1. Summary Information
|
|
|
Country |
|
|
Company Name |
BHARAT PETROLEUM
CORPORATION LIMITED |
Principal Name 1 |
Mr. R. K. Singh |
|
Status |
Excellent |
Principal Name 2 |
Mr. Ashok Sinha |
|
|
|
Registration # |
11-008931 |
|
Street Address |
Bharat Bhawan, 4 and 6, |
||
|
Established Date |
03.11.1952 |
SIC Code |
-- |
|
Telephone# |
91-22-22642112/ 22713000/
004/ 22714000 |
Business Style 1 |
Manufacturing |
|
Fax # |
91-22-22642112/
22616793/ 22713874 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Petroleum Products |
|
|
# of employees |
13915 (Approximately) |
Product Name 2 |
Benzene |
|
Paid up capital |
Rs. 3,615,400,000/- |
Product Name 3 |
Lubricants |
|
Shareholders |
Promoter and
Promoter Group - 54.93% Public
shareholding - 45.07% |
Banking |
State Bank of |
|
Public Limited Corp. |
Yes |
Business Period |
59 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
Aa (75) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries |
-- |
Bharat PetroResources Limited (BPRL) |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
122,307,500,000 |
Current Liabilities |
187,882,900,000 |
|
Inventories |
153,750,800,000 |
Long-term Liabilities |
189,718,700,000 |
|
Fixed Assets |
159,993,300,000 |
Other Liabilities |
41,775,700,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
419377300000 |
|
Invest& other Assets |
123,901,900,000 |
Retained Earnings |
136960800000 |
|
|
|
Net Worth |
140576200000 |
|
Total Assets |
559,953,500,000 |
Total Liab. & Equity |
559,953,500,000 |
|
Total Assets (Previous Year) |
532,723,600,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
1,515,450,600,000 |
Net Profit |
15,466,800,000 |
|
Sales(Previous yr) |
1,222,759,500,000 |
Net Profit(Prev.yr) |
15,376,200,000 |
MIRA
INFORM REPORT
|
Report Date : |
11.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
BHARAT PETROLEUM CORPORATION LIMITED |
|
|
|
|
Registered
Office : |
Bharat Bhawan, 4
and 6, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
03.11.1952 |
|
|
|
|
Com. Reg. No.: |
11-008931 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.3615.400 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L23220MH1952GOI008931 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMB00573G MUMB12464E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB2902M |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The Company’s shares are Listed on
The Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing of Petroleum Products, Benzene and Lubricants. |
|
|
|
|
No. of Employees
: |
13915 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
Maximum Credit Limit : |
USD 562300000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Bharat Bhawan, 4
and 6, |
|
Tel. No.: |
91-22-22642112/ 22713000/ 004/ 22714000 |
|
Fax No.: |
91-22-22642112/ 22616793/ 22713874 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Lubricant Plant Wadilube Installation, 24, Parganas, Budge-Budge 743 319 |
|
|
|
|
Refinery : |
Bharat Petroleum Refinery, Mahul, Chembur, Mumbai - 400074, Maharashtra,
India |
|
Tel. No.: |
91-22-25543151 |
|
Fax No.: |
91-22-25542970 |
|
|
|
|
|
ECE House, Post Box No.7, Connaught Circus, |
|
Tel. No.: |
91-11-23316891 |
|
Fax No.: |
91-11-23316894 |
|
|
|
|
Retail Business Head Quarters : |
|
|
Tel. No.: |
91-22-22189172 |
|
Fax No.: |
91-22-22182304 |
|
|
|
|
Lubricants Business Head Quarters : |
Bharat Bhavan-II, Ballard Estate, Mumbai – 400001, |
|
Tel. No.: |
91-22-22713000/ 22714000 |
|
Fax No.: |
91-22-22713801/ 25542970 |
|
|
|
|
Aviation Business Head Quarters : |
Plot Nos. A 5 and 6, Sector 1, Noida 201301, District Gautam Budh
Nagar, |
|
Tel. No.: |
91-120-24539155/ 24744820 |
|
|
|
|
LPG Business Head Quarters: |
Bharat Bhavan, 4 and |
|
Tel. No.: |
91-22-22713000 |
|
Fax No.: |
91-22-22832646 |
|
|
|
|
Industrial and Commercial Business Head Quarters : |
Bharat Bhavan, 4 and 6 Currimbhoy Road, Ballard Estate, Mumbai
400001,Maharashtra, India |
|
Tel. No.: |
91-22-22713000 |
|
Fax No.: |
91-22-22713671 |
|
|
|
|
Chief Vigilance Officer: |
Bharat Bhavan-1, 4 and 6, |
|
Tel. No.: |
91-22-22713610 |
|
Fax No.: |
91-22-22713611 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. R. K. Singh |
|
Designation : |
Chairman and Managing Director (w.e.f 09.12.2010) |
|
|
|
|
Name : |
Mr. Ashok Sinha |
|
Designation : |
Chairman and Managing Director (up to 18.08.2010) |
|
Qualification : |
B. Tech (Elect.) MBA |
|
|
|
|
Name : |
Mr. S. Radhakrishnan |
|
Designation : |
Director (Marketing) (up to 28.02.2011) |
|
Qualification : |
B. Tech., (Mech.) MBA |
|
|
|
|
Name : |
Mr. K. K. Gupta |
|
Designation : |
Director (Marketing) (w.e.f. 31.03.2011) |
|
|
|
|
Name: |
Mr. S.K. Joshi |
|
Designation: |
Director (Finance) |
|
Qualification : |
ACA, MBA |
|
|
|
|
Name : |
Mr. B. K. Datta |
|
Designation : |
Director (Refineries) (w.e.f. 01.08.2011) |
|
|
|
|
Name: |
Mr. S.K. Barua |
|
Designation: |
Director |
|
|
|
|
Name : |
Mr. Rama Bijapurkar |
|
Designation : |
Director (up to 30.6.2010) |
|
|
|
|
Name : |
I.P.S. Anand |
|
Designation : |
Director |
|
|
|
|
Name: |
Mr. S. Mohan |
|
Designation: |
Director (Human Resources) |
|
|
|
|
Name: |
Mr. Haresh M. Jagtiani |
|
Designation: |
Director |
|
|
|
|
Name: |
Mr. N. Venkiteswaran |
|
Designation: |
Director |
KEY EXECUTIVES
|
Name : |
Mr. S. V. Kulkarni |
|
Designation : |
Company |
|
|
|
|
Name : |
Ms. I. Sasikala |
|
Designation : |
Chied Vigilance
Officer |
|
|
|
|
Name : |
Mr. A. K. Bansal |
|
Designation : |
Executive Director (Gas) |
|
|
|
|
Name : |
Mr. Anurag Deepak |
|
Designation : |
Executive Director (Pipelines) |
|
|
|
|
Name: |
Mr. D.M. Reddy |
|
Designation: |
Executive
Director (Industrial and Commercial) |
|
|
|
|
Name: |
Ms. Dipti Sanzgiri |
|
Designation: |
Executive
Director (Human Resources Development) |
|
|
|
|
Name : |
Mr. E. Nandakumar |
|
Designation : |
Executive Director,
|
|
|
|
|
Name : |
Mr. John Minu
Mathew |
|
Designation : |
Executive Director (Technical), Kochi Refinery |
|
|
|
|
Name : |
Mr. J. Ravichandran |
|
Designation : |
Executive
Director (Refineries Finance) |
|
|
|
|
Name : |
Mr. K.V. Seshadri |
|
Designation : |
Executive
Director, Mumbai Refinery |
|
|
|
|
Name : |
Mr. P.S. Bhargava |
|
Designation : |
Executive
Director (Planning) |
|
|
|
|
Name : |
Mr. Pallav Ghosh |
|
Designation : |
General Manager
(Retail), East |
|
|
|
|
Name : |
Mr. R.K. Mehra |
|
Designation : |
Executive
Director (International Trade) |
|
|
|
|
Name : |
Mr. R.M. Gupta |
|
Designation : |
Executive
Director (LPG) |
|
|
|
|
Name : |
Mr. S. Krishnamurti |
|
Designation : |
Executive Director
(Corporate Affairs) |
|
|
|
|
Name : |
Mr. S.P. Gathoo |
|
Designation : |
Executive
Director (Human Resources Services) |
|
|
|
|
Name : |
Mr. S. P. Mathur |
|
Designation : |
Executive
Director (Engineering and Projects) |
|
|
|
|
Name : |
Mr. S. Ramesh |
|
Designation : |
Executive
Director (Lubes) |
|
|
|
|
Name : |
Ms. Sumita Bose Roy |
|
Designation : |
Executive
Director (Audit) |
|
|
|
|
Name : |
Mr. S. Varadarajan |
|
Designation : |
Executive
Director (Corporate Finance) |
|
|
|
|
Name : |
Mr. Arjun Hira |
|
Designation : |
General Manager
(Brand and ARB) RHQ |
|
|
|
|
Name : |
Mr. A.K. Kaushik |
|
Designation : |
General Manager
(IS - Infrastructure and Services) |
|
|
|
|
Name : |
Mr. Basudev Rana |
|
Designation : |
General Manager
(Quality Control Cell) |
|
|
|
|
Name : |
Mr. Brij Pal Singh |
|
Designation : |
General Manager
(Marketing Corporate) |
|
|
|
|
Name : |
Mr. D. K. Mane |
|
Designation : |
Head (Health,
Safety, Security and Environment) Entity |
|
|
|
|
Name : |
Mr. Gautam
Mukerji |
|
Designation : |
General Manager (Coordination) |
|
|
|
|
Name : |
Mr. George Paul |
|
Designation : |
General Manager
(Lubes) |
|
|
|
|
Name : |
Mr. G.S. Wankhede |
|
Designation : |
General Manager
(Logistics) |
|
|
|
|
Name : |
Mr. I. Srinivas Rao |
|
Designation : |
General Manager
(Marketing) Gas |
|
|
|
|
Name : |
Mr. J. Dinaker |
|
Designation : |
(Corporate
Treasury) |
|
|
|
|
Name : |
Mr. John Minu Mathew |
|
Designation : |
General Manager
(Technical), |
|
|
|
|
Name : |
Mr. J.R. Akut |
|
Designation : |
General Manager
(IIS Technology) |
|
|
|
|
Name : |
Mr. K. H. Subramanian |
|
Designation : |
General Manager
(Retail) West |
|
|
|
|
Name : |
Mr. K.B. Narayanan |
|
Designation : |
General Manager
(ERP - CC) |
|
|
|
|
Name : |
Mr. K. N. Ravindran |
|
Designation : |
General Manager
(Projects), |
|
|
|
|
Name : |
Mr. K.P. Chandy |
|
Designation : |
General Manager
(Sales) LPG HQ |
|
|
|
|
Name : |
Mr. K.V. Shenoy |
|
Designation : |
General Manager
(Retail) In-charge, South |
|
|
|
|
Name : |
Mr. M.M. Chawla |
|
Designation : |
General Manager
(Pipeline Projects), E and P |
|
|
|
|
Name : |
Mr. M.M. Somaya |
|
Designation : |
General Manager
(Brand and Public Relations) |
|
|
|
|
Name : |
Mr. M.P. Govindarajan |
|
Designation : |
General Manager
(Human Resources), |
|
|
|
|
Name : |
Ms. Monica Widhani |
|
Designation : |
General Manager
(Urban Retailing) |
|
|
|
|
Name : |
Mr. P. Anandasundaresan |
|
Designation : |
General Manager
(Sales) I and C, Mumbai |
|
|
|
|
Name : |
Mr. P. Balasubramanian |
|
Designation : |
General Manager
(Corporate Finance) |
|
|
|
|
Name : |
Mr. P. C. Srivastava |
|
Designation : |
General Manager
(Highway Retailing) RHQ |
|
|
|
|
Name : |
Mr. P. Kumaraswamy |
|
Designation : |
General Manager
(Projects) |
|
|
|
|
Name : |
Mr. P. Padmanabhan |
|
Designation : |
General Manager
(Refinery Coordination) |
|
|
|
|
Name : |
Mr. Pramod Sharma |
|
Designation : |
General Manager
(Retail) North |
|
|
|
|
Name : |
Mr. Prasad K. Panicker |
|
Designation : |
General Manager
(Operations), Mumbai Refinery |
|
|
|
|
Name : |
Mr. P.V. Kumar |
|
Designation : |
General Manager
(International Trade) |
|
|
|
|
Name : |
Mr. R.P. Natekar |
|
Designation : |
General Manager
(Finance) Retail HQ |
|
|
|
|
Name : |
Mr. S. B. Bhattacharya |
|
Designation : |
General Manager
(Aviation) |
|
|
|
|
Name : |
Mr. S.K. Agrawal |
|
Designation : |
General Manager
(Legal) |
|
|
|
|
Name : |
Mr. S.K. Mathur |
|
Designation : |
General Manager
(Riral Retailing/ Retail Estate) |
|
|
|
|
Name : |
Mr. Sharad K. Sharma |
|
Designation : |
General Manager
Sales (Retail) HQ |
|
|
|
|
Name : |
Mr. S. Vijayakumar |
|
Designation : |
General Manager (Human
Resources), Mumbai Refinery |
|
|
|
|
Name : |
Mr. Tapan Datta |
|
Designation : |
General Manager
(Vigilance), CO |
|
|
|
|
Name : |
Mr. Thomas Chacko |
|
Designation : |
General Manger (Engineering and Advisor Services) Kochi Refinery |
|
|
|
|
Name : |
Mr. Thomas Zachariah |
|
Designation : |
General Manger (Engineering and Advisor Services) Kochi Refinery |
|
|
|
|
Name : |
Mr. Tomy Mathews |
|
Designation : |
General Manager
(Operations), |
|
|
|
|
Name : |
Mr. T. Somanath |
|
Designation : |
General Manager
– Talent Management |
|
|
|
|
Name : |
Dr. U.V. Girish Kumar |
|
Designation : |
General Manager
(IT and BI), Retail HQ |
|
|
|
|
Name : |
Mr. V. Anand |
|
Designation : |
General Manager
(Sales Strategy), Retail HQ |
|
|
|
|
Name : |
Mr. Arun Kumar Singh |
|
Designation : |
Chief
Procurement Officer |
|
|
|
|
Name : |
Ms. Madhu Sagar |
|
Designation : |
Deputy General
Manager (Employee Satisfaction Enhancement), CO |
|
|
|
|
Name : |
Mr. P. K. Sinha |
|
Designation : |
Special Secretary and Financial Advisor, Ministry of Petroleum and
Natural Gas |
|
|
|
|
Name : |
Mr. T. Balakrishnan |
|
Designation : |
Additional Chief Secretary, (I and C) Government of Kerala (up to
29.06.2010) |
|
|
|
|
Name : |
Mr. Alkesh Kumar Sharma |
|
Designation : |
Secretary (IP), Government of Kerala (w.e.f. 30.06.2010) |
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 |
|
|
|
|
|
|
|
|
198600060 |
54.93 |
|
|
198600060 |
54.93 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
198600060 |
54.93 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
34619287 |
9.58 |
|
|
695641 |
0.19 |
|
|
3111111 |
0.86 |
|
|
35003489 |
9.68 |
|
|
26855197 |
7.43 |
|
|
100284725 |
27.74 |
|
|
|
|
|
|
17353154 |
4.80 |
|
|
|
|
|
|
8482725 |
2.35 |
|
|
828559 |
0.23 |
|
|
35992901 |
9.96 |
|
|
247408 |
0.08 |
|
|
2016756 |
0.49 |
|
|
33728737 |
9.33 |
|
|
62657339 |
17.33 |
|
Total Public
shareholding (B) |
162942064 |
45.07 |
|
Total (A)+(B) |
361542124 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
Total
(A)+(B)+(C) |
361542124 |
- |
(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. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
(a)
Fuel refinery |
|
|
|
|
(i)
In million metric tonnes p.a. |
NA |
21.50 |
21.78 |
|
(ii)
Production in kilolitres (KL) |
-- |
-- |
8668482 |
|
Light
distillates |
-- |
-- |
13781044 |
|
Middle
distillates |
-- |
-- |
3046601 |
|
Others
|
|
|
|
|
(b)
Aromatics (in MT) |
|
|
|
|
(i)
Benzene * |
185500 |
192900 |
75156 |
|
(ii)
Toluene * |
67600 |
73100 |
20282 |
|
(iii)
Mixed Aromatic Solvent |
15000 |
15000 |
-- |
|
(c)
MTBE in M.T. # |
NA |
30000 |
27584 |
|
(d)
New Solvent Unit |
|
|
|
|
(i)
Solvent (SBP 55-115) in M.T. |
NA |
40000 |
9992 |
|
(ii)
Solvent (Food Grade Hexane) in M.T. |
NA |
25000 |
29257 |
|
(e)
Poly Proplyene Feedstock in M.T. |
NA |
60000 |
58127 |
|
(f)
Lubricants in M.T. |
NA |
153400 |
220387 |
|
(g)
Lube Oil Base Stock (LOBS) in M.T. |
NA |
180000 |
205373 |
|
(h)
|
NA |
117667 |
70228 |
|
(i)
Natural Rubber Modified Bitumen in M.T. |
NA |
65000 |
7598 |
|
(j)
Bitumen Emulsion (Single Shift) in M.T. |
50000 |
27600 |
5310 |
|
(k)
Diesel Additive (Single Shift) in M.T. |
5000 |
1500 |
-- |
|
(l)
Propylene in M.T. |
65000 |
50000 |
16067 |
|
(m)
Petroleum Hydrocarbon Solvent in M.T. |
10000 |
8820 |
7261 |
|
(n)
Poly Iso Butene in M.T. |
5000 |
5000 |
1074 |
|
(o)
Cable Jelly (Poly Isobutene Unit) in M.T. |
6500 |
2500 |
-- |
|
(p)
Others (Poly Isobutene Unit) in M.T. |
14000 |
1000 |
-- |
Note :
* 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
@ The blending capacities have been reviewed
during the year and have been reworked in line with current usage pattern which
is depending on the market requirement.
# MTBE is used for own manufacture of Motor
Spirit
GENERAL INFORMATION
|
No. of Employees : |
13915 (Approximately) |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
State Bank of India ·
Union Bank of India ·
Corporation Bank ·
Bank of India ·
State Bank of Patiala ·
Central Bank of India ·
Deutsche Bank ·
Standard Chartered Bank ·
Royal Bank of Scotland ·
ICICI Bank ·
HDFC Bank Limited ·
State Bank of Travancore ·
Indian Bank ·
Industrial Development Bank of India Limited ·
BNP Paribas ·
Calyon Bank |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditor 1 : |
|
|
Name : |
B. K. Khare and Company Chartered Accountants |
|
|
|
|
Auditor 2 : |
|
|
Name : |
K. Varghese and Company Chartered Accountants |
|
|
|
|
Names of the Related parties : |
·
Indraprastha Gas Limited ·
Petronet India Limited ·
Petronet CC Limited ·
Petronet CI Limited ·
Petronet LNG Limited ·
Bharat Oman Refineries Limited ·
Petroleum Infrastructure Limited ·
Petroleum India International ·
Maharashtra Natural Gas Limited ·
Central UP Gas Limited ·
Sabarmati Gas Limited ·
Bharat Stars Services Private Limited ·
Bharat Renewable Energy Limited ·
Matrix Bharat Marine Services Pte. Limited ·
Delhi Aviation Fuel Facility Private Limited ·
IBV Brasil Petroleo Ltda. |
|
|
|
|
Subsidiaries : |
v Numaligarh Refinery Limited (NRL) v Bharat PetroResources Limited (BPRL) |
|
|
|
|
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 31.03.2011
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 |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
3615.400 |
3615.400 |
3615.400 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
136960.800 |
127251.700 |
117665.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
140576.200 |
130867.100 |
121281.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
40331.00 |
104438.700 |
36616.000 |
|
|
2] Unsecured Loans |
149387.700 |
117513.300 |
175098.100 |
|
|
TOTAL BORROWING |
189718.700 |
221952.000 |
211714.100 |
|
|
DEFERRED TAX LIABILITIES |
10075.400 |
8593.000 |
12392.400 |
|
|
|
|
|
|
|
|
TOTAL |
340370.300 |
361412.100 |
345387.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
159993.300 |
136693.500 |
119657.900 |
|
|
Capital work-in-progress |
10122.300 |
25177.500 |
20374.800 |
|
|
|
|
|
|
|
|
INVESTMENT |
113779.600 |
122013.200 |
167151.900 |
|
|
ADVANCE FOR INVESTMENT |
0.000 |
13000.100 |
13631.900 |
|
|
DEFERREX TAX ASSETS |
0.00 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
153750.800
|
120288.600
|
68239.200
|
|
|
Sundry Debtors |
26644.200
|
26626.800
|
14256.700
|
|
|
Cash & Bank Balances |
3799.700
|
3423.600
|
4415.500
|
|
|
Other Current Assets |
55510.700
|
37856.900
|
30945.100
|
|
|
Loans & Advances |
36352.900
|
47643.400
|
35027.700
|
|
Total
Current Assets |
276058.300
|
235839.300
|
152884.200
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
109394.700
|
83599.700
|
62145.800
|
|
|
Other Current Liabilities |
78488.200
|
61905.900
|
49042.900
|
|
|
Provisions |
31700.300
|
25805.900
|
17124.400
|
|
Total
Current Liabilities |
219583.200
|
171311.500
|
128313.100
|
|
|
Net Current Assets |
56475.100
|
64527.800
|
24571.100
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
340370.300 |
361412.100 |
345387.600 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1515450.600 |
1222759.500 |
1352377.000 |
|
|
|
Other Income |
17549.700 |
22402.400 |
15087.400 |
|
|
|
TOTAL (A) |
1533000.300 |
1245161.900 |
1367464.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of products and crude oil for resale |
781051.000 |
630788.900 |
678678.100 |
|
|
|
Raw materials consumed |
627304.000 |
505924.500 |
539369.300 |
|
|
|
Packages consumed |
1392.800 |
1331.700 |
1075.100 |
|
|
|
Excise Duty on Inventory differential |
626.700 |
2174.000 |
(104.900) |
|
|
|
Taxes and Other Levis |
6442.100 |
18415.600 |
11747.600 |
|
|
|
Transportation |
28548.000 |
25854.700 |
24261.400 |
|
|
|
Consumption of stores, spares and materials |
532.500 |
795.200 |
790.400 |
|
|
|
Power & Fuel
Cost |
4758.900 |
2371.200 |
671.700 |
|
|
|
Employees' remuneration and other benefits |
28028.500 |
21411.200 |
18848.800 |
|
|
|
Other operating and administration expenses |
23087.100 |
29245.900 |
33773.400 |
|
|
|
Increase/(Decrease) in Inventory |
(20560.500) |
(39898.500) |
15758.800 |
|
|
|
Prior Period
Income/ (Expenses) net |
100.900 |
554.300 |
134.600 |
|
|
|
TOTAL (B) |
1481312.000 |
1198968.700 |
1325004.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
51688.300 |
46193.200 |
42460.100 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
11007.800 |
10109.500 |
21663.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
40680.500 |
36083.700 |
20796.400 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
16554.000 |
12423.200 |
10755.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
24126.500 |
23660.500 |
10041.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
8659.700 |
8284.300 |
2682.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
15466.800 |
15376.200 |
7359.000 |
|
|
|
|
|
|
|
|
|
|
Transfer from / (to) Debenture Redemption Reserve |
0.000 |
(7000.000) |
(3000.000) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1810.600 |
763.700 |
# |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend |
5061.600 |
5061.600 |
2530.800 |
|
|
|
Corporate Dividend Tax on proposed dividend |
710.800 |
727.700 |
314.500 |
|
|
|
Transfer to General Reserve |
6505.000 |
1540.000 |
750.000 |
|
|
BALANCE CARRIED
TO THE B/S |
5000.000 |
1810.600 |
763.700 |
|
|
|
# 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 |
0.000 |
103013.500 |
62136.400 |
|
|
|
Exports on CFR basis |
0.000 |
0.000 |
3537.800 |
|
|
TOTAL EARNINGS |
0.000 |
103013.500 |
65674.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials (including Crude Oil) |
443216.100 |
363977.900 |
378252.400 |
|
|
|
Capital goods |
1239.800 |
3221.500 |
1425.700 |
|
|
|
Components and spare
parts (including packages, chemicals and catalysts) |
441.800 |
1536.900 |
572.400 |
|
|
TOTAL IMPORTS |
444897.700 |
368736.300 |
380250.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
42.78 |
42.53 |
20.35 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
|
|
UnAudited |
UnAudited |
|
Net Sales |
|
461396.100 |
423018.600 |
|
Total Expenditure |
|
483038.300 |
449966.600 |
|
PBIDT (Excl OI) |
|
(21642.200) |
(26948.000) |
|
Other Income |
|
4273.200 |
3787.300 |
|
Operating Profit |
|
(17369.000) |
(23160.700) |
|
Interest |
|
3349.200 |
4531.600 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(20718.200) |
(27692.300) |
|
Depreciation |
|
4900.700 |
4600.400 |
|
Profit Before Tax |
|
(25618.900) |
(32292.700) |
|
Tax |
|
0.000 |
0.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(25618.900) |
(32292.700) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(25618.900) |
(32292.700) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.01
|
1.23
|
0.54 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.59
|
1.94
|
0.74 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.53
|
6.35
|
3.68 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.18
|
0.08 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.91
|
3.01
|
2.80 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.26
|
1.38
|
1.19 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE
OVERVIEW
Group
Performance
The aggregate
Refinery throughput at BPCL’s Refineries at Mumbai and Kochi and that of its subsidiary
company, Numaligarh Refinery Limited (NRL) in 2010-11 was 24.03 Million Metric
Tonnes (MMT) as compared to 23.03 MMT in 2009-10. The market sales volume of
the BPCL Group for 2010-11 stood at 29.58 MMT, as compared to 28.25 MMT in the
previous year. The group also exported 2.61 MMT of petroleum products during
the year as against 2.51 MMT in 2009-10.
During the year
2010-11, the BPCL group achieved a sales turnover of `166,038.80 crores as
compared to Rs.1337491.000 Millions recorded in 2009-10. The Profit after Tax
for the year stood at Rs.17420.600 Millions as against Rs.17199.800 Millions in
2009-10. After setting off the minority interest, the Group earnings per share
for the year stood at Rs.45.22 as compared to Rs.45.15 in 2009-10.
Company Performance
BPCL recorded a
sales turnover of Rs.1632182.100 Millions in the year 2010-11. This represents
an increase of 24.12 % over the previous year’s turnover of Rs.1314997.200
Millions. In terms of volume, sales increased from 27.89 MMT in 2009-10 to
29.27 MMT in 2010-11, showing an increase of 4.95%. The profit before tax for
the year went up by 1.97% over the preceding year to reach a level of
Rs.24126.500 Millions, as against Rs.23660.500 Millions in 2009-10. After
providing for tax, (including deferred tax) of Rs.8659.700 Millions in 2010-11,
as against RS.8284.300 Millions in 2009-10, the profit after tax for the year
stood at Rs.15466.800 Millions, as compared to Rs.15376.200 Millions in the
financial year ended 31st March, 2010.
The Board of Directors
has recommended a dividend of 140% (`14 per share) for the year on the paid-up
share capital of Rs.3615.400 Millions, which will absorb a sum of Rs.5772.400
Millions out of the profit after tax inclusive of Rs.710.800 Millions for
Corporate Dividend Tax on distributed profits. BPCL’s net worth as on 31st
March, 2011 stands at Rs.140576.200 Millions, as compared to Rs.130867.100
Millions as at the end of the previous year.
The earnings per
share for the year stood at Rs.42.78 in 2010-11 as compared to Rs.42.53 in
2009-10. Internal cash generation during the year increased from Rs.18981.000
Millions in 2009-10 to Rs.27593.100 Millions. During the year, BPCL’s
contribution to the exchequer by way of taxes and duties amounted to
Rs.360100.800 Millions as against Rs.266857.500 Millions in the previous
financial year.
Borrowings from
banks decreased from Rs.187438.700 Millions as at 31st March, 2010 to
Rs.160885.700 Millions at the close of the financial year 2010-11. There was no
outstanding balance under the Collateralized Borrowing and Lending Obligation
(CBLO) through Clearing Corporation of India Limited as at the end of the year
as compared to Rs.5000.000 Millions at the end of the previous year. The
outstanding amount of loans from Oil Industry Development Board decreased to
Rs.8717.500 Millions as at 31st March, 2011 from Rs.9213.700 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 2011 in addition to
the debentures of Rs.10000.000 Millions issued in 2009-10.
There was no
balance on account of Public deposits as at 31st March 2011 as compared to
Rs.2.400 Millions at the end of the previous year. The amount of deposits,
matured but unclaimed, at the end of the year was Rs.0.900 Millions, which
pertains to 24 depositors. The total Capital Expenditure during the year
2010-11 amounted to Rs.25322.000 Millions which is lower than the expenditure
in 2009-10 when it stood at Rs.34467.700 Millions during the previous year. The
Comments of the Comptroller and Auditor General of India (CandAG) on the
Accounts for the year ended 31st March, 2011 along with the explanation of the
Board of Directors.
REFINERIES
MUMBAI REFINERY
During the year 2010-11,
Mumbai Refinery processed 13.02 MMT of crude oil as against 12.52 MMT processed
in 2009-10. This was the highest level of crude oil processing achieved in a
single year by the refinery. This represents a capacity utilization of 108% as
compared to 104% in the previous year. During the year, the refinery achieved
its highest ever production of Liquefied Petroleum Gas (LPG), Aviation Turbine
Fuel (ATF), High Speed Diesel (HSD) and Lube Base Oils. The refinery also met
the demand for Motor Spirit (MS) and HSD complying with Euro IV quality norms.
The year also saw the refinery process 3 new crude oils viz. Malaysia crude oil
– Kikeh and Libyan crude oils - El Sharara and Mellitah for the first time,
thus bringing the total number of crude oils processed by Mumbai Refinery so
far to 75. The gross refining margin (GRM) for the year stood at USD 4.23 per
barrel as compared to USD 1.78 per barrel realized in 2009-10. The overall
gross margin for the refinery in 2010 11 amounted to Rs.18848.800 Millions as compared
to Rs.7926.300 Millions in 2009-10. The increase in GRM was mainly due to
favorable crude product spreads in the current year, as reflected in the
increase in the Singapore Dubai cracking margin from USD 3.5 per barrel in
2009-10 to USD 5.2 per barrel in 2010-11.
KOCHI REFINERY
Kochi Refinery
achieved a crude throughput of 8.76 MMT in 2010-11 as compared to 7.89 MMT in
2009-10. This was the highest throughput achieved by the refinery in any year,
surpassing the level of 8.17 MMT achieved in 2007-08. During the year, the
refinery processed 2 new crude oils - El Sharara and Mellitah from Libya for
the first time. The refinery earned a GRM of USD 4.83 per barrel in 2010-11 as
against USD 4.87 per barrel in 2009-10. This translates into a total GRM of Rs.14457.600
Millions for the year as against Rs.13666.300 Millions earned in 2009-10. KRL’s
capacity utilization for the year 2010-11 was 103.1% as compared to 105.2%
achieved in the previous year. The details of the performance of the
Refineries, their activities and future plans are discussed in the Management
Discussion and Analysis Report (MDandA).
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, New Delhi. One of the Shareholders of the
erstwhile KRL had filed a Writ Petition in the Delhi High Court challenging the
merger, and the same is pending as on date.
MARKETING
During the year
2010-11, BPCL’s market sales volume stood at 29.27 MMT as compared to 27.89 MMT
in the previous year. BPCL thus recorded a growth of 4.95% over the sales
volume of the previous year. There was no change in BPCL’s market share amongst
the public sector oil companies, which stood at 22.49% as at 31st
March, 2011. A detailed discussion of the performance of the Marketing function
is given in the MDandA.
PROJECTS
Central India Refinery Project
Bharat Oman
Refineries Limited (BORL), promoted by BPCL, has recently commissioned a 6
MMTPA grass roots refinery at Bina in Madhya Pradesh. Besides, crude oil import
facilities consisting of a Single Point Mooring (SPM) system and Crude Oil
Storage Terminal (COT) have been set up at Vadinar in Gujarat. A 935 km
cross-country crude oil pipeline of 24” (60.96 cm) dia from Vadinar to Bina has
been built for moving crude oil to the refinery. The refinery will help BPCL in
meeting the product requirements in the northern and central regions of the
country. The total cost of the project is estimated at Rs.122080.000 Millions
which has been funded with a debt equity ratio of 1.6 : 1.
BORL has an
authorized share capital of Rs.70000.000 Millions and paid up capital of
Rs.17772.300 Millions. The refinery has been set up in partnership with Oman
Oil Company (OOC). Besides the initial investment of Rs.755.000 Millions in the
share capital of BORL, OOC has made an additional investment of Rs.12196.700 Millions
in 81.31 crores equity shares of Rs.10 each at a premium of Rs.5 per share. As
on date, BPCL has subscribed to Rs.888.600 Millions equity shares of Rs.10 each
in BORL by investing a sum of Rs.8886.100 Millions including the initial
investment of Rs.755.000 Millions. In addition, BPCL has invested a sum of
Rs.9356.800 Millions against which it was allotted Rs.786.100 Millions warrants
representing the right to subscribe to Rs.786.100 Millions 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
in BORL. On a future date, BPCL and OOC will hold 49% and 26% respectively in
the fully diluted equity of BORL.
The individual
units, tankages and pipelines have been commissioned. All process units have
been independently
tested. The
integrated process run commenced on 1st May, 2011. The Refinery has been
dedicated to the nation by the Hon’ble Prime Minister of India, Dr. Manmohan
Singh on 20th May, 2011. The cumulative capital expenditure as on 30th June,
2011 amounted to Rs.113900.000 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 despatch terminal was constructed 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 bay
road loading gantry for LPG, 12 km long railway siding and other associated
infrastructural facilities, adjacent to the Bina refinery. The facilities have
been commissioned in stages and road despatches have commenced. The approved
cost of the project is Rs.6391.100 Millions and the cumulative expenditure as
on 30th June, 2011 stood at Rs.6065.700 Millions.
Bina Kota Product Pipeline
The project, with
an approved cost of Rs.4058.200 Millions involved laying of an 18” (45.72 cm)
dia, 257 km long cross-country product pipeline from Bina to Kota, to
facilitate the economic evacuation of MS, HSD, Superior Kerosene Oil (SKO) and
ATF from the Bina refinery. 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 Kota to facilitate distribution of products to the markets in
northern India. The pipeline is mechanically complete and will be commissioned
on receipt of sufficient quantity of finished product from the Bina Refinery.
The cumulative, expenditure on the project as on 30th June, 2011 stood at
Rs.3750.900 Millions.
Capacity Expansion cum Modernization Project (CEMP) – Phase II at Kochi
Refinery
The project
involved the putting up of facilities for the 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. All the
units envisaged in the project viz. capacity expansion of the Crude Distillation
Unit, VGO HDS Unit, NHT/CCR Unit, SRU Unit, Captive Power Plant and other
utilities have been completed and commissioned progressively. The total
expenditure on the project as on 30th June, 2011 was Rs.32606.700 Millions as
against the approved project cost of Rs.39414.100 Millions.
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. The project involves revamping of the Hydrocracker Unit to
increase the capacity from 1.75 MMTPA to 2.0 MMTPA and setting up of a 1.2
MMTPA capacity Continuous Catalytic Regeneration Reformer (CCR) Unit at a cost
of Rs.18270.000 Millions. The project is expected to be completed by April 2013.
As on 30th June, 2011, the project has achieved physical progress of 27.60%.
The cumulative expenditure on the project as on 30th June, 2011 stood at
Rs.1362.400 Millions while the total commitment as on that date amounted to
Rs.11420.000 Millions.
Refrigerated LPG Storage and Handling Facility at JNPT and Uran LPG
Plant
The project
envisages the development of LPG import facilities at Jawaharlal Nehru Port
Trust (JNPT). The project involves erecting of facilities for unloading of
refrigerated LPG, a 12.5 km long refrigerated transfer pipeline from the JNPT
jetty to Uran LPG Plant and storage in 2 x 8000 MT refrigerated tanks. The
project is in the final stage of completion and is likely to be commissioned in
November, 2011. The overall progress of the project stood at 95.4% as of 30th
June, 2011. The approved cost of the project is Rs.3044.000 Millions while the
cumulative expenditure up to 30th June, 2011 was Rs.2378.000 Millions.
Strategic Storage for LPG
Strategic storage
for LPG at a total cost of Rs.1930.000 Millions is being provided by putting up
23 Mounded Storage Vessels (MSVs) at 12 different locations. The work of
providing the MSVs at Pune, Nasik, Goa, Chennai, Bangalore and Pithampur
(Indore) has been completed and the tanks commissioned. The vessels at Lalru,
Saleempur, Mangalore, Dharwad, Jaipur and Kurnool are mechanically complete.
The cumulative expenditure on the project as on 30th June, 2011 was Rs.1715.700
Millions.
Pipeline for Transfer of LPG from BPCR/HPCR Mumbai to Uran LPG Plant
The project
consists of laying a 28 km pipeline (12 kms offshore and 16 kms onshore) and
providing 3 x 900 MT MSVs at Uran. The pipeline portion of the project costing
Rs.2068.100 Millions is being undertaken alongwith Hindustan Petroleum
Corporation Limited (HPCL) and the cost will be shared equally by the two
companies. The cost of MSVs amounting to Rs.400.000 Millions will be to BPCL’s
account. The process design has been finalized and the tendering /ordering
activities have been completed. The pipeline laying and civil works have
commenced and the project is likely to be completed by June 2012. The
cumulative expenditure on the project as on 30th June, 2011 stood at
Rs.315.100 Millions while the total commitments as on that date amounted to
Rs.2269.000 Millions.
SUBSIDIARY COMPANIES
Numaligarh Refinery Limited (NRL)
NRL was
incorporated in 1993 with an authorized capital of Rs.10.000 Millions. It is a
Mini Ratna Company (Category I) with a 3 MMTPA refinery at Numaligarh in Assam.
As on 31st March, 2011, BPCL holds 61.65% of the paid up equity in NRL. The
refinery processed 2.25 MMT of crude oil during the year 2010-11 as compared to
2.62 MMT processed in the previous year. As on 31st March, 2011 the Refinery
completed 9 years of Lost Time Accident (LTA) free operations (equivalent to
16.300 Millions man-hours) since the date of the last LTA. NRL achieved a
turnover of Rs.89721.900 Millions for the financial year ending 31st March,
2011 as compared to Rs.78740.900 Millions in the previous year. The Company’s
profit after tax for the year stood at Rs.2792.600 Millions as against a profit
of Rs.2320.800 Millions earned in the previous year. The earning per share
(EPS) for the year 2010-11 amounted to Rs.3.80 as compared to Rs.3.15 in 2009-10.
The Board of Directors of NRL has declared a dividend of Rs.1.50 per share of
Rs.10 each for the current financial year, which is the same as in the previous
year. NRL had a net worth of Rs.26010.600 Millions and a book value of Rs.35.36
per share as at 31st March, 2011.
Bharat PetroResources Limited (BPRL)
BPRL was
incorporated in 2006 as a wholly owned subsidiary company of BPCL, with the
objective of implementing BPCL’s plans in the upstream exploration and
production sector. During the financial year 2010-11, the authorized capital of
BPRL was increased from the existing Rs.10000.000 Millions to Rs.30000.000
Millions considering the need for long term resources for various projects in
India and abroad. As on 31st March, 2011, the subscribed and paid up share
capital of BPRL was Rs.11000.000 Millions which was entirely held by BPCL. The
exploration and production activities of BPRL and its subsidiary companies
extend to 27 exploration blocks, where they hold participating interests (PI).
Of this, 9 blocks are in India and 18 are abroad. Besides India, BPRL has
blocks in Australia, Brazil, East Timor, Indonesia, Mozambique and the United
Kingdom. BPRL’s total acreage in all these blocks is around 81,000 sq.km, of
which approx. 90% is offshore acreage. These blocks are in various stages of
exploration.
BPRL had formed a
wholly owned subsidiary company, Bharat PetroResources JPDA Limited (BPR-JPDA
LIMITED) 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,
BPRL International BV, Netherlands which in turn, has incorporated 3 wholly
owned subsidiary companies viz. BPRL Ventures BV, BPRL Ventures Mozambique BV
and BPRL Ventures Indonesia BV, for undertaking exploration activities in
various countries. BPRL Ventures BV has 50% stake in IBV Brasil Petroleo
Limitada, which has participating interests ranging from 20% to 40% in 10 blocks
in Brazil. BPRL Ventures Mozambique BV has participating interest of 10% in a
block in Mozambique, and BPRL Ventures Indonesia BV holds participating
interest of 12.5% in a block in Indonesia.
BPRL earned income
of Rs.6.700 Millions for the financial year ending 31st March, 2011 and had a
loss of Rs.189.800 Millions as compared to an income of Rs.4.200 Millions and
loss of Rs.357.200 Millions for the previous year. The consolidated loss for
the year was Rs.575.000 Millions as against profit of Rs.978.900 Millions in
the previous year.
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 has 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 (India) Limited (GAIL). Each of the promoter companies holds 12.50% of
the equity capital of PLL. The other major shareholders include Gaz de France
with a 10% equity stake and Asian Development Bank with a holding of 5.20% of
the equity capital of the Company. The balance 34.80% is held by the public.
BPCL’s equity investment in PLL currently stands at Rs.987.500 Millions. As at
31st March, 2011, PLL had a net worth of Rs.26800.000 Millions with a book
value of Rs.35.73 per share. The regasification capacity at Dahej, which is
currently 10 MMPTA, is being further expanded to 12.50 MMPTA. The work on the
greenfield terminal at Kochi has already commenced and the terminal is likely
to be commissioned by December, 2011.
PLL recorded a
sales turnover of Rs.131970.000 Millions in the financial year ending as on
31st March, 2011 as compared to Rs.0.011 Million recorded in 2009-10. The net
profit for the year stood at Rs.6196.100 Millions as compared to Rs.4044.900
Millions in the previous year. The EPS for the year 2010-11 amounted to Rs.8.26
as compared to Rs.5.39 in 2009-10. PLL has declared a dividend of Rs.2 per
share for the financial year 2010-11 against Rs.1.75 per share in the last
year.
Indraprastha Gas Limited (IGL)
IGL, a Joint
Venture Company promoted by BPCL and 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 Delhi. BPCL invested Rs.315.000 Millions for a 22.5% equity stake in
the capital of IGL. IGL has commissioned over 278 CNG stations which supply the
environment friendly fuel to more than 4,30,000 vehicles. IGL has more than 2,40,000
domestic Piped Natural Gas (PNG) customers and over 427 commercial customers in
Delhi. The Company is also extending its business to the towns of Greater Noida
and Ghaziabad. IGL has registered a turnover of Rs.19500.000 Millions and a
profit after tax of Rs.2584.300 Millions for the financial year ending on 31st
March, 2011 as compared to a turnover of Rs.12131.400 Millions and a profit
after tax of Rs.2154.900 Millions in the previous year. IGL has declared a
dividend of Rs.5 per share as compared to Rs.4.50 per share in the previous
year. IGL’s net worth was Rs.10838.800 Millions with a book value of Rs.77.42
per share as at 31st March, 2011.
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 Gandhinagar, Mehsana
and Sabarkantha Districts of Gujarat. 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 15 CNG stations. The Company has
achieved a turnover of Rs.4623.200 Millions and profit after tax of Rs.267.600
Millions for the financial year ending on 31st March, 2011 against a turnover
of Rs.2977.400 Millions and profit after tax of Rs.213.000 Millions in the
previous year.
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 Kanpur and Bareilly in Uttar Pradesh. The Company was incorporated
with an authorised share capital of Rs.600.000 Millions. The joint venture
partners have each invested Rs.150.000 Millions in the joint venture, with each
partner having an equity stake of 25% in the company. The balance equity share
capital has been subscribed to by Infrastructure Development Finance Company
Limited (IDFC), Asian Development Bank ADB) and Infrastructure Leasing and
Financial Services Limited (ILandFS). CUGL has set up 11 CNG stations.
CUGL has achieved
a turnover of Rs.733.700 Millions and profit of Rs.123.000 Millions for the
financial year ending on 31st March, 2011 as compared to a turnover of
Rs.458.300 Millions and a profit of Rs.70.900 Millions in the previous year.
The EPS for the year stood at Rs.2.05 as against Rs.1.24 in 2009-10. The Board
of Directors has recommended the payment of dividend at the rate Rs.0.70 per
share as compared to Rs.0.35 per share in the previous 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, industrial and automobile sectors
in Pune and its nearby areas. The Company was incorporated with an authorised
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. The balance equity shares have been subscribed by
IDFC, ILFS and Axis Bank. The Company has set up 14 CNG stations so far. MNGL
has achieved a turnover of Rs.360.800 Millions for the financial year ending
31st March, 2011 and profit of RS.1.000 Millions as against a turnover of
Rs.108.900 Millions and loss of Rs.25.200 Millions in the previous year.
Bharat Stars Services Private Limited (BSSPL)
BSSPL, a Joint
Venture Company promoted by BPCL and ST Airport Pte Limited, Singapore was
incorporated on 13th September, 2007 with an authorised share capital of
Rs.100.000 Millions for providing into plane fuelling services at the new
Bengaluru International Airport. The authorized share capital of BSSPL was
subsequently enhanced to Rs.200.000 Millions. The two promoters have each
subscribed to 50% of the equity share 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
also incorporated a wholly owned subsidiary for implementing into plane
fuelling services at the new T3 Terminal at Delhi International Airport. BSSPL
has achieved a turnover of Rs.25.400 Millions for the financial year ending
31st March, 2011 and profit of Rs.7.500 Millions as against a turnover of
Rs.29.000 Millions and a profit of Rs.6.400 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, Hyderabad and Shapoorji Pallonji Company Limited, through
their affiliate. Each of the partners will have an equal stake in the equity
capital of the joint venture. The project envisages plantation of Jatropha in 1
million acres (404690 hectares) of marginal land which has the potential of
generating employment / self employment for 1 million people and producing 1
million tonnes of Bio-diesel with an investment of Rs.22000.000 Millions over
the next 10- 15 years.
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 scheme. BREL has identified 1,00,000 acres
(40469 hectares) of wasteland for plantation. Efforts are also being made to
source saplings of Jatropha under the aegis of Bio-Tech Park, Lucknow through
approved nurseries and franchisees. Work is on for getting necessary approvals
for the identified land and in preparing the land for plantation.
BREL has earned
miscellaneous income of Rs.0.300 Millions for the financial year ending 31st
March, 2011 and incurred a loss of Rs.17.400 Millions as against a
miscellaneous income of Rs.0.800 Millions and a loss of Rs.14.400 Millions in
the previous year.
Matrix Bharat Marine Services Pte Limited (MBMS)
MBMS is a Joint
Venture Company incorporated in Singapore on 20th May, 2008 for carrying on the
bunkering business and supply of marine lubricants in the Singapore market, as
well as international bunkering, including expanding into Asian and Middle East
markets. The Company has been promoted by BPCL and Matrix Marine Fuels LP USA,
an affiliate of the Mabanaft group of companies, Hamburg, Germany. The
authorised capital of the Company is USD 4 million, which is equivalent to
Rs.200.000 Millions. Both the partners have contributed equally to the share
capital. Matrix Marine Fuels LP USA has subsequently transferred their share
and interest in the joint venture in favour of Matrix Marine Fuels Pte Limited,
Singapore, another affiliate of the Mabanaft group.
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 India. MBMS has achieved a turnover
of USD 402.33 million and earned a profit of USD 0.40 million as compared to a
turnover of USD 229.95 million and a loss of USD 0.65 million in the previous year.
Petronet India Limited (PIL)
BPCL has 16%
equity participation with an investment of Rs.160.000 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 has facilitated
pipeline access on a common carrier principle through joint ventures for
pipelines put up by them viz. Vadinar-Kandla, Kochi-Coimbatore-Karur and
Mangalore-Hassan-Bangalore. PIL registered income of Rs.2.300 Millions and a
net loss of Rs.13.100 Millions for the financial year ending 31st March, 2011
as against income of Rs.4.100 Millions and a net loss of Rs.9.400 Millions 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.490.000 Millions for a 49% stake in the equity capital of PCCKL, a
Joint Venture Company promoted with PIL with an authorised share capital of
Rs.1350.000 Millions. The Company owns the 292 km long multiproduct 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 2010-11 amounted to 1.87 MMT as against 1.72 MMT in the
previous year. PCCKL registered a turnover of Rs.548.700 Millions and net
profit of Rs.89.100 Millions for the financial year ending 31st
March, 2011 as compared to a turnover of Rs.504.200 Millions and net profit of
Rs.44.000 Millions in the previous year. BPCL has initiated steps subject to
completion of all formalities to purchase the 26% share of PIL in PCCKL.
Delhi Aviation Fuel Facility Private Limited (DAFFPL)
A new Joint
Venture Company, DAFFPL, has been promoted by BPCL, IOC and Delhi International
Airport Limited (DIAL) for implementing Aviation Fuel facility for the new T3
Terminal at Delhi International Airport. BPCL and IOC will subscribe to 37% of
the share capital of the joint venture while the balance will be held by DIAL.
BPCL’s onsite assets at the Delhi Airport were transferred to the Joint
Venture. DAFFPL has registered a turnover of Rs.960.600 Millions and net profit
of Rs.346.700 Millions for the financial year ending 31st March, 2011.
MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC DEVELOPMENTS
The
financial year 2010-11 was a challenging period for both businesses and policy
makers. At the global level, the debt crisis in European countries like Greece,
Ireland and Portugal remained a cause for concern. There were also uncertainties
about the pace of economic recovery in the western world and the likely spike
in commodity prices. The international markets continue to remain volatile. The
rising prices and the gradual withdrawal of the fiscal stimulus in many
countries are likely to taper the pace of growth. The major earthquake and the
resultant tsunami in Japan added to the woes of the markets. The political
crisis in several countries in the Middle East and North Africa has also
impacted the global economy. On the domestic front, the key issue remains the
inflationary pressures being faced by the economy despite several measures
taken by the Government and the Reserve Bank of India. At the same time, policy
makers have been alive to the need to nurture economic recovery in the face of
global uncertainty. Interest rates have been on the uptrend and this will have
an impact on the profitability of businesses. Despite the challenges
encountered, India’s Gross Domestic Product (GDP) is estimated to have grown by
8.5% in 2010-11. The good monsoon across the country has contributed towards
healthy growth of the agriculture sector. However, the manufacturing sector
grew at a slower pace as compared to the previous year. With key commodity
prices expected to remain at elevated levels in 2011-12, there could be an
impact on the pace of economic growth.
Even
as global refining margins have been quite strong during the year, crude oil
prices have also remained high throughout the year. The average prices of crude
oil during the financial year was much higher than in 2009-10 and were in line
with the average in 2008-09 when the international prices had reached record
levels. There are serious concerns on the geo-political front in the Middle
East and North Africa, which are major producers of crude oil and consequently,
the international oil prices continue to remain high. There are expectations
that oil prices may not come down significantly from the current levels and the
world will need to live in a high oil price environment. During May 2011, there
have been sharp falls in the prices of commodities like silver. Oil prices have
also declined but they continue to remain at levels in excess of USD 100 per
barrel. This would impact the pace of economic growth and would pose serious
challenges, both to the developed and developing economies like India.
Notwithstanding the challenging business
climate, India’s GDP continued to grow at a healthy rate. However, the slowing
down of the growth in sectors like manufacturing, coupled with rising prices,
will make the aspiration of achieving GDP growth rates in excess of 9% on a
consistent basis, a major challenge. The stock markets are also experiencing
bouts of selling by foreign investors. There has been a slowdown in terms of
new issues coming to
the
market for raising funds from investors. Barring a few issues of Public Sector
Undertakings (PSUs), the share
prices
of companies which had come out with Initial Public Offerings (IPO) are
languishing below the issue price, further dampening investor sentiments.
However, experts continue to hold the view that India remains a promising
market and that the economy is likely to become one of the global powerhouses.
The Indian rupee remained strong for a major portion of the year.
Unlike
in 2009-10, the agriculture sector was a strong performer in 2010-11 on the
back of an excellent monsoon throughout the country. There are expectations of
a near normal monsoon in 2011-12 also, which will go a long way in ensuring
that this sector continues to perform well. The Reserve Bank of India is likely
to continue with its policy of tightening interest rates for some more time.
The days ahead are therefore likely to be extremely challenging.
TRENDS IN THE OIL AND GAS SECTOR
Although
there was a gradual increase in international oil prices in 2009-10, the record
levels reached in 2008-09 were not breached. The year 2010-11 has seen prices
being sustained at high levels and over the later part of the year, the prices
have gone up further. At present, oil prices continue to remain beyond the USD
100 per barrel mark. The high prices can be attributed to the political
situation in several countries of the Middle East and North Africa. Also,
consequent to the nuclear plant crisis in Japan caused by the earthquake and
tsunami, there are expectations of an increase in demand for oil and gas in
that country to replace nuclear power.
The
International Energy Agency (IEA) has, in its oil market report of 12th April,
2011, estimated the global demand for oil in the calendar year 2010 to be of
the order of 87.9 Million Barrels per day (MBPD) representing an increase of
2.9 MBPD and 3.4% over the demand in 2009. At the same time, the total supply
of crude oil increased only by 1.5 MBPD in 2010 over 2009. The Asia Pacific
region has accounted for a major portion of the growth in demand in 2010. The
other regions have maintained their demand levels, unlike the previous year,
which had witnessed a sharp fall in demand, especially in countries of Europe
and North America. The average price in 2010-11 of the benchmark Brent crude
stood at USD 86.73 per barrel which was more than the highest level of USD 80.5
per barrel in the previous year. While demand for crude oil will remain strong
from countries like India and China, prices are likely to be impacted by the
crisis in the Middle East and North Africa, higher demand from Japan (if there
is a switch from nuclear power) and increased consumption in developed
countries, as the economies continue their recovery. The Reserve Bank of India
had, therefore, in its Monetary Policy Statement for 2011-12, estimated the
average cost of crude oil in 2011-12 to be around USD 110 per barrel. The year
2011 is expected to see the global oil demand to reach a level of 89.4 MBPD,
indicating a year on year growth of 1.6%. The IEA estimates the global oil
demand to grow by 1.3% annually over the next five years and reach a level of
95.3 MBPD by 2016. However, the possibility of persistent high oil prices
impacting this likely growth in demand remains. The increase in global demand
will continue to be led by the growth in countries of the Asia Pacific region.
Towards
the end of the financial year 2009-10, there was hardly any differential
between the prices of Brent and Dubai crude. The trend of reducing
differentials between the light and heavy crude oils had commenced in 2008- 09.
The year 2010-11 saw the differential make a comeback with the Brent – Dubai
differential averaging USD 2.6 per barrel. The initial months of the financial
year 2011-12 has seen the differential widen further and average around USD 7
per barrel. The significant increase in the differentials, if sustained during
the current year, can benefit refineries capable of processing heavier crude,
by enhancing the refining margins.
The
sharp drop in the oil output of countries like Libya had an impact on crude oil
availability in March 2011 and this has contributed to higher prices. Major oil
exporting countries like Saudi Arabia have ensured higher supply levels as
compared to the previous year. However, prices are likely to remain high owing
to constraints on the supply side. The pace of economic recovery in the
developed countries, impact of the debt crisis in Europe, coupled with
inflationary pressures in countries like India and China, could however
moderate demand for crude oil in 2011-12.
The
trend of the average crude oil prices in 2010-11 being higher than the average
prices in 2009-10 has also been witnessed in prices of key petroleum products.
Although there has been some reduction in the current financial year, product
prices continue to rule at high levels. This will push up costs in countries
that are largely dependent on imports for meeting their requirements of
petroleum products. The higher international prices are likely to impact the
growth in demand. Barring Germany which has seen strong growth in demand for
products like Naphtha and Diesel, on account of a strong economic performance,
growth remains flat in other major European countries. Asia continues to show
strong demand growth with India likely to see increased demand for products
like Liquefied Petroleum Gas (LPG), Diesel and Petrol.
INDIAN PETROLEUM SECTOR
Even
as the economies around the world continue the process of recovering from the
financial crisis, the Indian economy remained one of the few to grow at a
reasonable rate. While the GDP grew at around 8% in 2009-10, the growth is
estimated to be around 8.5% in 2010-11. This can be attributed to a large
extent on the good performance of the agriculture sector on account of the good
monsoon. The industrial sector has started showing signs of slowing down since
the beginning of the second half of the year.
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 2010-11 was of the order of 141.75 MMT as against 137.81 MMT in
the previous year. This represents an increase of 2.86% over the previous year.
The growth rate in the consumption of petroleum products has declined during
the year, as compared to the previous year when consumption had grown by 3.15%.
The retail segment of the market, comprising of transportation fuels like Motor
Spirit (MS) and High Speed Diesel (HSD), has grown over the previous year by
7.4%. While the consumption of MS has gone up by 10.8% over the previous year,
demand for HSD went up by 6.6%. However, when seen in the context of the growth
in 2009-10, the rate of growth has been lower in both MS and HSD. LPG and
Aviation Turbine Fuel (ATF) have also delivered strong growth in 2010-11. LPG’s
growth at 9.1% is higher than the growth of 7.7% achieved in the previous year.
In the case of ATF, the growth at 9.7% is considerably higher than the previous
year, clearly indicating that the recovery of the Aviation sector from the
slowdown seen in 2008-09 was sustained. However, the growth in Bitumen demand
seen in 2009-10 could not be sustained and consumption fell by 7.7% during the
year. Demand for Naphtha remained flat and decline was also evident in
Liquefied Natural Gas (LNG) sales, mainly on account of increased availability
of domestic gas during the year. The higher prices in the international
markets, increase in domestic selling price of products like MS and HSD and
lower production of domestic gas are likely to impact the demand for petroleum
products in 2011-12.
During
the year, the average cost of the Indian basket of crude oil stood at around
USD 85 per barrel as compared to an average cost of USD 70 per barrel in the
previous year. The average cost in 2010-11 is even higher than the average cost
in 2008-09 when prices had reached record levels, clearly indicating that the
relief on account of lower prices in 2009-10 was short-lived. The prices have continued
to remain firm in the initial months of the current financial year also. The
higher prices have in turn, increased the burden on the public sector
downstream marketing companies, as there was no revision in the selling prices
of key products like HSD, LPG (Domestic) and Superior Kerosene Oil (SKO) after
June 2010, in the financial year 2010-11. There has been a sharp increase in
the under-recoveries on the sale of these products, which in turn has adversely
affected the financial position of the public sector oil marketing companies.
The
country had imported around 163.13 MMT of crude oil during the year as against
159.26 MMT in the previous year. With international oil prices being firm
throughout the year, the outgo on the imports of crude oil increased
significantly, although the quantity of imports had only gone up marginally.
The foreign exchange outgo on crude oil imports in 2010-11 stood at USD 99
billion as compared to USD 80 billion in 2009-10. The strong Indian rupee has
to a certain extent reduced the burden of the higher cost of the imported crude
oil. With international oil prices expected to remain firm during the current
financial year, owing to the overall global situation and with India largely
dependent on imports, the outgo on this account is expected to be higher during
the current year.
India’s
total refining capacity is significantly higher than the domestic requirements.
Consequently, India has been a major exporter of petroleum products. While
public sector companies are exporters of products like Naphtha and Fuel Oil,
the private refineries also export products like MS and HSD. The total volume
of exports of finished products during 2010-11 touched a level of 56.35 MMT,
which was about 10% higher than the level of 51 MMT in the previous year. The
higher quantum of exports led to total export realization increasing from USD
31 billion in 2009-10 to USD 40 billion in 2010-11. At the same time, the
country continues to import petroleum products like LPG, MS and HSD. The
quantum of imports in 2010-11 stood at 17 MMT as compared to 14.66 MMT in the
previous year. The foreign exchange outgo on such imports also increased from
USD 7 billion in 2009-10 to USD 12 billion in 2010-11.
Over
the last few years, the international prices of crude oil have been volatile
and have increased considerably. At the same time, the retail selling prices of
sensitive products like HSD, LPG (Domestic) and SKO (Domestic) did not undergo
changes in line with the increases in the international markets. With pricing
at the refinery point being based on international prices, the lower market
prices have led to under-recoveries being suffered by the public sector oil
marketing companies. With effect from 26th June, 2010, pricing of MS was
deregulated and companies could revise prices in line with changes in the
international prices. However, as sales volume of MS is only a small portion of
the total sales of sensitive products, oil marketing companies continue to
grapple with the issue of under-recoveries. This has a major affect on their
cash flows and has led to an increase in their borrowings. The rising
international prices are putting additional strain on the marketing companies.
The
Government of India had constituted an Empowered Group of Ministers (EGoM), headed
by the Union Finance Minister, to decide on the recommendations of the expert
group on ‘A Viable and Sustainable System of Pricing of Petroleum Products’
headed by Mr. Kirit Parikh. Subsequent to the meeting of the EGoM held on 25th
June, 2010, pricing of MS was freed from controls. Although the EGoM had
decided that decontrol would also be extended to HSD pricing in due course of
time, the same is yet to take place. The EGoM also approved the increase of
retail selling price of HSD by Rs.2 per litre, LPG (Domestic) by Rs.35 per
cylinder and SKO (Domestic) by Rs.3 per litre. Apart from this, there were no
price increases in these products during the year 2010-11, although
international prices have gone up considerably. However, as MS pricing was deregulated,
their prices were revised at periodic intervals on 6 occasions after the
initial increase on 26th June, 2010. There was a further increase in the
selling price of MS by Rs.5 per litre with effect from 15th May, 2011.
Effective
25th June, 2011, the Government of India has removed the customs duty on crude
oil from the then prevailing 5%. It has also reduced the customs duty on MS and
HSD from 7.5% to 2.5%. The excise duty on HSD
was
also reduced from Rs.4.60 per litre to Rs.2 per litre. The Government also
increased the retail selling price of HSD by Rs.3 per litre from that date
exclusive of state levies like VAT etc. Similarly, the retail selling prices of
SKO has been increased by Rs.2 per litre and that of LPG (Domestic) cylinders
by Rs.50 per cylinder exclusive of state levies. These measures are expected to
mitigate, to a certain extent, the burden of the downstream oil marketing
companies.
The
under-recoveries were compensated partially by the upstream oil companies by
way of discount on the crude oil purchased by the refining companies. A part of
the burden was also shared by the Government of India by way of cash
compensation, unlike the earlier mechanism of issuing Government of India
Bonds. However, as the entire burden is not compensated, the oil marketing
companies continue to absorb a part of the under recoveries caused by the
non-revision of the selling prices of the three sensitive products. While the
compensation in the form of cash from the Government helps in mitigating the
problem of under-recoveries to a certain extent, the time lag in receipt of the
cash leads to oil companies having to borrow large amounts to meet their
working capital requirements. The resultant increase in the interest cost is
borne by the oil marketing companies. This also has an adverse impact on their
ability to undertake large investments, which are essential for enhancing the
infrastructure required to meet the country’s growing demand for petroleum
products. The domestic crude oil processing in 2010-11 stood at 196.5 MMT,
representing a growth of around 5.3% over the previous year when 186.6 MMT of
crude oil was processed by Indian refineries. With additional refining
capacities coming on-stream, India will continue to remain long on refining
capacity for some more time.
There
are expectations that the Government will look at various options aimed at
reducing the burden of subsidy on the sensitive products. It is also possible
that action may be taken to implement the decision to free HSD from pricing
controls. These decisions, when taken, will have major implications for the
public sector oil marketing companies. On the one hand, the problem of
under-recoveries can get redressed to some extent. At the same time, private
players are likely to re-enter the market leading to increased competition.
Also, demand for products like HSD will get impacted if the prices go up. There
will also be the issue of higher rates of inflation given that HSD is an
important component of the economy’s freight costs. The global situation
remains volatile and many countries are still not out of the woods as regards
their debt problems. All these uncertainties make the coming days extremely
challenging and will call for considerable skills to deal with the problems,
while ensuring that the Company continues on its growth path.
PERFORMANCE
The performance of
the various Strategic Business Units (SBUs) and Entities is discussed in detail
in the following paras.
REFINERIES
During the year,
BPCL’s two refineries at Mumbai and Kochi achieved a total crude throughput of
21.78 MMT as compared to the combined refining capacity of 21.5 MMT. As the
Kochi Refinery was in the midst of a major revamp to enhance the refining
capacity from 7.5 MMTPA to 9.5 MMTPA, the effective refining capacity of the
two refineries for the year was 12 MMT for Mumbai and 8.65 MMT for Kochi.
Mumbai Refinery’s throughput of 13.02 MMT represented a capacity utilisation of
108.5% notwithstanding the shutdown of key units for undertaking turnaround
activities. Processing of external reformate, partly from Kochi Refinery, not
only enabled increasing the refinery throughput to a record level, but also
helped in timely production of Euro IV grade auto fuels at Mumbai Refinery.
Kochi Refinery recorded a throughput of 8.76 MMT during this year as compared
to 7.89 MMT in 2009-10. This was the highest ever achieved by the refinery in a
single financial year.
Both the
refineries commenced production of Euro IV grades of MS and HSD. Mumbai
Refinery recorded the highest ever production of LPG, ATF, HSD and Lube Oil
Base Stock. Also, the production of 250N Group III Lube Oil Base Stock and
Hexane with low Benzene content (<350 ppm) were significant achievements
during the year. Kochi Refinery recorded its highest ever production of ATF,
Bitumen, LPG and Propylene in a single year.
The favourable
crude - product spreads during the year, as reflected in the increase in
Singapore - Dubai cracking margin from USD 3.5 per barrel in 2009-10 to USD 5.2
per barrel in 2010-11, had a positive impact on the Gross Refining Margin (GRM)
of the refineries. Mumbai Refinery earned a GRM of USD 4.23 per barrel as
compared to USD 1.78 per barrel in 2009-10. Mumbai Refinery also achieved
better margins by substituting Naphtha as feed and fuel by Regasified LNG
(RLNG) in both Hydrogen Generation Units and as fuel in Gas Turbines for power
generation, commissioning of Advanced Process Control (APC) in the RMP complex
and use of MINAS effluent water in cooling towers as a replacement of BMC fresh
water. Kochi Refinery’s GRM for 2010-11 stood at USD 4.83 as compared to USD
4.87 in the previous year. In spite of teething problems consequent to
commissioning of new facilities like NHT-CCR and VGO-HDS for meeting Euro III
quality norms, Kochi Refinery was able to maintain the refining margin by
achieving higher crude throughput and better distillate yield.
Mumbai Refinery
made a number of significant process improvements in the day-to-day operations
by successfully implementing quality philosophies and quality enhancement tools
like Six Sigma and Quality Circles encompassing major functional areas. The
approach has been reinforced by facilitating the teams to be exposed to the
best industry practices. Mumbai Refinery’s Six Sigma team and Quality Circle
team achieved a unique feat of winning the “Gold Award” – the highest category
award in the ICQCC 2010 (International Convention of Quality Control Circles)
competition, which saw participation of 448 teams from 11 countries. Quality
Circles have also been used extensively in Kochi Refinery. The refinery has 18
Quality Circles spanning functional areas like Manufacturing, Power and
Utilities, Maintenance, Oil Movement and Storage, Finance and Human Resources.
Two Circles (HR and Maintenance) won the Excellent/Meritorious category Awards
in the National Convention of Quality Circle Forum of India held at
Vishakhapatnam in December 2010. Three Circles (Power and Utilities,
Manufacturing and Maintenance) presented case studies in the International
Convention of Quality Circles held at Hyderabad in October 2010 and won Silver
and Bronze awards.
Mumbai Refinery
won the “Performance Excellence Award” of the Ramakrishna Bajaj National
Quality Awards (RBNQA 2010) under the Large Manufacturing Category for the
fourth consecutive time. This award, which is modelled on the world famous
Malcolm Baldrige National Quality Award in USA, is one of the most prestigious
recognitions in the area of quality. Kochi Refinery’s Quality Control
Laboratory continued its participation in the Shell Main Products Correlation
Scheme of M/s. Shell Global Solutions, Netherlands and obtained a score of 100%
six times for satisfactory performance in the scheme during the financial year
2010-11. Mumbai Refinery also excelled by securing a composite rating of 97%
and securing 100% score as many as seven times during the year in the above
proficiency testing scheme.
Aiming at a
unified approach in the processes, interfaces, structures and documentation
systems of individual management systems under ISO 9001, ISO 14001 and OHSAS
18001, Mumbai Refinery successfully got these management system standards
combined into an Integrated Management System (IMS) and got certified under IMS
during 2010-11. On the safety front, Mumbai Refinery achieved 9.7 million man-hours
of operations without Lost Time Accident (LTA) during 2010-11. Kochi Refinery
too had an accident free year, enabling it to complete a staggering 1918 days,
which is equivalent to 21.8 million man-hours of operation without LTA. It is
significant that this sterling performance was achieved in spite of hectic
turnaround and construction activities carried out during the year at both the
refineries.
In order to
enhance the mechanical integrity and reliability of static equipments, both
refineries embarked on Phase II of the Asset Integrity and Management System
(AIMS) project which is in an advanced stage of implementation. This phase
includes Risk Based Inspection (RBI), an initiative to prioritize plant
inspection based on the associated risks (probability and consequences of
failure) and schedule maintenance activities accordingly. Major rehabilitation
of plant structures, pipe track development, refurbishment and painting
activities were taken up in Mumbai Refinery to enhance the reliability of plants.
Conservation of energy is another key area where Mumbai Refinery has been
adopting innovative process related initiatives and hardware changes. As a part
of energy saving and loss control measures, the refinery employed the “Chemical
Decontamination Process” leading to reduced turnaround maintenance downtime of
units and recovery of valuable oil from the effluents generated. Installation
of torrodal core transformers resulted in substantial energy savings in
lighting circuits. The steps taken by Kochi Refinery on the energy control
front include commissioning and installation of Variable Speed Drives,
Automatic Combustion Control for charge heaters in the old Vacuum Unit and
providing FRP blades for 22 air fin fans in the FCC Unit. Fuel savings, as a result
of the energy conservation measures implemented in Kochi Refinery, correspond
to a savings potential of over 4000 tonnes of Fuel Oil.
Kochi Refinery
carried out the first ever ex-situ regeneration of DHDS catalyst by a public sector
refinery in the country. This measure will not only ensure better regeneration
of the catalyst but also reduce the turnaround time of the unit.
Mumbai Refinery
continued its focus on the preservation of the environment. The use of RLNG in
Mumbai Refinery has contributed to the reduction of CO2 and SO2 emission from
the refinery. In addition, a number of significant environmental initiatives
were also undertaken as a part of the Environmental Management System under ISO
14001. The refinery also coordinated with eight oil companies, Mumbai Port
Trust and Jawaharlal Nehru Port Trust for the execution of the Memorandum of
Understanding for establishment of an Oil Spill Response Plan (Tier-I) facility
in Mumbai harbour. Efforts on rainwater harvesting also resulted in utilization
of around 14,000 Kilolitres (KL) of rainwater. Rainwater harvesting facilities
in Kochi Refinery were augmented to have a collection pond capacity of 1,75,000
KL in place of the original 1,25,000 KL. Residual oily sludge, generated mostly
from crude tank bottom cleaning, was treated at the refinery, employing
mechanized oil recovery, thus recovering valuable oil before residual
treatment. Kochi Refinery contributed by recovering 925 m3 oil out of the 3271
m3 oily sludge. Oil spill response facility at Cochin Port is being augmented
with an investment of Rs.6.000 Millions.
Continuing with
the philosophy of harnessing the human resource potential, various need based
learning and development initiatives were organized at the Mumbai and Kochi
Refineries. A total of about 12,200 man-days of training was organized by the
refineries. These customized training programmes reaching all levels of
employees covered a variety of subjects. Employees were also exposed to
programmes outside the Company in order to help them learn from experts in the
field and external organizations.
Mumbai Refinery
initiated a number of major community programmes such as vocational guidance
courses and medical services at Mahul and Karjat villages near Mumbai. Around
97 fisherfolk from Mahul were provided fishing nets to enable them to have a
means of livelihood. Environment Awareness campaigns involving senior officials
of Mumbai Refinery were undertaken covering 2185 students of Chembur schools.
Kochi Refinery became the enabler in revitalizing functioning of Encon Clubs in
schools and colleges with the number of Encon Clubs increasing from 50 to 60.
The BPCL group
ultimately aspires to reach a refining capacity of 1 Million Barrels Per Day
over the next five years. BPCL also has ambitions of venturing into the
Petrochemicals sector. While this will call for a large quantum of investments,
BPCL is focused on meeting the challenging targets, which in turn will help in
satisfying the growing energy needs of the country.
RETAIL
The financial year
2010-11 was an eventful and challenging year for the Retail business. The
Government of India announced the decontrol of MS pricing with effect from 25th
June, 2010. There are expectations that pricing of HSD will also be freed from
pricing controls in the coming days. These changes will be very significant in
a market that has been largely dominated by the public sector oil marketing
companies. Owing to the under-recoveries in the sale of HSD and earlier in the
case of MS also, private oil companies had scaled down their presence in the
retail market. However, they are expected to increase their presence once a
decision on the decontrol of HSD pricing is taken.
During the year
2010-11, the retail business of public sector oil marketing companies saw sales
volumes increase by 6.8% over the previous year. BPCL recorded a sales volume
of 18.69 MMT in the retail business in 2010-11, which represented a growth of
8.6% over the previous year when the sales volume stood at 17.21 MMT. Both MS
and HSD sales grew at a healthy rate. While MS sales grew by 9.46% to reach a
level of 3.9 MMT in 2010-11, the HSD volumes increased by 9.88% and stood at
13.1 MMT. With its focus on enhancing customer enablement, BPCL has been able
to register higher growth in HSD sales, as compared to the industry average.
Although the total sales volumes of MS and HSD are increasing, the trend of
declining sales of branded fuels continued during the year. While the sales of
branded MS declined by 30.21%, that of branded HSD fell by 45.2%. This position
is not likely to change till such time as the difference in the basis of
taxation between branded and unbranded fuels continue leading to high price
differentials. During the year, the public sector oil companies commissioned a
total of 2589 new retail outlets. Of this, BPCL accounted for 598 (includes 39
taken over from NRL) new retail outlets. BPCL has plans of adding another 700
new outlets to the marketing network during the year 2011-12, with the stress
remaining on site quality in urban areas and strategic expansion on the
highways. In the Highway sector, the throughput per outlet for the One Stop
Truck Stop (OSTS) outlets stood at 867 KL per month. OSTS outlets accounted for
over 7% of the total HSD sales during the year. BPCL’s overall throughput per
outlet stood at 191 KL, which is 22% higher as compared to that of other oil
companies.
BPCL has been a
front-runner in the alternate fuels segment with sales of Compressed Natural
Gas (CNG) recording a growth of 15% to touch a level of 203.6 TMT for the year.
The Auto LPG sales volume for the year 2010-11 stood at 56.03 TMT. During the
year, 16 CNG stations and 9 Auto LPG stations were added to the marketing
network. Although CNG and Auto LPG sales impact the sales of MS and HSD, it has
helped in retaining customers who had migrated from traditional fuels.
Despite a
significant price rise, BPCL was able to retain Lubes sales volume through the
Retail Channel. An initiative to provide Quick Oil Change service to 2 wheeler
customers was taken up in all major markets. This was aimed at removal of the
entire quantity of burnt oil from the engines using a suction pump and
thereafter, filling BPCL’s MAK branded oils at the retail outlets.
With the growth in
sales volume, the Logistics function has assumed great significance. Proper
planning has ensured that optimum levels of inventory were maintained at all
locations in line with operational requirements. Given the pressures on the
cash flows, the focus continues to remain on managing inventory levels to
prevent blocking of funds in working capital. Once the operations of the Bina
Refinery are stabilized, product availability in the key markets in northern
parts of the country will improve significantly.
Ethanol blending
facilities have also been provided at all supply locations to ensure that
upliftments are in line with the quantities contracted in the notified states.
With the product quality specifications for MS and HSD having been upgraded
during the year to BS IV from BS III, requisite changes in the supply point
operations were carried out in line with the time frame set for the product
conversion. The Vehicle Tracking System is now implemented on 6320 tank lorries
out of the total fleet of 6511 tank lorries engaged in delivering MS and HSD to
retail outlets. The volume of rail movements crossed the 10 MMT mark during
2010-11 and is the highest achieved in a single year. Cross-country pipelines
also delivered significantly higher performance during the year with total
product movement of 6.14 MMT in the Mumbai-Manmad-Manglya-Bijwasan pipeline and
1.88 MMT in the Kochi Coimbatore-Karur pipeline. BPCL continued to achieve
greater efficiencies in operations, which in turn contributed towards achieving
a reduction in operating costs like overtime and operating losses.
In line with
BPCL’s commitment to deliver value to the customer and with a view to
strengthen the service and operating standards of the network of “Pure for
Sure” (PFS) retail outlets, a total of 4959 retail outlets have been
re-certified under the PFS banner during the year. With the robust automation
system in place, it will be BPCL’s endeavour to enhance the service levels,
operating and monitoring practices at the PFS retail outlets through higher level
of certification standards.
As at the end of
the year, BPCL’s tally of Automated outlets stood at 2554, which is the highest
in the industry. Automation for Sure (AFS) has also been implemented at 850
automated outlets. The strong back-end servers, monitoring mechanism and
sustenance systems ensured that fuel delivery and sales transactions at the AFS
outlets are always through automated units.
The Retail Outlet
Maintenance programme has been taken to the next level with the upgradation of BROMA
(Bharat Retail Outlet Maintenance Application) to BROMA+ all across the country
during the year 2010-11. This initiative integrates the complaint management
system of retail outlets with the SAP platform and in the process provides
online and real-time MIS on status of the maintenance requests. This has
further enhanced the level of comfort of dealers and vendors to manage their
business in a more effective and professional way.
The Petro Bonus
Program, launched in 1999 has been perceived as a pioneering effort by BPCL to
build lifetime relationships with their customers. The first of its kind in
India, Petro Bonus and SmartFleet programs are part of BPCL’s efforts in
creating, retaining and growing profitable relationships. Gaining long term
customer loyalty remained a strong strategic focus for the business. The “Petro
Card” base grew by 63,705 customers to reach 1.08 million while the SmartFleet
base grew to 1.31 million with the enrolment of 170,112 vehicles during the
year. The customer acquisition strategy, be it the acquiring of Platinum and
Gold customers or the focus on getting new telecom customers, has helped boost
volumes hugely. Sales to these customers accounted for a substantial value of
the Retail business’ turnover. SmartFleet and Petro Card sales for the year
reached Rs.102890.000 Millions and Rs.27980.000 Millions respectively,
totalling an all time high of Rs.130.870 Millions. BPCL continued its strategic
payment facilitating alliance with HDFC Bank for increased customer convenience
and to drive their customer base to BPCL outlets. As on date, BPCL has a 2.39
million strong membership base clocking about 1.2 lakh transactions every day
at 4900 Bharat Petroleum outlets across the country.
The Allied Retail
Business grew by 5.13% during the year 2010-11 to reach a turnover of
Rs.3776.000 Millions. The business is currently offering a basket of services
ranging from C-stores and Quick Service Restaurants, to financial and travel
related services. The main initiatives, namely C-Shopping and C-Food, have
grown notwithstanding the difficult economic environment. BPCL has a network of
209 In and Out stores and 25 outlets with alternate Retail formats. Convenience
Shopping volumes grew by 11% in both turnover and income terms with a sales turnover
of Rs.1620.000 Millions. There were 35 new commissioning of food offerings
during the year on the Quick Service Restaurant front, which took the total
network number to 99 by the year end with alliances with major players like
Café Coffee Day, Sri Krishna Sweets, Subway etc. C-Food achieved a turnover of
Rs.810.000 Millions in 2010-11.
ATMs continued to
be a focus area as a part of the alliance management strategy. Alliances with
multiple banks make up for 404 ATMs which are currently in operation in the
BPCL outlets.
INDUSTRIAL AND COMMERCIAL
The business
continued to operate in an extremely challenging and tough environment. The
rising trend of crude oil and product prices, direct imports by end users and
traders and aggressive selling by private refiners have had an impact on the
sales volumes. During the year 2010-11, the Industrial and Commercial business
recorded a total sales volume of 5.02 MMT reflecting a decline of around 10%
over the sales volume of 5.6 MMT achieved in the previous year. Sales of
Naphtha were down by 21%, LSHS by 43% and Furnace Oil by 20% as compared to the
previous year. However, in the case of Bitumen, BPCL was the only company
amongst the public sector oil companies to have recorded a growth in sales
volume in 2010-11. With a view to strengthen BPCL’s position in the Bitumen
market, the company has signed a MOU with Border Roads Organisation for supply
of fuels and Bitumen. BPCL also recorded the highest growth in the sale of
special products like SBP and MTO. The business continued to grow its bunkering
initiative both in Mumbai and Kochi.
With a view to
improve the cash flows, the Industrial and Commercial business continued its
efforts of ensuring faster collection of dues from customers by effective use
of processes like Real Time Gross Settlement (RTGS) and National Electronic
Fund Transfer (NEFT). These channels accounted for collections in excess of
Rs.14000.000 Millions during the year 2010-11, which represents nearly 67% of
the total turnover of the business.
The business will
remain one of the toughest segments in the industry. The recent reduction in
the customs duty of some of the products in the portfolio will only increase
the challenges before the business. BPCL continues to be focused on remaining
competitive by entering new markets and adopting innovative strategies.
GAS
During the year
2010-11, BPCL handled 933 TMT of RLNG as compared to 820 TMT during the
previous year. This represents an increase of 13.7% over the year 2009-10. The
Gas business unit supplied 326 TMT of gas to Mumbai Refinery for meeting the
internal requirements of the refinery. The balance quantity of 607 TMT of gas
was supplied to various customers in the fertilizer, power and other sectors.
During the year, BPCL along with Inox India, successfully commissioned a pilot
project for supply of LNG through tank trucks to General Motors at Halol,
Gujarat. BPCL is in the process of tying up more customers for supply of LNG
through this new mode of supply.
BPCL has
aspirations for having a bigger presence in the country’s evolving gas market.
With a view to enter the gas transportation segment, BPCL has joined hands with
other oil companies to form a consortium led by Gujarat State Petronet Limited.
The consortium has been declared the best bidder during the bidding conducted
by the Petroleum and Natural Gas Regulatory Board (PNGRB) for laying, building
and operation of three cross-country natural gas pipelines viz. the 1585 km
Mallavaram- Vijaypur-Bhilwara Pipeline, 1670 km Mehsana-Bhatinda Pipeline and
the 740 km Bhatinda-Jammu-Srinagar Pipeline. BPCL has also participated in the
City Gas Distribution (CGD) bidding rounds for Jalandhar and Ludhiana in
partnership with Oil India Limited and ONGC Limited. BPCL will also be
evaluating the possibility of participating in the forthcoming bidding rounds
of PNGRB for CGD in other cities.
BPCL has plans for
enhancing its presence in the country’s gas markets in the days to come.
Besides participating in bidding rounds for putting up gas pipelines, the
company is exploring various opportunities for having access to a larger
quantum of gas that can be marketed, which can lead to an increase in BPCL’s
sales volumes.
LUBRICANTS
The Lubricants
sector has evolved over the years, from a completely controlled market
environment to a completely decontrolled scenario. Although many multinationals
operate in the market in this category, public sector oil marketing companies
continue to hold the major share of the market. This segment also remains one
of the most competitive. Over time, due to technological developments,
significant changes have taken place in consumption patterns. BPCL has a strong
presence in the market, which is augmented by its access to its own source of
Group II+ base oil from Mumbai Refinery. Also, BPCL’s flagship brand “MAK” has
kept pace with the changing requirements of the consumer. In line with the
expected pace of growth of the Indian economy, the Lubricants business offers
immense potential for growth.
The Lubricants business
has posted healthy results during the financial year 2010-11. The overall sales
volume for the year 2010-11 was of the order of 274.68 TMT as compared to
231.12 TMT in the previous year. This represents a volume growth of 19% over
the previous year as compared to a negative growth of 1.8% of the public sector
marketing companies. The estimated growth in volumes of the industry in 2010-11
was around 5%. BPCL’s finished lubricants volume grew by 14% over the previous
year.
On the retail
front, BPCL was able to sustain the sales volumes, although there was an
increase in overall revenues. With an increasing shift of the market from
retail outlets to the Bazaar segment, the focus was on improving customer
service. A series of consumer engagement activities were undertaken. The
offering of value added service through the creation of authorized Hero Honda
service stations under the brand “City Works” was expanded and as at 31st March
2011, there were 186 City Works operating at various locations across the
country. The Bazaar segment remained very competitive with multinationals
having a dominant position. BPCL continued its strategy of identifying high
potential markets and being aggressive in those markets. The stress was on
making the product available at the maximum number of points of sales and has
ensured deeper penetration and improved visibility and availability. The MAK
brand is available across the country at more that 27,000 retail counters, in
addition to small mechanic shops and authorized service stations. In an effor t
to offer innovative and specific products to customers, BPCL has during the
year, launched new products like MAK Zip, MAK Stallion, MAK Platinum, MAK LL3
and MAK TATA PCD.
On the industrial
front, customized offerings and prompt customer service remained the core
elements of the strategy. In a segment characterized by continuous technology
upgradation, technical services and Research and Development play a vital role.
A strong team of technical sales officers attends to the needs of the
Industrial customers, both before and after sales. During the year, BPCL has
expanded the customer base across different segments. The product portfolio on
offer ranges from normal applications like engine oils to Hydraulic, Cutting,
Marine and very specialized products for applications in Defence and Railways.
During the year, products for specific applications like MAK LLPO, a white oil
application and another range of industrial grades for steel mills requirements
were launched. Export sales continue to show a healthy growth of 17%.
The Indian Lubricants market would continue to be an attractive market
for all leading lubes makers. The growth
in the automotive and industrial segments is driving the market.
Technological improvements in the OEM space would encourage the lubes
manufacturers to develop new improved alternate formulations, which would
deliver better performance and enhance the life of the lubricants. While the
intensity of competition is expected to continue, BPCL remains confident of
being successful by meeting the evolving needs of the consumer.
LPG
The business
continues to operate in a volatile environment, characterised by high prices
and an inability to pass on the impact of the same to the domestic LPG
consumers. Although this remains a major financial burden for the company, all
efforts were made to ensure that the needs of genuine consumers were fully met.
During the year, the LPG business crossed several important milestones. The
Bharatgas customer base crossed the 30 million mark with BPCL ending the year
with a domestic customer population of 31 million customers, with 2.8 million
new customers enrolled during the year. Sales in the domestic segment touched a
record volume of 3153 TMT. The distributor network was expanded further and had
reached a level of 2452 by the end of the year, including 133 rural
distributors.
BPCL’s total LPG
sales for 2010-11 stood at 3555 TMT which ensured that BPCL maintained its
market share at 26%. LPG sales volume grew by 9.86% as compared to the sales
volume of 3236 TMT achieved in 2009-10. In the commercial and bulk segment,
where LPG is sold at market determined prices, BPCL registered a growth of
14.6% and 12.3% respectively, in sales volume during the year. Bharat Metal
Cutting Gas (BMCG) recorded a sales volume of 7389 MT, registering growth of
16.9% over 2009-10.BMCG was also sold in the Sultanate of Oman, Kingdom of
Saudi Arabia and the United Arab Emirates. The product was recently launched in
Sri Lanka.
During the year,
sales under the ‘Beyond LPG’ initiative touched a level of Rs.7968.000
Millions. This represents a growth of 14% over the previous year. The ‘Beyond
LPG’ basket now consists of 90 product categories with 126 business partners.
During the year
2010-11, BPCL has strengthened its LPG marketing infrastructure by setting up
additional tankage at 12 locations with an investment of Rs.1930.000 Millions.
LPG bottling plants were upgraded by installing electronic carousels with an
investment of Rs.800.000 Millions. BPCL’s 49 bottling plants with an installed
capacity of 2592 TMT per annum achieved a total LPG filling volume of 3228 TMT,
registering capacity utilization of 125%. Plans have been drawn for further
augmentation of existing facilities and setting up new facilities.
For the first time
in the history of LPG marketing in the country, an exclusive rural LPG
distributorship scheme known as ‘Rajiv Gandhi Rural LPG Vitaran Yojana’ (RGGLV)
was introduced in 2009-10. 133 Distributors have been appointed during 2010-11
under the scheme in 13 states. With these RGGLV Distributors operating in the
market and more of such Distributors getting appointed in the current year,
rural penetration of LPG is expected to increase significantly and will have a
salutary impact on the environment and health of housewives in rural India.
Several new
customer care measures like refill booking options through SMS and IVRS system,
introduced in previous years, are being maintained and their coverage expanded
in the current year. A new initiative for the convenience of working couples in
cities has been introduced, which provides them the option of getting the
cylinder delivered at an appointed time, even during Sundays and holidays. The
‘Preferred Time Delivery Scheme’ has been launched in Mumbai, Kolkata, Delhi,
Chennai, Bengaluru, Hyderabad and Pune, including the outskirts of these cities
like Gurgaon, Noida, Faridabad, Sonepat, Thane, Navi Mumbai, Kalyan and Mira
Bhayander. Under the scheme, customers can choose to receive the refill cylinder
delivery at home on the day and time of their choice, for which a separate
charge is levied on them.
AVIATION
The Indian
Aviation sector continued its recovery from the turbulence experienced in the
recent past. At the same time, some of the major domestic airlines continued to
grapple with issues relating to liquidity, which in turn was impacting the oil
marketing companies. During the year, BPCL recorded a sales volume of 1129 TMT
as compared to 925 TMT achieved in 2009-10. BPCL thus achieved the highest
growth of 22% amongst the public sector oil marketing companies. Consequently,
BPCL’s market share increased to 22.75% from 20.55% in the earlier year. On the
new business front, BPCL was successful in enrolling 10 new airline customers
during the year, besides rolling over contracts with most of the existing
customers. BPCL also added 5 new airports to its network and currently has a
presence in 31 airports in the country. The business has expanded the network
of fuel facilitators by enrolling new parties which can help in improving
BPCL’s share in the international non schedule segment.
The liquidity
constraints faced by some Airlines is putting additional pressure on the
working capital position. However, efforts are on to ensure that a mutually
beneficial solution is worked out, which can safeguard the interests of all the
stakeholders.
A joint venture
company – Delhi Aviation Fuel Facilities Private Limited (DAFFPL) - commenced
its commercial operations from 28th July, 2010 supplying ATF under the ‘open
access’ mode to Airlines at the new Terminal T-3 of the Indira Gandhi
International Airport, New Delhi. The new company has taken over BPCL’s
existing Aviation Fuelling facilities at the airport. Another joint venture
company promoted by BPCL - Bharat Stars Services Private Limited - has been
selected as one of the service providers for into-plane refuelling at the new
Terminal. These developments involved some redeployment of manpower from the
Delhi airport which has been completed.
AWARDS AND RECOGNITION
BPCL secured the
272nd position in the prestigious list of Fortune Global 500 companies in
2010-11, as compared to the 307th position in 2009-10. Apart from BPCL, only
seven other Indian companies have made it to the list.
For the fifth year
in succession, the BPCL brand has featured among the top ten companies, ranking
seventh, according to the valuation of India’s Top 50 Most Valuable Brands
undertaken by M/s. Brand Finance. BPCL’s brand valuation of 2.94 billion USD is
an improvement over the valuation of 2.62 billion USD in the previous year.
BPCL has once
again made a mark in the global energy industry by being ranked 94th globally,
19th in Asia and 5th in Refining and Marketing among Asian
companies, as per the Platts Top 250 Global Energy Companies 2010 list. BPCL
was bestowed with the Oil and Gas Marketing Company of the Year Award, Human
Resources Management Company of the Year Award and Environmental Sustainability
Company of the Year Award for 2009-10 by Petroleum Federation of India
(PetroFed).
Joining the ranks
of India’s Most Powerful Brands chosen by the discerning consumer, BPCL
established itself as a Power Brand 2010-2011. The criteria included trust,
sustainability, image, awareness, effectiveness, perception, aspiration,
loyalty and positioning. BPCL has also been accorded the status of a Superbrand
2010, recognizing its vaunted position in the Indian corporate sector.
In recognition of
its performance as a good corporate citizen, BPCL received the prestigious NDTV
Profit, Business Leadership Award in the CSR category.
BPCL’s corporate
website www.bharatpetroleum.in bagged the first prize in the category ‘Most
user friendly website’ (editors choice) in the India Government 2.0 Awards
2010. BPCL was also awarded two prestigious Communication Awards at the Golden
Jubilee function of the Annual Association of Business Communicators of India
(ABCI) Awards. BPCL received the Silver Award for the In-house Publication,
Petro Plus and the Bronze Award for the Online Web Campaign.
CONTINGENT LIABILITIES :
|
Particulars |
31.03.2010 (Rs. in millions) |
|
(a) In respect
of taxation |
952.600 |
|
(b) Other
Matters : |
|
|
i) Surety bonds executed
on behalf of other oil companies for excise/customs duties for which BPCL has
signed as surety |
1834.500 |
|
ii) Claims
against the Corporation not acknowledged as debts : |
|
|
(a) Excise and
customs matters |
12429.400 |
|
(b) Sales tax
matters |
28800.300 |
|
(c) Others * |
3223.600 |
|
These include
Rs.10141.300 Millions (previous
year Rs.7515.500 Millions) against which the Corporation has a recourse for
recovery and Rs.437.300 Millions (previous
year 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.951.600 Millions (previous
year 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.
|
61.500 |
|
iv) Guarantees given on behalf of Subsidiaries/JV's |
.44087.700 |
UNAUDITED FINANCIAL RESULTS
(PROVISIONAL) FOR THE THREE MONTHS ENDED 30TH JUNE 2011
(Rs. In millions)
|
Particulars |
Three
Months ended
30.06.2011 (Unaudited) |
|
A. Physical
Performance |
|
|
1. Crude
Throughput (Million tonnes) |
5.20 |
|
2. Market Sales
(Million tonnes) |
7.83 |
|
3. Sales Growth
(%) |
5.53 |
|
4. Export Sales
(Million tonnes) |
0.70 |
|
B. Financial
Performance |
|
|
1. Sales /
Income from Operations |
491704.400 |
|
Less: Excise
Duty paid |
30527.500 |
|
(a) Net
Sales/Income from Operations |
461176.900 |
|
(b) Other
Operating Income |
219.200 |
|
2. Expenditure |
|
|
a.
(Increase)/decrease in stock in trade and work in progress |
(6317.200) |
|
b. Consumption
of raw materials |
192444.400 |
|
c. Purchase of
traded goods |
276334.100 |
|
d. Employees
cost |
6574.300 |
|
e. Depreciation |
4900.700 |
|
f. Other
expenditure |
14002.700 |
|
g. Total |
487939.000 |
|
3. Profit/(Loss)
from Operations before Other Income, Interest and Exceptional Items (1-2) |
(26542.900) |
|
4. Other Income |
4273.200 |
|
5. Profit/(Loss)
before Interest and Exceptional Items (3+4) |
(22269.700) |
|
6. Interest |
3349.200 |
|
7. Profit/(Loss)
after Interest but before Exceptional Items (5-6) |
(25618.900) |
|
8. Exceptional
Items |
0.000 |
|
9. Profit/(Loss)
from Ordinary Activities before tax (7+8) |
(25618.900) |
|
10. Tax expense |
0.000 |
|
11. Net
Profit/(Loss) from Ordinary Activities after tax (9-10) |
(25618.900) |
|
12.
Extraordinary Item (net of tax expense) |
0.000 |
|
13. Net Profit/(Loss)
for the period (11-12) |
(25618.900) |
|
14. Paid-up
equity share capital (face value of ` 10 per share) |
3615.400 |
|
15. Reserve
excluding Revaluation Reserves as per balance sheet |
0.000 |
|
16. Earnings Per
Share (EPS) |
|
|
(a) Basic and
diluted EPS before Extraordinary items – Rs. |
(70.86) |
|
(b) Basic and
diluted EPS after Extraordinary items – Rs. |
(70.86) |
|
17. Public
shareholding |
|
|
- Number of
shares * |
162942064 |
|
- 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 |
198600060 |
|
- 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% |
Notes :
1. The market sales during the quarter ended 30th June 2011 was higher at
7.83 MMT when compared to 7.42 MMT achieved during the corresponding period of
the previous year. Increase is mainly in MS-Retail (4.87%), HSD-Retail (9.72%),
ATF (14.32%) and LPG (11.11%) partly offset by decrease in Furnace Oil
(-38.75%) and Naphtha (-16.23%).
2. The Average Gross Refining Margin (GRM) during the quarter ended 30th
June 2011 is USD 3.02 per barrel (April-June 2010 USD 3.57 per barrel).
3. As advised by the Ministry of Petroleum and Natural Gas, the Corporation
has accounted compensation towards sharing of under-recoveries on sale of
sensitive petroleum products as follows:
(a) Rs.34090.500
Millions (April – June 2010 Rs.15495.500 Millions) discount on Crude oil, SKO and
LPG purchased from ONGC/GAIL. Discount on crude oil has been adjusted against
purchase of raw materials and on SKO/LPG against purchase of traded goods.
(b) Rs.35244.600
Millions (April – June 2010 NIL) subsidy from Government of India which has
been accounted as income.
4. Employees cost for the quarter ended 30th June 2011, includes RS.930.000
Millions on account of estimated liability for Voluntary Retirement Scheme for
its employees.
5. Depreciation includes Rs.2004.700 Millions for the current quarter as
compared to Rs.1563.500 Millions during the period April-June 2010 on account
of LPG cylinders depreciated at 100%.
6. Provision for tax expense has not been considered due to uncertainty in estimation
of profit, pending finalisation of compensation mechanism for under-recoveries
on sale of sensitive petroleum products.
7. Figures relating to corresponding periods of the previous year have been
regrouped wherever necessary.
8. During the current quarter, four complaints were received which were
resolved to the satisfaction of the complainants. There are no complaints
pending as on 30th June 2011.
9. The Auditors have completed limited review of the financial results of
the Corporation for the quarter ended 30th June 2011. Further, the Accounts
were reviewed and approved by the Audit Committee on 12th August 2011 before
submission to Board.
The above
unaudited results of Bharat Petroleum Corporation Limited for the quarter ended
30th June 2011 have been approved by the Board at its meeting held on 12th
August 2011.
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
BUSINESS DESCRIPTION
Bharat Petroleum Corporation Limited (BPCL) is engaged in
the petroleum industry in India. During the fiscal year ended March 31, 2010 (fiscal
2010), the aggregate refinery throughput at BPCL’s Refineries at Mumbai and
Kochi and that of its subsidiary company, Numaligarh Refinery Limited (NRL) was
23.03 million metric tons (MMT). The Company is engaged in downstream petroleum
sector, which consists of refining and marketing activities. BPCL holds 61.65%
interest in NRL as on March 31, 2010. Bharat PetroResources Limited (BPRL) is a
100% subsidiary of the Company. The exploration and production activities of
BPRL and its subsidiary companies extend to 26 exploration blocks where they
hold participating interests (PI). Of this, nine blocks are in India and 17 are
abroad. Besides India, BPRL has blocks in Australia, Brazil, East Timor,
Indonesia, Mozambique and the United Kingdom. For the fiscal year ended 31
March 2010, Bharat Petroleum Corporation Limited's revenues decreased 9% to
RS1.262T. Net income totaled RS16.32B, up from RS6.34B. Revenues reflect a
decrease in income from Downstream Petroleum segment. Net income benefited from
an increase in packages consumed, an increase in power and fuel, an increase in
employees remuneration and other benefits and increased depreciation and
amortization.
MORE BUSINESS DESCRIPTION
Crude processing and production of aviation fuel, kerosene, diesel oil, bitumen, automotive lubricants and liquefied petroleum gas (LPG).
Bharat Petroleum Corporation Limited (India) is a state owned oil company involved in the refining, distribution, manufacture and marketing of petrochemicals, solvents, aircraft fuel and speciality lubricants. The company has 4,854 petrol stations, 960 kerosene dealers and 1,828 LPG distributors throughout India. BPCL supplies fuel directly to hundreds of industries, and several international and domestic airlines.
BOARD OF DIRECTORS
Shri. Samir Kumar
Barua (Part-Time Non-Executive Independent Director)
Professor Shri. Samir Kumar Barua is Part-Time Non-Executive Independent Director. He is an M.Tech in Industrial Engineering and Operations Research and holds a Doctorate in Management. He joined the faculty of Indian Institute of Management, Ahmedabad in 1980. His specific areas of interest include Capital Market, International Finance, Operations Research, Decision Support Systems, Management Information and Control System and Corporate Financial Management. He is a visiting professor to academic institutions in the USA, Netherlands, Singapore and Cyprus. He has authored a number of books and case studies in Management. He is a consultant to many public and private organisations in the manufacturing, banking and financial services sectors. He has handled various assignments as advisor to the Reserve Bank of India, FICCI, National Stock Exchanges of India Limited and Bombay Stock Exchange Limited In addition to BPCL, he holds the Directorship in Companies i.e. Coal India Limited, Torrent Power Limited, Securities Trading Corporation of India Limited and IOT Infrastructure and Energy Services Limited Prof. S.K.Barua was appointed as Additional Director w.e.f. 20th May 2008, by the Board of Directors. The Shareholders have appointed him at the Annual General Meeting held on 22.9.2008. He is liable to retire by rotation at the ensuing AGM and being eligible, offers himself for re-appointment.
Shri. B.K. Datta
(Director - Refineries, Additional Director)
Shri. B.K. Datta is Director - Refineries, Additional Director. He is basically a Refiner with a background in Chemical Engineering, joined BPCL in August 1979 and has had the distinction of holding key positions in various functions. As Head of the Mumbai Refinery, he was responsible for the entire Refinery Operations, Technology and Projects, which included the commissioning of Refinery Modernization expansion. He also spearheaded commissioning of the DHDS modification units, steering BPCL to being the first in the country to implement BS II fuel standards. He was also associated with Oil Industry Safety Directorate and Centre for High Technology and has audited 8 Refineries as the Convenor of the team. While heading Integrated Information Systems, he played a pivotal role in establishing the Integrated Data Centre with facilities for disaster recovery and designing the SAP upgrade to the Enterprise Version. In addition to a short stint in International Trade and Supplies, he has also worked as Section Head of MTBE/Butamer of MTBE, Malaysia, Petronas, including its commissioning. Till recently, he was heading the Supply Chain Optimization function since its inception, with a strategic intent to build dynamic competitiveness in the Business Chain with a thrust on ‘Enterprise First.’ Shri B. K. Datta was appointed as Additional Director w.e.f. 1.8.2011, by the Board of Directors. Being an Additional Director, he holds office up to the date of the Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956, from a Member proposing his name as Director of the Company.
Shri. K. K. Gupta
(is Director - Marketing, Whole-time Director)
Shri. K. K. Gupta is Director - Marketing, Whole-time Director. He is a Mechanical engineer, Shri Gupta has had many training stints abroad including the Cambridge Advanced Management Program in UK, the Strategic Leadership program from Colorado, USA and program for senior executives in the Oil and Gas in Texas, USA. He joined BPCL in 1979 and has had the distinction of heading three Business Units viz. Lubes, LPG and Retail. As In-charge of Logistics, Shri Gupta played an important role in planning and consolidating logistics infrastructure for the company besides sourcing and placement of products and tying up product exchange agreements for the company. Shri Gupta played a role in Bharat Gas being accorded Superbrand status. Besides overseeing supplies of LPG to the 27 million households through a robust BPCL network of Distributors, he nurtured the “Beyond LPG” initiative. The brand made its first forays into the international market, establishing its presence in Sri Lanka, Bangladesh and Nepal. As head of the Retail business, Shri Gupta spearheaded the program for Retail Outlet automation and introduced the ‘Automation For Sure’ concept at all high selling outlets. The Vehicle Tracking System (VTS) to monitor movement of all tankers transporting fuel was implemented with excellent results. Customer Service at Retail Outlets was considerably enhanced through a structured enrollment plan involving close interface between Dealers, their staff and company officials. In addition to BPCL, he is a Director on the Boards of Indraprastha Gas Limited, Numaligarh Refinery Limited, Sabarmati Gas Limited etc. Shri K. K. Gupta was appointed as Additional Director w.e.f. 31.3.2011, by the Board of Directors. Being an Additional Director, he holds office up to the date of the Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956, from a Member proposing his name as Director of the Company.
Shri. Sudhir K. Joshi
(Whole-Time Director)
Shri. Sudhir K. Joshi is Whole-Time Director. He is a member of the Institute of Chartered Accountants of India and M.B.A. from the University of Hull, United Kingdom. Prior to his appointment as Director (F), he was responsible for the overall fund management, risk management, corporate accounts and budgeting. He was also closely associated with key initiatives undertaken by the Company including implementation of SAP and drawing up of the Corporate Credit Policy and Commodity Risk Management Policy. Besides, Shri Joshi was closely associated with key initiatives impacting the Oil Industry in India. He was a member of the Study Group formed for the purpose of preparing a Long Term Perspective Plan for the Oil Industry in India which had come out with the report titled ‘Hydrocarbon Perspective:2010’ Meeting the Challenges. He was awarded the ‘Business Today CFO’ under the category “CFO in a PSU” for the year 2008-09. In addition to BPCL, he also holds the position of Director in Numaligarh Refinery Limited, Bharat Oman Refineries Limited, Bharat PetroResources Limited, Bharat PetroResources JPDA Limited and Bharat Stars Services Pvt. Limited Shri. S.K.Joshi was appointed as Director (Finance) on March 8, 2006. He is liable to retire by rotation at the ensuing AGM and being eligible, offers himself for re-appointment.
Dr. Seetharaman Mohan
(Director - Human Resources, Whole-Time Director)
Dr. Seetharaman Mohan is Director - Human Resources, Whole-Time Director of Bharat Petroleum Corporation Limited Dr. S. Mohan graduated in Mechanical Engineering from the Birla Institute of Technology and Science, Pilani, in 1973 and completed his MBA from the Indian Institute of Management, Bangalore in 1977. He has a Ph.D. in Managerial Competencies. He worked with Tata Engineering and Locomotive Company. (TELCO) and Bharat Heavy Electricals Limited (BHEL) before joining BPCL in 1983. During his career of 27 years in Bharat Petroleum, he has held key positions in Engineering and Projects, Personnel, Supply and Distribution, Sales, LPG Business and Human Resources Development, till his appointment to the Board. In addition to BPCL, he is Chairman on the Boards of Petronet India Limited and Petronet CCK Limited and Director on the Boards of Bharat Oman Refineries Limited and Bharat PetroResources Limited He is a member of the Executive Committee of Indian Merchants Chamber and is also a member of the Executive Committee of Bombay Management Association, where he was the President during 2008-09. He has co-authored a book ‘The Indian CEO-A Portrait of Excellence’ which was released by the Hon’ble Prime Minister, Dr. Manmohan Singh.
Shri. Alkesh Kumar
Sharma (Non-Executive Director)
Shri. Alkesh Kumar Sharma is Part-time Non-Executive Director. He is an Secretary (Investment Promotion), Government of Kerala, is a senior IAS officer. In addition to being on the Board of BPCL, he also holds Directorship in other companies including Kerala State Industrial Development Corporation Limited, Geojit BNP Paribas Financial Services Limited, Brahmos Aerospace Thiruvananthapuram Limited, Infrastructures Kerala Limited, Indian Rare Earths Limited Kerala Minerals and Metals Limited, etc.
Dr. Seetharaman Mohan
(Director - Human Resources, Whole-Time Director)
Dr. Seetharaman Mohan is Director - Human Resources, Whole-Time Director.Dr. S. Mohan graduated in Mechanical Engineering from the Birla Institute of Technology and Science, Pilani, in 1973 and completed his MBA from the Indian Institute of Management, Bangalore in 1977. He has a Ph.D. in Managerial Competencies. He worked with Tata Engineering and Locomotive Company (TELCO) and Bharat Heavy Electricals Limited (BHEL) before joining BPCL in 1983. During his career of 27 years in Bharat Petroleum, he has held key positions in Engineering and Projects, Personnel, Supply and Distribution, Sales, LPG Business and Human Resources Development, till his appointment to the Board. In addition to BPCL, he is Chairman on the Boards of Petronet India Limited and Petronet CCK Limited and Director on the Boards of Bharat Oman Refineries Limited and Bharat PetroResources Limited He is a member of the Executive Committee of Indian Merchants’ Chamber and is also a member of the Executive Committee of Bombay Management Association, where he was the President during 2008-09. He has co-authored a book ‘The Indian CEO-A Portrait of Excellence’which was released by the Hon’ble Prime Minister, Dr. Manmohan Singh.
Shri. K. K. Gupta
(Director - Marketing, Whole-time Director)
Shri. K. K. Gupta is Director - Marketing, Whole-time Director of Bharat Petroleum Corp Limited He is a Mechanical engineer, Shri Gupta has had many training stints abroad including the Cambridge Advanced Management Program in UK, the Strategic Leadership program from Colorado, USA and program for senior executives in the Oil and Gas in Texas, USA. He joined BPCL in 1979 and has had the distinction of heading three Business Units viz. Lubes, LPG and Retail. As In-charge of Logistics, Shri Gupta played an important role in planning and consolidating logistics infrastructure for the company besides sourcing and placement of products and tying up product exchange agreements for the company. Shri Gupta played a role in Bharat Gas being accorded Superbrand status. Besides overseeing supplies of LPG to the 27 million households through a robust BPCL network of Distributors, he nurtured the “Beyond LPG” initiative. The brand made its first forays into the international market, establishing its presence in Sri Lanka, Bangladesh and Nepal. As head of the Retail business, Shri Gupta spearheaded the program for Retail Outlet automation and introduced the “Automation For Sure” concept at all high selling outlets. The Vehicle Tracking System (VTS) to monitor movement of all tankers transporting fuel was implemented with excellent results. Customer Service at Retail Outlets was considerably enhanced through a structured enrollment plan involving close interface between Dealers, their staff and company officials. In addition to BPCL, he is a Director on the Boards of Indraprastha Gas Limited, Numaligarh Refinery Limited, Sabarmati Gas Limited etc. Shri K. K. Gupta was appointed as Additional Director w.e.f. 31.3.2011, by the Board of Directors. Being an Additional Director, he holds office up to the date of the Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956, from a Member proposing his name as Director of the Company.
PRESS RELEASE
ANALYSIS
- INDIAN PETROL PRICES LIKELY TO RISE THIS FORTNIGHT
NEW
DELHI, Nov 4Asia Pulse - India's petrol prices are likely to be increased by Rs
1.82(US$0.04) a litre this fortnight as a fall in rupee has increased the cost
of imported crude oil.
This
will be the second hike in petrol prices in as many months.
Though
the pricing of petrol was freed from government controls in June last year,
state - owned oil firms 'informally' take directions from the Oil Ministry. It
remains to be seen if the government will concede to the demand of oil
companies just before the winter session of Parliament.
State-owned
oil companies Indian Oil, Hindustan Petroleum and Bharat Petroleum last hiked
petrol prices by Rs 3.14 a litre on September 16 when the rupee was ruling at
about 48 to a US dollar. The local currency has depreciated further and is now
trading at over 49 against the American unit.
"From
today, there are some losses on petrol. To cover them, we may have to increase
prices," HPCL Director (Finance) B Mukherjee told reporters here.
He
said crude oil is hovering at around US$108 per barrel in international
markets. At current exchange rate, petrol price of Rs 66.84 per litre in Delhi
corresponds to about US$102 per barrel equivalent of crude oil price.
Mukherjee
did not say when petrol price would be hiked. "We are in
consultations," he said without elaborating.
The
loss on petrol at present is Rs 1.50 per litre and after including local
levies, the desired increase in retail prices is Rs 1.82 per litre.
Petrol price hike:
An unending burden
KOCHI,
Nov. 4 -- With yet another increase in the petrol price, the public feels that unless
the Central Government takes back the control of fuel pricing into its hands,
it is going to be an unending burden on them.
"The
hike in prices has been going on consistently for the past few months. This
cannot continue. We demand that the Central Government take over the fixation
of the price from the hands of the oil companies" said Xavio Mathew,
Kerala Chamber of Commerce and Industry (KCCI) secretary.
"A
major part of the public money is spent to satisfy the oil companies' private
needs such as to meet the expense of advertisements and the salaries of its
employees. The oil companies claim that the price hike was necessary. The
government has to realise that the situation went out of control once they
handed over the price fixing power to the oil companies. Now, the Centre is
just a mute spectator to the people's sufferings," Xavio added.
The
public also worry that the current hike will be an additional burden on their
household expenses. "Whenever petrol price was hiked, our household
expenses also increased," said Edappally Residents' Association member K
Francis. Motor vehicle operators feel that they are the worst affected in the
scenario. "This is the fifth time that the fuel price has been hiked since
December. With these frequent hikes, many motor vehicle owners and drivers will
be forced out of work," said Nawas K S, a bus owner.
Meanwhile,
it has been alleged that customers were left in a lurch at petrol pumps as
IOC's competitors, Bharat Petroleum Corporation Limited and Hindustan Petroleum
Corporation Limited, expecting an increase in their petrol charges, refused to
provide petrol to the people late on Thursday.
Petrol prices turn
costlier by Rs 1.80/litre, tenth hike since June '10
India, Nov. 04 -- The government owned oil marketing companies (OMCs) have increased petrol prices by Rs 1.80 per litre to wipe off their losses on the decontrolled fuel. This is the 4th hike in the current financial year, because of recent deprecation in rupee, which increased the cost of imported crude oil. Prices at Indian Oil outlets, country's largest oil marketer has already increased, whereas other two OMCs i.e. Bharat Petroleum and Hindustan Petroleum will increase prices from today midnight. After the hike, petrol will cost around Rs 68.64 per litre in Delhi, Rs.73.81 in Mumbai, Rs.73.15 Kolkata and Rs.72.73 in Chennai. The hike has been implemented to pass on the impact of a depreciating rupee that has resulted in a higher cost. The last time petrol price was hiked was on September 15, when companies raised prices by a steep Rs 3.14 per litre.'We were losing around Rs 1.50 litre. The increase of up to Rs 1.91 has been done after factoring the local levies. The increase takes care of the entire loss on petrol,' an Indian Oil official said.In September, rupee has depreciated by 3.34%, which pushed OMCs to go for another hike in petrol price. From the time of deregulation of petrol prices 17 months ago, petrol prices have increased by 43% to Rs 68.64 per litre in Delhi. In the same period of time, the diesel prices, which is still under government control has increased by only 8.37% to Rs 41.29 per liter on national capital. However, the petrol price were decontrolled in line with the Kirit Parikh panel report, the government is yet to take decision on its suggestion of decontrolling diesel prices. Presently, the OMCs are losing around Rs 8.58 on a litre of diesel, Rs 25.66 on per litre kerosene and Rs 260.50 on a domestic LPG cylinder.
Gujarat State
Petronet Limited's Consortium With Bharat Petroleum Corporation Limited And
Others Recieves Letter of Authorization From Petroleum and Natural Gas
Regulatory Board
Gujarat State Petronet Ltd (GSPL) announced that GSPL led consortium has been awarded the Letters of Authorisation dated July 07, 2011 by Petroleum and Natural Gas Regulatory Board for developing three Cross Country Natural Gas Transmission Pipelines, namely: Mallavaram - Bhilwara (1585 Kms) pipeline, Mehsana - Bhatinda (1670 Kms) pipeline and Bhatinda-Jammu-Srinagar (740 Kms) pipeline. Earlier GSPL (with 52% stake) in consortium with IOCL (26%), Bharat Petroleum Corporation Limited (11%) and HPCL (11%) had participated in the aforesaid three bids where in the bid submitted by the said consortium has emerged as the most favorable bid in all the three Pipeline Projects. The route map of these three Natural Gas Transmission Pipelines cover the states like Andhra Pradesh, Madhya Pradesh, Maharashtra, Haryana, Punjab, Rajasthan and Jammu on its network for transmission of gas to various districts and area of these states of India. The total Investment in the Project shall he approx INR12500 Crores (INR125 billion). The said three projects shall be required to be completed within a period of 36 months from the date of award of the letter of authorization to GSPL led Consortium.
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.49.78 |
|
|
1 |
Rs.80.11 |
|
Euro |
1 |
Rs.68.82 |
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.