MIRA INFORM REPORT

 

 

Report Date :

21.08.2012

 

IDENTIFICATION DETAILS

 

Name :

CHENNAI PETROLEUM CORPORATION LIMITED (w.e.f. June 13, 2000)

 

 

Formerly Known As :

MADRAS REFINERIES LIMITED

 

 

Registered Office :

No.536, Anna Salai, Teynampet, Chennai - 600 018, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

30.12.1965

 

 

Com. Reg. No.:

18-005389

 

 

Capital Investment / Paid-up Capital :

Rs.1490.046 millions

 

 

CIN No.:

[Company Identification No.]

L40101TN1965GOI005389

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEC04961F

 

 

PAN No.:

[Permanent Account No.]

AAACM4392C

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer of Fuel Products, Lubricants and Additives.

 

 

No. of Employees :

Approximately 1745 (comprising 787 supervisors and 958 non-supervisors)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (70)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 151725000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject was formed as a joint venture between the Government of India, AMOCO and National Iranian Oil Company. It is a well established and a reputed company having fine track records.

 

There appears some dip in the profitability during 2012. Financial position of the company appears to be sound. Directors are reported to be well experienced and knowledge people.

 

Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and per commitments.

 

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

 

NOTES :

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

 

ECGC Country Risk Classification List – June 30, 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

P1+ (Short term loan)

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

January 05, 2011

 

 

Rating Agency Name

CRISIL

Rating

P1+ (Bank Guarantee)

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

January 05, 2011

 

 

Rating Agency Name

CRISIL

Rating

AAA (Term loan facility)

Rating Explanation

Highest degree of safety and lowest credit risk.

Date

January 05, 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 Office :

No.536, Anna Salai, Teynampet, Chennai - 600 018, Tamilnadu, India

Tel. No.:

91-44-24349542

Fax No.:

91-44-24341753

E-Mail :

sld@cpcl.co.in

Website :

http://www.cpcl.co.in

 

 

Refinery 1 :

Manali Refinery, Manali, Chennai - 600 068, Tamilnadu, India

Tel. No.:

91-44-25944000

Fax No.:

91-44-25941047

 

 

Refinery 2 :

Cauvery Basin Refinery, Panangudi Village, Nagapattinam District – 611 002, Tamilnadu, India

Tel. No.:

91-4365-256402

Fax No.:

91-4365-250784

 

 

DIRECTORS

 

As on 31.03.2012

 

Name :

Mr. R.S. Butola

Designation :

Chairman

 

 

Name :

Mr. A.S. Basu

Designation :

Managing Director

 

 

Name :

Mr. S. Venkataramana

Designation :

Director (Operations)

 

 

Name :

Ms. D. Lilly

Designation :

Director (Finance)

 

 

Name :

Mr. T.S. Ramachandran

Designation :

Director (Technical)

 

 

Name :

Mr. Rajkumar Ghosh

Designation :

Director (Refineries) - Indian Oil Corporation Limited

 

 

Name :

Mr. P.K. Singh

Designation :

Director (R&A) Ministry of Petroleum and Natural Gas

 

 

Name :

Mr. Mansoor Rad

Designation :

Finance Director - Naftiran Intertrade Company Limited

 

 

Name :

Mr. M.H. Ghodsi

Designation :

Director - Naftiran Intertrade Company Limited

 

 

Name :

Mr. L. Sabaretnam

Designation :

Director - Coromandel Sugars Limited

 

 

Name :

Mr. Venkatraman Srinivasan

Designation :

Senior Partner, V. Sankar Aiyar and Company, Chartered Accountants

 

 

Name :

Prof. M.S. Ananth

Designation :

Visiting Professor, Department of Chemical Engg. Indian Institute of Science, Bangalore

 

 

KEY EXECUTIVES

 

Name :

Mr. S. Vaidyanathan

Designation :

Public Information Officer - Senior Manager (Corporate Communications)

 

 

EXECUTIVES :

 

Name :

Mr. V. Srinivasan

Designation :

General Manager (Corporate Planning)

 

 

Name :

Mr. R. Chidambaram

Designation :

General Manager (Cauvery Basin Refinery)

 

 

Name :

Mr. A. Paul Christudass

Designation :

General Manager (Finance)

 

 

Name :

Mr. S. Asokan

Designation :

General Manager (Human Resources)

 

 

Name :

Mr. S. Visveswaran

Designation :

General Manager (Operations)

 

 

Name :

Mr. G. Aravindan

Designation :

General Manager (Maintenance)

 

 

Name :

Mr. N. Nachiappan

Designation :

General Manager (Technical)

 

 

Name :

Mr. A. Kumar

Designation :

Deputy General Manager (Projects)

 

 

Name :

Mr. S. Thangavelu

Designation :

Deputy General Manager (Materials and Contracts)

 

 

Name :

Mr. M. Chinnakkan

Designation :

Chief Vigilance Officer i/c

 

 

Name :

Mr. M. Sankaranarayanan

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

 

 

Bodies Corporate

77,265,200

51.89

Sub Total

77,265,200

51.89

(2) Foreign

 

 

Bodies Corporate

22,932,900

15.40

Sub Total

22,932,900

15.40

Total shareholding of Promoter and Promoter Group (A)

100,198,100

67.29

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

2,329,766

1.56

Financial Institutions / Banks

20,808,655

13.97

Foreign Institutional Investors

4,091,757

2.75

Sub Total

27,230,178

18.29

(2) Non-Institutions

 

 

Bodies Corporate

10,830,612

7.27

Individuals

 

 

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

7,984,987

5.36

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

1,494,363

1.00

Any Others (Specify)

1,173,160

0.79

Non Resident Indians

1,122,860

0.75

Trusts

18,120

0.01

Clearing Members

31,380

0.02

Foreign Nationals

200

-

NRI Company

600

-

Sub Total

21,483,122

14.43

Total Public shareholding (B)

48,713,300

32.71

Total (A)+(B)

148,911,400

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)

148,911,400

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Fuel Products, Lubricants and Additives.

 

 

Products :

Item Code No. (ITC Code)

2710

Product Description

High Speed Diesel

Item Code No. (ITC Code)

2710

Product Description

Motor Spirit

Item Code No. (ITC Code)

2710

Product Description

Furnace Oil

 

 

PRODUCTION STATUS (AS ON 31.03.2012)

(Figures in Lakhs)

Particulars

Unit

Licensed Capacity

 

Installed Capacity

Actual Production

Crude Processing

MTs

115.00

115.00

105.57

Propylene Recovery Unit

MTs

0.30

0.30

0.33 (Note A)

Wax Plant

MTs

0.30

0.30

0.24 (Note A)

 

Note:

A. Represents finished petroleum products

 

GENERAL INFORMATION

 

No. of Employees :

Approximately 1745 (comprising 787 supervisors and 958 non-supervisors)

 

 

Bankers :

State Bank of India, Corporate Accounts Group Branch, Greams Road, Chennai - 600 008, Tamilnadu, India

 

 

Facilities :

Secured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Term Loans:

 

 

a) From Banks

 

 

a) From Banks

Foreign Currency Loan -

(USD 19.24 Million; 2011 - USD 30.24 Million)

979.217

1344.444

Indian Currency Loan

2000.000

0.000

SHORT-TERM BORROWINGS

 

 

Loans repayable on demand

 

 

From Banks:

 

 

(a) Working Capital Demand Loan

3000.000

400.000

(b) Cash Credit

2290.729

14.262

Total

8269.946

1758.706

 

Unsecured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Term Loans:

 

 

a) From Banks

3000.000

0.000

b) From Others

 

 

Oil Industry Development Board

2366.250

4252.500

SHORT-TERM BORROWINGS

 

 

Loans repayable on demand

From Banks/Financial Institutions:

 

 

a) In Foreign Currency

 

 

Packing credit foreign currency loan

(USD : 287.93 Million; 2011 : 354 USD Million)

14649.879

15788.400

Buyers' Credit

(USD : 0.87 Million; 2011 : Nil )

44.035

0.000

b) In Rupees

 

 

Book Overdraft

445.501

39.437

Working Capital Demand Loan

2002.000

18000.000

Commercial Paper

3500.000

0.000

Total

26007.665

38080.337

 

LONG TERM BORROWINGS (Notes)

 

Nature of Security and Terms of repayment for Secured Loans

 

Nature of Security

Terms of Repayment

(i) Term Loan from EXIM Bank - First Pari Passu Charge on select movable fixed assets to the extent of Rs.2000.000 millions

Principal along with interest repayable in 16 equal quarterly installments after one year moratorium at six months Libor plus 250 bps. Out of the 16 equal

quarterly installments (EQI), 5 EQI have already been paid on the respective due dates and remaining 11

EQI are outstanding on the Balance sheet date.

(ii) Term Loan from State Bank of India - First Pari passu Charge on select movable fixed assets to the extent of Rs.2000.000 millions

Repayable in single bullet payment in the financial year 2014-15. Floating Rate of Interest: Base rate + 75 bps payable monthly.

 

Terms of repayment for Unsecured Loans

 

Borrowings

Terms of Repayment

(iii) Term Loan from Federal Bank

Repayable in a single bullet payment in the financial year 2014-15. Floating Rate of Interest: Base rate + 25 bps payable monthly.

(iv) Term Loans from Oil Industry Development Board

1. Rs.500.000 millions is due from the loans drawn during Financial Year 2002-03.

Repayable in 8 equal annual installments after a moratorium of 2 years. Out of the 8 equal annual installments (EAI), 7 EAI have already been paid on the respective due dates and remaining 1 EAI is outstanding on the Balance sheet date. Rate of interest - 6.5% p.a. payable quarterly.

2. Rs.500.000 millions is due from the loan drawn on 2nd April 2003

Repayable in 8 equal annual installments after a moratorium of 2 years. Out of the 8 equal annual installments (EAI), 6 EAI have already been paid on the respective due dates and the remaining 2 EAI are outstanding on the Balance sheet date. Rate of interest - 6.5% p.a. payable quarterly.

3. Rs.312.500 millions is due from the loan drawn on 21st April 2003

Repayable in 8 equal annual installments after a moratorium of 2 years. Out of the 8 equal annual installments (EAI), 6 EAI have already been paid on the respective due dates and the remaining 2 EAI are outstanding on the Balance sheet date. Rate of interest - 6.5% p.a payable quarterly.

4. Rs.2940.000 millions is due from the loan drawn on 31st March 2010

Repayable in 4 equal annual installments after a moratorium of 1 year. Out of 4 EAI, 3 are outstanding on the Balance Sheet date; Rate of interest - 7.26% p.a. payable quarterly.

 

SHORT-TERM BORROWINGS (Notes)

(i) Against hypothecation of inventories, book - debts, outstanding monies, receivables present and future

of the extent of Rs.19750.000  millions with State Bank of India (2011: Rs.19750.000 millions)

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name 1 :

S. Venkatram and Company

Chartered Accountants

Address :

Old No.285, New No.218, TTK Road, Alwarpet, Chennai - 600 018, Tamilnadu, India

 

 

Auditors :

 

Name 2 :

Chandran and Raman

Chartered Accountants

Address :

No.2, Dr. Radhakrishnan Road, 2nd Street, Myalpore, Chennai - 600 004, Tamilnadu, India

 

 

Cost Auditors :

 

Name :

Mr. K. Suryanarayanan

Cost Accountant

Address :

Flat A, Brindhavan Apartments, No.1, Poes Road, 4th Street, Teynampet, Chennai - 600 018, Tamilnadu, India

 

 

Joint Venture Companies :
  • Indian Additives Limited
  • National Aromatics and Petrochemicals Corporation Limited

 

 

Entity over which KMP exercise significant influence :

CPCL Educational Trust

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

400000000

Equity Shares

Rs.10/- each

Rs.4000.000 millions

 

 

 

 

 

Issued Capital :

No. of Shares

Type

Value

Amount

170000000

Equity Shares

Rs.10/- each

Rs.1700.000 millions

 

 

 

 

 

 

Subscribed, Called-up & Paid-up Capital :

No. of Shares

Type

Value

Amount

148911400

Equity Shares

Rs.10/- each

Rs.1489.114 millions

 

Add: Forfeited Shares (amount originally paid up)

 

Rs.0.932 million

 

Total

 

Rs.1490.046 millions

 

 

 

 

 

(i). As per the Formation Agreement entered into between the promoters, an offer is to be made to the Naftiran Intertrade Company Limited (NICO), an affiliate of National Iranian Oil Company (NIOC) in any issue of the Capital in proportion to the shares held by them at the time of such issue to enable them to maintain their shareholding at the existing percentage.

 

(4) Reconciliation of No. of Shares (Opening and Closing)

 

 

March 31, 2012

Opening Balance

148911400

Add :Bonus Shares issued during the year

--

Add :Shares issued on Amalgamation

--

Less : Shares bought back

--

Closing Balance

148911400

 

(5) Rights, preferences and restrictions attached to shares

Equity Shares: The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company in proportion to their shareholding.

 

(6) Shares held by Holding Company

 

 

March 31, 2012

77265200 Equity Shares of Rs.10 each (51.89%) fully paid-up, held by Indian Oil Corporation Limited, the Holding Company.

Rs.772.652 millions

 

(7) Details of shareholders holding more than 5% shares as on 31.03.2012

 

S. No.

Name of Shareholder

Number of shares held

Percentage of Holding

a)

Indian Oil Corporation Limited

77265200

51.89

b)

Naftiran Intertrade Company Limited

22932900

15.40

c)

Bajaj Allianz Life Insurance Company Limited

7607490

5.11

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

1490.046

1490.046

1490.046

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

36441.323

36169.210

33130.811

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

37931.369

37659.256

34620.857

LOAN FUNDS

 

 

 

1] Secured Loans

8269.946

1758.706

4068.966

2] Unsecured Loans

26007.665

38080.337

36709.923

TOTAL BORROWING

34277.611

39839.043

40778.889

DEFERRED TAX LIABILITIES

6379.397

6044.722

5759.545

 

 

 

 

TOTAL

78588.377

83543.021

81159.291

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

37211.655

34414.060

29291.320

Capital work-in-progress

10075.939

11271.846

12807.393

 

 

 

 

INVESTMENT

236.302

225.045

234.289

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
63597.164

51129.827

43782.408

 

Sundry Debtors
34307.497

19839.812

8543.101

 

Cash & Bank Balances
386.032

121.216

143.418

 

Other Current Assets
42.677

115.999

0.186

 

Loans & Advances
3816.420

5452.095

4528.066

Total Current Assets
102149.790

76658.949

56997.179

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
60266.029

24753.289

11630.900

 

Other Current Liabilities
9041.292

11516.421

3839.017

 

Provisions
1777.988

2757.169

2700.973

Total Current Liabilities
71085.309

39026.879

18170.890

Net Current Assets
31064.481

37632.070

38826.289

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

78588.377

83543.021

81159.291

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from Operations (Net)

408078.598

331413.144

249726.284

 

 

Other Income

646.403

825.748

2350.967

 

 

TOTAL                                     (A)

408725.001

332238.892

252077.251

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

393401.939

310506.212

241194.638

 

 

Purchase of Stock-in-Trade

3488.642

4681.968

 

 

 

Changes in Inventories of finished goods and Work-in-progress [(-) Increase / + Decrease]

(5373.872)

(4466.116)

 

 

 

Employee benefits expense

2532.136

2402.232

 

 

 

Other expenses

10018.271

5789.400

 

 

 

Income /Expenses pertaining to previous years (Net)

92.054

0.741

 

 

 

TOTAL                                     (B)

404159.170

318914.437

241194.638

 

 

 

 

 

Less

PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

4565.831

13324.455

10882.613

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

2493.794

2544.550

1373.553

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

2072.037

10779.905

9509.060

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

3654.192

3144.735

2671.419

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                  (G)

(1582.155)

7635.170

6837.641

 

 

 

 

 

Less

TAX                                                                  (H)

(2200.405)

2519.948

805.446

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

618.250

5115.222

6032.195

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed Dividend

NA

1786.937

1786.937

 

 

Dividend Distribution Tax

NA

289.886

296.788

 

 

Tax on Dividend

NA

3038.399

3948.470

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Petroleum Products

1566.657

1132.794

0.000

 

TOTAL EARNINGS

1566.657

1132.794

0.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Crude Oil

357690.988

262076.364

210413.762

 

 

Capital Goods

255.653

107.926

870.999

 

 

Revenue Stores, Component, Spare and Chemicals

106.013

191.865

353.824

 

TOTAL IMPORTS

358052.654

262376.155

211638.585

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

4.15

34.35

40.51

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2012

(1st Quarter)

Net Sales

 

 

110432.000

Total Expenditure

 

 

118237.100

PBIDT (Excl OI)

 

 

(7805.100)

Other Income

 

 

8.300

Operating Profit

 

 

(7796.800)

Interest

 

 

1093.300

Exceptional Items

 

 

0.000

PBDT

 

 

(8890.100)

Depreciation

 

 

883.500

Profit Before Tax

 

 

(9773.600)

Tax

 

 

(84.700)

Provisions and contingencies

 

 

0.000

Profit After Tax

 

 

(9688.900)

Extraordinary Items

 

 

0.000

Prior Period Expenses

 

 

0.000

Other Adjustments

 

 

0.000

Net Profit

 

 

(9688.900)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
0.15

1.54

2.39

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(0.39)

2.30

2.74

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(1.14)

6.87

7.92

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.04)

0.20

0.20

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.78

2.09

1.70

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.44

1.96

3.14

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

No

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

Yes

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

No

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

 

 


PERFORMANCE REVIEW

 

Significant Highlights

 

• Highest ever turnover of Rs.453650.000 millions achieved.

 

• Total Thruput of 10557 TMT achieved.

 

• Carbon Foot Printing exercise was completed for Manali and CBR refineries as part of Sustainable development activities.

 

• Achieved the lowest ever energy index of 67.2 MBTU/BBL/NRGF for Manali Refinery and 108.67 MBN for Cauvery Basin Refinery.

 

• Manali Refinery successfully changed the solvent from Sulfolane to NMP for production of hexane to meet the stringent product quality.

 

• Received Income Tax refund of Rs.2760.000 millions based on the favourable order given by CIT (Appeals)for Sec.80 IB claim on Refinery III profits for Assessment Year 2008-09.

 

• DHDT Unit commissioned successfully in Manali.

 

• Installation of Oxygen enrichment facility jointly developed with EIL in SRU, Train B resulting in enhanced OHCU thruput.

 

• 20” Crude oil interlink pipeline between Chidambaranar Oil Jetty (COJ) and Marg Karaikkal Port successfully commissioned in February 2012.

 

• Cauvery Basin Refinery has received the “Excellence in Consistent TPM Commitment Award” for the year 2011 from Japan Institute of Plant Maintenance (JIPM).

 

• Cauvery Basin Refinery has received the prestigious National Safety Award for 2009 instituted by the Director General, Factory Advice Services and Labour Institutes, Ministry of Labour and Employment, Government of India.

 

• Won the PSE Excellence Awards instituted by the Department of Public Enterprises and Indian Chamber of Commerce for the year 2011 for “Environmental Excellence and Sustainability Development” and Good Corporate Governance.

 

• Won the CII Excellence in Water Management Award for the year 2011.

 

Manali Refinery – Salient features of Operations

 

• Manali Refinery achieved a total Crude thruput of 9.945 MMT as compared to 10.045 MMT in the previous year.

 

• Achieved the highest distillate yield of 70.3 wt%.

 

• Achieved the lowest ever energy index of 67.2 MBTU/BBL/NRGF by maximising thruput in secondary units.

 

• Maximized the production of food grade hexane by additional 40% through process improvements.

 

• Completed health checkup for “Excellence in Consistent TPM Commitment Award” for 2011.

 

• Highest ever production of the following products:

 

   (Figures in TMT)

Product

2011-12

Previous Best

High Speed Diesel

3911

3863 (2010-11)

Motor Spirit

1020

860.0 (2010-11)

 

• Procured three new low sulfur crudes viz., Espoir from Ivory Coast, Palanca Blend from Angola and Essider from Libya.

 

• One new Crude was added to the basket: viz., Okwori, new Low Sulfur Trial crude from Nigeria.

 

Cauvery Basin Refinery (CBR) – Salient features of Operations

 

• Processed 611 TMT of Crude as compared to 703.3 TMT in the previous year.

 

• Achieved the highest ever distillate yield of 86.64 wt % on crude in 2011-12 (Previous best: 83.2 wt. % in 2010-11).

 

• Two nos. of Continuous Ambient Air Quality Monitoring stations and one online Stack Monitoring station commissioned for better monitoring and control of various environmental parameters.

 

• Introduced new product namely High Flash High Speed Diesel.

 

• Successfully conducted Green House Gas Emission Survey.

 

MoU PERFORMANCE

 

The Company signed a MoU with Indian Oil Corporation Limited, the holding Company for the year 2011-12, as per the guidelines issued by the Department of Public Enterprises (DPE). The provisional rating for the year 2011-12 is “1.43”.

 

MARKETING

 

Majority of the products of the Company like MS, HSD, LPG, SKO, etc. are marketed by Indian Oil

Corporation Limited, the holding Company.

 

CPCL directly markets some of the Speciality products and highest direct sales achieved during 2011-12 as compared to previous year are given below:

 

                                         (Quantity in TMT)

S. No.

Product

2010-11

2011-12

1

Naphtha

211.66

218.51

2

Sulphur

52.02

56.97

3

Propane

2.06

2.14

4

PBFS

7.14

7.53

 

During the year, seven Customer Meets were conducted at various locations for Wax, Sulphur and other direct customers and 19 new customers were registered for the supply of Sulphur, Hexane, Propane and Propylene.

 

PROJECTS

 

The Company made an investment of Rs.4901.800 millions on various projects during 2011-12 (cumulative expenditure of Rs.26402.300 millions upto 2011-12), out of the approved outlay of Rs.35750.000 millions for the XI Plan (2007-2012).

 

Completed Projects

 

Euro-IV Project – DHDT Units:

To produce MS/HSD meeting Euro-IV specifications for Chennai and Bangalore and Euro-III equivalent specifications for the rest of the locations, the company has undertaken Auto fuel Quality Upgradation Project at an estimated cost of Rs.26156.900 million in Manali Refinery as per the Auto Fuel Policy of the Government of India.

 

The Diesel Hydro treater unit (DHDT) with a capacity of 1.8 MMTPA was commissioned in May 2011.

 

CBR 20” Crude line

Cauvery Basin Refinery of the Company has successfully commissioned a 20” interlink crude oil pipeline between Karaikkal Port and CPCL-CBR’s Chidambaranar Oil Jetty at a cost of Rs.108.600 millions. This project will enable CBR to receive crude oil in higher parcel sizes resulting in reduction in the transportation and handling cost of crude and the flexibility to utilize other crude oil tankers of larger sizes.

 

Projects Under Implementation:

 

Euro-IV Project:

The utilities and off-site facilities of Euro-IV auto fuel quality upgradation project are in various stages of execution. A new Hydrogen Generation Unit to enhance the existing Hydrogen Generation capacity is under commissioning stage. The revamp of the Effluent Treatment Plant-II is in the final stage of mechanical completion and is expected to be commissioned in October 2012.

 

Revamp of existing CDU/VDU-II from 3.7 to 4.3 MMTPA

A project to enhance the unit capacity from existing 3.7 MMTPA to 4.3 MMTPA is under implementation at a cost of Rs.3339.900 millions. This project is expected to be completed during the second quarter of the financial year 2012-13.

 

Resid Upgradation Project

For improving the distillate yield of the Manali refinery and to process increased level of high Sulphur bearing Crudes, approval was accorded for implementation of a Resid Upgradation Project at an estimated cost of Rs.31103.600 millions. This project is scheduled to be completed within 33 months from the date of Environmental Clearance, which is delayed mainly due to non lifting of ban imposed by MoE&F on new investments in the Manali Industrial Region.

 

New Crude Oil Pipeline

To overcome the risks associated with the transportation of Crude Oil through the existing 30” Crude Oil Pipeline from Chennai Port to Manali Refinery the Company is implementing a new 42” Crude Oil Pipeline Project at a cost of Rs.1260.000 millions. All engineering activities have been completed along the route of the proposed port connectivity road project, Coastal Regulatory Zone clearance is awaited for this project.

 

2 X 10.5 TKL Crude Oil Storage tanks at CBR

 

A project for construction of two Crude oil storage tanks of 10500 KL each is being implemented to have better operational flexibility in Crude receipt and storage.

 

New Projects

 

Refinery Expansion Project:

An expansion project to increase the capacity of Manali Refinery to 17.5 MMTPA by installing a 6.0 MMTPA unit with matching secondary processing facilities is under conceptualization. The process configuration is under finalisation.

 

Construction of Mounded Bullet:

With the objective to promote safety and reduce the environmental impact, the Company proposes to install a mounded gas storage facility in replacement of the existing bullets for LPG, Propane and Propylene.

 

Diesel Hydro Treating facilities:

It is proposed to provide diesel hydro treating facilities at Cauvery Basin Refinery by shifting the idle equipments at Manali Refinery and also by providing other associated facilities for removal of Sulfur from diesel is envisaged. The project is expected to increase the capacity utilization of CBR and improve refinery margins by enabling processing of medium sulfur crudes. Detailed Feasibility Report was completed by M/s. Projects and Development (India) Limited.

 

Naphtha Reforming Facilities:

A proposal is also envisaged for shifting of idle assets at Manali Refinery to Cauvery Basin Refinery and provision of other associated facilities for reforming of Naphtha. The project is expected to improve the refinery margins and enable production and supply of MS from CBR.

 

INDIAN ADDITIVES LIMITED

Indian Additives Limited, was formed in the year 1989 as a joint venture between the Company and Chevron Chemical Company (now Chevron Oronite Company) in the year 1989 for manufacturing Lube Additives.

 

IAL achieved a turnover of Rs.4543.300 millions (provisional) during the year 2011-12, as against Rs.3752.800 millions in the previous year. The Profit after Tax for 2011-12 is Rs.357.600 millions as against Rs.374.500 millions in the previous year.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

World Oil Economy

The world economy was affected during the last few years due to slow down in US and European Union. As compared to the year 2011, the current year has seen some positive signals in Global economic development due to the measures taken by Advanced Countries for reviving the economy of European Union. Crude oil production rose marginally to 88.4 mb/d in 2011 from 87.3 mb/d in 2010. The oil demand rose to 89.1 mb/d in 2011 from 88.3 mb/d in 2010 still resulting in shortfall. The price of Crude Oil continued to be volatile due to political scenario in Lebanon, Egypt and Syria and also due to sanctions on Iran.

 

Indian Oil Economy

(i) Crude Oil Production:

Domestic crude production witnessed marginal increase during the year. After growing at 11.9% in 2010-11, crude oil production rose by meager 1% during 2011-12. However, the indigenous production of crude oil and natural gas is not adequate and the dependence on imports continues to be more than 75% of total crude oil consumption in the country. Many innovative actions are being taken up to boost the oil availability to the country including oil exploration activities in other countries.

 

(ii) Refining Capacity:

The Indian Refining industry has established as a major global player in the last 5 years. The refining capacity has increased from 148.96 MMTPA at the beginning of XI plan period i.e., 2007-08 to 213.2 MMTPA at the end of XI plan period as on 1.4.2012. With the commissioning of grass root refinery at Paradip with 15 MMTPA and other refining capacity expansion projects of existing refineries, the refining capacity in the country is expected to go up to 232 MMTPA by 2012-13. The refining capacity is further expected to reach 310.88 MMTPA by the end of XII plan period.

 

(iii) Product Demand:

The demand for petroleum products has increased from 141 MMTPA in 2010-11 to 147.9 MMTPA in 2011-12, registering a growth rate of 4.9%. Petroleum products consumption (inclusive of imports) growth accelerated to 4.9% (provisional number) from 2.3% in the previous year. Transportation fuels were the front runners, with diesel growth out pacing petrol. Consequent upon deregulation of MS and the rising crude oil prices, the price differential between the two major fuels widened significantly during the year. Further, over the years, the proportion of diesel passenger cars has increased and this trend is expected to continue, reinforced by the fuel price differentials. Moreover, in view of the constrained power supply situation, which accentuated during October-December 2011, there was sizeable growth in diesel consumption for running power gensets. The demand for petroleum products is expected to grow at 4.8 % per year during the XII plan period and reach 186.2 MMTPA by 2016-17. The demand for diesel will continue to be dominant followed by Motor spirit and LPG. However the demand for Natural Gas is expected to grow at a CAGR of 19.5% during the XII plan period, emphasizing the increasing demand for this environmentally clean fuel. With the limited availability of indigenous natural gas, the dependence on imported LNG is likely to go up.

 

(iv) Export Potential:

Currently, the export of Petroleum products are the highest in terms of value in the export basket of India. The export of Petroleum Products is touching a new high with exports expected to reach 83 MMTPA by 2016-17.

 

(v) Refining Margin:

The refining margin all over the world was severely impacted due to high volatility in the Crude and Product prices and lower cracks due to poor demand on account of slow down in European and US markets. As a consequence the margins of the Indian refinieries were also constrained.

 

(vi) Refining Margin / Profitability of the Company:

There is a severe impact on the Refining margin of the Company due to the following:

 

(a) Lower cracks on account of the external facts like high volatility in the crude price and lower cracks due to the economic slow down in various parts of the world.

 

(b)High Foreign Exchange loss due to unprecedented depreciation in Indian currency.

 

(c) Unexpected one-off expenditure incurred by the Company in freight and demurrage charges due to problems in Chennai Port.

 

(d)Increase in the Operating Cost.

 

The Company has initiated various measures to improve the Refining margins by expanding its crude basket and a plan to improve the bottom line by implementing projects like Resid Upgradation Project.

 

The Company has taken the responsibility of executing the repair works in Chennai Port on behalf of Chennai Port Trust on an emergency basis to overcome the problem of additional freight / demurrage.

 

With these action plans in place and with the human talent available in the Company, the Company is confident of improving the Refining margin in near future.

 

Risks, Concerns and Outlook:

The significant fluctuations in crude prices arising from geo political and economic issues is causing concerns on refining margins. The Energy Security issues require diversification of crude procurement sources. India still has Middle East dependency of 65% compared to China with 40% Middle East dependency. Securing supplies from other regions and increasing processing capability to handle heavier and difficult crudes will be required to meet the Energy Security needs. Significant investments will be required to increase energy efficiency and for reduction of emissions by Refineries.

 

The environmental clearances for new investments in capacity expansions and value addition project like Resid cracking have been delayed in Manali due to ban imposed by MoEF. The Industries in Manali area are continuously addressing these issues with several emission reduction programs and there is an need for clearances for further investments in this region to meet the ever growing demand for energy.

 

CONTINGENT LIABILITIES: (As on 31.03.2012)

 

a) Claims against the company not acknowledged as debts Rs.1710.390 millions.

 

These mainly include:

 

i) Rs.44.783 millions being the demands raised by Central Excise authorities.

 

ii) Rs.885.748 millions in respect of Sales Tax demands.

 

iii) Rs.618.838 millions in respect of Income Tax demands.

 

iv) Rs.88.688 millions relating to projects.

 

b) Interest/Penalty, if any, unascertainable, on the above claims is not considered.

 

c) Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs.6255.403 millions.

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2012

 

(Rs. in Millions)

Particulars

 

3 months ended

30.06.2012

Unaudited

1. Income from Operations

 

a) Gross Sales / Income from operations

121017.000

Less: Excise Duty

10636.700

Net Sales / Income from operations

110380.300

b) Other operation Income

51.700

Total income from operations (net)

110432.000

2. Expenses

 

a) Cost of materials consumed

109262.600

b) Purchases of stock-in-trade

1306.800

c) Changes in inventories of finished goods, work-in-process and stock-in-trade (Increase)/ Decrease 

2191.500

d) Employee benefit expense

705.200

e) Depreciation and amortisation expense

893.500

f) Excise Duty on Stocks/ Others (Net)

(284.000)

g) Other expenses

5045.000

Total expenses

119120.600

3. Profit from operations before other income, finance costs and exceptional items (1-2)

(8608.600)

4. Other income

8.300

5. Profit from ordinary activities before finance costs and exceptional items (3+4)

(8680.300)

6. Finance costs

1093.300

7. Profit (+)/Loss(-) from ordinary activities after finance costs but before exceptional items (5-6)

(9773.600)

8. Exceptional Items

--

9. Profit (+)/Loss(-) from ordinary activities before tax (7-8)

(9773.600)

10. Tax expense

(84.700)

11. Profit (+)/Loss(-) from ordinary activities after tax (9-10)

(9688.900)

12. Extraordinary Items 

--

13. Net Profit/ (Loss) for the period (11-12)

(9688.900)

14. Paid-up equity share capital (Face value - Rs.10/-)

1490.000

15. Reserves excluding revaluation reserves as per Balance Sheet of previous accounting year

--

16. Basic and Diluted Earnings Per Share (Rs.)

(not annualised)

(65.06)

A. Particulars of Shareholding

 

1. Public Shareholding

 

- Number of shares

48713300

- Percentage of shareholding

32.71

2. Promoters and Promoter group Shareholding

 

a) Pledged/encumbered

 

-Number of shares

--

-Percentage of shares (as a % of the total shareholding of promoter and promoter group)

--

-Percentage of shares (as a % of the total share capital of the Company)

--

b) Non-encumbered

 

-Number of shares

100198100

-Percentage of shares (as a % of the total shareholding of promoter and promoter group)

100

-Percentage of shares (as a % of the total share capital of the Company)

67.29

3. Physical Parameter

 

- Crude Throughput (MMT)

2.518

 

B. Particulars

3 months ended 30.06.2012

INVESTOR COMPLAINTS

 

Pending at the beginning of the quarter Nil

0

Received during the quarter 3

94

Disposed of during the quarter 3

94

Remaining unresolved at the end of the quarter Nil

0

 

FIXED ASSETS:

Tangible Assets

·         Land - Freehold

·         Land - Leasehold

·         Buildings, Roads etc.

·         Plant and Machinery

·         Office Equipments

·         Transport Equipments

·         Furniture and Fixtures

·         Railway Sidings

·         Drainage, Sewage and Water Supply System

Intangible Assets

·         Right of Way

·         Technical Know-How, Royalty and License Fees

·         Software

 

WEBSITE DETAILS:

 

Company Profile

 

Subject, formerly known as Madras Refineries Limited (MRL) was formed as a joint venture in 1965 between the Government of India (GOI), AMOCO and National Iranian Oil Company (NIOC) having a share holding in the ratio 74%: 13%: 13% respectively. Originally, CPCL Refinery was set up with an installed capacity of 2.5 Million Tonnes Per Annum (MMTPA) in a record time of 27 months at a cost of Rs.430.000 millions without any time or cost over run.

 

In 1985, AMOCO disinvested in favour of GOI and the shareholding percentage of GOI and NIOC stood revised at 84.62% and 15.38% respectively. Later GOI disinvested 16.92% of the paid up capital in favor of Unit Trust of India, Mutual Funds, Insurance Companies and Banks on 19th May 1992, thereby reducing its holding to 67.7 %. The public issue of CPCL shares at a premium of Rs.70 (Rs.90 to FIIs) in 1994 was over subscribed to an extent of 38 times and added a large shareholder base.

 

As a part of the restructuring steps taken up by the Government of India, IndianOil acquired equity from GOI in 2000-01. In July 2003, NIOC transferred their entire shareholding to Naftiran Intertrade Company Limited, an affiliate, in line with the Formation Agreement, as part of their organizational restructuring. Currently IOC holds 51.89% while NICO holds 15.40%.

 

CPCL has two refineries with a combined refining capacity of 10.5 Million Tonnes Per Annum (MMTPA). The Manali Refinery has a capacity of 9.5 MMTPA and is one of the most complex refineries in India with Fuel, Lube, Wax and Petrochemical feedstocks production facilities. CPCL's second refinery is located at Cauvery Basin at Nagapattinam. This unit was set up in Nagapattinam with a capacity of 0.5 MMTPA in 1993 and later enhanced to 1.0 MMTPA.

 

The main products of the company are LPG, Motor Spirit, Superior Kerosene, Aviation Turbine Fuel, High Speed Diesel, Naphtha, Bitumen, Lube Base Stocks, Paraffin Wax, Fuel Oil, Hexane and Petrochemical feed stocks. The Wax Plant at CPCL has an installed capacity of 30,000 tonnes per annum, which is designed to produce paraffin wax for manufacture of candle wax, waterproof formulations and match wax. A Propylene Plant with a capacity of 17,000 tonnes per annum was commissioned in 1988 to supply petrochemical feedstock to neighbouring downstream industries. The unit was revamped to enhance the propylene production capacity to 30,000 tonnes per annum in 2004. CPCL also supplies LABFS to a downstream unit for manufacture of Liner Alkyl Benzene.

 

The crude throughput for the year 2009-10 was 10.058 million metric tonnes (MMT). The company’s turnover for the year 2000-10 was Rs.291840.000 millions and the Profit after Tax was Rs.6032.200 millions.

 

The Company has declared a dividend of 120% on the paid-up equity share capital of the Company for the year 2009-10 in view of the excellent performance of the Company.

 

Awards and Accreditations

 

In recognition of the success achieved in managing its Environmental Management systems CPCL has been honored with many awards, including Golden Peacock Environmental Management Award, Green Tech Foundation award etc. CPCL has also been honored with awards for its safety record, adoption of good Corporate Governance Practice, etc.

 

Year

Agency

Details of Award

2010

JAPAN Institute of Plant Maintenance (JIPM)

CPCL CBR was awarded "Award for TPM Excellence, category A" indicating that TPM is implemented for all the 8 pillars excellently in entire CBR by JAPAN Institute of Plant Maintenance (JIPM) during January 28, 2010.

2009

Government of Tamilnadu

Rural Development and Panchayat Raj Department, Government of Tamilnadu has selected Subject as one of the recipients of the prestigious Corporate Social Responsibility (CSR) Award for the year 2008-09 for having undertaken various social and economic upliftment programs within the State of Tamilnadu.

2009

Greentech Foundation, New Delhi

CPCL has been selected for the Presentation of the prestigious 10th Annual "Greentech Environment Excellence Award-2009".

2009

Institute of Directors, New Delhi

CPCL received Golden Peacock Award for its Pioneering efforts in the field of occupational Health in the Oil sector and for the Most significant improvements and innovative activities practiced in the field of Occupational Health and Safety.

2008

National Safety Council of India, Mumbai

CPCL CBR was awarded 3rd level Safety Award namely (Suraksha Puraskar - Bronze Trophy and Certificate) for the Year 2007 by NSCI, Mumbai. This award was presented on 10.01.2009.

2008

National Safety Council of India

CPCL CBR won the Star Award from National Safety Council of India, Tamil Nadu Chapter, Chennai for the Year-2007 under the NSCI Safety Awards Scheme of NSC, TN Chapter, Chennai.

2008

Tamil Chamber of Commerce

CPCL received Exim Achievements Award from Tamil Chamber of Commerce at a Function Presided by His Excellency the Governor of Tamil Nadu.

2008

Loyola Institute of Business Administration(LIBA)

CPCL received the prestigious Mother Teresa Award for Corporate Citizen 2008, institued by Loyola Institute of Business Administration (LIBA), Chennai.

2008

Institute of Company Secretaries of India(ICSI)

CPCL was one of the Top 25 companies adopting good Corporate Governance practices in the year 2008. CPCL achieved this excellence for the third time in a row.

2007

National Safety Council of India

CBR won the Star award from National Safety Council of India, Tamilnadu Chapter, Chennai for the year 2007 under the NSCI Safety awards Scheme of NSC, TN Chapter, Chennai.

2007

Institute of Company Secretaries of India

Adoption of good Corporate Governance Practices

2007

Government of Tamilnadu

State Safety Award for 2005

2007

Prime Minister’s Office

Shram Bhushan Awards

2006

Ministry of Petroleum and Natural Gas-GOI

Jawaharlal Nehru Centenary Award for Energy Performance

2005

Greentech Foundation

Environment Award

2004

CII, Southern Region

Safety, Health and Environment Performance

2003

Greentech Foundation

Environment Award

2003

TERI

TERI Corporate Environment Award - Second Prize

2003

ICMA Certificate of Merit

For achieving ISOs, OHSAS Certifications

2002

Loyala College Chennai

Loyala Environmental Award

2002

BVQi

Re-certification of 9001 / 18001

2001

World Environment Foundation

Golden Peacock Environmental Management Award

2001

BVQi

ISO-14001 certification

2001

DNV

ISO 9001 and OHSAS 18001

2000

Central Pollution Control Board (CPCB)

"Technology and Environment Protection in National Sector" Award

2000

Indian Science Congress - CSIR

Appreciation Certification

1998

Enviro International

Appreciation Certification

1999

World Environment Foundation

Golden Peacock Environmental Management Runners Up Award

1999

CleanTech Environment

Appreciation Certification

1998

Enviro International

Appreciation Certification

 

 

 

 

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.55.70

UK Pound

1

Rs.87.55

Euro

1

Rs.68.85

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

70

 

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.