New Delhi, Jan 23: Engineering firm Punj Lloyd
suffered a 227 crore loss after tax in the third quarter ended
October-December of this fiscal year as compared to Rs 92
crore in the same period in 2007-08.
"We have suffered this after tax loss of Rs 227 crore
because one our acquired company in United Kingdom caught into
a litigation. During the nine months of this fiscal we have
recorded a after tax profit of Rs 29 crore," Punj Lloyd Group
Chairman Atul Punj told reporters.
We will be in profit by the end of this fiscal and we
expect to bag new orders to the tune of Rs 2,000-3,000 crore
during the fourth quarter of this financial year, he added.
Simon Carves Limited ("SCL"), a wholly-owned UK-based
subsidiary of the company, commenced adjudication proceedings
against SABIC Petrochemicals UK Limited ("SABIC").
These proceedings are aimed at seeking a compensation of
28.5 million pounds. According to SCL, the compensation is in
respect of an advance payment bond and a performance bond
called by SABIC following the wrongful termination of the
contract between SABIC and SCL by SABIC.
Prior to the acquisition of SCL by Punj Lloyd Group in
May 2006, SCL had contracted with Huntsman Petrochemicals (UK)
Limited (subsequently acquired by SABIC) in early 2006 to
design, build and pre-commission a 400 kte per annum low
density polyethylene plant ("LDPE") at Wilton, Teeside in the
UK.
SABIC recently terminated the contract on the basis that
SCL failed to undertake completion of the contractual works
with due diligence. SABIC called off the performance and
advance payment bank guarantees issued by SCL amounting to
28.5 million pound.
Bureau Report
