MIRA
INFORM REPORT
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Report Date : |
03.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
CAIRN ENERGY INDIA PTY LIMITED |
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Formerly Known As : |
COMMAND PETROLEUM (INDIA) PTY LIMITED |
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Registered Office : |
Wellington Plaza, 2nd Floor, No. 90, Anna
Salai, Chennai – 600002, Tamilnadu |
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Country : |
India |
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Date of Incorporation : |
23.11.1994 |
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Legal Form : |
Foreign Registered Company |
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Line of Business : |
Manufacturer and Importer of Crude Oil and Gas. |
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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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Comments : |
Subject is a part of Cairn Energy PLC, UK a multinational and reputed company. Its financial position is satisfactory. Payments are usually correct and as per commitments. Your proposed business dealings of US $ 11000 can be considered against D/A, D/P or Clean Credit terms. |
LOCATIONS
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Registered Office : |
Wellington Plaza, 2nd Floor, No. 90, Anna Salai, Chennai – 600002, Tamilnadu, India |
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Tel. No.: |
91-44-28602860-28602913/28602893 |
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Mobile No.: |
91-9818174738 |
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Fax No.: |
91–44-28555310 |
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E-Mail : |
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Website : |
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Area : |
25000 sq. ft. [Rented] |
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Head Office : |
Cairn Energy Plc., 50, Lothian Road, Edinburgh, EH3
9BY, Scotland, U. K. |
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Tel. No.: |
91-131- 2475 3000 |
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Fax No.: |
91-131- 2475 3030 |
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E-Mail : |
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Branch Office : |
3rd and 4th Floors, Orchid Plaza, Sun City,
Sector – 54, Gurgaon – 122002, Haryana, India |
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Tel. No.: |
91-124-2414 1360 |
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Fax No.: |
91-124-2288 9320 |
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Branch Office : |
3, Rajdoot Marg, Chanakyapuri, New Delhi – 110021, India |
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Tel. No.: |
91-11-24670207 |
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Fax No.: |
91-11-24673595 |
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Branch Office : |
IDB Bhaban 9th Floor, E/8A
Rokeya Sharani, Sher-E-Bangla Nagar, Agargaon |
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Tel. No.: |
+880 2 812 7387 |
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Fax No.: |
+880 2 812 5744 |
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Branch Office : |
House No.66, Hitaisi
Marg, Ward No.4, Baluwater, Kathmandu, Nepal |
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Branch Office : |
12, Bhanwani House, Old Residency Road, Jodhpur - 342011,
Rajasthan, India |
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Branch Office : |
Maharaja Hari Singh Nagar, Near 'Hotel Taj Hari Mahal',
Jodhpur 342 011, Rajasthan |
DIRECTORS
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Name : |
Mr. A. F. Batley |
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Designation : |
Director |
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Name : |
Mr. B. H. McCarthy |
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Designation : |
Director |
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Name : |
Mr. K. Willis |
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Designation : |
Director |
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Name : |
Mr. Richard Paces |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Bill Gammell |
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Designation : |
Chief Executive Officer – Based at Edinborough, England |
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Name : |
Mr. Eric Tucker |
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Designation : |
General Manager (Assets) |
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Name : |
Mr. Rich Paces |
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Designation : |
General Manager (Based at Chennai, in Tamilnadu) |
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Name : |
Mr. Bruce McCarthy |
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Designation : |
President India (Based at Chennai, in Tamilnadu) |
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Name : |
Mr. Alan Linn |
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Designation : |
President India – Based at Madras |
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Name : |
Mr. Tony Metclafe |
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Designation : |
General Manager (Finance) (Will be based at Chennai, in Tamilnadu till March) |
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Name : |
Mr. John Mc Neil |
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Designation : |
General Manager (Technical) |
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Name : |
Mr. P. Elango |
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Designation : |
Deputy General Manager (Assets) |
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Name : |
Mr. Bill Gammel |
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Designation : |
Chief Executive Officer |
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Address : |
Edinburgh, Scotland, England |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Importer of Crude Oil and Gas. |
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Imports : |
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Countries : |
USA, Singapore, Korea, UK and Belgium |
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Terms : |
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Purchasing : |
L/C |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
202 |
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Bankers : |
The Hongkong and Shanghai Banking Corporation Limited, 30,
Rajaji Salai, Chennai – 600 001, Tamilnadu, India. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Ř Ernst & Young Chartered Accountants Ten George Street, Edinburgh EH2 2DZ, UK Ř Arthur Andersen Associates Chartered Accountants New Delhi, India. Ř Price Waterhouse Chartered Accountants Chennai,
Tamilnadu, India. |
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Holding Company : |
Cairn Energy PLC, UK |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Not Available
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
[as at 31st
December 2006]
|
PARTICULARS |
Group
2006 $’
000 |
Group
2005 $’
000 |
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Non-current
assets |
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Intangible exploration / appraisal assets |
419,239 |
321,855 |
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Property, plant and equitable – development / producing assets |
394,010 |
456,929 |
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Property, plant and equipment – other |
5,891 |
4,158 |
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Intangible assets – other |
6,724 |
2,601 |
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Investments |
96 |
96 |
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Deferred tax assets |
18,911 |
2,606 |
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844,871 |
788,245 |
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Current assets |
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Inventory |
4,615 |
5,533 |
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Trade and other receivables |
218,159 |
124,725 |
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Bank deposits |
0 |
20,000 |
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Cash and cash equivalents |
856,266 |
75,509 |
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1,079,040 |
225,767 |
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Total Assets |
1,923,911 |
1,014,012 |
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Current
Liabilities |
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Trade and other payables |
897,232 |
94,736 |
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Obligations under finance leases |
1,380 |
0 |
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Provisions |
6,845 |
0 |
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Derivative financial instruments |
9,694 |
0 |
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Income tax liabilities |
6,064 |
7,550 |
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921,215 |
102,286 |
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Non current
liabilities |
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Loans and borrowings |
155,000 |
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Obligations under finance leases |
3,092 |
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Provision |
24,740 |
17,456 |
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Deferred tax liabilities |
138,694 |
136,672 |
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321,526 |
154,128 |
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Total
liabilities |
1,242,741 |
256,414 |
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Net assets |
681,170 |
757,598 |
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Equity |
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Called up share capital |
25,870 |
25,775 |
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Share premium |
201,019 |
197,895 |
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Share held by ESOP Trust |
[55,756] |
[37,311] |
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Foreign Currency translation |
2,798 |
[7,927] |
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Other reserves |
37,284 |
37,284 |
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Capital reserves - non distributable |
45,331 |
45,331 |
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Capital reserves - distributable |
178,429 |
178,429 |
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Retained earnings |
246,195 |
318,122 |
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Total equity
attributable to the equity holders |
681,170 |
757,598 |
GROUP
INCOME STATEMENT
[For
the year ended 31st December 2006]
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PARTICULARS |
Group
2006 $’
000 |
Group
2005 $’
000 |
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Revenue |
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Cost of sales |
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Production costs |
[56,931] |
[50,235] |
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Unsuccessful exploration costs |
[62,018] |
[26,867] |
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Depletion and Decommissioning charges |
[103,487] |
[91,740] |
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Gross Profit |
63,868 |
93,720 |
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Other operating income |
3,340 |
3,116 |
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Administrative expenses |
[60,323] |
[41,204] |
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Exceptional impairment of oil and gas assets |
[71,455] |
-- |
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Exceptional Gain on sale of oil and gas assets |
-- |
15,272 |
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Operating profit /
[loss] |
[64,570] |
70,904 |
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Finance Income |
4,603 |
32,543 |
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Finance Costs |
[30,609] |
[2,236] |
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[Loss] / Profit
before taxation |
[90,576] |
101,211 |
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Taxation credit
/ [expenses] on [loss] / profit |
8,559 |
[22,139] |
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[Loss] / profit for
the year attributable to the equity holders of the parent |
[82,017] |
79,072 |
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Earnings per
ordinary share – basis [cents] |
[52.02] |
50.37 |
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Earning per
ordinary share – diluted [cents] |
[52.02] |
50.10 |
LOCAL AGENCY
FURTHER INFORMATION
INTRODUCTION
Cairn Energy India Pty Limited (CEIL) is holding a joint
venture (JV) license for exploring oil and gas from the Ravva Oil Field offshore
block (Ravva) in the Krishna-Godavari Basin off the east coast of India under a
Production Sharing Contract (PSC) with Government of India. As per the PSC,
CEIL is the Operator for this JV. The JV parties and their participating
interests are CEIL (22.5%), ONGC (40%), Videocon Petroleum Limited (25%) &
Ravva Oil (S’Pore) Pte Limited (12.5%). CEIL, as the Operator of Ravva, is
engaged in production and development of hydrocarbons from the known Ravva
Field and also has the objective of finding further commercial reservoirs
within the boundaries of the permit.
JV is committed to publicly disclosing its information
about the project, potential impacts and compensation and mitigation measures
following its own corporate commitment, international best practices as well as
the International Finance Corporation’s (IFC) guidelines on developing a Public
Consultation and Disclosure Plan (PCDP). This document describes the JV’s
ongoing stakeholder engagement as well as the proposed consultation and disclosure
programme to be undertaken through the project life cycle.
TRADE TERMS WITH :
- Hyundai Heavy Industries Company Limited, Ulsan, Korea
- Vetco Gray Pte Limited, Benoi Road, Singapore
- Hunting Oil Field Services, Aberdeen AB1 4YB, UK
- Mustang Engineering Inclusive, Park Ten Place, Houston, Texas
PRESS RELEASES :
JINDAL SAW BAGS $200 MN ORDER
FROM CAIRN ENERGY INDIA
PTI
Tuesday,
January 29, 2008 14:18 IST
MUMBAI:
Pipe manufacturer Jindal Saw on Tuesday said it has secured $200-million order
from Cairn Energy India Pty Limited for supplying line pipes, tracer tube,
insulation and bends for latter's Barmer Salaya Pipe Line (BSPL) project.
Jindal
Saw has received the Letter of Award regarding the project from Cairn Energy
India and the value of the award is more than $200 million, the company said in
a communique to the Bombay Stock Exchange.
The
pipeline, which would be jointly owned by Cairn in partnership with Oil and
Natural Gas Corporation (ONGC) would be used to transport heavy crude oil from
their oil fields in Mangala in north west India to a terminal in Salaya a
distance of around 600 kilometres.
The
project involves supply of LSAW line pipes for worlds' longest underground
pre-insulated heat traced pipeline to transport waxy and heavy crude which
otherwise solidifies at ambient temperature.
The
company would execute this order from May, 2008 to December, 2008, Jindal Saw
added.
Jindal
Saw would manufacture and fabricate the pipes, while the insulating and jacketing
work would be performed by Perma Pipes, a subsidiary of MFRI Inc. It would also
source 8" ERW pipe from other suppliers.
With
this order, the total order book of JSL exceeds one billion dollars (around Rs
40000 Millions).
Shares
of the company were trading at Rs 910, down 0.02 per cent on the BSE in
afternoon trade.
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 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
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Indian Rupees |
|
US Dollar |
1 |
Rs.39.92 |
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UK Pound |
1 |
Rs.79.31 |
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Euro |
1 |
Rs.60.63 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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