MIRA INFORM REPORT
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Report Date : |
12TH May, 2006 |
IDENTIFICATION DETAILS
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Name : |
MANGALORE
REFINERY AND PETROCHEMICALS LIMITED |
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Registered Office : |
Mudapadav,
Kuthethoor P. O., Via Katipalla, Mangalore - 574 149, Karnataka, India |
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Country : |
India
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
7th
March, 1988 |
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Com. Reg. No.: |
08-8959 |
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CIN. No.: |
L23209KA1988PLC008959 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
MUMM20241E/BLRM00218B |
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PAN No.: (Permanent Account No.) |
AAACM5132A |
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Legal Form : |
A public limited liability
company. The company’s shares are
listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers of Refinery
and Petrochemicals Products. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 86500000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established company having moderate track. Trade relations are fair.
Profit margin is under severe pressure. Payments are usually correct and as
per commitments. The company can be
considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Mudapadav,
Kuthethoor P. O., Via Katipalla, Mangalore - 574 149, Karnataka, India |
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Tel. No.: |
91-824-2710400 |
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Fax No.: |
91-824-2710054/2710028 |
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E-Mail : |
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Website : |
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Administrativa Office: |
No.
7, Magadi Road, Bangalore – 560023, Karnataka |
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Corporate Office : |
Arcadia,
7th Floor, 195, NCPA Marg, Nariman Point, Mumbai - 400 021,
Maharashtra |
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Tel. No.: |
91-22-22822522
/ 523 |
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Fax No.: |
91-22-22029772 |
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E-Mail : |
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Factory 1 : |
Mudapadav,
Kuthethoor P. O., Via Katipalla, Mangalore - 574 149, Karnataka |
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Investor
Relation Cell |
Maker
Towers", F Wing 91-22-22173000 |
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Liaison
office: |
No.72/4,Cunningham
road, Phone: 91-80-22370524 |
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Delhi Office: |
LGF, Mercantile House, Phone : 91-11-23350895 |
DIRECTORS
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Name : |
Mr. Subir Raha |
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Designation : |
Chairman |
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Name : |
Mr. R. S. Sharma |
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Designation : |
Director |
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Name : |
Mr. A. K. Balyan |
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Designation : |
Director |
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Name : |
Mr. N. K. Mitra |
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Designation : |
Director |
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Name : |
Mr. A. Balakrishnan |
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Designation : |
Director |
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Name : |
Mr. M. P. Modi |
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Designation : |
Director (Nominee of ICICI
Bank Limited) |
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Name : |
Mr. G. M. Ramamurthy |
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Designation : |
Director (Nominee of IDBI
Bank) |
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Name : |
Mr. Girish Dave |
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Designation : |
Director |
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Name : |
Mr.
R Rajamani |
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Designation : |
Managing
Director |
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Name : |
Shri Sunjoy Joshi |
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Designation : |
Director
(Government Director) |
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Name : |
Shri Prabh Das |
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Designation : |
Director (Government Director) |
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Name : |
Shri S.Roy Choudhury |
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Designation : |
Director (HPCL Nominee) |
KEY EXECUTIVES
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Name : |
Mr. L. K. Gupta |
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Designation : |
Vice President (Finance)
and Company Secretary |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Oil and Natural Gas
Corporation Limited |
1255354097 |
71.62 |
|
Hindustan Petroleum Corporation Limited |
297153518 |
16.95 |
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Resident
Individuals |
168662871 |
9.62 |
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Non Resident Individuals |
13161611 |
0.75 |
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Domestic Companies |
13527263 |
0.77 |
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Non Domestic Companies |
293450 |
0.02 |
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GIC and Subsidiaries |
2003820 |
0.11 |
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Banks and Financial Institutions |
1971444 |
0.11 |
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Mutual Funds |
774253 |
0.05 |
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Total |
1752902327 |
100.00 |
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Shareholding
Pattern as on 31.03.2006 ONGC Total |
Percentage (%) 71.62 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Refinery
and Petrochemicals Products. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Petroleum Products |
MT |
Delicensed |
9690000 |
9351725 |
GENERAL INFORMATION
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No. of Employees : |
700 |
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Bankers : |
v
State Bank of India,
Mangalore, Karnataka v
Canara Bank,
Mangalore, Karnataka v
Punjab National Bank,
Mangalore, Karnataka v
Bank of Baroda,
Mangalore, Karnataka v
Corporation Bank,
Mangalore, Karnataka v
United Bank of India,
Mangalore, Karnataka v
Citibank N. A. ,
Mangalore, Karnataka |
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Facilities : |
-- |
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Banking Relations : |
Moderate |
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Auditors : |
Varma and Varma Chartered
Accountants |
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Associates/Subsidiaries
: |
v
Hindustan Petroleum
Corporation Limited v
Grasim Industries
Limited v
Indo Gulf Corporation
Limited v
Indian Rayon and
Industries Limited (IRIL) v
Hindalco Industries
Limited (Hindalco) v
Indo Gulf Fertilisers
and Chemicals Corporation Limited (Indo Gulf) |
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Parent Company |
Oil and Natural Gas
Corporation Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1900000000 |
Equity Shares |
Rs. 10/- each |
Rs. 19000.000 millions |
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100000000 |
Non Cumulative Redeemable Preference Shares
|
Rs. 10/- each |
Rs. 1000.000 millions |
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Total
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Rs. 20000.000 millions |
Issued, Subscribed
& Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1761800000 |
Equity Shares |
Rs. 10/- each |
Rs. 17618.000 Millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
17618.000 |
17618.000 |
17596.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
4018.300 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
(2780.900) |
(7375.000) |
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NETWORTH
|
21636.300 |
14837.100 |
10221.000 |
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LOAN FUNDS |
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1] Secured Loans |
8934.400 |
17820.900 |
44310.400 |
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2] Unsecured Loans |
25731.000 |
30622.100 |
9244.300 |
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TOTAL
BORROWING
|
34665.400 |
48443.000 |
53554.700 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL
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56301.700 |
63280.100 |
63775.700 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
44048.400 |
47636.100 |
51680.200 |
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Capital work-in-progress
|
779.800 |
32.000 |
8.600 |
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INVESTMENT
|
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
|
19116.200
|
11893.500 |
9971.100 |
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Sundry Debtors
|
9608.000
|
8093.300 |
3325.200 |
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Cash & Bank Balances
|
91.600
|
273.300 |
98.800 |
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Other Current Assets
|
0.000
|
0.000 |
0.000 |
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Loans & Advances
|
17884.300
|
20444.000 |
18100.200 |
Total Current Assets
|
46700.100
|
40704.100 |
31495.300 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
32713.100
|
25616.700 |
20254.600 |
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Provisions
|
2818.800
|
85.900 |
75.400 |
Total Current Liabilities
|
35531.900
|
25702.600 |
20330.000 |
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Net Current
Assets
|
11168.200
|
15001.500 |
11165.300 |
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MISCELLANEOUS EXPENSES
|
305.300 |
610.500 |
921.600 |
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TOTAL
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56301.700 |
63280.100 |
63775.700 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
210733.300 |
134175.600 |
87265.900 |
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Profit/(Loss) Before Tax
|
14608.300 |
5744.800 |
(6527.900) |
Provision for Taxation
|
5810.700 |
1150.600 |
(2409.800) |
Profit/(Loss) After Tax
|
8797.600 |
4594.200 |
(4118.100) |
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Export Value
|
61913.000 |
44774.510 |
19129.550 |
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Import Value
|
NA |
76270.800 |
69030.427 |
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Total Expenditure
|
218325.200 |
133185.400 |
77265.500 |
QUARTERLY
|
PARTICULARS |
30.06.2005 [1ST Quarter] |
30.09.2005 [2nd Quarter] |
31.12.2005 [3rd Quarter] |
|
Sales Turnover |
55496.100 |
61405.400 |
68457.000 |
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Other Income |
393.700 |
78.300 |
129.900 |
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Total Income |
55889.800 |
61483.700 |
68586.900 |
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Total Expenditure |
50958.600 |
57420.000 |
66862.700 |
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Operating Profit |
4931.200 |
4063.700 |
1724.200 |
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Interest |
483.600 |
444.500 |
505.900 |
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Gross Profit |
4447.600 |
3619.200 |
1218.300 |
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Depreciation |
931.400 |
863.000 |
861.500 |
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Tax |
187.500 |
143.900 |
47.800 |
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Reported PAT |
2157.600 |
1659.800 |
193.700 |
200509 Quarter 2 - The above results have
been reviewed by the audit committee and approved by the Board of Directors at
its meetings held on 25th October, 2005. 2. The Monthly Refinery Transfer
Prices (RTPs) of LPG (Domestic) and SKO (PDS) were not revised by Oil marketing
companies (OMCs) effective April 2005 and were accounted for at frozen RTPs of
March 2005. The RTPs have since been provisionally revised by OMCs effective 1
stApril, 2005 and OMC's have asked for discount in RTP's. The Company has not
yet accepted the discount advised by OMC's. However pending settlement of the
issues, the sales have been accounted based on these revised prices net of
discount of Rs. 7,04.400 Millions and Rs.13,729.100 Millions for the three
months and six months ended 30th September 2005 respectively. Sales for the
three months ended 30th September, 2005 includes Rs. 3,94.300 Millions
relating.to the three months ended 30th June, 2005. 3. a) Other incomeforthe
year ended 31 st March, 2005 includes exchange fluctuation gain of Rs.
631.8.000 Millions and incremental export benefit of Rs.13,66.705 Millions )
Other income for the six months ended 30th September, 2005 includes excess
provision for doubtful debts written back of Rs. 2,11.998 Millions 4. Other expenditure includes net exchange
fluctuation loss of Rs. 3,46.262 Millions Rs. 1,07.093 Millions , Rs. 2,78.270
Millions and Rs.10,75.156 Millions for the three months ended 30th September
2005, three months ended 30th September 2004, six months ended 30.09.2005 and
six months ended 30.09.2004 respectively. 5. The Company is engaged in refining
crude oil and all activities of the Company revolve around this business in
single segment. As such there is no other reportable segment as Mined by the
Accounting Standard 17 on 'Segment Reporting' issued bythe Institute of
Chartered Accountants of India. 6. Figures forthe previous year/period are
regrouped/ rearranged wherever considered necessary. 7. Fgures forthethree
months ended 30th September2005 have been subjected to 'Limited Review' bythe
Statutory auditors as perthe listing agreement. 8. the number of investor
complaints pending at the beginning of the quarter ended 30th September 2005
was 20. During the quarter 743 complaints were received and 745 complaints were
resolved. The balance 18 complaints pending atthe end of the quarter have since
been resolved.
200512 Quarter 3 - EPS is Basic Status of Investor
Complaints for the quarter ended December 31, 2005 Complaints Pending at the
beginning of the quarter 18 Complaints Received during the quarter 1738
Complaints disposed off during the quarter 1734 Complaints unresolved at the
end of the quarter 22 1. The above results have been reviewed by the audit
committee and approved by the Board of Directors at its meetings held on
January 30, 2006. 2. Figures for the three months ended December 31, 2005 have
been subjected to 'Limited Review' by the Statutory auditors as per the listing
agreement. 3. Sales/Income from Operations for the three months ended December
31, 2005 and nine months ended December 31, 2005 is net of discount on Refinery
Transfer Prices of LPG (Domestic), SKO (PDS), MS and HSD as advised by OMCs
amounting to Rs 826.806 million and Rs 2379.272 million respectively which has
been disputed by the Company, pending resolution of certain issues. 4. Other
income includes exchange difference of Rs 1258.361 million, 183.205 million and
63.178 million for the three months ended December 31, 2004, Nine months ended
December 31, 2004 and year ended March 31, 2005 respectively. 5. Other
expenditure includes exchange difference of Rs 613.115 million and 891.420
million for the three months ended December 31, 2005 and Nine months ended
December 31, 2005 respectively. 6. The Company is engaged in refining crude oil
and all activities of the Company revolve around this business in single
segment. As such there is no other reportable segment as defined by the
Accounting Standard 17 on 'Segment Reporting' issued by the institute of
Chartered Accountants of India. 7. Figures for the previous year/period are
regrouped / rearranged wherever considered necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt Equity Ratio |
2.28 |
4.07 |
7.38 |
|
Long Term Debt Equity Ratio |
0.95 |
2.42 |
6.41 |
|
Current Ratio |
0.80 |
0.83 |
1.02 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.07 |
1.87 |
1.27 |
|
Inventory |
13.35 |
11.54 |
9.37 |
|
Debtors |
23.38 |
22.09 |
22.58 |
|
Interest Cover Ratio |
7.36 |
2.54 |
(0.15) |
|
Operating Profit Margin (%) |
10.00 |
10.51 |
3.36 |
|
Profit Before Interest and
Tax Margin (%) |
8.17 |
7.52 |
(1.00) |
|
Cash Profit Margin (%) |
6.08 |
6.64 |
(0.44) |
|
Adjusted Net Profit Margin
(%) |
4.25 |
3.64 |
(4.80) |
|
Return on Capital Employed
(%) |
27.06 |
14.38 |
0.00 |
|
Return on Net Worth (%) |
41.34 |
29.50 |
0.00 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.56.60/- |
|
Low |
Rs.54.25/- |
LOCAL AGENCY FURTHER INFORMATION
History:
Mangalore Refinery & Petrochemicals (MRPL) was
incorporated in Mar.'88. It was promoted as a joint venture between Hindustan
Petroleum Corporation (HPCL) and Indian Rayon & Industries, a Aditya Birla
group company. It had tie-up with world-renowed technologies like UOP,KTI and
Sheel for its various refineries.
ONGC has acquired 37.39% of equity capital held by Indian Rayon &
Industries Ltd and its associates in MRPL on March,2003. Post acquisition
reflects that 51.25% of the total equity capital is being held by ONGC,thus
making MRPL a subsidiary of ONGC and also a Government Company. MRPL issued
preferential issue of 600.000 Millions equity shares to ONGC,
The company came out with a public issue in May'92 to part-finance the
project of setting up a refinery with a capacity of 3 mtpa of crude oil at
Mangalore. Total project cost was Rs 2090 cr. The refinery has capacity to
produce 77,000 tpa of LPG, 230,000 tpa of naphtha, 278,000 tpa of motor
gasoline, 104,000 tpa of kerosene/ATF, 800,000 tpa of HSD, 238,000 tpa of fuel
oil, 100,000 tpa of bitumen and 13,000 tpa of sulphur. Commercial production
commenced in Mar.'96. It commissioned a 45 MW cogeneration power plant in
Sep.'95.
The refining capacity was expanded to 9 MMT p.a from 3 MMT p.a in
April,2001 and commercial production has started off during the year. The
company has contributed Rs 200.000 Millions to New Mangalore Port Trust towards
construction of new jetty at the port for exclusive use of the company. Further
it is participating as an equity shareholder in the 364 km long cross country
multi product Mangalore-Hassan-Bangalore pipeline which will help the company
in accessing wider consumtion areas for its products.
The Hassan-Bangalore Pipleline project of 367 KM long was operational and
the first parcel of HSD was transported through this pipeline and was delivered
at Bangalore on 1st August,2003. During April,2003 the parent,ONGC has acquired
23% stake equity of Petronet MHB Ltd,the company that owns this pipeline.at a
cost of Rs.383.400 Millions .
The total capex plan of Rs.7200.000 Millions have been approved and this
includes Rs.6000.000 Millions for upgrading quality of Motor Gasoline and
Diesel to meet emerging specifications of Bharat II and Euro III in
India.
MRPL is the first refinery in India to produce MS(Petrol) & HSD
(Diesel) to EURO III specifications.
During 2004-05 based on the MOU with ONGC the company purchased 3.7 MMT
Mumbai High Crude on pricing formula applicable to other PSU Refineries.
Operational performance
During the year 2004-05, the
company for the first time, has achieved its rated crude processing capacity of
11.848 million metric tonne (MMT) per annum. The refinery has processed 11.075
MMT crude oil achieving 104% capacity utilization (up 18.42% from 9.243 MMT
Revival of mrpl
The company has earned net
profit of Rs. 4594.15 millions as against net loss of Rs. 4118.06 million in
the previous year, thus achieving a trunaround in the very first year after
becoming a subsidiary of ONGC. The company is now no longer a potentially sick
company, as its accumulated losses had gone down below 50% of the net worth as
on 31st March, 2004. The company entered the elite club of top 30
companies by market cap at The Stock Exchange, Mumbai (BSE) on 17th
August 2003.
Exports
The company exported products
(Motor Spirit, Naphtha, Reformate, HSD, ATF, FO LSHS worth Rs. 61913 million
during the year (up 38% from Rs. 44775 millions). The company is now eligible
for the Super Star Trading House Status under Exim Policy of the Government of
India.
The company has technical
collaboration with :-
v
UOP I-A, USA
v
Kinetics Technology
Inc., Netherlands
v
Kinetics Technology
Inc., Italy
v
ABB Lummus /Shell,
Netherlands
The company’s fixed assets of
important value include land, buildings, plant and machinery, furniture and
fittings and vehicles.
ONGC
and Halliburton join hands for technology collaboration
Oil and Natural Gas
Corporation Ltd. (ONGC) has entered into an agreement with global oil-field
service provider M/S Halliburton for collaboration in specific E&P areas.
The 'Heads of Agreement' (HOA) document was signed at Mumbai on 9th May 2006 by
Mr. Subir Raha, C&MD, ONGC and Mr. Andy Lane, COO, Halliburton, as an extension
of the MoU concluded earlier between the two majors on 18th January, 2005.
The areas of cooperation identified in the agreement are:
- Recovery improvement and
production optimization of three ONGC fields in Assam viz. Lakwa, Lakhmani
and Geleki, with the provision of increase in the number of fields.
- Geological and
Geophysical (G&G) interpretation work flows with ONGC's Data
Interpretation Centre GEOPIC at Dehradun.
- Leveraging of drilling,
drilling fluid system, cementing techniques and other related technologies
with ONGC's Institute of Drilling Technology
ONGC
has embarked on a major revamp of its facilities in Assam , at a total
investment of over Rs. 2500 Crore rupees. This agreement with Halliburton would
facilitate deployment of latest E&P techniqus in the aging fields in Assam.
Mr. Andy Lane , COO, Halliburton mentioned that this was indeed a great step
forward for them to bring in their expertise and share a common goal with ONGC.
He remarked that though Halliburton, at present is not as big as it wants to be
in India, but they are having expansion plans in India. Setting up of a R&D
facility in Pune is on the cards apart from recruiting engineers from India to
meet the business challenges in India .
Congratulating the Halliburton Team for their proactive approach and
willingness to work in a logistically difficult terrain like Assam , ONGC's
C&MD Mr. Raha said that their collaboration in GEOPIC would bring in fair
and challenging competition among the geo-scientists of both the organizations.
"It is indeed a wise and right decision for Halliburton to expand its
operations in India at a time when the East Coast is expanding much faster and
in a complex manner having both shallow and deep waters", said Mr. Raha.
MRPL
to export petroleum products to Mauritius
May 10, 2006, PressRelease
State Trading Corporation of Mauritius has finalized import of its entire
petroleum product requirement for the country, aggregating to approximately one
million metric tonnes (Gasoline, Diesel, Jet Fuel, and Furnace Oil) from India,
for a period of one year. Mangalore Refinery and Petrochemicals ltd, (MRPL) a
subsidiary of ONGC, will be supplying entire quantity. The supplies will
commence from August 2006.
This is the first time that Mauritius will be importing petroleum products from
India. The process was initiated at the highest levels of the two Governments,
and facilitated by the Indian High Commission in Mauritius. In this context,
Hon'ble Dr. Rajesh Jeetah, Minister of Industry, Small and Medium Enterprises,
Commerce and Cooperatives, Govt. of Mauritius, had called on Mr. Murli Deora,
Minister for Petroleum & Natural Gas on 17th April, 2006.
ONGC has earlier entered into a MOU for Oil & Gas exploration in Mauritius,
and preparatory actions have been initiated. MRPL has been stepping upproduct
exports to sustain continued operation of the refinery @ 125% of the rated
capacity, the highest in India. MRPL's export earnings nearly doubled (92%
increase YoY) in 2005-06.
Mr.Subir Raha, C&MD ONGC and Chairman, MRPL, noted that despite hardening
of international prices and ocean freight, very attractive and competitive
prices have been offered by ONGC-MRPL, and therefore, the Government and the
People of Mauritius will benefit as compared to its current import
arrangements.
Shell,
Petrobras and ONGC Announce Changes in BC-10 Holdings and the entry of ONGC
Videsh Ltd (OVL)
April 27, 2006, PressRelease
Shell Brasil EP (Shell) and Petrobras confirm that Shell has exercised its
pre-emption option for an additional 30% of participating interest in the Shell
operated BC-10 block located offshore Brazil. Further, Shell and Petrobras have
agreed, through Petrobras waiving its pre-emption rights, to the on-sale of
15%, half of Shell’s additional stake acquired through this pre-emption, to the
Indian National Oil Company, ONGC Videsh Ltd (OVL). The transaction increases
Shell’s equity interest while bringing ONGC into the joint venture partnership.
Shell will remain operator
Shareholdings in the partnership will stand at Shell 50%, Petrobras 35% and OVL
15% once the transaction has been finalised and approved by Brazil’s National
Petroleum Agency.
Shell is the leading international player in offshore Brazil, with production
from the shell-operated Bijipura Salema fields, and interests in 14 exploration
blocks. Technical and commercial studies are underway for the development of
resources in BC-10, which would be shell’s second operated development in
Brazil, with the potential for production of around 100,000 barrels a day.
During the coming months, Shell, Petrobras and ONGC will continue to analyze
options for the development of BC-10. The project has entered the front-end
engineering design phase and a high-level development concept has been selected
which includes an FPSO and sub-sea systems to produce the discoveries in the
block.
John Haney, Shell EP Vice-President said: “The deepwater offshore Brazil is an
important element of their global growth strategy. We believe that an increased
interest in BC -10 is an attractive opportunity and re-confirms their
commitment to growth in Brazil. The nature of this deal emphasizes the strength
of their relationship with Petrobras and their growing relationship with ONGC.”
OVL Chairman, Mr. Subir Raha said:
"They are extremely pleased to be joining the BC-10 joint venture. It
broadens their portfolio through entry into a very valuable prospect and marks
their presence in Latin America. They look forward to partnering with Petrobras
and Shell, the most renowned companies in the area of deepwater operations.”
BC-10 was declared commercial in December 2005. The Declaration of
Commerciality occurred after a substantial exploration and appraisal program
involving 13 wells and significant engineering and technological studies. In
total six discoveries were made in the block, which resulted in ftheir
development areas: Ostra, Argonauta, Abalone and Nautilus. The block is located
approximately 120 km southeast of the city of Vitória, in water depths ranging
from 1500 to 2000 meters.
JOGMEC
AND ONGC Videsh Limited Pledge E&P Cooperation
April 24, 2006
ONGC Videsh Ltd. (OVL) and Japan Oil, Gas and Metals National Corporation
(JOGMEC) today signed a memorandum of understanding (“MOU”) for their mutual
cooperation in the hydrocarbon sector.
The MOU was signed by President, JOGMEC, Mr. Isao Kakefuda, and Managing
Director, OVL, Mr. R.S. Butola.
The concept of the MOU is based upon the joint statement on mutual cooperation
in the field of energy between Japan and India, executed in last September by
the Ministry of Economy, Trade and Industry of Japan and the Ministry of
Petroleum and Natural Gas of India.
The MOU provides for mutual collaboration for business opportunities in
exploration and production and R&D activities relevant to the hydrocarbon
sector. The MOU provides a framework for accelerating and widening cooperation
in Hydrocarbon Sector including un-conventional fuels, besides collaboration in
E&P sector. JOGMEC and ONGC Videsh Limited agree to work in close coordination
and to exchange information and to review and evaluate specific projects under
the MOU in order to accomplish the goals of the MOU.
President, JOGMEC, Mr. Isao Kakefuda believed that through executing specific
projects under the MOU with ONGC Videsh Limited, JOGMEC will help provide
Japanese private companies with a good business environment for their
exploration and production activities in the hydrocarbon sector.
Chairman, ONGC Group of companies, Mr. Subir Raha later stated that the MOU is
an important step towards promoting Japanese-India ventures in the E&P
sector in third countries, to promote energy security of the two countries
which are net importers of oil.
The
First Meeting of the Joint Working Group Of Oil And Natural Gas Corporation
(ONGC) And JSC «Gazprom»
April 24, 2006
In accordance with the Memorandum of understanding between JSC «Gazprom» and
India’s «Oil & Natural Gas Corporation» (ONGC) the first meeting of the
Joint Working Group was held in the headquarters of JSC «Gazprom» on 18th and
19th of April, 2006.
The meeting was chaired by Managing Director Mr. Butola and Deputy Chairman of
the Board Mr. Medvedev.
During the meeting the Parties reiterated agreement on mutual cooperation in
Russia and India as well as in the oil and gas projects in the Middle East,
Asia, North Africa, South America and CIS. The Parties also agreed to form the
following working Subgroups: on upstream activities; on oil and gas supplies to
India and downstream activities; on scientific and technical cooperation
including human resources and exchange of specialists.
As a result the Parties signed the respective Minutes of meeting. Next meeting
of the Joint Working Group will take place in India in July 2006.
Gazprom by far is the largest gas company in the world with production of 545.1
bcm in 2004. It accounts for 16% of the world’s proven gas resources and nearly
60% of the Russian gas reserves. It exported more than 140 bcm of gas to
Western Europe and more than 52 bcm to the former Soviet Union countries in
2004. Recently, it has diversified into oil business as well by purchase of
Sibneft. The market capitalization of Gazprom has risen to US $ 225 billion.
ONGC- the most valuable Indian corporate, accounts for 80% of the oil and gas
produced in India, producing about 1.00 million barrels of oil equivalent per
day. It is a fully integrated oil and gas company, reaching out in the overall
energy sector. With ONGC Videsh Ltd (OVL) engaged in overseas oil and gas
business and Mangalore Petrochemicals and Refineries Ltd as its refining arm,
the ONGC group has the largest market cap in India of over US$ 40 billion. The
company has been assigned the highest ever credit rating to any Indian
Corporate todate.
Memorandum of understanding between JSC «Gazprom» and «Oil & Natural Gas
Corporation» was signed in Moscow on the 21st of February 2005 between Mr.
Subir Raha, Chairman ONGC Group of Companies and Mr. A B Miller, CEO Gazprom.
In MOU the Parties expressed their intention to carry out cooperation in the
following directions: creation of capacities for deep processing of natural
gas, petroleum and other hydrocarbons in Russia, India and third countries,
organization of deliveries of produced petroleum and petrochemical products to
the markets of Asia-Pacific and South Asia countries, first of all to India;
design, construction and operation of trunk pipelines and systems of
underground storage of gas (USG) in India and third countries; development of
scientific and technical cooperation in the main areas of gas industry, namely:
exploration and development of gas and gas condensate fields, gas hydrate
fields, coal bed methane, underground gasification of lignite/coal fields,
creation and operation of systems of gas storages (including UGS) and liquid
hydrocarbons, deep processing of natural gas and other hydrocarbons, protection
of environment; cooperation in the field of training, improvement of
professional skill and retraining of the staff.
Speaking on the cooperation between ONGC and Gazprom, Mr. Subir Raha stated
that the increasing cooperation between the two companies would open up new
source of supply of oil and gas for India as well as establishment of new
stable and growing market for Russia.
Profile
MRPL, located in a
beautiful hilly terrain north of Mangalore city, is a State of Art
Grassroot Refinery at Mangalore and is a subsidiary of ONGC. The Refinery
has got a versatile design with high flexibility to process Crudes of
various API and with high degree of Automation.
MRPL has a design
capacity to process 9.69 million metric tonnes per annum and is the only
Refinery in India to have 2 Hydrocrackers producing Premium Diesel (High
Cetane). It is also the only Refinery in India to have producing Unleaded
Petrol of High Octane.
MRPL has high standards
in refining and environment protection matched by its commitments to
society. MRPL has also developed a Green Belt around the entire Refinery
with plant species specially selected to blend with the local flora
History
Before acquisition by
ONGC in March 2003, MRPL, was a joint venture Oil Refinery promoted by M/s
Hindustan Petroleum Corporation Limited (HPCL), a public sector company and M/s
IRIL & associates (AV Birla Group). MRPL was set up in 1988 with the
initial processing capacity of 3.0 Million Metric tonnes per annum that was
later expanded to the present capacity of 9.69 Million Metric tonnes per annum.
The Refinery was conceived to maximise middle distillates, with capability to
process light to heavy and sour to sweet Crudes with 24 to 46 API gravity. On
28th March 2003, ONGC acquired the total shareholding of A.V.
Birla Group and further infused equity capital of Rs.600 crores thus making
MRPL a majority held subsidiary of ONGC. The lenders also agreed to the Debt
Restructuring Package (DRP) proposed by ONGC, which included, interalia,
conversion upto Rs 365 crore of their loans into equity. Subsequently, ONGC has
acquired equity allotted to the lenders pursuant to DRP raising ONGC’s holding
in MRPL to 71.62 percent.
The implementation of DRP in
March 2003 within 4 weeks of acquiring equity in MRPL by ONGC has changed the
credit profile of the company. ICRA has assigned A1+ rating (indicating highest
safety) to the Short Term Borrowing programme of MRPL on a standalone basis
Awards and Milestones
·
State Gold award for
excellence in exports (Non –SSI) for 2000-2001
- Conferred Star Trading
House status on September 21, 2001.
- `Certificate of Merit'
for Energy conservation performance in 2001, by Ministry of Power
- State Gold award for
excellence in exports (Non –SSI) for 2001-2002
- IS0 14001 certification
on September 2, 2002.
- Export award from Kanara
Chamber of Commerce for 2002-2003
- ISO:9002 certification
on December 1999 and was re-certified ISO 9001:2000 on January 2003.
- Oil Conservation Award
from Ministry of Petroleum and Natural Gas on January 31, 2003.
- Accredited Five Star
rating by British safety council, UK in the year 2003 for its best Health
and Safety Management Systems.
- Export award from Kanara
Chamber of Commerce for 2003-2004
- Certificate of
appreciation for outstanding contribution to Central Excise Revenue –
Mangalore commissionerate for 2003-2004.
- Winner of First Prize of
Jawaharlal Nehru Centenary Award, selected by Centre For High Technology,
functioning under the aegis of MoP&NG, for the Best Performance in Energy consumption, for
the year 2003-04
- Green Tech Gold award
for Environment Excellence in
November 2004.
- National Safety Award
for the year 2004 from Ministry of Labour, GOI.
- Second prize in the Oil
Conservation Fortnight awards, selected by Centre for High Technology and
PCRA, for Furnace / boiler
efficiency, in 2004
- Certificate of
Excellence from New Mangalore Port Trust for Handling highest Quantity of
Crude in the year 2004-2005
- Winner of First Prize of
Jawaharlal Nehru Centenary Award, selected by Centre For High Technology,
functioning under the aegis of MoP&NG, for the Best Performance in Energy consumption, for
the year 2004-05
- Green Tech Gold Safety
award for Health and Safety Management Systems in 2005.
- Golden Peacock Environment Management Award for
2005
Quality Policy
QUALITY MANAGEMENT
MRPL implemented Quality
Management System (QMS) as per ISO 9000:1994 standards from December 1999 and
after obtaining its first accreditation. Later in January 2003, MRPL upgraded
its QMS to ISO 9001:2000 standards and was accredited on March 13, 2003 by TUV
Rheinland. This accreditation is an important milestone in the Company’s
continuous quest for excellence in quality and total customer satisfaction. This
certifies that the production system and quality of the Refinery products has
been established in conformance with international standards.
Quality Control Lab
MRPL's Quality Policy:
QMS is diligently followed
throughout the Refinery (wherever applicable). Having definite quality
objectives, continual improvement projects, conducting regular corrective
actions and preventive action sessions have helped to achieve improvements in
the system. Internal audits for individual departments, management review
meetings, awareness programmes for employees, collection and review of customer
feed back and customer meet programmes are other steps to confirm to standards.
Research and Development
Quality Control Laboratory
Quality Control Laboratory in
the Refinery is established under Technical Services Department. The main
objective of the Laboratory is to provide analytical assistance to all the
Units, round the clock, in addition to product certification. It is responsible
for exercising a strict control over the quality of the products produced and
dispatched. The activities of laboratory are categorized as follows:
·
Raw Material Analysis:
- Intermediate
sample analysis from all the processing Units.
- Finished
product analysis and certification as per specified standards or customer
specific standard.
- Utility
Units (Raw water and DM water treatment plant samples, Boiler water,
cooling water samples, Plant and Instrument Air samples and nitrogen
samples).
- Wastewater
treatment plants and Treated Effluent samples.
- Plant
bulk Chemicals analysis.
- Ambient
Air Quality and Weather monitoring.
- Scale
and Deposit sample analysis.
- Research
& Development.
- Investigation
and failure analysis
The Laboratory is equipped
with the most modern fully automatic and sophisticated instruments. Standard
test methods of American Society for Testing and Materials (ASTM), Institute of
Petroleum (IP), UK. Bureau of Indian Standards (BIS), Universal Oil Products
(UOP), USA,. Shell International BV (SMS) etc are adopted. Detailed Crude
assays are carried out regularly, using the TBP apparatus This Laboratory is
approved by Directorate General of Civil Aviation (DGCA), Aviation Ministry,
Center for Military airworthiness and certification (CEMILAC) and Directorate
General Aeronautical Quality Assurance (DGAQA), Ministry of Defence, for
Aviation Turbine Fuel Testing and Certification. Laboratory is headed by Deputy
General Manager(Quality Control) assisted by Senior Laboratory Supervisors,
Chemists and General workmen.
Manufacturing facilities
Crude and Vacuum Distillation Units
The Atmospheric, Vacuum Distillation Units and Naphtha
Splitter Unit designed by M/s Engineers India Ltd., are heat integrated, using
Pinch Technology to achieve high-energy efficiency, thereby reducing Fuel Oil
consumption and in turn reducing air emissions.
Hydrocracker Units
The Hydrocracker Units
produce high quality Sulphur free Diesel and ATF. The Plant is designed for 100
percent conversion of low value Vacuum Gas Oils to lighter, low Sulphur
valuable products.
Soaker Visbreakers (Technology Shell/ABB Lummus,
Holland)
Shell Soaker
Visbreaker technology under the Licence of ABB Lummus, Holland, has been
adopted to upgrade heavy vacuum residue to Gas, Naphtha and Gas Oil. This is
the first Unit in India to have Vacuum Flash column producing Vacuum Gas Oil,
that is used for supplementing the feed stock to Hydrocracker Unit and
extracting maximum value from short residue.
Platforming Units (technology UOP , USA)
The Continuous
Catalytic Regeneration Platforming Unit (CCR), a State-of-the-Art Unit,
produces Lead free, high Octane Motor Spirit (Petrol). Hydrogen produced as a
by-product is used in the Hydrocracker Unit. The other by-product is LPG.
Merox (technology UOP , USA)
LPG Merox Unit reduces
the Sulphur content in LPG. The kerosene Merox Unit converts mercaptans to
disulphide.
Hydrogen (Technology KTI , Holland)
The Hydrogen Plant
designed by M/s KTI, Holland, produces Hydrogen by Steam Reforming of Naphtha.
Hydrogen purity of 99.9 percent is achieved through the UOP Pressure Swing
Adsorption (PSA) Unit.
Bitumen (Technology M/s Porner, Austria)
This Unit employs the
highly efficient Biturox process given by M/s Porner, Austria to produce
various grades of asphalt.
Captive Power Plant
Captive Power Plant of
118.5 MW capacity for Phase I and II.
CAPACITY(MW)
Phase1-45
Phase 2 - 73.5
Other support facilities:
·
Oil Jetty to receive
Crude Oil and dispatch Petroleum products by ocean tankers.
- Raw Water line, 43 kms long from river Netravathi.
- Well equipped laboratory
- Blast proof centralized Control Room
- DCS based Control Room for all Process Units and offsites.
- 75 Storage Tanks including 4 Horton Spheres.
Socio Economic Commitment
Community Development
·
4 Villages of 2 Panchayat
area in which their Refinery is located, is adopted by MRPL.
- Integrated development plan worked out jointly with the Zilla
Panchayat and Village Panchayat, is implemented.
Various areas covered under Community Development are :
Education:
· MRPL School continues
to get grant of about Rs. 1.5 Million per annum from the company and about 65%
of the children are from the neighbtheiring places.
·
Upgradation of rural school
in the Fishermen village of Panambur and other neighbouring schools.
- Donation of furniture and computers to Schools.
- Donation of pressure cookers to various schools for Midday Meal
programme.
- Scholarships to Students – 31 Schools covering 190 Students.
Health:
· Running a free Primary
Health Centre at the Rehabilitation colony in Chellairu Village.
·
Donation of Ambulance to the
Red Cross Society at Mangalore.
- Conducting Artificial Limb Camp and providing free artificial
limbs to the physically challenged.
- Free Medical and Eye camps.
- Providing medical facilities at for the neighbouring community at
MRPL hospital.
- Helping in Malaria, Polio and Filarial eradication programmes of
District Health Department.
Drinking Water Facility:
· Providing financial
assistance to the Rajiv Gandhi Drinking Water Project, which provides drinking
water facility to a group of 10 villages.
·
Providing drinking water
facility at Permude village.
- Providing
approx. 5 kms. water pipeline to take water from Kaikamba to the Project
Displaced Rehabilitation Colony.
- Digging
Borewells in Villages.
Infrastructure Facilities:
· Black topping of
village roads.
·
Construction of Bus shelter
at Bala Village
- Construction
of Culvert at Kuthethur Village
- Construction
of Road at Kalavar Village
- Construction
of Samudaya Bhavana at Bala Village
- Desilting
of major storm water drains in the villages and in the Mangalore
Corporation area.
Sports, Environmental and other
activities :
· Providing assistance to
pursue training in Sports
·
Conducting public awareness
programme in Environment, Fire Fighting and Safety awareness in surrounding
villages.
- Providing
assistance for Beach cleaning.
- Providing
a teacher for the Special School for the mentally challenged kids.
- Organizing
events like Cricket events under PSPB.
Self Help Groups (SHG)
In order to help the poor & underprivileged neighboring
people, self help groups like Mahila Mandals are being given training on
various skill developing activities. They are also being assisted in
activities, which help them in generating income.
CMT REPORT [Corruption, Money laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the
subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation
with Government :
No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.
9] Compensation
Package :
Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on the subject.
CORPORATE
GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN
EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.45.39 |
|
UK
Pound |
1 |
Rs.85.88 |
|
Euro |
1 |
Rs.58.55 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
42 |
This score
serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |