India (ICSI) has to his credit 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 in various Senior positions in Public and Private Sector Companies such as Pawan Hans, CCIC, Taj Group of Hotels etc. Hence out of a total of 28 years post qualification experience, Mr. Gehani has been heading the Legal and Secretarial Department of Subject for more than 16 years now. He had effectively contributed in 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. Mr. Gehani has been associated with various Professional and Social Organizations of the country for last 20 years and has held Senior responsible position in some of them.

 

Mr. C. K. Goel

Whole-time Director

Mr. C. K. Goel serves as Whole-time Director of Subject. He has a Post 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 28 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, Mr. Goel has handled and headed various Projects and Operations in Company’s different Plants.

 

Mr. M. M. Mathur

Whole-time Director

Mr. M. M. Mathur serves as Whole-time Director of Subject. Mr. Mathur after completing his Graduation in Science obtained a Masters Degree in English in addition to a Diploma in Management. Shri M.M. Mathur's association with the Group now stretches to about four decades during which he has held various Senior positions. Most of Shri 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. Shri 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 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.

 

Mr. Harsh Pateria

Independent Non-Executive Director

Mr. Harsh Pateria serves as Independent Non-Executive Director of Subject. He completed his academic attainments and promoted as company under the name and style of Pri mo Pick N. Pack Limited, which was incorporated in 1985. Additionally he started getting involved in few other business activities. Since then he has ably managed the various business ventures and has acquired adequate exposure in company’s management involving different activities associated with scheduling, planning, organizing and implementing the policies of the organizations in optimal manner.

 

Ashok Punj

Managing Director, Executive Director

Mr. Ashok Punj is a Managing Director, Executive Director of Subject. Mr. Ashok Punj completed his Bachelors in Electrical Engineering and Masters in System Engineering from Illinois Institute of Technology, Chicago, USA, before taking charge of high responsibility of “Managing Director” of the Company. Shri Punj was actively involved in the business of Industrial Insulation concentrating on the Manufacturing Segment of the business where he assisted in the setting up of several Industrial Units in collaboration with few well known international organisations. His technical and managerial experience spreading to 35 years has resulted into sizable growth and success of the Company under his able guidance.

 

Mr. Alok Punj

Non-Executive Director

Mr. Alok Punj serves as Non-Executive Director of Subject. He 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.

 

G. S. Sauhta

Director

 

D. N. Sehgal

Whole-time Director

Mr. D. N. Sehgal serves as Whole-time Director of Subject. He is a qualified Production Engineer having completed his Post Graduation Programme in Industrial Management and Engineering with distinction. Mr. Sehgal has spent three decades in core sector of Indian Economy—eg. Marketing and Project Management of value complex industrial projects in Refinery, Petrochemical, Metallurgical and other onshore and offshore pipeline projects. Prior to joining PSL 15 years ago he has held important portfolios in senior capacities in Dodsal Private Limited, BST Engineering Services Limited, Dynacraft Machine Limited 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.

 

Mr. Paresh J. Shah

Independent Non-Executive Director

Mr. Paresh J. Shah serves as Independent Non-Executive Director of Subject. He is an eminent Lawyer. He is Partner of a reputed legal firm namely Sah and Sanghvi and has variety of experience on various aspect of corporate legal matters. He is practicing in High Court of Bombay for last 25 years

 

Mr. N. C. Sharma

Independent Non-Executive Director

Mr. N. C. Sharma serves as Independent Non-Executive Director of Subject. He is an eminent Insurance Expert having 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 Shri 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, Shri Sharma has been rendering 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.

 

Mr. Ashok Sharma

Independent Non-Executive Director

Mr. Ashok Sharma serves as Independent Non-Executive Director of Subject. He completed his graduation from Indian Institute of Technology - Madras, India worked in key senior positions in multinational companies, rising to Senior Regional Management positions in the internationally known companies such as IBM and Microsoft. Shri Ashok Sharma has an 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 Organizations - he offers practical advice for implementing Best Practices - to help make corporate strategy work. Looking at the 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 Shri Sharma as a Director on the Board. Since his appointment, Shri Ashok Sharma has been rendering 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.

 

Harry Harinder Shourie

Independent Non-Executive Director

Mr. Harry Harinder Shourie serves as Independent Non-Executive Director of Subject. He 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, Greenfields telecom in Philippines and also in Nigeria. He has also handled a project for Union Bank of California. Having considered Mr. Shourie’s experience in diverse fields such as Finance and International Business, the Board of Directors appointed him as Additional Director on 15’s December, 2005 and since then Mr. Shourie is rendering useful advice in the Board deliberations.

 

PRESS RELAESE

 

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 LandT, 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.55.76

UK Pound

1

Rs.86.68

Euro

1

Rs.70.44

 

 

INFORMATION DETAILS

 

Report Prepared by :

KVT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

7

--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

 

56

 

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.