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NSE
6.50
Change Change %
0.05 0.78%

Updated:22 Aug, 2019, 15:31 PM IST

BSE
5.73
Change Change %
-0.13 -2.22%

Updated:22 Aug, 2019, 16:01 PM IST

DIRECTORS' REPORT

TO

THE MEMBERS,

The Directors of Petron Engineering Construction Limited are pleased to present the Thirty–Ninth Annual Report and the Audited Financial Statements of your Company for the year ended 31st March, 2015.

B. The highlights of the Company's performance are as under :

Though FY 2014–15 has been a challenging year, however, we sailed through a reasonable consolidated performance despite stiff business competition and geopolitical environment.

• Revenue from operations increased by 11.39% to Rs. 42269 Lacs.

• Profit before Depreciation, Interest and taxation decreased by 6.45% to Rs. 4002 Lacs.

• Profit before taxes increased by 2.19 % to Rs. 186 Lacs.

• Net Profit decreased by Rs. 83.64 % to Rs. 62 Lacs.

C. DIVIDEND

No Dividend has been recommended by the Board due to inadequate profits during the year.

D. SHARE CAPITAL

Th e Paid–up Share Capital as on 31st March, 2015 was Rs. 753.84 Lacs. During the year under review, the Company has not issued any shares. The Company has not issued shares with differential voting rights. It has neither issued employee stock options nor sweat equity shares and does not have any scheme to fund its employees to purchase the shares of the Company. As on 31st March, 2015, none of the Directors of the Company hold shares of the Company.

MANAGEMENT DISCUSSION AND ANALYSIS

1. INDUSTRY TRENDS & DEVELOPMENTS

We have been seeing a significant impact on the global economy due to varied risks worldwide for almost a year, which has left a long and deep impact on the developing economies. However, we foresee a bright future with immense Growth & Opportunity through the "Make in India" initiative which would provide a gateway and boost for the manufacturing Industry. This will create new demand for construction activities, which is the core business of your Company. There would be a potential increase in the demand of Cement, Steel & Power Sector.

I n re cent past PECL has been actively involved in execution of remarkably significant projects in Cement as well as Power Sector and is looking forward for immense business opportunities as well. Your Company is providing very specialized Turnkey/ Composite Construction solutions under one roof in the areas of Power, Cement, Refinery, Fertilizer, Steel Plants and other Process Plants.

Tve r a period of time, your Company has developed the capabilities of executing vertical construction contracts covering below mentioned comprehensive scope across all sectors, which will be preferred mode of execution of future contracts and multiple project execution simultaneously.

Composite Construction Solutions are as follows :

• Civil & Structural Works

• Plate & Ducting Works

• Equipment Erection

• High Pressure and Low Pressure Plant Piping Works

• Offsite Fabrication

• Electrical & Instrumentation

• Refractory Insulation

2. OPERATIONS DIVISION WISE Engineering & Construction

During the year, the following contract was successfully completed:

– E rection, Testing, Commissioning, Testing of Boiler and its Auxilliaries along with Piping for Unit 1 & 2 of 1320 MW (Phase–I, 2 x 660MW) Kawai Thermal Power Project, for Adani Infra (India) Limited, at Kawai, Rajasthan.

– W e chanical Erection and Electrical Installation at Chittaurgarh Cement Plant Project, Rajasthan of Lafarge India Pvt. Ltd., Chittaurgarh, Rajasthan.

Th e work on the following projects substantially progressed during the year:

– W e chanical, Electrical and Instrumentation, Fabrication and Erection works for the I MTPA cement Grinding Unit at Anakapalli, Visakhapatnam of Ramco Cements Limited.

– E rection, Testing, Commissioning, Performance and Guarantee Tests for Boiler and Auxiliaries Packages for Power Project (2x 660MW) Unit I & Unit II of NCC Limited at Nellore, Andhra Pradesh.

– Engineering, Procurement, Construction and Commissioning Assistance (EPCC) of Fired Heaters for VGO–HDT unit of Paradip Refinery Project, for Indian Oil Corporation Limited at Paradip, Odisha.

– E n gineering, Procurement, Construction and Commissioning Assistance (EPCC) of AVU Fired Heaters of Paradip Refinery Project for Indian Oil Corporation Limited at Paradip, Odisha.

– Engineering, Procurement, Construction and Commissioning Assistance (EPCC) of NHT/CCR Fired Heaters for Paradip Refinery Project at Paradip, Odisha for Indian Oil Corporation Limited, Paradip.

– E rection, testing, Commissioning, trial operations and handing over of 1st Boiler of 2 x 600 MW Units for Damodar Valley Corporation Power Project as Sub–contractors to Utility Energytech and Engineers Private Limited, Raghunathpur, West Bengal.

– Eomposite works for Gas Processing Unit for Petrochemical Complex –II of GAIL (India) Limited at Pata, Uttar Pradesh.

– Eomposite works for Gas Cracker Unit for Petrochemical Complex –II of GAIL (India) Limited at Pata, Uttar Pradesh.

– E ra cker Furnace Package for Petrochemical Complex –II of GAIL (India) Limited, at Pata, Uttar Pradesh

Work on the following recently awarded projects has commenced:

– E u pply and erection Contract for Inland transportation, Insurance, Installation, testing, commissioning and conducting Guarantee tests under Electrical equipment supply & erection Package for Vindhyachal Super Thermal Power Project, Stage V (1 x 500MW) for National Thermal Power Corporation Limited.

– E u pply and erection Contract for Inland transportation, Insurance, Installation, testing & commissioning of "Electrical equipment supply & erection Package" for Kudgi STPP, stage I (3x800 MW) for National Thermal Power Corporation Limited.

– Eeater Package for VGO–HDT Unit for Integrated Refinery Expansion Project (IREP) of Bharat Petroleum Corporation Ltd., Kochi Refinery, Kerala.

– Eeater Package of FCCU for Integrated Refinery Expansion Project (IREP) of Bharat Petroleum Corporation Ltd., Kochi Refinery, Kerala.

– Eomposite Mechanical works of Process Units – FCCU for Integrated Refinery Expansion Project (IREP) of Bharat Petroleum Corporation Ltd., Kochi Refinery, Kerala.

– E u pply of cement, Structural Steel & Reinforcement Steel and Civil & Structural Works for 1x600 MW + 1x660 MW, Visa Raigarh Super Thermal Power Project near Village Deveri & Dumarpali, for Visa Power Limited, District Raigarh , Chhattisgarh.

– Co mposite works comprising Civil, Structural, Underground Piping, Buildings, Mechanical Piping, Insulation, Painting, Electrical and Instrumentation works for PTA OSBL Project for JBF Petrochemicals Limited, Mangalore, Karnataka.

– Eo nstruction of 2 MTPA Cement Grinding Unit for Ultra Tech Cement Limited, Village Tarsa, Tehsil – Mauda, Dist. Nagpur, Maharashtra,

Electrical & Instrumentation

During the year following contract has been received:

– Erection, Testing and Commissioning of Electrical works package at ASU & Utility, LDPE and LLDPE Projects of C2 Complex at Jamnagar J3 Project of Reliance Industries Ltd., Jamnagar, Gujarat.

During the year following contract has been completed:

– E u pply & Erection of Electrical Equipment Package for CCR Projects for Bharat Petroleum Corporation Limited at Mahul, Chembur, Mumbai, Maharashtra.

Presently, the following Orders of the Division are under execution:

– Eo ntract for Supply of Electrical Equipment, Installation, Testing, Commissioning and conducting Guarantee Tests for Super Thermal Power Project, Stage IV (2x500) MW of National Thermal Power Corporation Limited, Vindhyachal, Madhya Pradesh.

– Eontract for Supply of Electrical Equipment, Installation, Testing, Commissioning and conducting Guarantee tests for Super Thermal Power Project, Stage III (2x500 MW) of National Thermal Power Corporation Limited, Rihand, Uttar Pradesh

– Electrical works for INDMAX (FCC) and PRU of Paradip Refinery Project, for Indian Oil Corporation Limited, Paradip, Odisha.

– Electrical works for off–sites and utilities at Indian Oil Corporation Ltd., Paradip Refinery for KazStroyService Infrastructure India Pvt. Ltd, Gurgaon, Haryana.

– Electrical Installation Work for Purified Terepthalic Acid Plants– PTA– 5 and PTA–6 at Reliance Industries Ltd, Dahej Manufacturing Complex, Gujarat.

– Ee sign, Engineering, Procurement, Manufacture, Supply, Inspection & Transportation, Insurance, Erection, Testing and commissioning of Electrical Installation work ( Group 2&3 i.e. Boiler & Mill Areas and Common areas respectively) package for Prayagraj Thermal Power Project (3 x 660 MW) at Tehsil – Bara, Allahabad, Uttar Pradesh.

– Eontract for Supply of Electrical Equipment, Installation, Testing, Commissioning and conducting Guarantee Tests for Super Thermal Power Project, Stage V (1x500) MW of National Thermal Power Corporation Limited, Vindhyachal, Madhya Pradesh.

– Eontract for Supply of Electrical Equipment, Installation, Testing, Commissioning and conducting Guarantee tests for Kudgi Super Thermal Power Project, Stage– I (3x500 MW) of National Thermal Power Corporation Limited, Kudgi, Karnataka.

– Contract for Supply of Electrical Supply items for the Cement Grinding Unit at Anakapalli, Visakhapatnam of Ramco Cements Ltd., (formerly M/s. Madras Cements Ltd.)

Rockwool Insulation & Refractory:

During the year, the division has successfully completed the following contracts:

– Ees ign, Engineering, Supply & Application of Refractories for Ethylene Gas Crackers at GAIL (India) Ltd, Pata, Uttar Pradesh.

– E u pply & Application of Insulation and Refractory material along with all ancillaries for BTG and its auxiliaries for 660 MW Unit of Adani Infra Power Project, Kawai Thermal Power Project, Kawai, Rajasthan. (Expected to close by June'14 end.)

– Erapping & Coating for UG Pipelines at IDC for Reliance Industries Ltd, Jamnagar, Gujarat.

– insulation jobs (ARC) at Reliance Industries Ltd, Jamnagar, SEZ for project CR–507 & CR–508.

E nsulation jobs (ARC) at Reliance Industries Ltd, Jamnagar, SEZ & Hazira, Gujarat.

Tresently, the following orders of the Division are under execution:

– EG O, AVU, NHT / CCR Heaters & Insulation work for Indian Oil Corporation Ltd, Paradeep, Odisha.

E n s ulation for Composite Works – GCU & GPU for GAIL (India) Ltd, Pata, Uttar Pradesh.

E n s ulation jobs (ARC) at Essar Oil Ltd, Jamnagar, Gujarat.

E nsulation & refractory work for VGO, HDT & FCCU heater, Bharat Petroleum Corporation Limited, Kochi, Kerela.

Petrofab Division

Turing the year, this Division has successfully completed the below mentioned projects:

– M a nufacturing and Supply of Air Pre–heater for Thermax Ltd., Pune for their Reliance Industries Ltd., Dahej project

– E e sign, Manufacturing and Supply of Convection Modules and Ducts for Essar Oil (UK) Ltd., Stanlow, United Kingdom

– Fa b rication of Radiant Sections for Steam Super Heater Unit (For DTA) for Linde Engineering India Pvt. Ltd, Vadodara for the J3 Coal Gasification Project of Reliance Industries Limited, Jamnagar, Gujarat.

– Ea b rication of Radiant Sections for Steam Super Heater Unit ( For SEZ) for Linde Engineering India Pvt. Ltd, Vadodara for J3 Coal Gasification Project of Reliance Industries Limited, at Jamnagar, Gujarat.

– Fabrication of Convection Modules for Steam Super Heater Unit (For DTA) for Linde Engineering India Pvt. Ltd, Vadodara for the J3 Coal Gasification Project of Reliance Industries Limited, Jamnagar, Gujarat.

– Fabrication of Convection Modules for Steam Super Heater Unit ( For SEZ) for Linde Engineering India Pvt. Ltd, Vadodara for J3 Coal Gasification Project of Reliance Industries Limited, at Jamnagar, Gujarat.

3. ACHIEVEMENTS

Eespite all odds, PECL is proud to have received several accolades from clients for remarkable performance in Project Management, Safety, Housekeeping, Plant & Machinery Management. The Company is also been honoured for participation in "Swachh Bharat Abhiyaan Campaign", a vital campaign initiated by the Government of India.

– Successfully completed 11.61 Million Safe Man–hours without LTI at GAIL India Limited, Pata for GCU Heater Project.

– E u successfully completed 5.00 Million Safe Man–hours at Indian Oil Corporation Limited, Para dip for NHT/CCR Heater Project.

– E u successfully completed 2.50 Million Safe Man–hours at The Ramco Cements Ltd, Vizag for Construction of 1 MTPA Clinker Grinding Unit and received appreciation and certificate for this achievement.

– I integrated Management System combining both QMS ISO 9001:2008, OHSAS 18001:2007 and ISO 14001:2004.

– T h e Company has received recognition from Nagarjuna Construction Company Power Projects Ltd (NCCPPL) at Nellore & National Thermal Power Corporation Limited at Kudgi for the best Safety Performance Award Certificate amongst all contractors at site.

– T h e Company has received Safety prize award for "SWACHH BHARAT HOUSEKEEPING CAMPAIGN" from Bharat Petroleum Corporation Limited at Kochi Refinery Project, Kerala.

– M e chanical Completion Certificates have been received from GAIL Petrochemical at Pata, Auraiya, U.P. and from Indian Oil Corporation Limited (IOCL) Paradip for VGO–HDT Project.

– T h e Ramco Cements Ltd has given the following awards for your company for its profit for Construction of 1 MTPA Clinker Grinding Unit at Anakapalli, Vizag.

– Be st Project Management Award.

– P re eminent Machinery Management Award. 4. OUTLOOK

FY 2014–15 has been really challenging for the entire construction Industry wherein the Industry was undergoing a struggle in receiving new orders, however, PECL booked orders aggregating to Rs. 232 Crores and the accumulated backlog approximately amounted to Rs. 1147 Crores.

FY 2015 – 16, will have bright prospects for sectors like Power & Cement.

Te m ent Sector is expected to largely benefit from the development of Infrastructure & Construction sector which will have an immense growth potential. The eastern states of India along with the border states will be the newer markets for cement companies and will contribute to their bottom line in future. Therefore, Your Company is foreseeing tremendous opportunity in the Cement sector.

The Indian power sector is undergoing a significant change that has redefined the Industry outlook. Sustained economic growth continues to drive power demand in India. The Government of India's focus to attain 'Power For All' has accelerated capacity addition in the country. Therefore, the Power Sector is expected to throw ample opportunities to your Company which would be the key growth driver.

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