MIRA
INFORM REPORT
|
Report Date : |
04.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
OIL AND NATURAL GAS CORPORATION LIMITED |
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Registered Office : |
Jeevan Bharati Tower – II, 124 Indira Chowk, New Delhi – 110 001 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
23.06.1993 |
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Com. Reg. No.: |
54155 |
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CIN No.: [Company
Identification No.] |
L74899DL1993GOI054155 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMO00241D |
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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 : |
Manufacturing of Crude Oil, Natural Gas, Liquefied etroleum Gas,
Natural Gasoline, Ethane / Propane, Aromatic Rich Naptha and Superior
Kerosene Oil. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
USD 3096196300 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed having fine track. The company
is progressing well. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are usually correct and as per commitments. Fundamentals are strong and healthy. The company can be considered normal for business dealings at usual
trade terms and conditions. The company can be regarded as a promising business partner in a
medium to long-run. |
LOCATIONS
|
Registered Office : |
Jeevan Bharati Tower – II, 124 Indira Chowk, New Delhi – 110 001,
INDIA. |
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Tel. No.: |
91-11-23721756/23310156-58/23301000 |
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Fax No.: |
91-11-23316413 |
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E-Mail : |
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Website : |
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Corporate Office : |
P. O. Box 55, Tel Bhavan, Dehradun – 248 003, Uttar Pradesh |
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Tel. No.: |
91-135-2757121 |
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Fax No.: |
91-135-2755298 |
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Factory 1 : |
Hazira and Uran |
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Regional Offices : |
Located at : v Baroda v Nazira v Kolkata v Mumbai v Chennai |
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Head Quarters : |
Dehradun, Uttar Pradesh |
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Institutes
: |
Mumbai, Goa, Dehradun and Baroda |
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Branches : |
Located at :- v 701 Vasundhara Area,
Ali Yavarjung Marg, Bandra (East), Mumbai – 400 051, Maharashtra
Tel. No. 91-22-26451827 / 26513924 / 23513925 / 26429901 /
26429983 v Nirmal, 7th
Floor, Nariman Point, Mumbai, Maharashtra v 5/A, Vasudhara Bhavan,
Bandra (East), Mumbai – 400 051, Maharashtra v Ankleshwar –
393010, Gujarat v No. 8, Gandhi
Irwin Road, Egmore, Chennai – 600 008, Tamilnadu |
DIRECTORS
|
Name : |
Mr.
R.S. Sharma |
|
Designation : |
Chairman & Managing Director (from 25.05.2006) / Director
(Finance) |
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Date of Birth/Age : |
01.02.1951 |
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Date of Appointment : |
01.03.2002 |
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Qualification : |
CAIIB, FICWA & Advance Financia Management Program in Oil and Gas from
University of Texas, Dallas (USA). |
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Experience in Specific Functional Areas : |
Currently holding the position of Chairman & Managing Director
(from 25.05.2006)/Director (Finance); Enriched and diverse experience of more
than 30 years in finance, accounts, insurance and banking. |
|
Directorship held in other Public companies : |
Indian Oil Corporation Limited Mangalore Refinery and Petrochemicals Limited ONGC Videsh Limited ONGC Tripura Power Co. Private Limited Mangalore SEZ Limited Kakinada SEZ Private Limited Kakinada Refinery & Petrochemicals Private Limited ONGC Mittal Energy Services Limited ONGC Mittal Energy Limited Mangalam Retail Services Limited |
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Chairmanship /Membership of Committees across all
Public companies : |
ONGC Member • Business Development • Financial Management Health, Safety & Environment • Human Resource Management Project Appraisal Remuneration • Shareholders'/ Investors' Grievance • Share Transfer ONGC Videsh Limited Member Audit |
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|
Name : |
Mr. Subir
Raha |
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Designation : |
Chairman & Managing Director (upto 24.05.2006) |
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|
Name : |
Dr. A.K. Balyan |
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Designation : |
Director (Human Resource) |
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Date of Birth/Age : |
2nd July, 1951 |
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Date of Appointment : |
23rd August, 2003 |
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Qualification : |
Decorate Degree in Chemistry from Technische Hochshule fur Chemie,
Merseburg, Germany, and alumnus of IIT, Delhi |
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Experience in Specific Functional Areas : |
Holding position of Director (HR) and in-charge of Business
Development & Joint-ventures; Multifarious and enriched experience of
over 3 decades in various disciplines including Analytical Geo-Chernistry
Lab, Mud Engineering, Planning, Exploration and Project Management. |
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Directorship held in other Public companies : |
ONGC Videsh Limited Mangalore Refinery and Petrochemicals Limited Dahej SEZ Limited Mangalore SEZ Limited ONGC Tripura Power Co. Private Limited |
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Chairmanship /Membership of Committees across all
Public companies : |
ONGC Member Business Development Human Resource Management • Health, Safety & Environment • Project Appraisal • Remuneration Shareholders'/Investors' Grievance • Share Transfer |
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Name : |
Mr.
N.K. Mitra |
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Designation : |
Director (Offshore) |
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Name : |
Mr.
A.K. Hazarika |
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Designation : |
Director (Onshore) |
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Name : |
Mr.
D.K. Pande |
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Designation : |
Director (Exploratron) (from 23.09.2005) |
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Name : |
Mr.
Y.B. Sinha |
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Designation : |
Director (Exploration) (upto 04.05.2005) |
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|
Name : |
Mr.
U.N. Bose |
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Designation : |
Director (Technology & Field Services) (from 27.09.2005) |
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Date of Birth/Age : |
07.11.1952 |
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Date of Appointment : |
27.09.2005 |
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Qualification : |
Bachelor Degree in Mechanical Engineering. |
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Experience in Specific Functional Areas : |
Currently holding the position of Director (T&FS) and has to his
credit, experience of about 30 years in various fields including deviation/
horizontal drilling, implemented drilling programmes in high pressure/high
dip and technology solutions to resolve difficult area drilling problems;
initiated deep water drilling campaign in deep and ultra-deep areas;
contributed technical papers and developed high -end training facilities for
rig supervisors. |
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Directorship held in other Public companies : |
Engineers India Limited ONGC Videsh Limited |
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Chairmanship /Membership of Committees across all
Public companies : |
ONGC Member • Business Development • Health, Safety & Environment Project Appraisal • Human Resource Management |
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|
Name : |
Mr.
Nathu Lai |
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Designation : |
Director (Technology & Field Services) (upto 30.04.2005) |
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Name : |
Mr.
Anil Razdan |
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Designation : |
Director (from 20.02.2006) |
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|
Name : |
Mr. M.S.
Srinivasan |
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Designation : |
Director (from 5.12.2005 to 02.01.2006) |
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|
Name : |
Mr.
Ashok Chawla |
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Designation : |
Director (from 05.12.2005) |
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Date of Birth/Age : |
08.01.1951 |
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Date of Appointment : |
05.12.2005 |
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Qualification : |
IAS, Post Graduate in English Literature and Economics; Diploma
(Micro-level Planning). |
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Experience in Specific Functional Areas : |
Currently holding the position of Addl. Secretary, Deptt. of Economic
Affairs, Ministry of Finance; concurrently Chairman & Managing Director,
Security Printing & Minting Corporation of India Limited Served with
distinction both in Central and State Governments. Important assignments
include Collector of Ahmedabad and Baroda Districts, Addl. Controller of
Capital Issues; Economic Counsellor, Indian Embassy, Washington, USA;
C&MD, Indian Petrochemicals Corporation Limited, Industries Commissioner,
Govt. of Gujarat; represented India in a number of UN meetings. |
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Directorship held in other Public companies : |
Security Printing & Minting Corporation of India Limited • Member, Insurance Regulatory and Development Authority. |
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Chairmanship /Membership of Committees across all
Public companies : |
ONGC Member • Audit & Ethics • Business Development • Financial Management • Project Appraisal |
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|
Name : |
Mr.
RK. Deb |
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Designation : |
Director (upto 05.12.2005) |
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Name : |
Mr.
Sunjoy Joshi |
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Designation : |
Director (upto 05.12.2005) |
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Name : |
Mr.
RK. Sinha |
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Designation : |
Director (upto 03.03.2006) |
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Name : |
Mr.
M.M. Chitale |
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Designation : |
Director |
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Name : |
Mr.
Rajesh V. Shah |
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Designation : |
Director |
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|
Name : |
Mr.
U. Sundararajan |
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Designation : |
Director |
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Date of Birth : |
14th June, 1942 |
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Date of
Appointment : |
11th September, 2003 |
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Qualification : |
FICWA |
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Other
Directorship : |
Ø
Thirumalai Chemicals Limited Ø
Cochin Shipyard Limited |
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|
Name : |
Mr.
A.M. Uplenchwar |
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Designation : |
(from 23.12.2005) |
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Name : |
Mr.
N.K. Nayyar |
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Designation : |
Director (upto 05.12.2005) |
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Name : |
Dr. R.K. Pachauri |
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Designation : |
Director (from 26.06.2006) |
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Name : |
Mr.
V.R Singh |
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Designation : |
Director (from 26.06.2006) |
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Name : |
Mr.
RK. Choudhury |
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Designation : |
Director (from 26.06.2006) |
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Name : |
Dr. Bakul H. Dholakia |
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Designation : |
Director (from 26.06.2006) |
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Name : |
Mrs. Sindhushree Khullar |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. S. C. Setia |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2008
|
Names of holders |
No. of Shares |
Percentage of
Holding |
|
President of
India |
1,585,740,673 |
74.14 |
|
Indian Oil
Corporation Limited |
164,480,857 |
7.69 |
|
Gas Authority of
India Limited |
51,400,267 |
2.40 |
|
Life Insurance
Corporation of India |
50,427,584 |
2.35 |
|
Euro Pacific
Growth Fund |
22,557,739 |
1.05 |
Distribution of Share
holding pattern
As on 31.03.2008
|
Category |
No. of shares |
Percentage of holding |
|
A. Promoter’s Holding |
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|
|
1. Promoters |
|
|
|
Indian Promoters |
1,585,740,673 |
74.14 |
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Sub Total |
1,585,740,673 |
74.14 |
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B. Non-Promoters Holding |
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2. Institutional Investors |
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|
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a. Mutual Funds
and UTI |
35,193,551 |
1.65 |
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b. Banks,
Financial Institutions, Insurance Companies (central / State Government
Institutions / Non Government Institutions.) |
80,976,638 |
3.78 |
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c. FIIs |
163,093,588 |
7.63 |
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Sub Total |
279,263,277 |
13.06 |
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3. Others |
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|
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a. Private
Corporate Bodies |
233,320,942 |
10.91 |
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b. Indian Public |
38,613,582 |
1.81 |
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c. NRIs / OCBs /
Clearing Members |
1,933,556 |
0.08 |
|
Sub Total |
273,868,080 |
12.80 |
|
Grand Total |
2,138,872,530 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Crude Oil, Natural Gas, Liquefied etroleum Gas, Natural
Gasoline, Ethane / Propane, Aromatic Rich Naptha and Superior Kerosene Oil. |
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Products : |
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PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Crude Oil |
MT |
NA |
26189601 |
|
Natural Gas |
000M3 |
NA |
24967985 |
|
Liquefied Petroleum Gas |
MT |
1158000 |
1094307 |
|
Ethane/Propane |
MT |
570000 |
535089 |
|
Naptha |
MT |
1469030 |
1556913 |
|
Superior Kerosene Oil |
MT |
297200 |
177756 |
|
Heavy Cut |
MT |
32965 |
10 |
|
LSHS |
MT |
19800 |
25096 |
|
HSD |
MT |
12540 |
36291 |
GENERAL
INFORMATION
|
No. of Employees : |
39352 |
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Bankers : |
State Bank of India, New Delhi |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K. K. Soni & Company Chartered Accountants S.C. Ajmera & Company Chartered Accountants PSD and Associates Chartered Accountants Singhai and Company Chartered Accountants Padmanabhan Ramani and Ramanujarn Chartered Accountants |
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Associates : |
v Petronet LNG
Limited v ONGIO
International Private Limited v Petronet MHB
Limited |
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Subsidiaries : |
v
ONGC Videsh Limited (OVL) v
Mangalore Refinery & Petrochemicals Limited (MRPL) v
ONGC Nile Ganga B.V. v
ONGC Narmada Limited v ONGC Bonny Brahmaputra
Limited v ONGC Campos Holdings
Limited v ONGC Do Brasil Exploracao
Petrolifera Limited v ONGC Amazon Alaknanda
Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15,000,000,000 |
Equity Shares |
Rs.10/- each |
Rs.150000.000
millions |
Issued and Subscribed:
|
No. of Shares |
Type |
Value |
Amount |
|
2138,891,502 |
Equity Shares |
Rs.10/- each |
Rs. 21388.920
millions |
Paid up:
|
No. of Shares |
Type |
Value |
Amount |
|
2138,872,530 |
Equity Shares |
Rs.10/- each |
Rs. 21388.725
millions |
|
Add: |
Forfeited shares |
|
Rs. 0.140
millions |
|
|
Total |
|
Rs.
21388.865 millions |
Note:
(i) 342,853,716 Equity shares issued as fully paid
up to the president of India without payment being received in cash in terms of
oil and natural gas commission (Transfer of undertaking and repeal) Act, 1993.
(ii) 1,789,397,876 Equity shares issued as
fully paid up by way of bonus shares by capitalisation of General Reserve and
securities premium.
(iii) 18,972 Equity shares have been forfeited
during the year.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
21388.870 |
14259.300 |
14259.280 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
597850.390 |
525337.390 |
454194.870 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
619239.260 |
539596.690 |
468454.150 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
3737.390 |
1069.760 |
18221.550 |
|
|
TOTAL BORROWING |
3737.390 |
1069.760 |
18221.550 |
|
|
DEFERRED TAX LIABILITIES |
65227.440 |
63551.330 |
54438.460 |
|
|
Liability for Abandonment Cost |
147353.270 |
126156.350 |
80940.640 |
|
|
|
|
|
|
|
|
TOTAL |
835557.360 |
730374.130 |
622054.800 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
88391.140 |
78421.970 |
58365.310 |
|
|
Capital work-in-progress |
48250.990 |
28231.010 |
43186.680 |
|
|
Producing Properties [Net] |
295684.670 |
275833.370 |
229606.630 |
|
|
|
|
|
|
|
|
Exploratory Wells In Progress |
34005.980 |
29602.830 |
17357.870 |
|
|
|
|
|
|
|
|
INVESTMENT |
57020.510 |
48885.730 |
40366.660 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Interest Accrued |
7268.630
|
3509.480
|
4357.270 |
|
|
Inventories |
30337.580
|
27642.800
|
23924.190 |
|
|
Sundry Debtors |
27594.400
|
37042.760
|
37293.070 |
|
|
Cash & Bank Balances |
136705.080
|
42792.650
|
58488.060 |
|
|
Deposit with Bank Fund Scheme |
56102.860
|
45335.560
|
36190.660 |
|
|
Other Current Assets |
0.350
|
0.210
|
0.000 |
|
|
Loans & Advances |
185945.250
|
212549.330
|
159637.380 |
|
Total
Current Assets |
443954.150
|
368872.790
|
319890.630 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
88169.700
|
65270.110
|
51904.170 |
|
|
Provisions |
48721.020
|
37866.810
|
40126.440 |
|
Total
Current Liabilities |
136890.720
|
103136.920
|
92030.610 |
|
|
Net Current Assets |
307063.430
|
265735.870
|
227860.020 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
5140.640 |
3663.350 |
5311.630 |
|
|
|
|
|
|
|
|
TOTAL |
835557.360 |
730374.130 |
622054.800 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
568414.130 |
479714890 |
463620.450 |
|
|
Other Income |
42291.990 |
23484.980 |
17251.470 |
|
|
Total Income |
608705.120 |
503199.870 |
480871.920 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
286702.120 |
218371.220 |
196655.450 |
|
|
Provision for Taxation |
130272.950 |
74063.440 |
66824.990 |
|
|
Profit/(Loss) After Tax |
156429.170 |
144307.880 |
129830.460 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
FOB value of sales |
29813.450 |
26084.900 |
39.170 |
|
|
Services |
1.930 |
6.680 |
33548.970 |
|
|
Other Earnings |
91.180 |
2.240 |
6216.400 |
|
Total Earnings |
29906.560 |
26093.820 |
39804.540 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Capital Items |
34309.560 |
25371.540 |
28148.300 |
|
|
Stores & Spares |
2431.300 |
4760.990 |
3301.910 |
|
Total Imports |
36740.860 |
30132.530 |
31450.210 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Purchase |
59481.050 |
34337.970 |
51013.160 |
|
|
Production, Transportation, Selling & Distribution
Expenditures
|
210901.300 |
170296.550 |
168428.250 |
|
|
Depreciation
|
94666.790 |
83021.720 |
62014.230 |
|
|
Financing costs
|
394.790 |
298.140 |
409.630 |
|
|
Provisions & Write-Offs (Net)
|
3342.340 |
3437.650 |
2828.250 |
|
|
(Increase) / Decrease in stocks
|
197.260 |
(2115.830) |
0.000 |
|
Total Expenditure |
322003.000 |
284828.650 |
284693.520 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales
Turnover |
136877.000 |
154139.200 |
151208.300 |
|
Other
Income |
8388.100 |
12099.700 |
8629.800 |
|
Total
Income |
145265.100 |
166238.900 |
159838.100 |
|
Total
Expenditure |
57654.200 |
69986.100 |
70890.600 |
|
Operating
Profit |
87610.900 |
96252.800 |
88947.500 |
|
Interest |
47.500 |
304.900 |
114.000 |
|
Gross
Profit |
87563.400 |
95947.900 |
88833.500 |
|
Depreciation |
17545.600 |
19871.300 |
22117.500 |
|
Tax |
22392.500 |
22264.700 |
19151.800 |
|
Reported
PAT |
46105.300 |
50974.800 |
43665.400 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.24 |
0.22 |
0.24 |
|
Long
Term Debt-Equity Ratio |
0.24 |
0.22 |
0.22 |
|
Current
Ratio |
1.41 |
1.44 |
1.45 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
0.52 |
0.49 |
0.52 |
|
Inventory |
17.70 |
17.77 |
19.47 |
|
Debtors |
17.61 |
12.98 |
15.45 |
|
Interest
Cover Ratio |
600.50 |
465.95 |
525.37 |
|
Operating
Profit Margin(%) |
44.51 |
50.28 |
43.34 |
|
Profit
Before Interest And Tax Margin(%) |
41.66 |
45.35 |
42.18 |
|
Cash
Profit Margin(%) |
30.34 |
34.84 |
28.96 |
|
Adjusted
Net Profit Margin(%) |
27.49 |
29.91 |
27.79 |
|
Return
On Capital Employed(%) |
33.20 |
35.71 |
36.61 |
|
Return
On Net Worth(%) |
27.00 |
28.63 |
29.71 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Oil and Natural Gas Corporation (ONGC) was set up in 1956 with
significant contribution in industrial and economic growth of the country, is a
leading National Oil Company of India engaged mainly in exploration,
development and production of crude oil, natural gas and some value added
products. It was subsequently converted into a public limited company in
Jun.'93 following new liberalized economic policy adopted by the Government of
India in July, 1991 sought to deregulate and delicense the core sector
(including petroleum sector) with partial disinvestment of Govt. equity in
Public Sector Undertakings and other measures.
It is India's largest producers of Crude Oil, Natural Gas and LPG. It also
produce other value added petroleum products such as NGL, C2-C3, Aromatic Rich
Naptha and Kerosene. Since its inception in 1956 the company has made four
basin discoveries in India and presently produces from 108 oil & gas fields
located in six sedimentary basins. It has drilled a total of 8248 wells
(exploratory 4051 and development 4197) and established 278 hydrocarbon finds
with ultimate reserve of about 1900 million tonnes of oil & oil equivalent
gas. The company is active in 16 of the 26 sedimentary basins and in others
knowledge building efforts at various stages are in progress. Its activities
are spread over both land and offshore areas of Indian sedimentary
basins.
DIRECTOR'S REPORT
During the year, the Company made twenty two (22) Hydrocarbon discoveries, out
of which nine were from the new prospects and thirteen by establishing new
pools in the existing prospects. Out of these nine new discoveries, three are
in Cambay Basin, one each in Mumbai Offshore, Assam Shelf and Cauvery Basin and
three in East Coast deepwater. Further, extensive exploration efforts have
resulted into five significant discoveries during the first quarter of the
current fiscal, two in Assam and one each in Tripura, KG Basin Onshore and
Mahanadi Basin Offshore. The Company has discovered Initial In-place (IIP)
reserves of 169.52 Million Metric Tonnes (MMT) of Oil and Oil Equivalent Gas (O+OEG)
from domestic fields in 2006-07, the highest during the last ten years.
The Company has opened up ultra deepwater province in the country by making the
first discovery in well UD-1 at a water depth of 2,841 metres in KG-DWN-98/2
Block.
During the year, the Company registered an increase of 3.2% in O+OEG production
with 6.7% increase in crude oil production, notwithstanding natural decline in
reservoir energy and effect of natural calamities at Hazira Plant and Gujarat
oil fields. The Company also maintained the trend of achieving Reserve
Replacement Ratio (RRR) of more than one (1.35 during 2006-07). Considering
production of ONGC Videsh Limited (OVL) and Joint Ventures, the total
production of ONGC Group is 60.80 MMT (O+OEG), up 5.8%; oil production up by
9.9%.
Monetizing 44 Marginal fields out of 165 identified fields, the Company added a
contribution of 0.5 MMT of O+OEG. 90 more marginal fields are under
monetization.
The Company has initiated integrated development of G-1 and GS-15 fields in
Krishna-Godavari (KG) Basin through LSTK EPC contract. However, due to
non-performance of the contractor, the contract has been terminated on 4th
June, 2007. Necessary measures have been initiated to complete the balance work
at 'risk-and-cost' of the contractor, as per contractual terms. This is likely
to entail additional expenditure of approx. US $87 million after adjusting
contractor's liability towards 'risk-and-cost'. Development of adjacent
deepwater fields 'Vashishta' and 'S-1' is in offing. Efforts are being made to
develop these fields utilising the facilities under G-1 and GS-15 projects to
the maximum extent in order to offset this cost.
It is a matter of pride that ONGC is the only Company in India to produce
Aviation Turbine Fuel (ATF) from Gas Condensate. The first tanker of ATF was
flagged off to ONGC's Helibase at Juhu, Mumbai from Hazira Plant on 11th March,
2007.
ONGC continues to maintain the unique distinction in the Indian Corporate
Sector of having the highest Net Worth (Rs. 614099.000 million) and earning the
highest Net Profit (Rs. 156429.000 million), despite allowing subsidy sharing
discounts to the tune of Rs. 170239.000 million to PSU Oil Marketing Companies
(OMCs) in the price of Crude Oil, PDS Kerosene and Domestic LPG, as per
administrative orders of the Ministry of Petroleum & Natural Gas,
Government of India. Also, the Company remains undisputed leader in India in
terms of dividend payout (Rs. 66305.000 million).
The Company has been reaffirmed the highest-ever Credit Rating for an Indian
Corporate, awarded initially in the previous year, by the International Credit
rating Agency, Moody's Investor Services. The rating awarded to the Company is
Baa1 (Indicative Foreign Currency debt rating) 2 notches higher than Sovereign
rating/ A2 (Local currency issuer rating) 6 notches higher than Sovereign
rating, with stable outlook. CRISIL and ICRA have also reaffirmed the Company
the highest credit rating of AAA and LAAA respectively, with a stable
outlook.
ONGC got 24 blocks, (the highest by any Company) out of 52 blocks awarded by
the Government of India under NELP-VI (New Exploration Licensing Policy). In
addition, ONGC is a partner (with 35% share) in Block PR-OSN-2004/1 in which
Cairn Energy is the Operator. Cumulatively, the Company has been awarded 85
blocks (more than half), out of 162 blocks awarded so far in the six NELP
bidding rounds.
The Company has been ranked as the Numero Uno Oil & Gas Exploration &
Production (E&P) Company in the world by 'Platts 250 Global Energy
Companies List for the year 2006' (released on 6th September, 2006). At the
same time, the Company has also been ranked as 20th Leading Global Energy Major
amongst the 'Top 250 Energy Majors of the World in the Platt's List', based on
outstanding performance of the Company in respect of Assets, Revenues, Profits
and Return on Invested Capital (ROIC).
The Company is the only Company from India to feature in the Fortune magazine's
list of the World's Most Admired Companies 2007. The Company secured 9th
position in the Industry - Mining, Crude Oil Production. This ranking was based
on the valued perception of the Financial Analysts and Executives and Directors
of 347 companies with annual revenue in excess of US $8 billion.
The Company has established benchmarks of excellence in various facets of its
activities and has been well recognized through peer-and-public evaluation. The
details of awards and recognitions to the Company are placed at Annexure-E,
important highlights of which are:
* The Company retains its Numero Uno ranking amongst all Indian Companies in
the prestigious Forbes Global 2000 list of World's mega corporations (based on
composite evaluation of Sales, Profits, Assets and Market Value).
The Company climbed up 17 places to 239th position from last year's ranking at 256th position.
The Company climbed to 369th rank (from 402nd rank last year) in Fortune Global
500 list for the year 2006 based on Revenues. In terms of Profits, the Company
maintains its top rank from India, with overall ranking of 121st (July,
2007).
ONGC was conferred with coveted Motilal Oswal CNBC TV18 Biggest Wealth Creator of India award for the period 2001-2006.
The Company has been ranked Numero Uno in the Indian Corporate Sector by the
Business India Super 100 (December, 2006), based on Sales, Profits, Net Fixed
Assets and the Market Value.
The subsidiaries of the Company, ONGC Videsh Limited (OVL) and Mangalore
Refinery and Petrochemicals Limited (MRPL), registered unprecedented performance
levels during the year.
OVL, wholly-owned subsidiary of the Company, the biggest Indian Multinational,
operating in 15 countries with 26 projects, has made significant oil discovery
in North Ramadan Block 6 in Egypt. OVL also discovered oil and gas in Farsi
Offshore Block under Exploration Service Contract with National Iranian Oil
Company. OVL sourced 7.95 Million Metric Tonnes (MMT) of equity Oil & Oil
Equivalent Gas (O+OEG), the highest-ever, 25% more than the previous fiscal.
OVL recorded the highest-ever Sales Turnover and Profits with a growth of 46%
and 85%, respectively.
Government of India (GoI) conferred the 'Mini Ratna' (Category-1) Company
status on 15th June, 2007 to Mangalore Refinery and Petrochemicals Limited
(MRPL), a subsidiary of the Company. MRPL achieved new heights in terms of
Capacity Utilization, Turnover and Profits. MRPL has been ranked 11th among the
India's top 500 Companies (5th among oil refining & marketing companies) in
terms of Total Income in 2006 by Dun & Bradstreet India. In recognition of
the Refinery's Annual Energy performance, MRPL received the 'Jawaharlal Nehru
Centenary Award for Energy Performance Refineries' for 2006-07, the fourth year
in succession.
In addition, the Company took structured initiatives for pursuing its
value-chain integration projects. The Company incorporated 'Mangalore
Petrochemicals Limited (MPL)' at Mangalore on 19th December, 2006 (later
rechristened as ONGC Mangalore Petrochemicals Limited) at an estimated cost of
about Rs. 48,520 million to produce Paraxylene, a value added product, using
Naphtha as feedstock from MRPL. ONGC holds 46% stake in the venture and MRPL
has another 3% stake. The Company promoted (holding 23% equity) yet another
Joint Venture (JV), 'ONGC Petro-additions Ltd. (OPaL)' to develop a mega
petrochemicals complex at Dahej. OPaL has been incorporated on 15th November,
2006.
The Company has also promoted a Joint Venture (JV) 'ONGC TERI Biotech Limited. OTBL)' in association with The Energy Research Institute (TERI) for addressing the requirements of Bioremediation, Microbial Enhanced Oil Recovery and Prevention of Wax Deposition in tubulars for its E&P operations.
The Company has taken structured initiatives to tap unconventional energy
sources like Coal Bed Methane (CBM) and Underground Coal Gasification (UCG).
Intensive CBM exploration is in progress in Jharkhand and Rajasthan.
Early production Pilot scheme has already been formulated in Jharia CBM Block. In addition, four new sites, one in South Gujarat and three in Rajasthan, have been taken up for UCG exploration in association with Neyveli Lignite Corporation Limited (NLC) and Gujarat Mineral Development Corporation Limited (GMDC). The Company is also setting up a state-of-the-art laboratory in collaboration with Indian Institute of Technology (IIT), Mumbai for UCG research.
ONGC Energy Centre Trust', dedicated towards holistic research in
non-conventional energy sources, has taken up three projects viz.,
thermo-chemical Reactor for Hydrogen, Geo-bio Reactors and Fuel Cells.
The employees of the Company (the ONGCians) gave a spectacular performance at
the 15th Asian Games held at Doha, Qatar during 28th November to 15th December,
2006. You may be proud to know that eight out of ten Gold medals won by India
in this edition of Asian Games have been contributed by the ONGCians. An
ONGCian, Shri Jaspal Rana, with three Gold medals, was ranked amongst the best
performers of these Games. Another ONGCian Shri Pankaj Advani has been
conferred 'Rajiv Gandhi Khel Ratna Award', the highest award of the country in
the field of games and sports, on 29th August, 2006.
You may be pleased to know that the Company, sensitive towards protection of
environment, is the first Central Public Sector Undertaking (CPSU) to register
two of its Clean Development Mechanism (CDM) Projects with United Nations
Framework Convention on Climate Change (UNFCCC), which will help mitigate
Climate Change. ONGC already has the rare distinction of having all its
operational installations accredited under Quality, Health, Safety &
Environment (QHSE) certifications.
1. FINANCIAL RESULTS:
The Company earned a Net Profit of Rs.156429.000 million (up 8.4%
from Rs.144308.000 million in 2005-06). In the process, it retained the distinction
of being the highest profit making Company of India.
During the year, the Company registered a gross revenue of Rs. 590575.000
million (up 19.5% from Rs. 494397.000 million in 2005-06), despite sharing
under-recoveries of Rs. 170239.000 million (Rs. 119565.000 million in 2005-06),
of the Public Sector Oil Marketing Companies by way of discounts in the price
of Crude Oil, Domestic LPG and PDS Kerosene (SKO), on administrative
instructions of the Ministry of Petroleum & Natural Gas (MoP&NG),
Government of India.
OIL
& GAS RESERVES
The Company has made voluntary disclosures in respect of Oil & Gas
reserves confirming to Reserves Categorisation procedure as specified by the
Society of Petroleum Engineers (SPE classification 1994) and in compliance with
the US Financial Accounting Standards Board (FASB) statement no. 69 for
disclosure of annual estimates of proven Oil & Gas reserves.
During the year, the Company has added 80.29 MMT of Ultimate Reserves (UR) of
Oil & Oil Equivalent Gas (O+OEG) from its domestic plus overseas assets
(OVL). The domestic accretion was 70.33 MMT of O+OEG; including ONGC's share in
JVs.
Statement of Reserve
Recognition Accounting:
1. The concept of RRA (Reserve Recognition Accounting) attempts to
recognize income at the point of discovery of reserves, and seeks to
demonstrate the intrinsic strength of an organization with reference to its
future earning capacity in terms of current prices for income as well as
expenditure. This information is based on the estimated net proved reserves
(developed and undeveloped) as determined by the Reserves Estimates Committee
(REC).
2. As per FASB-69 on disclosure about oil and gas producing activities,
publicly-traded enterprises that have significant oil and gas producing activities
are required to disclose with complete set of annual financial statements, the
following information, considered to be supplemental information:
a) Proved oil and gas reserve quantities;
b) Capitalised costs relating to oil and gas producing activities;
c) Cost incurred for property acquisition, exploration and development
activities;
d) Results of operations for oil and gas producing activities;
e) A standardized measure of discounted future net cash flows relating to
proved oil and gas reserve quantities.
FINANCIAL ACCOUNTING:
The Financial Statements have been prepared in accordance with the Generally
Accepted Accounting Principles (GAAP) and in compliance with all applicable
Accounting Standards (AS-1 to AS-29) and Successful Efforts Method as per the
Guidance Note on Accounting for Oil & Gas Producing Activities issued by
The Institute of Chartered Accountants of India (ICAI) and provisions of the
Companies Act, 1956.
SUBSIDIARIES
(i) ONGC Videsh Limited
(OVL):
ONGC Videsh Limited (OVL), the wholly-owned subsidiary of the Company for
overseas E&P activities, registered significant growth in 2006-07. Since
April 2006, OVL has acquired stakes in 9 projects in 6 countries, out of which
6 projects were acquired through participation in bidding rounds and 3 from the
existing concession holders. Out of the acquired projects, Mansarovar Energy
project in Colmbia acquired in partnership with Sinopec, China, is under
production, Block BC-10 in Brazil is under development and Area 43 in deepwater
Libya; Blocks 127 and 128 in deepwater Vietnam; Blocks 25, 26, 27, 28, 29 and
36; Blocks 34 and 35 in deepwater Cuba and OPL 279 and OPL 285 in deepwater
Nigeria acquired in the name of Joint Venture Company ONGC Mittal Energy Limited
(OMEL) are under exploration.
Sakhalin-1 project in Russia commenced export of crude oil from September, 2006
and peak production of over 2,50,000 BOPD was achieved in March, 2007 by the
consortium with OVL's share of 50,000 BOPD during the peak production. Crude
oil production from Block 5A in Sudan commenced in May, 2006. Further, the
consortium of Blocks A-1 and A-3 in Myanmar in which OVL holds 20% share, made
gas discoveries. The consortium of North Ramadan Block in Egypt, in which OVL
holds 70% share, made oil discovery. OVL also successfully completed drilling
of four wells including a high pressure complex gas well in Farsi Offshore
Block in Iran. The campaign resulted in discovery of oil and gas, the
assessment of which is currently under progress. This success has established
OVL as a credible global E&P operator.
OVL currently participates in 26 E&P projects in 15 countries namely
Vietnam (3 projects), Russia (1 project), Sudan (3 projects), Iran (1 project),
Iraq (1 project), Libya (4 projects), Myanmar (2 projects), Syria (2 projects),
Qatar (1 project), Egypt (1 project), Cuba (2 projects), Nigeria Sao Tome
Principe JDZ (1 project), Brazil (1 project), Nigeria (2 projects) through its
joint venture Company, ONGC Mittal Energy Limited (OMEL) and Colmbia (1
project). Out of the existing 26 projects, OVL is Operator in 10 projects and
Joint Operator in 2 projects in 9 countries.
OVL is currently producing oil and
gas from Greater Nile Oil Project and Block 5A in Sudan, Block 06.1 in Vietnam,
Al Furat project in Syria, Sakhalin-I project in Russia and Mansarovar Energy
Project in Colmbia. The Block BC-10 in Brazil is currently under development
with production expected to begin in 2009-10. The remaining projects are in
exploration/appraisal phase.
Contingent Liabilities
|
|
31.03.2007 (Rs. in
millions) |
31.03.2006 (Rs. in
millions) |
|
In respect of company : |
|
|
|
Income Tax Matters |
18363.940 |
22028.640 |
|
Excise Duty Matters |
2939.300 |
2823.140 |
|
Custom Duty Matters |
1437.470 |
1437.470 |
|
Royalty |
360.390 |
360.640 |
|
CESS |
1.490 |
87.850 |
|
AP mineral bearing lands (Infrastructure)
CESS |
364.020 |
129.610 |
|
Sales Tax |
831.490 |
693.140 |
|
Municipal Corporation |
80.800 |
84.500 |
|
Specified land tax (Assam) |
1046.380 |
735.760 |
|
Claims of contractors in Arbitration / Court |
17230.610 |
17989.500 |
|
In respect of other matters |
6170.590 |
6666.150 |
|
Sub Total |
48826.480 |
53036.400 |
|
|
|
|
|
In respect of Joint Ventures |
|
|
|
Income Tax Matters |
8.910 |
8.910 |
|
Custom Duty Matters |
5027.820 |
3818.370 |
|
Royalty |
240.040 |
240.040 |
|
CESS |
7.760 |
7.760 |
|
Sales Tax |
1926.800 |
1926.800 |
|
Claims of contractors in Arbitration / Court |
4946.890 |
5082.300 |
|
In respect of other matters |
0.000 |
68.450 |
|
Sub Total |
1307.110 |
14017.970 |
|
Total |
82291.810 |
67054.370 |
Fixed Assets
v
Freehold and Leasehold Land
v
Buildings and Bunk Houses
v
Railway Slidings
v
Plant and Machinery
v
Furniture and Fittings
v
Vehicles
v
Survey Ships
v
Crew Boats
v
Aircrafts and Helicopters.
Press Releases
ONGC gets United
Nations nod for 4th Clean Development Mechanism project and revenue of Rs 7.700
millions
May 24, 2008
Oil and Natural Gas Corporation Ltd.
(ONGC) has secured United Nations registration for its 4th Clean Development
Mechanism (CDM) project. ONGC is expected to earn a Green Revenue of Rs. 7.700
millions for this Project, thanks to the Certified Emission Reduction (CER)
points that would accrue for the next 10 years.
The United Nations Framework
Convention on Climate Change (UNFCCC) registered the Oil major’s project on
16th May, 2008 and communicated it on 19th May. The project - Flare Gas
Recovery Project at ONGC’s Gas Processing Complex at Hazira - involves reducing
gas flaring from the Hazira processing plant and qualifies for a CDM project
under the fuel substitution category, developed under the UNFCCC methodology
AM0037.
The project entails installation of a tail gas recovery system that recycles all the tail gases (sourced from control valves, pressure safety valves, fuel gas purge points, seal purge gas released from compressors and expanders and vessels) - which were hitherto led to the flare system - to put them back to the system to recover the valuable hydrocarbons and therefore reduce flaring to zero.
The expected annual accruable Certified Emission Reduction (CER) is 8793 for a sustained period of 10 years, equivalent to an annual earnings of around Rs 7.7 million of Green Revenue; these days, 1 CER draws 16 Euro on a conservative basis.
Notes for Editors:
ONGC's pursuit towards sustainable management is well documented and has earned the oil major many laurels. The registration of this project has arrived shortly after ONGC’s bagging the inaugural Earth Care Award on 22nd April, 2008. ONGC has the unique distinction of being the only central Public Sector Undertaking (PSU) in the country with four of its CDM projects registered with UNFCCC. The total annual accruable CER in ONGC’s kitty is now around 1.2 Lakh.
Sustainable Development is fast becoming a viable business model across the world. Developing CDM projects is just a part of the entire model, though a very alluring part. ONGC has realized its business potential like other global oil majors, and has undertaken many path-breaking initiatives in this area.
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 :
The 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.
The 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. 42.63 |
|
UK Pound |
1 |
Rs. 83.40 |
|
Euro |
1 |
Rs. 65.80 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
64 |
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/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 |
|
NR |
In view of the lack of information, they have no basis upon which to
recommend credit dealings |
No Rating |
|