PSP Projects Limited has issued a postal ballot notice to shareholders seeking approval for the appointment of new Joint Statutory Auditors. The notice addresses a casual vacancy created by the resignation of the existing auditors.

Auditor Change Details

The company's existing Joint Statutory Auditors, M/s. Prakash B. Sheth & Co., Chartered Accountants, Ahmedabad (Firm Registration No. 108069W), submitted their resignation. The auditors cited their evaluation of resources and infrastructure constraints, considering the company's future projects and expected growth trajectory that would significantly increase operational volume.

New Auditor Profile

M/s. G.K. Choksi & Co. is an established Chartered Accountancy firm founded in the early 1990s, with a workforce of over 200 personnel and a team of 8 partners supported by 72 qualified professionals. The firm serves a diversified clientele including leading corporates, financial institutions, and multinational groups across multiple sectors including Pharmaceuticals, Infrastructure, FMCG, Financial Services, Real Estate, Information Technology, and NBFCs.

E-Voting Process

The postal ballot will be conducted exclusively through remote e-voting, with no physical ballot forms being dispatched to members. The company has engaged National Securities Depository Limited (NSDL) to facilitate the e-voting process.

Scrutinizer Appointment

The Board of Directors has appointed Mr. Chirag Shah, Practicing Company Secretary (Membership No. FCS: 5545, CP No: 3498), and failing him, Mr. Raimeen Maradiya (Membership No.: FCS: 11283, CP No.: 17554), Partners of M/s. Chirag Shah & Associates, as Scrutinizers for conducting the postal ballot process.

Fee Structure and Rationale

The proposed fee for M/s. G.K. Choksi & Co. is ₹15.00 lakhs for the remaining period of quarters III and IV of Financial Year 2025-26, representing an increase from the ₹8.25 lakhs paid to the outgoing auditors for the corresponding period in FY 2024-25. The company attributes this increase to anticipated significant growth in operations and revenue, which will expand the audit scope and require more extensive procedures.

PSP Projects , a prominent player in the construction sector, has clinched a significant contract that could potentially reshape its business trajectory. The company has been awarded a project to construct over 100 rest houses, with the contract value reaching up to Rs 5000 crore.

Contract Details

• Project Scope: Construction of more than 100 rest houses
• Contract Value: Up to Rs 5000 crore
• Current Market Capitalization: Rs 3600 crore

Significance of the Contract

This newly secured contract is particularly noteworthy for PSP Projects, as its potential value substantially exceeds the company's current market capitalization. Here's a comparison to illustrate the scale:

The contract value surpasses the company's market capitalization by approximately Rs 1400 crore, highlighting the magnitude of this business opportunity for PSP Projects.

Potential Impact

The securing of this massive contract signals several potential outcomes for PSP Projects:

1. Business Growth: The sheer size of the contract indicates a significant expansion in the company's project pipeline, potentially leading to substantial revenue growth in the coming years.

2. Market Position: Successfully executing a project of this scale could enhance PSP Projects' standing in the construction industry, potentially opening doors to more high-value contracts in the future.

3. Financial Implications: While detailed financial projections would require more data, it's clear that this contract has the potential to significantly impact the company's future revenue streams and profitability.

4. Operational Challenges: Managing a project of this magnitude may present logistical and operational challenges for PSP Projects, requiring efficient resource allocation and project management.

It's important to note that while the contract value is stated as "up to Rs 5000 crore," the actual realization may vary based on project execution and other factors. Investors and market watchers will likely keep a close eye on PSP Projects' execution of this significant undertaking in the coming months.

As always, stakeholders are advised to conduct their own research and consider various factors before making any investment decisions based on this development.