MIRA INFORM REPORT

 

 

Report Date :

11.08.2012

 

IDENTIFICATION DETAILS

 

Name :

HINDUSTAN PETROLEUM CORPORATION LIMITED

 

 

Registered Office :

Petroleum House, 17, Jamshedji Tata Road, Churchgate, Mumbai – 400020, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

05.07.1952

 

 

Com. Reg. No.:

11-8858

 

 

Capital Investment / Paid-up Capital :

Rs.3390.100 Millions

 

 

CIN No.:

[Company Identification No.]

L23201MH1952GOI008858

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUM07045D

 

 

PAN No.:

[Permanent Account No.]

AAACH11118B

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturing and Marketing of Petroleum Fuel and Lube Products, Lubricating Oils, Textile Auxiliaries, Hydraulic Brake Fluid, Insecticides and Greases.

 

 

No. of Employees :

11248 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (78)

 

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 502000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a fortune 500 company, owned by the government of India. It is a well established and a reputed company having fine track. Financial position of the company is sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

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

 

NOTES:

 

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

AAA-

Rating Explanation

Having highest degree of safety regarding timely servicing of financial obligation it carry lowest credit risk.

Date

October, 2011

 

 

Rating Agency Name

CRISIL

Rating

A1+

Rating Explanation

Having very strong degree of safety regarding timely payment of financial obligation it carry lowest credit risk.

Date

October, 2011

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

LOCATIONS

 

Registered/ Head Office/ Factory :

Petroleum House, 17 Jamshedji Tata Road, Churchgate,  Mumbai – 400020, Maharashtra, India

Tel. No.:

91-22-22026151/ 22863900

Fax No.:

91-22-22872992/ 22841573/ 22872992

E-Mail :

corphqo@hpcl.co.in

nrnarayanan@hpcl.co.in

shrikantb@hpcl.co.in

Website :

http://www.hindpetro.com

http://www.hindustanpetroleum.com

 

 

Marketing Office :

Hindustan Bhavan, 8, Shoorji Vallabhdas Marg, P. B. No. 155, Ballard Estate, Mumbai – 400038, Maharashtra, India

Tel. No.:

91-22-22618031

Fax No.:

91-22-22611822

 

 

Aviation Office :

2nd  Floor, Gresham Assurance Building, Sir P.M. Road, Po Box N 198, Fort, Mumbai – 400001, Maharashtra, India

 

 

Refinery :

Mumbai

B.D. Patil Marg, Chembur, Mumbai – 400074, Maharashtra, India

 

Vishakhapatnam

Post Box No. 15, Vishakhapatnam – 530 001, Andhra Pradesh, India

 

 

Zonal Offices :

East Zone

6, Church Lane, Post Box No. 146, Kolkata – 700001, West Bengal, India

 

North Zone

6th and 7th Floor, Core 1 and 2, North Tower, Scope Minar, Laxmi Nagar, Delhi – 110092, India

 

North Central Retail Zone

C/o. Lucknow Retail R.O.4, Shanajaf Road, 1, Nehru Enclave, Besides Vishwas Khand, Gomti Nagar, Lucknow – 226001, Uttar Pradesh, India

 

North West Retail Zone

C/o. Auto Care Centre, Judges Bunglow Road, Bodakdev, Near Satyagraha Chavani, Ahmedabad – 380054, Gujarat, India

 

South Zone

Thalamuthu Natarajan Building, 4th Floor, 8, Gandhi Irwin Road, Post Box No.3045, Egmore, Chennai – 600008, Tamilnadu, India

 

South Central Retail Zone

111, Chandralok Complex, First Floor, Sarojini Devi Road, Secunderabad – 500003, Andhra Pradesh, India

 

West Zone

R and C Building, Sir J.J. Road, Byculla, Mumbai – 400008, Maharashtra, India

 

 

DIRECTORS

 

(AS ON 31.03.2011)

 

Whole Time Directors :

 

 

Name :

Mr. S. Roy Choudhury

Designation :

Chairman and Managing Director (From 01.08.2010)

 

 

Name :

Dr. V. Vizia Saradhi

Designation :

Director-Human Resources

Date of Birth/Age :

19.07.1952

Qualification :

B.Sc., Post Graduate – Industrial Relations and Personnel Management

Date of Appointment :

03.08.2007

Other Directorship : 

·         CREDA – HPCL Biofuel Limited

·         Bhagyanagar Gas Limited

·         Aavantika Gas Limited

 

 

Name :

Mr. B. Mukherjee

Designation :

Director – Finance

 

 

Name :

Mr. K. Murali

Designation :

Director – Refineries

Date of Birth/Age :

02.06.1953

Qualification :

B. Tech (Chemical Engineering)

Date of Appointment :

02.02.2009

Other Directorship : 

·         HPCL – MITTAL Energy Limited

·         Mangalore Refinery and Petrochemicals Limited

·         CREDA-HPCL Biofuel Limited

·         HPCL Biofuels Limited

 

 

Name :

Mrs. Nishi Vasudeva

Designation :

Director – Marketing, (From 04.07.2011)

Date of Birth/Age :

30.03.1956

Qualification :

B.A., PGDBM (IIM Kolkata)

Other Directorship : 

SA LPG Company Private Limited

 

 

Name :

Mr. Arun Balakrishnan

Designation :

Chairman and Managing Director (Till 31.07.2010)

 

 

Ex-Officio Part-Time Directors :

 

 

Name :

Mr. P.K. Sinha

Designation :

Non-Executive Director

 

 

Name :

Mr. L.N. Gupta

Designation :

Director

 

 

Non-Official Part-time Directors :  

 

 

Name :

Dr. Gitesh K. Shah

Designation :

Non-Executive Independent Director

 

 

Name :

Mr. Anil Razdan

Designation :

Non-Executive Independent Director  (From 10.01.2011)

Date of Birth/Age :

07.12.1948

Qualification :

IAS

Other Directorship : 

·         Bharat Electronics Limited

·         ERA Infra Engineering Limited

·         Green Vally Engg. Venture (Private) Limited

·         Era Khandwa Power Limited

 

 

Name :

Mr. S.K. Roongta

Designation :

Non-Executive Independent Director (From 10.01.2011)

Date of Birth/Age :

09.05.1950

Qualification :

B.E. (Electrical) PGDBM (IIFT)

Other Directorship : 

·         The Shipping Corporation of India Limited

·         Neyveli Lignite Corporation Limited

·         Jubilant Industries Limited

·         ACC Limited

·         Vedanta Aluminium Limited

 

 

Name :

Mr. P.V. Rajaraman

Designation :

Director (Till 19.07.2010)

 

 

Name :

Prof. Prakash G. Apte

Designation :

Director (Till 19.07.2010)

 

 

 

KEY EXECUTIVES

 

Senior Management Team :

 

Name :

Mr. Suneet Mohan Misra

Designation :

Chief Vigilance Officer

 

 

Name :

Mr. S.V. Sahni

Designation :

ED - Central Engineering (Refineries)

 

 

Name :

Mr. D.K. Deshpande

Designation :

ED – SHE Corporate and Refinery Advisor to C and MD

 

 

Name :

Mr. K.S.R Prasad

Designation :

ED – Joint Ventures

 

 

Name :

Mr. A. B. Thosar

Designation :

ED – LPG

 

 

Name :

Mr. R. Sudhakara Rao

Designation :

ED – Internal Audit

 

 

Name :

Mr. S.P. Gupta

Designation :

ED*

 

 

Name :

Mr. O P Pradhan

Designation :

ED – PCPIR Project

 

 

Name :

Mr. P A B Raju

Designation :

ED – Visakh Refinery

 

 

Name :

Mr. K.V. Rao

Designation :

ED – Corporate Finance

 

 

Name :

Mr. M.S. Damle

Designation :

ED – Retail

 

 

Name :

Mr. Y.K. Gawali

Designation :

ED – O and D

 

 

Name :

Mr. B. K. Namdeo

Designation :

ED – IT and S

 

 

Name :

Mr. S.C. Mehta

Designation :

ED – Mumbai Refinery

 

 

Name :

Mr. Rajan K. Pillai

Designation :

ED *

 

 

Name :

Mr. S. Jeyakrishnan

Designation :

ED – Business Development and Corporate Affairs

 

 

Name :

Mr. S.P. Singh

Designation :

ED – Exploration and Production

 

 

Name :

Mr. G. Sriganesh

Designation :

ED – Refineries (R and D Corporate)

 

 

Name :

Mr. H. Kumar

Designation :

ED – Corp. Strategy and Planning

 

 

Name :

Mr. Anil Pande

Designation :

ED – Projects and Pipelines

 

 

Name :

Mr. S.T. Sathiavageeswaran

Designation :

ED – Information Systems

 

 

Name :

Mr. Ajit Singh

Designation :

ED – Co-ordination, DCO

 

 

Name :

Mr. Rakesh Misri

Designation :

ED – Direct Sales

 

 

Name :

Mr. Pushp Joshi

Designation :

ED – HRD

 

 

Name :

Mr. Sandeep Joseph

Designation :

GM – Industrial Relations

 

 

Name :

Mr. D.M. Sable

Designation :

GM – SHE (Marketing)

 

 

Name :

Mr. P. Rajendran

Designation :

GM – Marketing Projects

 

 

Name :

Mr. R. Ganesan

Designation :

GM – Finance, MR

 

 

Name :

Mr. Rakesh Kumar

Designation :

GM – HR (Comp. Management)

 

 

Name :

Mr. D.K. Hota

Designation :

GM*

 

 

Name :

Mr. K. Srinivasan

Designation :

GM – SHE (Refineries)

 

 

Name :

Mr. A. V. Sarma

Designation :

GM – Natural Gas

 

 

Name :

Mr. P.P. Nadkarni

Designation :

GM *

 

 

Name :

Mr. R. Radhakrishnan

Designation :

GM – Aviation

 

 

Name :

Mr. H.R. Wate

Designation :

GM – Retail

 

 

Name :

Mr. M.K. Surana

Designation :

GM – Projects, VR

 

 

Name :

Mr. V.V.R. Narasimhan

Designation :

GM – Operations, VR

 

 

Name :

Mr. V.K. Jain

Designation :

GM – Tax

 

 

Name :

Ms. Sonal Desai

Designation :

GM – Finance (Risk Management)

 

 

Name :

Mr. J. Ramaswamy

Designation :

GM – Finance (Marketing)

 

 

Name :

Mr. M. Naveen Kumar

Designation :

GM – Finance, VR

 

 

Name :

Mr. V.V. Nagada

Designation :

GM – Projects, MR

 

 

Name :

Mr. N.S. Jagannadharao

Designation :

GM – Maintenance, MR

 

 

Name :

Mr. Y.K. Rao

Designation :

GM – Materials, VR

 

 

Name :

Mr. Ramanuj Roy

Designation :

GM – Commercial, LPG

 

 

Name :

Mr. S. Babu Ganesan

Designation :

GM – Engineering and Projects

 

 

Name :

Mr. A.K. Bhan

Designation :

GM – Retail, SZ

 

 

Name :

Ms. Geeta M. Jerajani

Designation :

GM – Finance, CP and S

 

 

Name :

Mr. H.C. Mehta

Designation :

GM – O and D

 

 

Name :

Mr. R. Kesavan

Designation :

GM – Finance, CEC

 

 

Name :

Mr. B. Ravindran

Designation :

GM – Commercial, Retail

 

 

Name :

Mr. M. Rambabu

Designation :

GM – Materials

 

 

Name :

Mr. MVR Krishna Swamy

Designation :

GM*

 

 

Name :

Mr. S.P. Nair

Designation :

GM – Legal

 

 

Name :

Mr. L.M. Motwani

Designation :

GM – PR and CC

 

 

Name :

Mr. U.K. Vishwekar

Designation :

GM – Shipping

 

 

Name :

Mr. Anil Khurana

Designation :

GM – Retail, NZ

 

 

Name :

Mr. G S V S S Sarma

Designation :

GM – Technical, VR

 

 

Name :

Mr. S.P. Gaikwad

Designation :

GM – CEC (Maharashtra Refinery)

 

 

Name :

Mr. Rajnish Mehta

Designation :

GM – Retail, WZ

 

 

Name :

Mr. J.S. Prasad

Designation :

GM – Pipelines

 

 

Name :

Mr. N.S. Mane

Designation :

GM – HR, MR

 

 

Name :

Mr. V.S. Shenoy

Designation :

GM – Technical, MR

 

 

Name :

Mr. S. Paul

Designation :

GM – Commercial, DS

 

 

Name :

Mr. M D Pawde

Designation :

GM – Operations, MR

 

 

Name :

Mr. N.V. Choudhury

Designation :

GM – Process Technologies, Corporate R and D

 

 

Name :

Mr. Shrikant M. Bhosekar

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 30.06.2012)

 

Category of Shareholders

No. of Shares

Percentage of Holding

 

 

 

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Central Government / State Government(s)

173,076,750

51.11

Sub Total

173,076,750

51.11

 

 

 

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

173,076,750

51.11

 

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

47,488,684

14.02

Financial Institutions / Banks

832,530

0.25

Insurance Companies

44,725,273

13.21

Foreign Institutional Investors

24,929,920

7.36

Sub Total

117,976,407

34.84

 

 

 

(2) Non-Institutions

 

 

Bodies Corporate

29,103,534

8.59

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 Million

15,443,581

4.56

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

1,883,221

0.56

 

 

 

Any Others (Specify)

1,143,757

0.34

Directors & their Relatives & Friends

675

-

Hindu Undivided Families

188,358

0.06

Trust & Foundation

28,449

0.01

Non Resident Indians

926,230

0.27

Any Other

45

-

Sub Total

47,574,093

14.05

 

 

 

Total Public shareholding (B)

165,550,500

48.89

 

 

 

Total (A)+(B)

338,627,250

100.00

 

 

 

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

 

 

 

Total (A)+(B)+(C)

338,627,250

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Marketing of Petroleum Fuel and Lube Products, Lubricating Oils, Textile Auxiliaries, Hydraulic Brake Fluid, Insecticides and Greases.

 

 

Products :

Item Code No. (ITC Code)

2710

Product Description

Bulk Petroleum Products

 

 

Item Code No. (ITC Code)

271000.41/61

Product Description

Lubricants

 

 

Item Code No. (ITC Code)

290122.00

Product Description

Propylene

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Licensed capacity and Installed capacity at year end in Metric Tonnes per annum

 

Particulars

Licensed Capacity

Installed Capacity

 

(a) Petroleum fuel and lube products

14800000

14800000

(b) Lubricating Oils, Greases and Textile Auxiliaries *

NA

319779

(c) Hydraulic Brake Fluid and Insecticides

NA

4062

 

* Product manufacturing facilities are interchangeable

 

Production in Metric Tonnes:

 

Particulars

Actual Production

(a) Petroleum fuel and lube products

 

i. Bulk Petroluem Products

13403485

ii. Lubricating Oil Base Stocks(including Transformer Oil Base Stocks)

300239

iii. Carbon Black Feed Stock

30466

iv. Axle Oil

1

v. Rubber Processing Oil

69141

(b) Lubricating Oils

297805

(c) Textile Auxiliaries

45

(d) Insecticides

88

(e) Greases

2149

 

 

GENERAL INFORMATION

 

No. of Employees :

11248 (Approximately)

 

 

Bankers :

·         State Bank of India, Mumbai, Maharashtra, India

·         Union Bank of India, Mumbai, Maharashtra, India

·         Punjab National Bank, Mumbai, Maharashtra, India

·         Bank of Baroda, Mumbai, Maharashtra, India

·         Standard Chartered Bank, Mumbai, Maharashtra, India

·         Bank of India, Mumbai, Maharashtra, India

·         Citibank N.A., Mumbai, Maharashtra, India

·         Corporation Bank, Mumbai, Maharashtra, India

·         ICICI Bank

·         HDFC Bank

 

 

Facilities :

Secured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

 

 

 

Collateral Borrowing and Lending Obligation (CBLO)

(Secured by Pledge of Oil Bonds)

(Due for repayment within one year : Rs.9900.000 millions; 200-10 Rs. 2500.000 millions)

9900.000

2500.000

Overdrafts from Banks

(Secured by hypothecation of Stock-in-Trade)

6676.800

1258.800

7.35% Non-Convertible Debentures (repayable on 04th December 2012)

(Secured by mortgage, on first pari passu charge basis, over certain fixed assets of the Company situated at Mumbai Refinery)

10000.000

10000.000

7.70% Non-Convertible Debentures (repayable on 12th April, 2013)

(Secured by mortgage, on first pari passu charge basis, over certain fixed assets of the Company situated at Mumbai Refinery and Visakh Refinery)

10000.000

0.000

 

 

 

Total

 

36576.800

13758.800

 

 

Unsecured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

 

 

 

Fixed Deposits

0.200

0.200

Clean Loans from Banks

(Due for repayment within one year : Rs.60250.000 millions; 2009-10 : Rs.79750.000 millions)

60250.000

79750.000

Short Term Loans from Banks (repayable in foreign currency)

(Due for repayment within one year : Rs.96283.600 millions; 2009-10 : Rs.40406.000 millions)

96283.600

40406.000

Term Loan from Oil Industry Development Board

(Due for repayment within one year : Rs.1307.500 millions; 2009-10 : Rs.962.500 millions)

7517.500

5480.000

Syndicated Loans from Foreign Banks

(repayable in foreign currency)

(Due for repayment within one year Rs.12613.200 millions; 2009-10 :` Nil)

40583.800

20128.700

Inter Company Deposits

(Due for repayment within one year Rs.5000.000 millions; 2009-10 : Rs.25000.000 millions)

5000.000

25000.000

Commercial Paper

(Due for repayment within one year Rs.4000.000 millions; 2009-10 : Rs.28500.000 millions)

(Maximum amount raised during 2010-11 : Rs.51500.000 millions; 2009-10 : Rs.45000.000 millions)

4000.000

28500.000

 

 

 

Total

 

213635.100

199264.900

 

 

 

Banking Relations :

--

 

 

Statutory Auditors :

 

·         V. Sankar Aiyar and Company

Chartered Accountants, Mumbai

 

·         Om Agrawal and Company

Chartered Accountants, Jaipur

 

 

Branch Auditors :

Grandhy and Company

Chartered Accountants, Visakhapatnam

 

 

Cost Auditors :

 

R. Nanabhoy and Company

Address : Jer Mansion, 1st Floor, 70 August Kranti Marg, Mumbai – 400 036, Maharashtra, India

 

CMA Rohit J. Vora

Address : 1103 Raj Sunflower, Royal Complex, Eksar Road, Borivali (West) Mumbai – 400 092, Maharashtra, India

 

 

Joint Ventures :

·         HPCL-Mittal Energy Limited

·         Hindustan Colas Limited

·         South Asia LPG Company Private Limited

·         Prize Petroleum Company Limited

·         Petronet India Limited

·         Aavantika Gas Limited

 

 

CAPITAL STRUCTURE

 

(AS ON 31.03.2011)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

349250000

Equity Shares

Rs.10/- each

Rs.3492.500 Millions

75000

Cumulative Redeemable Preference shares

Rs.100/- each

Rs.7.500 Millions

 

 

 

 

 

Total

 

Rs.3500.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

339330000

Equity Shares

Rs.10/- each

Rs.3393.300 Millions

 

Less: 702750 Shares Forfeited

 

Rs.7.000 Millions

338627250

Equity Shares

Rs.10/- each

Rs.3386.300 Millions

 

Add: Shares Forfeited (money received)

 

Rs.3.900 Millions

 

 

 

 

 

Total

 

Rs.3390.100 Millions

 

 

NOTES:-

 

·         77,50,000 fully paid up equity shares of Rs.10/- each were allotted to the shareholders of Lube India Limited on the amalgamation of that company for consideration other than cash.

·         52,00,000 fully paid up equity shares of Rs.10/- each were allotted to the President of India, for consideration other than cash, on the amalgamation of Caltex Oil Refining India Limited with the Corporation.

·         26,44,30,000 equity shares of Rs.10/- each were allotted as fully paid bonus shares by capitalization of Capital Reserve, Capital Redemption Reserve and accumulated profits.

·         During the financial year 2007-08, Company has forfeited 7,02,750 shares issued as a part of the public issue in 1994-95, due to non receipt of allotment and/or call money from shareholders. Accordingly, the paid up share capital has been reduced from Rs.3393.300 millions to Rs.3386.300 millions.

 

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

3390.100

3390.100

3390.100

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

122067.900

112189.600

103916.200

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

125458.000

115579.700

107306.300

LOAN FUNDS

 

 

 

1] Secured Loans

36576.800

13758.800

6988.300

2] Unsecured Loans

213635.100

199264.900

220566.800

TOTAL BORROWING

250211.900

213023.700

227555.100

DEFERRED TAX LIABILITIES

31956.300

18079.700

16033.700

 

 

 

 

TOTAL

407626.200

346683.100

350895.100

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

186445.300

153066.700

116547.500

Capital work-in-progress

37987.000

38875.900

50010.700

 

 

 

 

INVESTMENT

113350.200

113872.200

141964.700

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
166222.800
125792.200
87930.300

 

Sundry Debtors
26543.700
24373.400
22409.100

 

Cash & Bank Balances
800.000
2431.700
6086.400

 

Other Current Assets
985.100
1237.400
1811.500

 

Loans & Advances
71358.100
52584.700
41806.200

Total Current Assets
265909.700
206419.400
160043.500

Less : CURRENT LIABILITIES & PROVISIONS
 
 
 

 

Sundry Creditors

84772.800
73931.300
56454.100

 

Other Current Liabilities

93245.600
71423.900
48648.500

 

Provisions
18047.600
20195.900
12568.700

Total Current Liabilities
196066.000
165551.100
117671.300

Net Current Assets
69843.700
40868.300
42372.200

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

407626.200

346683.100

350895.100

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Net Sales

1237724.200

1013475.100

1093776.000

 

 

Recovery under Subsidy Schemes

97265.200

62899.500

153748.200

 

 

Other Income

13435.400

16461.600

9057.900

 

 

TOTAL                                    

1348424.800

1092836.200

1256582.100

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchase of Products for resale

853968.600

626778.200

733946.100

 

 

Raw Material Consumed

403620.100

377275.900

409952.200

 

 

Packages Consumed

1434.200

1363.900

1271.200

 

 

Excise duty on inventory differential

2851.500

3370.800

(1824.000)

 

 

Transshipping expenses

28865.000

26535.600

24371.500

 

 

Payments to and provisions for Employees

20171.600

16173.200

11355.300

 

 

Exploration expenses

930.300

2556.200

717.000

 

 

Other operating expenses

24448.000

29388.600

20661.500

 

 

Borrowing cost

8840.000

9037.500

20828.400

 

 

Increase/ Decrease in Inventory

(34387.800)

(32499.600)

18367.800

 

 

Prior Period Adjustments Debits / (Credits) (Net)

152.400

(38.400)

(0.100)

 

 

TOTAL                                    

1310893.900

1059941.900

1239646.900

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

37530.900

32894.300

16935.200

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

14069.500

11644.000

9812.900

 

 

 

 

 

 

PROFIT BEFORE TAX

23461.400

21250.300

7122.300

 

 

 

 

 

Less

TAX                                                                 

8071.300

8236.600

1372.500

 

 

 

 

 

 

PROFIT AFTER TAX

15390.100

13013.700

5749.800

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

87151.500

81041.600

77946.700

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

General Reserve

1539.000

1301.400

575.000

 

 

Debenture Redemption Reserve

1761.500

864.000

0.000

 

 

Proposed Final Dividend

4740.800

4063.500

1777.800

 

 

Tax on Distributed Profits

769.100

674.900

302.100

 

BALANCE CARRIED TO THE B/S

93731.200

87151.500

81041.600

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of goods calculated on FOB basis

55228.000

63822.600

60212.600

 

TOTAL EARNINGS

55228.000

63822.600

60212.600

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

299307.800

291579.600

325872.000

 

 

Stores, Spares and Chemicals

836.300

1276.800

780.500

 

 

Capital Goods, Components and Spares

1127.400

890.700

552.600

 

TOTAL IMPORTS

301271.500

293747.100

327205.100

 

 

 

 

 

 

Earnings Per Share (Rs.)

45.45

38.43

16.98

 

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2011

30.09.2011

31.12.2011

31.03.2012

30.06.2012

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

5th Quarter

Net Sales

409169.100

371042.200

480474.500

524431.400

444976.000

Total Expenditure

434853.500

399739.100

443448.500

469269.400

529524.100

PBIDT (Excl OI)

(25684.400)

(28696.900)

37026.000

55162.000

(84548.100)

Other Income

1396.600

2230.900

1575.200

3294.200

2125.700

Operating Profit

(24287.800)

(26466.000)

38601.200

58456.200

(82422.400)

Interest

2641.400

3028.400

6981.700

4325.500

5492.400

Exceptional Items

12.100

0.000

0.000

(17.000)

(29.000)

PBDT

(26917.100)

(29494.400)

31619.500

54113.700

(87943.800)

Depreciation

3885.500

4149.700

4367.700

4726.400

4544.200

Profit Before Tax

(30802.600)

(33644.100)

27251.800

49387.300

(92488.000)

Tax

0.000

0.700

0.000

3077.400

0.000

Provisions and contingencies

0.000

0.000

0.000

0.000

0.000

Profit After Tax

(30802.600)

(33644.800)

27251.800

46309.900

(92488.000)

Extraordinary Items

0.000

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

0.000

Net Profit

(30802.600)

(33644.800)

27251.800

46309.900

(92488.000)

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
1.14
1.19

0.46

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
1.90
2.10

0.65

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
5.19
5.91

2.58

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.19
0.18

0.07

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
3.56
3.28

3.22

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.36
1.25

1.36

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No 

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

-----

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

No 

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

SALES/INCOME FROM OPERATIONS

 

The Company has achieved sales/income from operations of Rs.1423964.900 Millions as compared to Rs.1148886.300 millions in 2009-10.

 

 

PROFIT

 

The Company has earned gross profit of Rs.46370.900 millions as against Rs.41931.800 millions in 2009-10 and profit after tax of Rs.15390.100 Millions as compared to Rs.13013.700 Millions in 2009-10.

 

 

REFINERY PERFORMANCE

 

Subject refineries processed a combined thruput of 14.75 MMT (15.76 MMT in 2009-10) against combined installed capacity of 14.80 MMT.

 

Subject refineries achieved overall MOU Very Good Rating with respect to production parameters viz. Crude thruput, Distillate Yields and Specific Energy Consumption.

 

Gross refining margins of Mumbai Refinery averaged at US$ 4.65 per barrel as against US$ 2.80 per barrel for the year 2009-10.

 

Gross refining margins of Visakh Refinery averaged at US$ 5.81 per barrel as against US$ 2.59 per barrel for the year 2009-10.

 

Mumbai Refinery:

 

During the year, Mumbai Refinery achieved crude thruput of 6.55 MMT as against installed capacity of 6.50 MMT.

 

The fuel and loss of 7.6 wt% for the year was lower than Annual Plan of 8.8% the year.

 

The Adjusted Distillate yield at 72.4% was higher than MoU Excellent target of 70%.

 

Mumbai Refinery achieved Specific Energy Consumption (MBTU/BBL/NRGF) of 91.1 against MoU Excellent target of 97.0 for the current year.

 

Visakh Refinery :

 

During the year, Visakh Refinery achieved crude thruput of 8.20 MMT as against installed capacity of 8.3 MMT.

 

The fuel and loss of 7.3 wt% for the year was lower than Annual Plan of 7.7 %.

 

The Adjusted Distillate yield at 71.5% was higher than MoU Excellent target of 70%.

 

Visakh Refinery achieved Specific Energy Consumption (MBTU/BBL/NRGF) of 86.3 against MoU Excellent target of 90.0 for the current year.

 

 

MARKETING PERFORMANCE

 

The market sales (including exports) were 27.03 Million tonnes as against 26.27 Million tonnes recorded in 2009- 10.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

DEVELOPMENTS IN THE ECONOMY AND THE OIL SECTOR

 

The Indian economy has recovered swiftly from the slowdown resulting from the financial crisis of 2008-09. The GDP growth rate was 8.5% in 2010-11 compared to 8% in 2009-10. Rate of growth in the industry and service sectors was at around 8% and 9% respectively which was similar to 2009-10 levels. Agricultural growth, however, was a healthy 7% following a good monsoon compared to a 0.4% growth in 2009-10. Index of industrial production moderated with all components slowing down.

 

The growth, however, was accompanied by persistently high inflation. Inflation rate has remained above 8% throughout the year. While initial impetus for inflation came from the primary goods sector, over the year rising input costs fed inflationary pressures in the manufactured goods segment. Rise in the global commodity prices has been a factor though pass through to domestic prices has been divergent. Global oil prices remained stable within the $75-85 per barrel range for most part of 2010. However, oil prices started to rise in the latter part of 2010 and reached $115 per barrel by March 2011. Behind the rise was the strong growth in the global oil demand. At 3.1%, the growth rate in 2010 was more than twice the ten-year average. Oil production, on the other

hand, was affected by the turmoil in the Middle- East. Retail prices of sensitive petroleum products viz. diesel, kerosene and LPG were not increased in response to rising crude oil prices as inflation remained a major concern. The Reserve Bank of India has followed a tight monetary policy to curb inflationary pressures.

 

With recovery in exports, current account deficit, which had gone up to 4% of GDP in the first quarter of 2010-11, moderated to about 3.1% of GDP for April-December 2010. The Indian rupee depreciated in early part of the financial year as current account deficit widened and capital inflows barely covered the deficit. As current account deficit improved and inflation differential increased, there was a bias towards appreciation.

 

Demand for petroleum products in India increased by 2.6% in 2010-11 compared with 3.4% in 2009-10. About 142 million tons of petroleum products were consumed during the year. The growth in demand was confined mainly to transport and residential fuels. Petrol and diesel recorded a growth rate of about 11% and 7% respectively. Aviation fuel demand increased by about 10% reflecting turnaround in the sector. LPG demand also increased by a healthy 10% indicating rising penetration. Demand for industrial fuels such as FO/LSHS, however, declined due to availability of cheaper alternatives such as natural gas. For the first time in last five years, bitumen consumption fell by about 7%.

 

 

PERFORMANCE PROFILE

 

The turnover of the Corporation (inclusive of excise duty) for the year ended 31st March, 2011 was Rs.1326700.000 millions as compared to Rs.1085990.000 millions in the previous year. The total sale of products (including exports) for 2010-11 was 27.03 MMT as against 26.27 MMT during 2009-10. Mumbai and Visakh refineries processed 14.75 million tonnes of crude during the year. The combined Gross Refinery Margin (GRM) of the refineries was US $ 5.30/bbl. The pipeline throughput increased to 12.98 million tonnes in 2010-11 from 11.95 million tonnes in 2009-10.

 

The Profit after Tax increased by 18% to Rs.15390.000 millions in 2010-11 from Rs.13010.000 millions in the previous year. The PAT was achieved after absorbing an under-recovery of Rs.15090.000 millions on sales of sensitive petroleum products during the year. The depreciation charge was Rs.14070.000 millions vis-ŕ-vis Rs.11640.000 millions in 2009-10.

 

Interest cost in 2010-11 was reduced to Rs.8840.000 millions from Rs.9040.000 millions in 2009-10 despite increase in borrowings through continued judicious treasury management. High cost debts were retired and replaced with low cost debt.

 

The borrowings of the Corporation were Rs.250210.000 millions as on 31st March, 2011 as compared to Rs.213020.000 millions as on 31st March, 2010. Borrowings during the year were mainly through short term foreign currency loans. Long Term Loans were borrowed at competitive rates. External Commercial Borrowings (ECB) of Rs.18090.000 millions were taken in February / March, 2011 and Nonconvertible debentures (NCD) worth Rs.10000.000 millions were issued in April, 2010. The long term debt to equity ratio stands at 0.54:1 as on 31st March, 2011 as against 0.31: 1 as on 31st March, 2010.

 

Net Fixed Assets (including Capital Work in Progress) increased from Rs.191940.000 millions as on 31st March, 2010 to Rs.224430.000 millions as on 31st March, 2011. Investments as on 31st March, 2011 were Rs.113350.000 millions as compared to Rs.113870.000 millions as on 31st March, 2010.

 

Net Current Assets stood at Rs.69840.000 millions as on 31st March, 2011 as against Rs.40870.000 millions as on 31st March, 2010. Earnings per share work out to Rs.45.45 for the current year as compared to Rs.38.43 in the previous year.

For the year 2010-11, subject has proposed a dividend of Rs.14.00 per share, compared to Rs.12.00 per share in 2009-10. The dividend would result in total payout of Rs.5510.000 millions, including Dividend Distribution Tax.

 

The 2010-11 performance of the Corporation has qualified for ‘Excellent’ rating in terms of the Memorandum of Understanding (MOU) signed with the Government of India.

 

 

REFINERIES

 

Despite the major shutdown of key units for revamp and turnaround activities, both the refineries managed to achieve capacity utilization of nearly 100%. The combined refining throughput was 14.75 MMT. Gross refining margin (GRM) for Mumbai and Visakh refineries for the year 2010-11 were respectively $4.65/bbl and $5.81/bbl, almost double the GRMs for the year 2009-10. This is partly attributable to the stronger Singapore product cracks during the year.

 

During the year 2010-11, subject uplifted 4.2 MMT of indigenous crude oil (Mumbai High, Ravva and KG-D6). Balance requirement was met through import of 10.3 MMT of crude, majority of which was through term contracts with the national oil companies of Saudi, Kuwait, Iran, Iraq, UAE and Malaysia. High sulphur crude oil formed about 60 % of the total crude purchased.

 

To expand the crude oil basket, subject refineries added 12 new crudes during the year 2010-11. Siri, Nowrooz and Lavan Blend crude oils from Iran, Brass Light and Antan from Nigeria were processed by HPCL for the first time.

 

Post revamp, crude processing capacity of the two refineries has gone up by 0.8 MMTPA (0.4 MMTPA each in Mumbai and Visakh) and the refineries are now capable to process heavy crudes and high acid crudes. Increase in throughput and improved flexibility of the refineries in handling different varieties of crude oil is aligned towards HPCL’s overall objective of bridging the gap between its refining capacity and the demand of products by the marketing SBUs.

 

A major achievement of Mumbai Refinery was commissioning of a new Fluidized Catalytic Cracking Unit (FCCU-II) of capacity 1.45 MMTPA. This unit is designed to process heavier feedstock than the existing cracking unit. Visakh Refiner y commissioneda Naphtha Isomerization Unit of 250 TMTPA capacity and also revamped the capacity of its second Fluidized Catalytic Cracking Unit (FCCU-II) from 0.6 to 1.0 MMTPA. These capacity additions have made the secondary processing capacity commensurate with the increased crude distillation capacity and have enhanced production of LPG and MS, thus reducing dependence on their import.

 

The production of naphtha and fuel oil was minimized in view of dwindling demand in the country. Naphtha was converted to MS to maximum possible extent and the balance was exported. Naphtha and fuel oil/LSHS exports in the year were 826 TMT and 218 TMT respectively, vis-a-vis 1099 TMT and 154 TMT last year. HPCL, which is classified as a Premier Trading House by Directorate General of Foreign Trade, exported nearly Rs.38230.000 millions of oil products.

 

Both Mumbai and Visakh refineries have switched over to the production of Viscosity grade bitumen products viz. VG-10 and VG-30 which are superior quality bitumen products compared to the penetration grades being manufactured earlier.

 

Subject reached a milestone at Mumbai Refinery with the mechanical completion of the Lube Oil Base Stock (LOBS) project by the end of March 2011 and commissioning in June 2011. Also, the existing Solvent Extraction Units (SEU-I and III) were revamped using internally developed process package. These projects have enhanced the LOBS production capacity and depending upon requirement, up to 400 TMTPA of API Group-I, II and III LOBS can be produced (against the current production capability of 335 TMTPA of Group-I only). HPCL will now be able to cater to the growing demand for superior quality lube oil base stock market, both in India and abroad.

Commissioning of the Single Point Mooring (SPM) facility at Visakh is a significant milestone.Visakh Refinery can now receive Very Large Crude Carriers (VLCC). In future, the facility can also be utilized by Indian Strategic Petroleum Reserves Limited (ISPRL) for its storage facility coming up nearby.

 

To meet the requirements of the BS-IV quality diesel as laid down in the Auto Fuel Policy, both Mumbai and Visakh refineries are setting up Diesel Hydrotreater Units of 2.2 MMTPA each with associated facilities. Expected time of mechanical completion of the projects is March 2012.

 

Specific energy consumption of both Mumbai and Visakh refineries in the year was significantly lower. Various energy conservation projects were implemented in the two refineries, significant among them were the revamp of furnaces at the two refineries which has reduced overall fuel consumption. These energy conservation measures have made it possible to restrict fuel and loss for Mumbai and Visakh refineries to 7.6% and 7.3% respectively. The consumption is well within the design limits despite commissioning of the new MS block units.

 

Implementation of recommendations under the Integrated Refinery Business Improvement Programme (IRBIP) at Visakh refinery have improved product yield and reduced operating expenditures. Estimated benefits accruing from the programme is about 0.20 $/bbl on a recurring basis. The programme is now being extended to Mumbai refinery also.

 

Quality control is a key to refinery profitability. Laboratories at the two refineries conform to the highest standards of testing. An achievement of the Mumbai Refinery Quality Control Laboratory was its accreditation with the National Accreditation Board for Testing and Calibration Laboratories (NABL) certification.

 

Special Cut Naphtha (SCN) was successfully tried, as a pilot project for the first time in the country, as plug in cross-country pipeline transfer of MS and HSD. Use of SCN as a plug prevented any quality give-away in MS and HSD, thus increasing their production potential. Also, it will result in better inventory management because of reduction in the quantity of MS and HSD required for each transfer cycle.

 

Subject is committed to conducting its business in a safe and healthy manner, and preserving the environment. Regular internal safety audit and the mandatory audit from Oil Industry Safety Directorate (OISD) were conducted during the year.

 

As a part of commitment to protection of environment, both the refineries are implementing Flue Gas Desulphurisation (FGD) projects for removal of sulphur from the flue gases of the Fluidized Catalytic Cracking Units. FGD at Mumbai refinery was commissioned in March 2011 and at Visakh will get commissioned by March 2012.

 

Fresh water management is especially important wherever these resources are constrained due to limited supplies. The newly commissioned Membrane Batch Reactor (MBR) and Reverse Osmosis (RO) sections of the Integrated Effluent Treatment Plant (IETP) at Mumbai refinery has reduced intake of fresh water from the municipal corporation by purifying and recycling treated water for refinery consumption.

 

Initiatives of rain water harvesting, ground water quality monitoring, assessment of carbon footprints, creating awareness by celebrating World Environment Day and leak detection and repair programmes demonstrate subject’s commitment to a cleaner, greener and sustainable environment.

 

 

MARKETING

 

The total sale of products (including exports) by the Corporation for 2010-11 was 27.03 MMT as against 26.27 MMT during 2009-10.

 

Retail

 

Retail constitutes 65.8% of subject’s overall marketing business. Both the Corporate and Retail Brands of subject enjoy high brand recall among consumers. Subject enjoys significant market share of 24% in combined petrol and diesel retail segments as of March 2011.

 

The Retail value proposition is to provide “Differentiated Customer experience at the point of interface, through quality products and service with a smile”. The retail strategy was institutionalized through a number of processes, tools, manuals and computer based training modules and the entire SBU is aligned for delivering the Retail value proposition.

 

Retail sales of Motor Spirit (MS) increased by 11.7% in the year 2010-11 compared to Industry (PSU) growth of 10.3%. High Speed Diesel (HSD) sales grew by 10.2% against Industry (PSU) growth of 8%. HPCL increased its market share in MS and HSD(combined) by 0.45% during the year 2010-11 through implementation of significant initiatives at the retail outlets. Auto LPG achieved a growth of 7.9% for the year with addition of 25 Auto LPG Dispensing stations (ALDS). Subject increased market share by 2% in ALPG during the year. Compressed Natural Gas (CNG) sales increased by 8.9% achieving a volume of 159 TMT.

 

NANO (No Automation No Operation), a pioneering initiative by subject is being rolled out pan-India. Out of a total of 1683 automated outlets, NANO has been implemented at 1660 of the automated outlets. To ensure the Brand promise of Quality and Quantity Assurance, subject is setting up Control rooms for monitoring the operations of automated outlets.

 

Management Development Program (MDP), a unique initiative of subject to increase the productivity of dealers by imparting both behavioral and functional skills to corpus fund dealers has been extended to new dealers also. A total of 7 training programs covering 175 dealers have been conducted. Further, to ensure delivery of services at retail outlets, third party certification has been undertaken. During 2010-11 a total of 2165 Club HP outlets have been audited and 1563 outlets i.e., 73% have been certified during third party audits.

 

Leveraging technology for automation, improving network productivity through unique initiatives at the outlet, developing skills of new and corpus fund dealers through Management Development Programs (MDP), institutionalizing standard operating practices (SOP) at retail outlets, 3rd party certification of outlet standards and expansion of Network in the rural markets will continue to be the key focus areas.

 

Aviation

 

Although aviation industry is on a recovery path, cash strapped full service carriers are struggling to meet their obligations particularly in view of high fuel bills. During the year 2010-11, the company focused on balancing the growth and profitability which resulted in decline in sales to 699 TMT during 2010-11.

 

ISO certification has been achieved at 9 locations and robust process and people management systems were implemented in the Aviation SBU. Subject commissioned 2 new ASFs at Jammu and Indore taking the total number to 32 ASFs as of 31.3.2011. Building high performance team will be a key focus area to be the preferred jet fuel supplier.

 

Industrial and Consumer

 

Industrial and Consumer business sales especially Naphtha and LSHS have been affected by increased availability of natural gas in the country. Excluding these two products subject Industrial and Consumer business line recorded a growth of 0.3%.FO/LSHS sales grew by 1.4% compared to decline of 6.1% by Industry (PSU). subject gained market share in products of LDO, FO, Sulphur, JBO and Propylene. Black Oil Terminal facilities at Visakh and BTPN rake loading facility at Mahul have been commissioned during the year which will help in improving sales of fuel oil to consumers. To increase Bitumen product availability in the easternpart of the country bulk Bitumen COD at Haldia has been commissioned.

Bitumen marketing through CODs at strategic location for Bulk and Packed bitumen, Key account management and emphasis on Micro, Small and Medium Enterprises (MSME) segment have been identified as the focus areas for achieving growth in fuels.

 

Lubes

 

The Indian lubricant market grew by 23% from 1500 TMTPA to a size of approximately 1850 TMTPA. The market comprises 50% of automotive segment and 50% of industrial and direct segment. The core and large sector industries like Railways, Collieries, State Transport Undertakings (STUs), Steel, Cement, Tyre etc. accounted for about 60% of the industrial and direct market, and the balance is distributed across diverse sectors such as sugar, marine, fisheries, fertilizers, etc. During 2010-11, the value added lube sales (excluding base oil sales) for HPCL have been increased to 243 TMT from 215 TMT in 2009-10 representing a growth of 13%.

 

The trend of continuously upgrading product range in line with evolving consumer needs and responding to specific customer requirements with support from R&D group was continued during the year. In a first time initiative in the country, subject has launched Nano particle based Lubricating oils, viz., HP Numaro Uno in Engine oils category and HP Rhino XP 80W90 in Gear oil category. Other notable product additions during the year areMilcy Synthetic, HP Milcy No. 1 Plus (conforming to API CI-4+), Cruise TGO for Tata Nano and Tea Spray Oil.

 

Subject is focused on product development and product innovation to meet customer needs and increase sales in this profitable segment of Business.

 

LPG

 

Subject has consolidated its position in overall LPG market through significant increase in market share from 26.1% in 2009-10 to 26.6% during 2010-11. The total LPG Sales is 3.64 MMT with growth of 11.6%. Subject continues to maintain its market leadership position in the highly competitive non-domestic(ND) Bulk Segment with 41% market share.

 

In line with Vision 2015 of MOP and NG, subject has drawn comprehensive strategic plans to increase penetration of domestic LPG. Subject has commissioned 118 new distributorship under Rajiv Gandhi Gramin LPG Vitaran Yojana and 102 new HP Gas Distributorship across India. HPC has enrolled all time high of 29 lakhs new domestic customers, out of which almost 12 lakhs connections have been released in rural areas and released 19 lakhs additional cylinders to existing customers. The total customer population reached 3.24 crores with 1.59 crore customers having double bottle connections. To have sustained competitive advantage in non-domestic segment, commissioned 13 new exclusive ND distributorship across India.

 

Development of LPG Infrastructure is a key focus area. The bottling capacity was augmented by 135 TMT and storage capacity was increased by 3.6 TMT. Subject achieved highest ever bottling of 3.5 MMT with quantum increase in productivity. Subject handled 59% of total LPG imports in the country by achieving throughput of 2.7 MMTPA at MLIF and VLIF.

 

 

Details of some of the new initiatives undertaken in LPG during 2010-11 are described as under:

 

·         Flex speed carousal at Cherlapally LPG Plant

 

Subject has commissioned Flex Speed Carousal with 66 heads and flexibility to bottle 2200-4000 cylinders per hour in the Cherlapally LPG plant. The carousel can operate at variable speed in line with the market demand and will reduce operating cost by 30% compared to traditional carousel in plants with a bottling capacity more than 150TMTPA. One of the exceptional features of this carousel is the Vision Unit for tare weight recognition which facilitates reading of tare weight by camera thereby eliminating human intervention.

 

·         HPANY TIME

 

HPC has implemented SMS/IVRS based refill booking serviceinadditional eight cities, in-line with Vision 2015 of MOP and NG. These cities include Hyderabad, Vizag, Bangalore, Chennai, Chandigarh, Lucknow, Kolkata and Patna.

 

·         Safety awareness campaigns

 

Subject has taken various initiatives and mass campaigns for promoting safety among domestic customers. These include mass media campaigns such as “Suraksha Sanchetna” and “Art for Awareness” for generating awareness amongst LPG customers about safety.

 

·         Distributor customer management system

 

HPC has been the pioneer in Industry to computerize all the LPG distributorship accounting operations across India. To meet the new business requirements and enhance the capabilities of distributor’s software, the existing software at distributorships has been upgraded. The system has been implemented successfully at more than 1000 distributorships. The software at all distributorships shall be upgraded during 2011-12.

 

·         Multi-function regulators (MFR)

 

To equip domestic LPG customer with enhanced safety features, Multi-Function Regulator (MFR) conforming to IS 9798 specification was launched during 2010-11. These safety-rich regulators are available at select distributorships in Mumbai, Pune, Delhi and Bangalore. The salient feature of MFR includes stoppage of flow of LPG in case of snapping of LPG hose and also detection of leakage through LPG hose. Another important feature of MFR is level indicator which indicates level of LPG in the cylinder to facilitate in re-ordering of next refill. A child lock feature has also been provided which restricts the knob movement towards ON position.

 

·         Management development program for distributors

 

Subject has developed a Comprehensive Training Module for Distributors, branded as Saksham, for distributors of weaker section, new distributors and RGGLVY distributors. In the financial year 2010-11, 6 programs were conducted across India covering 158 distributors.

 

 

NATURAL GAS

 

Subject is operating a CNG network at Ahmedabad through one mother station and 15 daughter stations for general public for their vehicles. During 2010-11, subject has submitted bids for city gas distribution for 4 cities.

 

Subject is also keen to establish a significant presence in the natural gas infrastructure segment and has formed a consortium with GSPC, IOCL and BPCL for bidding in gas pipelines notified by PNGRB. The consortium has been the successful bidder for winning all the three Pipe Lines notified by PNGRB during 2010-11 for Mallavaram-Bhilwara, Mehsana-Bathinda and Bathinda- Srinagar gas pipelines for which the formal authorisation from PNGRB is awaited.

 

Subject is operating CGD projects in Andhra Pradesh through Bhagyanagar Gas Limited and in Madhya Pradesh through Avantika Gas Limited, both of them as Joint ventures with GAIL. Subject is also in discussions with state government of West Bengal to implement the CGD project in the city of Kolkata through a Joint Venture company with participation from Greater Calcutta Gas Supply Corporation, an existing company distributing piped coal gas in Kolkata.

 

OPERATIONS AND DISTRIBUTION

 

During the year 2010-11, subject’s POL installations, achieved a record throughput of 38.5 MMT, an increase of 7 % over historical for supporting the sales performance. Subject’s Coastal terminals handled a record input volume of 8.24 MMT through 234 Marine Tanker voyages in 2010-11 and Rail loading bases achieved an all-time high annual rail loading of 2963 BTPN White Oil Rakes. This was achieved by effective planning and execution in the areas of product procurement and distribution, enhanced level of efficiency in operations leveraging automation and improved operating processes at POL Terminals and Depots.

 

Carbon Footprint Study in line with global GHG protocols and UNFCCC conventions were conducted on pilot basis at two major installations.GHG emissions under scope 1, 2 and 3 have been comprehensively assessed to deduce the Carbon Footprint, and possible reduction measures recommended. During 2010-11, 5% Ethanol Blended Petrol (EBP) program has been implemented in 13 states and 3 UTs achieving 58% EBP supplies as of March 2011.Increased controls and continuous monitoring of Ocean Loss in coastal movements resulted in reducing the losses to world class performance levels of 0.15 %.

 

Safety remains the focus area for operations and distribution. Subject has been taking a leading role in the implementation of M B Lal Committee recommendations, which covers the entire gamut of plant, equipment, processes and personnel. International Safety Rating System (ISRS) Safety Certification is the single most comprehensive and integrated safety management evaluation system. Subject is the only PSU Oil Marketing Company in India to have implemented this stringent ISRS certification at POL Locations. During the year, ISRS Level 6 was implemented at 9 major terminals, and a total of 45 POL locations have so far been awarded the ISRS Certification.

 

Terminal Automation System (TAS) is one of process improvements to ensure exact quantity dispensation. About 43 POL Terminals/Depots are automated and another 22 installations are under TAS implementation. Over 6000 Tank Trucks are now covered under Vehicle Management System, enabling tracking of deliveries by dealers and transporters, and the latest feature addition provides SMS alert to dealers on route deviations.

 

 

PROJECTS AND PIPELINES

 

A number of projects are underway and are being planned to augment subject’s marketing infrastructure. The details of the Projects completed during 2010-11 are described as under:

 

·         Black Oil Terminal at Visakhapatnam

 

Black Oil Terminalat Visakhapatnam was commissioned on 20th September 2010. It is the largest exclusive fully automated Black Oil terminal in the country. This is the first terminal to be constructed in Oil Industry on sustainable development basis having green building. This installation has the entire range of Black Oils along with variants. Tank truck loading, Wagon loading, Bunkering and shipping are possible from this installation. With commissioning of this terminal subject has huge advantage in terms of Marketing of Black oil to direct customers of emerging markets in Orissa and Andhra Pradesh. The terminal has a provision for bulk storage and electrical tracing of pipelines. The total Tankage capacity is 94 TKL. The total Cost of the project is a 186 crores.

 

·         HPCL-Mittal Energy Limited product evacuation project

 

Hindustan Mittal Energy Limited, a JV Company of subject, is setting up a 9 MMTPA grass root refinery near Bathinda, Punjab. Subject has the marketing rights for the petroleum products. Following cross country pipelines have been taken up for facilitating product evacuation, namely:

 

o        30 km long, 10” diameter pipeline from Bathinda to Ramanmandi

o        250 km long, 18” diameter pipeline from Ramanmandi to Bahadurgarh

Both pipeline projects have been mechanically completed in Dec’ 2010 at an expenditure of ` 408.9 crores.

 

·         Railway siding at Mahul Terminal

 

New 2 Spur full rake BTPN railway siding completed at Mahul terminal and commissioned at a cost of Rs.640.000 millions.

 

·         Grease and Specialty product plant at Silvassa

 

Completed and commissioned new Grease and Specialty Product Plant at Silvassa with a capacity of 4700 MTPA at a cost of Rs.300.000 millions.

 

·         Additional product tankages at Ghatkesar

 

Construction of 4 (four) number above ground storage tanks with aggregate capacity of 54 TKL has been completed mechanically at a total cost of Rs.230.000 millions.

 

·         Additive dosing system for Branded Fuels

 

Additive Dosing System for Branded Fuels has been completed and commissioned at 32 Locations.

 

A number of projects are under construction to strengthen the distribution infrastructure to cater to the increasing demand of POL products. The details of some of the projects and the project status are described as under:

 

·         White Oil Terminal at Visakhapatnam

 

The While Oil Terminal at Visakhapatnam will be the first fully automated white oil terminal including Tank wagon gantry. The project is proceeding as per schedule and achieved 75% physical progress. The project is expected to be mechanically complete by September ’2011. The total project cost is expected to be Rs.4650.000 millions with total tankage capacity of 168 TKL. The terminal can receive product either from refinery or coastal inputs from jetty. The infrastructure contains provision for Tank truck loading, wagon loading and shipping from this installation.

 

·         White Oil Terminal at Ennore, Tamil Nadu

 

A new green field White Oil Terminal is being constructed at Ennore which is located on the outskirts of the   Chennai City for relocating the existing Chennai terminal. The project is to provide Tankage facility of 140 TKL for storage and dispatch of MS, HSD, SKO and ATF. The project is proceeding as per schedule and achieved 75% physical progress. The terminal is expected to be mechanically complete by August ’2011. The total project cost is expected to be Rs.2990.000 millions.

 

·         LPG Terminal and Bottling Plantat Visakhapatnam

 

A new LPG Terminal and Bottling Plant are being constructed at Visakhapatnam and shall be the nerve center for LPG distribution from Visakhapatnam. The storage capacity is 4.4 TMT which is the largest capacity in subject Marketing. The total project cost is expected to be Rs.2500.000 millions. The project was mechanically complete in June 2011.

 

·         Bahadurgarh-Tikrikalan Pipelines

 

The project includes laying of 2 numbers 12 km long product pipelines for MS and HSD/SKO of 8” and 10”  diameter respectively. These pipelines are being laid from Bahadurgarh Terminal to Tikrikalan Terminal at an estimated cost of Rs.600.000 millions. The pipelines are expected to be completed by Mar’ 2012.

 

·         Tikrikalan Terminal

 

Construction of a new grass root terminal with receipt facilities from Bahadurgarh-Tikrikalan Pipeline for handling MS, HSD, SKO and Ethanol at a revised estimated cost of Rs.946.900 millions is under progress. The project is expected to be commissioned by March 2012.

 

·         New POL Depot at Bihta (Near Patna)

 

Construction of a new grass root depot for handling White Oil (MS, HSD and SKO) and Black Oil (FO and Bitumen) including wagon unloading siding at an estimated cost of Rs.1425.000 millions is under progress. The Project is targeted for commissioning by September ’2012.

 

·         Pipelines Operations

 

Subject pipelines Mumbai-Pune-Solapur pipeline (MPSPL), Visakh-Vijayawada-Secunderabad pipeline (VVSPL) and Mundra-Delhi pipeline (MDPL) achieved a record combined throughput of 12.9 MMT against the target throughput of 10.0 MMT during the financial year 2010-11. Lube Oil Pipeline achieved throughput of 286.7 TMT against the target of 250.0 TMT for the year 2010-11.

 

With the commissioning of Security Tracking System at VVSPL and MPPL section of MPSPL, all three pipelines of subject can monitor and track the movement of Line walkers on real time basis. With the accreditation of MDPL with OHSAS 18001:2007, all the 3 pipelines are accredited with ISO 14001: 2004, ISO 9001:2008 and OHSAS 18001:2007.

 

As per Oil Sector Infrastructure Protection Plan (OSIPP) recommendations, all pipelines have implemented and installed additional infrastructure viz. concertina coil on compound wall, CCTV camera for perimeter security, shifting of parking lot, provision of under vehicle search mirrors, night vision binoculars, hand held metal detectors and thermal imagers, as the case may be, in the locations.

 

 

AWARDS RECEIVED

 

·         SCOPE Gold Trophy Meritorious Award for Corporate Social Responsibility and Responsiveness for the year 2009-10.

·         Award in Sustainability and CSR in Special Technical Award Category during Petrotech 2010.

·         Indira Gandhi Rajbhasha Puraskar for the third consecutive year in PSU category.

·         Award for Excellence in Training and Talent Management at Asia’s Best Employer Brand Awards 2010-11.

·         Golden Peacock Award for Corporate Social Responsibility for the year 2010-11.

·         Greentech Environment Excellence Award 2010 in Gold category for Mumbai Refinery and Visakh Refinery.

·         Greentech Safety Award 2010 in Bronze category for Mundra-Delhi pipeline (MDPL) for outstanding achievement in Safety Management.

·         Award from National Safety Council, Maharashtra Chapter to Mumbai-Pune-Solapur pipeline (MPSPL) for Meritorious Performance in Industrial Safety for the year 2009-10.

·         Reader’s Digest Trusted Brand Award Gold Award 2010.

·         CMO Asia Awards for Brand Excellence and Best Loyalty program.

·         Brand Leadership in Service Industry award at the World Brand Congress 2010.

·         Best Customer Loyalty Program and Marketing Campaign of the Year Award at the Asia Retail Congress Awards 2010.

·         Forecourt Retailer of the Year Award at the Star Retailer Awards 2010.

·         PFFCA STAR 2009 Award in the category of “Structural and Graphic Design for Improved Aesthetics” for “HP Laal Ghoda Metalized Rollapack”.

·         FE-EVI Green Business Leadership Award 2009-10 presented on World Environment Day to Mumbai Refinery.

·         Greentech Safety Silver Award for Loni Terminal.

·         Greentech Silver Award for Hoshiarpur LPG Plant.

·         CIO 100 Award in recognition of CIOs and organizations who in an atmosphere of uncertainty and risk found agile solutions to take business forward through use of IT.

·         India Star Award 2010 for excellence in packaging.

·         National Safety Award to MLIF based on the Longest Accident Free Year.

·         American Society for Training and Development (ASTD) award for Excellence in Practice for Samavesh – Induction program for new joinees.

·         CII HR Excellence Award 2009.

·         Greentech HR Excellence - GOLD Award for Technology Excellence in HR and PLATINUM Award for Best HR Strategy by Greentech HR Foundation.

·         SCOPE Meritorious award for Best Practice in Human Resource by SCOPE.

 

 

OUTLOOK

 

IMF is forecasting a growth rate of 4.5% for the global economy in 2011 and 2012. Downside risks remain due to persistently high unemployment in the US, weak sovereign balance sheets especially in the Eurozone and rising commodity prices. On the upside, demand has been buoyant in the developing economies. At the moment, downside risks outweigh upside risks.

 

The growth of the Indian economy is expected to moderate in view of the tight monetary policy. India’s GDP growth is projected at 8.25 % in 2011 and 7.75 % in 2012. Any slackening of global recovery would impact growth negatively via trade and capital flows. IMF has also increased the baseline projections for petroleum prices from US $ 79 / bbl in 2010 to US$ 107 / bbl in 2011.

 

 

JOINT VENTURES

 

The Joint Venture companies and subsidiaries of HPCL have performed very well during the year 2010-11.

 

HPCL-Mittal Energy Limited (HMEL)

 

HPCL-Mittal Energy Limited (HMEL) is a joint venture between Hindustan Petroleum Corporation Limited and Mittal Energy Investments Pte Limited (MEI), Singapore, an L N Mittal Group Company, for implementation of a grassroot refinery project of 9 MMTPA capacity at Bathinda in the State of Punjab. Both partners hold 49% equity stake in HMEL and balance 2% is held by financial institutions i.e. IFCI Limited and State Bank of India.

 

The HMEL Refinery will be a zero bottoms, energy efficient, environment friendly, high distillate yielding complex refinery that will be producing petroleum products complying with Euro IV emission norms by processing heavy, sour and acidic crudes. A Captive Power Plant of 165 MW for meeting the power and steam requirements is also being implemented.

 

HMEL has also incorporated a wholly owned subsidiary company HPCL-Mittal Pipelines Limited (HMPL) to set up and operate business related to crude oil receipt, storage and cross country transportation. HMPL is constructing a Single Point Mooring (SPM) and Off shore facilities, Crude Oil Terminal (COT) for dedicated crude receipt and storage facility at Mundra in the State of Gujarat and 1,014 kilometers cross country crude oil pipeline for transportation of crude oil from Mundra to HMEL’s Refinery at Bathinda, Punjab. Refinery project activities are in last stages with expected commissioning in current financial year 2011-12.

 

HPCL Biofuels Limited (HBL)

 

In line with Government’s policy for blending of ethanol in petrol, a new wholly owned subsidiary company HPCL Biofuels Limited (HBL) was incorporated on October 16, 2009 to produce ethanol.

 

The Integrated plants being set up by HBL will have a cane crushing capacity of 3500 TCD with Distillery of 60 KLPD for manufacturing Ethanol and a co-gen plant of 20 MW each at Sugauli and Lauriya in East and West Champaran Districts in the State of Bihar.

 

Sugar units at Sugauli and Lauriya have been commissioned during the year. Power and Ethanol units are nearing completion and the trial run will commence shortly.

 

CREDA-HPCL Biofuel Limited (CHBL)

 

CREDA-HPCL Biofuel Limited (CHBL) was incorporated on October 14, 2008 as a subsidiary company with equity shareholding of 74% by HPCL and 26% by Chhattisgarh State Renewable Energy Development Agency (CREDA) to venture into alternate fuels. CHBL would undertake cultivation of Jatropha plant, an energy crop used for production of bio-diesel, on 15,000 hectares of land leased by the Government of Chhattisgarh.

 

South Asia LPG Company Private Limited (SALPG)

 

South Asia LPG Co Private Limited (SALPG), a Joint Venture Company with M/s. Total Gas and Power India (a wholly owned subsidiary of Total, France) has commissioned an underground Cavern Storage of 60 TMT capacity and associated receiving and despatch facilities at Visakhapatnam in December 2007. The commercial operations commenced in January 2008.

 

During 2010-11, SALPG received 777 TMT of LPG into the Cavern through 70 Vessels including 37 Very Large Gas Carriers (VLGCs). This has resulted into easing-out the product movement constraints across the east coast and ensured smooth availability of LPG in the supply and surrounding zones. SALPG achieved 32% higher turnover at Rs.1371.400 millions and 50% higher profits (PAT) at Rs.642.200 millions during 2010-11 compared to previous year.

 

The Cavern cum Marine Terminal achieved 842,741 Safe Man-hours since commencement of commercial operations in January 2008 without a Lost Time Accident. SALPG received ISO 9001, OHSAS 18001 and ISO 14001 accreditation for its Integrated Management System (IMS) during the year.

 

SALPG maintained 50% dividend for second consecutive year (2010-11).

 

Hindustan Colas Limited (HINCOL)

 

Hindustan Colas Limited (HINCOL) is a joint venture company promoted by HPCL and Colas S.A. of France and was incorporated on July 17, 1995. HINCOL has grown steadily over the years to establish itself as the clear market leader in manufacturing and marketing of Bitumen Emulsions, Modified Bitumen and other value added bituminous products.

 

HINCOL presently has seven manufacturing Plants across India and the eighth Plant is in the final stages of construction in the State of West Bengal. HINCOL products find extensive use in the road construction industry.

HINCOL office and all the seven plants have received Integrated Management Systems (IMS) certification. This international certification incorporates compliance with ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certifications.

 

During 2010-11, HINCOL commissioned Bulk Bitumen Storage and Handling facility at Haldia Port. Further, construction of a new Bitumen Emulsion and Modified Bitumen Manufacturing Plant at Haldia is in final stages of completion and expected to commence operations in 2010-11. HINCOL recorded a production of 159.39 TMT with turnover of Rs.3579.700 millions and earned net profit (PAT) of Rs.283.800 millions.

 

HINCOL declared dividend of 125% for the year 2010-11.

 

Prize Petroleum Company Limited (PPCL)

 

Subject, in partnership with ICICI and HDFC, has formed this Joint Venture E and P Company for participating in exploration and production of hydrocarbons on October 28, 1998. Over the years, Prize Petroleum Company Limited (PPCL) has built up a portfolio of 2 producing fields and one exploration block.

 

PPCL had signed Service Contract with ONGC for development of Hirapur Marginal Field in Cambay Basin with 50% holding in the consortium. PPCL is operator for the field. During 2010-11, 39,004 barrels of crude oil (cumulative production of 240,068 barrels since inception) has been produced. PPCL had also entered into a Production Sharing Contract (PSC) with 50% Participating Interest in Sanganpur Block as Joint Operator. During 2010-11, 1,037 barrels of crude oil (cumulative production of 11,741 barrels from inception) has been produced. The crude produced is now benchmarked to Bonny light crude.

 

The company was awarded South Rewa Block in Madhya Pradesh under NELP-VI which is the biggest onshore exploration Block with 13,277 sq. km area. PPCL is the Operator for this block. During 2010-11, seismic data acquisition was completed by Geofizyka Torum. Geochemical survey was completed by NGRI and IERP of Russia completed observations on 57 Magento Telluric and 45 Transient Electro Magnetic sites. With this, field surveys which are part of the committed work program are completed. Processing and interpretation of data is in progress for preparation of the drilling program. PPCL has bagged onshore exploration block (401sq. kms area) in Tripura along with consortium partner ABG Energy Limited (ABG) in recently concluded bids round for NELP IX. PPCL is the operator for this block with a participating interest of 20% and will be “carried” during the initial exploration phase. In the event of commercial discovery and consortium entering the Development phase, PPCL will pay only 10% for the past cost (which will be recovered by ABG from ‘profit petroleum’) and will continue to hold 20% participating interest.

 

During 2010-11, PPCL received Rs.95.000 millions towards call money of Rs.1.90 per cumulative convertible preference share on 5,00,00,000 8% cumulative convertible preference shares issued to subject.

 

Petronet MHB Limited (PMHBL)

 

Subject, along with Petronet India Limited (PIL) promoted Petronet MHB Limited (PMHBL) for construction of Mangalore- Hassan-Bangalore Pipeline at a cost of Rs.6670.000 millions with debt equity ratio of 3:1. The joint venture company was incorporated on July 31, 1998. Initially PIL and subject each contributed 26% towards equity. ONGC joined as a strategic partner in PMHBL by taking 23% equity in April 2003. Post debt restructuring of PMHBL, the equity holding of HPCL and ONGC increased to 28.766% each and PIL’s equity holding decreased to 7.90%.The Pipeline is meeting the transportation needs between Mangalore-Hassan-Bangalore.

 

During 2010-11, PMHBL achieved 2% higher throughput at 2.576 MMT as compared to 2.527 MMT in 2009-10. Revenue generation was higher by 12% at Rs.772.900 millions as compared to Rs.691.800 millions in the previous year.

 

Bhagyanagar Gas Limited (BGL)

 

Bhagyanagar Gas Limited (BGL) was incorporated on August 22, 2003 as a Joint Venture Company by GAIL (India) Limited and subject for distribution and marketing of environmental friendly fuels (green fuels) viz. CNG and Auto LPG for use in the transportation, domestic, commercial and industrial sectors, in the state of Andhra Pradesh.

 

City Gas Distribution (CGD) network is being laid in Hyderabad, Vijayawada and Kakinada cities as mandated by Petroleum and Natural Gas Regulatory Board (PNGRB). During the year, one ‘company owned company operated’ CNG station at Hyderabad, one CNG Station exclusively for RTC buses at Vijayawada and One CNG daughter booster station at subject retail outlet in Kakinada was commissioned. With these commissioning, BGL now operates 15 CNG stations-5 at Hyderabad, 8 at Vijayawada and one each at Kakinada and Rajahmundry.

 

Aavantika Gas Limited AGL)

 

Aavantika Gas Limited (AGL) was incorporated on June 07, 2006 as a Joint Venture Company by GAIL and subject for distribution and marketing of environmental friendly fuels (green fuels) viz. CNG and Auto LPG for use in the transportation, domestic, commercial and industrial sectors in the State of Madhya Pradesh.

 

AGL has been authorized by MOPNG as well as PNGRB for carrying City Gas Distribution (CGD) operations at Indore, Ujjain and Gwalior. The company commenced commercial operations in the 2008.

 

During 2010-11, the company commissioned a daughter station for CNG buses at Ujjain, an online CNG station for buses and a daughter station at Indore. With these commissioning, AGL now operates 9 CNG stations -7 daughter stations (5 in Indore and 2 in Ujjain) and 1 mother station at Indore and one on line station at Indore. AGL also completed pilot project for supplying Piped Natural Gas (PNG) to Industrial customers at Indore. Work for construction of Mother Station at Gwalior has already commenced and is expected to be over by December 2011. The company earned maiden profit after taxes of Rs.7.100 millions during the year.

 

 

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF APPEALS FILED AGAINST THE CORPORATION

 

Particulars

 

31.03.2011

(Rs. in millions)

 

 

Sales Tax/Octroi

144.800

Excise/Customs

287.100

Employee Benefits/Demands (to the extent quantifiable)

1527.300

Claims against the Corporation not acknowledged as debts

3346.200

Others

2147.900

 

 

FIXED ASSETS

 

·         Land –Freehold

·         Roads and Culverts

·         Buildings

·         Leasehold Property – Land

·         Railway Siding and Rolling Stock

·         Plant and Machinery

·         Furniture, Fixtures and Office/ Laboratory Equipment

·         Transport Equipment

·         Unallocated Capital Expenditure on Land Development

 

 

WEB DETAILS

 

BUSINESS DESCRIPTION

 

Subject is an India-based integrated oil refining and marketing company. The Company operates in two business segments: Downstream, and exploration and production of hydrocarbons. The Downstream segment is engaged in refining and marketing of petroleum products. Subject operates two coastal refineries, one at Mumbai (West Coast) of 6.5 million metric tonnes per annum (MMTPA) and the other in Vishakapatnam, (East Coast) with a capacity of 8.3 MMTPA. Subject also holds an equity stake of 16.95% in Mangalore Refinery and Petrochemicals Limited (MRPL), a refinery at Mangalore with a capacity of 9 MMTPA. Subject owns the country's Lube Refinery with a capacity of 335,000 Metric Tonnes. The Company’s products and services include Refineries, aviation, bulk fuels and specialities, international trade, liquefied petroleum gas (LPG) - HP gas, Lubes - HP lubes. The Company’s subsidiaries include HPCL Biofuels Limited and HPCL-Mittal Energy Limited. For the fiscal year ended 31 March 2010, Subject's revenues decreased 13% to RS1133B. Net income increased 95% to RS14.75B. Revenues reflect a decrease in income from Downstream Petroleum business division. Net income was offset by a fall in consumption of raw materials, lower purchase of products for resale expenses and a decrease in borrowing cost of the company.

 

 

BOARD OF DIRECTORS

 

Mr. S. Roy Choudhury - Executive Chairman of the Board, Managing Director          

 

Mr. S. Roy Choudhury is Executive Chairman of the Board, Managing Director of subject. He served as Director - Marketing of the Company till July 04, 2011. He is a Mechanical Engineer from the University of Assam. He commenced his career in the Petroleum Refining Industry with Assam Oil Company, Digboi, a subsidiary of Burma Oil Company. Shri. S Roy Choudhury joined subject on June 21, 1982 as a Construction Engineer Zone). He has held various positions in the Company in Refinery, Marketing (Operations), Projects and Sales Division. Those include positions such as General Manager (Supply, Operations and Distribution), General Manager (Pipelines), General Manager-Sales (West Zone). He was holding the position of Executive Director-Direct Sales, prior to his appointment as Director- Marketing. He is credited with creating a Pipelines Division in HPCL and completed several Pipeline Projects. Also he was responsible for smooth transition from APM to Non-APM era in terms of Product Supply and Distribution.

 

Education

BE Mechanical Engineering, Assam University

 

 

Mr. L. N. Gupta - Non-Executive Director

 

Mr. L. N. Gupta is Non-Executive Director of subject since June 25, 2008. Mr. Gupta has joined as a Joint Secretary (Refineries) in the Ministry of Petroleum and Natural Gas. He is an IAS Officer and has done his M.A. in (Economics) and MBA from Birmingham University. He served in the Government of Orissa as Sub Collector, Deogarh, Project Officer, DRDA, Sundergarh, Managing Director, OSTC/Orissa Textile Mills Limited, Choudwar. He has also served as a Deputy Secretary to the Government of India, Department of Personnel and Training, Vice Chairman, Bhubaneswar Development Authority and Administrator, Bhubaneswar Municipal Corporation, Revenue Development Commissioner (Central), Cuttack, Chairman and MD, Orissa Industrial Infrastructure Development Corporation, Commissioner cum Secretary, Department of Steel and Mines, Chairman and MD, Orissa Hydro Power Corporation and Resident Commissioner, Government of Orissa, New Delhi.

 

Education

MBA , University of Birmingham

 

 

Mr. Bhaswar Mukherjee - Director - Finance, Whole Time Director

 

Mr. Bhaswar Mukherjee is Director - Finance, Whole Time Director of subject since February 01, 2008. He took charge as Director-Finance of HPCL effective February 01, 2008. Mr. Mukherjee is a fellow member of the Institute of Chartered Accountants of India. During his career of over 30 years in the organisation, he has headed several functions in Finance, Internal Audit and Human Resource Development. He has driven the strategy initiative of Balanced Scorecard. He is also a Director on the Board of Joint Venture Companies of subject. Mr. B. Mukherjee has been actively participating in various seminars and workshops, both at national and international levels.

 

 

Mr. K. Murali - Director - Refineries, Whole Time Director

 

Mr. K. Murali is Director - Refineries, Whole Time Director of subject. He started his career with erstwhile Caltex Oil Company at Visakhapatnam which was later nationalized and merged with Hindustan Petroleum Corporation Limited. During his long career spanning more than 30 years with subject, he has handled critical positions in the organization. Shri K. Murali has wide experience in refinery operations. He worked at various levels in the refinery positions. He headed both the Refineries of subject at Mumbai and Visakhapatnam. During his tenure as head of Mumbai Refinery, the performance registered improvement in all areas of operations. Low cost de-bottlenecking of units was undertaken and path breaking decision and making decision to utilize indigenous R and D for commercial applications in meeting units capacity and utilization by 20% with concurrent reduction in operation expenses upto 10%. As Head of Corporate R and D, development project for subject, he has drafted the proposals and strategies which are under implementation. As Director – Refineries of subject, he has several plans and ideas to bring in world class competitiveness to both the refineries. He was instrumental in strategizing and preparation of initial Detailed Project Report for subject Joint Venture Refinery in Bhatinda, Punjab.

 

 

Mr. Anil Razdan - Non-Executive Independent Director

 

Education

LLB , University of Delhi

BS Physics, University of Delhi

 

 

Mr. S. K. Roongta - Non-Executive Independent Director

 

Education

BE , Birla Institute of Technology and Science, Pilani

 

 

Dr. V. Vizia Saradhi - Director - Human Resources, Whole Time Director

 

Dr. V. Vizia Saradhi is Director - Human Resources, Whole Time Director of subject. He has done Graduation and Post Graduation in Industrial Relations and Personnel Management from University of Andhra Pradesh. He joined subject in December 1979. Before joining subject, he had 4 years of experience in Bharat Heavy Plate and Vessels Limited. He has had a wide exposure to the Petroleum Industry over 28 years in Human Resources and Industrial Relations in Refineries, Marketing and Corporate Divisions of subject. Prior to taking over as Director (HR), Dr. Saradhi was Executive Director – Industrial Relations of subject.


Education

Personnel Management and Industrial Relations, University of Andhra Pradesh

 

 

Dr. Gitesh K. Shah - Non-Executive Independent Director

 

Dr. Gitesh K. Shah is Non-Executive Independent Director of subject. He is a, former Chairman of the Gujarat Alkalies and Chemicals Limited (GACL) did his M.Sc., Ph.D., D.Sc in Organic Chemistry. The world known London based the Royal Society of Chemistry honoured Dr. Shah with Chartered Scientist, Chartered Chemist and Fellow of the Royal Society of Chemistry (C.Sci., C.Chem., F.R.S.C.). He is also member of the Dr. Vikram Sarabhai Award Committee. Dr. Gitesh K. Shah noted Technocrat-Cum-Management has experience of 20 years in the field of Petrochemical, Chem-informatics, Bio-informatics and Nano–Technology. He has to his credit 18 research papers in international journals in the field of Chemistry and Nano– Technology. He is Chairman of Harita Projects Private Limited, Company engaged in Infrastructure Projects and Non– Molecules.


Education

PHD Organic Chemistry, Gujarat University

MS Organic Chemistry, Gujarat University

 

 

Mr. Pradeep Kumar Sinha - Non-Executive Director

 

Mr. Pradeep Kumar Sinha is Non-Executive Director of subject. He is Additional Secretary and Financial Advisor, Ministry of Petroleum and Natural Gas is a Post Graduate from Delhi School of Economics and an IAS officer of LJ.P. Cadre. Mr. Sinha also holds M.Phil in Social Sciences and Masters Diploma in Public Administration. Mr. Sinha has served both in the Central and State Governments, including as District Magistrate of launpur and Agra Districts, Commissioner of Varanasi Division and Principal Secretary, Irrigation, Uttar Pradesh. Mr. Sinha has also served in the Ministry of Power, Department of Youth Affairs and Sports in the Central Government before joining MOP and NG.


Education

Economics, University of Delhi

 

Mrs. Nishi Vasudeva - Director - Marketing, Whole Time Director

 

Education

BA , Indian Institute of Management, Kolkata

 

 

 

PRESS RELEASES

 

HPCL BAGS THE SCOPE CSR AWARD FOR THE YEAR 2010-11

 

NEW DELHI 

 

HPCL has bagged the prestigious SCOPE Award for Corporate Social Responsibility and Responsiveness Commendation Certificate for the year 2010-11 which was received by Chairman and Managing Director of HPCL Shri S. Roy Choudhury from Her Excellency The President of India Smt. Pratibha Devisingh Patil

 

The function for the SCOPE meritorious awards in specialized fields for the year 2010-11 was organised on the occasion of “Public Sector Day” Celebrations, jointly by Department of Public Enterprises (DPE) and Standing Conference of Public Enterprises(SCOPE) in Delhi recently at Vigyan Bhawan, New Delhi. The Minister for Heavy Industries and Public Enterprises Shri Praful Patel, Chairman BRPSE Dr. Nitish Sengupta, Secretary Department of Public Enterprises Shri O. P. Rawat, Chairman SCOPE Shri Arup Roy Choudhury and Director General SCOPE Dr. U.D. Choubey were present on the occasion.

 

The strong panel of Judges was chaired by Justice P. N. Bhagwati (former Chief Justice of India), Dr. Abid Hussain, former Civil Servant and Diplomat; Dr. M. B. Athreya, Renowned Management Consultant; Mr. M. A. Pathan, former Chairman, Indian Oil Corporation Limited; Mr. C. P. Jain, former Chairman NTPC and SCOPE and Dr. U. D. Choubey, DG, SCOPE unanimously decided the awards based on evaluation of record entries numbering 110 this year made by world renowned Consultant, Deloitte Touche Tohmatsu Private Limited.

 

The evaluation was done on the basic concept and philosophy of the corporate towards CSR, enunciation and documentation of the policy, involvement of employees at all levels of the corporate in the CSR initiative, consistency and perseverance in the effort till the last intended beneficiary is touched. Weightage was also given to the major CSR projects, size, complexities involved, scheme, details;, major beneficiaries, execution and monitoring, impact assessment, beneficiary feedback etc.

 

 

Mr. Pushp K Joshi assumes charge as Director- Human Resources

 

Mumbai, 1st August 2012 

 

Shri Pushp Kumar Joshi has assumed charge as Director-Human Resources of Hindustan Petroleum Corporation Limited, a Navratna and a Fortune 500 company. He takes over from Dr. V. Vizia Saradhi who superannuated on July 31, 2012. Prior to this, Shri Pushp Kumar Joshi was holding key Portfolios in Human Resources function viz. Executive Director – HRD and Head –HR of Marketing Division.

 

An Alumni of XLRI, Jamshedpur and a Bachelor of Law, Shri Pushp Kumar Joshi has held various positions in Human Resources and Industrial Relations functions in Corporate, Marketing and Refineries divisions of HPCL, spearheading HR practices with strong business focus while bringing contemporary approaches to the fore.

 

 

 

OFFICIAL STATEMENT OF THE CMDS OF IOCL, HPCL AND BPCL

 

04 June, 2012

 

It is noted that a false impression is being created in some sections that the Oil Marketing Companies (OMCs) have recorded huge profits in 2011-12. On the contrary, the OMCs have been incurring huge losses. The companies incurred losses due to sale of three products, namely Diesel, Domestic LPG and PDS Kerosene at highly subsidized prices. It is only after the assistance of Rs.835000.000 Millions from the Government and Rs.550000.000 Millions from the upstream oil companies (ONGC, OIL and GAIL), totaling Rs.1385000.000 Millions, the three Public Sector OMCs could declare nominal profits. Had this assistance not been given, the three OMCs would have reported a combined loss of Rs.1320000.000 Millions.

 

It is worthwhile to mention that the three OMCs together had a combined turnover of Rs.8330000.000 during 2011-12. Against this, they had declared a combined profit of mere Rs. 6177 core, which is only 0.7% of their turnover. This level of profit is not adequate for OMCs to enable them to incur huge expenditure on continuous modernization, making available environmentally compliant fuels, laying of pipelines, enhancing storage, and development of other infrastructure. It is important to note that the OMCs are enabled to announce at least nominal profits for maintaining their blue chip status and credit ratings at the global level.

 

Because of the highly subsidized sale of Diesel, Domestic LPG and PDS Kerosene, the OMCs are under huge financial strain. Their combined borrowings have gone up from Rs.970000.000 Millions in March 2011 to a whopping amount of Rs.1280000.000 Millions in March 2012 . Similarly, their interest burden has gone up from Rs. 47000.000 Millions in 2010-11 to Rs. 95000.000 in 2011-12. If the government and upstream assistance was not made available to the OMCs, to make good their losses, they would not have been in a position to raise necessary finance to purchase crude from the international market and maintain uninterrupted supply of petroleum products in the country.

 

Although petrol has been a deregulated product since 26.6.2010, the OMCs have incurred losses of Rs.23000.000 Millions in 2010-11 and Rs.49000.000 Millions in 2011-12 and Rs.23000.000 Millions in the current financial year (till 23rd May, 2012). Because of the inability of the OMCs to increase the price of petrol for long time, the situation became such that the correction in the price of petrol was absolutely unavoidable.

 

It may be noted that the average price of crude oil was only USD 85/bbl in 2010-11 which went up to USD 112/bbl in 2011-12, an increase of 32%. It is pertinent to mention that the cost of crude oil and products imported / bought from other companies constitutes about 91-93% of the total cost incurred by the OMCs. Therefore, the propaganda that the OMCs are incurring high administrative expenses is unfounded.

 

Apart from the above, the value of rupee has depreciated from Rs. 46 per USD in Sept 2011 to Rs 54.5 per USD in May 2012. The double disadvantage of increase in oil prices and sharp rupee depreciation have affected the oil sector in India on an unprecedented scale. Both the consumers and commentators are requested to understand the special difficulty the country is facing at present.

 

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No 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.55.34

UK Pound

1

Rs.86.45

Euro

1

Rs.68.04

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

9

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

9

--CREDIT LINES

1~10

9

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

78

 

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

 

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.