MIRA
INFORM REPORT
|
Report Date : |
19.11.2008 |
IDENTIFICATION DETAILS
|
Name : |
CAIRN ENERGY INDIA PTY LIMITED |
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Formerly Known As : |
COMMAND PETROLEUM ( |
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Registered Office : |
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Country : |
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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
|
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 Group, a multinational oil exploration company. Available information indicates high financial responsibility of the company. Trade relations are fair. Payments are usually correct and as per commitments.
The company can be considered good for normal business dealings at usual trade terms and conditions. |
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
|
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
|
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. Norman L. Murray |
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Designation : |
Non-Executive Deputy Chairman |
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Name : |
Mr. Rahul Dhir |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. Rick Bott |
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Designation : |
Executive Director and Chief Operating Officer |
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Name : |
Mr. Indrajit Banerjee |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Malcolm Thoms (Alternate Director to Mr. Hamish Grossart w.e.f. February 26, 2007) |
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Designation : |
Non Executive Director |
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Name : |
Mr. Naresh Chandra |
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Designation : |
Independent Non –Executive Director |
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|
Name : |
Mr. Aman Mehta |
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Designation : |
Independent Non –Executive Director |
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Name : |
Dr Omkar Goswami |
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Designation : |
Independent Non –Executive Director |
BUSINESS DETAILS
|
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
|
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 Ř Ernst & Young Chartered Accountants Ten George Street, Edinburgh EH2 2DZ, UK
Ř Ř Arthur Andersen Associates Chartered Accountants New Delhi, India.
Ř 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 |
|
|
|
|
|
Non-current
assets |
|
|
|
Intangible exploration / appraisal assets |
419,239 |
321,855 |
|
Property, plant and equitable – development / producing assets |
394,010 |
456,929 |
|
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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|
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|
844,871 |
788,245 |
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|
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Current assets |
|
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Inventory |
4,615 |
5,533 |
|
Trade and other receivables |
218,159 |
124,725 |
|
Bank deposits |
0 |
20,000 |
|
Cash and cash equivalents |
856,266 |
75,509 |
|
|
|
|
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|
1,079,040 |
225,767 |
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|
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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 |
|
Obligations under finance leases |
1,380 |
0 |
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Provisions |
6,845 |
0 |
|
Derivative financial instruments |
9,694 |
0 |
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Income tax liabilities |
6,064 |
7,550 |
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|
|
|
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|
921,215 |
102,286 |
|
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Non current
liabilities |
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Loans and borrowings |
155,000 |
0 |
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Obligations under finance leases |
3,092 |
0 |
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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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|
|
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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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|
|
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Equity |
|
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Called up share capital |
25,870 |
25,775 |
|
Share premium |
201,019 |
197,895 |
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Share held by ESOP Trust |
[55,756] |
[37,311] |
|
Foreign Currency translation |
2,798 |
[7,927] |
|
Other reserves |
37,284 |
37,284 |
|
Capital reserves - non distributable |
45,331 |
45,331 |
|
Capital reserves - distributable |
178,429 |
178,429 |
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Retained earnings |
246,195 |
318,122 |
|
|
|
|
|
Total equity
attributable to the equity holders |
681,170 |
757,598 |
GROUP
INCOME STATEMENT
[For
the year ended 31st December 2006]
|
PARTICULARS |
Group
2006 $’
000 |
Group
2005 $’
000 |
|
Revenue |
|
|
|
|
|
|
|
Cost of sales |
|
|
|
Production costs |
[56,931] |
[50,235] |
|
Unsuccessful exploration costs |
[62,018] |
[26,867] |
|
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 |
|
Administrative expenses |
[60,323] |
[41,204] |
|
Exceptional impairment of oil and gas assets |
[71,455] |
-- |
|
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 |
|
Finance Costs |
[30,609] |
[2,236] |
|
|
|
|
|
[Loss] / Profit
before taxation |
[90,576] |
101,211 |
|
|
|
|
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Taxation credit
/ [expenses] on [loss] / profit |
8,559 |
[22,139] |
|
|
|
|
|
[Loss] / profit
for the year attributable to the equity holders of the parent |
[82,017] |
79,072 |
|
|
|
|
|
Earnings per
ordinary share – basis [cents] |
[52.02] |
50.37 |
|
|
|
|
|
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.
CAIRN INDIA LIMITED
Associates/Subsidiaries
IDENTIFICATION DETAILS
|
Name : |
CAIRN INDIA LIMITED |
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Registered Office : |
3rd and 4th Floor, Vipul Plaza, Sun City, Sector
54, Gurgaon – 122002 |
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Country : |
India |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
21.08.2006 |
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Com. Reg. No.: |
163934 |
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CIN No.: [Company
Identification No.] |
L11101MH2006PLC163934 |
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PAN No.: [Permanent
Account No.] |
AACCC8799D |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturer Oil and Gas. |
INFORMATION PARTED BY
|
Name : |
Mr. Neerja Sharma |
|
Designation : |
Company Secretary |
LOCATIONS
|
Registered Office : |
3rd and 4th Floor, Vipul Plaza, Sun City, Sector
54, Gurgaon – 122002 |
|
Tel. No.: |
91-124-2703000 |
|
Fax No.: |
91-124-2889320 |
|
Website : |
DIRECTORS
|
Name : |
Mr. Rahul Dhir |
|
Designation : |
Director |
|
Address : |
A1, West End, Ground Floor, New Delhi |
|
Date of Birth/Age : |
42 Years |
|
Qualification : |
B.Tech, MBA |
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|
Name : |
Mr. Indrajit Banerjee |
|
Designation : |
Director |
|
Address : |
F-100, East of Kailash, New Delhi |
|
Date of Birth/Age : |
52 Years |
|
Qualification : |
B.Com., CA |
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|
Name : |
Mr. Rick Bott |
|
Designation : |
Director |
|
Address : |
A-50/3, DLF Phase – I, Gurgaon |
|
Date of Birth/Age : |
49 Years |
|
Qualification : |
BSc, MSc |
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|
Name : |
Mr. Naresh Chandra |
|
Designation : |
Director |
|
Address : |
Sector C4, Flat 4053, Vasant Kunj, New Delhi |
|
Date of Birth/Age : |
74 Years |
|
Qualification : |
MSc |
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|
Name : |
Dr. Omkar Goswami |
|
Designation : |
Director |
|
Address : |
E-121, Masjid Moth, Greater Kailash – 3, New Delhi |
|
Date of Birth/Age : |
52 Years |
|
Qualification : |
BA, MA, Ph.D |
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|
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|
Name : |
Mr. Aman Mehta |
|
Designation : |
Director |
|
Address : |
4/7, Shanti Niketan, New Delhi |
|
Date of Birth/Age : |
62 Years |
|
Qualification : |
BA |
|
|
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|
Name : |
Mr. Malcolm Shaw Thoms |
|
Designation : |
Director |
|
Address : |
Garth Hill, 10 Ferryhills Road, North Queensferry KY111HE |
|
Date of Birth/Age : |
53 Years |
|
Qualification : |
BSc, MBA |
|
|
|
|
Name : |
Mr. Norman Murray |
|
Designation : |
Director |
|
Address : |
8, Pentland Avenue, Edinburgh, EH13 0HZ. |
|
Date of Birth/Age : |
60 Years |
|
Qualification : |
CA |
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|
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|
Name : |
Sir. William Benjamin Bowring Gammell |
|
Designation : |
Director |
|
Address : |
90, Inverleith Place, Edinburgh, EH3 5 PA. |
|
Date of Birth/Age : |
56 Years |
|
Qualification : |
BA |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON
|
Names of Shareholders |
|
Percentage of
Holding |
|
Cairn UK Holdings Limited |
|
64.76 |
|
Petronas International Corporation Limited |
|
12.66 |
|
Orient Global Tamarind Fund Private Limited |
|
2.62 |
|
Life Insurance Corporation of India |
|
2.57 |
|
ICICI Prudential Life Insurance Company Limited |
|
1.05 |
|
HSBC Global Investment Fund |
|
0.88 |
|
Merrill Lynch International Investment Fund |
|
0.70 |
|
State Bank of India |
|
0.66 |
|
Reliance Capital Trustee Company Limited |
|
0.61 |
|
Europacific Growth Fund |
|
0.58 |
|
Others |
|
12.91 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer Oil and Gas. |
PRODUCTION STATUS
|
Particulars |
|
Actual
Production |
|
Oil and Gas [Consolidated and on working interest basis] |
|
6.82 million boe |
|
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
900 |
|
|
|
|
Bankers : |
ABN Amro Bank NV Hansalya Building, 15, Barakhamba Road, New Delhi |
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Banking Relations
: |
Satisfactory |
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Auditors : |
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|
Name : |
S R Batilboi and Associates Chartered Accountants |
||||||||||||||
|
Address : |
U & I, Plot No. 47, Sector 32, Institution Area, Gurgaon – 122001 |
||||||||||||||
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Tel. No.: |
91-124-4644123 |
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Fax No.: |
91-124-4644050 |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.12.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2250000000 |
Equity Shares |
Rs. 10/- each |
Rs. 22500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1778399420 |
Equity Shares |
Rs. 10/- each |
Rs.
17783.994 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.12.2007 |
31.12.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
|
17783.994 |
17653.144 |
||
|
2] Stock options
outstanding |
|
947.084 |
345.059 |
|
|
3] Reserves
& Surplus |
|
276084.115 |
275017.837 |
|
|
4] (Accumulated
Losses) |
|
(457.184) |
(211.742) |
|
|
|
294358.009 |
292804.298 |
||
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
169.361 |
194.145 |
|
|
2] Unsecured Loans |
|
2955.000 |
4984.788 |
|
|
TOTAL BORROWING |
|
3124.361 |
5178.933 |
|
|
DEFERRED TAX LIABILITIES |
|
4916.494 |
4152.300 |
|
|
|
|
|
|
|
|
TOTAL |
|
302398.864 |
302135.531 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
486.506 |
495.450 |
|
|
Exploration, development and site-restoration costs |
|
29059.781 |
20098.485 |
|
|
Goodwill |
|
253192.675 |
253192.675 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
7128.909 |
105.334 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
1216.047 |
1251.109 |
|
|
Sundry Debtors |
|
1348.578 |
1917.479 |
|
|
Cash & Bank Balances |
|
13317.907 |
61347.833 |
|
|
Other Current Assets |
|
134.534 |
12.752 |
|
|
Loans & Advances |
|
4515.721 |
2761.687 |
|
Total
Current Assets |
|
20532.787 |
67290.860 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
4691.798 |
36742.757 |
|
|
Provisions |
|
3680.150 |
2811.126 |
|
Total
Current Liabilities |
|
8371.948 |
39553.883 |
|
|
Net Current Assets |
|
12160.839 |
27736.977 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
370.154 |
506.610 |
|
|
|
|
|
|
|
|
TOTAL |
|
302398.864 |
302135.531 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.12.2007 |
31.12.2006 |
|
|
Income from Operations |
|
10122.627 |
387.417 |
|
|
Other Income |
|
1324.089 |
62.215 |
|
|
Total Income |
|
11446.716 |
449.632 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
1259.227 |
[130.131] |
|
|
Provision for Taxation |
|
1504.669 |
56.427 |
|
|
Profit/(Loss) After Tax |
|
[245.442] |
[186.558] |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Operating Expenses |
|
1945.812 |
53.120 |
|
|
Depletion and site restoration costs |
|
1906.378 |
54.706 |
|
|
Unsuccessful exploration costs |
|
2512.282 |
59.481 |
|
|
Administrative Expenses |
|
3737.005 |
374.293 |
|
|
Increase/(Decrease) in Finished Goods |
|
(111.714) |
28.898 |
|
|
Depreciation & Amortization |
|
170.677 |
6.519 |
|
|
Finance Costs |
|
27.049 |
2.747 |
|
Total Expenditure |
|
10187.489 |
579.764 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.12.2007 |
31.12.2006 |
|
PAT / Total Income |
(%) |
|
[2.14] |
[41.49] |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
12.44 |
[33.59] |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
0.43 |
[0.05] |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.00 |
[0.00] |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
0.04 |
0.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
2.45 |
1.70 |
Introduction
Cairn India
was listed on 9 January 2007 on
the Bombay and National Stock Exchanges. The Initial Public Offering
(IPO) of Cairn India was the largest IPO to date in
the Indian primary equity markets and Cairn
India currently has a market
capitalisation in excess of $10 billion, ranking as the fourth largest oil and
gas company in India.
The IPO attracted a number of high quality investors (including
PETRONAS, which holds 12.67%) thereby signifying investor confidence in the
Indian equity story, the regulatory environment and the capital markets.
Cairn India
is committed to continuing investment in India and is very much focused on creating shareholder value by
developing its world class resource base in Rajasthan and seeking to continue
its track record of exploration success.
Cairn India
is a unique entity now.
STRATEGY
Cairn India's
strategy is to establish
commercial reserves from strategic positions in high potential exploration
plays in order to create and deliver shareholder value. In the implementation
of this strategy, Cairn India focuses on material
positions that are capable of providing significant growth through exploration.
The company operates the largest producing oil field in the Indian
private sector and has pioneered the use of cutting-edge technology to extend
production life. Today, Cairn
India has a world-class resource base, with interest in 15 blocks in India .
Company philosophy
– entrepreneurial spirit
Harnessing a combination of innovation and entrepreneurship, Cairn India is already one of the most
significant oil and gas exploration and production companies in South Asia.
These successes have created a company with more than 650 employees in India
alone, and world class oil reserves in one of the fastest-growing economies in
the world.
Today, Cairn India has
two processing plants, 11 platforms, 200km of sub-sea pipelines and operations
spanning the Indian continent. The company operates the largest producing oil
field in the Indian private sector and has pioneered the use of cutting-edge
technology to extend production life. Three of the fields – Ravva, Lakshmi and
Gauri – are already producing more than 80,000 barrels of oil equivalent per
day (boepd) on behalf of Cairn
and its joint venture (JV) partners. Cairn
India sells its oil to four major refineries across India and its gas to both
public and private buyers.
Pioneering
discoveries
In India, Cairn has made
more than 30 oil and gas discoveries during the last 13 years. In January 2004,
Cairn discovered the largest
onshore oilfield in India since 1985 – the Mangala field in Rajasthan. 23
discoveries have been made so far in Rajasthan, providing oil in place of 3.6bn
barrels of oil equivalent (boe). Three out of the seven landmark discoveries in
India between 2000 and 2005 have been made by Cairn.
Working in
partnership to provide energy for the future
Working with the Government of India, State Governments and the joint
venture partners for more than a decade, Cairn India has developed an in-depth understanding of the
regulatory environment and, more importantly, has laid the foundations for the
strong relationships that are needed to help provide some of the energy needs
of one of the fastest-growing nations in the world.
Cairn India's
operational partners include ONGC, Videocon, Tata, Marubeni and ENI. Equally
important are the relationships with local communities. Cairn India aims to make a positive impact wherever it operate,
not just for Cairn India
employees but for their families and the wider community.
Unlocking the
potential to deliver continued growth
This entrepreneurial spirit is underpinned by a depth of knowledge and
strong set of cultural values. 80% of Cairn
India's employees are
professionally qualified and are led by a seasoned management team with
substantial experience. They have a passion for the business and in a
fast-moving environment, they are expected to adapt to change, to use their
technical and commercial acumen to manage risk and uncertainty and to make
‘brave' decisions in the pursuit of Cairn
India's vision.
Cairn has maintained a low-cost operating base by
focusing on life-cycle planning, continuous monitoring and control of
operational costs and the innovative application of operating technologies.
Cairn India is
focused on:
Maintain low
operating costs and sustain production in existing fields
Sustaining the current production volumes at the Ravva, Lakshmi and
Gauri fields is one of Cairn India's key objectives. Cairn India's oil and gas fields at Ravva and CB/OS-2 continue to be the
cornerstone of its existing production. During 2006 both of these assets
benefited from revised gas prices and improved oil production. An ongoing
drilling programme at Ravva and new developments planned on CB/OS-2 will ensure
that these assets continue to underpin Cairn
India's activities elsewhere in
India.
Maintaining Cairn India's low operating cost base
through efficient operations is critical. Its strategy is to focus on life-cycle planning and continuous
monitoring and control of operational costs as well as applying innovative
operating concepts and technologies.
Execute Rajasthan
Northern Fields development
A step change in production is expected from 2009, when the first of the
Rajasthan developments is scheduled to come onstream. The Mangala field will be
brought on production first followed by the Bhagyam and Aishwariya fields and
the targeted gross production from these three fields is 150,000 bopd. Once
onstream, these fields will create significant value for the Government of
India, the Rajasthan State Government and for investors and other stakeholders
in Cairn India.
Cairn India's
execution of the Rajasthan block development will benefit from the development
and production experience and detailed subsurface knowledge of the development
area.
Maximise potential
in Rajasthan
Cairn India believes that there are significant
reserves in Rajasthan. It is in the process of assessing how advanced
technologies can be used to help increase recovery from this resource base,
harnessing hydraulic fracture stimulation techniques. Laboratory studies have
indicated that the early application of enhanced oil recovery (EOR) techniques
on the Mangala and Bhagyam fields is expected to extend the production plateau
and ultimate reserves for these fields. Further work is also planned to determine
the best method of extracting the oil from the potentially productive Barmer
Hill formation.
Appraisal of the extensive potential in the huge Rajasthan Block lies in
numerous prospects and leads in a number of reservoirs in the vicinity of Cairn India's existing discoveries. Cairn India has identified approximately 30 prospects in the
licence area and it is building a comprehensive and growing inventory, based
upon analysis of the 2D and 3D seismic data and various wells.
Identify new
opportunities for growth in reserves and production
Cairn India is actively exploring for
hydrocarbons in basins throughout India. In addition to the exploration
potential in Rajasthan, it has identified a number of leads and prospects in
India, where Cairn has an interest
in other blocks. This diversification allows Cairn India to drill a large number of potential prospects with
high geologic risk, as well as explore for and drill smaller potential
accumulations that carry less risk.
Cairn India's
portfolio is being fostered in both mature and frontier areas, as well as in
regions and basins where the current data set can be optimised or
reinterpreted. This first stage exploration strategy has delivered early entry into several potential
hydrocarbon-bearing regions in India. Early entry can be a critical factor in
long-term exploration success, and Cairn
India is very active in relatively unexplored areas.
In addition, Cairn
believes that India has significant under-explored potential, with 26 basins
covering a sedimentary area of 3.14 million km 2 . In addition to its existing
exploration portfolio, Cairn is
seeking out new exploration opportunities through organic growth, acquisition
opportunities and by participating in future New Exploration Licensing Policy (NELP)
rounds.
Cairn India believes that there are significant
reserves in Rajasthan. They are in the process of assessing how advanced
technologies can be used to help increase recovery from this resource base.
HISTORY
Cairn India
has a Scottish heritage.
The year was 1979 when Sir Bill Gammell, the chairman, founded Castle Cairn Financial Services. By 1986, the
majority of its work was in the expanding gas and oil industry and a new
company was formed – Cairn
Energy Management.
The company was acquired by Caledonian Offshore Limited in 1988 and was renamed
Cairn Energy PLC, just prior to
its flotation on the London Stock Exchange. Bill Gammell became its first Chief
Executive and has held this position
for nearly two decades, overseeing the organisation's transformation to one of
the largest independent exploration and production companies in Europe. In the
2006 New Year's honours list, he was awarded a knighthood for services to
industry in Scotland.
In January 2004, following the largest oil discovery by any company in India since 1985, and added the
Mangala oilfield in Rajasthan to the assets and this, along with the other
discoveries in Rajasthan, will form the core of the future developments in India.
The company operates the largest producing oil field in the Indian
private sector and has pioneered the use of cutting-edge technology to extend
production life. Today, Cairn India has a world-class resource base, with
interest in 14 blocks across India and Sri Lanka
A Decade of
Achievement
Exploration
More than 30 Hydrocarbon discoveries :
Onshore
Shallow Offshore
Deep Offshore
Estimates of hydrocarbon reserves and resources
Development
Fast – track development
Lakshmi gas field discovery in May 2000 and first gas by October 2002
Ravva developed from a 3,700 bopd field to 35,000 bopd field in 26 months, now producing over 50000 bopd
Mangala FDP approved within 30 months from discovery
Production
Operates the largest producing field in Indian Private Sector
Combined field direct opex of Ravva and Cambay is $1/boe
Pioneered use of cutting edge technologies to extend production life
Average Annual Production
Sales
Gas sales contract with public and private buyers
Oil sales to four refineries across India
Efficient sales management of $1bn gross annual revenue in 2006
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 exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.68 |
|
UK Pound |
1 |
Rs.74.64 |
|
Euro |
1 |
Rs.62.58 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|