MIRA
INFORM REPORT
|
Report Date : |
11.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
BHARAT PETROLEUM CORPORATION LIMITED |
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Registered
Office : |
Bharat Bhawan, 4
and 6, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
03.11.1952 |
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Com. Reg. No.: |
11-8931 |
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CIN No.: [Company
Identification No.] |
L23220MH1952GOI008931 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMB00573G/
MUMB12464E |
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PAN No.: [Permanent
Account No.] |
AAACB2902M |
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Legal Form : |
A Public Limited
Liability Company. The Company's Shares are Listed on the Stock Exchanges. |
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Line of
Business : |
Manufacturing of
Petroleum Products, Benzene and Lubricants. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (75) |
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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 |
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Maximum Credit Limit : |
USD 523470000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and a reputed company having fine track. Financial position of
the company appears to be sound. Trade relations are reported as fair. Business
is active .Payments are reported to be regular and as per commitments. The company can
be considered normal for business dealings at usual trade terns and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
Bharat Bhawan, 4
and 6, |
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Tel. No.: |
91-22-22642112/ 22713000/ 004/ 22714000 |
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Fax No.: |
91-22-22642112/ 22616793/ 22713874 |
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E-Mail : |
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Website : |
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Factory : |
Lubricant Plant Wadilube Installation, 24, Parganas, Budge-Budge 743 319 |
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ECE House, Post Box No.7, Connaught Circus, |
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Tel. No.: |
91-11-23316891 |
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Fax No.: |
91-11-23316894 |
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Retail Business Head Quarters : |
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Tel. No.: |
91-22-22189172 |
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Fax No.: |
91-22-22182304 |
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Lubricants Business Head Quarters : |
Bharat Bhavan-II, Ballard
Estate, Mumbai – 400001, |
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Tel. No.: |
91-22-22713800/ 25543151 |
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Fax No.: |
91-22-22713801/ 25542970 |
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Aviation Business Head Quarters : |
Plot Nos. A 5 and 6, Sector 1, Noida 201301, District Gautam Budh
Nagar, |
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Tel. No.: |
91-120-24539155/ 2474482 |
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LPG Business Head Quarters: |
Bharat Bhavan, 4 and |
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Tel. No.: |
91-22-22713000 |
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Fax No.: |
91-22-22832646 |
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Industrial and Commercial Business Head Quarters : |
Bharat Bhavan, 4 and |
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Tel. No.: |
91-22-22713000 |
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Fax No.: |
91-22-22713671 |
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Chief Vigilance Officer: |
Bharat Bhavan-1, 4 and 6, |
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Tel. No.: |
91-22-22713610 |
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Fax No.: |
91-22-22713611 |
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Refinery : |
Bharat Petroleum Refinery, Mahul, Chembur, Mumbai 400074, |
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Tel. No.: |
91-22-25543151 |
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Fax No.: |
91-22-25542970 |
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Branch Office : |
Located at: v Ahmedabad v v v Bhubaneshwar v Chennai v v v v Jaipur v Kolkata v v Mumbai v Pune v Secunderabad |
DIRECTORS
As on 31.03.2010
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Name : |
Mr. Ashok Sinha |
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Designation : |
Chairman cum Managing Director (Finance) |
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Qualification : |
B. Tech (Elect.) MBA |
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Other Directorship : |
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Name : |
Mr. S. Radhakrishnan |
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Designation : |
Director (Marketing) |
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Qualification : |
B. Tech., (Mech.) MBA |
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Other Directorship : |
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Name: |
Mr. S.K. Joshi |
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Designation: |
Director (Finance) |
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Qualification : |
ACA, MBA |
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Other Directorship : |
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Name : |
Mr. R.K. Singh |
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Designation : |
Director (Refineries) |
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Qualification : |
B. Tech (Mechanical) |
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Other Directorship : |
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Name: |
Mr. S.K. Barua |
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Designation: |
Director |
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Name : |
Mr. Rama Bijapurkar |
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Designation : |
Director (up to 30.6.2010) |
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Name : |
I.P.S. Anand |
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Designation : |
Director (w.e.f. 28.1.2010) |
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Name: |
Mr. S. Mohan |
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Designation: |
Director (Human Resources) |
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Name: |
Mr. A.H. Kalro |
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Designation: |
Director (up to 28.1.2010) |
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Name: |
Mr. N. Venkiteswaran |
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Designation: |
Director |
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Name : |
Mr. Haresh M. Jagtiani |
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Designation : |
Director (w.e.f. 28.1.2010) |
KEY EXECUTIVES
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Name : |
Mr. P.K. Sinha |
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Designation : |
Additional Secretary and Financial Advisor, Ministry of Petroleum and Natural Gas |
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Name : |
Mr. T. Balakrishnan |
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Designation : |
Additional Chief Secretary, (I and C) Government of Kerala (up to
29.6.2010) |
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Name : |
Mr. Alkesh Kumar Sharma |
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Designation : |
Secretary (IP), Government of Kerala (w.e.f. 30.6.2010) |
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Name: |
Ms. I. Sasikala |
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Designation: |
Chief Vigilance
Officer |
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Name: |
Mr. A.K. Bansal |
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Designation: |
Executive
Director (Gas) |
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Name: |
Mr. Anurag Deepak |
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Designation: |
Executive
Director Logistics (Retail), Mumbai |
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Name: |
Mr. B.K. Datta |
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Designation: |
Executive
Director (Supply Chain Optimization) |
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Name: |
Mr. D.M. Reddy |
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Designation: |
Executive
Director (Industrial and Commercial) |
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Name: |
Ms. Dipti Sanzgiri |
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Designation: |
Executive
Director (Human Resources Development) |
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Name : |
Mr. E. Nandakumar |
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Designation : |
Executive Director,
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Name : |
Mr. J. Ravichandran |
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Designation : |
Executive
Director (Refineries Finance) |
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Name : |
Mr. K.K. Gupta |
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Designation : |
Executive
Director (Retail) In-charge |
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Name : |
Mr. K.V. Seshadri |
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Designation : |
Executive
Director, Mumbai Refinery |
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Name : |
Mr. P.S. Bhargava |
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Designation : |
Executive
Director (Planning) |
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Name : |
Mr. R.K. Mehra |
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Designation : |
Executive
Director (International Trade) |
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Name : |
Mr. R.M. Gupta |
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Designation : |
Executive
Director (LPG) |
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Name : |
Mr. S. Krishnamurti |
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Designation : |
Executive
Director (Corporate Affairs) |
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Name : |
Mr. S.P. Gathoo |
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Designation : |
Executive Director
(Human Resources Services) |
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Name : |
Mr. S. P. Mathur |
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Designation : |
Executive
Director (Engineering and Projects) |
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Name : |
Mr. S. Ramesh |
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Designation : |
Executive
Director (Lubes) |
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Name : |
Ms. Sumita Bose Roy |
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Designation : |
Executive
Director (Audit) |
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Name : |
Mr. S. Varadarajan |
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Designation : |
Executive
Director (Corporate Finance) |
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Name : |
Mr. A.K. Kaushik |
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Designation : |
General Manager
(IS - Infrastructure and Services) |
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Name : |
Mr. Basudev Rana |
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Designation : |
General Manager
(Highway Retailing), Retail HQ |
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Name : |
Mr. Brij Pal Singh |
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Designation : |
General Manager
(Operations), Retail |
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Name : |
Mr. George Paul |
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Designation : |
General Manager
(Sales) Retail HQ |
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Name : |
Mr. G.S. Wankhede |
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Designation : |
General Manager
(Operations), MMBPL |
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Name : |
Mr. I. Srinivas Rao |
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Designation : |
General Manager
(LNG Marketing) |
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Name : |
Mr. J. Dinaker |
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Designation : |
General Manager
Finance (International Trade) |
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Name : |
Mr. John Minu Mathew |
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Designation : |
General Manager
(Technical), |
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Name : |
Mr. J.R. Akut |
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Designation : |
General Manager
(IIS Technology) |
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Name : |
Mr. J.S. Sokhi |
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Designation : |
General Manager
(Retail Initiatives), Retail HQ |
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Name : |
Mr. K.B. Narayanan |
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Designation : |
General Manager
(ERP - CC) |
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Name : |
Mr. K. N. Ravindran |
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Designation : |
General Manager
(Projects), |
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Name : |
Mr. K.P. Chandy |
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Designation : |
Regional LPG
Manager, South |
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Name : |
Mr. K.V. Shenoy |
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Designation : |
General Manager
(Retail) In-charge, South |
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Name : |
Mr. M.M. Chawla |
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Designation : |
General Manager
(Pipeline Projects), E and P |
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Name : |
Mr. M.M. Somaya |
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Designation : |
General Manager
(Brand and Public Relations) |
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Name : |
Mr. M.P. Govindarajan |
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Designation : |
General Manager
(Human Resources), |
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Name : |
Ms. Monica Widhani |
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Designation : |
General Manager
(Urban Retailing) |
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Name : |
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Designation : |
General Manager
(Retail), South |
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Name : |
Mr. P. Anandasundaresan |
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Designation : |
General Manager
(Sales) I and C, Mumbai |
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Name : |
Mr. P. Balasubramanian |
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Designation : |
General Manager
(Corporate Finance) |
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Name : |
Mr. P. C. Srivastava |
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Designation : |
General Manager
(Retail), West |
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Name : |
Mr. Pallav Ghosh |
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Designation : |
General Manager
(Retail), East |
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Name : |
Mr. P. Padmanabhan |
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Designation : |
General Manager
(Technical), Mumbai Refinery |
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Name : |
Mr. Pramod Sharma |
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Designation : |
General Manager
(Coordination) |
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Name : |
Mr. Prasad K. Panicker |
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Designation : |
General Manager
(Operations), Mumbai Refinery |
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Name : |
Mr. P.V. Kumar |
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Designation : |
General Manager (International
Trade) |
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Name : |
Mr. R.P. Natekar |
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Designation : |
General Manager
(Corporate Treasury) |
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Name : |
Mr. R. Ranganath |
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Designation : |
General Manager
Finance (Retail) HQ |
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Name : |
Mr. S.B. Bhattacharya |
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Designation : |
General Manager
(Aviation) |
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|
Name : |
Mr. S.K. Agrawal |
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Designation : |
General Manager
(Legal) |
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|
Name : |
Mr. S.K. Mathur |
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Designation : |
General Manager
(Retail), North |
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|
Name : |
Mr. Sharad K. Sharma |
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Designation : |
General Manager
Sales (LPG) HQ |
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|
Name : |
Mr. S. Vijayakumar |
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Designation : |
General Manager
(Human Resources), Mumbai Refinery |
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|
Name : |
Mr. Tapan Datta |
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Designation : |
General Manager
(Vigilance), CO |
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|
Name : |
Mr. Tomy Mathews |
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Designation : |
General Manager
(Operations), |
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|
Name : |
Mr. T. Somanath |
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Designation : |
General Manager
– Talent Management |
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|
Name : |
Dr. U.V. Girish Kumar |
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Designation : |
General Manager
(IT and BI), Retail HQ |
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|
Name : |
Mr. V. Anand |
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Designation : |
General Manager
(Sales), Retail South |
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|
Name : |
Mr. Vinod Giri |
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Designation : |
General Manager
(Marketing Corporate) |
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|
Name : |
Mr. Arun Kumar Singh |
|
Designation : |
Chief
Procurement Officer |
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|
Name : |
Mr. D.K. Mane |
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Designation : |
Head (Health,
Safety, Security and Environment) Entity |
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|
Name : |
Dr. G. Vasudev |
|
Designation : |
Deputy General Manager
(Quality Control Cell) |
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|
Name : |
Ms. Madhu Sagar |
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Designation : |
Deputy General
Manager (Employee Satisfaction Enhancement), CO |
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|
Name : |
Mr. S.V. Kulkarni |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Category of Shareholder |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
198,600,060 |
54.93 |
|
|
198,600,060 |
54.93 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
198,600,060 |
54.93 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
29,580,722 |
8.18 |
|
|
437,605 |
0.12 |
|
|
3,111,111 |
0.86 |
|
|
37,245,742 |
10.30 |
|
|
29,567,212 |
8.18 |
|
|
99,942,392 |
27.64 |
|
|
|
|
|
|
16,456,300 |
4.55 |
|
|
|
|
|
|
9,568,345 |
2.65 |
|
|
1,199,446 |
0.33 |
|
|
35,775,581 |
9.90 |
|
|
291,294 |
0.08 |
|
|
1,755,550 |
0.49 |
|
|
33,728,737 |
9.33 |
|
|
62,999,672 |
17.43 |
|
Total Public
shareholding (B) |
162,942,064 |
45.07 |
|
Total (A)+(B) |
361,542,124 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
Total
(A)+(B)+(C) |
361,542,124 |
- |
(1) Indian
Central Government / State Government(s)
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Petroleum Products, Benzene and Lubricants. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
(a)
Fuel refinery |
|
|
|
|
(i)
In million metric tonnes p.a. |
NA |
21.50 @ |
20.41 |
|
(ii)
Production in kilolitres (KL) |
-- |
-- |
7663743 |
|
Light
distillates |
-- |
-- |
12675269 |
|
Middle
distillates |
-- |
-- |
3397265 |
|
Others
|
|
|
|
|
(b)
Aromatics (in MT) |
|
|
|
|
(i)
Benzene * |
185500 |
192900 |
57742 |
|
(ii)
Toluene * |
67600 |
73100 |
23265 |
|
(iii)
Mixed Aromatic Solvent |
15000 |
15000 |
-- |
|
(c)
MTBE in M.T. # |
NA |
30000 |
28095 |
|
(d)
New Solvent Unit |
|
|
|
|
(i)
Solvent (SBP 55-115) in M.T. |
NA |
40000 |
8325 |
|
(ii)
Solvent (Food Grade Hexane) in M.T. |
NA |
25000 |
23451 |
|
(e)
Poly Proplyene Feedstock in M.T. |
NA |
60000 |
63593 |
|
(f)
Lubricants in M.T. |
NA |
153400 |
209301 |
|
(g)
Lube Oil Base Stock (LOBS) in M.T. |
NA |
180000 |
185452 |
|
(h)
|
NA |
117667 |
64637 |
|
(i)
Natural Rubber Modified Bitumen in M.T. |
NA |
65000 |
4775 |
|
(j)
Bitumen Emulsion (Single Shift) in M.T. |
50000 |
27600 |
4535 |
|
(k)
Diesel Additive (Single Shift) in M.T. |
5000 |
1500 |
-- |
|
(l)
Propylene in M.T. |
65000 |
50000 |
8239 |
|
(m)
Petroleum Hydrocarbon Solvent in M.T. |
10000 |
8820 |
6658 |
|
(n)
Poly Iso Butene in M.T. |
5000 |
5000 |
991 |
|
(o)
Cable Jelly (Poly Isobutene Unit) in M.T. |
6500 |
2500 |
-- |
|
(p)
Others (Poly Isobutene Unit) in M.T. |
14000 |
1000 |
-- |
@ The installed
capacity of Kochi Refinery has been enhanced by 2 MMTPA to 9.5 MMTPA in July
2009.
* For Kochi
Refinery, the combined capacity of Benzene and Toluene is 99200 MT as against
the individual capacity of 87200 MT and 50000 MT respectively, .
# MTBE is used for own manufacture of Motor Spirit.
GENERAL INFORMATION
|
No. of Employees : |
13898
(Approximately) |
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Bankers : |
v State Bank of v Union Bank of v Corporation Bank v Bank of v State Bank of v Central Bank of v Deutsche Bank v Standard
Chartered Grindlays Bank v Standard
Chartered Bank v ABN Amro Bank
N.V. v ICICI Bank v HDFC Bank
Limited v Indian Bank v State Bank of
Travancore v Indian Bank v Standard
Chartered Bank v ABN Amro Bank
N.V v Industrial
Development Bank of India Limited v BNP Paribas v Calyon Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name 1 : |
B.K. Khare and
Company Chartered
Accountants |
|
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|
Name 2 : |
K. Varghese and Company Chartered Accountants |
|
|
|
|
Associates : |
v
Petronet CI Limited v
Bharat Oman Refineries Limited v
Petroleum Infrastructure Limited v
Petroleum v
Premier Oil Cachar B.V. v
VB ( |
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|
Subsidiaries : |
v Numaligarh Refinery Limited (NRL) v Bharat PetroResources Limited (BPRL) |
|
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|
Joint Venture
Companies : |
v Petronet LNG Limited (PLL) v Indraprastha Gas Limited (IGL) v Sabarmati Gas Limited (SGL) v Central UP Gas Limited (CUGL) v Maharashtra Natural Gas Limited (MNGL) v Bharat Stars Services Private Limited (BSSPL) v Bharat Renewable Energy Limited (BREL) v Matrix Bharat Marine Services Pte Limited (MBMS) v Petronet India Limited (PIL) v Petronet CCK Limited (PCCKL) v Delhi Aviation Fuel Facility Private Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
450000000 |
Equity Shares |
Rs.10/- each |
Rs.4500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
361542124 |
Equity Shares |
Rs.10/- each
|
Rs.3615.400
Millions |
|
|
|
|
|
Includes:
I] 22950000 equity shares of Rs.10 each on
which Rs.7.20 per share was paid in cash and were converted into fully paid by capitalization
of capital reserve.
[ii] 277000000 equity shares of Rs.10 each
allotted as fully paid bonus shares by capitalization of Capital Reserve and
General Reserve
[iii] 61542124 equity shares of Rs.10 each
issued as fully paid-up to the Shareholders of erstwhile Kochi Refineries
Limited as per the Scheme of Amalgamation.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
3615.400 |
3615.400 |
3615.420 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.020 |
|
|
3] Reserves & Surplus |
127251.700 |
117665.700 |
113152.960 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
130867.100 |
121281.100 |
116768.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
104438.700 |
36616.000 |
27302.070 |
|
|
2] Unsecured Loans |
117513.300 |
175098.100 |
122921.690 |
|
|
TOTAL BORROWING |
221952.000 |
211714.100 |
150223.760 |
|
|
DEFERRED TAX LIABILITIES |
8593.000 |
12392.400 |
14813.650 |
|
|
|
|
|
|
|
|
TOTAL |
361412.100 |
345387.600 |
281805.810 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
136693.500 |
119657.900 |
119686.680 |
|
|
Capital work-in-progress |
25177.500 |
20374.800 |
7667.090 |
|
|
|
|
|
|
|
|
INVESTMENT |
122013.200 |
167151.900 |
93580.130 |
|
|
Advance for Investment |
13000.100 |
13631.900 |
9602.020 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
120288.600
|
68239.200
|
106038.360
|
|
|
Sundry Debtors |
26626.800
|
14256.700
|
16086.050
|
|
|
Cash & Bank Balances |
3423.600
|
4415.500
|
9615.910
|
|
|
Other Current Assets |
37856.900
|
30945.100
|
49328.680
|
|
|
Loans & Advances |
47643.400
|
35027.700
|
16003.510
|
|
Total
Current Assets |
235839.300
|
152884.200
|
197072.510
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
83599.700
|
|
135941.140
|
|
|
Other Current Liabilities |
61905.900
|
49042.900
|
|
|
|
Provisions |
25805.900
|
17124.400
|
9861.480
|
|
Total
Current Liabilities |
171311.500
|
128313.100
|
145802.620
|
|
|
Net Current Assets |
64527.800
|
24571.100
|
51269.890
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
361412.100 |
345387.600 |
281805.810 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1222759.500 |
1352377.000 |
1105467.600 |
|
|
|
Other Income |
22402.400 |
15087.400 |
13954.200 |
|
|
|
TOTAL (A) |
1245161.900 |
1367464.400 |
1119421.800 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of products and crude oil for resale |
630788.900 |
678678.100 |
526646.400 |
|
|
|
Raw materials consumed |
505924.500 |
539369.300 |
489219.300 |
|
|
|
Packages consumed |
1331.700 |
1075.100 |
871.900 |
|
|
|
Excise Duty on Inventory differential |
2174.000 |
(104.900) |
(2036.100) |
|
|
|
Other duties, taxes etc. and other charges applicable to products |
18415.600 |
11747.600 |
5422.400 |
|
|
|
Transportation |
25854.700 |
24261.400 |
20523.900 |
|
|
|
Consumption of stores, spares and materials |
795.200 |
790.400 |
702.300 |
|
|
|
Power & Fuel
Cost |
2371.200 |
671.700 |
617.500 |
|
|
|
Employees' remuneration and other benefits |
21411.200 |
18848.800 |
12972.000 |
|
|
|
Other operating and administration expenses |
29245.900 |
33773.400 |
18131.300 |
|
|
|
Increase/(Decrease) in Inventory |
(39898.500) |
15758.800 |
3925.000 |
|
|
|
Prior Period
Income/ (Expenses) net |
554.300 |
134.600 |
(1253.800) |
|
|
|
TOTAL (B) |
1198968.700 |
1325004.300 |
1075742.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
46193.200 |
42460.100 |
43679.700 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
10109.500 |
21663.700 |
6724.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
36083.700 |
20796.400 |
36955.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
12423.200 |
10755.300 |
10982.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
23660.500 |
10041.100 |
25972.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
8284.300 |
2682.100 |
10167.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
15376.200 |
7359.000 |
15805.600 |
|
|
|
|
|
|
|
|
|
|
Transfer from / (to) Debenture Redemption Reserve |
(7000.000) |
(3000.000) |
NA |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
763.700 |
# |
NA
|
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend |
5061.600 |
2530.800 |
NA |
|
|
|
Corporate Dividend Tax on proposed dividend |
727.700 |
314.500 |
NA |
|
|
|
Transfer to General Reserve |
1540.000 |
750.000 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
1810.600 |
763.700 |
NA |
|
|
|
# Rs. 10,000.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports on FOB basis # # Includes
receipt of Rs.16365.600 millions (previous
year Rs.17325.900 millions) in Indian currency out of the repatriable funds
of foreign airline customers and Rs.121.800
millions (previous year Rs.84.400 millions) of INR exports to |
103013.500 |
|
67358.980 |
|
|
|
Exports on CFR basis |
0.000 |
3537.800 |
|
|
|
TOTAL EARNINGS |
103013.500 |
65674.200 |
67358.980 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials (including Crude Oil) |
363977.900 |
|
328563.920 |
|
|
|
Capital goods |
3221.500 |
1425.700 |
|
|
|
|
Components and
spare parts (including packages, chemicals and catalysts) |
1536.900 |
572.400 |
|
|
|
TOTAL IMPORTS |
368736.300 |
380250.500 |
328563.920 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
42.53 |
20.35 |
43.72 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 |
30.09.2010 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
342325.200 |
354347.700 |
|
Total Expenditure |
|
356384.100 |
329482.700 |
|
PBIDT (Excl OI) |
|
(14058.900) |
24865.000 |
|
Other Income |
|
3208.800 |
5335.900 |
|
Operating Profit |
|
(10850.100 |
30200.900 |
|
Interest |
|
2323.500 |
2779.800 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(13173.600) |
27421.100 |
|
Depreciation |
|
4007.400 |
4018.900 |
|
Profit Before Tax |
|
(17181.000) |
23402.200 |
|
Tax |
|
0.000 |
1980.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(17181.000) |
21422.200 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(17181.000) |
21422.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.23
|
0.54 |
1.41 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.94
|
0.74 |
2.35 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.35
|
3.68 |
8.20 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.08 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.01
|
2.80 |
2.54 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.38
|
1.19 |
1.35 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
The company was
first incorporated as Standard Vacuum Refining, Company of India in 1952 and
later named ESSO India. When Esso and Lube
Keeping pace with
the nations energy requirements the company infrastructure today boasts of
refineries, cros - country pipelines, LPG bottling plants, lube blending plants
and aviation service facilities. Add to this it has extensive network of retail
outlets, regional offices. Terminals and depots that truly make it an industry
leader. The main products of the company includes petrol, high speed diesel,
superiors kerosene oil, liquefied petroleum gas, aviation turbine fuel,
naphtha, furnace oil, bitumen, l low sulphur heavy stock, solvents, propylene
and over 300 grades of lubes. The company has 20% market share in the POL
products and over 40% of the total lube base stock production capacity in the
country. It was the first oil major to tap the capital market in February,
1995.
Further, the
company is evaluating the possibility of tapping the market in the current year
to part fund its proposed nine-tonne Bhatinda refinery. A subsidiary company
"Guru Gobind Singh Refineries" has been incorporated on December,
2000. Land admeasuring approximately 2000 acres has been acquired. The project
cost has been worked to Rs. 980600 millions.
The company has
completed the Rs.37800 millions Vijaywada to Secunderabad pipeline project and
commissioned it on March, 2002. The company has also commissioned the 8 Km long
tanker discharge pipeline between sunken ship jetty and ATP terminal at Visakh
(laid at a cost of Rs.1500 millions) on June, 2001. Further the company is
taking up a capacity augmentation project of 10 LPG bottling plants to the
extent of 280 TMTPA is in progress and is expected to be completed during
2002-03.
The story begins
with formation of the Standard Oil Trust in the 1860s and its subsequent merger
with rivals – Royal Dutch, Shel and Rothschilds, to form Asiatic Petroleum (
The company started
with the marketing of Kerosene. With
motor cars, came canned petrol, followed by service stations. In 1932, when civil aviation arrived in
Subject is
The company
embarked upon a strategic change plan in 1996. The organisation structure has
been revamped and six strategic business units have been created. The new
structure is based on business processes, is flexible, more responsive to
external changes, has fewer layers and above all, ensures a much higher
customer focus.
During the year
2000-01, the company issued bonus shares in the ratio of 1:1, thereby enhancing
its equity capital to Rs.30000 millions. Also Recently it acquired 55% stake in
Kochi Refinery Limited from the Government of India and 19% in Numaligarh
Refinery Limited from IBP. Consequent to this, KRL and NRL have become
subsidiaries of the company. Government had a 66% stake in the company, which
it plans to divest in due course of time. The contenders for the same include
MNCs like shell along with domestic companies like Reliance Industries. A
possible cross holding between the company and Hindustan Petroleum Corporation
Limited is also proposed.
Refinery
Modernization Project was being implemented at a cost of Rs.183100 million.
This project besides improve distillate yield and energy efficiency, will
enhance the crude oil capacity to 12 MMTPA. The project was expected to be
commissioned October, 2004. Gas Turbine and Heat Recovery Steam Generator
project was commissioned during 2001-02 at a cost of Rs.17500 million. The long
term plan of setting up a 7 MMTPA capacity grassroots refinery project in
Allahabad District of UP is under final stage of approval. The forestland of
450 acres had been approved and the estimated cost of the Refinery project
amounts to 618000 million. This project is planned in such a way it should be
mechanically completed within 48 months from the date of receipt of all
statutory approvals.
PERFORMANCE
OVERVIEW
Group Performance
The aggregate
Refinery throughput at BPCL’s Refineries at Mumbai and
The financial year
saw the group achieve a sales turnover of Rs.1337491.000 millions, as compared
to Rs.1473368.200 millions recorded in 2008-09. The Profit after Tax stood at
Rs.17199.800 millions in 2009-10 as against Rs.7241.300 millions in the
previous year. After setting off the minority interest, the Group earnings per
share increased to Rs.45.15 in the current year from Rs.17.53 in 2008-09.
Company
Performance
During the year
2009-10, the crude throughput at BPCL’s refineries at Mumbai and
BPCL’s sales
turnover for 2009-10 stood at Rs.1314997.200 millions, reflecting a reduction
of 9.55% over the previous year’s turnover of Rs.1453920.700 millions. However,
the sales in volume terms increased from 27.16 MMT in 2008-09 to 27.70 MMT in
2009-10, registering an increase of 1.99%. The profit before tax for the year
increased by 132.65% over the preceding year to reach a level of Rs.23660.500
millions as compared to Rs.10041.100 millions in 2008-09. After providing for
tax, (including deferred tax and fringe benefit tax) of Rs.8284.300 millions as
against Rs.2682.100 millions during the last year, the profit after tax for the
year stood at Rs.15376.200 millions, showing an increase of 108.94% over the
level of Rs.7359.000 millions recorded in 2008-09.
The Board of
Directors has recommended a dividend of 140% (Rs.14 per share) for the year on
the paid-up share capital of Rs.3615.400 millions which will absorb a sum of
Rs.5789.300 millions out of the profit after tax inclusive of Rs.727.700
millions for Corporate Dividend Tax on distributed profits. BPCL’s net worth as
on 31st March, 2010 stands at Rs.130867.100 millions, as compared to
Rs.121281.100 millions as at the end of the previous year.
The earnings per
share amounted to Rs. 42.53 in 2009-10 as compared to Rs. 20.35 in 2008-09.
Internal cash generation during the year were higher at Rs.18981.000 millions
as against Rs.12822.900 millions in 2008-09. BPCL’s contribution to the
exchequer by way of taxes and duties during 2009-10 amounted to Rs.266857.500
millions as against Rs.253317.800 millions in the previous financial year.
Borrowings from banks decreased from Rs.192425.600 millions as at 31st March,
2009 to Rs.187438.700 millions at the close of the current financial year. The
Collateralized Borrowing and Lending Obligation (CBLO) through Clearing
Corporation of India Limited amounted to Rs.5000.000 millions as at the end of
the year as compared to Rs.1500.000 millions at the end of the previous year.
Loans from Oil Industry Development Board increased to Rs.9213.700 millions as
at 31st March, 2010 as compared to Rs.7615.000 millions at the end of the
previous year. Debentures worth Rs.10000.000 millions were issued during the
year and remained outstanding as on 31st March 2010 in addition to the
debentures of Rs.10000.000 millions issued in 2008-09.
Public deposits as
at 31st March 2010 stood at Rs.2.400 millions as compared to Rs.34.500 millions
at the end of the previous year. The amount of deposits, matured but unclaimed,
at the end of the year was Rs.1.500 millions, which pertains to 35 depositors.
The total Capital
Expenditure during the year 2009-10 amounted to Rs.34465.500 millions as
compared to Rs.23893.400 millions during the year 2008-09.
REFINERIES
MUMBAI REFINERY
During the year
2009-10, Mumbai Refinery with an installed capacity of 12 MMTPA, processed
12.52 MMT of crude oil as against 12.26 MMT processed in 2008-09.
Notwithstanding
the turnarounds in some major units during the year, the refinery achieved a
capacity utilization of 104% as compared to 102% in the previous year. The
refinery achieved its highest ever production of several products including
Liquefied Petroleum Gas (LPG), Methyl Tertiary Butyl Ether (MTBE), Aviation
Turbine Fuel (ATF) and Lube Base Oils. The refinery also commenced the
production of Euro IV quality Motor Spirit (MS) and High Speed Diesel (HSD)
from February 2010. During the year, the refinery processed the Nigerian crude
oil - Agbami for the first time. The gross refining margin (GRM) for the year
stood at USD 1.78 per barrel as compared to USD 4.48 per barrel in 2008-09.
This has translated into an overall gross margin of Rs.7926.300 millions for
the year as compared to Rs.18922.800 millions in 2008-09. The reduction in the
GRM was mainly due to volatility in the international prices of crude oil and
finished products and unfavorable crude-product spreads.
Kochi Refinery
recorded a throughput of 7.89 MMT in 2009-10 as compared to 7.68 MMT achieved
in 2008-09. The capacity utilization of the refinery stood at 105% as compared
to 102.4% in the previous year. This was achieved despite a major shutdown
undertaken in connection with the capacity expansion of the refinery. The
refinery also processed the Agbami crude oil for the first time. The refinery
achieved its highest level of production of ATF and packed Bitumen during the
year. The gross refining margin for the year 2009-10 was USD 4.87 per barrel as
against USD 6.28 per barrel in the previous year. This translated into an
overall gross margin of Rs.13666.300 millions for the year as compared to
Rs.16587.800 millions in 2008-09.
MERGER OF KRL WITH
BPCL
As informed in the
last year’s Report, merger of the erstwhile Kochi Refineries Limited (KRL) with
BPCL under Sections 391 to 394 of the Companies Act 1956 had been completed,
following receipt of the Order dated 18th August, 2006 issued by the Ministry
of Company Affairs,
MARKETING
During the year
2009-10, BPCL’s market sales volume touched a level of 27.70 MMT as compared to
27.16 MMT
in the previous
year. This represented a growth rate of 1.99% over the previous year. BPCL’s
market share amongst the public sector oil companies stood at 22.38% as at 31st
March, 2010 as compared to 22.62% as at the end of the previous year.
PROJECTS
Bharat Oman
Refineries Limited (BORL), a company promoted by BPCL, is setting up a 6 MMTPA
capacity grass roots Refinery at Bina in Madhya Pradesh. Oman Oil Company
Limited (OOC) is partnering BPCL in this project.
The refinery is
being set up along with crude oil import facilities consisting of a Single
Point Mooring (SPM) system and Crude Oil Storage Terminal (COT) at Vadinar and
cross-country crude oil pipeline from Vadinar to Bina. The project is estimated
to have an as-built capital cost of Rs.113970.000 millions which will be funded
with a debt equity ratio of 1.6:1.
BORL has an
authorized share capital of Rs.70000.000 millions. BPCL and OOC had invested
Rs.755.000 millions each in the equity share capital of BORL. BPCL, with the
approval of the Government of India, decided to enhance its equity contribution
in the equity of BORL to the extent of 50%. OOC agreed to make an additional
investment of Rs.12196.700 millions in 81.31 crores equity shares at a premium
of Rs. 5 per share for which the Investors Rights Agreement (IRA) was signed
between BPCL, OOC and BORL in November 2009. The agreed investment has been
brought in and OOC was allotted 81.31 crores equity shares in May 2010. As on
31st March, 2010, BPCL had contributed a sum of Rs.13000.000 millions towards
subscribing for shares in BORL. An amount of Rs. 8131.100 millions from this
was converted into 81.31 crores equity shares at par and allotted to BPCL in
May 2010. The balance amount of Rs.4868.900 millions was converted into 48.69
crore warrants representing the right to subscribe to 48.69 crore equity shares
of Rs. 10 each. BPCL has also made additional investment of Rs.4487.900
millions against which it was allotted 29.92 crore warrants, which will be
entitled for equal number of equity shares of Rs. 10 each at a later date. Till
the time the total equity of BORL is tied up, BPCL and OOC will hold 50% shares
each in BORL. On a future date, BPCL and OOC will be holding about 49% and 26%
respectively in the fully diluted equity of BORL.
The refinery is
slated to commence commercial production in the current year. The crude oil
receipt facilities at Vadinar and crude oil tankages and intermediate product
tankages at the refinery site have been commissioned. The Vadinar – Bina crude
oil pipeline has been commissioned and crude oil has been received in the
refinery tanks. The Crude Distillation Unit was commissioned on 29th June,
2010. The cumulative capital expenditure as on 30th June, 2010 amounted to
Rs.99380.000 millions. The total commitments made up to that date was
Rs.110120.000 millions.
Bina Product
Despatch Terminal
The Bina Product
Despatch Terminal is designed to facilitate the marketing of products from the
new refinery at Bina. The dispatch terminal was completed with a tankage of
4.45 lakh kilolitres for storing white oils, 10 bay road
loading gantry and
single spur rail loading gantry for white oils, 6 x 1400 MT LPG mounded
storage, 4 bays road loading gantry for LPG, and other associated
infrastructural facilities, adjacent to the Bina refinery. The terminal
facilities are mechanically complete. Receipt and road dispatch facilities for
LPG and SKO have been commissioned. The balance commissioning will be
synchronized with the commissioning of the Bina Refinery. The approved cost of
the project is Rs.6391.100 millions and the cumulative expenditure as on 30th
June, 2010 stood at Rs.5653.300 millions.
Bina Kota Product
Pipeline
The project, with
an approved cost of Rs.4058.200 millions, involved the laying of an 18” (45.72
cm) dia, 257 km long cross-country product pipeline from Bina to
The pipeline is
designed for an initial throughput of 2.8 MMTPA and will be connected to the
existing multi-product Mumbai-Manmad-Manglya-Piyala-Bijwasan pipeline at
Capacity Expansion
cum Modernization Project (CEMP) – Phase II at
The project was
undertaken to put up facilities for production of auto fuels i.e. MS and HSD
conforming to Euro III/IV equivalent norms along with modernization and
capacity expansion of the refinery from 7.5 MMTPA to 9.5 MMTPA. The approved
cost of the project is Rs.39410.000 millions.
The capacity
expansion of the refinery was completed in July 2009 and the balance facilities
are expected to be completed by October 2010. The overall physical progress of
the project is 96.10 % as on 30th June 2010 and the total expenditure as on
that date stood at Rs.27319.300 millions.
Fuels Quality
Upgrade Project at Mumbai Refinery
The project
costing Rs.3900.000 millions was undertaken to make plant modifications at the
Mumbai refinery for improving quality of MS and HSD to meet the Euro IV
equivalent norms. The capacity of the Diesel Hydrodesulphurization Unit has
been enhanced from 1.4 MMTPA to 2 MMTPA and a new FCC Gasoline Splitter at the
Refinery was erected. The project has been completed and the units commissioned
in January 2010.
Continuous
Catalytic Regeneration Reformer (CCR) Facilities and Hydrocracker Revamp
The project is
being undertaken to increase the production of Euro IV grade MS and HSD at
Mumbai Refinery. This involves revamping of the Hydrocracker Unit to increase
the capacity from 1.75 MMTPA to 2.0 MMTPA and setting up of a 0.9 MMTPA
capacity Continuous Catalytic Regeneration (CCR) Reformer Unit at a cost of
Rs.8250.000 millions. The project is scheduled for completion by December 2011.
As on 30th June, 2010, the project has achieved physical progress of 19.67 %.
The cumulative expenditure as on that date was Rs.625.400 millions and the
total commitment has exceeded Rs. 2110.500 millions.
LPG Import
Facilities at JNPT with Strategic Storage at Uran
The project is
being undertaken to develop LPG import facilities at Jawaharlal Nehru Port
Trust (JNPT) including installation of marine unloading arms and associated
facilities; laying of 12” (30.48 cm) pipeline from JNPT to Uran LPG plant and
development of refrigerated storage at Uran. The approved cost of the project
is Rs.3044.000 millions.
The project has
achieved an overall progress of 65.6% as on 30th June, 2010 and is scheduled
for completion in December 2010. The cumulative expenditure as on 30th June,
2010 stood at Rs.1113.900 millions.
Strategic Storage
for LPG
Strategic storage
for LPG, at a total cost of Rs.1930.000 millions, is being provided by putting
23 mounded storage vessels at 12 different locations. These were re-designed
after standardization of size and capacity, cost optimization and vessel
fabrication. The work at locations is expected to be completed by December,
2010.
SUBSIDIARY
COMPANIES
Numaligarh
Refinery Limited (NRL)
NRL was
incorporated in 1993 with an authorized capital of Rs.10000.000 millions. It is
a Mini Ratna company Category I) and has
a 3 MMTPA refinery at Numaligarh in
Bharat
PetroResources Limited (BPRL)
BPRL was
incorporated on 17th October, 2006 as a wholly owned subsidiary company of
BPCL, with the objective of implementing BPCL’s plans in the upstream
exploration and production sector. The company has an authorized capital of
Rs.10000.000 millions. As on 31st March, 2010, the subscribed share capital of
BPRL was Rs.7025.500 millions. The exploration and production activities of
BPRL and its subsidiary companies extend to 26 exploration blocks where they
hold participating interests (PI). Of this, 9 blocks are in
During the year
2009-10, significant level of exploration activities were undertaken,
particularly in
BPRL had formed a
wholly owned subsidiary company, Bharat Petro Resources JPDA Limited (BPR-JPDA
LTD) through which it holds a participating interest of 20% in Block-JPDA
06-103-East Timor in the Joint Petroleum Development Area between Australia and
East Timor. Further, BPRL has incorporated a wholly owned subsidiary company,
BV holds
participating interest of 12.50% in a block in
BPRL earned income
of Rs.4.200 millions for the financial year ending 31st March, 2010 and had a loss
of Rs.357.200 millions as compared to an income of Rs.48.700 millions and loss
of Rs.139.300 millions for the financial year ending 31st March, 2009.
JOINT VENTURE
COMPANIES
Petronet LNG
Limited (PLL)
PLL was formed in
April, 1998 for importing LNG and setting up LNG terminals with facilities like
jetty, storage, regasification etc. to supply natural gas to various industries
in the country. The company was incorporated with an authorized share capital
of Rs.12000.000 millions. PLL was promoted by four public sector companies viz.
BPCL, Indian Oil Corporation Limited (IOC), Oil and Natural Gas Corporation
Limited (ONGC) and GAIL (
The expansion of
the regasification capacity at Dahej from 5 MMPTA to 10 MMTPA was commissioned
in July 2009. The capacity is being further expanded to 12.50 MMTPA. The work
on the green field terminal at
PLL recorded a
sales turnover of Rs.106029.400 millions in the financial year ending as on
31st March, 2010 as compared to Rs.84287.000 millions recorded in 2008-09. The
net profit for the year stood at Rs. 4045.000 millions as compared to
Rs.5184.400 millions achieved in the previous year. Consequently, the EPS has
declined from Rs. 6.91 in 2008-09 to Rs. 5.39 in 2009-10. PLL has maintained
the dividend of 17.50% for the financial year 2009-10.
Indraprastha Gas
Limited (IGL)
IGL, a Joint
Venture Company with GAIL, was set up in December, 1998 with an authorized
share capital of Rs.2200.000 millions for implementing the project for supply
of Compressed Natural Gas (CNG) to the household and automobile sectors in
IGL registered a
turnover of Rs.12131.300 millions and a profit after tax of Rs.2154.900
millions for the financial year ending as on 31st March, 2010 as compared to a
turnover of Rs.9621.400 millions and a profit after tax of Rs.1724.700 millions
during the previous year. IGL has declared a dividend of Rs.4.50 per share
against a dividend of Rs. 4.00 per share in the previous year. IGL’s net worth
was Rs.8254.800 millions with a book value of Rs.58.93 per share as at 31st
March, 2010. The shares of the company are listed on the Stock Exchange, Mumbai
and National Stock Exchange of India limited.
Sabarmati Gas
Limited (SGL)
SGL, a Joint
Venture Company promoted by BPCL and Gujarat State Petroleum Corporation (GSPC)
was incorporated on 6th June 2006 with an authorized capital of Rs.1000.000
millions for implementing the City Gas distribution project for supply of CNG
to the household and automobile sectors in the city of
Both the promoters
have a stake of 25% each in the equity capital of SGL and the balance has been
subscribed to by financial institutions. SGL has set up 13 CNG stations. SGL
has achieved a turnover of Rs.2979.100 millions and profit after tax of
Rs.277.200 millions for the financial year ending 31st March, 2010 against a
turnover of Rs.2604.500 millions and a Profit after tax of Rs.181.200 millions
in the previous year. The company has proposed to maintain dividend on equity
shares at the rate of 15% for the financial year ending 31st March, 2010.
Central UP Gas
Limited (CUGL)
CUGL is a Joint
Venture Company set up in March, 2005 with GAIL as the other partner, for
implementing the project for supply of CNG to the household, industrial and
automobile sectors in
CUGL has achieved
a turnover of Rs. 424.200 millions and profit of Rs. 71.900 millions for the
financial year ending 31st March, 2010 as compared to turnover of Rs.356.400
millions and a profit of Rs.78.800 millions in the previous year. The EPS for
the year stood at Rs. 1.26 as against Rs. 1.39 in 2008-09. The Board of
Directors has recommended the payment of dividend at 3.50%, the same as last
year.
Maharashtra
Natural Gas Limited (MNGL)
MNGL was set up on
13th January, 2006 as a Joint Venture Company with GAIL for implementing the
project for supply of CNG to the household and automobile sectors in Pune and its
nearby areas. The company was incorporated with an authorized share capital of
Rs. 1000.000 millions. BPCL and GAIL have invested Rs. 225.000 millions each in
MNGL’s equity capital. The Maharashtra Government will hold a 5% stake in the
company. MNGL has completed its financial closure by inducting IDFC, ILFS and
Axis Bank as shareholders. The Company has set up 13 CNG stations till 31st
March, 2010.
MNGL has achieved
a turnover of Rs. 109.200 millions for the financial year ending 31st March,
2010 and loss of Rs. 15.600 millions for the year as against a turnover of
Rs.14.800 millions and a loss of Rs.36.800 millions for the period 7th October,
2008 to 31st March , 2009.
Bharat Stars
Services Private Limited (BSSPL)
BSSPL, a Joint
Venture Company promoted by BPCL and ST Airport Pte Limited,
The two promoters
have each subscribed to 50% of the equity capital of BSSPL and BPCL’s present
investment stands at Rs.100.000 millions. The company, which commenced its
operations at the new international airport in Bengaluru from May, 2008, has
recently been issued the Letter of Award for implementing into plane fuelling
services at the new T3 Terminal at
BSSPL has achieved
a turnover of Rs.29.000 millions for the financial year ending 31st March, 2010
and profit of Rs.6.400 millions as against a turnover of Rs.11.900 millions and
a loss of Rs.3.300 millions in the previous year
Bharat Renewable
Energy Limited (BREL)
BREL was incorporated
on 17th June, 2008 for undertaking the production, procurement, cultivation and
plantation of horticulture crops such as Karanj, Jatropha and Pongamia,
trading, research and development and management of all crops and plantation
including Biofuels in the state of Uttar Pradesh, with an authorized capital of
Rs.300.000 millions. The company has been promoted by BPCL with Nandan
Biomatrix Limited,
The Government of
Uttar Pradesh has approved the project under ‘Jeevan Jyoti,’ a scheme of the
Government which has the benefit of release of funds under the Mahatma Gandhi
National Rural Employment Guarantee (MGNREG) scheme. BREL has identified 60,438
acres (24,459 hectares) of wasteland for plantation. Efforts are also being
made to source saplings of Jatropha under the aegis of
Matrix Bharat
Marine Services Pte Limited (MBMS)
MBMS is a Joint
Venture Company incorporated in
The company has
begun the ex-pipe bunkering operations in August, 2008. The company will also
undertake development of international bunkering facilities at Indian ports,
risk management including hedging activities, inventory management, and quality
blending and freight optimization by utilizing the back haulage of time charter
vessels for importing petroleum products in
Petronet India
Limited (PIL)
BPCL has 16%
equity participation with an investment of Rs.160 Millions in PIL which was
formed as a non-government financial holding company to give impetus to the
development of pipeline networks throughout the country. PIL had facilitated
pipeline access on a common carrier principle, through joint ventures for the
pipelines put up by them viz Vadinar-Kandla, Kochi-Coimbatore-Karur and
Mangalore-Hassan-Bangalore. PIL registered income of Rs. 4.100 Millions and a
net loss of Rs. 9.400 Millions for the financial year ending 31st March, 2010
as against income of Rs. 5.200 Millions and a net loss of Rs.270.600 Millions
(including provision for diminution of long term investment) in the previous
year.
The new pipeline
policy announced by the Government of India some time back has affected the
future of the company as interested companies are permitted to undertake
pipeline projects and PIL does not have any new projects in hand. As such,
promoters and other investors in PIL have reached a conclusion that
continuation of PIL would not be viable. Accordingly, the winding up process
has been initiated and the process of divesting PIL’s 26% equity in the 3 Joint
Venture Companies promoted by it is in progress. The Board of Directors of
BPCL, in its meeting held in December 2006, accepted PIL’s offer to buy its 26%
stake in the equity of Petronet CCK Limited where BPCL already holds 49% of the
paid up share capital. This is awaiting receipt of approval of the Government
of India.
Petronet CCK
Limited (PCCKL)
BPCL has invested
a sum of Rs. 490 Millions for a 49% stake in the equity capital of PCCKL, a Joint
Venture promoted with PIL with an authorized share capital of Rs.1350 Millions.
The company owns the 292 km long multi-product Kochi-Karur pipeline from BPCL’s
installation at Irimpanam to Karur for transportation of MS, HSD and SKO. The
pipeline commenced commercial operations from September 2002.
The pumping volume
during the year 2009-10 amounted to 1.72 MMT as against 1.57 MMT in the
previous year. PCCKL registered a turnover of Rs.458.200 Millions and net
profit of Rs.44 Millions for the financial year ending 31st March, 2010 as
compared to a turnover of Rs.457 Millions and loss of Rs.32.500 Millions in the
previous year. BPCL has initiated steps subject to completion of all
formalities to purchase the 26% equity share of PIL in PCCKL.
Delhi Aviation
Fuel Facility Private Limited
A new Joint
Venture Company, Delhi Aviation Fuel Facility Private Limited, has been
promoted by BPCL, IOCL and Delhi International Airport Limited (DIAL) for
implementing Aviation Fuel Facility for the new T3 Terminal at
Management
Discussion and Analysis Report
ECONOMIC
DEVELOPMENTS
After the global
economic meltdown, the year 2009-10 saw signs of recovery, especially in
countries like
The year was
witness to a sharp fall in the global refining margins. At the same time, the
crude oil
prices recovered
considerably as compared to the previous year. While the initial months of the
year saw oil prices rise to around USD 70 per barrel, the subsequent period saw
prices being range bound before closing at around USD 80 per barrel in March
2010. Given the concerns around growth in demand for oil and the comfortable
supply position, there was no sharp rise in crude oil prices. The economic
crisis in
The Indian economy
continued to show resilience and grow notwithstanding the general adverse
conditions. At the same time, it could not achieve growth rates in excess of 9%
which had been achieved consistently before the slowdown set in. Although the
stock markets recovered, risk aversion amongst investors was evident, which was
reflected in the tepid response, particularly from the retail segment to the
Initial Public Offerings (IPO) and Follow up Offerings of Indian companies.
Even the offerings by the public sector undertakings, as part of the divestment
plans of the Government, did not generate the enthusiasm levels seen before the
economic crisis. However, the Foreign Institutional Investors continued to be
optimistic of the
Agriculture, which
remains a major segment of the Indian economy, was affected by the lack of
sufficient rains in many parts of the country. Despite this, the sector
recorded a marginal growth in 2009-10. Inflationary pressures started impacting
the economy. The rise in the price indices remains a cause for concern and
there are expectations of the Reserve Bank of India (RBI) hiking key interest
rates as it tries to rein in inflation. The RBI has also commenced the process
of gradually withdrawing measures that it had introduced in its efforts to help
industry tackle the economic downturn.
TRENDS IN THE OIL
and GAS SECTOR
During 2008-09,
oil prices had reached record levels before retreating sharply. The fall in
global demand consequent to the economic downturn contributed to the fall in
the prices. The International Energy Agency had in April 2010 estimated the
global demand for oil in calendar year 2009 to be of the order of 84.9 Million
Barrels per day (MBPD) representing a decline of 1.3 MBPD over the previous
year. This decline could be attributed to the fall in demand in Organisation
for Economic Co-operation and Development (OECD) countries. The Organisation of
Petroleum
Exporting Countries (OPEC) had in response to these developments, put in place
production cuts and had tried to ensure high levels of compliance. As a result,
oil prices started recovering although they did not go back to the record
levels reached in 2008-09. The benchmark Brent crude touched a high of USD 80.5
per barrel and a low of USD 46.5 per barrel during 2009-10. Demand for crude
oil and prices thereof were helped by strong demand from countries like
Even though there
was a sharp fall in the demand for oil as compared to the previous year on account
of the decline in demand in Europe and North America, strong demand in
countries like
The year 2008-09
had seen a compression in the light-heavy crude and product differentials with
the Brent-Dubai differential down to USD 1.6 per barrel. The trend continued in
2009-10 and the average differential for the year was negligible. The decline
in the differentials can be attributed to reduction in the production of heavy
crude oil. Although the differential between Brent and
Even as demand for
crude oil shows signs of improving, OPEC countries which had cut back
production to arrest the slide of prices can be expected to increase output
gradually to meet the rising demand. At the same time, prices are not expected
to move downwards significantly. However, the uncertainties plaguing the global
economy could have an impact on the crude oil prices, as was seen recently when
crude oil prices declined in response to the Greek debt crisis.
As in the case of
crude oil, the average prices of key petroleum products in 2009-10 were lower
than the prices in 2008-09. This has brought some respite to countries which
are dependent on imports for meeting their requirements of petroleum products.
Demand for gasoline in key markets like
INDIAN PETROLEUM
SECTOR
The year 2008-09
saw the GDP grow at around 6.7% over the previous year. This was in contrast to
the previous few years when the growth was sustained at above 9% levels.
Although the Indian economy was amongst the few in the world to remain on the
growth path, the GDP grew only at 7.4% in 2009-10. With the monsoon being
deficient in large parts of the country, agriculture was impacted and lack of
growth in this sector affected the overall growth rate. However, the Industry
has shown strong signs of rebound while the services sector is slowly
recovering. As per the provisional figures released by the Petroleum Planning
and Analysis Cell in the Ministry of Petroleum and Natural Gas, consumption of
petroleum products in the country in 2009-10 was of the order of 138.2 MMT, which
represented an increase of 3.44% over the previous year when the demand stood
at 133.60 MMT. The growth rate was in line with the rate of increase in
consumption in 2008-09.
Even as demand for
transportation fuels like MS and HSD has grown over the previous year, the two
products reflect different growth trends. While demand for MS has grown by 14%
as compared to 9% in 2008-09, the growth in Diesel demand at 9% is around the
same level as in the previous year. The demand for LPG has increased by around
6.3%. The previous year had seen demand for ATF fall on account of the slowdown
in the Aviation sector. This trend was reversed in the current year with demand
for ATF increasing by 4.6%. However, the consumption of Naphtha has declined
significantly during the year. The growth in Bitumen consumption has been
sustained and there has been an increase in demand for Lubricants reflecting
the improvement in industrial activity. During the year, the cost of the Indian
basket of crude oil averaged around USD 70 per barrel as compared to an average
cost of USD 85.3 in the previous year. The reduction in the cost of the Indian
basket of crude oil was a welcome relief to the oil marketing companies who
have had to bear the burden of under recoveries on account of selling MS, HSD,
SKO and domestic LPG at prices which were below the cost. Although the average
price of the Indian basket of crude oil was lower, there was a sharp rise in
the quantum of crude oil imports.
As compared to the
imports of 128.16 MMT of crude oil in 2008-09, the quantum of crude oil
imported in 2009-10 stood at 159.26 MMT. However, the foreign exchange outgo on
crude oil imports in 2009-10 at USD 80 billion did not differ significantly
from the level of USD 77 billion in 2008-09. This can be attributed to the
lower level of crude oil prices as compared to the earlier year and also on
account of the appreciation of the rupee against the dollar. The international
prices had shown signs of firming with average prices during the period April
2010 to July 2010 being higher than the average price in 2009-10. However, with
concerns centred on the economies in
While the increase
in the country’s refining capacity has meant rising volumes of crude oil
imports, it has also led to a reduction in the import of petroleum products.
The quantum of product imports declined to 14.66 MMT in 2009-10 from a level of
18.29 MMT in the previous year. Consequently, there has been a significant reduction
in the foreign exchange outgo on product imports from USD 13.5 billion to
around USD 7 billion in the current year. At the same time,
The volatile crude
oil prices in 2008-09 had imposed an enormous strain on the finances of the
public sector oil marketing companies. Although the volatility reduced during
the year, the marketing companies continued to suffer from significant amounts
of under-recoveries, which was impacting their liquidity position and leading
to increased levels of borrowings. The Government of India therefore allowed
prices of petrol and diesel to be hiked by Rs. 4 per litre and Rs. 2 per litre
respectively in July 2009. In the Union Budget presented to Parliament in
February 2010, the central excise duty and customs duty in respect of petrol
and diesel were increased and this impact was passed on to consumers. Apart
from this, there were no revisions in the prices of the four sensitive petroleum
products during the year. The under-recoveries on the sale of petrol and diesel
were compensated by the upstream oil companies by way of discount on the crude
oil purchased by the refining companies. In the previous years, the Government
had issued bonds to the oil marketing companies to compensate for the losses
suffered on sale of SKO and domestic LPG. During the current year, there was a
change in the mechanism adopted by the Government, when it decided to provide
cash instead of bonds as compensation against the underrecoveries on the sale
of SKO and domestic LPG. Although this will help in improving the financial
situation of the downstream oil marketing companies, the reimbursement from the
Government was only partial and BPCL had to absorb an amount of around Rs.
12000 Millions.
In February 2010,
the Expert Group on ‘A Viable and Sustainable System of Pricing of Petroleum
Products,’ headed by Mr. Kirit Parikh, submitted its report to the Government
of India. The report recommends the permitting of free market pricing for
petrol and diesel and the raising of the administered prices for domestic LPG
and kerosene. The Government had constituted an Empowered Group of Ministers
(EGM) headed by the Union Finance Minister to decide on the recommendations of
the expert group. The EGM at its meeting held on June 25, 2010 took the
decision to immediately free petrol from pricing controls. The EGM also decided
that decontrol would also be extended to diesel pricing in due course of time.
Consequently, retail selling price of petrol has been increased by Rs. 3.50 per
litre. In the case of diesel, retail selling price has been increased initially
by Rs. 2 per litre. The EGM also decided to increase the retail selling price
of a 14.2 kg domestic LPG cylinder by Rs. 35 and that of kerosene by Rs. 3 per
litre. These decisions will bring significant relief to the public sector oil
marketing companies by reducing the quantum of under-recoveries besides
improving their cash flows. Further, the decision on decontrol of prices of
petrol and diesel will impact demand and will lead to enhanced competition from
private sector oil companies.
With the expected
entry of the major private players following the decontrol of pricing of petrol
and diesel, public sector oil marketing companies will face serious
competition. At the same time, the global economic scene continues to remain an
area of concern. Any crisis that may erupt on account of past excesses would
have a major impact on commodity prices and demand. The coming days therefore,
are likely to be challenging while offering immense opportunities for growth.
PERFORMANCE
The performance of
the various Strategic Business Units (SBUs) and Entities is discussed in detail
in the following paras.
REFINERIES
BPCL achieved a
combined refining throughput of 20.41 MMT in 2009-10 as compared to 19.95 MMT
in the previous year. During the year, the refining capacity at
Despite the major
shutdown of key units for revamp and turnaround activities, both refineries
managed to achieve capacity utilisation in excess of 100%. The Mumbai refinery
recorded its highest ever production of C3, LPG, ATF, Lube Oil Base Stock and
380 cst Fuel Oil.
During the year,
several measures were taken to achieve better refining margins. Substitution of
Naphtha as feed and fuel by Regasified LNG (RLNG), recovery of hydrogen from
CRU offgas and production of light lube fractions were some of the improvement
measures undertaken in the Mumbai refinery. Similarly, the implementation of
Integrated Refinery Business Improvement Program (IRBIP) proposals at
Manufacturing
Execution System consisting of software solutions for Planning, Scheduling,
Blending, Production management and Laboratory Information management which is
helping to streamline the processes and improve decision making.
The refineries
have brought about significant improvements in their day-to-day operations
through quality circles and six sigma clubs. The quality circles which span
almost all major functional areas were exposed to industry best practices
through training programmes, industry visits and competitions. Mumbai
Refinery’s Quality Control Team won the “Par Excellence Award” – the highest
category award – in the National Convention of Quality Circle Forum of India
(QCFI) held at
The refineries
have brought about significant improvements in their day-to-day operations
through quality circles and six sigma clubs. The quality circles which span
almost all major functional areas were exposed to industry best practices
through training programmes, industry visits and competitions. Mumbai
Refinery’s Quality Control Team won the “Par Excellence Award” – the highest
category award – in the National Convention of Quality Circle Forum of India
(QCFI) held at
BPCL Mumbai
Refinery won the Indian Merchants Chamber – Ramakrishna Bajaj National Quality
Award (RBNQA) – 2009, the highest recognition in the manufacturing category,
for the third consecutive year. RBNQA is one of the most prestigious quality
and business excellence awards modelled on the world famous Malcolm Baldrige
National Quality Award in the
High safety
standards were maintained during the year at the refineries leading to good all
round safety performance. The Occupational Health and Safety System at both the
refineries are certified to OHSAS 18001:2007 standards.
In order to
enhance the mechanical integrity and reliability of static equipment, both
refineries have completed implementation of Phase I of the Asset Integrity
Management System (AIMS) involving systematic scheduling and monitoring of
inspection activities, improved analysis of inspection data, generation of
equipment health records etc. through a state-of-the-art software solution. The
refineries have now embarked on Phase II of the project consisting of Risk
Based Inspection (RBI), an initiative to prioritise plant inspection based on
the associated risks (probability and consequence of failure) and schedule
maintenance activities accordingly.
On the
environmental conservation front, the replacement of liquid fuels with RLNG in
Mumbai refinery has contributed to the reduction of CO2 and SO2 emission from
the refinery. The refinery also achieved recycling of around 1200 MT/ day of
effluent water to the Cooling Water System, thus saving equivalent quantity of
precious fresh water. More than 7000 M3 of sludge, generated mostly from crude
oil tank bottom cleaning, was treated successfully at the refineries using
efficient techniques including BLABO technology recovering valuable oil before
residual treatment. New rainwater harvesting facilities were commissioned at
Mumbai refinery with catchment potential of 15000 M3 of water. A Biogas plant
based on technology developed by Bhabha Atomic Research Centre, with a capacity
to treat 1000 Kg/day canteen waste was installed at Kochi Refinery.
In tune with
BPCL’s philosophy of harnessing the human resource potential, various learning
and development initiatives were organized at the refineries. These included
functional programmes, strategy workshops, people management skills and
on-the-job training. More than 4000 employees benefited through such training
programmes during the year. A series of leadership skill development workshops
were also conducted for the officers. In addition to in-house programmes, staff
were also sent for training programmes organized by premier institutions in
Social welfare and
development has been at the core of BPCL’s corporate social responsibility
philosophy. The company’s efforts have been to bring about qualitative changes
in the lives of the surrounding community through well planned and coordinated
social welfare initiatives. During the year, BPCL initiated a number of major
community programmes such as rejuvenation of Thannerchal fresh water lake at
Irimpanam, housing scheme for the poor in the neighbouring Panchayats at
In its continuous
endeavour to ensure quality education, programmes such as donation of
scholarships and utilities for poor students, extending capability exploration
and enhancement programmes for talented poor children and setting up of
one-teacher schools in remote tribal settlements of Kerala were undertaken.
Child guidance clinics providing counselling on scholastic problems,
behavioural patterns and coping with stress for students on a one-to-one basis
and in groups were arranged regularly at schools near Mumbai Refinery.
For enhancing
community safety and security, traffic signal systems at the busy junction of Vyttila,
RETAIL
The Retail segment
of the oil market in
BPCL’s sales
volume of MS in 2009-10 stood at 3.56 MMT as compared to 3.22 MMT in the
previous year reflecting a growth of 10.69%. Although the total volume of MS
has increased, the trend of decline in the sales of branded fuel continued with
sales of ‘Speed’ going down by 42% over the previous year. The sale of ‘Speed’
in 2009-10 was 355.7 TMT as against 610.5 TMT in the previous year. The
continuing decline in the sales volumes of branded fuel can be attributed to
the difference in the basis of taxation as compared to unbranded petrol,
leading to very high price differentials.
BPCL ended the
year 2009-10 with a sales volume of 11.92 MMT of HSD reflecting a growth of 6%
over the volume of 11.24 MMT recorded in 2008-09. As in the case of MS, there
was a sharp decline in the sales of branded HSD ‘Hi Speed Diesel’ with sales
declining from 782.37 TMT in 2008-09 to 274.07 TMT in the current year.
BPCL commissioned
304 new retail outlets during the year. The public sector oil companies
together commissioned 1557 outlets as compared to 116 outlets commissioned by
the private players. The emphasis on site quality in the urban markets and
strategic expansion on highways paid off handsomely. In the Highway sector, the
throughput per outlet for One Stop Truck Stop (OSTS) outlets has reached 811 KL
per month showing a growth of 14.7% and that of Highway Star outlets has reached
400 KL per month. The qualitative aspect of the retail network continued to
make it stand apart from other industry members with overall throughput per RO
for BPCL at 214 KL, which is 21% higher than other industry members. Throughput
of OSTS was less during 2009-10 as compared to 2008-09, due to commissioning of
new OSTS and supply related issues during the first half of the year. BPCL has
ambitious plans of commissioning over 800 new outlets in 2010- 11.
The sales volumes
of CNG and Auto LPG increased as compared to the previous year. During the year
2009-10, CNG sales volume stood at 177.02 TMT, representing a growth of 16.63%
over the volume of 151.78 TMT achieved in the previous year. Similarly, the
sales of Auto LPG showed a marginal increase from 53.72 TMT in 2008-09 to 57.78
TMT in the current year. During the year, 21 CNG stations and 6 Auto LPG
stations were added to BPCL’s network.
The emphasis
during the year was on enhancing customer enablement through a Customer
Acquisition Programme using business models for MS and HSD. It aimed at
acquiring customers outside the outlet, revival of dormant customers and
enrolling more customers to Smart Fleet and Petro Cards. Sales campaigns were
organized to build relationships with the dealers and customers. Special
attention was paid to outlets which had been lagging behind and registering
negative sales growth. These measures have contributed significantly to
increasing sales volumes.
The throughput
handled by Logistics during 2009-10 was 44.17 Million KL, an increase of 15.6%
over the throughput of 38.2 Million KL during 2008-09. The thrust during the
year was on achieving better Inventory control and this led to a reduction in
the working capital to the tune of over Rs. 9000 Millions. The Vehicle Tracking
System now covers the entire fleet of 6000 tank lorries used for delivering MS
and HSD to the retail outlets. The volume of rail movements crossed 39.5 MMT
during 2009-10 which is the highest achieved in a single year. Efficient
operations resulted in the reduction in operating costs and operating losses.
The “Pure for Sure” (PFS) network was further expanded and a total of 7091
retail outlets are now certified under the PFS banner. Over 84% of the retail
outlet network now consistently delivers superior value to the customers.
On the Retail
Automation front, the total number of outlets covered under automation has
reached 2266, which is the highest in the oil industry.
BPCL has launched
the Financial Inclusion program for the Small Distance Commercial Vehicle
(SDCV) customers on 13th July, 2010 in the presence of the Honourable Finance
Minister, Mr. Pranab Mukherjee. BPCL has joined hands with Corporation Bank and
UTI Asset Management Company in this initiative. The programme seeks to help
BPCL’s dealers to build a strong relationship with the customers, many of whom
have a great need for financial inclusion. BPCL’s select Retail Outlet dealers
will work as Business Correspondents of Corporation Bank to facilitate
branchless banking to the trucking customers through biometric smart card based
technology. The customers will be offered a basic savings account involving
small cash deposits and withdrawals, recurring deposit, micro credit, micro
pension, micro insurance and health insurance. Micro credit to eligible
customers will be given at normal banking rates. BPCL is the first and the only
oil company in India so far to offer Financial Inclusion services through its
Retail Outlets in Mangalore and Patna territories, where pilots were launched.
The PetroBonus
Program was the first of its kind to be introduced in
During the year,
the Allied Retail Business grew by 18% with a turnover of Rs. 3590 Millions
making it not only the largest non-fuel revenue generator in the oil industry,
but also one of the leading retail networks in the country offering a basket of
services ranging from C-stores and Quick Service Restaurants, to financial and
travel related services. The network of 235 In and Out stores is by far the
largest organized convenience retailing proposition in the country and recorded
a sales turnover of Rs.1460 Millions. As part of the alliance management
strategy, 332 ATMs from multiple banks are currently operating at BPCL outlets.
The alliance initiative with Western Union Money Transfer continues to do well.
A pilot project for selling Motor Vehicle Insurance policies through the retail
network has been initiated. The In and Out e-Traveller - the e-ticketing/
e-booking facility for rail, air and hotel accommodation is presently available
at 190 outlets.
INDUSTRIAL AND
COMMERCIAL
Even as the
economic revival commenced, the year 2009-10 saw the Industrial and Commercial
(I and C) business face numerous challenges like increasing trend of crude oil
and product prices, large scale import of products by traders and end users,
aggressive selling of products by private marketing companies and improved
availability of gas. After the creation of a new business unit to handle Gas, I
and C business achieved a volume of 5.6 MMT in 2009-10. The increased
availability of gas in the country and priority allocation to the power and
fertilizer sectors has affected the sale of liquid fuels like Naphtha and LSHS,
which has seen a marked reduction of around 21% and 24% respectively in volume
terms during 2009-10. The business continued its focus on Bitumen marketing in
deficit markets, which resulted in BPCL achieving the highest growth in packed
Bitumen sales of 4.76% even as the public sector oil companies saw a decline of
9.3%. BPCL also recorded the highest growth in the sale of products like SBP
and MTO.
The business has
entered the international bunkering segment with the commencement of the 380
cst fuel oil bunkering sales at
Efforts were
continued to achieve speedy collection of customer dues to ensure better cash
flow management. The collections from customers through channels like Real Time
Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) reached a
level of Rs.120000 Millions during the year 2009-10. At present, over 60% of
the total turnover of the business is being collected through these platforms.
Having been able
to successfully withstand the fierce competition and challenging market
conditions, BPCL is gearing up to face fresh challenges by devising appropriate
strategies for re-aligning and positioning itself in high consumption centres
and unrepresented markets.
GAS
BPCL was one of
the first movers in the emerging gas market in
During the year
2009-10, the total gas volume handled was 820 TMT as against 866 TMT in the
previous year. The decrease in volume is on account of the completion of the
contract for supply of RLNG to Ratnagiri Gas Power Private Limited in September
2009 after the allocation of the indigenously produced gas to them. Apart from
the 710 TMT of sales to consumers, 110 TMT of gas was supplied to Mumbai
refinery. BPCL was the first public sector refinery to start drawing from the
KG D6 gas allocation from February 2010. BPCL presently has a firm allocation
of 0.26 mmscmd and fall back allocation of 0.31 mmscmd of RIL D6 gas for use at
Mumbai refinery. A Gas Sale Agreement has also been signed by BPCL along with
other offtakers, with National Thermal Power Corporation Limited for supply of
RLNG for a period of 20 years to their Kayamkulam plant, with BPCL having a
share of 0.4 MMTPA.
LUBRICANTS
The Lubricants
business, which was the first to be decontrolled in the oil sector, is also one
of the most competitive. Given that the Indian economy is expected to deliver
healthy GDP growth rates, the Lubricants business offers immense potential for
growth. BPCL has inherent strengths including a strong geographical presence
across the country, Research and Development competency enabling continuous
product upgrading, own source of Group II+ base oil at Mumbai, pan
In the retail
channel, focus remained on generating secondary sales at the outlet. Initiatives
like MAK QUIK and One Day Wonder improved visibility of the brand and offered a
value proposition to customers. A value added service was created by offering
authorized Hero Honda service stations under the brand ‘City Works’. As at 31st
March, 2010 there are 160 City Works operating at various locations across the
country. The Bazaar channel has assumed great importance and BPCL has
identified high potential markets and remained aggressive in those markets to
achieve deeper penetration. BPCL’s MAK Lubricants are now available across the
country at more that 23,000 retail counters apart from small mechanic shops and
authorized service stations. New products like MAK Boat XP, MAK Chakda were
launched during the year.
BPCL has expanded
its customer base in the Direct market across segments with specific focus on
key growth sectors in
Considering the
importance of the Original Equipment Manufacturers’ (OEM) segment, there was a
special focus on OEM business and BPCL entered into two new alliances which saw
the introduction of Escorts 4 stroke Bike Engine oil and TATA Passenger Car
Motor oils.
Given that the per
capita consumption of lubes in
LPG
The year 2009-10
was an eventful year for the LPG Business. While the international price of LPG
has been vacillating, the domestic LPG consumers were by and large insulated
from those fluctuations. Although BPCL’s profitability and liquidity have been
adversely impacted, the demand of genuine customers was fully met while
ensuring increased efforts to avoid leakage of subsidized LPG to the
non-domestic segment.
BPCL’s total LPG
sales for 2009-10 stood at 3235.82 TMT giving it a market share of 25.8%. LPG
sales volume grew by 6.68% as compared to the previous year when the sales volume
was 3032.9 TMT. With the addition of 1.9 million new customers during the year,
‘Bharatgas’ is present in approximately 28 million households as on 31st March, 2010. The customers are
serviced through a network of 2187 LPG distributorships. In terms of LPG
bottling
infrastructure, BPCL has 49 LPG Bottling Plants with a rated capacity of 2472
TMTPA. The total LPG bottling during the year 2009-10 was 2936 TMT,
representing a capacity utilization of 107%. BPCL has also connected 48,533
households as on 1.4.2010 through the LPG Reticulated System or ‘Piped LP Gas
system’ including 10,332 households who were enrolled in 2009-10. In the
commercial packed segment, where the product is sold at market determined
prices, BPCL’s volumes registered a growth of 26.44%. BPCL has commenced refill
booking through SMS and IVRS system. The refill booking through SMS has been
introduced at all state capital markets and metros. Refill booking only through
SMS/IVRS has been taken up as a pilot for the
During 2009-10,
the ‘Beyond LPG’ initiative registered a turnover of Rs.7000.000 millions
representing a 59% growth over the previous year. BPCL’s efforts are directed
at enrolling more distributors into the programme so that a larger section of
the consumers could benefit from the value proposition. Bharat Metal Cutting
Gas (BMCG), which was developed by BPCL to replace the conventional Acetylene,
has come to be accepted as an ideal product for the metal cutting and brazing
applications in the industrial sector.
The product has
gained tremendous popularity and confidence amongst the industrial users,
primarily because of its performance efficiency and low cost vis-ŕ-vis
Acetylene. Continued refinement of this product is on and IIT, Roorkee has
developed new nozzles which could further improve the cutting performance of
BMCG. During the year 2009-10, 6323 MT of BMCG has been sold to the industrial
sector, registering a growth of 33% over the volumes achieved in 2008-09. As
part of the initiative to market BMCG overseas, BPCL has formed strategic
alliances in the
BPCL continues to
accord the highest priority to HSSE initiatives. A number of initiatives are
being pursued in this area with particular focus on leading a healthy life and
injury free workplace. Several measures have been taken to ensure real time
safety assessment of LPG plants with a view to identify and take corrective
measures without delay.
To meet market
challenges and ever rising customer expectations, effective steps were
undertaken to upgrade the skills and capabilities of field staff through
focused Training and Development plans. During the year, e-learning modules on BMCG, benchmarking and
safety in LPG plants have been developed and launched through the LPG knowledge
portal - “
UNAUDITED FINANCIAL RESULTS
(PROVISIONAL) FOR THE THREE MONTHS ENDED 30TH JUNE 2010
(Rs. in millions)
|
Particulars |
Three
Months ended
30-06-2010 (Unaudited) |
|
A. Physical
Performance |
|
|
1. Crude Throughput
(Million tonnes) |
5.57 |
|
2. Market Sales
(Million tonnes) |
7.34 |
|
3. Sales Growth
(%) |
5.76 |
|
4. Export Sales
(Million tonnes) |
0.60 |
|
B. Financial
Performance |
|
|
1. Sales /
Income from Operations |
373216.200 |
|
Less: Excise Duty
paid |
31097.300 |
|
(a) Net
Sales/Income from Operations |
342118.900 |
|
(b) Other
Operating Income |
206.300 |
|
2. Expenditure |
|
|
a.
(Increase)/decrease in stock in trade and work in progress |
(3230.200) |
|
b. Consumption
of raw materials |
153324.500 |
|
c. Purchase of
traded goods |
180193.000 |
|
d. Employees
cost |
5412.300 |
|
e. Depreciation |
4007.400 |
|
f. Other
expenditure |
20684.500 |
|
g. Total |
360391.500 |
|
3. Profit/(Loss)
from Operations before Other Income, Interest & Exceptional Items (1-2) |
(18066.300) |
|
4. Other Income |
3208.800 |
|
5. Profit/(Loss)
before Interest & Exceptional Items (3+4) |
(14857.500) |
|
6. Interest |
2323.500 |
|
7. Profit/(Loss)
after Interest but before Exceptional Items (5-6) |
(17181.000) |
|
8. Exceptional
Items |
-- |
|
9. Profit/(Loss)
from Ordinary Activities before tax (7+8) |
(17181.000) |
|
10. Tax expense |
-- |
|
11. Net
Profit/(Loss) from Ordinary Activities after tax (9-10) |
(17181.000) |
|
12. Extraordinary
Item (net of tax expense) |
-- |
|
13. Net
Profit/(Loss) for the period (11-12) |
(17181.000) |
|
14. Paid-up
equity share capital (face value of ` 10 per share) |
3615.400 |
|
15. Reserve
excluding Revaluation Reserves as per balance sheet |
-- |
|
16. Earnings Per
Share (EPS) |
|
|
(a) Basic and
diluted EPS before Extraordinary items – Rs. |
(47.52) |
|
(b) Basic and
diluted EPS after Extraordinary items – Rs. |
(47.52) |
|
17. Public
shareholding |
|
|
- Number of
shares * |
162,942,064 |
|
- Percentage of
shareholding |
45.07% |
|
* including BPCL
trust for investment in 33,728,737 shares |
|
|
18. Promoters
and promoter group Shareholding |
|
|
(a)
Pledged/Encumbered |
Nil |
|
(b)
Non-encumbered |
|
|
- Number of
shares |
198,600,060 |
|
- Percentage of
shares (as a % of total shareholding of promoter and Promoter group) |
100% |
|
- Percentage of
shares (as a % of total share capital of the company) |
54.93% |
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2010 (Rs. in millions) |
|
(a) In respect
of taxation |
598.800 |
|
(b) Other
Matters : |
|
|
i) Surety bonds
executed on behalf of other oil companies for excise/customs duties for which
BPCL has signed as surety |
1953.000 |
|
ii) Claims
against the Corporation not acknowledged as debts : |
|
|
(a) Excise and
customs matters |
11908.600 |
|
(b) Sales tax
matters |
26683.000 |
|
(c) Others * |
2631.200 |
|
These include Rs.7515.500 millions against which
the Corporation has a recourse for recovery and Rs.294.200 millions on capital account. * In respect of
lands acquired, land owners have claimed higher compensation before various
Authorities/ Courts, which are yet to be settled. The estimated contingent
liability of Rs. 546.300 millions
in such cases is included above. |
|
|
iii) Claims on
account of wages, bonus/ex-gratia payments in respect of pending court cases.
|
45.500 |
|
iv) Guarantees given on behalf of Subsidiaries/JV's |
37004.300 |
FIXED ASSETS:
- Building
- Railway Sidings
- Plant and Machinery
- Tanks and Pipelines
- Furniture and Fittings
- Vehicles
- Dispensing Pumps
- LPG Cylinders and Allied Equipment
- Sundries
- Intangible Assets
WEBSITE DETAILS:
INVESTOR
GUIDE
In house Share Department in company serves the investors in
regard to the shares of subject. While share dept makes its best efforts to
provide timely and effective service to the Investors, it looks forward to the
Investors help in providing complete reference like Folio no., in their dealing
with share department.
Subject is among the first batch of companies who entered
into agreement with the Depository i.e. National Securities and Depository
Limited (NSDL) to make provision for dealing in its shares in electronic form.
The holding of securities in dematerialised form and dealing through the
Depository is expected to safeguard investors from various problems of loss of
share certificates, difference in signatures on transfer deeds and thus help the
investors in getting quick transfers of shares effected.
This guide is intended to help the investors on the
procedural aspects, in their dealings in the physical as well as
de-materialised form of company shares.
RESULTS OF EGM POLL
Results of the poll conducted at the extraordinary general
meeting of held on 16th January 2006, at Mumbai to approve the scheme of
amalgamation of
Pursuant to the directions of Department of Company Affairs
(DCA) in their Order dated 28.11.2005, a meeting of the equity shareholders of
subject was convened on 16th January, 2006, in Mumbai, to consider the Scheme
of Amalgamation of Kochi Refineries Limited (KRL) with Company. Mr. Ashok
Sinha, C and MD, Subject, was appointed by the DCA by the said Order as the
Chairman of the Meeting.
At the shareholders meeting, 99.00% of the total number of
shareholders present in person/proxy, representing 99.98% of the total value of
the votes cast, voted in favour of the Scheme. Only 10 shareholders present in
person/proxy, representing 0.02 % of the total value of the votes cast, voted
against the Scheme. 17 poll papers were rejected being invalid.
Accordingly, the Scheme was approved by the equity
shareholders of company by an overwhelming majority.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
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.45.44 |
|
|
1 |
Rs.70.61 |
|
Euro |
1 |
Rs.58.63 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
Yes |
|
--LITIGATION |
YES/NO |
No |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
No |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
No |
|
--EXPORT ACTIVITIES |
YES/NO |
Yes |
|
--AFFILIATION |
YES/NO |
Yes |
|
--LISTED |
YES/NO |
Yes |
|
--OTHER MERIT FACTORS |
YES/NO |
Yes |
|
TOTAL |
|
75 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.