MIRA
INFORM REPORT
|
Report Date : |
20.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
MANGALORE REFINERY AND PETROCHEMICALS LIMITED |
|
|
|
|
Registered
Office : |
Mudapadav, Kuthethoor, P.O. Via Katipalla, Mangalore – 575 030,
Karnataka |
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|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
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|
|
|
Date of
Incorporation : |
07.03.1988 |
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|
|
|
Com. Reg. No.: |
08-008959 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.17618.500
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L85110KA1988GOI008959 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRM00218B |
|
|
|
|
Legal Form : |
Public Limited
Liability Company. The Company’s
Shares are Listed on the Stock Exchanges. |
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|
|
Line of Business
: |
The Company is engaged in the business of refining crude oil. |
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|
|
|
No. of Employees
: |
1294 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
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 261160000 |
|
|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
Comments : |
Subject is a
subsidiary of Oil and Natural Gas Corporation Limited (ONGC). It is an
established company having fine track. Financial position of the company
appears to be sound. Directors are reported to be well experienced and
knowledgeable. Trade relations
are reported to be praiseworthy. 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 – September 30, 2011
|
Country Name |
Previous Rating (30.09.2011) |
Current Rating (31.12.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office/ Factory/ Investor
Service Centre 1 : |
Mudapadav, Kuthethoor, P.O. Via Katipalla, Mangalore – 575 030, |
|
Tel. No.: |
91-824-2270400 |
|
Fax No.: |
91-824-2271404/ 2270013/ 2271200 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Mumbai Office : |
|
|
Tel. No.: |
91-22-22173000 |
|
Fax No.: |
91-22-22173233 |
|
E-Mail : |
|
|
|
|
|
|
LGF, Mercantile House, 15 K G Marg, |
|
Tel. No.: |
91-11-23463100 |
|
Fax No.: |
91-11-23352317/ 23463201 |
|
E-Mail : |
|
|
|
|
|
Marketing Office
: |
Opposite |
|
Tel. No.: |
91-80-22642200 |
|
Fax No.: |
91-80-23505501 (Sales Department) |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. A. K. Hazarika |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. U. K. Basu |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. P. P. Upadhya |
|
Designation : |
Director (Technical) |
|
|
|
|
Name : |
Mr. Vishnu Agrawal |
|
Designation : |
Director (Finance) |
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|
|
|
Name : |
Mr. D. K. Sarraf |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sudhir Vasudeva |
|
Designation : |
Director |
|
Date of Birth/ Age : |
25.02.1954 |
|
Qualification : |
Chemical Engineer Management Graduate |
|
Expertise in specific
functional areas : |
Shri Sudhir
Vasudeva is also a director (offshore) in ONGC. He is a Chemical Engineer and
a Management Graduate. He joined ONGC as a executive trainee in the first
batch, 1976, and after topping in the batch he staidly worked his way up,
with majority of his assignments in offshore oil field. Known across ONGC for
his team management capabilities, Shri Vasudeva was steering the offshore
joint venture segment of ONGC’s operation before taking over as a director
offshore. |
|
Date of
Appointment/ Reappointment : |
26.02.2009 |
|
List of outside
Directorships held : |
v
ONGC Limited v
Pawan Hans Helicopters Limited v
ONGC Videsh Limited v
ONGC Petro-additions Limited |
|
|
|
|
Name : |
Mr. Vivek Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. Murali |
|
Designation : |
Director |
|
Date of Birth/ Age : |
20.06.1953 |
|
Qualification : |
Chemical Engineer |
|
Expertise in
specific functional areas : |
Shri K. Murali is
also a Director refinery in HPCL. He has a wide experience in refinery
operation. During long career spanning more than 30 years, has handled
various critical positions including as a head of both the refineries of HPCL
at Mumbai and |
|
Date of
Appointment/ Reappointment : |
19.01.2010 |
|
List of outside
Directorships held : |
v
Hindustan Petroleum Corporation Limited v
HPCL-Mittal Energy Limited v
HPCL Bio Fuels Limited v
Creda-HPCL Bio Fuels Limited |
|
|
|
|
Name : |
Dr. A. K. Rath |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. B. Ravindranath |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Dinesh Mishra |
|
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 |
|
|
|
|
|
|
|
|
1,552,507,615 |
88.58 |
|
|
1,552,507,615 |
88.58 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
1,552,507,615 |
88.58 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
7,382,005 |
0.42 |
|
|
38,842,818 |
2.22 |
|
|
2,700 |
- |
|
|
509,713 |
0.03 |
|
|
11,776,813 |
0.67 |
|
|
58,514,049 |
3.34 |
|
|
|
|
|
|
16,729,461 |
0.95 |
|
|
|
|
|
|
117,954,856 |
6.73 |
|
|
6,878,141 |
0.39 |
|
|
14,655 |
- |
|
|
1,900 |
- |
|
|
12,755 |
- |
|
|
141,577,113 |
8.08 |
|
Total Public shareholding (B) |
200,091,162 |
11.42 |
|
Total (A)+(B) |
1,752,598,777 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
1,752,598,777 |
- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
The Company is engaged in the business of refining crude oil. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
2010-2011 Qty. (M.T) |
|
Licensed Capacity |
Delicensed |
|
Installed Capacity |
11,820,000 |
|
Actual production of Petroleum products * |
11,772,855 |
*Excludes own consumption: 823,187 MT
GENERAL INFORMATION
|
No. of Employees : |
1294 (Approximately) |
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Bankers : |
v
State Bank of v Canara Bank v Punjab National Bank v
Bank of v Corporation Bank v
United Bank of v
Citibank N.A. |
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|
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Facilities : |
1. Rupee Term Loans
from Banks of Rs.1428.090 Millions (Previous year Rs.1428.090 millions) along
with all interest, cost charges, expenses and other monies whatsoever payable
to lenders are secured/ to be secured by: i) Equitable
mortgage over the immovable properties, both present and future; ii)
Hypothecation over the present and future movable properties. iii) These Rupee
Term Loans are convertible into Equity Shares in case of default in repayment
of loans. 2. Working
Capital Facilities from banks – are secured by way of hypothecation of
Company’s stocks of raw materials, finished goods, stock-in-process, stores,
spares, components, book debts, outstanding moneys receivable, claim, bills,
contracts, engagements, securities, both present and future and further secured/to be secured by
residual charge on Company’s immovable and movable properties (save and
except Current Assets) both present and future, ranking pari passu inter se
and including a lien over Company’s Fixed Deposit amounting to Rs.7830.000
Millions (Previous Year Rs.3751.400 Millions) 3. Charges
created/to be created in favour of lenders as referred to in note 1 shall
rank pari passu inter se and are subject to the charge(s) created/ to be
created by the company in favour of its bankers on the company’s stock of raw
materials, semi-finished goods, consumable stores and book debts and such
other movables as may be specifically permitted to secure its working capital
requirements in the ordinary course of business.
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|
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
S.R.R.K. Sharma Associates Chartered Accountants Maharaj N.R. Suresh and Company Chartered Accountants |
|
|
|
|
Solicitors : |
Mulla and Mulla and Craigie Blunt and Caroe |
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|
|
|
Holding Company
: |
ONGC Limited |
|
|
|
|
Associates : |
v ONGC Mangalore Petrochemicals Limited v Mangalore SEZ Limited v Petronet MHB Limited |
|
|
|
|
Joint Ventures :
|
v Shell MRPL Aviation Fuels and Services Private Limited v Mangalam Retail Services Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1900000000 |
Equity Shares |
Rs.10/- each |
Rs.19000.000 millions |
|
100000000 |
Non-Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.1000.000 millions |
|
|
Total |
|
Rs.20000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1752598777 |
Equity Shares (out of the
above 1255354097 numbers held by ONGC Limited, the Holding Company) |
Rs.10/- each
|
Rs.17525.990
millions |
|
|
Add: Forfeited Shares (amount originally paid-up) |
|
Rs.0.650
million |
|
9186242 |
0.01%
Non-Cumulative Redeemable Preference Shares (Redeemable in
two equal annual installments on 1st July, 2011 and 1st
July, 2012) |
Rs.10/- each
|
Rs.91.860
millions |
|
|
Total |
|
Rs.17618.500 millions |
Notes:
In the year
2009-10 company has forfeited 303550 Equity Shares due to non receipt of
allotment and/or call money from Equity Shareholders.
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 |
17618.500 |
17618.500 |
17618.310 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
47670.510 |
38347.020 |
29675.680 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
65289.010 |
55965.520 |
47293.990 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2027.130 |
3421.350 |
2389.400 |
|
|
2] Unsecured Loans |
13542.620 |
13542.620 |
17478.640 |
|
|
TOTAL BORROWING |
15569.750 |
16963.970 |
19868.040 |
|
|
DEFERRED TAX LIABILITIES |
3471.640 |
6602.220 |
5685.530 |
|
|
|
|
|
|
|
|
TOTAL |
84330.400 |
79531.710 |
72847.560 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
30896.170 |
32923.570 |
36579.120 |
|
|
Capital work-in-progress |
54674.320 |
18602.850 |
4149.540 |
|
|
|
|
|
|
|
|
INVESTMENT |
948.250 |
16236.620 |
6428.930 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
40973.840 |
31143.550 |
18904.300
|
|
|
Sundry Debtors |
25266.310
|
16572.200 |
12869.790
|
|
|
Cash & Bank Balances |
24151.050
|
23440.080 |
17711.220 |
|
|
Other Current Assets |
284.430
|
1059.620 |
213.040
|
|
|
Loans & Advances |
7604.650
|
5849.780 |
10287.470
|
|
Total
Current Assets |
98280.280
|
78065.230 |
59985.820 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
87286.170
|
50464.440 |
29702.490 |
|
|
Other Current Liabilities |
9587.980
|
12634.380 |
1590.650
|
|
|
Provisions |
3594.470
|
3197.740 |
3002.710
|
|
Total
Current Liabilities |
100468.620
|
66296.560 |
34295.850 |
|
|
Net Current Assets |
(2188.340)
|
11768.670 |
25689.970
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
84330.400 |
79531.710 |
72847.560 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
|
389566.730 |
319452.060 |
382437.410 |
|
|
|
Other Income |
2356.310 |
6712.150 |
1866.410 |
|
|
|
TOTAL (A) |
391923.040 |
326164.210 |
384303.820 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/Decrease in Stocks |
(8152.710) |
(2958.770) |
5968.560 |
|
|
|
Raw Materials Consumed |
372193.370 |
302308.740 |
345127.410 |
|
|
|
Operating and Other Expenses |
5553.780 |
4848.630 |
9844.620 |
|
|
|
Prior Period Items |
(4.240) |
(1.090) |
(11.010) |
|
|
|
TOTAL (B) |
369590.200 |
304197.510 |
360929.580 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
22332.840 |
21966.700 |
23374.240 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
1043.730 |
1154.980 |
1434.510 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
21289.110 |
20811.720 |
21939.730 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3914.190 |
3893.270 |
3823.160 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
17374.920 |
16918.450 |
18116.570 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
5608.590 |
5794.680 |
6191.130 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
11766.330 |
11123.770 |
11925.440 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
33959.490 |
25567.150 |
16401.690 |
|
|
|
|
|
|
|
|
|
Add |
Excess Provision for Dividend in earlier Years |
1.470 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend on Preference Shares |
0.010 |
0.010 |
0.010 |
|
|
|
Proposed Dividend on Equity Shares |
2103.120 |
2103.120 |
2103.480 |
|
|
|
Corporate Dividend Tax |
341.180 |
349.300 |
357.490 |
|
|
|
Transfer to General Reserve |
295.000 |
279.00 |
299.000 |
|
|
BALANCE CARRIED
TO THE B/S |
42987.980 |
33959.490 |
25567.150 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Exports (FOB Value) |
146024.710 |
110413.410 |
116361.820 |
|
|
|
Deputation of Specialists |
6.870 |
5.510 |
0.000 |
|
|
TOTAL EARNINGS |
146031.580 |
110418.920 |
116361.820 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
0.760 |
3.800 |
12.750 |
|
|
|
Raw Materials |
306596.890 |
262124.500 |
287891.500 |
|
|
|
Stores, Spares & Chemicals |
659.350 |
836.120 |
148.790 |
|
|
TOTAL IMPORTS |
307257.000 |
262964.420 |
288053.040 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
6.71 |
6.35 |
6.80 |
|
|
|
- Diluted |
6.21 |
5.87 |
6.27 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 (1st
Quarter) |
30.09.2011 (2nd
Quarter) |
31.12.2011 (3rd
Quarter) |
31.03.2012 (4th
Quarter) |
|
Net Sales |
133716.100 |
116677.000 |
129473.900 |
158474.900 |
|
Total Expenditure |
131465.900 |
115903.100 |
126296.900 |
150553.000 |
|
PBIDT (Excl OI) |
2250.200 |
773.900 |
3177.000 |
7921.900 |
|
Other Income |
1327.200 |
1502.100 |
82.000 |
2594.900 |
|
Operating Profit |
3577.400 |
2276.000 |
3259.000 |
10516.800 |
|
Interest |
269.700 |
999.300 |
423.100 |
374.700 |
|
Exceptional Items |
10.900 |
(7.900) |
(47.100) |
22.300 |
|
PBDT |
3318.600 |
1268.800 |
2788.800 |
10164.400 |
|
Depreciation |
952.300 |
965.000 |
1173.700 |
1247.700 |
|
Profit Before Tax |
2366.300 |
303.800 |
1615.100 |
8916.700 |
|
Tax |
639.200 |
62.500 |
517.600 |
2897.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
1727.100 |
241.300 |
1097.500 |
6019.700 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
1727.100 |
241.300 |
1097.500 |
6019.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.00
|
3.41 |
3.10
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.46
|
5.30 |
4.74
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.45
|
15.24 |
18.76
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.30 |
0.38
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.78
|
1.49 |
1.15
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.98
|
1.18 |
1.75
|
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 |
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 |
OPERATIONAL
PERFORMANCE
The Refinery
throughput was 12.64 MMT crude oil achieving 107% capacity utilization. The Refinery
produced 11.77 MMT of finished products.
EXPORTS
Even in these
challenging times the company has exported, MS, Naphtha, Mixed Xylene, HSD, ATF
and FO totaling to 4.9 MMT amounting to Rs.146040.000 millions.
DOMESTIC MARKETING
OF PRODUCTS
The Company
continued to make inroads in the direct sales segment in Karnataka and its
adjoining states with sales turnover during the year at Rs.22910.000 millions.
In view of
deregulation of MS pricing, the company has reformulated its Retail Business
plan to set up 122 retail outlets in next two years and has developed its
policy on dealer selection for setting up retail outlets predominantly in
southern
MARKETING
Sales and
Operation
The Company
continued to make inroads in the direct sales segment in Karnataka and its
adjoining states. Major inroads made in Mixed Xylene market. ATF sales
increased by 23 % to 67 TMT as compared to last year sales of 54 TMT. Total
sales turn over during the year was about Rs.22910.000 millions.
VG 30 and VG 10
grade Bitumen supplies started during the year. The Company also started HSD
supplies ex-Hassan hospitality location. The Company increased supplies to OMC
locations in Tamilnadu and Kerala.
Business
Development
The Company entered
into an agreement with State Trading Corporation,
Joint ventures
The Joint Venture
of the company with Shell B.V. Netherland viz., “Shell MRPL Aviation Fuels and
Services Private Limited” for marketing of ATF achieved a operating profit of
Rs.214.060 Millions (Previous year Rs.145.450 Million), Pre tax profit of
Rs.136.280 Millions (Previous year Rs.82.080 Million) and Post tax profit of
Rs.109.680 Millions (Previous year Rs.45.340 Million) during the year. During
the year, the sales under Delivering Company (DELCO) model were 85,489 KL
(Previous year 68,927 KL). The Company fuelled 12,674 flights (Previous year
11,106 flights). Sales under the Contracting Company (CONCO) Model were
4,16,487KL (Previous year 3,43,133 KL).
Retail
The Company
continued to follow a non aggressive and cautious approach in marketing of HSD
and petrol in view of the Government regulation in pricing. As of 1st
April, 2011 MRPL is operating two HiQ retail outlets one each at Maddur and
Hubli in Karnataka. The third outlet at Kadri Hills, Mangalore is under
construction. In view of expected complete deregulation of MS and HSD pricing,
the company has worked out its Retail Business plan to set up 122 retail
outlets within two years. The Company plans to set up these retail outlets
predominantly around Mangalore with minimum logistic cost.
AWARDS AND
RECOGNITION:
The excellent
standards maintained by the Refinery on the production, energy conservation,
environment management and safety front, enabled them to bag several awards:
v MRPL has bagged
the Petrofed ‘Refinery of the Year’ Award honoring performance in refining of
petroleum in
v Oil Industry
Safety directorate ranks MRPL as 1st in “Most consistent safety performer in
Refineries” for the year 2009-10
v Company has
achieved the “Excellent” Target (Composite score 1.04) against the MOU Targets
set with Government of India for the year 2009-10
v Best Exporter
Award (Gold) – 2010 for exporting products through NMPT, by Federation of
Karnataka Chamber of Commerce and Industries.
v The “Oil and Gas
Conservation Award-2010” for Furnace/Boiler Efficiency instituted by CHT.
v The Company bagged
1st Prize in Furnace/Boiler Efficiency under the Category-2 of Group-1 in the
Annual OGCF-2009-10.
v The Company bagged
the second Prize of Jawaharlal Nehru Centenary Awards 2009-10 for Energy
Performance of Refinery with composite energy factor for more than 5, under
Group-1.
PROJECTS
Phase III Refinery
Project:
The company is
currently implementing Phase III Refinery Project with an objective of increasing
profitability by increasing the refining capacity to 15 MMTPA, to process more
of low price high Sulphur/high acid, heavy crude oils, increasing the
distillate yield by upgrading low value black oils, producing value added
products like Propylene and upgradation of its total diesel pool to superior
(Euro III/ IV) grade. The estimated cost of the project is Rs.121602.600
millions. Orders have been placed for all the units like PFCC, SRU and PPU,
Captive Power Plant (CPP), Hydrogen and DHDT Units, CHT, DCU etc., as well as
all utility packages like Nitrogen, Compressed Air, Raw Water, Cooling water DM
water and Waste Water Treatment Plant. The total value of orders placed as on
31st May, 2011 is Rs.101930.000 millions. The implementation is
progressing satisfactorily.
The Project has
achieved a overall progress of 84.4% (Actual) as against schedule target of
92.7% as on 15th June, 2011. The captive powerplant being executed by M/s BHEL
has achieved overall progress of 81.3% (Actual) against schedule of 96.6% as on
15th June, 2011, M/s BHEL has indicated 6 months delay in completion. To
achieve production schedule of January, 2012, the Company has initiated action
to draw power and steam from existing powerplants. The project is expected to
achieve start of production within financial year 2011-12.
Polypropylene
Project:
The company has
been setting up Polypropylene unit integrated with the Phase III Project at an
estimated capex of Rs.18037.800 millions. Engineers India Limited (EIL) has
been engaged to implement the project under Open Book Execution (OBE)
methodology.
Polypropylene
Project has achieved a progress of 64.2% (Actual) as against target of 67.2%
(Scheduled) as of 15th June, 2011. Proactive actions have been taken
to minimise delay from approved mechanical completion target of April, 2012 and
commissioning by July, 2012.
Cost Commitment
made for Polypropylene Project is Rs.12905.600 millions and the expenditure
incurred is Rs.3016.000 millions as of 15th June, 2011.
SPM Project:
As reported last
year, the company is proposing to set up a Single Point Mooring (SPM) facility
in the
Engineers India
Limited (EIL) is appointed as OBE/LSTK Contractor for this Project. EIL have
already completed ordering of major long lead equipments like Booster Pumps
with Diesel Engine, SPM, Bare Pipe, Valves, Pipe Fittings etc and ordering for
the balance items is in progress. The Civil and Structural Work Contract, Sub
Sea Pipeline and SPM Installation Contract are placed. Civil and Structural
Work for the Booster Pump Station is in progress in NMPT Limits. Tender Floated
for Composite Works.
The Progress of the
Project as on 15.05.2011 is 15.7%.
The Company has
already obtained Environmental Clearance from Ministry of Environment and
Forests, Government of India for the Project.
INTERNAL PROJECTS
CDU / VDU1 revamp:
The CDU / VDU
Phase 1 unit for improvements in yield with better energy efficiency. The Basic
Engineering was done by EIL who is the suppliers of Basic Engineering and
Detailed Engineering for the original unit. Project Management Consultant (PMC)
for the project is Uhde India Private Limited (UIPL). The LSTK Contractor is
M/s. Toyo Engineering India Limited The Pre-shutdown activities related to the
Project are completed and the Shutdown works shall be taken up in the scheduled
Turnaround during September/October 2011.
Revamp of naphtha splitter
unit-2:
This project is
for maximizing the capacity utilization of the existing Isomerisation Unit and
the CCR Unit with better Naphtha management. The Naphtha Splitter Unit-2 is being
revamped with minor changes. The Basic Engineering has been carried out by
Process Design Engg. Cell of IOCL. Engineers India Limited (EIL) has been
retained for the Engineering and Procurement services. The estimated Project
cost is about Rs.95.000 millions and targeted completion by April, 2012.
Relocation of tank
truck loading for BS IV MS / HSD and argumentation of ATF loading facility:
The existing BS IV
MS/HSD tank truck loading is being carried out at hired third party a premise
which has inherent limitations. Loading facilities is being proposed at own
premises at a cost of approximately Rs.250.000 millions (inclusive of security
related infrastructure). Mecon have been retained as the Project Management
Consultant and engineering is nearing completion. The schedule completion is
March, 2013.
Highlights of
activities
v GOHDS (Gas Oil
Hydro De-sulphurisation) unit major revamp was successfully completed 4.5
months ahead of schedule and Unit commissioned on 16th April, 2010
which facilitates MRPL to Produce higher quantity of Euro-3 and Euro-4 grade
low sulphur Diesel Products.
v Sulphur
Pellatisation unit was commissioned on 29th \ July, 2010 which facilitates MRPL
to market Pellatised sulphur.
v Hydrocracker-1 and
Hydrogen-1 Catalyst replacement activity was safely and Successfully completed
during June, 2010.
v CDU-2 Annual
turnaround was carried out during 22nd August to 13th
September, 2010.
v Major activity
like entire radiation heater coil replacement of VDU was successfully
completed.
v CDU-1, VDU-1,
VBU-1&2 heater coil online cleaning was carried out during February, 2011.
This helped them to improve capacity utilization.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT (MDA)
THE ECONOMY
As per IMF
reports, the world output grew by 5 % in 2010 (which was -0.6% in 2009). During
the second half of 2010, global financial conditions broadly improved, equity
markets rose, risk spreads continued to tighten, and bank lending conditions in
major advanced economies became less tight. IMF further estimates growth of 4 %
in 2011 and 4.5 % in 2012. In medium term, WEO Outlook estimates that world
economy grows on average by 4.4% over the five year to 2015 and in longer term
world GDP is estimated to grow by an average of 3.2% per year over the period
of 2008-2035.
The performance of
the Indian Economy which break the declining trend in 2009-10 and achieved GDP
growth of 8% (from 6.8 % in 2008-09) has continued and as per advance estimates
of then Central Statistics offices (CSO) released on 7th February
2011, GDP growth is projected to be 8.6 % in 2010-11. It is assumed that WPI
inflation will continue to remain elevated with the fuel and the manufacturing
inflation posing an upward pressure. Global inflationary pressure are likely to
persist.
• World Oil and Gas
Projection:-
Global Oil demand
grew by 3.4 % in 2010 and around 42% of the oil demand increase was attributed
solely in
As per IEA’s
Medium-Term Oil and Gas Markets 2011, annual growth in oil demand could average
1.2 million barrels per day (mb/d) between now and 2016, while natural gas
demand could grow by around 500 billion cubic meters. The report also estimates
that buoyant economic growth of non-OECD countries would make demand growth to
stay robust, despite high international crude prices.
• Indian Petroleum
Industry:-
• Consumption:-
In recent years,
STRATEGIC BUSINESS PURSUITS/ OUTLOOK
Phase III Refinery
Project
MRPL is currently
implementing Phase III Refinery Project with an objective of increasing
profitability by increasing the refining capacity to 15MMTPA, to process more
of low price high Suphur/high acid heavy crude oils, increasing the distillate
yield by upgrading low value black oils, producing value added products like
Polypropylene and up gradation of its total diesel pool to superior (Euro
III/IV) grade. The estimated cost of the project is Rs.121602.600 millions.
Orders have been placed for all the units like PFCC, SRU and PPU, Captive Power
Plant (CPP), Hydrogen and DHDT Units, CHT, DCU etc., as well as all utility
packages like Nitrogen, Compressed Air, Raw Water, Cooling water DM water and
Waste Water Treatment Plant. The total value of orders placed as on 31.03.2011
is Rs.101750.000 millions.
The project has
achieved a progress of 78.9% (Actual) as against MOU target of 72.3%
(Scheduled) as on 15.03 2011. To meet the erection and commissioning target of
January, 2012 and for availing tax benefits on commissioning before March,
2012, the project implementation work is progressing satisfactorily at steady
pace.
Limiting the
growth in Retail Marketing
Under 11th Plan,
Government of India has projected that: Full price competition at the refinery
gate and retail level needs to be adopted to enhance competition in the sector.
The same could not materialize and finally on the basis of recommendations of
the Expert Group and decisions taken in the meeting of the Empowered Group on
Ministers (EGoM) on 25.06.2010, the Government has implemented the following
effective 26.06.2010
Expert Group
Recommendations on pricing
v The price of
Petrol, both at the Refinery Gate and the Retail level, will be market
determined.
v The price of
Diesel will also be made market determined, both at the Refinery Gate and at
the Retail level. However, for the present, the Public Sector OMCs have
increased the retail selling price (RSP) of Diesel only by Rs.2/litre at
(The RSPs of PDS
Kerosene and Domestic LPG have been increased by Rs.2/litre and Rs.50/cylinder
at
With these policy changes
oil marketing companies will be able to cover their under-recoveries upto some
extent only. However, uncertainty with the present adhoc mechanism will remain
a concern for the industry the estimated under recovery for 2010-11 is about
Rs.1834150.000 millions against Rs.781900.000 millions in 2009-10.
v In view of the
above circumstances, MRPL has strategically slowed down its plans in retail
marketing and is concentrating on direct marketing of non-controlled products.
v They envisage a
long term growth plan on Consumer / Retail Sales market and at present is
operating two Retail Outlets under MRPL HiQ brand and one Retail Outlet under
ONGC Oval brand. This is out of the total approval received from GOI for 500
Retail Outlets for MRPL and 1100 Retail Outlets for ONGC.
v Since MS
deregulation has been announced by Government, it is proposed that MRPL will
set up all its outlets during next five to seven years time frame. The primary
focus of MRPL Retail Outlets will be the Peninsular India and on the basis of
successful finalization of supply terms with OMCs, MRPL can further expand into
the inland markets of
Diversifying the
source of Crude Import
MRPL buys most of
the imported crude on term basis ensuring firm supply of crude to the refinery
as well as production of a stable product mix to meet requirement of OMCS.
The company has
been continuously diversifying the sources and adding more countries/ crude in
the crude supply basket.
MRPL is having
long term supply contracts with
The company has
already made an Expression of Interest to Government of Mauritius for setting
up 150000 MT oil terminal in
The Company plans
to set up Joint Ventures for storage of product at strategic locations abroad
coupled with long term supply arrangements with marketing companies operating
in growing markets of Africa and
In the light of
availability of Raw Petroleum Coke, Light Naphtha from MRPL and Paraxylene and
Benzene from Aromatic complex several potential projects are being contemplated
for setting-up petrochemical hub in
The Company is
planning to have a tie-up with ONGC Videsh Limited (OVL) for strategic overseas
investment. The consortium of OVL has been selected by the Government of the
MRPL during the
current year has recently renewed its long term contract with State Trading
Corporate (STC),
Single Point
Mooring (SPM)
The Company is
setting up a Single Point Mooring (SPM) facility off
Engineers India
Limited (EIL) has been appointed as the OBE/LSTK Contractor in July 2010 for
this Project with a completion schedule of April 2012. EIL have already completed
placement of Orders for major long lead Equipment like Booster Pumps with
Diesel Engines, SPM, Bare Pipes and further ordering for the balance items are
in progress. The Civil and Structural Works Contract for Booster Pump Station
has already been placed and ordering for the remaining major Contracts like
Installation Work, Composite Work etc. are in progress.
Petrochemicals
Indian
petrochemical industry is one of the critical driver of the Indian economy and
in coming times, Refinery-Petrochemicals integration is going to be a must for
all the refiners, as well as corporate profitability as significant opportunity
exists for refinery petrochemical integration. As per Ernest and Young, the
Indian petrochemical industry, has been growing at 14% CAGR since the past few
years.
In order to tap
this market, MRPL has taken lead and taken all the necessary steps required to
keep MRPL ahead and with its efforts, MRPL will be able to deliver value added
products like Propylene, ethylene ,Mixed Xylene etc, to other processing units
like OMPL. MRPL has been able to locate petrochemical plants adjacent to its
refinery site as brown field expansion, for max integration synergy.
PERFORMANCE
In financial year
2010-11 MRPL’s performance both on physical and financial parameters have
surpassed its past performance standards and set a new bench mark for the
future.
• MRPL achieved
highest ever throughput of 12.64 MMT in the year FY- 2010-11 against 12.497MMT
for the previous year FY-2009-10.
• MRPL achieved
Lowest ever MBN 58.13 achieved for the year FY-2010-11 compared to 58.27 for FY
2009-10.
• Ever highest
turnover of Rs.43,800 Cr was achieved for the year FY 2010-11 as against
Rs.36,140 Cr for FY 2009-10.
• The net profit
for the year FY 2010-11 was Rs.1,176 Cr compared to net profit of Rs.1112 Cr
for the previous year FY2009-10.
• MRPL achieved
its best ever record of 1367 days of Reportable Lost Time Injury as on
31-03-2011 ,the previous best Safety record of 1301 days.
• MRPL was the
first to produce Euro-4 diesel. It commissioned its revamped GOHDS unit ahead
of the schedule on 16th April-2010.
Contingent
Liabilities not provided for in respect of: (As on 31.03.2011)
1. Corporate
Guarantee given by the Company towards loan of Rs.3372.300 Millions sanctioned
by certain bankers / financial institutions to New Mangalore Port Trust (NMPT)
for construction of Jetties. Amount outstanding as at the close of the year
ended 31st March, 2011, after adjusting the repayment made by NMPT
is Rs. Nil.
2. Claims against the Company not acknowledged as debt:
|
Particulars |
31.03.2011 (Rs. in
millions) |
|
1. Claims of Contractors / vendors in Arbitration / Court Some of the contractors for supply and installation of equipment have
lodged claims on the Company seeking revision of time of completion without
liquidated damages, extended stay compensation and extra claims etc., which
are contested by the Company as not admissible in terms of the provisions of
the respective contracts. In case of unfavourable awards the amount payable
would be capitalised Rs.314.740 millions / Reimbursable Rs.37.730 millions |
352.470 |
|
2. Claims / counter claims of Customers |
|
|
(a) The Company
had gone into an international arbitration at |
16.170 |
|
(b) One of the
customers has lodged a claim for damages for pre-closure of the contract. The
Company has disputed the claim basis Force Majure condition. In case of non
acceptance of the stand taken by the Company the amount will be debited to
the Profit and Loss Account. |
85.200 |
|
3. Others |
|
|
(a) The |
606.420 |
|
(b) This
represents the potential liability which the Company has undertaken towards
reimbursement to lessors in case of any liability in their respective tax
assessments. In case of any claim by lessors the same will be debited to
Profit and Loss Account. |
133.670 |
|
4. Total |
1193.930 |
In respect of all these
claims, which are being contested by the Company as not admissible, it is not
practicable to make a realistic estimate of the outflow of resource, if any,
for settlement of such claim pending resolution / award from Arbitrators /
Court.
3. Disputed tax /
Duty demands pending in appeal:
a) Income Tax:
Rs.373.90 Millions. (Against this Rs.251.410 Millions is adjusted / paid under
protest and is included under loans and advances.)
b) Commercial Tax:
Rs.1217.840 Millions – includes Rs.524.870 Millions relating to projects.
(Against this Rs.377.200 Millions is paid under protest and included under
loans and advances.)
c) Excise Duty:
Rs.360.260 Millions. (Against this Rs.41.080 Millions is paid under protest and
is included under loans and advances.)
d) Customs Duty:
Rs.130.190 Millions.
4. The estimated
amount of contracts remaining to be executed on capital account and not
provided for (net of advances) Rs.57527.760 Millions.
AUDITED FINANCIAL RESULTS
FOR THE QUARTER AND YEAR ENDED 31.03.2012
(Rs. in Millions)
|
Particulars |
Quarter Ended |
Year Ended |
|
|
31.03.2012 Audited |
31.12.2011 Unaudited |
31.03.2012 Audited |
|
|
1. Gross Sales /
Income from Operations |
166462.500 |
136469.700 |
572067.600 |
|
Less: Excise
Duty |
8078.600 |
7273.800 |
34434.100 |
|
a) Net Sales/ Income from Operations |
158383.900 |
129195.900 |
537633.500 |
|
b) Other operating
Income (note no.3 (a)) |
2355.900 |
165.600 |
301.800 |
|
Total Income
from Operations (a+b) |
160739.800 |
129361.500 |
537935.300 |
|
|
|
|
|
|
2 Expenditure |
|
|
|
|
a) Consumption of
materials consumed |
145353.900 |
124596.200 |
512367.500 |
|
b) (Increase)/decrease
in Stock in trade and work in progress |
3817.300 |
(3908.000) |
(1502.100) |
|
c) Employees
Benefit Cost |
520.900 |
373.400 |
1606.400 |
|
d) Depreciation /
Amortisation |
1247.700 |
1173.700 |
4338.700 |
|
e) Other
Expenditure [Note No. 3(b)] |
860.900 |
5122.900 |
9075.400 |
|
Total ( (a to e)
|
151800.700 |
127358.200 |
525885.900 |
|
3. Profit from
operations before other Income, interest & Exceptional Items (1-2) |
8939.100 |
2003.300 |
12049.400 |
|
4. Other Income |
330.000 |
82.000 |
3241.300 |
|
5. Profit before
interest & Exceptional items(3+4) |
9269.100 |
2085.300 |
15290.700 |
|
6. Finance Cost |
374.700 |
423.100 |
2066.800 |
|
7. Profit after
Interest but before Exceptional Items (5-6) |
8894.400 |
1662.200 |
13223.900 |
|
8. Exceptional
Items / Prior Period Items |
(22.300) |
47.100 |
21.800 |
|
9. Profit/ (loss) from ordinary activities before tax (7-8) |
8916.700 |
1615.100 |
13202.100 |
|
10. Tax Expenses
|
2897.000 |
517.600 |
4116.300 |
|
11. Net Profit
from Ordinary Activities after tax ( 9-10) |
6019.700 |
1097.500 |
9085.800 |
|
12. Extraordinary
items (net of tax provision) |
-- |
-- |
-- |
|
13. Net Profit
for the period (11-12) |
6019.700 |
1097.500 |
9085.800 |
|
14. Paid up
Equity Share Capital (face value Rs.10 each) |
17526.000 |
17526.000 |
17526.000 |
|
15. Reserves excluding
Revaluation reserves as per Balance sheet of Previous accounting year |
-- |
-- |
54719.400 |
|
16. Earnings per
Share (EPS) |
|
|
|
|
Basic Earnings
per Share (Rs.) (Not Annualised) |
3.43 |
0.63 |
5.18 |
|
Diluted Earnings
per Share (Rs.) (Not Annualised) (considering
potential equity shares on convertible portion of loans) |
3.28 |
0.60 |
4.94 |
|
A. PARTICULARS
OF SHAREHOLDERS |
|
|
|
|
1. Public
Shareholding |
|
|
|
|
- Number of
Shares |
200091162 |
200091162 |
200091162 |
|
- Percentage of
Shareholding |
11.42% |
11.42% |
11.42% |
|
2. Promoters and
Promoter group Shareholding |
|
|
|
|
a) Pledged/
Encumbered |
|
|
|
|
- Number of
Shares |
Nil |
Nil |
Nil |
|
- Percentage of Shares
(as a % of the total Shareholding of promoter and promoter group) |
Nil |
Nil |
Nil |
|
- Percentage of
Shares (as a % of the total share capital of the company) |
Nil |
Nil |
Nil |
|
b) Non-encumbered |
|
|
|
|
- Number of
Shares |
1552507615 |
1552507615 |
1552507615 |
|
- Percentage of Shares (as a % of the total Shareholding of promoter
and promoter group) |
100% |
100% |
100% |
|
- Percentage of Shares (as a % of the total share capital of the
company) |
88.58% |
88.58% |
88.58% |
|
B. INVESTOR
COMPLAINTS |
31.03.2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
18 |
|
Disposed off during the quarter |
18 |
|
Remaining unresolved at the end of the quarter |
Nil |
|
C. PHYSICAL PERFORMANCE (In Million Tons) |
|
|
|
|
Crude Throughput
|
3.41 |
3.04 |
12.82 |
|
Product Sales (including exports) |
3.22 |
2.85 |
11.95 |
STATEMENT OF ASSETS
AND LIABILITIES AS AT 31ST MARCH, 2012 (AUDITED)
(Rs. in Millions)
|
Particulars |
As at 31.03.2012 Audited |
|
A. EQUITY AND
LIABILITIES |
|
|
|
|
|
1. Shareholders’
Funds |
|
|
(a) Share Capital |
17572.600 |
|
(b) Reserves & Surplus |
54719.400 |
|
Sub Total – Shareholder’s funds |
72292.000 |
|
|
|
|
2. Non-current
liabilities |
|
|
(a) Long-term borrowings |
38919.100 |
|
(b) Deferred tax liabilities (net) |
4531.400 |
|
(c) Other long-term liabilities |
20.300 |
|
(d) Long-term provisions |
288.700 |
|
Sub Total – Non-current liabilities |
43759.500 |
|
|
|
|
3. Current liabilities |
|
|
(a) Short-term borrowings |
18597.900 |
|
(b) Trade payables |
111046.600 |
|
(c) Other current liabilities |
12819.400 |
|
(d) Short-term provisions |
3045.600 |
|
Sub Total – Current liabilities |
145509.500 |
|
|
|
|
TOTAL – EQUITY AND LIABILITIES |
261561.000 |
|
|
|
|
B. ASSETS |
|
|
|
|
|
1. Non-current
assets: |
|
|
(a) Fixed Assets |
111490.200 |
|
(b) Non current investments |
150.000 |
|
(c) Long-term loans and advances |
7530.500 |
|
(d) Other non-current assets |
21.400 |
|
Sub Total – Non-current assets |
119192.100 |
|
|
|
|
2. Current
assets: |
|
|
(a) Current investments |
272.800 |
|
(b) Inventories |
78175.800 |
|
(c) Trade receivables |
34592.700 |
|
(d) Cash and cash equivalents |
22347.100 |
|
(e) Short-term loans and advances |
5761.200 |
|
(f) Other current assets |
1219.300 |
|
Sub Total – Current assets |
142368.900 |
|
|
|
|
TOTAL
- ASSETS |
261561.000 |
1. The above results have been reviewed by the Audit Committee and approved
by the Board of Directors at its meetings held on 23rd May, 2012.
2. The Audited Accounts are subject to review by the Comptroller and
Auditor General of
3. a) Other
operating income for the three months ended 31st March 2012, three
months ended 31st March 2011 and year ended 31st March
2011 include net exchange fluctuation gain of Rs.2264.900 millions, Rs.399.200
millions and Rs.184.500 millions respectively.
b) Other
Expenditure for the three months ended 31st December, 2011 and year
ended 31st March, 2012 includes net exchange fluctuation loss of
Rs.4398.300 millions and Rs.6482.200 millions respectively.
4. The Company is engaged
in the business of refining crude oil, all activities of the Company revolve
around this business and the operations are in
5. The company has
commenced commercial refining of crude oil from its Phase III refinery during
the year and accordingly is entitled to the deduction u/s 80 IB of the Income
Tax Act, 1961.
6. The Board of
Directors have recommended a dividend of Rs.1.00 per Equity Share (Previous
year Rs.1.20 per Equity Share) {10% (previous year 12%) on par value of Rs.10 per Equity Share} for the financial
year ended 31st March 2012, subject to Shareholders' approval in the
ensuing Annual General Meeting,
7. Figures for the
previous year/period are regrouped / rearranged wherever considered necessary.
8. The figures of
last quarter are the balancing figures between audited figures in respect of
the full financial year and the published year to date figures upto the third
quarter of the current financial year.
FIXED ASSETS:
Tangible Assets
v
Land - Freehold
v
Land - Leasehold
v
Buildings
v
Plant and Machinery
v
Furniture and Fittings
v
Vehicles
Intangible Assets
v
Goodwill
v Software
WEBSITE DETAILS:
PROFILE
Subject, located in a beautiful hilly terrain north of Mangalore city,
is a State of
Subject has a design capacity to process 11.82 million metric tonnes per
annum and is the only Refinery in
Subject has high standards in refining and environment protection
matched by its commitments to society. Subject has also developed a Green Belt
around the entire Refinery with plant species specially selected to blend with
the local flora.
HISTORY
Before acquisition by ONGC in March 2003, subject, was a joint venture
Oil Refinery promoted by M/s Hindustan Petroleum Corporation Limited (HPCL), a
public sector company and M/s IRIL and associates (AV Birla Group). Subject was
set up in 1988 with the initial processing capacity of 3.0 Million Metric
tonnes per annum that was later expanded to the present capacity of 11.82
Million Metric tonnes per annum. The Refinery was conceived to maximise middle
distillates, with capability to process light to heavy and sour to sweet Crudes
with 24 to 46 API gravity. On 28th March 2003, ONGC acquired the
total shareholding of A.V. Birla Group and further infused equity capital of
Rs.6000.000 millions thus making subject a majority held subsidiary of ONGC.
The lenders also agreed to the Debt Restructuring Package (DRP) proposed by
ONGC, which included, interalia, conversion upto Rs.3650.000 millions of their
loans into equity. Subsequently, ONGC has acquired equity allotted to the
lenders pursuant to DRP raising ONGC's holding in subject to 71.62 percent.
The implementation of DRP in March 2003 within 4 weeks of acquiring
equity in subject by ONGC has changed the credit profile of the company. ICRA
has assigned A1+ rating (indicating highest safety) to the Short Term Borrowing
programme of subject on a standalone basis
AWARDS AND
MILESTONES
v
State Gold award for excellence in exports
(Non-SSI) for 2000-2001
v
Conferred Star Trading House status on September
21, 2001.
v
`Certificate of Merit' for Energy conservation
performance in 2001, by Ministry of Power
v
State Gold award for excellence in exports (Non
-SSI) for 2001-2002
v
IS0 14001:2004 certification by TUV Rheinland.
v
Export award from Kanara Chamber of Commerce for
2002-2003.
v
ISO:9002 certification on December 1999 and was re-certified
ISO 9001:2008.
v
Oil Conservation Award from Ministry of Petroleum
and Natural Gas on January 31, 2003.
v
Accredited Five Star rating by British safety
council,
v
Export award from Kanara Chamber of Commerce for
2003-2004.
v
Certificate of appreciation for outstanding
contribution to Central Excise Revenue - Mangalore commissionerate for
2003-2004.
v
Winner of First Prize of Jawaharlal Nehru Centenary
Award, selected by Centre For High Technology, functioning under the aegis of
MoP&NG, for the Best Performance in Energy consumption, for the year
2003-04.
v
Green Tech Gold award for Environment Excellence in
the year 2004 and 2008.
v
National Safety Award for the year 2004 from Ministry
of Labour, GOI.
v
Second prize in the Oil Conservation Fortnight
awards, selected by Centre for High Technology and PCRA, for Furnace / boiler
efficiency, in 2004.
v
Certificate of Excellence from New Mangalore Port
Trust for Handling highest Quantity of Crude in the year 2004-2005.
v
Winner of First Prize of Jawaharlal Nehru Centenary
Award, selected by Centre For High Technology, functioning under the aegis of
MoP&NG, for the Best Performance in Energy consumption, for the year
2004-05.
v
Green Tech Gold Safety award for Health and Safety
Management Systems in 2005.
v
Golden Peacock Environment Management Award for
2005 .
v
State award for excellence in exports-
2004-2005-Overall -Silver .
v
‘Energy Efficient Unit’ Award in the National Award
for Excellence in Energy Management under Refinery category by CII for the year
2006-07 and 2007-08 .
v
Certificate of Merit from Karnataka Renewable
Energy Development Limited, for 2005-06 and 2006-07 for lowest specific energy
consumption .
v
Oil and Gas Conservation Fortnight Award for
"Furnace and Boiler Insulation Effectiveness and Efficiency"
instituted by Centre for High Technology (CHT), under Ministry of Petroleum and
Natural Gas:
-
1st Prize – OGCF 2010
-
2nd Prize – OGCF 2008
-
2nd Prize – OGCF 2006
v
Jawaharlal Nehru Centenary Award for Energy
Performance among Indian Refineries, instituted by Centre for High Technology
(CHT) - 1st Prize during 2008-09 and 2nd Prize during 2007-08 and 2009-10.
v
Business Excellence award 2006 by Karnataka Chamber
of Commerce 2005-06 on 16th September 2006.
v
Overall Safety performance runner - up award for
the year 2005-06 by Ministry of Labour.
v
MRPL receives NSC - KC Safety Awards.
v
MRPL has bagged the Commendation Certificate for
"Large Scale Manufacturing Industry - Chemical Industry" under the
Rajiv Gandhi National Quality Award 2006
v
MRPL Wins prestigious Jawaharlal Nehru Centenary
Award 2006.
v
MRPL receives "Best Boilers" Award for
the year 2005-06.
v
MRPL wins the best Exporter Award from Kanara
Chamber of Commerce.
v
MRPL has performed exceptionally well during
2009-10, surpassing its own previous bests on several fronts. A few prominent
ones are listed below.
v
Consistent high capacity utilization at 129% of its
design capacity thus changed name plate capacity from 9.69 to 11.82 MMTPA.
v
Highest ever distillate yield of 72.8% at 12.5
MMTPA operating level.
v
Consistent improvement in Energy consumption
pattern, with lowest ever energy index of 58.27 MBTU/BBUNRGF, crossing its own
previous best of 59.07 which was achieved in previous years. MRPL was awarded I
prize successively four times in row in Jawaharlal Nehru Award for Energy
performance, earlier. Performance is successively at improving trend even
thereafter. Consistently lower Fuel and Loss at 6.50 %, which is significantly
lower when compared to the increase in operating complexity, which is at 5.3.
v
MRPL has been adjudged as the 'Most Safe Refinery'
for the three Years (2006-07, 2007-08 and 2008-09) by Oil Industry Safety
Directorate (OISD), MoP&NG after evaluation of all the 17 PSU refineries in
v
MRPL has been rated 'Excellent' in MOU performance
by ONGC for 2008-09.
v
MRPL has been rated number one company in terms of
turnover per employee on All India basis by Business Today Magazine (BT 500
2009 edition).
v
MRPL received "Certificate of Merit" on
18-02-2010 in the Best HR practices 2009 competition organised by National
Institute of Personnel Management, Kolkatta.
v
MRPL has been conferred Export Excellence Award
2010 (Best Manufacturerr Exporter Award) Large Category - Gold by Federeation
of Karnataka Chambers of Commerce and Industry in June-2010.
v
MRPL was the first Refinery to process the newly
discovered and highly viscous Barmer (Rajasthan) crude in October-2009.
v
GOHDS unit revamp was completed 5 months ahead of
schedule (by the end of March 2010 instead of August 2010, and dedicated to the
Nation by the Secretary, Ministry of Petroleum and Natural Gas, GOI on
30.04.2010) to meet the National requirement of Euro-IV norms.
v
MRPL has been reaffirmed with Issuer rating
"IR AAA" by ICRA Limited, indicating the highest credit quality
rating and carrying lowest credit risk.
v
MRPL has been reaffirmed the "CCR AAA"
rating by CRISIL, indicating highest degree of strength with regard to
honouring debt obligations.
v
The refinery's performance has been exemplary
during 2009-10, on every front. With the limited domestic absorption of
products and considering that MRPL does not have full-fledged marketing network
or a tie-up with a marketing company, MRPL's performance has been excellent and
much superior to other stand-alone refineries in terms of margin capture and
Capacity utilization. The refinery also excelled in Energy performance,
Environment Management, Safety performance, Export performance, Accounting
standards, Industrial Relations, Initiatives in Information technology,
Investor relations and Community development etc. All of this has resulted in
MRPL being adjudged as the "Refinery of the year" award in the
"PETROFED - Oil and Gas Industry Awards 2010".
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.38 |
|
|
1 |
Rs.86.75 |
|
Euro |
1 |
Rs.68.06 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
|
65 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.