MIRA
INFORM REPORT
|
Report Date : |
17.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
GULF OIL CORPORATION LIMITED |
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Registered
Office : |
Kukatpalli P.B. No.1, Sanatnagar (IE), |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
20.04.1961 |
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Com. Reg. No.: |
000876 |
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Paid-up Capital
: |
Rs. 148.717 Millions |
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CIN No.: [Company Identification
No.] |
L24292AP1961PLC000876 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDI00011E |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Subject is engaged in lubricants, industrial explosives, mining and
infrastructure services and property development |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 16000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of International Hinduja Group. It is a well established and 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 good for normal for business dealings at
usual trade terms 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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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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
|
Registered Office/ Corporate Office : |
Kukatpalli P.B. No.1, Sanatnagar (IE), |
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Tel. No.: |
91-40-2381 0671 – 79 |
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Fax No.: |
91-40-23813860 |
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E-Mail : |
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Website : |
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Factory 1 : |
Explosives Division/Mining and Infrastructure
Division Kukatpally Post
Bag No.1, Sanatnagar (I.E) P.O, |
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Tel. No.: |
91-40-23810671/79/23707472 |
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E-Mail : |
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Factory 2 : |
Explosives
Division, Rourkela, |
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Factory 3 : |
Bulk Plants at
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Factory 4 : |
Lubes Division,
Silvassa |
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Factory 5 : |
IN Centre, 49/50 MIDC 12th Road, Marol, Andheri East,
Mumbai – 400093, Maharashtra, India |
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Tel. No.: |
91-22-28248240 |
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E-mail : |
DIRECTORS
As On 14.05.2010
|
Name : |
S. G. Hinduja |
|
Designation : |
Chairman |
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Name : |
R. P. Hinduja |
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Designation : |
Vice Chairman |
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Name : |
K. N.
Venkatasubramanian |
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Designation : |
Director |
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Name : |
P. N. Ghatalia (till 13.8.2009) |
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Designation : |
Director |
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Name : |
H. C. Asher |
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Designation : |
Director |
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Name : |
M. S.
Ramachandran |
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Designation : |
Director |
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Name : |
Mr. Ashok Kini |
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Designation : |
Director |
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Name : |
Mr. Prakash Shah |
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Designation : |
Director |
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Name : |
Ms. Kanchan
Chitale (w.e.f. 5.10.2009) |
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Designation : |
Director |
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Name : |
Vinoo S Hinduja |
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Designation : |
Director |
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Name : |
V. Ramesh Rao |
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Designation : |
Director |
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Name : |
Mr. Vinod K
Dasari |
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Designation : |
Director |
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Name : |
S. Pramanik, Managing Director |
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Designation : |
Director |
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Name : |
A. K. Das, Alternate to S. G. Hinduja |
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Designation : |
Director |
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Name : |
A. V. Dujean, Alternate to R. P. Hinduja |
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Designation : |
Director |
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|
Name : |
Prabal Banerjee,
Alternate to Vinoo S Hinduja |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
S. Subramanian |
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Designation : |
Company Secretary |
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Name : |
A. Satyanarayana |
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Designation : |
Deputy Company Secretary |
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CORPORATE : |
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Name : |
S. Subramanian |
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Designation : |
Chief Financial Officer and Company Secretary |
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Name : |
Y. V. Siva Reddy |
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Designation : |
General Manager (Internal Audit) |
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LUBRICANTS DIVISION : |
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Name : |
Mr. Ravi Chawla |
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Designation : |
President (Lubricants) |
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Name : |
Mr. Amrish Kathane |
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Designation : |
Senior General Manager (Finance and Accounts) |
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Name : |
Y. P. Rao |
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Designation : |
Sr. V.P (Technical) |
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Name : |
Manish Gangwal |
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Designation : |
G.M. (Finance and Accounts) |
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Name : |
R. Varadarajan |
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Designation : |
Sr. V.P. (Sales and Business Development) |
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Name : |
Alok Mahajan |
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Designation : |
G.M. (Marketing) |
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EXPLOSIVES AND CONTRACTS DIVISIONS : |
|
|
Name : |
Raman Gopal |
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Designation : |
President (IDL Divisions) |
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Name : |
Dr. Mohan Kidambi |
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Designation : |
Sr. GM (Explosives Operations) |
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CONTRACTS DIVISIONS : |
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Name : |
S. Chakrabarti |
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Designation : |
Chief Operating Officer (Explosives) |
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Name : |
A. D. Sao |
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Designation : |
Sr. GM (Marketing and Explosives) |
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Name : |
T.T. Das |
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Designation : |
General Manager – Consult |
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Name : |
A.M. Kazmi |
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Designation : |
GM (Exports) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
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|
|
|
|
|
|
|
49,536,335 |
49.96 |
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|
49,536,335 |
49.96 |
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Total shareholding of Promoter and Promoter Group (A) |
49,536,335 |
49.96 |
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(B) Public Shareholding |
|
|
|
|
|
|
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|
2,438,312 |
2.46 |
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2,727,260 |
2.75 |
|
|
298,980 |
0.30 |
|
|
927,346 |
0.94 |
|
|
6,391,898 |
6.45 |
|
|
|
|
|
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15,419,524 |
15.55 |
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|
|
|
|
|
14,569,524 |
14.70 |
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9,982,201 |
10.07 |
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|
3,245,498 |
3.27 |
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|
3,145,462 |
3.17 |
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|
4,000 |
- |
|
|
9,403 |
0.01 |
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|
86,633 |
0.09 |
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|
43,216,747 |
43.59 |
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Total Public shareholding (B) |
49,608,645 |
50.04 |
|
Total (A)+(B) |
99,144,980 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
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|
- |
- |
|
Total (A)+(B)+(C) |
99,144,980 |
- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Subject is engaged in lubricants, industrial explosives, mining and
infrastructure services and property development |
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Products : |
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PRODUCTION STATUS (As On 31.03.2010)
|
Item |
Unit |
Licensed* |
Installed |
Production |
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||
|
Detonators
|
Millon Nos |
192.00 |
192.00 |
115.81 |
|
Detonating
Fuse |
Millon Metres |
45.00 |
22.50 |
25.51 |
|
Safety
Fuse |
Millon Metres |
87.78 # |
- |
- |
|
Industrial
Explosives- |
Tonnes |
138000.00
|
138000.00
|
73727.34
|
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Cartridged,
Bulk, |
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Emulsion
and ANFO |
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Boosters
|
Tonnes |
190.00 |
125.00 |
42.25 |
|
Penta
Erythritol |
Tonnes |
1440.00 |
- |
- |
|
Tetra
Nitrate (PETN) @ |
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|
|
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Exploders
|
Numbers |
500.00 |
- |
- |
|
Single
or double or |
Sq.Metres |
|
|
1122.11 |
|
Multilayer
clad plates $ |
Corresponding to
Tonnes |
! |
!! |
70.96 |
|
Lubricating
Oils |
KL |
NA |
75000.00
|
47298.00
|
* Installed Capacity
is as certified by the Managing Director and not verified by the auditors,
being a technical matter
Notes:
1. Licensed
capacity includes letter of intent issued by Government of India and includes
application for renewals
# As given in the
license, 12 million coils per annum which is equivalent to 87.78 million metres
@ Only Bhiwandi
Plant for which a separate license has been obtained, however, the plant has
since been closed.
! 1,00,000 Sq
metres corresponding to maximum tonnage of 25,000 tonnes of cladding plates
!! Installed
Capacity is not estimatable as production can be increased substantially with
the facilities available merely by increasing the size/weight of clad plates
$ Excludes product
meant for development production of intermediate products captively consumed
and products for which no separate license was required, has not been included
above.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Deloitte Haskins
and Sells Chartered
Accountants |
|
Address : |
Secunderabad, |
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|
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|
Name : |
Shah and Company
Chartered
Accountants |
|
Address : |
Mumbai (Branch Auditors), Maharashtra, |
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Subsidiaries : |
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Entity holding more than 20% of the shareholding in the Company |
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CAPITAL STRUCTURE
As On 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
125000000 |
Equity Shares |
Rs. 2/- each |
Rs. 250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
74358735 |
Equity Shares |
Rs. 2/- each |
Rs. 148.717
Millions |
|
|
|
|
|
Note:
Of the above
(a) 4,65,025
shares represent 93,005 shares after sub-division of shares of Rs.10 to Rs.2
each allotted as fully paid pursuant to contract without payment being received
in cash
(b) 2,60,75,125
shares represent 52,15,025 shares after sub-division of shares of Rs.10 to Rs.2
each allotted as fully paid up bonus shares by capitalisation of Reserves.
(c) Pursuant to
the merger scheme as approved by Board for Industrial and Financial
Reconstruction, 15,18,735 shares represent 3,03,747 shares after sub-division
of shares from Rs.10 to Rs.2 each, allotted effective 31.03.1999 to the
shareholders of erstwhile IDL Salzbau (India) Limited.
(d) 2,93,50,000
represent 58,70,000 after sub-division of shares from Rs.10 to Rs.2 each,
allotted effective 01.01.2002, consequent to the amalgamation of erstwhile Gulf
Oil India Limited, to the shareholders of erstwhile Gulf Oil India Limited
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 |
148.717 |
148.717 |
148.717 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4078.977 |
3979.417 |
20390.139 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4227.694 |
4128.134 |
20538.856 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1707.451 |
1712.263 |
1345.772 |
|
|
2] Unsecured Loans |
1341.283 |
2370.368 |
1116.340 |
|
|
TOTAL BORROWING |
3048.734 |
4082.631 |
2462.112 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7276.428 |
8210.765 |
23000.968 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5687.035 |
5919.223 |
19897.198 |
|
|
Capital work-in-progress |
123.352 |
148.436 |
145.234 |
|
|
|
|
|
|
|
|
INVESTMENT |
305.774 |
306.767 |
585.208 |
|
|
DEFERREX TAX ASSETS |
14.627 |
52.827 |
46.947 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1213.034
|
1639.940 |
1151.159 |
|
|
Sundry Debtors |
1180.841
|
1654.689 |
1630.185 |
|
|
Cash & Bank Balances |
818.169
|
858.061 |
377.880 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
642.888
|
723.262 |
730.273 |
|
Total
Current Assets |
3854.932
|
4875.952 |
3889.497 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1298.250
|
1312.279 |
1275.834 |
|
|
Other Current Liabilities |
150.970
|
560.599 |
100.770 |
|
|
Provisions |
1260.072
|
1219.562 |
253.650 |
|
Total
Current Liabilities |
2709.292
|
3092.440 |
1630.254 |
|
|
Net Current Assets |
1145.640
|
1783.512 |
2259.243 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
67.138 |
|
|
|
|
|
|
|
|
TOTAL |
7276.428 |
8210.765 |
23000.968 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9760.625 |
9123.016 |
7471.629 |
|
|
|
Income from property development |
0.000 |
105.000 |
60.000 |
|
|
|
Other Income |
264.930 |
254.452 |
330.614 |
|
|
|
TOTAL (A) |
10025.555 |
9482.468 |
7862.243 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials |
4704.918 |
4491.603 |
3923.649 |
|
|
|
Other operating expenses |
4510.889 |
4206.564 |
3218.633 |
|
|
|
Exceptional item |
(158.461) |
0.000 |
49.377 |
|
|
|
TOTAL (B) |
9057.346 |
8698.167 |
7191.659 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
968.209 |
784.301 |
670.584 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
255.107 |
243.036 |
213.297 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
713.102 |
541.265 |
457.287 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
170.079 |
153.724 |
160.227 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
543.023 |
387.541 |
297.060 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
92.300 |
97.103 |
45.743 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
450.723 |
290.438 |
251.317 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
585.740 |
480.195 |
385.372 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
50.000 |
37.000 |
26.000 |
|
|
|
Proposed Dividend |
133.846 |
126.410 |
111.538 |
|
|
|
Dividend Tax |
22.230 |
21.483 |
18.956 |
|
|
BALANCE CARRIED
TO THE B/S |
830.387 |
585.740 |
480.195 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
602.934 |
413.937 |
429.803 |
|
|
TOTAL EARNINGS |
602.934 |
413.937 |
429.803 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1100.590 |
2098.294 |
1374.238 |
|
|
|
Capital Goods |
3.685 |
119.924 |
62.959 |
|
|
|
Stores and Spares |
0.000 |
0.000 |
0.357 |
|
|
|
Traded Goods |
14.798 |
158.182 |
148.052 |
|
|
TOTAL IMPORTS |
1119.073 |
2376.400 |
1585.606 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
6.06 |
3.91 |
3.42 |
|
|
|
- Diluted |
6.06 |
3.91 |
3.42 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
31.03.2011 4th
Quarter |
|
Net Sales |
2325.750 |
2450.410 |
2583.400 |
2260.090 |
|
Total Expenditure |
2156.690 |
2329.130 |
2460.320 |
2162.600 |
|
PBIDT (Excl OI) |
169.060 |
121.280 |
123.080 |
97.490 |
|
Other Income |
10.140 |
21.940 |
106.940 |
166.740 |
|
Operating Profit |
179.190 |
143.220 |
230.020 |
264.230 |
|
Interest |
60.680 |
45.820 |
46.770 |
0.000 |
|
Exceptional Items |
40.710 |
81.000 |
46.700 |
32.760 |
|
PBDT |
159.220 |
178.400 |
229.950 |
296.990 |
|
Depreciation |
42.950 |
40.640 |
38.680 |
42.980 |
|
Profit Before Tax |
116.270 |
137.760 |
191.270 |
254.010 |
|
Tax |
23.200 |
14.600 |
38.700 |
65.100 |
|
Profit After Tax |
93.070 |
123.160 |
152.570 |
188.910 |
|
Net Profit |
93.070 |
123.160 |
152.570 |
188.910 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.50
|
3.06 |
4.90 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.56
|
4.25 |
3.98 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.69
|
3.59 |
1.25 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.09 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.36
|
1.74 |
0.20 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.42
|
1.58 |
2.39 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
The total turnover
of the Company increased to Rs.10656.600 millions (Rs.9958.900 millions). The
profit before extraordinary items and taxation was Rs.384.600 millions
(Rs.387.500 millions). The profit before tax and exceptional income was
Rs.543.000 millions (Rs.387.500 millions). The profit after provision for tax
of Rs. 54.100 millions and deferred tax of Rs.38.200 millions, was Rs.450.700
millions (Rs. 290.400 millions) resulting in an EPS of Rs.6.06 for the year
(Rs.3.91).
DIVISIONAL
PERFORMANCE
Industrial
Explosives
The Explosives
Division has three main business groups namely :
- Industrial (Commercial) Explosives and
Blast Initiation Systems Group manufactures and markets the full range of
packaged and bulk explosive products and blasting accessories including
cast boosters for the mining, civil infrastructure and oil exploration
sectors.
- Metal Cladding Group manufactures
explosively bonded metals used in a number of industries such as ship
building, electrical and chemicals. It has also developed deep surface
hardening processes utilised by the mining equipment and railway sectors.
- Special Products Group manufactures
high energy materials, specialised products for defence, space and other
specialized applications.
All operations of
commercial explosives, blasting accessories and metal cladding are covered
under ISO 9001-2000 quality systems. The Division has embarked on an ambitious
plan to bring its activities under the Integrated Management System (IMS)
comprising of ISO 9001-2008 Quality Management System, ISO 14001-2004
Environmental Management System and ISO 18001-2007 Occupation Health and Safety
Management System over two years.
The Division
achieved an overall turnover of Rs. 3080.000 millions as against last year's
turnover of Rs. 2770.000 millions, representing a growth of 11%. Export
turnover increased by 13% this year. Availability of Ammonium Nitrate, a major
ingredient in explosives, continued to be critical, warranting import to
supplement purchases from domestic sources.
Coal Production in
Focus was also
given to consolidate the Division’s position in the non-coal sector. This
resulted in the increase of
value added
products turnover by 14%. The Division has added a packaged emulsion explosives
manufacturing facility to meet the growing requirement of this kind of product
at
The Division’s
indigenously designed electronic detonator e-DET has been the choice of
many surface coal mines
for carrying out
cautious blasts to reduce ground vibrations. Taking a technical step, a ‘Fully
Field Programmable’ electronic detonator was designed by the R and D laboratory
of the Division to meet customer specific requirements. A new P5 Permitted
category explosive product developed for a Coal S and T project mooted by the
Explosives and Explosion Laboratory of Central Institute of Mining and Fuel
Research (CIMFR), a CSIR laboratory based in Dhanbad, has been commercialized
during the year after successful trials in mines of Singareni Collieries
Company Limited, Monnet Ispat and Energy Limited and Coal India Limited.
Metal Cladding
Group
Technology using
explosives has been adopted for metallurgical bonding of dissimilar metals,
like Nickel and Nickel alloys, various grades of HASTELLOY, Copper and Copper
alloys, Titanium, Stainless steel, Niobium, Aluminum on carbon steel / alloy
steel and other ductile metals. The economic slowdown that led to postponement
/ reduced capital investments during F 2010 adversely affected this business
segment. The Metal Cladding Group posted a turnover of Rs. 58.572 millions (Rs.
101.453 millions).
Special Products
Group (SPG)
SPG was created to
cater to the use of pyrotechnic and high energy materials for special
applications mainly in the Space and Defense sectors. Development and
production of new products within time-bound and cost effective parameters were
carried out under strict confidentially and under controlled environment. The
Group executed orders of Rs. 13.600 millions (Rs. 29.000 millions).
Mining and
Infrastructure (IDLconsult)
The Division ended
the year with a turnover of Rs. 1940.000 millions as against Rs. 2110.00
millions in F 09. The reduction in business for the year was mainly on account
of the completion of one large contract at Dudhichua Project of Coal India
Limited in the middle of F10. The 36 months’ contract at Dudhichua was
completed in 32 months. The project handled 30 million cubic meters of rock as
per the contract successfully. The other large ongoing contract in F10 was at
Nigahi Project under Coal
Further progress
was made in the large infrastructure Project under Aditya Birla Group for their
Alumina Plant in Rayagada, Orissa, during the year. The Division is equipped to
handle large complex projects. The 3D Laser Scanning Survey equipment for mine
planning and control along with VSAT network across the sites, online MIS and
SAP linkages have helped improve operational efficiency and scheduling.
Lubricants
The overall
performance of the Lubricants Division has been positive for the financial year
2009-10 in terms of volume growth and profitability. The turnover of the
Division was Rs. 563 millions, 11% over previous year. The automobile industry
started off on a sedate note in the beginning of the year, which saw decline or
slow growth in sales of heavy commercial vehicles in the first 2 quarters. The
commercial vehicles market witnessed strong growth from Q3 onwards and was back
on track from October 2009. Other vehicles (cars, 2-wheelers, tractors) grew
well across the year and overall the automobile industry grew by over 25 %.
Accordingly, demand conditions in the lube industry picked up from Q3 across
automotive and industrial segments.
The Lubricants
Division had aimed to achieve higher volume growth than the industry and grew
faster than competition. The key strategies, with a focus on segment wise
approach backed by brand building initiatives, were successfully executed
across core segments of New Generation Diesel Engine Oils, Motorcycle Oils (4T)
and Passenger Car Motor Oils.
As part of brand
building, in addition to signage and wall painting programs and the Gulf Cup
covering the Dirt Track Championship for Motorbikes, which are held annually
across
The Division
continued its ground level initiatives in terms of retailer, mechanic loyalty
programs as well as consumer promotions in key product semi knocked-down units
(SKUs). The Division also increased sales and market share by breaking into new
fl eet operators and construction customers, medium sized industries and OEMs.
New products and promotions aimed at the 3-wheeler commercial segments,
tractors and other commercial vehicles recorded increased sales volumes. The
Division’s market share in the PCMO segment grew by 1 % with the launch of Gulf
Max range of engine oils in the second half of the year.
The Division
increased market share also in the bazaar market by aggressively growing
volumes in North and West regions. Overall the growth in this important segment
as per AC Nielsen Retail Audit Report has been one of the highest in the
industry. The focus on secondary and tertiary sales with below-the-line
initiatives in key geographies helped to achieve faster growth for the Gulf
brand in
Other Business
Groups
The 4 Wind Mills (1
MW) located at Ramagiri in Andhra Pradesh generated 4,00,900 units (2,54,414
units). The
SUBSIDIARIES
Gulf Oil
Bangladesh Limited reported a profit of Rs. 9.751 millions (Rs.15.584
millions).
Gulf Oil (Yantai)
Co. Limited reported a profit of Rs. 8.458 millions (Rs.15.196 millions).
Hinduja
Infrastructure Limited reported a profit of Rs. 0.007 millions (loss of
Rs.0.054 millions).
IDL Buildware
Limited incurred a loss of Rs. 18.074 millions (loss of Rs.13.610 millions) on
closure of the factory at
Vizag.
Gulf Carosserie
India Limited reported a loss of Rs. 0.024 millions ( profit of Rs.0.061
millions ).
During the year,
the Company has fully disinvested the shareholding in IDL Speciality Chemicals
Limited which was a 100% subsidiary of the Company, after transfer of the API
and formulations businesses to two pharma companies.
OUTLOOK FOR THE
CURRENT YEAR, OPPORTUNITIES AND THREATS
The global economy
which witnessed very high degree of uncertainty and volatility during 2008-09
recovered to a great extent in 2009-10. However, vestiges of some of the issues
which led to the fiscal meltdown is still seen in many parts of
Overall the
economy is expected to grow at 8 – 8.5% over the current year (2010 – 11).
In the automotive
sector, the growth was 26.4% in sales riding on the Government’s stimulus
packages. Sales in the domestic market were driven mainly by the car and
2-wheeler segment that posted 25.1% and 26% increases
respectively.
Ernst and Young forecast for the passenger car market in
The overall trend
of mineral production indicates a growth of 7.9% for the year. The value of
mineral production (excluding atomic minerals) during 2009-10 is estimated at
Rs.1.28 lakh crores, an increase of 4.6% over the previous year. The total
production comprised of fuel minerals 02.2%. Metallic minerals 21.6% and other
minerals 16.2%.
Minerals play a
very important role in the growth of Indian economy.
include fuels,
metallic ores, non-metallic minerals, atomic minerals and other minor minerals.
Mining and Quarry industry has a share of 1.9% of GDP and contributed
significantly in driving the economic and social growth in
In this
background, the outlook of the activities of there Divisions is expected to be
as follows:
Explosives
The Division has
envisaged a good growth in the coming year based on the ambitious targets set
by Planning Commission. The huge requirement of coal, iron ore, limestone ( for
cement and steel sectors ) and other strategic minerals, coupled with increased
thrust in infrastructure sector will result in increased demand for explosives
and blasting accessories as blasting with explosives continues to be the most
economic method for excavating coal, minerals and overburden rock encountered
in mining industry.
A Strategic review
of the Explosives business with inputs from an external consultant was carried
out. This study covered the size and composition of the market and identified
the high growth and high value areas of focus for growth of the business.
During the year
2010-11, the Explosives Division will focus on the fast growing Bulk
explosives, specialized packaged explosives for niche segments, technologically
advanced accessories to provide high value to there customers. The new products
developed during 2009-10 will address the needs of increased productivity and
safety besides customised blasting solutions to significantly reduce ground
vibrations in the tunneling segment for hydro electric projects and underground
coal mines. These have already enhanced there technological leadership and they
have started to commercialize these products.
The Special
Products Group of Explosives Division designs and manufactures initiators and
pyrotechnic devices for specialized applications in Defense, Space and other
industries. A number of new niche products which have been recently developed
are expected to be commercially manufactured after appropriate approvals and
qualifications.
Mining and
Infrastructure (IDLconsult)
The Mining and Infrastructure
Division (IDL Consult) engaged in contract mining and mining related
infrastructure projects has segmented the market space and identified several
strategic initiatives.
A number of large
mining opportunities are expected in the coal sector, with the private sector
opening up the captive coal blocks as well as new PSU owned coal blocks coming
for exploitation. The Division’s experience in handling large mines and the
related qualifications positions it favourably for undertaking these projects.
The current stress
levels in the Iron ore mining segment is expected to ease in the fi rst half of
the year leading to opening up of new mines which have been long delayed. The
Division’s offer of cost effective end to end mining solution covering mining
and mineral processing is expected to get new customers from new mines in the
metal segment.
The new mines
which will open in the near future will require infrastructure such as roads,
bridges, rail lines, buildings etc. The Division’s position as a One Stop
Solution provider will give it a unique position in providing mining related
infrastructure.
The Division has
Rs. 3220.000 millions of orders booked as at the end of F 10 to be executed in
the next two to four years period comprising of coal mining, iron, manganese
and uranium ore mining and mine related construction business.
With rising demand
for coal, especially for thermal power generation, the Division foresees good
opportunities in the coal sector for mining contracts with the coal majors like
Singareni Collieries and Coal
Allocation of a
large outlay for infrastructure development by the Government of India has
directed the Division's attention to the opportunity in projects relating to
the Road sector and other infrastructure Projects. The Division's expertise
gained over the last eight years would be a major strength in increasing the
business in these areas. The Division has already started a mining related
infrastructure contract with the Aditya Birla Group for their new Alumina
Project in Orissa.
Lubricants
With the growth
trends in the automobile sector and steady demand for lubricants in the
domestic market, the Division is looking at achieving double digit growth in
volumes and consequent increase in market shares in the core segments. With
increasing use of long drain lubricants, major volume growth prospects in the
Lubes industry is likely to be limited. It is estimated that the overall volume
growth for lubricants will be 2-3% in 2010-11. The Division's strategy is aimed
at growing faster than industry and competition, to gain market share.
As mentioned
above, the growth in longer drain interval products is expected to be higher
and in line with the growing preference for products with superior benefits,
the Division is planning to launch a number of products that deliver ‘longer
life’ to strengthen its position in this area.
These
introductions will be backed by increased investments in the brand and further
upgrading of its bottom line. It is expected that competition levels will
increase but opportunities to take market share will also be available. The
Division plans to leverage its strengths and build on the recent successes in
the core segments to increase market share with continuation of segment wise
approach. .
The Division will
also focus on prospecting more Automobile OEMs (Original Equipment
Manufacturers) for factory and service-fill related opportunities.
As the industrial
and infrastructure sectors are expected to witness growth, opportunities in the
B2B segment with industries, fleet/construction companies and marine will also
be a focus area for the Division in 2010-11. The industrial segment is expected
to grow well. The Division is planning to increase it’s presence with
additional manpower and products to cater to this demand. The Lubricants
Division will continue to strengthen its position with Ashok Leyland network
and customers, with innovative programs and differentiated product offerings,
which add value to the customers.
Base oil and
additive prices and other costs are expected to increase given the current
trend in base commodity prices, which may necessitate price increases during
the year.
Fixed assets:
- Land-Freehold
- Land-Leasehold
- Buildings
- Leasehold Improvements
- Plant and Machinery Equipments etc.
- Furniture, Fixtures and Office
appliances
- Vehicles
- Technical Knowhow
AS PER WEBSITE DETAILS
PROFILE:
The Chemical Hub of Hinduja Group was created with Gulf Oil India Limited merging with IDL Industries Limited from 1st January 2002. The merger has enabled the Company to leverage the large marketing networks of lubricants and industrial explosives businesses and achieve a turnover for the financial year 2008-09 of Rs.10000.000 million (US$200 million). Exports accounted for 5% of the turnover.
IDL Industries Limited was renamed as Subject with the merger of Gulf Oil
The activities of the current 4 operating Divisions are:
Lubricants
Division
Manufacture, marketing and technical services in lubricants,
greases, auto accessories and car care products. Major exporter of lubricants
from
Industrial
Explosives Division
Manufacture, marketing and technical services in industrial
explosives , detonators, explosive bonded metal clads and special devices for
Defence and Space applications. The largest exporter of explosives products
from
Mining and Infrastructure Contracts Division
Undertakes large scale mining services in coal, iron ore,
limestone and bauxite mines. Contracts in the infrastructure sector such as
underground metro railways, elevated highways, industrial structures /
buildings.
Property
Development
Development of large properties at
PRESS RELEASE:
Mumbai,
25.05.2011: Gulf Oil
Corporation Limited, a Hinduja Group Company, has reported an income of Rs.
2510.000 millions in Q4. For the year ended on 31.03.2011, the turnover was Rs.
10010.000 millions and Profit after Tax increased by 20% to Rs. 540.000
millions. The Board has recommended an increased Dividend of Rs. 2 ( 100% ) per
share.
Pursuant to the Scheme of Arrangement, the Explosives Business of the Company
excluding detonators and explosive accessories in
Division wise performance and highlights are as under:
LUBRICANTS DIVISION:
During the Q4 of
the financial year 2010-11, the Lubricants SBU achieved a gross turnover of Rs.
2070.000 Millions as compared to Rs. 1710.000 Millions in the corresponding
quarter of the previous year i.e. a growth of 21% on QoQ basis. For the year ended
31.03.11, Lubricants Division achieved gross turnover of Rs. 6810.000 millions
compared to Rs. 5640.000 Millions in the previous year 2010-11 and PBIT for the
year increased by 90%.
Automobile Industry witnessed positive growth throughout the year with over 25%
growth. Accordingly, demand conditions in the lube industry also remained
buoyant for Automotive Lubricants. With industrial growth also positive all
through the year, the division has grown in volumes well ahead of the industry
and achieved faster growth and increased market share.
The key strategies, with a focus on a segment wise approach backed by channel
expansion, promotions for trade, influencers and end-users and brand building
initiatives, were successfully executed across core segments of New Generation
Diesel Engine Oils, Motorcycle Oils (4T) and Passenger Car Motor Oils. A major
highlight for the Lubricants division’s has been substantial growth in the
highly competitive 4T segment and this has strengthened the position of the Division’s
brands in this fast growing segment.
In the motorcycle segment, the Division launched the Gulf Bikestops – a branded
workshop concept and covered more than 125 locations across
The Division continued its technological up-gradation of Product portfolio in
commercial vehicles and launched an Advanced Engine Oil Gulf Super Fleet Dura
Max with an oil service period of 80,000 Kms for the Next generation “U” trucks
launched by Ashok Leyland. The Division has also forged tie-ups with leading
OEM’s like Mahindra (Automotive Division) by launching a co-branded range of
lubricants with them in Quarter 3 of 2010-11, which has also contributed to the
overall growth.
As part of increasing brand visibility and brand building, the division invested
in launching mass media campaigns on television and outdoor. The key initiative
was the Sponsorship of IPL-III winners Chennai Super Kings team for IPL –IV
lead by the Indian Captain - M S Dhoni in addition to continuation of
sponsorship relations with the Kings XI Punjab Cricket franchise for the Indian
Premier League ( IPL – IV ). These associations helped to build brand
awareness/recall amongst the cricket loving as well as to target youth
audiences across
EXPLOSIVES DIVISION
The Explosives Division of the Company (without explosives business which is
being demerged w.e.f. 01.10.2010 ), during the Q4 earned a revenue of Rs.
260.000 millions. It has to be noted that the business of the explosives
undertaking excluding the
While, the IIP
mining index grew 7.4% during the year, the growth was muted by the delays in
starting up of various mines due to environmental concerns. The demand for
thermal coal picked up but due to restricted domestic supply, it is estimated
that 80-100 million tonnes of coal has been imported affecting supply of
explosives and accessories..
A new range of field programmable electronic detonators have been developed and
are at various stages of the product introduction process. Use of this product
ensures that vibrations are reduced significantly, contributing to the mine
safety in addition to improvement in blast efficiency.
Various projects on quality improvement and cost reduction have yielded good
results. Investment in an advanced version of Raytube is complete and the
products are soon to be made available to customers. MINING AND
INFRASTRUCTURE DIVISION (IDLconsult
DIVISION)
The Mining and
Infrastructure Division during Q4, earned a revenue of Rs. 180.000 millions (
Rs. 430.000 millions in the same quarter last year ). On a full year basis, the
revenue was at Rs. 1290.000 millions ( Rs. 1960.000 millions last year ). Key
contributors to the reduction in the volume of business during the year was the
completion of a large Coal mining project at Nighai in F11 and restricted
working at some of our customer’s mines in the Orissa region, due to various
regulatory.
Uranium ore mining project for Uranium Corporation of
PROPERTY DEVELOPMENT
The layout design
of the IT /
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.44.90 |
|
|
1 |
Rs.72.54 |
|
Euro |
1 |
Rs.63.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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.