MIRA
INFORM REPORT
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Report Date : |
01.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
OIL COUNTRY TABULAR LIMITED |
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Registered Office : |
108, Kanchanjunga, King Koti Road, Hyderabad-500001, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
22.02.1985 |
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Com. Reg. No.: |
5329 |
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CIN No.: [Company
Identification No.] |
L26932AP1985PLC005329 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDO00005F |
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Legal Form : |
A Public Limited Liability Company, The Company’s shares are listed on
the Stock Exchange. |
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Line of Business : |
Manufacturer and Supplier of Drill Pipe |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
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 4100000 |
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Status : |
Satisfactory |
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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 satisfactory track. Trade
relations are fair. General financials position is satisfactory. Payments are
reported as slow to the supplier. However, the company can be required as normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
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Registered Office/ Corporate Office : |
108, Kanchanjunga, King Koti Road, Hyderabad-500001, Andhra Pradesh,
India |
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Tel. No.: |
91-40-23231496/ 97 91-9862-272531 |
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Fax No.: |
91-40-23235617 91-8692-272595 |
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E-Mail : |
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Website : |
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Factory : |
Sreepuram, Narketpally, Nalgonda-508254, Andhra Pradesh, India |
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Tel. No.: |
91-8682-272531 |
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Fax No.: |
91-8682-272595 |
DIRECTORS
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Name : |
Mr. T S Sethurathnam |
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Designation : |
Chairman and Director |
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Other Directorship: |
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Name : |
Mr. K S Suryanarayana |
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Designation : |
Managing Director |
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Other Directorship : |
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Name : |
Mr. K Sridhar |
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Designation : |
Joint Managing Director |
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E Mail : |
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Other Directorship: |
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Name : |
Mr. N S Dattar |
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Designation : |
Director |
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Other Directorship : |
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Name : |
Mr. K V Ravindra Reddy |
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Designation : |
Director |
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Other Directorship: |
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Name : |
Mr. K G Joshi |
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Designation : |
Director |
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E Mail : |
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Name : |
Mr K H Vora ( Nominee of BOI) |
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Designation : |
Director |
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Name : |
Mr. R S Mani |
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Designation : |
Nominee |
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Name : |
Mr. Jairam B Naidu |
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Designation : |
Director |
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Name : |
Mr. Abdul Halim Bin Harun |
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Designation : |
Director |
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Name : |
Mr. P S Ravindranath |
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Designation : |
Nominee (ICICI) |
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Name : |
Mr. T D Kalra |
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Designation : |
Nominee ( IFCI) |
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Name : |
Mr. K V Shenoy |
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Designation : |
Director, Nominee of IDBI |
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Other Directorship: |
Doctors Organics
Chemicals Limited |
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Name : |
Mr. Sunil Kapoor |
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Designation : |
Nominee of IFCI, Director |
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Other Directorship : |
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KEY EXECUTIVES
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Name : |
Mr. C S Rao |
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Designation : |
Company Secretary |
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E Mail : |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Individuals |
14138544 |
35.99 |
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Companies |
568445 |
1.45 |
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FII’s |
5400 |
0.01 |
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OCB’s and NRI’s |
5678560 |
14.45 |
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Promoters |
18812251 |
47.88 |
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Mutual Funds, Banks, FI’s |
86330 |
0.22 |
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Total |
39289530 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Supplier of Drill Pipe |
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Products : |
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PRODUCTION STATUS
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Particulars |
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Unit |
Installed Capacity |
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Casing Pipes upto 20”OD |
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MT |
50000 |
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Production Tubing [Coated/Uncoated] upto 4-1/2” OD |
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MT |
15000 |
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Drill Pipes [Coated/Uncoated] upto 5-1/2” OD |
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MT |
10000 |
GENERAL INFORMATION
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Bankers : |
· Bank of India
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Raju and Prasad Chartered Accountant, |
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Address : |
401, Diamond House, Punjagutta, Hyderabad – 500 082, Andhra Pradesh, India |
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Associates/Subsidiaries : |
United Steel Allied Industries Private Limited |
CAPITAL STRUCTURE
As on 23.08.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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85000000 |
Equity Shares |
Rs. 10/- each |
Rs. 850.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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44289500 |
Equity Shares |
Rs. 10/-
each |
Rs. 442.895
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
442.900 |
442.900 |
442.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
381.700 |
174.400 |
158.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
824.600 |
617.300 |
600.900 |
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LOAN FUNDS |
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1] Secured Loans |
107.000 |
604.700 |
737.900 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
107.000 |
604.700 |
737.900 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
931.600 |
1222.000 |
1338.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
503.800 |
579.100 |
590.600 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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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 |
389.300 |
596.100 |
439.700 |
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Sundry Debtors |
436.400
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192.600 |
206.300 |
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Cash & Bank Balances |
126.700
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96.000 |
61.300 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
130.100
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137.700 |
67.200 |
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Total
Current Assets |
1082.500
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1022.400 |
774.500 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
554.900
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646.000 |
374.000 |
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Provisions |
99.800
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28.700 |
9.600 |
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Total
Current Liabilities |
654.700
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674.700 |
383.600 |
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Net Current Assets |
427.800
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347.700 |
390.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
295.200 |
357.300 |
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TOTAL |
931.600 |
1222.000 |
1338.800 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
3481.500 |
2721.100 |
1677.800 |
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Other Income |
18.000 |
33.300 |
13.600 |
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Total Income |
3499.500 |
2754.400 |
1691.400 |
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Profit/(Loss) Before Tax |
446.700 |
112.400 |
26.200 |
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Provision for Taxation |
157.600 |
19.100 |
3.100 |
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Profit/(Loss) After Tax |
289.100 |
93.300 |
23.100 |
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Expenditures : |
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Manufacturing Expenses |
365.400 |
158.300 |
80.500 |
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Employees Cost |
97.900 |
70.100 |
57.200 |
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Administrative Expenses |
375.600 |
201.700 |
178.300 |
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Miscellaneous Expenses |
46.300 |
25.700 |
1.000 |
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Increase or decrease in stock |
64.100 |
[63.600] |
[124.100] |
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Raw Material Consumed |
1415.300 |
1778.000 |
1139.900 |
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Excise Duty |
86.800 |
108.700 |
10.700 |
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Interest and Financial Charges |
397.500 |
185.200 |
170.500 |
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Power & Fuel |
132.100 |
115.500 |
85.400 |
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Depreciation & Amortization |
71.800 |
62.400 |
65.800 |
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Total Expenditure |
3052.800 |
2642.000 |
1665.200 |
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QUARTERLY RESULTS
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PARTICULARS |
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30.06.2008 1st
Quarter |
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Sales Turnover |
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619.600 |
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Other Income |
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2.900 |
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Total Income |
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622.500 |
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Total Expenditure |
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446.800 |
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Operating Profit |
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|
175.700 |
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Interest |
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|
2.700 |
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Gross Profit |
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|
173.000 |
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Depreciation |
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|
17.800 |
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Tax |
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|
46.100 |
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Reported PAT |
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|
109.100 |
KEY RATIOS
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Debt-Equity Ratio |
0.59 |
1.64 |
2.26 |
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Long Term Debt-Equity Ratio |
0.50 |
1.43 |
1.97 |
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Current Ratio |
1.46 |
1.46 |
1.75 |
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TURNOVER RATIOS |
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Fixed Assets |
1.23 |
1.03 |
0.67 |
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Inventory |
7.07 |
5.25 |
5.14 |
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Debtors |
11.07 |
13.64 |
7.94 |
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Interest Cover Ratio |
2.12 |
1.61 |
1.15 |
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Operating Profit Margin(%) |
26.31 |
13.23 |
15.65 |
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Profit Before Interest And Tax Margin(%) |
24.25 |
10.94 |
11.72 |
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Cash Profit Margin(%) |
10.37 |
5.72 |
5.30 |
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Adjusted Net Profit Margin(%) |
8.30 |
3.43 |
1.38 |
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Return On Capital Employed(%) |
104.50 |
37.42 |
23.30 |
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Return On Net Worth(%) |
48.22 |
20.73 |
5.20 |
LOCAL AGENCY
FURTHER INFORMATION
FINANCE:
The Company has fully paid principal amount of Rs.152.335 Millions
together with interest of Rs.28.181 Millions to IFCI and principal amount of
Rs.172.711 Millions and interest of Rs.13.890 Millions to ICICI. The account
with IFCI and ICICI have been closed. In addition, principal amount of
Rs.129.540 Millions and interest of Rs.26.446 Millions were paid to IDBI.
PROSPECTS:
The Crude Oil prices are constantly on rise. Consequently, Oil and Gas
Exploration activities have also increased substantially thereby increasing the
demand of the Company's products both in Domestic and International Market. The
Company's products are well accepted in the International Market on account of
its quality and on time delivery. This has enabled the Company to achieve a
turnover of Rs.3413.300 Millions during the current year 2007-08,which includes
the Export turnover of Rs.2541.400 Millions as against the turnover of
Rs.2647.600 Millions during the last year 2006-07 registering a growth of
28.92%. Similarly, the exports during the current year is Rs. 2541.400 Millions
as against Rs.1039.000 Millions of the previous year i.e., over 145% growth in
the exports. The prospects for the year 2008-09 continue to be encouraging and
the Company expects the turnover of around Rs.3500.000 Millions including
exports of Rs.2250.000 Millions. The profitability will also improve due to
increased sales of Drill Pipes both in Domestic and International Market. The
Company's profitability has increased from previous year Rs.114.411 Millions to
Rs.446.704 Millions in the current year registering a growth of over
290%.
DIRECTORS:
Dr N S Datar, retires on rotation and being eligible offer himself
for reappointment.
The Directors recommend reappointment as proposed in the Notice for the
Annual General Meeting.
IFCI, ICICI and IDBI have withdrawn their Nominees viz Shri T D Kalra,
Shri R Ramanujam and Shri V Srinivasa Rao respectively from the Board of the
Company.
The Company puts on record its appreciation for the valuable service and
guidance rendered by the Nominee Directors in development of the Company.
THE DIRECTORS' RESPONSIBILITY
STATEMENT (UNDER SECTION 217(2AA) OF COMPANIES ACT, 1956)
To the best of their knowledge and belief and according to the
information and explanations obtained by them, the Directors make the following
Statement in terms of Section 217(2AA) of the Companies Act, 1956.
Management
Discussion and Analysis Report
Industry Structure and Developments, Opportunities and Threats,
Performance, Outlook, Risks and Concerns:
The Crude Oil prices continue to rise. Consequently the Oil and Gas
Exploration activities, as also the demand of the Company's products, Drill
Pipes in particular continue to increase. The demand of Drill Pipes in the
Global Market has significantly gone up. The Company's products are well
accepted in the International Market on account of its quality' and on time
delivery' with commitment to customer satisfaction. The Company has penetrated
in the Global Market in a big way for supply of Drill Pipes in Middle East, Far
East and Europe. The Company has achieved a turnover of Rs.3413.300 Millions
during the current year 2007-08 an increase of 28.76% over 2006-07 turnover of
Rs.2647.600 Millions. The Exports during the current year 2007-08 have also
increased from Rs.963.500 Millions of the previous year to Rs.2232.600 Millions
i.e., over 132% growth in the exports. The prospects for the year 2008-09
continue to be encouraging and the Company expects further growth in the
Turnover, Profitability and Cash Flows.
The Company has developed new products and is in the process of
developing further products viz., Heavy Weight Drill Pipes, Drill Collars, Subs
and other down-hole equipment.
Despite significant increase in the demand of Oil Country Tubular Goods
(OCTGs.) in the Domestic and International Market the Company is not able to
take full advantage for the other two products viz., Production Tubing and
Casing Pipes due to non-availability of Green Pipes of required quality at
competitive prices. This has resulted in under utilization of the installed
capacity of the plant for Production Tubings and Casing Pipes. Currently the
Company is concentrating on the Drill Pipes and has planned to double the installed
capacity of Drill Pipe manufacture from 10,000 MT to 20,000 MT from internal
accruals.
The demand for the Company's products is expected to continue to rise in
view of significant increase in the Oil and Gas Exploration activities both in
Domestic and International Market.
The exploration activities are not expected to face any threats so long
as the global environment does not change in the Region. However the volatile
fluctuations in the Steel prices is expected to stress the operational results
of the Company.
AS PER WEBSITE
Profile:
Subject, is one of the leading companies in the world
processing a range of Oil Country Tubular Goods required for the Oil Drilling and
Exploration Industry. OCTL is located near Hyderabad city, India, and is an
unique facility in the World. OCTL has earned worldwide recognition for the
Quality of its products and services. Innovation and Technical Excellence are
the driving spirit behind OCTL and the overriding focus at OCTL is on the
quality of its products and services.
At subject, the complete processing activity is concentrated in a single unique
integrated Plant located at Narketpally and with Corporate Headquarters in
Hyderabad, India. The facilities include Upsetting, Heat Treatment,
Non-Destructive Testing, Metallurgical Laboratory, Gaging and Calibration
Laboratory, Tool Joint and Coupling Threading, Casing and Tubing Threading,
Friction Welding of Drill Pipe, Hydrostatic Testing and Internal Plastic
Coating of Tubulars.
Subject’s wide product range covers Drill Pipe,Heavy Weight Drill Pipe, Drill
Collars, Production Tubing, Casing, Tool Joints, Couplings, Pup Joints,
Nipples, Subs, and Cross Overs.
Subject’s Oil Field Accessories include Rotary Subs, Lift Plugs and Lift Subs,
Cross Overs (Drill Pipe to Drill Collar or Drill Collar to Drill Collar),
Stabilizer Sleeves, Welded Blade Stabilizers & Integral Stabilizers and
Cast Steel Lifting Bails.
Services include Tool Joint Hardbanding, Make and Break of Tool Joints,
Internal Plastic Coating of Drill Pipe and Tubing, Reconditioning of Drill
Pipe, Re-threading of Drill Pipe, Tubing and Casing, and Field Inspection of
Tubulars.
Subject can also manufacture and supply in large numbers finished Tool Joints
and API Couplings for Tubing and Casing of all grades.
Subject has been assessed and certified by the American Petroleum Institute
Quality Registrar (APIQR) as being in compliance witt ISO 9001:2000 Quality
System.
Subject is licensed by American
Petroleum Institute (API) as
Processor of Casing and Tubing: plain end, threaded and
coupled, and threader as per API Specification 5CT
Processor of Drill Pipe as per
API Specification 5D
Manufacturer of Rotary Drill Stem
Elements as per API Specification 7
The Products are manufactured to the relevant American
Petroleum Institute (API) Specifications and
carry API monogram:
API Specification 5D, certificate number 5D-0035
API Specification 5CT, certificate number 5CT-0243
API Specification 7, certificate number 7-0082
In addition to the manufacture of API Products, OCTL is also
a licensee for the manufacture of high performance premium connections:
Two Step Premium Connections for
Tubing and Casing
RTS-6 / RTS-8 / RSU-8 /RSU-6 for Tubing and RFC , RSS for Casing
Atlas Bradford Premium Connections for Casing and Tubing
Premium Connections Licensed by Tenaris
Products:
Subject offers a complete range of drill pipe with tool
joints attached from 2 3/8" OD to 5 1/2" OD according to API
Specification 7 and guidelines presented in API RP7G and Premium
Specifications.
Drill Pipes with 95% Remaining Body Wall and Extra Long Tool Joints and Special
Grades are also offered upon Customer's request.
Subject Drill Pipe and Tool Joints are manufactured from the finest quality
steel available. Each step of the manufacturing process is performed with the
highest degree of accuracy to meet or exceed API Specifications as well as the
Industry Standards.
Plain End Pipes and Tool Joint Forgings are ordered to specific metallurgical
chemistries and are matched for physical properties, welding compatibility,
weld strength and product integrity.
Plain end pipe is upsetted and heat-treated full length by
the Quench and Temper process to achieve uniform mechanical properties. The upset
profile is designed to blend with the inside diameter of the pipe body with a
generous radius giving a smooth transition from the thicker cross section of
the upset to the pipe body. The smooth transition minimizes the stress
concentrations
The heat-treated pipe is tested for tensile and impact
properties and are 100% nondestructively inspected for possible longitudinal
and transverse defects, wall thickness and grade verification. Dry magnetic
particle inspection of the upset ends is done to ensure that the upsets are
free from defects. The OD & ID and face of the upsets are CNC machined for
a clean surface as part of pipe preparation prior to welding.
Tool Joint Forgings are turned, bored and faced prior to
heat treatment by the Quench and Temper process to produce a uniform
microstructure, high ductility, and other mechanical properties in accordance
with API Specifications. The heat treatment is done under controlled atmosphere
for consistent quality. The hardness of every tool joint is checked by Brinell
Hardness Tester and recorded. The tensile and impact properties are verified by
destructive testing of a tool joint representing each process batch. Every tool
joint is subjected to wet magnetic particle inspection, both transverse and
longitudinal, to insure the absence of defects.
Threads are precision machined on CNC lathes. All
connections are 100% inspected for thread parameters and phosphatized either
with Zinc or Manganese for antigalling treatment.
Tools joints are attached to the drill pipe tube by friction
welding to produce a high integrity solid state weld connection between the
tool joint and the upset drill pipe tube. The process involves the rotation of
one surface against a second surface at a relatively high speed and under heavy
pressure. The friction between the tool joint surface and the pipe surface
generates heat, causing the contact surfaces to reach a high temperature, below
the melting temperature, at which they are forged together, producing the weld.
Every weld is monitored and recorded in a strip chart.
The OD and ID weld rams are removed by shearing and
machining. Post weld heat treatment of the heat affected zone between the drill
pipe upset and the tool joint is carried out to restore the properties of the
weld zone. The post weld heat treatment is a Quench and Temper process by which
the weld zone is first brought to its austenitizing temperature, and then
polymer quenched. An area wider than the weld zone is then re-heated by
induction to tempering temperature. Every post weld heat treatment is monitored
and recorded in a strip chart. Each weld is 100% inspected for hardness to
confirm that they were adequately tempered. The post weld heat treatment
process consistently produces stronger, tougher, and more uniform weld
properties and a desirable microstructure which maximizes the resistance to
stress and fatigue.
Surfaces adjacent to the weld line are smooth finished on
both the OD and ID. Precision machining and grinding provides a surface finish
that is free of stress risers. Each weld area is 100% inspected using wet
magnetic particle and ultrasonic inspection techniques. Destructive testing of
the weld covering tensile, yield, impact and bend test are carried out for
every defined lot and are documented
The Quality Control involves sampling at defined and random
intervals for process control.
All the tests and inspection results and product traceability data are fully
documented and maintained in a computerized data base. At any time, the
Customer can be provided with a comprehensive account of his product.
Traceability
For each drill pipe component, complete product and process
traceability is maintained from the raw material to the completion of all the manufacturing
. For the pin and box tool joints, the mill test certificates are confirmed by
incoming testing and each tool joint is provided with a unique product number
and this product number gives the traceability through out the manufacturing
process. The same procedure is applied to the pipe for it's traceability.
Complete documentation is provided with each shipment
detailing the full Quality Control records likeQuality Clearence Certificate
Length Tally Sheet
Drill String Assembly Data which includes the product number
of each component (Pin and Box and Pipe), heat numbers of each component,
finished length, upset to upset length & weight of each pipe.
Mill Test & Inspection Certificate which includes
chemical analysis for all pipe and tool joints , mechanical results of pipe and
upset and tool joints, and mechanical results of test welds.
Non Destructive Test Certificate
Any other documentation per Customer's request can also be
provided.
Options available on customer's request:
Extra Long Tool Joints: to provide increased space for
connection rework and for tong handling
Make and Break of Tool Joints: break the joints in by making
up three times to their recommended make-up torque. This option ensures proper
initial make-up of tool joints which affects the life of the tool joint
connections. Saves rig time.
Cold Rolling: of thread roots to create a pre-stress
compression loading condition which increases fatigue life by increasing
resistance to crack initiation.
Hardfacing of Tool Joints
SmoothX®: provides a smooth surface with little or no
exposed carbide to minimize the tool joint wear
Super SmoothX®: for applications requiring maximum casing protection provided
by a "machine or grind finish" surface
CASING PLUS®: for a very hard but smooth surface that
simultaneously protects both the tool joint and the casing in which it is run
ARNCO 100XT™ / ARNCO 200XT™ / ARNCO 300XT™: Provides low coefficient of
friction to reduce casing wear, as well as provide a high resistance to rapid
abrasive wear on the tool joint.
ARMACOR M™: Provides a low coefficient of friction and high wear resistance to
prevent casing wear as well as abrasive wear on the tool joint.
TCS 8000™: Chromium- alloy hardbanding material reduces wear
on tool joints and on well casings.
TCS Titanium™: Contains Titanium- carbides which are harder
than Tungsten- carbides increasing tool joint protection and is casing friendly
Internal Plastic Coating
Internal Plastic Coating of Drill Pipe improves the
performance and life of the drill pipe.
The Drill Pipe is thermal cleaned and the internal surface is blasted with grit
for a good anchor pattern preparatory to Coating. A two stage application of
phenolic / epoxy liquid coatings is sprayed on to the internal surface of the
drill pipe in a controlled manner and thermal cured at each stage. This ensures
uniform coating thickness and Quality throughout the length of the Drill Pipe.
Internal Plastic Coating of Drill Pipe improves the performance
and life of the drill pipe.
The Drill Pipe is thermal cleaned and the internal surface is blasted with grit
for a good anchor pattern preparatory to Coating. A two stage application of
phenolic / epoxy liquid coatings is sprayed on to the internal surface of the
drill pipe in a controlled manner and thermal cured at each stage. This ensures
uniform coating thickness and Quality throughout the length of the Drill Pipe.
Services:
Services include Tool Joint Hardfacing (SmoothX®/ Super
SmoothX®/ CASING PLUS®/ ARMACOR MTM/ or ARNCO 200XTTM), Make and Break of Tool
Joints, Internal Plastic Coating of Drill Pipe and Tubing, Reconditioning of
Drill Pipe, Re-threading of Drill Pipe, Tubing and Casing and Field Inspection.
Reconditioning of Drill Pipe
Reconditioning of Drill Pipe involves full pipe body
inspection as per the guidelines of API RP7G, inspection of Tool Joints and
inspection of the critical area covering the weld zone and the internal fade
out area from the Upset to the pipe body.
The worn out and damaged tool joints are cut off and new tool joints are
friction welded to the accepted pipe, machined and post weld heat treated,
hardness tested and inspected using wet magnetic particle inspection and
ultrasonic methods. The new tool joints can also be provided with Hardfacing.
Rethreading of Drill Pipe
Rethreading of Drill Pipe involves machining of new
connection on the damaged tool joint pin and box.
Rethreading of Casing and Tubing
Rethreading of Casing and Tubing involves inspection of the
pin threads and the couplings for thread damages. The defective pins are cut
off and new pin connections are machined and the damaged couplings are replaced
with new couplings. The pipe is hydrostatically tested as per the API
Specifications.
Field Inspection
Field Inspection of Oil Country Tubular Goods as per the API
Specifications and Customer requirements is part of OCTL activities.
Tool Joint Hardfacing
SmoothX®: provides a smooth surface with little or no
exposed carbide to minimize the tool joint wear
Super SmoothX®: for applications requiring maximum casing protection provided
by a "machine or grind finish" surface
CASING PLUS®: for a very hard but smooth surface that simultaneously protects both
the tool joint and the casing in which it is run
ARNCO 100XT™ / ARNCO 200XT™ / ARNCO 300XT™: Provides low coefficient of
friction to reduce casing wear, as well as provide a high resistance to rapid
abrasive wear on the tool joint.
ARMACOR M™: Provides a low coefficient of friction and high wear resistance to
prevent casing wear as well as abrasive wear on the tool joint.
TCS 8000™: Chromium- alloy hardbanding material reduces wear
on tool joints and on well casings.
TCS Titanium™: Contains Titanium- carbides which are harder
than Tungsten- carbides increasing tool joint protection and is casing
friendly.
Make and Break of Tool Joints
Break the joints in by making up three times to their
recommended make-up torque. This option ensures proper initial make-up of tool
joints which affects the life of the tool joint connections. Saves rig time.
Internal Plastic Coating
Internal Plastic Coating of Drill Pipe improves the
performance and life of the drill pipe.
The Drill Pipe is thermal cleaned and the internal surface is blasted with grit
for a good anchor pattern preparatory to Coating. A two stage application of
phenolic / epoxy liquid coatings is sprayed on to the internal surface of the
drill pipe in a controlled manner and thermal cured at each stage. This ensures
uniform coating thickness and Quality throughout the length of the Drill Pipe.
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.42.49 |
|
UK Pound |
1 |
Rs.84.21 |
|
Euro |
1 |
Rs.66.33 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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
EXPLANATIONS
|
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. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|