Engineering firm Punj Lloyd suffered a 227 crore loss after tax in the third quarter ended December 31, 2008, as compared to profit 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 PTI.
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 (SCL), a wholly-owned UK-based subsidiary of the company, commenced adjudication proceedings against SABIC Petrochemicals UK (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) (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.
