MIRA INFORM REPORT

 

 

 

Report Date :

07.11.2008

 

IDENTIFICATION DETAILS

 

Name :

HINDUSTAN PETROLEUM CORPORATION LIMITED

 

 

Registered Office :

Petroleum House, 17, Jamshedji Tata Road, Mumbai – 400020, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

05.07.1952

 

 

Com. Reg. No.:

11-8858

 

 

CIN No.:

[Company Identification No.]

L23201MH1952GOI008858

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUM07045D

 

 

PAN No.:

[Permanent Account No.]

AAACH11118B

 

 

Legal Form :

Public Limited Liability Company. The company’s shares are listed on the stock exchanges.

 

 

Line of Business :

Manufacturing and Marketing of Petroleum Fuel and Lube Products, Lubricating Oils, Textile Auxiliaries, Hydraulic Brake Fluid, Insecticides and Greases

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

 

 

 

Maximum Credit Limit :

USD 500000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a globally renowned Fortune 500 Company, owned by the Government of India, engaged in refining and marketing of Petroleum Products.

 

 Financial position of the company is good. Payments are correct and as per commitments.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office/ Factory :

Petroleum House, 17 Jamshedji Tata Road, Mumbai – 400 020, Maharashtra, India

Tel. No.:

91-22-22026151

Fax No.:

91-22-22872992/ 22841573/ 22872992

E-Mail :

corphqo@hpcl.co.in

nrnarayanan@hpcl.co.in

Website :

http://www.hindpetro.com

http://www.hindustanpetroleum.com

Telex :

82414 / 85096

 

 

Marketing Office :

Hindustan Bhavan, 8, Shoorji Vallabhdas Marg, P. B. No. 155, Ballard Estate, Mumbai – 400 038, Maharashtra, India

Tel. No.:

91-22-22618031

Fax No.:

91-22-22611822

 

 

Refinery :

Mumbai

B.D. Patil Marg, Chembur, Mumbai – 400 074, Maharashtra, India

 

Vishakhapatnam

Post Box No. 15, Vishakhapatnam – 530 001, Andhra Pradesh, India

 

 

Zonal Offices :

East Zone

6 Church Lane, Post Box No. 146, Kolkata – 700 001, West Bengal, India

 

West Zone

R and C Building, Sir J. J. Road, Byculla, Mumbai – 400 008, Maharashtra, India

 

North Zone

6th and 7th Floor, Core 1 and 2, North Tower, Scope Minar, Laxmi Nagar, New Delhi – 110 001, India

 

South Zone

Thalamuthu Natarajan Building, 4th Floor, 8 Gandhi Irwin Road, Post Box No. 3045, Egmore, Chennai – 600 008, Tamil Nadu, India

 

DIRECTORS

 

Name :

Mr. M. B. Lal

Designation :

Chairman and Managing Director

Qualification :

B.E. (Chem), PGDBM (IIM Ahmedabad)

Other Directorship :
  • GGSRL
  • HINCOL
  • PIL
  • Bhagyanagar Gas Limited

 

 

Name :

Mr. D. S. Mathur

Designation :

Director [Refineries] [Till 31.05.2005]

Qualification :

B.Tech, M.Sc, PGDPE

Other Directorship :
  • GGSRL

 

 

Name :

Mr. Arun Balakrishnan

Designation :

Director [Human Resources] (From 01.04.2007)

Qualification :

B.E.(Chem.), PGDBM (IIM) Bangalore

Other Directorship :
  • HINCOL
  • Prize Petroleum Company Limited
  • SALPG Company Private Limited

 

 

Name :

Mr. M. S. Srinivasan

Designation :

Director [Till 20.06.2005]

Qualification :

B.Tech (Civil), Master of Public Administratin, IAS

Other Directorship :
  • IOC
  • BPCL

 

 

Name :

Mr. T. L. Sankar

Designation :

Director

Qualification :

M.Sc. (Chemistry), MA (Dev.Eco.), IAS

Other Directorship :
  • Rain Calcining Limited
  • KSK Energy Ventures Limited
  • GGSRL
  • Delhi Power Company Limited
  • Small Scale Sustainable Infrastructure Development Board

 

 

Name :

Mr. Raja G. Kulkarni

Designation :

Director [Till 02.03.2006]

Qualification :

M.A.(Economics)

 

 

Name :

Mr. Rajesh V. Shah

Designation :

Director

Qualification :

Degree in Mathematics, MBA

Other Directorship :
  • Mukand Limited, Mukand Engineers Limited
  • Mukand International Limited
  • Fusion Investments and Financial Services Limited
  • Catalyst Finance Limited
  • Conquest Investments and Finance Limited
  • Kalyani Mukand Limited
  • Bengal Port Limited
  • Jeewan Limited
  • India Thermal Power Limited
  • ONGC

 

 

Name :

Mr. P. K. Sinha

Designation :

Director [From 01.03.2006]

 

 

Name :

Mr. Prabh Das

Designation :

Director [From 03.05.2005]

 

 

Name :

Mr. C. Ramulu

Designation :

Director [Finance] [from 14.08.2003]

Qualification :

CA, ACS, MBA

Other Directorship :
  • MRPL
  • PIL
  • Petronet MHB Limited
  • Prize Petroleum Company Limited
  • GGSRL
  • HINCOL
  • SALPG Company Private Limited

 

 

Name :

Mr. C. B. Singh

Designation :

Director [Till 28.02.2006]

 

 

Name :

Mr. S. Roy Choudhury

Designation :

Director – Marketing

 

 

Name :

Mr. M. Nandagopal

Designation :

Director

Qualification :

B.Sc.(Agriculture)

Other Directorship :
  • Mohan Breweries and Distilleries Limited
  • Thirumugal Mills Limited
  • Artos Breweries Limited
  • S V Sugar Mills Limited
  • Vestas RRB India Limited
  • Mira Textiles and Industries (India) Limited
  • Global Housing Finance Corporation Limited
  • Binny Engineering Limited
  • Mysore Fruit Products Limited
  • Clean Power Limited
  • Sagar Sugars and Allied Products Limited
  • Binny Limited

 

 

Name :

Mr. I. M. Pandey

Designation :

Director [From 09.12.2005]

 

 

Name :

Mr. M. A. Tankiwala

Designation :

Director – Refineries [From 01.06.2005]

 

 

Name :

Mr. S. K. Mukherjee

Designation :

Executive Director - Safety, Health & Environment

 

 

Name :

Mr. K. Murali

Designation :

Executive Director - R & D

 

 

Name :

Mr. S. P. Chaudhry

Designation :

Executive Director- Retail

 

 

Name :

Mr. S. K. Biswas

Designation :

Executive Director - Projects & Pipelines

 

 

Name :

Mr. A. K. Bhide

Designation :

Executive Director - Corporate Finance

 

 

Name :

Mr. G. A. Shirwaikar

Designation :

Executive Director – LPG

 

 

Name :

Mr. V. Vizia Saradhi

Designation :

Executive Director - Industrial Relations

 

 

Name :

Mr. S. V. Sahni

Designation :

Executive Director-Central Engineering(Refineries)

 

 

Name :

Mr. D. K. Deshpande

Designation :

Executive Director- Mumbai Refinery

 

 

Name :

Mr. K. R. Shankaran

Designation :

Executive Director *

 

 

Name :

Mr. K. S. R. Prasad

Designation :

Executive Director - Internal Audit & JVC’s

 

 

Name :

Mr. A. B. Sathe

Designation :

Executive Director- International Trade & Supplies

 

 

Name :

Ms. Nishi Vasudeva

Designation :

Executive Director – IT & ERP

 

 

Name :

Mr. B. Mukherjee

Designation :

Executive Director- HRD

 

 

Name :

Mr. A. S. Rao

Designation :

Executive Director - Visakh Refinery

 

 

Name :

Mr. L. N. Gupta

Designation :

Director

 

KEY EXECUTIVES

 

Name :

Mr. B. R. Mandal

Designation :

Chief Vigilance Officer

 

 

Name :

Mr. N. R. Narayanan

Designation :

Company Secretary

 

 

Name :

Mr. A. S. Tulaskar

Designation :

General Manager – RCD

 

 

Name :

Mr. S. M. Palav

Designation :

General Manager- Information Technology (Marketing)

 

 

Name :

Mr. A. B. Thosar

Designation :

General Manager- Pipelines

 

 

Name :

Mr. O. P. Pradhan

Designation :

General Manager - Corporate Planning & Strategy

 

 

Name :

Mr. R. Sudhakara Rao

Designation :

General Manager- Lubes

 

 

Name :

Mr. P. A. B. Raju

Designation :

General Manager - Operations, Visakh Refinery

 

 

Name :

Mr. B. K. Namdeo

Designation :

General Manager- Central Engineering (Refineries)

 

 

Name :

Mr. S. P. Gupta

Designation :

Financial Controller

 

 

Name :

Mr. K. V. Rao

Designation :

General Manager- Finance, Visakh Refinery

 

 

Name :

Mr. B. Gururajan

Designation :

General Manager - South Zone

 

 

Name :

Mr. M. S. Damle

Designation :

General Manager-West Zone

 

 

Name :

Mr. A. B. Pai

Designation :

General Manager - East Zone

 

 

Name :

Mr. Sandeep Joseph

Designation :

General Manager - HR (Special Activities)

 

 

Name :

Mr. G. Hariharan

Designation :

General Manager- Legal

 

 

Name :

Mr. Y. KGawali

Designation :

General Manager-O and D

 

 

Name :

Mr. S. C. Mehta

Designation :

General Manager-Operations, Mumbai Refinery

 

 

Name :

Mr. S. K. Savla

Designation :

General Manager- Engineering and Projects

 

 

Name :

Mr. Rakesh Kumar

Designation :

General Manager-Treasury, Payroll and Reimbursement

 

 

Name :

Mr. S. Y. Narvekar

Designation :

General Manager- Industrial and Consumer Sales

 

 

Name :

Mr. C. S. Krishnaswamy

Designation :

General Manager - Quality Control and R and D

 

 

Name :

Mr. D. M. Sabale

Designation :

General Manager-Safety Health and Environment

 

 

Name :

Mr. P. Rajendran

Designation :

Genera! Manager - M R A and P

 

 

Name :

Mr. S. T. Sathiavageeswaran

Designation :

General Manager - ERP

 

 

Name :

Mr. M. V. Sreeram

Designation :

General Manager-IT(Corporate)

 

 

Name :

Mr. R. Ganesan

Designation :

General Manager-Tax

 

 

Name :

Mr. V. S. Rao

Designation :

General Manager-Technical, VR

 

 

Name :

Mr. D. Khota

Designation :

General Manager- Project ACE

 

 

Name :

Mr. V. Jagannathan

Designation :

General Manager - Spl. Assignment, VR

 

 

Name :

Mr. K. Srinivasan

Designation :

General Manager-Projects, MR

 

 

Name :

Mr. R. M. N. Marar

Designation :

General Manager- Projects, VR

 

 

Name :

Mr. T. K. Kalyanaraman

Designation :

General Manager

 

 

Name :

Mr. A. V. Sarma

Designation :

Genera! Manager

 

 

Name :

Mr. R. K. Gupta

Designation :

General Manager

 

 

Name :

Mr. Rajan K. Pillai

Designation :

General Manager

 

 

Name :

Mr. S. P. Gupta

Designation :

Deputy General Manager - Aviation

 

 

Name :

Mr. Ajit Singh

Designation :

Deputy General Manager (I/C)- Delhi Coordination Office

Name :

Mr. Rakesh Misri

Designation :

Deputy General Manager (I/C), North Zone

 

 

Name :

Mr. L. M. Motwani

Designation :

Deputy General Manager – PR and CC

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(As on 05.09.2008)

Names of Shareholders

No. of Shares

Percentage of Holding

President of India

173076750

51.11

Financial Institutions

65102002

19.23

FIIs / OCBs

45327571

13.39

Banks

355188

0.10

Mutual Funds

17752124

5.24

NRIs

1056610

0.31

Employees

394565

0.12

Others

35562440

10.50

Total

338627250

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Marketing of Petroleum Fuel and Lube Products, Lubricating Oils, Textile Auxiliaries, Hydraulic Brake Fluid, Insecticides and Greases.

 

 

Products:

Item Code No. (ITC Code)

2710

Product Description

Bulk Petroleum Products

 

 

Item Code No. (ITC Code)

271000.41/61

Product Description

Lubricants

 

 

Item Code No. (ITC Code)

290122.00

Product Description

Propylene

 

 

Exports :

 

Countries :
  • Naphtha
  • Sri Lanka
  • Malaysia
  • Saudi Arabia
  • Singapore
  • Japan
  • Bangladesh
  • Nepal

 

 

Imports :

 

Countries :
  • Saudi Arabia
  • Abu Dhabi [Crude Oil]

 

 

Terms :

 

Selling :

L/C, Cash or Credit (30 days)

 

 

Purchasing :

L/C or Credit (30 days)

 

GENERAL INFORMATION

 

Suppliers :
  • Pyro Electric Instruments
  • S.K.M.L. Enterprises
  • Newage Industries
  • M. Sagar
  • Kevin Enterprises Private Limited
  • Sri Manoj Electrical Works
  • K.V. Fire Chemicals, India
  • Sri Trinadha Electrical Works,
  • Joseph Leslie Drager Manufacturing Private Limited
  • Levcon Institute Private Limited
  • Gaskets (India) Private Limited
  • Chemtrols Engineering Limited
  • Exprotecta
  • Remi Process Plant and Machinery
  • Shanmuka Engineering Works
  • Sri Balaji Associates
  • Eby Fasteners
  • Packings and Jointings Gasket
  • CDC Carboline India Private Limited
  • Southern Gasket Products K. Dey and Company
  • IGP Engineers Private Limited
  • Hydro-Pneumatics
  • Madras Industrial Products
  • Dembla Valves Private Limited
  • Goodrich Gasket (Private) Limited
  • H. Guru Industries
  • Sebim Valves India Private Limited
  • A.N. Instruments Private Limited
  • Virgo Engineers Limited
  • Jayalakshmi Engineering Con
  • Floway Valves Private Limited
  • Precision Engineering Works
  • J R U Controls Private Limited
  • Coastal Ammonia Private Limited
  • Gujarat Infrapipes Private Limited
  • Associated Suppliers
  • M.S. Fittings Manufacturing
  • Prime Mover Governor Services
  • A.V. Valves Limited
  • Sriram and Company
  • Econo Valves Private Limited
  • Xtechs
  • Chaudhry Hammer Works Private Limited
  • Coromandel Paints and Chemicals
  • Flash Forge Private Limited
  • Geetha Enterprises
  • Swaran Singh aand Company
  • Rao Welding Works
  • President Engineering Works
  • Leak Stop Experts
  • Multithread Fasteners
  • Precision Management Council
  • AEP Company
  • Ncon Turbo Tech (Private) Limited
  • PTD Fasteners Private Limited
  • Gangotri Turbo Tech Engineering
  • Nireka Engineering and Company Private Limited,
  • Modern Electrical Works
  • Mahalakshmi Engineers
  • Sri Gajalakshmi Industries
  • Pavani Enterprises
  • Voltamp Transformers Private Limited
  • Gopal Engineering Works
  • Waaree Instruments Limited
  • Pravasi Enterprises
  • Ganesh Engineering Works
  • Mastan Engineering Works
  • Sabari Engineering Contract
  • S Tas Engineering Company Private Limited
  • Usha Engineering Works
  • Technika
  • Sri Sanari Electrical and Engineering
  • Global Enterprises
  • Shiva Jyothi Enterprises
  • M. Someswara Rao
  • Sri Ganesh Ele and Rewinding
  • Ramakrishna Electrical Wind
  • S. Venkata Rao
  • Prathyusha Safety Manufacturing Company
  • United Electrical and Rewinding
  • Pipefit Engineers
  • S.K. Ahmed
  • Sohan Engineering Enterprises
  • Inmacro
  • Cartal Technical Services

 

 

Customers :
  • Retailers
  • End Users
  • OEM’s

 

 

No. of Employees :

11088

 

 

Bankers :

·         State Bank of India, Mumbai, Maharashtra, India

·         Union Bank of India, Mumbai, Maharashtra, India

·         Punjab National Bank, Mumbai, Maharashtra, India

·         Bank of Baroda, Mumbai, Maharashtra, India

·         Standard Chartered Bank, Mumbai, Maharashtra, India

·         Bank of India, Mumbai, Maharashtra, India

·         Citibank N.A., Mumbai, Maharashtra, India

·         Corporation Bank, Mumbai, Maharashtra, India

·         ICICI Bank

·         HDFC Bank

 

 

Facilities :

Particulars

31.03.2008

Rs. in Millions

Secured Loans

 

i. Collateral borrowing and landing obligation (secured by pledge on oil bonds)

 

ii. Overdrafts from Banks

(secured by hypothecation of stock-in-trade)

6050.000

 

 

5134.800

 

Total

11184.800

 

 

Unsecured Loans

 

Fixed Deposits

Clean loans from banks

(Due for repayment within one year – Rs.92000.000 millions)

 

Short term loans from banks

(Repayable in foreign currency)

(Due for repayment within one year – Rs.37381.300 millions)

 

Term loan from oil industry development board

(Due for repayment within one year Rs.4500.000 millions)

 

Syndicated loans from foreign banks

(Repayable in foreign currency)

(Due for repayment within one year – Rs. Nil)

0.200

92000.000

 

 

 

37381.300

 

 

 

 

10750.000

 

 

 

16550.700

 

 

Total

156682.200

 

 

 

Banking Relations :

Good

 

 

Auditors :

 

Name :

Statutory Auditors

V. Sankar Alyar and Company

Chartered Accountants

 

Sudit K. Parekh and Company

Chartered Accountants

Mumbai

 

Branch Auditors

Grandhy and Company

Chartered Accountants

MIG – 36, D No. 4-68-1/4, Lawsons Bay Colony, Visakhapatnam – 530017, India

 

 

Associates :
  • Hindustan Colas Limited
  • South Asia LPG Company Private Limited
  • Prize Petroleum Company Limited
  • Mangalore Refinery and Petrochemicals Limited
  • Bhagyanagar Gas Limited
  • Petronet India limited
  • Petronet MHB Limited
  • Aavanitika Gas Limited
  • HPCL_- Mittal Energy Limited

 

 

Subsidiaries :

Guru Gobind Singh Refineries Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

75000

Preference shares

Rs.100/- each

Rs.7.500 millions

349250000

Equity Shares

Rs.10/- each

Rs.3492.500 millions

 

 

 

 

 

Total

 

Rs.3500.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

339330000

Equity Shares

Rs.10/- each

Rs.3393.300 millions

 

Less: Shares Forfeited during the years

 

Rs.7.000 Millions

338627250

Equity Shares

Rs.10/- each

Rs.3386.300 Millions

 

Add: Shares Forfeited

 

Rs.3.900 millions

 

 

 

 

 

Total

 

Rs.3390.100 millions

 

NOTES:-

 

(1) 77,50,000 fully paid up equity shares of Rs.10/- each were allotted to the shareholders of Lube India Limited on the amalgamation of that company for consideration other than cash.

 

(2) 52,00,000 fully paid up equity shares of Rs.10/- each were allotted to the President of India, for consideration other than cash, on the amalgamation of Caltex Oil Refining India Limited with the Corporation.

 

(3) 26,44,30,000 equity shares of Rs.10/- each were allotted as fully paid bonus shares by capitalisation of Capital Reserve, Capital Redemption Reserve and accumulated profits.

 

(4) During the current year Company has forfeited 7,02,750 shares issued as a part of the public issue in 1994-95, due to non receipt of allotment and/or call money from shareholders. Accordingly, the paid up share capital has been reduced from Rs.3393.300 Millions to Rs.338.63 Millions.

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2008

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

3390.100

3389.500

3389.400

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

102242.800

92597.000

83968.000

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

105632.900

95986.500

87357.400

LOAN FUNDS

 

 

 

1] Secured Loans

11184.800

10054.800

14861.600

2] Unsecured Loans

156682.200

95120.500

51776.700

TOTAL BORROWING

167867.000

105175.300

66638.300

DEFERRED TAX LIABILITIES

15959.800

14209.000

13844.400

 

 

 

 

TOTAL

289459.700

215370.800

167840.100

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

119292.900

88208.400

73374.000

Capital work-in-progress

33159.500

42435.600

23638.800

 

 

 

 

INVESTMENT

68370.500

71274.700

40276.400

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
120202.800
80984.000
78102.900

 

Sundry Debtors
17106.600
15777.800
13922.600

 

Cash & Bank Balances
2940.100
867.900
425.900

 

Other Current Assets
494.600
923.300
113.800

 

Loans & Advances
52229.600
16094.000
17534.600

Total Current Assets
192973.700
114647.000

110099.800

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Current Liabilities
118933.700
88917.700
73947.400

 

Provisions
5403.200
12277.200
5601.500

Total Current Liabilities
124336.900
101194.900

79548.900

Net Current Assets
68636.800
13452.100
30550.900

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

289459.700

215370.800

167840.100

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Sales Turnover

964429.200

835711.400

727753.300

Other Income

94588.100

61546.300

0.000

Total Income

1059017.300

897257.700

 727753.300

 

 

 

 

Profit/(Loss) Before Tax

11086.700

19611.100

2851.000

Provision for Taxation

(262.100)

3899.400

(1205.300)

Profit/(Loss) After Tax

11348.800

15711.700

4056.300

 

 

 

 

Export Value :

NA

NA

32713.900

 

 

 

 

Import Value

NA

NA

200628.200

 

 

 

 

Expenditures :

 

 

 

 

Administrative Expenses

21055.200

15647.200

14377.900

 

Raw Material Consumed

356904.300

358167.900

254502.900

 

Purchases made for re-sale

622059.400

468502.200

421781.200

 

Packages Consumed

1119.100

1051.100

959.900

 

Excise duty on inventory differential

3907.700

454.000

1770.000

 

Salaries, Wages, Bonus, etc.

8676.600

7294.200

6414.900

 

Depreciation & Amortization

8508.200

7040.000

6902.300

 

Other Expenditure

25700.100

19490.000

18193.200

Total Expenditure

1047930.600

877646.600

724902.300

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2008

1st Quarterly

Sales Turnover

 

 

347493.200

Other Income

 

 

1678.800

Total Income

 

 

349172.000

Total Expenditure

 

 

351603.000

Operating Profit

 

 

(2431.000)

Interest

 

 

4063.700

Gross Profit

 

 

(6494.700)

Depreciation

 

 

2366.500

Tax

 

 

20.000

Reported PAT

 

 

(8881.200)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2008

31.03.2007

31.03.2006

Debt-Equity Ratio

 
1.35

0.94

0.52

Long Term Debt-Equity Ratio

 
1.00

0.69

0.27

Current Ratio

 
0.94

0.88

0.94

TURNOVER RATIOS

 
 
 

 

Fixed Assets

 
6.42

6.71

5.99

Inventory

 
11.23

12.28

11.49

Debtors

 
68.73

65.75

63.49

Interest Cover Ratio

 
2.66

5.65

2.62

Operating Profit Margin(%)

 
2.62

3.17

1.49

Profit Before Interest And Tax Margin(%)

 
1.86

2.45

0.59

Cash Profit Margin(%)

 
1.88

2.33

1.41

Adjusted Net Profit Margin(%)

 
1.13

1.61

0.52

Return On Capital Employed(%)

 
8.87

13.46

3.54

Return On Net Worth(%)

 
12.61

17.14

4.72

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

 

A corporation, relating with the business of oil refining and marketing is known as subject from the year 1974. Before it was called as Standard Vacuum Refining Company, then it was ESSO India, When ESSO and Lube India were nationalised, the company was renamed to company. A Fortune 500 company is one of the major integrated refining and marketing oil company in India. It is a mega Public Sector Undertaking (PSU) with Navratna status. The corporation accounts 10.3% of the nation's refining capacity with two coastal refineries in West and East costs. The West Coast at Mumbai having a capacity of 5.5 MMTPA and the other East Coast in Vishakapatnam with a capacity of 7.5 MMTPA. HPCL also owns and operates the country's largest Lube Refinery, producing Lube Base Oils (LOB) of international standards. With a capacity of 335,000 Metric Tonnes. This refinery accounts for over 40% of the country's total Lube Base Oil production. Add to this, company have a joint venture refinery at Mangalore, two cross country pipelines and an extensive network of terminals, depots, bottling plants and aviation servicing facilities.  

 
The Caltex undertaking was nationalized in the year 1976, which were subsequently merged with the company in the year 1978. In the following year, the undertakings of Kosan Gas Company, the concessionaires of company in the domestic LPG market, was merged with the company. The 'Guru Gobind Singh Refineries' was incorporated on December 2000 as a wholly owned subsidiary of the company. The company has completed the Rs.3780.000 Millions pipeline project from Vijayawada to Secunderabad, which was commissioned on March 2002. The new LPG Bottling plant at a capacity 44 TMTPA was set up in Kota. The company has implemented 15 company tank trucks in the year 2004. During the year 2004-2005 the company has completed its construction of a new grassroot depot at Aonla, Bareilly and Uttarpradesh with total cost of Rs.102.500 Millions. The company has also completed its construction of another new grassroot depot at Ramagundam, Andhra Pradesh at a total cost of Rs.114.700 Millions. The depot has 7974 KL tankage for MS, HSD and SKO together with product receipt through railway tank wagons from Vijayawada terminal. Further the company has commissioned a total of 13100 KL additional tankage at various locations during the year.  

 
The company has branded its retail outlets under the name 'CLUB HP' and also launched 'Turbojet' branded diesel and the 'Power' branded petrol in India. During the year 2005-2006, the company's Mumbai Refinery has undertaken mega project at an approved cost of Rs.18500.000 Millions to meet the MS/HSD of EURO-III grade in Metro/Mega cities and Bharat stage-II grade in the rest of the country and the Visakh Refinery has undertaken Clean Fuel Project at an approved cost of Rs.21478.000 Millions to meet the MS/HSD of Euro-III grade in Metro-Mega cities and Bharat-II grade in the rest of the country. The company commissioned 647 Retail Outlets during the year 2005-06. 

 
Company received Golden Peacock Award for Excellence in Corporate Governance for the year 2003, 2006 and also 2007. The company has been awarded Forecourt Retailer of the year 2007 Award for the second consecutive year from 2006. CIO 100 award has been instituted in India since 2006. Company was the recipient of this award in the inaugural year too. `CIO 100 Award 2007' was conferred on company for `Project Parivartan' and "ENCON Award 2007" through Visakh Refinery, bagged the coveted First Prize for Energy Conservation in Petroleum Refining Sector for the year 2007 given by Bureau of Energy efficiency, Ministry of Power, Govt. of India. Company’s Palam Aviation Service Facility (ASF) has been awarded the `Environment Excellence Award' by Greentech Foundation. The company Awarded Reader's Digest "Trusted Brand Gold Award" for the year 2007 in recognition of Club HP Brand. The Trusted Brand Survey conducted by M/s AC Nielsen in seven Asian markets including India.  

 
The corporation is setting up New Fluidized Catalytic Cracking Unit (FCCU) at Mumbai Refinery. The scope of Project includes installation of new FCCU of 1.456 MMTPA with Gas concentration unit (GCU) and Flue Gas Desulphurization (FGD -158 TPM) Units of matching capacity and its cost of Rs.9000.000 Millions. The high demand of company's LOBS leads to upgrade LOBS quality to produce 200TMT per annum of Group II LOBS and 130 TMT per annum Group I LOBS with a capability to produce API Gr III also. The corporation is installing DHT (capacity 2.2 MMTPA) along with associated facilities at Mumbai and Visakh Refinery to meet the Euro IV specification for Diesel as per guidelines of GOI. EIL has been engaged for configuration study. The estimated Project cost of Rs.16000.000 Millions each for Mumbai Refinery and Visakh Refinery. HPCL is putting up new Integrated Effluent Treatment Plant (300m3/hr capacity) at its Mumbai Refinery. M/s. EIL is engaged for EPCM services of the project. LSTK Order placement is in progress, for execution of the works with cost of Rs.1380.000 Millions.

 
As on January 2008 Company Visakh Refinery on completing 50 marvelous performance years. Visakh Refinery has been the first refinery on the east coast set up as Caltex Oil Refining India Limited (CORIL) in the city of destiny, Visakhapatnam. The company's commercial start-up of a large scale Liquefied Petroleum Gas (LPG) Import and Underground Cavern Storage Terminal was effected in locations of Visakhapatnam, Andhra Pradesh and in the same month of during the year the corporation inaugurated the LPG Cavern Storage of South Asia LPG Company Private Limited which is a Joint Venture of the Oil majors company and Total, France. HPCL's POL Terminal at Bahadurgarh which is the culminating location for newly laid Mundra-Delhi Pipeline, was inaugurated on April 2008.

 

Milestone

 

1952

-          -          The Company was incorporated in the name of Standard Vacuum Refining Company of India Limited on July 5, 1952 under the Indian Companies Act, VII of 1913.

 

1962

-          -          On 31st March the name was changed to ESSO Standard Refining Company of India Limited.

 

1974

-          -          On July 15th the name of the company was changed to its present name Hindustan Petroleum Corporation Limited, by virtue of Lube India and ESSO Standard Refining Company of India Limited Amalgamation Order 1974 dated July 12, passed by the Company Law Board, Department of Company Affairs, GOI, New Delhi and as published in the Gazette of India Extra-Ordinary GSR No.320(E) dated July 15. A certificate to this effect was issued by the Registrar of Companies, Mumbai on September 4th.

 

1976

-          -          With the nationalisation of Caltex Undertakings in India the same were also taken over by the Government of India and subsequently merged with HPCL.

 

1979

-          -          The undertakings of Kosangas Company Limited was merged with the Company. The shares of the company were sold by the Government to Financial Institutions, Mutual Funds and Banks. Presently the Government holding in HPCL is 60.31%. The balance is being held by Financial Institutions, Mutual Funds, Banks, Foreign Institutional Investors, Employees and Individual Shareholders.

 

-          -          It has co-promoted several joint ventures like Mangalore Refinery and

Petrochemicals (MRPL), Hindustan Colas, Petronet India, Punjab Refinery Project, Visakh Power Project, Prize Petroleum Co and South Asia LPG Company.

 

1983

-          -          The capacity of lube plant was increased by an additional 74,000 tonnes per annum of high viscosity index lube base stocks.

 

1985

-          -          The crude unit and related off-sites were commissioned in January and fluid catalytic cracking unit was commissioned in August.

 

-          -          During the year corporation embarked upon a project to expand the crude distillation capacity at Mumbai by 2 million tonnes per annum at an estimated cost of Rs.450 millions. This project was commissioned in April.

 

1988

-          -          Mangalore Refineries and Petrochemicals Limited, is the first joint sector refinery being set up in the country after the Government has allowed entry of the private sector in the petroleum refining industry.

 

1989

-          -          During the year corporation installed the latest C-generations concept 3*10 MW gas turbines to meet the power requirement at Bombay Refinery with facilities to generate steam simultaneously.

 

 

1991

-          -          During September 3*10 MW gas turbine generators and heat recovery steam generators were commissioned at a cost of Rs.792.200 millions at Mumbai.

 

1993

-          -          During March an MOU was entered into between Government of India and Government of Sultanate of Oman, HPCL and Oman Oil Co., Ltd., for setting up 6 million TPA refinery on the West Coast of India through a joint venture company called Hindustan Oman Petroleum Co. Ltd.

 

1994

-          -          In March 1993, an MOU was signed between the Government of India, the Company, Government of Sultanate of Oman and Oman Oil Company to form a Joint Venture Company. Accordingly, on March 4, Hindustan Oman Petroleum Company Ltd. (HOPCL) was incorporated. The project is estimated to cost approx. Rs. 44260 millions (at June prices) and both promoters will have a 26% stake each in the equity. – A Memorandum of Understanding was signed on May 24th between the Company and Colas S.A., France for implementing a project for setting up a Bitumen Emulsions plant. This was followed by execution of the Joint Venture agreement on November 25th. It is proposed to form a Joint Venture Company (JVC) in the name of `Hindustan Colas Limited’ in the State of Maharashtra with equal equity participation from the Company and Colas S.A., France.

 

-          -          During the year, the company entered into a tie up with Exxon, a leading oil company for blending and marketing EESO brand of lubes.

 

1995

-          -          During February, the company issued 173,50,000 equity shares of Rs.10 each with detachable warrants of Rs.380 each as follows.

-          -          a. On firm allotment basis:

-          -          34,70,000 equity shares with warrants to Indian Financial institutions

     3,35,000 shares with warrants to Indian Mutual Funds.

 

-          -          b. Preferential allotment basis:

-          -          17,35,000 shares with warrants to share to employees

      17,75,000 shares with warrants to shareholders of the company,

      34,70,000 shares with warrants to NRIs, balance 66,05,000 shares were  issued to the public.

 

-          -          During the year company entered into a MOU with Saudi Arabian Oil Co.(Saudi Armaco) for setting up a 1 million tonnes p. a refinery. Punjab Armaco would contribute to the extent of 26% in the equity capital of the company.

 

-          -          During the year company proposed to undertake petrochemical production from feedstock available from the refineries. The petrochemicals planned were paraxylene/PTA, polyisobutylene and acrylonitrile.

 

-          -          During the same year the company undertook to provide thermal power from surplus heavy fuel oil. The proposed joint venture is to set up 500 MW power plant an estimated cost of Rs.18650 millions.

 

1996

-          -          During the month of March a joint venture with Colas S.A of France, the company commenced its first State-of-the-art Bitumen emulsion Plant of 20,000 TPA capacity at Vashi, named Hindustan Coalas Ltd.

 

1997

-          -          A new Terminal was commissioned at Kakinada with 30000 KL Tankage and allied facilities at a cost of Rs. 150.600 millions.

-          -          The Company is contemplating setting up 30 more LPG bottling plants

over the next five years.

 

-          -          The Company converted the detachable warrant into equity shares of Rs.10 at a premium of Rs.330 per share. Through this conversion of warrant company raised Rs.5899.000 millions. The amount was payable in four instalments of Rs 85 each payable over a period of one year.

 

-          -          Each warrant was converted into one equity share at a price of Rs.340 a share. With the full conversion of warrants, the government of India’s holding in the Company’s equity capital will be just over 51 per cent, ruling out further dilution in the company’s capital in the near future.

 

-          -          The company signed an MoU with the government for the execution of four projects, the Vizag refinery expansion project, Vizag-Vijaywada pipeline project, diesel hydro de-sulphurisation projects at Mumbai and Vizag and Punjab refinery project.

 

-          -          The ministry of petroleum and natural gas has set up an expert committee on 15th September, to enquire into the causes leading to the breakout of fire at the Company’s Vishakapatnam refining plant.

 

-          -          The joint venture between the Company and its former parent before nationalisation, Esso, is on slippery ground.

 

-          -          The Company signed a fuel supply agreement with a private firm which would set up a 100 MW liquid fuel based combined cycle power plant near Kengeri on the city outskirts.

 

 

1998

-          -          The Company signed a commercial agreement with Kondapalli Power Corporation Ltd (KPCL) for the supply of naphtha for the latter’s 355-MW combined cycle power generation unit at Kondapalli in Krishna district of Andhra Pradesh.

 

-          -          The company awarded the contract to build the refinery to South Korea’s Hyundai Heavy Industries.

 

-          -          The company set up a joint venture company with domestic financial institutions  for oil and gas exploration both in the country and abroad.

 

-          -          The company has commissioned its state-of-the-art modern LPG filling plant at Usar, Alibagh.

 

-          -          State owned the Company’s joint venture with Aditya Birla Group, Mangalore Refineries and Petrochemicals Limited (MRPL), is keen to set up an independent marketing network.

 

1999

-          -          American Express and the company signed a memorandum of understanding (MoU) for card acceptance at various gas stations.

 

-          -          The Company and Gas Authority of India Limited (GAIL) have entered into an agreement for setting up a liquefied petroleum gas (LPG) pipeline and infrastructure from Visakhapatnam to Secunderabad via Rajamundry and Vijayawada.

 

-          -          The Foreign Investment Promotion Board (FIPB) has allowed the joint venture of Hindustan Petroleum Corporation (HPCL) and Total of France, to set up LNG terminals and venture into downstream activities such as marketing of petro-products, etc.

 

-          -          The Company is celebrating its silver jubilee year with “Shakti Utsavs” in major Indian cities.

 

2000

-          -          Scheme of amalgamation of Industrial Perfumes Limited with the company is effective from 9th February, with retrospective effect from 1st January, 1999.

 

-          -          The company signed a confidentiality agreement with Totalfina of France to look at downstream areas, including retailing, once the domestic oil sector is opened up.

 

-          -          The company decided to float a joint venture information technology company for its e-commerce and other internet based services foray.

 

-          -          The company set up a Rs 29000 millions power project in Visakhapatnam as part of the company’s diversification strategy.

 

-          -          The company signed a business initiative with internet service provider (ISP) Satyam Infoway Limited to set up more than 200 cyber cafes at its retail outlets across the country.

 

-          -          Pepsi has entered its second cyberspace venture forging a tie-up with Satyam and the company as the official beverages supplier for their “Speednet project”.

 

-          -          Mangalore Refinery and Petrochemicals, the joint venture between the Company and the AV Birla Group of companies, is all set to sign a memorandum of understanding with Kuwait Petroleum Corporation for joint efforts in the downstream sector.

 

-          -          There was a fire blast in the Refinery at Malkapuram Near Visakhapatnam, on 17th August.

 

-          -          India’s largest private Internet Service Providers, Satyam Infoway and the Company have forged an alliance to set up cyber kiosks at various petrol pumps across the country.

 

-          -          The company entered the Bangladesh lubricants market with a range of its diesel engine and motor oil.

 

-          -          The company along with ZIP Telecom, front-end operator of Hughes Ispat,  set up public access telephone booths at HPCL retail outlets across Maharashtra.

 

-          -          The company has set up two regional offices in Jamshedpur as part of its strategy to focus on improving services.

 

-          -          A subsidiary company “Guru Gobind Singh Refineries” has been incorporated on Dec 2000. Land admeasuring approx. 2000 acres has been acquired.

-          -          Government of India is the major shareholder in the company with 51% stake.

 

2001

-          -          The company has introduced its smart card in Bangalore for the first time in the country.

 

 

2002

 

-          -          The company has informed that the Government of India has appointed Shri Arun Bal Krishnan as Director-Human Resources of the Corporation.

 

-    M B Lal appointed as Chairman and Managing Director of the company.

 

-          -          The company informed that Shri Naresh Narad, Special Secretary, Ministry of Petroleum and Natural Gas ceased to be a part time ex-officio Director of the Corporation with effect from November 11, 2002 consequent upon his movement from Ministry of Petroleum and Natural Gas, as Secretary, Ministry of Heavy Industries and Public Enterprises.

 

-          -          M S Srinivasan appointed as part-time ex-officio Director on the Board of  

the Company.

 

-          -          The Company has informed that Shri S D Gupta, Director (Finance) of the corporation passed away on December 26, 2002 after a brief illness.

 

-          -          Approved Mangalore Refinery and Petrochemicals Limited (MRPL) control to Birlas

 

-          -          The Company is introduced a new system at its 6,000-odd retail outlets across the country. The Company planned to set up facilities enabling customers to buy original spare parts and accessories for the car

 

-          -          Tied-up with Gas Authority of India Limited (Gail), Oil and Natural Gas Corporation (ONGC) to purchase LPG

 

-          -          Tied up with Lubrizol for its own brand of high-performance petrol, branded ‘Power’

 

-          -          Unveils branded petrol, diesel (Power and Turbojet respectively)

 

-          -          The Company unveils new retail brand – ‘Club HP’ through which it intended to offer quality personalised vehicle and consumer care through select outlets

 

-          -          FedEx inks one-year agreement with HPCL to set up transportation services at the Company’s 100 “Club HP” retail outlets in eight cities in the country

 

-          -          The Company and GAIL sign agreement for formation of new JV Company to distribute and market environmentally friendly fuels in and around the cities of Andhra Pradesh

 

2003

-          -          Cabinet Committee on Disinvestment (CCD) decides to divest 34.01 per cent equity in Company to a strategic partner

 

-          -          Government fixes Rs 2,5000 millions net worth for HPCL bidders

 

-          -          Forges alliance with Chennai-based KwickTel Communications to launch vehicle tracking system

 

-          -          The company’s shareholding in Mangalore Refinery and Petrochemicals Ltd (MRPL) dipped to 16.89% consequent to MRPL Debt Restructuring Arrangement

 

-          -          Total FinaElf withdraws from the race for acquiring the 34 per cent stake in the Company.

 

-          -          The company became the second largest firm in terms of sales with a turnover of over Rs. 500000 millions.

 

-          -          Launched loyalty Plan for its LPG Consumers

 

-          -          Launched a new scheme where in the LPG (liquefied petroleum gas) delivery boys will carry portable weighing scales, so that HP customer can measure the Gas contend in cylinder before receiving it

 

-          -          Unveiled a high-octane petrol brand in the market named as ‘Power ‘93’

 

-          -          Tied up with Chevron for Aviation Turbine Fuel (ATF) business

 

-          -          Government of India appoints Mr. C Ramulu as Director – Finance of the Corporation

 

-          -          Signed agreement with Oil and Natural Gas Corporation (ONGC) for sourcing crude oil

 

-          -          Subject bags eighth slot among ‘Top10’ in Asiamoney’s corporate governance poll on Asian companies in the energy sector. And joined the club of a select few Asian companies.

 

-          -          Unveiled Smart Card, which a customer could use to pay for petrol or diesel bought at Company’s outlets

 

2004

-    The Company’s Marketing Initiatives in Sri Lanka

 

-          -          The Company formed a 50:50 joint venture with Total Gas and Power India (TGPI), a wholly owned subsidiary of Total France, to develop the biggest underground ‘Cavern LPG Storage’ project at Visakhapatnam

 

-          -          Got award for industrial safety by National Safety Council, Kerala Chapter in chemical industries sector

 

-          -          Inks pact with Shell India Private Limited for product and infrastructure sharing between the two companies

 

-          -          Signs agreement with US Pizza, a pizza outlet, which would be opening over 500 delivery units at the Company’s outlets around the country. The understanding is aimed at making the partnership the largest food chain in the country

 

-          -          Mr S. Roy Choudhary has been appointed as Director-Marketing in the Company, effective May 10

 

-          -          The Company on June 26 signed a memorandum of understanding with Indian Oil Corporation Limited.

 

SALES/INCOME FROM OPERATIONS: 

 
The Company has achieved sales/income from operations of Rs.1120982.700 Millions as compared to Rs.969181.500 Millions in 2006-07. 

 


PROFIT: 
 
The Company has earned gross profit of Rs.27519.700 Millions as against Rs.30941.400 Millions in 2006-07 and profit after tax of Rs.11348.800 Millions as compared to Rs.15711.700 Millions in 2006-07. 

 

MANAGEMENT DISCUSSION and ANALYSIS REPORT: 

 
DEVELOPMENTS IN THE ECONOMY and OIL SECTOR: 

 
Growth in the Indian economy remained strong in 2007-08 with increase in output of 9%. Expansion was led by the services sector with double digit growth. The industrial sector grew by about 9%. The growth in agriculture sector was a healthy 4.5%. 

 
High inflation at the beginning of financial year was contained through a series of measures including hike in interest rates. This had an impact on the consumption of durable goods. Supply concerns, rising demand, falling dollar, speculation etc. continue to push up world oil prices. The Brent crude price increased by about 45% during the financial year, breaching $100 per barrel mark in February 2008. The Indian crude basket price reached $99 per barrel by the end of the financial year. The Indian government has continued to exercise control over domestic fuel prices with a view to containing inflationary pressures. 

 
Although exports increased by about 23% during 2007-08, faster growth in imports widened the trade deficit. Strong growth in invisible earnings, however, reduced the impact of higher trade deficit on current account balance. Capital flows, especially portfolio investments, were quite strong. As a result, foreign exchange accretions exceeded 100 billion US dollars. Foreign exchange reserves at the end of March 2008 exceeded 300 billion US dollars. Large capital inflows also caused the rupee to appreciate against dollar by about 12% during 2007-08, marginally mitigating the impact of higher import price of oil. 

 
The oil consumption in the country seems to show signs of revival and is slated to grow by 7% for the second consecutive year. Consumption of petrol and diesel grew by 11 % during the financial year 2007-08. Bitumen and aviation fuel demand increased by 17% and 14% respectively during 2007-08. Naphtha demand, however, declined by about 4% in the same period. This appears to be on account of increased availability of natural gas through LNG imports. 

 
 PHYSICAL/FINANCIAL PERFORMANCE: 

 
Company Refineries at Mumbai and Visakh achieved a combined crude thruput of 16.77 MMT as against 16.66 MMT achieved during 200607. Gross refining margins of Mumbai and Visakh Refinery averaged at $5.98 per barrel and $ 6.98 per barrel respectively. The Market Sales (including exports) were 22.18 MMT as against 21.69 MMT during 2006-07. The Company achieved highest ever turnover of Rs.1038370.000 Millions during the year as against Rs.914.880 Millions in 2006-07. The profit after tax for the year is Rs.11348.800 Millions as against Rs.15711.700 Millions for the financial year 2006-07. Higher refining margins, higher other income, inventory gains, and compensation in the form of oil bonds / upstream share etc., have contributed to the profitability. 

 
In view of rising crude oil prices and continuing pressure on margins, the Corporation has undertaken review of on going activities to realign its 'Capital expenditure program'. Several measures to achieve reduction in operating expenses have also been initiated. However important project activities and other critical operational activities would not be affected. 

 
 FINANCE: 
 
The Company had to raise resources from the market to meet additional fund requirements. The borrowings have gone up by 60% from Rs.105180.000 Millions in March, 2007 to Rs.167870.000 Millions in March, 2008 due to higher burden of under recoveries borne by HPCL and the time lag between incurring of under-recoveries and realization from Oil Bonds. This increase in borrowings was inspite of selling Oil Bonds amounting to Rs.45350.000 Millions during the year. With a view towards cost optimization, the requirement of funds was met through a combination of various short term instruments and long term loans in the form of external commercial borrowings and loans from Oil Industry Development Board. The foreign exchange risk was managed by timely hedging / forward cover in foreign exchange market. 

 
E-payment system has been established across the Corporation and E-collection initiatives are under implementation on large scale. 

 
Pursuant to the Government directive for conducting Audit and Cost Accounts, the Cost Audit was conducted for the first time during 2006-07 in respect of various manufacturing facilities of the Corporation for the year ended March 31, 2007. 

 

AWARDS / RECOGNITIONS:

 

_ Silver Trophy at Lakshya 2006 from National Institute of Training in Industrial Engineering (NITIE) and supported by Confederation of Indian Industry (CII) for HPCL’s article on “The Power of Collective Leadership” co-authored by S/Shri Ashis Sen and M.P. Eshwar, presented during Lakshya 2006 – the 7th Annual Flagship

Corp. event by NITIE

 

_ Greentech Safety Award 2006 – Gold Award to Santacruz ASF from Shri Tony Smith, ED-National Safety Council, USA for outstanding achievements in the field of Industrial Safety.

 

_ Greentech Safety Award 2006 – Silver Award to Chennai / Dum Dum / Bangalore / Calicut and Cochin ASF from Shri Tony Smith, ED-National Safety Council, USA for outstanding achievements in the field of Industrial Safety.

 

_ Greetech Safety Award 2006 – Gold Award to Mumbai Refinery from Shri Tony Smith, ED-National Safety Council, USA for outstanding achievements in the field of Industrial Safety.

 

_ The Best Safe Industry Award 2006 from Shri Iqbal Ansari, the Hon’ble Minister for Social Welfare and Minorities Govt. of Karnataka for outstanding achievements in the field of Safety.

 

_ DMA Erehwon Innovative HR Initiatives Award from Smt. Anu Aga, Chairperson, Thermax for Innovative HR Initiatives.

 

_ Readers’ Digest Trusted Brand – Asia Gold Award (Gas Station Category) from the Readers’ Digest for the most trusted brand.

 

_ Mangalore POL Golden Peacock Award 2007 awarded by World Environment Foundation and the Institute of Directors from Dr. Ola Ullsten, former Prime Minister of Sweden for excellence in occupational Health and Safety Management.

 

_ Golden Peacock Award 2007 to Mangalore POL Terminal awarded by World Environment Foundation and the Institute of Directors from Dr. Ola Ullsten, former Prime Minister of Sweden for excellence in occupational Health and Safety Management.

 

_ Golden Peacock Award 2007 to Mumbai Refinery awarded by World Environment Foundation and the Institute of Directors from H.E. Shri V. S. Khoje, the Governer of Himachal Pradesh for excellence in occupational Health and Safety Management.

 

_ Distinguished Fellow Award 2007 to Shri Arun Balakrishnan, CandMD awarded by Institute of Directors from Smt. Kalpana Morparya, Jt. Director-IOD for significant contribution in Corporate and National Development.

 

_ CNBC Awaaz Consumer Award 2007 – Auto Fuel Category awarded by CNBC Awaaz for ‘The Most Preferred Brand of Automotive Fuel’ – Power.

 

_ Greentech Environment Excellence Award from Greentech Foundation for Environment Excellence from Hon’ble Chief Minister of Goa, Shri Digambar Kamath:

 

²         Gold Award 2007 to Palam ASF

²         Silver Award 2007 to Santacruz ASF

²         Gold Award 2007 to Mumbai Refinery

 

 

-Greentech Environment Excellence Award – Gold Award 2007 to Hassan Terminal from Greentech Foundation from Shri Kamleshwar Sharan, President – Greentech Foundation for Environment Excellence.

 

_ Environment Excellence Silver Award to Goa ASF from Greentech Foundation for Environment Excellence from Hon’ble Chief Minister of Goa, Shri Digambar Kamath

 

_ Most admired Retailer of the Year - Forecourt Retailing Award 2007 from Images Retail Award 2007 for Retailing

 

_ Safety Innovation Award 2007 to Palam ASF and Santacruz ASF awarded by Institute of Engineers (India), Safety and Quality Forum for efforts towards developing total Safety Culture and Innovation from Hon’ble Minister of State for Heavy Industries and Public Enterprises, Shri Kanti Singh.

 

_ Amity HR Excellence Award 2007 for innovative strategies for HR Management and Development from Amity University.

 

_ CIO 100 Award for using innovative technology in IT – Project Parivartan from IDG (International Data Group) by Mr. David Hill – CEO and President, IDG.

 

_ Oil Industry Safety Award – Marketing POL Organisations received first rank from OISD for safety standards by Shri M.S. Srinivasan, Secretary – Petroleum and Natural Gas.

 

_ Golden Peacock Award 2007 for Best Work Place Practices from Institute of Directors by Smt.Sheila Dixit, Hon’ble Chief Ministry, New Delhi.

 

_ Asian CSR Award 2007 for Best Work Place Practices from Asian Institute of Management and Chemoil.

 

_ NIIS Award to DGM – Engg. Services, Shri V.S. Rao – Corrosion Awareness Award 2007 for Excellence in Corrosion Science from NACE International India Section (NIIS).

 

_ The National Safety Award 2006 – the Runners up trophy to Budge Budge Terminal-I for safety standards from National Safety Council by Shri Oscar Fernandes, Hon’ble Minister for Labour and Employment, Govt.

of India.

 

_ Runners up Trophy to Internal Coaches for HPCL’s article on “Achieving Leadership Excellence through Emotional Intelligence” co-authored by S/Shri Ashis Sen and M.P. Eshwar, presented during Lakshya 2007, the 8th Annual Flagship Corp. Event by NITIE.

 

_ The Finalist Trophy in Financial Management Category for HPCL’s article on “Ratio Analysis at HPCL” co-authored by Shri J Srihari Kumar, Dy. Manager – Finance Ghatkesar Terminal, Secunderabad RO and Shri N. Srikanth, Dy. Manager-Finance, GMO-SZ.

 

_ Silver Trophy at EMPI Indian Express Indian Innovation Award for implementation and adaptation of IT for improved logistics and cost reduction in the Indian Petroleum Industry from EMPI Indian Express by Former President of India, Dr.A.P. J. Abdul Kalam.

 

_ Star Retailer Award 2007 for ‘The Forecourt Retailer of the Year’ from India Retail Business.

 

_ ENCON Award 2007 to Visakh Refinery for Energy Conservation in Petroleum Refining Sector from Bureau of Energy Efficiency by Hon’ble President of India, Smt. Pratibha Devi Singh Patil.

 

CA Corporate Leader Exact Award for CA Professional from Institute of Chartered Accountants of India by Hon’ble Union Minister for State for Home Affairs, Shri P. Shriprakash Jaiswal.

 

_ Project Finance International 2007 Award for the Petrochemical Deal of the Year in Asia Pacific presented for Guru Gobind Singh Refineries to HPCL, SBI Capital, Mittal Energy.

 

_ Golden Peacock Innovation Award 2007 to Chennai ASF for development of aircraft refueling and Hose End Pressure Control Valve (HEPCV) Test rig.

 

_ The Best SLC Award to SLC – Visakh Refinery (AP) in the category of Big States in recognition of efforts made in promoting Oil and Gas Conservation during OGCF 2007.

 

_ Employer Branding Award – Life Time Achievement Award to CandMD from Asia Pacific HRM.

 

_ Excellence award to Shri A.S. Rao, ED-VR from Delhi Telugu Academy for his exemplary services to industry handed over by Shri K. Rosaiah, the Hon’ble Minister for Finance – AP State.

 

_ Golden Peacock Award for Excellence in Corporate Governance 2007 from Institute of Directors / World Council for Corporate Governance.


JOINT VENTURES: 

 
The Company's Joint Ventures have performed very well during the year 2007-08.

 

 

SALPG, a Joint Venture Company with Total Gas and Power India (a wholly owned subsidiary of Total of France) was incorporated on November 16, 1999, with HPCL's equity contribution of 50%. First of its kind in India, the underground SALPG Cavern facility for storing LPG was commissioned in December, 2007 and formally inaugurated by the Hon'ble Minister of Petroleum and Natural Gas on 14th January, 2008. The Cavern Marine Terminal has a 60,000 MT capacity underground LPG storage Cavern and associated receiving and despatch facilities at Visakhapatnam. The SALPG Cavern is the largest LPG storage facility in South Asia with the lowest point 192 M below the Mean Sea Level (MSL) ranking among the deepest Caverns in the World. 

 
During the initial 3 months of its operation, SALPG has discharged three VLGC (Very Large Gas Carrier) parcels and handled a volume of over 156000 MT of LPG. The Cavern storage facility would enable meeting the growing demand of LPG in India and also the export of LPG to the deficit markets in South Asia / South East Asia. 

 

 
The performance of HINCOL, another Joint Venture with Colas of France, incorporated on July 17, 1995, has been extremely impressive as it has registered significant growth during the year. HINCOL achieved a volume growth of 32% and profitability growth of 97% during the year and consolidated its status as the Market Leader. The turnover of the company crossed Rs.2500.000 Millions for the year 2007-08. The products of HINCOL are widely used by agencies associated with road construction. 

 
During the year, a new manufacturing facility for Emulsion and Modified Bitumen was commissioned at Jhansi, bringing total manufacturing locations spread across India to 7, manufacturing high quality value added bituminous products such as bitumen emulsions, cutbacks and modified bitumen. The introduction of cost effective emulsifiers for emulsion, cost effective modifiers for Modified Bitumen, innovation-of packaging options coupled with focus on distribution network has helped the company to be competitive in the market. The focus on invert emulsions enabled HINCOL to realise better margins on its products. During the year, 400OMT of Polymer Modified Bitumen manufactured by HINCOL was used for the new Airports at Bangalore and Hyderabad. 

 
 The company has increased its dividend to 25% (Last year 15%) during the year 2007-08. 

 

 
Company has entered into a Joint Venture with M/s. Mittal Energy Investments Pte Limited (MEI), Singapore, an L.N. Mittal group company, for implementation of Guru Gobind Singh Refinery, a greenfield refinery project located at Bathinda, Punjab. The refinery is designed to process 9 MMTPA of Arab Heavy Crude with flexibility to process other heavy / sour / acidic crudes. The configuration of the refinery includes primary units and secondary process units viz. CDUNDU, VGO-HDT, FCC, NCU/ISOM, HGU, DHDT SRU, DCU and Polypropylene manufacturing facilities. Other facilities include utilities such as CPP, Steam generation, Effluent Treatment plant, product storage etc. 

 
During the year, HMEL has incorporated a wholly owned subsidiary viz. M/s HPCL-Mittal Pipelines Limited (HMPL) to set up and operate business relating to crude oil receipt, its storage and cross country transportation of crude oil. Both HMEL and HMPL have achieved financial closures and are currently in process of awarding major contracts and orders for equipments. 

 

 
MRPL with a capacity of 3 MMTPA was commissioned in March 1996. The capacity of the refinery was enhanced to 9 MMTPA during 1999-2000. ONGC acquired the entire equity stake of IRIL in MRPL on 03.03.2003 and also infused Rs.6000.000 Millions into MRPL as additional equity on 30.03.2003. The FIs/Lenders of MRPL converted Rs3650.000 Millions of debt into equity and Rs1600.000 Millions debt into ZCBs. Consequent to the above, HPCUs equity stands at 16.95% after which a fresh Shareholder Agreement dated 03.03.2003 has been signed by HPCL with ONGC to take care of the intersts of Company. MRPL has declared a dividend of 12% for the financial year 2007-08. HPCL and MRPL have been exchanging intermediate process streams between their refineries to supplement efforts to meet new environmental norms in respect of products like MS and HSD on mutually agreed terms 

 

 
Company in partnership with ICICI and HDFC, had formed this Joint Venture EandP Company for participating in exploration and production of hydrocarbons. PPCL was incorporated on October 28, 1998. PPCL is also providing consultancy services related to EandP. 

 
The consortium of PPCL, HPCL and Trenergy of Malaysia, which had signed the Service Contract for development of ONGC's offshore marginal fields-Cluster-7, has made considerable progress during the year. Initial Development Plan (IDP) duly approved by all consortium partners has been submitted to ONGC Limited. Reservoir simulation study has been completed. 

 
PPCL has signed a Service Contract with ONGC Ltd for development of marginal fields in Cambay basin with 50% holding in the consortium. During the year, these fields produced 49,123 barrels of oil. 

 

PPCL has also entered into a Production Sharing Contract (PSC) with 50% stake in an onland marginal field at Sanganpur. During the year, there was a production of 1,426 barrels of oil from this field. 

 
In respect of onshore block (under HELP-VI) at South Rewa in Madhya Pradesh, after receipt of Petroleum Exploration License (PEL) from State Govt., the exploration activities as per committed minimum work program have been initiated. PPCL is the Operator in this field. 

 

 
Petronet India Limited (PIL) was incorporated on May 26, 1997 as a joint venture company with 50% equity by oil PSUs and balance 50% taken by private companies/financial institutions. Special Purpose Vehicles (SPVs) were floated by PIL with oil companies for implementing individual pipeline projects, viz, Petronet MHB, Petronet CCK and Petronet VK which are operating companies. 

 
Since oil companies are now having pipelines independently, PIL has initiated action to disinvest its equity holding in individual JVs. 

 

 
Company along with Petronet India Limited (PIL) promoted Petronet MHB Limited (PMHBL) for construction of Mangalore- Hassan Bangalore Pipeline at a cost of Rs.6670.000 Millions with debt equity ratio of 3:1. The joint venture company was incorporated on July 31, 1998. Initially PILand HPCL each contributed 26% towards equity. ONGC joined as a strategic partner in the company by taking 23% equity in April, 2003. The Pipeline is meeting the transportation needs between Mangalore-Hassan-Bangalore. 

 
PMHBL achieved 50% higher throughput of 2.141 MMT during the year 2007-08 as compared to 2006-07. Revenue generation was higher by 52% during the year 2007-08 at Rs.572.900 Millions as compared to 2006-07. 

 
PMHBL obtained Integrated Management System Certification covering Quality management System-ISO-9001, Environmental Management system - ISO - 14001 and OHSAS - 18001 in any PSU pipeline or PIL pipelines. 

 

 
Bhagyanagar Gas Limited (BGL) was incorporated on August 22, 2003 as a Joint Venture Company by GAIL and HPCL for distribution and marketing of environmental friendly fuels (green fuels) viz. CNG and Auto LPG for use in the transportation, domestic, commercial and industrial sectors, in the state of Andhra Pradesh. 

 
BGL successfully launched CNG in Vijayawada and Hyderabad and is operating 5 CNG dispensing stations in Vijayawada and 3 CNG Dispensing stations in Hyderabad. During the year, the first CNG Bus Dispensing station was commissioned in Vijayawada which supplies CNG to the buses operated by APSRTC. BGL is also operating 4 Auto LPG Outlets - 3 in Hyderabad and 1 in Tirupati. BGL achieved 63% higher sales at Rs.331.200 Millions during the year 2007-08 as compared to previous year. 

 

 
Aavantika Gas Limited (AGL) was incorporated on June 07, 2006 as a Joint Venture Company by GAIL and HPCL for distribution and marketing of environmental friendly fuels (green fuels) viz CNG and Auto LPG for use in the transportation, domestic, commercial and industrial sectors, in the State of Madhya Pradesh.  

 
During the year, AGL has completed construction of CNG Mother Station at Indore and achieved mechanical completion thereof. 5 Daughter Stations for dispensing CNG, 4 at Indore and 1 at Ujjain are also ready for operation. The commercial operations could not be commenced during the year as license is required from Petroleum and Natural Gas Regulatory Board (PNGRB), a regulatory body set by an Act of Parliament. The matter has been taken up with PNGRB. 

 

FIXED ASSETS:

 

 

WEBSITE DETAILS:

 

PROFILE:

 

Subject is a Fortune 500 company, is one of the major integrated refining and marketing oil company in India. It is a mega Public Sector Undertaking (PSU) with Navratna status.


Company accounts for about 16% of the market share and 10.3% of the nation’s refining capacity with two coastal refineries, one at Mumbai (West Coast) having a capacity of 5.5 MMTPA and the other in Vishakapatnam (East Coast) with a capacity of 7.5 MMTPA. Company also holds an equity stake of 16.95% in Mangalore Refinery and Petrochemicals Limited (MRPL), a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. Company is well on its way towards setting up another grassroot refinery in the state of Punjab, called Guru Gobind Singh Refineries Limited.


Company also owns and operates the country’s largest Lube Refinery, producing Lube Base Oils of international standards. With a capacity of 335,000 Metric Tonnes. This refinery accounts for over 40% of the country’s total Lube Base Oil production.


Company has returned “Excellent” performance for fifteen Consecutive years upto 2005-06, since signing of the first MOU with the Ministry of Petroleum and Natural Gas. Company won the prestigious MOU Award for the year 2005-06 for Excellent Overall Performance and for being one of the Top Ten Public Sector Enterprises who fall under the ‘Excellent’ category. Company performance for the year 2006-07 also qualifies for “Excellent” rating.


The Corporation over the years has moved from strength to strength on all fronts. Their refining thruput has increased three fold between 1984/85 to 2006/07, rising from 4.47 million tonnes in 1984/85 to 13.70 million tonnes currently.


Consistent excellent performance has been made possible by highly motivated workforce of more than 10,891 employees working all over India at its various refining and marketing locations.


To succeed in the competitive environment, the Corporation had taken up initiatives such as Business Process Reengineering exercise, creation of Strategic Business Units, ERP implementation, HR initiatives such as Organizational transformation, Balanced Score Card, Competency Mapping, bench marking of refineries and terminals for product specifications / safety, ISO certification of Refineries / marketing / pipeline operations, branding of fuels, Supply Chain Management for improving logistics, customer oriented approach, up-gradation and modernization of facilities.


Information technology is being harnessed by the Company to improve productivity across the functions. The Enterprise Resource Planning (ERP) system is now operational on Oracle Software across the Company.

 

NEWS:

 

HPCL Wins CIO 100 Award for the Third Year in a Row

 

Jaipur, September 06, 2008

 

HPCL has been awarded the “CIO 100” Award for the Third Consecutive Year. The Award was received by Ms. Nishi Vasudeva, Executive Director-Information Systems, at the Third Annual CIO 100 Symposium and Awards event held at Jaipur on September 6, 2008.

 

The Annual Award Program recognizes Organizations that exemplify the highest level of operational and strategic excellence in Information Technology. This year’s award theme “The Bold 100” recognizes those Executives and Organizations who embrace great risk for the sake of great reward. These organizations are playing not just to survive, but to win. “CIO 100” award of IDG (International Data Group) is one of the most prestigious recognitions in the IT Industry worldwide. Over the years a CIO 100 award has come to be considered the equivalent of the Oscars of the IT Industry across the world.

 

HPCL received the award for its Indent Management System which integrates the entire order-to-cash process electronically; and also for implementation of e-payments and deployment of information portals for customers and transporters whereby the power of on-line information has been harnessed to enable HPCL stakeholders/business partners manage their business more effectively. HPCL`s commitment to continuously enhance customer satisfaction by providing value added services, with technology as an enabler, has been recognised by IDG India by conferring the coveted “CIO 100” award third year in a row.

 

Yet another milestone for HPCL towards Asset Integrity Management

 

New Delhi, September 10, 2008

 

Hindustan Petroleum Corp Limited (HPCL) is the first among Oil PSUs to enter into an agreement with US Trade Development Agency (USTDA) on April 4, 2008 for Technical assistance grant related to Asset Integrity Management Programme in Refineries.

 

On its way forward, HPCL signed up a Contract with a reputed US Company on 10th September 08, which would cover Field Demonstration and training of Advanced technologies / Risk Based Inspection in relation to Asset reliability and Inspection Techniques to minimise the risks and enhance the safety of equipment and pipelines in HPCL Refineries.

 

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]         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.47.67

UK Pound

1

Rs.75.47

Euro

1

Rs.61.19

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

 

73

 

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

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions