Isgec Heavy Engineering Ltd amends JV agreement with Hitachi Zosen Corporation

The company has announced that the Joint Venture Agreement executed on March 15, 2012 between Isgec Heavy Engineering Limited and Hitachi Zosen Corporation, Japan has been amended with effect from December 14, 2021.

ISGEC and HITZ, pursuant to the Joint Venture Agreement have formed and incorporated a joint venture company namely Isgec Hitachi Zosen Limited on March 21, 2012 to design, manufacture, repair, trade, export, import, undertake research and develop or otherwise deal in all type of plant and machinery including Pressure Vessels, Heat Exchangers, Reactors excluding Nuclear Reactors, Columns, Boilers, Condensers, Evaporators & other allied equipments, Spares, Components and Accessories for all industries including Process Industries and Power Plant Conventional/Solar/Wind, but excluding Nuclear Energy generating machinery.

The Amendment of Joint Venture Agreement will enable the Joint Venture Company (JVC) for direct booking of orders in case both ISGEC and HITZ agree in addition to orders from government undertakings. Earlier, Sale Orders for products manufactured by JVC can only be awarded by ISGEC or HITZ except in case of public sector undertakings in India where the JVC may directly be awarded the Sale Orders.

In view of the above amendment, in case JVC is awarded order directly, ISGEC or HITZ shall claim the Retains directly from JVC or deduct the Retains from the value of the orders. Earlier, on award of orders to ISGEC and HITZ, as the case may be, ISGEC or HITZ will place the order on JVC after reducing the Retains payable to ISGEC or HITZ.

In addition to sales commission, such other amount, as may be agreed between ISGEC, HITZ and JVC, will be payable. Earlier, in case of award of orders to JVC, sales commission @2% of FOB Price or FAS Price or Ex-Works Price (as the case may be) shall be paid by JVC only to ISGEC.

Shares of ISGEC Heavy Engineering Ltd was last trading in BSE at Rs. 593.95 as compared to the previous close of Rs. 593.35. The total number of shares traded during the day was 7232 in over 626 trades.

The stock hit an intraday high of Rs. 598.40 and intraday low of 590.85. The net turnover during the day was Rs. 4299760.00.

Source : Equity Bulls

Keywords

ISGECHeavyEngineering INE858B01029 JVAgreement Amendment HitachiZosenCorporation