MIRA INFORM REPORT

 

 

 

Report Date :

06.10.2008

 

IDENTIFICATION DETAILS

 

Name :

INDIAN OIL CORPORATION LIMITED

 

 

Registered Office :

Indian Oil Bhavan, G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai – 400 051, Maharashtra

 

 

Country:

India

 

 

Financials (as on):

31.03.2008

 

 

Date of Incorporation :

30.06.1959

 

 

Com. Reg. No.:

11-11388

 

 

CIN No.:

L23201MH1959GOI011388

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUM105274D

 

 

PAN No.:

[Permanent Account No.]

AAAC11681G

 

 

Legal Form :

Public Limited Liability Company. Company’s shares are listed on the Stock Exchange.

 

 

Line of Business :

Manufacturing and Selling of petroleum products.

 

 

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 2100000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company in its field.  Available information indicates high financial responsibility of the company. Financial position of the company is good. Trade relations are fair. Payments are usually correct and as per commitments.

 

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

 

It can be regarded as a promising business partner in a long run.

 

 

LOCATIONS

 

Registered Office :

Indian Oil Bhavan, G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai – 400 051, Maharashtra, India

Tel. No.:

91–22–26423272 / 26443880 / 26400926 / 26427363 Extn. 7616 / 7528 / 26441825 / 30 / 31

Fax No.:

91–22–26443880 / 26425903 / 26400606

E-Mail :

srikumar@indianoil.co.in , rajurang@indianoil.co.in

Website :

http://www.iocl.com

 

 

Head Office :

·         SCOPE Complex, Core 2, 7, Institutional Area, Lodhi Road, New Delhi - 110 003, India

Tel. 91-11-24361247/24321704

Fax. 91-11-24361321

E-mail : dasgupta@iocl.co.in / pkc@iocl.co.in /

             govindarajank@iocl.co.in

 

      Contact Person :

      Mr. Chandan Dasgupta – Executive Director – Business

                                               Development [Gas]

      Mr. P. K. Chakraborti – Executive Director – Business Development

      Mr. K. Govindarajan – Executive Director – Petrochemicals

 

·         P.O. Barauni Oil Refinery, District Begusarai - 861 114, Bihar, India

·         P.O. Jawahar Nagar, District Vadodara - 391 320, Gujarat, India

·         P.O. Noonmati, Guwahati - 781 020, Assam, India

·         P.O. Haldia Refinery, District Midnapur - 721 606, West Bengal, India

·         P.O. Mathura Refinery, Mathura - 281 005, Uttar Pradesh, India

·         P.O. Panipat Refinery, Panipat – 132140, Haryana, India

 

 

Corporate Office :

3079/3, J B Tito Marg, Sadiq Nagar, New Delhi – 110049, India

 

 

Pipelines Division :

·         A-1, Udyog Marg, Sector 1, Noida – 201 301, Uttar Pradesh, India

·         14, Lee Rrado, Kolkata - 700 020, West Bengal, India

·         P. O. Box 1007, Bedipara, Morvi  Road, Gauridad, Rajkot - 360 003, Rajasthan, India

·         P. O. Panipat Refinery, Panipat – 132 140, Haryana, India

·         Indian Oil Bhavan, 139 Nungambakkam High Road, Chennai - 600 034, Tamil Nadu, India

 

 

Assam Oil Division :

P.O. Digboi - 786 171, Assam, India

 

 

Marketing Division  :

HEAD OFFICE

 

G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai – 400 051, Maharashtra, India

 

 

·         Indian Oil Bhavan, 1, Aurobindo Marg, Yusuf Sarai, New Delhi - 110 016, India

·         Indian Oil Bhavan, 2 Gariahat Road, South(Dhakuria), Kolkata - 700 068, West Bengal, India

·         254-C, Dr. Annie Besant Road, Prabhadevi, Mumbai - 400 025, Maharashtra, India

·         Indian Oil Bhavan 139, Nungambakkam High Road

 

 

 

Research And Development Division :

Sector 13, Faridabad-121 007, Haryana, India

 

 

IBP Division :

34-A, Nirmal Chandra Street, Kolkata – 700 013, West Bengal, India

 

 

Overseas Offices :

Mr. K. Ramakrishnan, Managing Director

Lanka IOC Limited

20th Floor, West Tower, World Trade Centre, Colombo, Sri Lanka
Tel: 00 94 1 475720, 00 94 1 475700
Fax: 00 9411 2391490
Email: lankaioc@lankaioc.com  

 

Mr. Rajesh Ahuja, Managing Director

Indian Oil (Mauritius) Limited

Mer Rouge, Port Louis, Mauritius
Tel: (230) 217 2710
Fax: (230) 217 2712
Email:indianoil@intnet.mu         

 

Mr. D V Ramana Rao, Managing Director

IOC Middle East FZE
Indian Oil Corporation Limited

Office: LOB 14209, Jebel Ali Free Zone, P. O. Box : 261338, Dubai, UAE

Tel :+971-4-8871397
Fax: +971-4-8871035,
Email: imefdxb@eim.ae

 

DIRECTORS

 

Name :

Mr. Sarthak Behuria

Designation :

Chairman

 

 

Name :

Mr. Arvind Murlidhar Uplenchwar

Designation :

Director [Pipelines]

 

 

Name :

Mr. Jaspal Singh

Designation :

Director [Refineries]

 

 

Name :

Mr. Brij Mohan Bansal

Designation :

Director [Planning and Business Development]

 

 

Name :

Mr. Serangulam Varadarajan Narasimhan

Designation :

Director [Finance]

 

 

Name :

Mr. Anil Razdan

Designation :

Director [w.e.f. 27.02.2006]

 

 

Name :

Mr. Pradeep Kumar Sinha

Designation :

Director

 

 

Name :

Prof. Samir Kumar Barua

Designation :

Director (up to 31.05.2008)

 

 

Name :

Mr. Vineet Nayyar

Designation :

Director (up to 30.04.2008)

 

 

Name :

Mr. Vijai Kumar Agarwal

Designation :

Director (up to 31.05.2008)  

 

 

Name :

Mr. Veeraraghava Ranganathan

Designation :

Director (up to 31.05.2008) 

 

 

Name :

Ms. Priya Mohan Sinha

Designation :

Director (up to 31.05.2008) 

 

 

Name :

Mr. Radhey Shyam Sharma

Designation :

Director

 

 

Name :

Mr. Naresh Kumar Nayyar

Designation :

Director [Planning and Business Development ] [up to 28.10.2005]

 

 

Name :

Mr. Milagiripattu Sundaravaradan Srinivasan

Designation :

Director [up to 02.01.2006]

 

 

Name :

Mr. Prabh Das

Designation :

Director [up to 27.02.2006]

 

 

Name :

Dr. Narasimha Gopaladesikachariar Kannan

Designation :

Director [Marketing] [up to 30.06.2006]

 

 

Name :

Mr. Vishan Chandra Agrawal

Designation :

Director [Human Resources]

 

 

Name :

Mr. Gyan Chand Daga

Designation :

Director [Marketing]

 

 

Name :

Mr. Basavaraj Ningappa Bankapur

Designation :

Director [Refeneries]

 

 

Name :

Mr. Anand Kumar

Designation :

Director [Research and Development]

 

 

Name :

Mr. Pranab Kumar Chakraborti

Designation :

Director (Pipelines)

 

 

Name :

Mr. Sthanunathan Sundereshan

Designation :

Director

 

 

Name :

Mrs. Indira Parikh, Prof. (Dr.)

Designation :

Director

 

 

Name :

Mr. Anees Yusuf Noorani

Designation :

Director [w.e.f.01.06.2008)

 

 

Name :

Mrs. Indu Shahani

Designation :

Director [w.e.f. 01.06.2008)

 

 

Name :

Mr. Gautam Barua

Designation :

Director [w.e.f. 01.06.2008)

 

 

Name :

Mr. Michael John Bastian

Designation :

Director [w.e.f. 01.06.2008)

 

 

Name :

Mr. Nirmal Kumar Poddar

Designation :

Director [w.e.f. 01.06.2008)

 

 

KEY EXECUTIVES

 

Name :

Mr. Raju Ranganathan

Designation :

Company Secretary

 

 

Name :

Mr. A. S. Lamba, IAS

Designation :

Chief Vigilance Officer

 

 

Name :

Mr. M. B. L. Agarwal

Designation :

Executive Director [Internal Audit], Corporate Office

 

 

Name :

Mr. S. C. Agarwal

Designation :

Executive Director [Operations], Pipelines HO

 

 

Name :

Mr. C. Dasgupta

Designation :

Executive Director [Gas], Corporate Office

 

 

Name :

Dr. R. P. Verma

Designation :

Executive Director, R & D Centre

 

 

Name :

Mr. B. R. Choudhary

Designation :

Executive Director , Haldia Refinery

 

 

Name :

Mr. V. P. Sharma

Designation :

Executive Director [Projects], Refineries HO

 

 

Name :

Mr. S. S. Soni

Designation :

Executive Director [Information Systems]

 

 

Name :

Mr. B. K. Sharma

Designation :

Executive Director, Assam Oil Division

 

 

Name :

Mr. P. K. Chakraborti

Designation :

Executive Director, [Business Development – Refineries & Pipelines], Corporate Office

 

 

Name :

Mr. Anand Kumar

Designation :

Executive Director [Indian Oil Institute of Petroleum Management]

 

 

Name :

Mr. B. N. Bankapur

Designation :

Executive Director [Operatoins], Refineries HO

 

 

Name :

Mr. P. K. Goyal

Designation :

Executive Director [Finance], Refineries

 

 

Name :

Mr. V. K. Sood

Designation :

Executive Director [Internal Audit]

 

 

Name :

Mr. R. P. Pandey

Designation :

Executive Director [Strategic Storage], Corporate Office

 

 

Name :

Mr. S. C. Jain

Designation :

Executive Director [Corporate Finance]

 

 

Name :

Mr. J. P. Guharay

Designation :

Executive Director , Mathura Refinery

 

 

Name :

Mr. D. S. Gadhvi

Designation :

Executive Director [Projects], Pipelines HO

 

 

Name :

Mr. R. Narayanan

Designation :

Executive Director [Corporate Affairs]

 

 

Name :

Mr. A. K. Malhotra

Designation :

Executive Director [Projects], Refineries

 

 

Name :

Mr. A. K. Guha

Designation :

Executive Director [Business Development – R and PL)

 

 

Name :

Mr. K. Govindarajan

Designation :

Executive Director [Petrochemicals]

 

 

Name :

Mr. K. K. Gupta

Designation :

Executive Director, Indian Institute of Petroleum Management

 

 

Name :

Mr. T. Vasudevan

Designation :

Executive Director [Business Development – Finance]

 

 

Name :

Mr. Gautam Datta

Designation :

Executive Director [Human Resources], Marketing

 

 

Name :

Mr. S. K. Garg

Designation :

Executive Director [Barauni Refinery]

 

 

Name :

Mr. A. K. Roy

Designation :

Executive Director, Haldia Refinery

 

 

Name :

Mr. Thomas Antony

Designation :

Executive Director [HR], Corporate Office

 

 

Name :

Mr. K. K. Jha

Designation :

Executive Director [Projects], Pipelines

 

 

Name :

Mr. Aloke Roy

Designation :

Executive Director [Exploration & Production], Corporate Office

 

 

Name :

Mr. C. Manoharan

Designation :

Executive Director [Panipat Refinery]

 

 

Name :

Mr. A. M. K. Sinha

Designation :

Executive Director [Retail Sales], Marketing

 

 

Name :

Mr. A. K. Rauniar

Designation :

Executive Director [HR[, Marketing HO

 

 

Name :

Mr. U. K. Basu

Designation :

Executive Director, Gujarat Refinery

 

 

Name :

Mr. K. Rajaram

Designation :

Executive Director [Finance], R and D

 

 

Name :

Mr. Satish Kumar

Designation :

Executive Director [Human Resources]

 

 

Name :

Mr. R. K. Puri

Designation :

Executive Director [Co-ordination), Marketing

 

 

Name :

Mr. D. Lilly

Designation :

Executive Director [Pricing and Taxation]

 

 

Name :

Mr. H. V. Singh

Designation :

Executive Director [Paradip Refinery Projects]

 

 

Name :

Mr. V. S. Okhde

Designation :

Executive Director [Exploration and Production]

 

 

Name :

Mr. R. K. Ghosh

Designation :

Executive Director – Panipat Refinery

 

 

Name :

Mr. N. K. Khosla

Designation :

Executive Director [Panipat Refineries Projects]

 

 

Name :

Mr. Sudhir Bhalla

Designation :

Executive Director [Human Resources] Refinery

 

 

Name :

Mr. Vipin Kumar

Designation :

Advisor (Security)

 

 

Name :

Mr. Rohit Bhardwaj

Designation :

Executive Director (Maintenance and Inspection), Refineries

 

 

Name :

Mr. P L Barua

Designation :

Executive Director, Assam Oil Division

 

 

Name :

Mr. K G Gupta

Designation :

Executive Director, Western Region Pipelines

 

 

Name :

Mr. G Bhanumurthy

Designation :

Executive Director, Guwahati Refinery

 

 

Name :

Mr. N K Bansal

Designation :

Executive Director (Shipping), Refeneries

 

 

Name :

Mr. R K Malhotra

Designation :

Executive Director, R and D

 

 

Name :

Mr. Amitava Chatterjee

Designation :

Executive Director (Lubes), Marketing

 

 

Name :

Mr. Ravinder Sareen

Designation :

Executive Director (Aviation), Marketing

 

 

Name :

Mr. M Nene

Designation :

Executive Director (Supplies), Marketing

 

 

Name :

Mrs. Mrinal Roy

Designation :

Executive Director (LPG), Marketing

 

 

Name :

T K Chatterjee

Designation :

Executive Director (Finance and Explosives), IBP Division

 

 

Name :

Mr. A P Varghese

Designation :

Executive Director (LNG)

 

 

Name :

Mr. A S Ujwal

Designation :

Executive Director (International Trade)

 

 

Name :

Mr. T V Mohan

Designation :

Executive Director, Northern Region Pipelines

 

 

Name :

Mr. S Ramasamy

Designation :

Executive Director (Information Systems)

 

 

Name :

Mr. N Srikumar

Designation :

Executive Director (Corporate Communications, Branding and Planning), Marketing

 

 

Name :

Mr. Anil Tandon

Designation :

Executive Director (Operations), Pipelines

 

 

Name :

Mr. A S Basu

Designation :

Executive Director, Gujarat Refinery

 

 

Name :

Mr. S K Gupta

Designation :

Executive Director (Consumer Sales), Marketing

 

 

Name :

Mr. V K Jaychandran

Designation :

Executive Director, Tamil Nadu State Office

 

 

Name :

Mr. Satwant Singh

Designation :

Executive Director (Engineering and Projects), Marketing

 

 

Name :

Mr. M Ramana

Designation :

Executive Director, Andhra Pradesh State Office

 

 

Name :

Mr. D Sen

Designation :

Executive Director, West Bengal State Office

 

 

Name :

Mr. S C Meshram

Designation :

Executive Director, Gujarat State Office

 

 

MAJOR SHAREHOLDERS

 

(As on 30.06.2008)

 

 

Names of Shareholders

No. of Shares

Percentage of Holding

Shareholding of Promoter and Promoter Group2

 

 

Indian

 

 

Central Government/ State Government(s)

958077855

80.35

 

 

 

Public shareholding

 

 

Institutions

 

 

Mutual Funds/ UTI

14309657

1.20

Financial Institutions/ Banks

946720

0.08

Central Government / State Government(s)

1350000

0.11

Insurance Companies

37960243

3.18

Foreign Institutional Investors

20594301

1.73

 

 

 

Non-institutions

 

 

Bodies Corporate

110877363

9.30

Individual-
Individual shareholders holding nominal share capital up to Rs.0.100 million

33407123

2.80

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

731004

0.06

Any Other (specify)

 

 

Non-resident Indians

507704

0.04

Trusts

13087493

1.10

Clearing Members

505307

0.04

Custodian of Enemy Property

19536

0.00

Total

1192374306

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Selling of petroleum products.

 

 

Products :

Product Description                                        

Item Code No.

Bulk Petroleum Products                                   

27.10

Crude Oil                                                            

27.09

Lubricants                                                         

2710.90

 

·         Auto Gas

·         IndianOil Aviation Service                                                                                                       

·         Bitumen

·         High Speed Diesel

·         Bulk/Infustrial Fuels

·         Indane Gas

·         SERVO lubricants and greases

·         Agricultural Spray Oils

·         Automotive Greases

·         Automotive Lubricating Oils

·         Automotive Speciality Oils

·         Industrial Greases

·         Industrial Lubricating Oils

·         Industrial Speciality Oils

·         Metal Working Oils
 
PRODUCTION STATUS

 

As on 31.03.2008

(Rs. In Millions)

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Crude Processing

MTs

45.000

47.350

42.889

Lubricating Oil                Note C

                                       Note E

MTs

0.254

0.375

0.254

0.307

0.319

0.109

Wax/Bitumen/Asphalt Lube Oil Drums

Nos.

1.500

1.500

0.429

Oxygen Plant

CU.M.

NA

0.084

0.00

Propylene Recovery Unit

MTs

0.054

0.048

0.013

MTBE Unit

MTs

0.048

0.037

0.026

Butene Plant

MTs

0.017

0.017

0.00

Lab Plant

MTs

0.120

0.120

0.133

PX /PTA Plant

MTs

0.553

0.553

0.404

Cryocontainer and Accessories

Nos.

0.013

0.017

0.019

Industrial Explosive (Cartridge)

MTs

0.050

0.020

0.005

Site Mixed Slurry Explosives

MTs

0.106

0.099

0.038

 

Notes:

 

A. i) Licenced Capacity of Refinery is not specified for Assam Oil Division.

    ii) Capacity for projects under construction not considered.

   iii) Licenced Capacity of Drum plant of Assam Oil Division is not included as the same has been   dismantled during the year  

B. As certified by the Management and relied upon by the auditors.

C. Per year operating in single shift.

D. i) Represents finished petroleum products.

    ii) Excludes crude processed in secondary units for other companies/refiners

E. Per year operating in two shifts.

F. Capacity for Detonating Fuse and Cast Boosters have not been shown, being negligible.

 

 

GENERAL INFORMATION

 

No. of Employees :

31945

 

 

Bankers :

·         State Bank of India

·         United Bank of India

 

 

Facilities :

 

As on 31.03.2008

[Rupees in Millions]

SECURED LOANS :

 

Bonds

 

Non-Convertible Redeemable Bonds – V

2844.000

Non-Convertible Redeemable

Bonds – VI

10000.000

Non-Convertible Redeemable Bonds – VII B

5000.000

 

 

Loans and Advances from Banks :

 

Cash Credit

20063.800

Interest accrued and due on above

0.000

Loans and Advances from Others :

 

Loan through Collateralized Borrowings and Lending Obligation [CBLO] of Clearing Corporation of India Limited [CCIL]

26250.000

Total

64157.800

 

 

Note:

 

  • 158 Bonds of face value of Rs.26000000 each alloted on 18th July 2001, are redeemable in 13 equal instalments from the end of 3rd year upto the end of 15th year from the date of allotment. Accordingly, 4th instalment was paid in July 2007. The Bonds carry a coupon rate of 10.25% per annum payable annually on 30th September. These are secured by way of legal mortgage over the company’s premises no. 301 situated in Bandra Anita Premises Co-op. Housing Society Limited at Bandra, Mumbai together with 5 shares of Bandra Anita Premises Co-op. Housing Society Limited These bonds are also secured by way of charge on immovable properties at Panipat Refinery in the state of Haryana ranking pari-pasu with Bond series VI holders.

 

  • 10000 Bonds of face value of Rs.1000000 each, allotted on 10th June 2005, are redeemable at par on 10th June 2012. The Bonds also carry a put/call option at the end of 5 years from the date of allotment i.e. 10 th June 2010, on exercise of which the Bonds are redeemable at par. The Bonds carry an annual coupon rate of 7.15% payable annually on 30th June. These are secured by way of of registered mortgage over company’s premises no. 1343 situated at MIG Adarsh Nagar Co-op Housing Society Limited at Worli, Mumbai-400 025 together with 5 shares issued by MIG Adarsh Nagar Co-op Housing Society Limited These Bonds are also secured by way of charge on immovable properties of the Company at Panipat Refinery in the state of Haryana ranking pari passu with Bonds series V holders.

 

  • 5000 Bonds of face value of Rs.1000000 each, allotted on 15th September 2005, are redeemable at par on 15th September 2015. The Bonds carry an annual coupon rate of 7.40% payable annually on 15th September. These are secured by way of registered mortgage on the immovable properties of the Company at Gujarat Refinery situated at Vadodara in the state of Gujarat.

 

  • Against hypothecation by way of first pari-passu charge on raw materials, stock-in-trade, sundry debtors, outstanding monies, receivables, claims, contracts, engagements etc.

 

  • Secured against Collateral security of (i) Rs.3980.000 millions of 7.33% Oil Companies GOI Special Bonds 2009, (ii) Rs.11830 millions of 8.13% Oil Marketing Companies GOI Special Bonds 2021 (iii) Rs. 4280.200 millions of 8.20% Oil Marketing Companies GOI Bonds 2024 and (iv) Rs.15131.900 millions 8.40% Oil Marketing Companies GOI Special Bonds 2026 with CCIL amounting totally to Rs.35222.100 millions.

 

 

 

UNSECURED LOANS :

As on 31.03.2008

[Rs.  in Millions

Public Deposits

15.400

Short Term Loan and Advances

 

Form Banks and Financial Institution

 

a] In Foreign Currency US $ 2177.41 Million

87346.900

B] In Rupee

107650.000

Export Packing Credit

 

In Foreign Currency US $ NIL

0.000

Total

194996.900

 

 

Other Loan and Advances

 

From banks and Financial Institutions

 

[a] Canara Bank

0.000

[b] BNP Paribas Syndication : US $ 300 Million 1,304.40 (2007 :US $ 300 Million) (US $ 50 million repayable in (Jan’ 2011, US $ 2 5 million in Feb’ 2011, US $ 100 Million in Mar’ 2011, US $ 50 million in Apr’ 2011, US $ 25 million in each of the months of May 2011, June 2011 and July 2011).

12034.500

[c] 6.12% Senior Note, (Bank of America)

(US $ 300 Million repayable, US $ 100 Million in Aug’ 2016 US $ 100 Million in Aug’ 2017 & US $ 100 in Aug’ 2018)

12034.500

d) BNP Paribas Syndication:US $ 200 Million (2007 :US $ 200 Million) (Repayable in equivalent JPY US $ 70 Million in Jan’ 2010, US $ 60 Million in Feb’ 2010 and US $ 70 Million in Mar’ 2010)

8023.000

 

 

e) Leaseplan North America Inc: US $ 42.57 million (2007: US $ 48.25 million) (fully guaranteed by Export Import Bank of US and repayable in 20 half yearly installment w.e.f. Mar’ 2006) (amount repayable within one year Rs.227.700 millions)

1708.000

 

 

Total

33800.000

 

 

In Rupee

 

a) Citibank Bank (repayable in 4 equal half yearly installment w.e.f. November 2006, amount repayabale within one year Rs. 500 Millions)

500.000

b) Corporation Bank (repayable in June 2008)

3000.000

c) Union Bank of India (repayable in August 2008)

5000.000

d) IDBI (repayable in October 2014)

5000.000

e) IDBI (repayable in 5 equal half yearly installments

w.e.f. May'06. Amount repayable within one year Rs. 1000 Millions)

1000.000

f) State Bank of India (repayable in March 2009) ;

5000.000

Add: Interest accrued and due

22.900

Total

19522.900

 

 

From Others

 

a) OIDB (Repayable in 8 equal annual installments

w.e.f. May'05) (amt payable within one year  Rs. 1088.800 Millions

5443.700

b) OIDB (Repayable in 8 equal annual installments

w.e.f. Sept'07) (amount payable within one year Rs. 1185.000 Millions

8295.000

c) OIDB (Repayable in Sept'07)

0.000

d) OIDB (Rs. 2950 Millions repayable in June' 2009,

Rs. 770 Millions repayable in July'2009 and

Rs. 8459.000 Millions repayable in March 2010, Rs. 571.000 millions in April 2010, Rs.2750 millions in Mar’ 2011, Rs. 2750 millions in Mar’ 2012, Rs. 5500 millions in April 2012, Rs.2500 millions in Oct’2012 and Rs. 2750 millions in Mar’2013)

29000.000

Total

42738.700

Total of 4

291073.900

 

 

 

Banking Relations :

Good

 

 

Auditors :

Statutory Auditors

·         Suresh Chandra and Associates

Chartered Accountants

 

·         M. M. Nissim and Company

Chartered Accountants

 

·         K. K. S. and Company

Chartered Accountants

 

Branch Auditors

 

·         S. K. Kapoor and Company

Chartered Accountants

 

·         S. Mohan and Company

Chartered Accountants

 

·         Sarma and Company

Chartered Accountants

 

·         Mehra Goel and Company

Chartered Accountants

 

·         M. R. Narain and Company

Chartered Accountants

 

·         Guha Nandi and Company

Chartered Accountants

 

·         De Chakraborty and Sen

Chartered Accountants

 

·         Deoki Bijay and Company

Chartered Accountants

 

·         Shah Merchant and Associates

Chartered Accountants

 

 

Joint Ventures :

·         Indian Oiltanking Limited

Date of Incorporation : 28.08.1996

Promoters and Equity : IOC: 50%
Oiltanking
GmbH: 50%

 

·         Lubrizol India Private Limited

Date of Incorporation : Existing Company restructured w. e. f. 01.04.2000

Promoters and Equity : IOC: 50%
Lubrizol Corporation
USA: 50%

 

·         Petronet VK Limited

Date of Incorporation : 21.05.1998

Promoters and Equity : IOC, PIL : 26% each,
RPL, EOL : 13% each,
SBI, KPT, GIIC, IL and FS : 05% each,
CB : 02%

 

·         Petronet CI Limited

Date of Incorporation : 07.12.2000

Promoters and Equity : IOC, PIL, RPL : 26% each
 EOL, BPC: 11% each

 

·         Indian Oil Petronas Private Limited

Date of Incorporation : 03.12.1998

Promoters and Equity : IOC: 50%
Petronas,
Malaysia: 50%

 

·         Indian Oil Panipat Power Consortium Limited

Date of Incorporation : 06.10.1999

Promoters and Equity : IOC: 50%
MC: 50%

 

·         Avi-Oil India Private Limited

Date of Incorporation : 04.11.1993

Promoters and Equity : IOC: 25%
Balmer Lawrie: 25%
NYCO SA,
France: 50%

 

·         Petronet India Limited

Date of Incorporation : 26.05.1997

Promoters and Equity : IOC, BPC, HPC : 16% each, RPL, IL&FS, ICICI, SBI, EOL : 10% each,
IBP : 02%

 

·         Petronet LNG Limited

Date of Incorporation : 02.04.1998

Promoters and Equity : IOC, BPC, GAIL,ONGC : 12.5% each,
Gaz de France International : 10%,
Asian Development Bank : 5.2%,
Public Issue : 34.8%

 

·         Green Gas Limited

 

·         IndianOil Panipat Power Consortium Limited

 

·         Petronet CI Limited

 

·         Indo Cat Private Limited

 

·         IndianOil SkyTanking Limited

 

·         Suntera Nigeria 205 Limited (w.e.f. 07.02.2007)

 

 

Associates :

Indo Mobil Limited

Petronet CTM Limited

Petronet CIPL Limited

Indian Oil TCG Petrochem Limited

 

 

Subsidiaries :
  • Indian Oil Blending Limited, Pir Pau, Trombay, Mumbai – 400074, Maharashtra, India

 

  • Indian Oil Mauritius Limited, Suite 619, Level 6, St. James Court Denis Street, Port Louis, Mauritius

Line of Business: Terminating, Retailing and Aviation refueling

 

  • Chennai Petroleum Corporation Limited, 536, Anna Salai, Teynampet, Chennai – 600018, Tamil Nadu, India

Line of Business: Refining

 

  • Bongaigaon Refinery and Petrochemicals Limited, P.O. Dhaligaon, District Bongaigaon, Assam – 783385, India

Line of Business: Refining and Petrochemicals

 

  • IBP Company Limited, IBP House, 34-A, Nirmal Chandra Street, Kolkata – 700013, West Bengal, India

 

  • Lanka IOC Limited, World Trade Centre, 20th Floor, West Tower, Colombo, Sri Lanka

Line of business: Retailing, Terminating and Bunkering

 

  • Indian Oil Tanking Limited

 

  • Indian Strategic Petroleum Reserves Limited

 

  • IOC Middle East FZE, LOB 14209, Jebel Ali Free Zone, P. O. Box 261338, Dubai, UAE

Line of Business : Lube blending and marketing of petroleum products

 

 

Membership :

Confederation of Indian Industry

 

 

Group Companies :

·         Bongaigaon Refinery and Petrochemicals Limited

P.O. Dhaligaon, Dist. Chirang, Assam – 783 385, India

 

·         Chennai Petroleum Corporation Limited

536, Anna Salai, Teynampet, Chennai – 600 018, Tamilnadu, India

 

·         IndianOil Technologies Limited

SCOPE Complex, Core-27, Institutional Area, Lodhi Road, New Delhi – 110 003, India

 

·         IndianOil (Mauritius) Limited

Mer Rouge, Port Louis, Mauritius

 

·         IOC Middle East FZE

LOB 14209, Jebel Ali Free Zone, P.O.Box: 261338

 

·         Lanka IOC PLC

Lanka IOC Head Office, Level 20, West Tower, World Trade Center, Echelon Square, Colombo – 01, Sri Lanka.

 

 

CAPITAL STRUCTURE

 

(As on 31.03.2008)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

2500000000

Equity Shares

Rs.10/-

Rs.25000.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1192374306

Equity Shares

Rs.10/-

Rs.11923.700 millions

 

Out of which:

 

1) Shares allotted as fully paid without payment being received in cash:

a) Pursuant to the Petroleum Companies Amalgamation Order, 1964: 37649700 Shares of Rs. 10 each

b) Pursuant to Gujarat Refinery Project Undertaking (Transfer), (Amendment) Order 1965 : 10000000 Shares of Rs. 10 each

 

2) Shares allotted as fully paid up Bonus Shares by Capitalisation of General Reserve: 1066295000 shares of Rs.10 each

 

3) 24362106 no. of Equity shares of Rs. 10 each issued during the year as fully paid up to the  shareholders of erstwhile IBP Company Limited As per the Scheme of amalgamation

 

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

11923.700

11680.100

11680.100

2] Share Capital Suspense Account

0.000

243.600

0.000

3] Reserves & Surplus

398938.800

336649.200

281346.600

4] (Accumulated Losses)

0.000

0.000

0.000
NETWORTH

410862.500

348572.900

293026.700

LOAN FUNDS

 

 

 

1] Secured Loans

64157.800

56714.200

77935.400

2] Unsecured Loans

291073.900

214112.700

186107.700
TOTAL BORROWING

355231.700

270826.900

264043.100

Deferred Tax Liability (Net)

53848.200

53797.000

44229.400
 

 

 

 
TOTAL

819942.400

673196.800

601299.200

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS  AND INTANGIBLE ASSETS [Net Block]

327718.200

333702.200

250234.200

Dismantled Capital Stores

175.700

174.100

252.700

Capital work-in-progress

91526.500

43768.900

96200.300

 

 

 

 

INVESTMENTS

215357.800

199908.600

145213.900

Advances for Investments

105.000

70.000

50.00

Finance Lease Receivables

310.100

487.300

705.700

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

Inventories

309414.800

247026.900

242777.900

Sundry Debtors

68192.300

67360.600

66994.800

Cash & Bank Balances

8244.300

9259.700

7441.700

Other Current Assets

7901.400

7753.500

315.500

Loans & Advances

135560.200

59171.000

47301.000

Total Current Assets

529313.000

390571.700

364830.900

Less: CURRENT LIABILITIES & PROVISION

 

 

 

Current Liabilities

334079.900

265767.600

236978.500

Provisions

11729.900

31291.100

19785.100

Total Current Liabilities

345809.800

297058.700

256763.600
Net Current Assets

183503.200

93513.000

108067.300

 

 

 

 

MISCELLANEOUS EXPENSES

1245.900

1572.700

575.100
 

 

 

 
TOTAL

819942.400

673196.800

601299.200

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Sales Turnover

2703460.100

2382965.400

1928175.300

Other Income

46036.900

64351.300

29394.300

Total Income

2749497.000

2447316.700

1957569.600

 

 

 

 

Profit/(Loss) Before Tax

100804.000

104850.000

67059.900

Provision for Taxation

31178.200

29855.300

17908.700

Profit/(Loss) After Tax

69625.800

74994.700

49151.200

 

 

 

 

Earnings in Foreign Currency :

 

 

Export of Crude Oil, LAB and Petroleum Products

114218.400

90687.700

 

Interest

99.800

106.400

 

Income from Consultancy Services

40.100

22.900

 

Income from Royalty

3.000

4.500

 

Commodity Hedging

161.300

433.100

 

Others

16.700

7.700

 

Total Earnings

114539.300

91262.300

56175.600

 

 

 

 

 

 

 

 

Imports :

 

 

Raw Materials

75.000

111.100

 

Stores & Spares

1861.100

1528.900

 

Capital Goods

659.100

1074.900

 

Others

1063020

874061.600

 

Total Imports

1065615.200

876776.500

681959.900

 

 

 

 

Expenditures :

 

 

 

 

Raw Materials

2224057.900

1925885.900

1581522.300

 

Excise Duty

235824.900

218495.200

186592.400

 

Power & Fuel Cost

4987.600

4153.000

3350.600

 

Other Manufacturing Expenses

75116.700

69613.800

60258.200

 

Employee Cost

28932.200

25853.700

18441.600

 

Selling and Administration Expenses

38057.800

32521.500

27136.200

 

Miscellaneous Expenses

18302.500

22875.500

6659.200

 

Interest & Financial Charges

15897.300

15357.700

10527.900

 

Depreciation

27097.000

25903.100

22014.600

 

Increase/(Decrease) in Finished Goods

(19580.900)

1807.300

(25993.300)

 

Total Expenditure

2648693.000

2342467.000

1890509.700

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2008

 Type

 1st Quarter

 Sales Turnover

 883996.000

 Other Income

 7489.700

 Total Income

 891485.700

 Total Expenditure

 874393.500

 Operating Profit

 17092.200

 Interest

 6142.300

 Gross Profit

 10949.900

 Depreciation

 6726.300

 Tax

 72.300

 Reported PAT

 4151.300

 

 

KEY RATIOS

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Debt-Equity Ratio

0.82

0.83

0.79

Long Term Debt-Equity Ratio

0.36

0.43

0.38

Current Ratio

0.85

0.85

0.88

TURNOVER RATIOS

 

 

 

Fixed Assets

4.84

4.84

4.61

Inventory

9.72

9.73

8.81

Debtors

39.88

35.47

31.13

Interest Cover Ratio

7.34

6.69

7.37

Operating Profit Margin(%)

5.32

5.4

5.17

Profit Before Interest And Tax Margin(%)

4.32

4.31

4.02

Cash Profit Margin(%)

3.58

3.71

3.69

Adjusted Net Profit Margin(%)

2.58

2.62

2.55

Return On Capital Employed(%)

16.88

17.51

15.69

Return On Net Worth(%)

18.34

19.47

17.78

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

 

Subject, India's largest commercial ISO-9002 certified enterprise and as a leading public sector enterprise of India, is the highest ranked Indian company in the prestigious Fortune 'Global 500' listing. Subject is the 20th largest petroleum company in the world. Established in 1959 as Indian Oil Company Limited, subject was formed in 1964 with the merger of Indian Refineries Limited (Estd. 1958). It was originally incorporated as subject in the year 1964. Subject and its subsidiaries account for 47% petroleum products market share, 40.4% refining capacity and 67% downstream sector pipelines capacity in India. Subject a traditional manufacturer of refined petroleum products, the new building blocks for global ambition of the corporation are the Petrochemicals, Natural Gas, Exploration and Production, Overseas Business, Consultancy, Biofuels and Hydrogen, etc.,  

 
The IndianOil Group of companies owns and operates 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, i.e., 1.2 million barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation Ltd. (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRPL). IndianOil reaches precious petroleum products to millions of people everyday through a countrywide network of about 32,500 sales points. They are backed for supplies by 170 bulk storage terminals and depots, 101 aviation fuel stations and 89 Indane LPG bottling plants. The 10 refineries are located at Guwahati, Barauni, Koyali, Haldia, Mathura, Digboi, Panipat, Chennai, Narimanam, and Bongaigaon.

 
Indian Oil Blending Limited a wholly owned subsidiary was merged with IndianOil on May 2006. IndianOil transferred its entire equity holding in Indian Strategic Petroleum Reserves Ltd (ISPRL) to the Oil Industry Development Board, a government body functioning under the Ministry of Petroleum and Natural Gas. Consequently, ISPRL ceased to be a wholly owned subsidiary on May 2006. Formed another one subsidiary company viz., IOC Middle East FZE, in Jebel Ali Free Trade Zone Dubai, with the objective of marketing lubricants and other petroleum products in Middle East, Africa and CIS regions. A joint venture company Indo-Cat Pvt. Ltd was incorporated in June 2006. The company is a 50:50 venture between IndianOil and Intercat.Inc of USA for manufacture and marketing of FCC catalysts and additives.  
 
 In 2007, the corporation received plenty of awards, Oil Industry Safety Directorate Awards, 'Most Admired Retailer of the Year' award, `CIO 100 Award 2007', SAP ACE - Awards for Customer Excellence and the only petroleum company as `The Most Trusted Brand' in ET's Brand Equity's annual survey. The SERVO acquires prestigious MAN Global approvals, IndianOil's R&D Centre gets special recognition for Bioremediation and also SERVO secures entry into NSF White Book - H1 Category during the period. As of November 2007, IndianOil, India's leading Fortune Global 500 Company has taken a significant step in promoting Bio-Diesel as a green fuel by entering into a Memorandum of Understanding (MoU) with the Government of Chattisgarh. IndianOil- R&D Centre Awarded the coveted WIPO GOLD MEDAL in 2008, IndianOil wins Retailer of the Year - Rural Impact Award and IndianOil's XtraPower wins Loyalty Summit Award in the same year 2008.

 
As on January 2008, IndianOil and Hindustan Unilever Limited (HUL) signed an MoU here today for setting up Kwality Walls Kiosks at select IndianOil petrol stations across the country and also during the same month and year the corporation entered into a Memorandum of Understanding (MoU) with Transparency International India (TII) for implementing an Integrity Pact Programme focused on enhancing transparency in its business transactions, contracts and procurement processes. As of March 2008, a step towards ensuring the energy security and sustained economic growth of the nation, IndianOil, in its growth-oriented Memorandum of Understanding (MoU) with the Government of India for the year 2008-09, has focused its efforts on ushering in cleaner and sustainable energy resources. IndianOil's `LNG at Doorstep' facility launched in April 2008 at the Pen unit of H and R Johnson, the facility, first of its kind in the country, is primarily aimed at catering to the needs of Liquefied Natural Gas (LNG) customers who are not located on the main natural gas pipelines, the project covers Rs 290 millions.  
 
IndianOil has ambitious investment plans of Rs. 432500 millions in the next five years. Further new project of the corporation are as Panipat-Jalandhar LPG Pipeline cost of Rs.1867.200 millions, which will be commissioning on August 2008, Project consists of laying a 10" diameter 275 KM long LPG pipeline from Kohand (near Panipat refinery) in Haryana to Jalandhar via Nabha in Punjab. Another one new project namely Koyali -Ratlam Product Pipeline with cost of Rs. 3229.200 millions expected to be commissioning on October 2008. The pipeline will facilitate effective evacuation of products from Koyali refinery and ensure cost-effective and reliable transportation of products to Central India and northwest UP and the project consists of laying 16-inch diameter 274 km long product pipeline from Koyali refinery to Ratlam, where a new terminal is to be constructed on re-sitement basis.

 
The corporation plans to expand its Panipat Refinery from 12 Mmtpa To 15 Mmtpa costing Rs. 8060 millions on December 2008 and also in the same period plans to augmentation of Mundra - Panipat Crude Oil Pipeline with project cost of Rs. 2047.400 millions. Apart from the above said, some long term projects are awaiting to begin in future. All are under schemes for improvement and increased profitability through de bottlenecking / modifications / introduction of value added products are being taken up in addition to grassroots facilities. Project systems have been streamlined in line with ISO standards.  
 
Subject, the flagship national oil company in the downstream sector is currently implementing a master plan envisaging by the year 2011-12 in petrochemicals, which covers Rs.300000 millions (US$ 6.8 billion) of investment. Through the world-scale Linear Alkyl Benzene (LAB) plant set up at its Gujarat Refinery, the corporation has already captured a significant market share in India besides exporting the product to Indonesia, Turkey, Thailand, Vietnam, Norway and Oman. IndianOil is also committed to the Global Compact Programme of the United Nations and endeavours to abide by the 10 principles of the programme initiative under CSR.

OPERATIONS: 
 
Refineries:  
 
IndianOil refineries achieved a record crude oil throughput of 47.40 MMT during the year, surpassing the previous best of 44 MMT during 2006-07. The seven refineries together achieved a capacity utilisation of over 100% and an overall distillate yield of 73.8% wt. They also achieved record overall production of LPG, petrol, aviation turbine fuel, kerosene, diesel, linear alkyl benzene (LAB) and bitumen during the year. 
 
 Pipelines: 
 
The Pipelines Division continued to better the best' performance by registering the highest ever operational throughput of 57.12 MMT of crude oil and petroleum products and commissioning new facilities. 
 
During the year, the crude oil blending facility at Mundra as well as the product dockline from the Narimanam terminal to the Chennai Petroleum Corporation Ltd. (CPCL) jetty at Nagapattinam were commissioned. The augmentation of the Bongaigaon-Siliguri section of the Guwahati-Siliguri pipeline also went online during the year with the erection and commissioning of new mainline pumping units at Bongaigaon and Madarihat. 

 
Marketing: 
 
IndianOil's Marketing Division maintained its dominant status in the downstream sector, registering a growth of 8.3% in sales during the year as against industry growth of 6.3%. The Corporation sold 57.55 MMT of petroleum products as against 53.36 MMT in the previous year. In addition, sale of natural gas has increased to 1.74 MMT from 1.48 MMT in the previous year and exports went up to 3.33 MMT as against 3.13 MMT in the previous year.

 
The Corporation maintained its market leadership in terms of volumes for branded fuels with a cumulative conversion rate of 24.5% and market share of 45.5% for Xtra Premium petrol and a conversion rate of 15.8% and market share of 58% for Xtra Mile diesel. With its customer-centric approach, your Corporation upgraded 942 retail outlets to XtraCare standards, taking the total XtraCare network of retail outlets to 1,994. The XtraPower fleet card continued its dominance with its usage increasing by 26%.  

MANAGEMENT'S DISCUSSION AND ANALYSIS: 

INDUSTRY STRUCTURE AND DEVELOPMENTS: 

Global: 

The world economy was witness to many new developments during the year 2007-08. A period of robust growth was followed by fears of a slowdown. There was a modest slowdown in the growth rate, with most of it emanating from high-income countries led by the United States. The slow growth was to a large extent offset by the continued high growth in the emerging and developing economies, led by China and India. The performance of the developing countries is attributed to their internal growth as well as to their increasing competitiveness in an integrated global economy. There is a growing trend towards intra-regional trade, making the growth of developing economies less dependent on the advanced economy markets. This points to the changing dynamics of overall growth and a possible shift to a multi-polar world. 
 
The slowdown in the advanced economies came in the face of a major financial crisis triggered by the sharp drop in market valuations of US sub-prime mortgage-backed securities. The ripples spread across all the segments in the financial markets. Further, it had repercussions on the commodity markets too, with flight of money from the weakening financial markets to commodity markets.  

Food, energy and metal prices surged to historic high levels, making inflation a major cause of concern across the globe. The problems were further exacerbated by the high volatility in the commodity markets. Apart from the financial market repercussions, strong demand growth, especially in the emerging economies, was a major reason behind the turbulence. In addition, there also seemed to be a lot of evidence pointing towards the linking of food markets to the surging oil markets through the growing use of food crop-based bio-fuels. This has, in turn, spurted a new food vs. fuel debate.

During year, with the depreciation of the US Dollar, Euro, already a credible competitor, further consolidated its position and appears to have made the threat to end Dollar dominance more real.  

India: 

The performance of the Indian economy was robust during the year. It continued to be one the fastest growing large economies, drawing its strength from strong fundamentals such as high investment and savings rates and productivity growth. However, the economy was affected by downward pressures arising out of slowing global economic activity, hardening of interest rates and infrastructure constraints. The pace of economic growth consequently slowed down to 9.0%, from 9.6% in the previous fiscal. Inflationary pressures, after being subdued for most of the year, flared up in the fourth quarter of 2007-08. 
 
India's Balance of Payments position continued to be comfortable. Exports, after witnessing a slowdown in the initial part of the year, maintained an overall momentum, led by petroleum products. Imports grew at a faster pace, resulting in widening of the trade deficit. Although growth in services exports decelerated on account of slowdown in the US and appreciation of the Rupee, the overall surplus on the invisibles account was maintained. 

The year marked the beginning of the XI Five Year Plan, which aims to restructure policies and to provide opportunities based on a broad-based vision for inclusive growth of the economy at a rate of 9% during the Plan period. The major challenges to attain this target, as were faced during the year, are revival of dynamism in agriculture, removal of infrastructure bottlenecks, inflation control, macroeconomic stability, continued growth in investments, human resource development, competitiveness in world trade, etc. 

OUTLOOK:  
 
Global Oil and Gas Industry: 

The international oil market is going through turbulent times, with crude oil prices continuing to set new highs at a breath-taking frequency, and exhibiting high volatility. Tight supply-demand balance emanating from strong growth in demand, especially from the emerging economies, coupled with lagged supply response and the resultant fall in inventories, was a major cause for the price runup. In addition, geo-political tensions, weakening of the US dollar against major currencies and flight of money from financial markets into commodities are seen to have contributed to northward price movement and volatility. 
 
With natural gas increasingly replacing liquid fuels, the rising trend of crude oil prices led to corresponding rise in natural gas prices. Supplies remained tight and upstream projects under development have been subject to rising costs and increasing delays. The slow pace of development of pipelines remains an area of concern. As regards the LNG (Liquefied Natural Gas) market, the business is now changing rapidly with the coming up of new export facilities in several countries in the past couple of years. In 2007, 16 countries exported natural gas in the form of LNG to 17 importing countries. International trade reached the equivalent of more than 7.99 trillion cubic feet of natural gas in 2007. 

With fossil fuels predicted to remain the dominant source of energy in the near future and there being no major enhancement of supplies through new discoveries, the investment decisions in the entire hydrocarbon value chain are bound to be of greater concern. The investments in the oil & gas sector have been traditionally influenced to a large extent by various geo-political issues, resource nationalism, policy inducements, infrastructure constraints, rising costs, supply chain logistics, etc., besides exploration prospects.  
 
Given the slow pace of discoveries and continuation of volatility in crude oil prices in the near future, the emerging and oil importing economies are bound to face over-heating pressures in their domestic economy and external imbalances, which may ultimately lead to a dent in their economic growth.  
 
The emerging risks and vulnerabilities associated with climate change have become a major threat to the existing global economic model. The seizing moment of this global issue is linked to the Carbon budget analysis. In order to, therefore, mitigate the climate shocks, the hydrocarbon sector is particularly reposed with the onerous task of developing a sustainable business model to contain the global emissions pathway. 

Indian Oil and Gas Industry: 

India, today ranks as the world's seventh largest energy producer, accounting for about 2.5% of the global energy production per year. It is also the world's fifth largest energy consumer, accounting for about 3.45% of the global energy consumption. The hydrocarbon sector plays a pivotal role in the Indian energy sector, with its share in the commercial energy amounting to about 45%, with oil at about 36% and gas at 9%. 
 
To meet the requirements of the growing economy, huge investments are required in the Indian hydrocarbon sector. According to International Energy Agency estimates, India needs to invest US$ 233 billion in its oil & gas sector over the period 2006-2030. Of this, US$169 billion is required for the oil sector. Three- quarters of the investment will be absorbed by the refining sector and the rest by the upstream sector. As regards the gas sector, the investment requirement has been estimated at US$ 63 billion. More than 90% of the investment in this sector would be oriented towards developing upstream capacities as well as transport & distribution infrastructure and the rest would flow to LNG re-gassification plants.  
 
Domestic demand of petroleum products and LNG was buoyant and, in fact, grew at a much faster pace, registering a growth of 7.6% to reach 128 million metric tonnes (MMT) of sales during the year with a corresponding crude throughput of 156 MMT by the Indian refineries. With surplus refining capacity induced by favourable export opportunities, the industry registered significant growth in export sales during the year. As a result of stagnating domestic crude oil production at a level of 34 MMT and rising refinery capacity for meeting the domestic and export demand, crude oil imports during the year rose by 9%. India's current import of crude oil is more than 75% of its total requirements and in line with the current trend, it is expected to increase further in future.

Concerns for energy security in the growing economy open up a series of challenges and opportunities in the hydrocarbon sector, which can be broadly categorised as follows: 

 (i) Encouraging new oil and gas finds within the country and intensifying search for overseas equity sources  
  (ii) Developing a pan-India gas market with focus on enabling infrastructure 

(iii) Creating a competitive hydrocarbon market  

(iv) Rationalising subsidies for Petrol, Diesel, Kerosene for public distribution system and LPG for domestic use 

(v) Attracting investments in associated infrastructure such as ports, storage, pipelines, etc. 

(vi) Promoting energy efficiency and conservation 

The Government has further liberalised its FDI (Foreign Direct Investment) policy during the year in refining and marketing activities. Whereas FDI up to 100% was already allowed through the automatic route in the private refining sector, in the public sector, the limit was 26% subject to FIPB (Foreign Investment Promotion Board) approval, which has now been increased to 49%. In the marketing segment, the Government has removed the conditionality of 26% dilution of equity. 

Production of natural gas during the year stood at 32.3 billion cubic metres (bcm), rising marginally from the production level of 2006-07. India has been importing LNG since 2004 and import volumes have been increasing steadily. In addition, India is increasingly being viewed as an aggressive spot LNG buyer. The recent gas discovery in the Krishna-Godavari (KG) Basin has also raised hopes of increase in domestic natural gas production in the future. The Iran-Pakistan-India pipeline proposal, after a long period of uncertainty, now seems to be moving forward. As regards the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline, India's prospects as a partner are now looking brighter. The recent approval of a marketevolved price for the gas from the Krishna-Godavari basin has set a good precedent for the development of market-determined pricing for natural gas in the country. 

Internationally, the petrochemicals industry has been one of the drivers of industrial development, constituting 40% of the global chemicals market. World over, the petrochemicals industry is integrated with the refineries/gas sector. Since the 1980s, the epicentre of the global petrochemicals industry has shifted from West of Suez to East of Suez, largely due to the availability of crude oil and natural gas in the Middle East and the growth of consumption centres in Asia, which has a large population base. Although India's present petrochemicals production and consumption is small by global standards, it is amongst the fastest growing markets in the world. India's per capita consumption is 5 kg as against the world average of 25 kg. According to the assessment of the Working Group on the Petrochemicals Sector for the XI Plan, the demand for polymers in the country has the potential to reach 12.5 MMT by the end of the XI Plan, growing at a CAGR (cumulative annual growth rate) of 18%, necessitating commissioning of five additional crackers of 1 MMT average size with investments of US$ 8 billion, and additional investments of US$ 6 billion in the downstream associated polymer & speciality petrochemical units. 

During 2007-08, to ease the financial burden on the public sector oil marketing companies (OMCs) arising out of controlled domestic prices of petrol, diesel, PDS kerosene and domestic LPG in the face of spiralling crude oil and petroleum product prices in the international market, the Government of India had raised the prices of petrol and diesel marginally. Besides this, the Government also issued oil bonds to the OMCs to partially compensate for the losses suffered by them on account of inadequate pass-through of prices to the consumers. The prevalent scheme of subsidies and pricing has resulted in a huge price-insensitive demand expansion for these products. 

Looking at the prospects of alternative fuels in India, the Indian biofuels programme seems to hold good prospects. Unlike the conversion of food into bio-fuel, which has created controversy in the international food prices, the Indian bio-fuels programme is based on non-edible plants. Moreover, since these plants can be grown in arid and wastelands, the opportunity cost of these plantations would be quite low. Efforts are also on to develop Hydrogen as a substitute for traditional fuel in the transport sector in future. The Ministry of Petroleum & Natural Gas has set up a corpus fund of Rs. 100 crore, with contributions from the national oil companies and the Oil Industry Development Board, to undertake Hydrogen research activities with IndianOil's R and D Centre as the nodal agency. 

The proposal of setting up the Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) is another important initiative by the Government of India. By offering a transparent and investment-friendly policy and facility regime, PCPIRs aim to attract major investment, both domestic and foreign, in these key industry segments. 

The Indian hydrocarbon sector spends around Rs. 2000-250  millions on R and D every year, which is meagre compared to its annual turnover of over Rs. 4000000 millions. In the context of globalisation and the need for improving energy efficiency and developing indigenous technology and alternative fuels, the expenditure on R and D efforts needs to be scaled up substantially, with enhanced participation from the private sector players. 

CONTINGENT LIABILITIES

(As on 30.06.2008)

 

·         Show Cause Notices issued by various Government Authorities are not considered as Obligation.

·         When the demand notices are raised against such show cause notices and are disputed by the Company, these are classified as disputed obligations.

·         The treatment in respect of disputed obligations, in each case above Rs.0.500 million, are as under:

o        a provision is recognized in respect of present obligations where the outflow of resources is probable;

o        all other cases are disclosed as contingent liabilities unless the possibility of outflow of resources is remote.

 

FIXES ASSETS

 

·         Land-Freehold

·         Land-Leasehold

·         Buildings, Roads etc.

·         Plant and Machinery

·         Transport Equipments

·         Furnitures and Fixtures

·         Railway Sidings

·         Drainage, Sewage and

·         Water Supply System

 

It is in trade terms with :

·         AEP Company

·         Isspat Engineering

·         Jaishree Udhyog

·         Yamuna Gasses and Chemicals

·         Associated Industries

·         Tractel Trifor

·         Brijbasi Udyog-Mathura

·         Tube Bend, Kolkata, West Bengal, India

·         Econo Walves Private Limited

·         IGP Engineering Limited

·         Commercial Supply Agency

·         Fixfit Fasterners Limited

·         Nireka Engineering

·         Precision Auto Engineers, Ludhiana, Punjab, India

 

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED 30TH JUNE, 2008

 

Particulars

30.06.2008

(unaudited)

(Rs.In Million)

Financial

 

Gross Turnover

807348.000

Less : Excise Duty

62386.800

Net Sales

744961.200

 

 

Net Sales/ Income from Operations

748726.000

 

 

Grant from Government of India (Special Oil Bonds)

135270.000

 

 

Other Income

7489.700

 

 

Total Expenditure

 

Increase/(Decrease) in Finished Goods

(31838.400)

Purchase of Products and Crude for resale

466349.700

Consumption of Raw Materials

371092.300

Employee Cost

15604.100

Depreciation

6726.300

Other Expenditure

53185.800

Total Expenditure

881119.800

 

 

Interest

6142.300

 

 

Profit Before Tax

4223.600

Provision for taxation

 

Current Tax

0.000

Fringe Benefit Tax

72.300

Deferred Tax

0.000

 

72.300

 

 

Net Profit

4151.300

 

 

Paid –up Equity Share Capital (Face value Rs.10/- each)

11923.700

Reserves excluding revaluation reserves

 

Earnings per share (Rs.) (Basic and Diluted) (Face value – Rs.10 each)

34.800

 

 

Aggregating of Public Shareholding

 

Number of Shares

234296451

Percentage of Shareholding (%)

19.65

 

 

Physical (In MMT)

 

Product Sales

 

Domestic (including Gas sales)

15.93

Export

1.06

Refineries Throughput

12.55

Pipelines Throughput

15.11

Notes

·         The above results have been reviewed and recommended by the Audit Committee in its meeting held on July 29, 2008 and approved by the Board of Directors at its meeting held on July 30, 2008.

·         Average Gross Refining Margins during the quarter ended 30th June 2008 was US $ 16.81 per bbl (April-June’07: US $ 10.70 per bbl.)

·         Raw Material cost and Purchase of Products for Resale are net of discount of Rs.62347.800 millions for the period April-June 2008 (April-June 2007 : Rs.24400.100 million) from ONGC/GAIL/OIL as per Government of India’s advice. 

·         Pending receipt, ‘OMC GOI Special amounting to Rs.135270.000 millions (April-June 2007: Nil) have been accounted for as Grants during the quarter ended 30th June 2008based on the advice received from Government of India.

·         Consequent to non-revision of retail prices in line with international prices, the Company has suffered net under-realisation of Rs.73205.700 millions during April – June 2008 (April-June 2007 : Rs.48794.900 millions) on sale of MS, HSD, SKO (PDS) and LPG (Domestoic).

·         ‘Other Expenditure’ for the period April-June’08 includes Rs.15905.000 millions towards loss on foreign exchange variation. During April-June’07 there was foreign exchange variation gain of Rs.11344.700 millions that was accounted as ‘Other Income’.

·         Pursuant to orders pronounced by the Hon’ble Supreme / High Courts in the matter of Equity Tax on crude oil, and as advised, the Company has not provided for entry tax amounting to Rs.17514.500 millions (2007-08 : Rs.13258.100 millions) including Rs.4256.400 millions for the quarter ended 30.06.2008 in respect of Mathura and Panipat refineries. Pending final disposal of the matter, entry tax already paid / deposited / provided for at these units has not been considered for write back.

·         Pending finalization of the pay revision of the employees of the company, due w.e.f. 01.01.2007, the company has provided a sum of Rs.9232.400 millions during the current quarter relating to the period from 1st January 2007 to 30th June 2008 (includes Rs.7505.700 millions for the period 01.01.2007 to 31.03.2008) on estimated basis.

·         Subsequent to the approval by the shareholders and creditors of the Company to the scheme of amalgamation for merger of Bongaigaon Refinery and Petrochemicals Limited (BRPL) with Indian Oil, a confirmation petition was filed by the Company with the Ministry of Corporate Affairs (MCA) and the matter is under consideration by MCA.

·         The company has received 126 complaints from investors during the quarter which were all resolved. No complaint was pending at the beginning or end of the quarter.

·         The unaudited financial results for the quarter ended 30th June 2008 are subject to Limited Review by the Auditors.

·         Figures have been regrouped wherever necessary.    

WEBSITE DETAILS

India’s Downstream Major

 

Beginning in 1959 as Indian Oil Company Limited, Subject was formed in 1964 with the merger of Indian Refineries Limited (established 1958). Subject and its subsidiaries account for 49% petroleum products market share, 40.4% refining capacity and 69% downstream sector pipelines capacity in India.


For the year 2007-08, the IndianOil group sold 59.29 million tonnes of petroleum products, including 1.74 million tonnes of natural gas, and exported 3.33 million tonnes of petroleum products.


The IndianOil Group of companies owns and operates 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, .i.e. 1.2 million barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation Limited (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRPL).


The Corporation's cross-country network of crude oil and product pipelines, spanning about 9,300 km and the largest in the country, meets the vital energy needs of the consumers in an efficient, economical and environment-friendly manner.


Subject is investing Rs. 433930 milions (US $10.8 billion) during the period 2007-12 in augmentation of refining and pipeline capacities, expansion of marketing infrastructure and product quality upgradation as well as in integration and diversification projects.

 

Network Beyond Compare

 

As the flagship national oil company in the downstream sector, Subject reaches precious petroleum products to millions of people everyday through a countrywide network of about 34,000 sales points. They are backed for supplies by 166 bulk storage terminals and depots, 101 aviation fuel stations and 89 Indane (LPGas) bottling plants. About 7,100 bulk consumer pumps are also in operation for the convenience of large consumers, ensuring products and inventory at their doorstep.


Subject operates the largest and the widest network of petrol and diesel stations in the country, numbering over 17,600. It reaches Indane cooking gas to the doorsteps of over 50 million households in nearly 2,700 markets through a network of about 5,000 Indane distributors.


Subject's ISO-9002 certified Aviation Service commands over 62% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defence Services. The Corporation also enjoys a dominant share of the bulk consumer business, including that of railways, state transport undertakings, and industrial, agricultural and marine sectors.

 

Technology Solutions

 

IndianOil's world-class R and D Centre is perhaps Asia's finest. Besides pioneering work in lubricants formulation, refinery processes, pipeline transportation and alternative fuels, the Centre is also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel economy in the country. It is in the process of setting up a commercial Hydrogen-CNG station at an IndianOil retail outlet in New Delhi this year. It has commissioned a bio-gas plant and bio-mass gasifier plant during the year 2007-08 for conducting research into energy-efficient bio-gas business.


Subject joined the league of global technology providers last year with the selection of its in-house developed INDMAX technology (for maximising LPGas yield) for the 4 MMTPA Fluidised Catalytic Cracking (FCC) unit at the Corporation's upcoming 15 MMTPA refinery-cum-petrochemicals complex at Paradip in Orissa, as well as for the FCC unit coming up at BRPL.


A wholly-owned subsidiary, Subject, is engaged in commercialising the innovations and technologies developed by IndianOil's R and D Centre.

 

Customer First

 

At Subject, customers always get the first priority. New initiatives are launched round-the-year for the convenience of the various customer segments.


Exclusive XTRACARE petrol & diesel stations unveiled in select urban and semi-urban markets offer a range of value-added services to enhance customer delight and loyalty. Large format Swagat brand outlets cater to highway motorists, with multiple facilities such as food courts, first aid, rest rooms and dormitories, spare parts shops, etc. Specially formatted Kisan Seva Kendra outlets meet the diverse needs of the rural populace, offering a variety of products and services such as seeds, fertilisers, pesticides, farm equipment, medicines, spare parts for trucks and tractors, tractor engine oils and pump set oils, besides auto fuels and kerosene. SERVOXpress has been launched recently as a one-stop shop for auto care services.


To safeguard the interest of the valuable customers, interventions like retail automation, vehicle tracking and marker systems have been introduced to ensure quality and quantity of petroleum products.

 

Synergy through Subsidiaries

 

A wholly-owned subsidiary, IndianOil Technologies Limited, is engaged in commercialising the innovations and technologies developed by subject's R and D Centre, across the globe. The year 2007 saw the seamless merger of the marketing subsidiary, IBP Co Limited with subject to the formation of a larger and more formidable marketing network for subject. Merger of Bongaigaon Refinery and Petrochemicals Limited with the parent company is in process.

 

Widening Horizons

 

To achieve the next level of growth, Subject is currently forging ahead on a well laid-out road map through vertical integration— upstream into oil exploration and production (E and P) and downstream into petrochemicals – and diversification into natural gas marketing, besides globalisation of its downstream operations.

In petrochemicals, Subject is envisaging Rs. 300000 millions (US$ 7.4 billion) investment by the year 2011-12. Through the world’s largest single-train Linear Alkyl Benzene (LAB) plant with an annual capacity of 1,20,000 tonnes set up at its Gujarat Refinery, the Corporation has already captured a significant market share of LAB in India, besides exporting the product to Indonesia, Turkey, Thailand, Vietnam, Norway and Oman. A world-scale Paraxylene/Purified Terephthalic Acid plant (annual capacities: PX - 3,63,000 tonnes, PTA – 5,53,000 tonnes) for polyester intermediates is already in operation at Panipat, while a Naphtha Cracker with a capacity of 800,000 tonnes of ethylene per annum, equipped with downstream polymer units is also coming up at Panipat. A refinery-cum-petrochemicals complex at Paradip, to be completed by the year 2011-12, will strengthen the Corporation’s presence in the sector.


In E and P, Subject has bagged eight oil and gas blocks and two Coal Bed Methane blocks under NELP (New Exploration Licencing Policy) rounds in India, in consortium with other companies. It has also acquired participating interest in two onshore blocks in Assam and Arunachal Pradesh. Overseas ventures of the Corporation include two blocks in Sirte Basin and Areas 95/96 in Ghadames basin of Libya, Farsi Exploration Block in Iran, onshore farm-in arrangements in Gabon, an onland block in Nigeria and two onshore blocks in Yemen. Subject has incorporated Ind-OIL Overseas Limited – a special purpose vehicle for acquisition of overseas E and P assets – in Port Louis, Mauritius, in consortium with Oil India Limited (OIL).


In natural gas business, Subject is targeting sale of 2 million tonnes in 2008-09. A technology innovation has been initiated to reach LNG (Liquefied Natural Gas) directly to the doorstep of bulk consumers in cryogenic containers for industrial as well as captive power applications. An LNG import terminal is proposed to be set up at Ennore near Chennai. City gas distribution projects are in the pipeline in partnership with other companies.


For over a decade now, Subject has been providing technical and manpower secondment services to overseas companies. Consultancy services for reduction of Fluidised Catalytic Cracker (FCC) shutdown time were also provided during the year 2007-08.


The Corporation’s wholly-owned subsidiary, IndianOil Technologies Limited, is engaged in commercialising the innovations and technologies developed by Subject's R and D Centre.

Subject has set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates (UAE), and is simultaneously scouting for new opportunities in the energy markets of Asia and Africa.


Lanka IOC Limited operates about 150 petrol and diesel stations in Sri Lanka, and has a very efficient lube marketing network. Its oil terminal at Trincomalee is also Sri Lanka's largest petroleum storage facility. Lanka IOC commissioned an 18,000 tonnes per annum capacity lubricants blending plant and a state-of-the-art fuels and lubricants testing laboratory at Trincomalee during 2007-08 besides commencing bunkering business.


IndianOil (Mauritius) Limited has an overall market share of nearly 20% and commands a 32% market share in aviation fuelling business, apart from its bunkering business. It operates a modern petroleum bulk storage terminal at Mer Rouge port, besides 13 petrol & diesel stations. In addition to the ongoing expansion of retail network, IOML has commissioned the first ISO-9001 product-testing laboratory in Mauritius.

The Corporation's UAE subsidiary, IOC Middle East FZE, which oversees business expansion in the Middle East, has commenced blending SERVO lubricants and marketing petroleum products and lubricants in the Middle East, Africa and CIS countries.

 

The Path of Growth

 

1958
Indian Refineries Limited was formed with Mr. Feroze Gandhi as Chairman.

1959
Indian Oil Company Limited was established on 30th June 1959 with Mr. S. Nijalingappa as the first Chairman.

 

1960
Agreement for supply of SKO and HSD was signed with the then USSR. M.V: "Uzhgorod" carrying the first parcel of 11390 tonnes of HSD docked at Pir Pau Jetty in Mumbai on 17th August 1960.

1962
Guwahati Refinery was inaugurated by Pt. Jawaharlal Nehru.


Construction of Barauni Refinery commenced.


1963
Foundation was laid for Gujarat Refinery

Indian Oil Blending Limited (a 50:50 Joint Venture between Indian Oil and Mobil) was formed.

1964
subject was born on 1st September, 1964 with the merger of Indian Refineries Limited with Indian Oil Company Limited.

Barauni Refinery was commissioned.

The first petroleum product pipeline from Guwahati to Siliguri (GSPL) was commissioned.

 

1965
Gujarat Refinery was inaugurated by Dr. S. Radhakrishnan, the then President of India.


Barauni-Kanpur Pipeline (BKPL) and Koyali- Ahmedabad product Pipeline (KAPL) commissioned. Indian Oil People maintained the vital supply of Petroleum products to Defense in 1965 War.


1966
The first long-term agreement was signed for harmonious employee relations.


1967
Haldia Baraurii Pipeline (HBPL) was commissioned.

Bitumen and Marine Bunker business began.

1968
Techno-economic studies for Haldia-Calcutta, Bombay-Pune and Bombay-Manmad Pipelines submitted to the Government.


1969
Indian Oil undertook the marketing of Madras Refinery products.


1970
Indian Oil acquired 60% majority shares of IBP.

The same was offloaded in favour of the President of India under a Directive in 1972.

 

1971
Dealership/reservation was extended to war widows, disabled Defense personnel, Freedom Fighters, etc. after 1971 War.


1972
R&D Centre was established at Faridabad.

SERVO, the first indigenous lubricant was launched.


1973
Foundation-stone of Mathura Refinery was laid by Mrs. Indira Gandhi, the then Prime Minister of India.

1974
Indian Oil Blending Limited (IOBL) became the wholly owned subsidiary of Indian Oil.

Marketing Division attained a new watershed with a market participation of 64.2%.


1975
Haldia Refinery was commissioned.

Multipurpose Distribution Centres were introduced at 132 Retail Outlets pioneering rural convenience.


1976
Private petroleum companies nationalized.

Burmah Shell became BPC.


1977
R&D Centre launched Nutan wick stove.


1978
Phase-wise commissioning of Salaya-Mathura Crude Oil Pipeline (SMPL) began.


1979
Barauni Refinery and Bongaigaon Refinery and Petrochemicals Limited (BRPL) affected by Assam agitation.

1980
The second Oil Shock was witnessed as a result of Iranian Revolution. Crude Oil price flared to a new high of $32 per barrel.


1981
Digboi Refmery and Assam Oil Company's (AOC) marketing operations were vested in Indian Oil. It became Assam Oil Division (AOD) of Indian Oil.

1982
Mathura Refinery was commissioned.

Mathura-Jalandhar Pipeline (MJPL) was commissioned.

1983
Massive augmentation of LPG storage and distribution facilities were undertaken.

Proposal for the 6 MMTPA Refinery at Karnal was submitted at an estimated cost of Rs. 11810 millions.

 

Memorandum of Collaboration (MOC) / Memorandum of Understanding (MoU)

 

Overseas


In India

 

 

OVERSEAS OPERATIONS

 

·         Export of bulk petroleum products to Sri Lanka & Bangladesh.

·         SERVO marketing in Nepal, Malaysia, Bangladesh, Mauritius, Sri Lanka, Dubai, etc.

·         Lube blending and marketing in Middle East and East Africa.

·         Export of Bitumen to Bangladesh, Myanmar and China.

·         Management of oil terminal at Ndola, Zambia and aviation stations in Bhutan and Maldives.

·         Specialized training imparted to international oil companies like Petronas of Malaysia, Qatar General Oil

·         Company, KNPC of Kenya and CPC of Sri Lanka.

·         Secondment of manpower for commissioning of ENOC’s refinery at Dubai.

·         Technical Services help provided to countries like Dubai and Trinidad.

·         Consultancy Services in Algeria.

 

NEWS

 

Sarthak Behuria elected as President of World LPGas Association

 

New Delhi, September 23, 2008

Becomes the first Indian to head the global body

Mr. Sarthak Behuria, Chairman, IndianOil, has been elected as the President of the World LPGas Association (WLPGA). This rare honour came to Mr. Behuria during the meeting of the Board of Directors of WLPGA in Seoul, South Korea, yesterday on the eve of the 2008 World LPGas Forum. Mr. Behuria’s election as the President is indeed an achievement that comes close on the heels of the end of his term as the First Vice President of WLPGA representing the concerns of the entire LPG industry in Asia including economic powerhouses such as China, Japan and Korea.

The LPGas market in India is 11.3 million tonnes across sectors – industrial, household and transport. Mr. Behuria’s ascendancy as the first Indian President of the WLPGA will help better reflect the concerns of the Indian LPGas industry and contribute to benchmarking it with the global standards. Speaking on the occasion, Mr. Behuria said, “As President of this apex body representing the global LPGas industry, it will be my endeavour to strive assiduously to steer the WLPGA further on the progressive path”.

As a global body, WLPGA is effectively positioned to continue dialogue with stakeholders and institutions around the world to enhance the role of LPGas in the energy basket. WLPGA contributes to sustainable development and believes in propagating the use of this clean burning fuel to rapidly expand the availability of modern energy worldwide and combat the threat of global climate change.

An alumnus of St. Stephen's College Delhi and IIM, Ahmedabad, Mr. Behuria has almost four decades of experience in the petroleum industry. In addition to heading IndianOil Group Companies – CPCL, BRPL and Indian Oiltanking Ltd., he is also the Chairman of SCOPE, Petroleum Federation of India and the Council of Indian Employers.

IndianOil offers Academic and Sports Scholarships for 2008-09

New Delhi, September 22, 2008

Last date for submission of application forms: 30th September 2008

As a part of its corporate social responsibility programme, Indian Oil Corporation Limited, India's largest commercial enterprise, has announced 450 Academic Scholarships for meritorious students all over India for the academic year 2008-09. It is also offering Sports Scholarships to nurture the talent of budding sportspersons.

The Academic Scholarships scheme on 'merit-cum-means' basis, unveiled on Sept. 1, 2008, is available to students pursuing 11th Standard, 1st year of ITI / Engineering Degree / MBBS / MBA in the academic year 2008-09. As part of the scheme, special encouragement is being given to girl students, physically challenged students, and students from Jammu and Kashmir and the Northeastern States. 50% of the scholarships are reserved for SC, ST and OBC candidates. Complete details, including the application forms for downloading, are available on IndianOil’s corporate website.

IndianOil also offers Sports Scholarships to upcoming Junior-Level players in the age group of 15-18 years for Athletics (Boys/Girls), Badminton (Boys/Girls), Carrom (Boys/Girls), Chess (Boys), Cricket (Boys), Golf (Boys), Hockey (Boys), Table Tennis (Boys/Girls), Tennis (Boys/Girls) and Snooker & Billiards (Boys).

 

CMT REPORT [Corruption, Money laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.46.88

UK Pound

1

Rs.82.97

Euro

1

Rs.64.99

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

9

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

9

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

9

--CREDIT LINES

1~10

9

--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

 

81

 

 

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