|
Report Date : |
25.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
CHENNAI PETROLEUM CORPORATION LIMITED |
|
|
|
|
Registered
Office : |
536, Anna Salai, Teynampet, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
30.12.1965 |
|
|
|
|
Com. Reg. No.: |
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 High Speed Diesel, Motor Spirit, Furnace Oil. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
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 150637024 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an old and reputed company having good track. Fundamentally
company is strong and Healthy.
Financial performance is good. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered 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 (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
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 : |
No.536, Anna Salai, Teynampet, Chennai - 600 018,
Tamilnadu, India |
|
Tel. No.: |
91-44-24349519 |
|
Fax No.: |
91-44-24341753 |
|
E-Mail : |
|
|
Website : |
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|
|
|
|
Refineries: |
· Manali Refinery Manali, Chennai - 600 068. Cauvery Basin Refinery ·
Panangudi Village, Nagapattinam District,
Tamil Nadu |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. R.S. Butola |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. K. Balachandran |
|
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. B.N. Bankapur |
|
Designation : |
Director (Refineries) Indian Oil Corporation
Limited |
|
|
|
|
Name : |
Mr. P.K. Singh |
|
Designation : |
Director (R and A) Ministry of Petroleum
and Natural Gas |
|
|
|
|
Name : |
Mr. Mansoor Rad |
|
Designation : |
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
Co., Chartered Accountants |
|
|
|
|
Name : |
Prof. M.S. Ananth |
|
Designation : |
Director Indian Institute of
Technology (IIT), Chennai. |
KEY EXECUTIVES
|
Name : |
Mr. R. Balakrishnan |
|
Designation : |
Chief Vigilance
Officer |
|
|
|
|
Name : |
Mr. R. Anand |
|
Designation : |
General Manager
(Projects, Development and R&D) |
|
|
|
|
Name : |
Mr. V. Srinivasan |
|
Designation : |
General Manager
(Corp.Planning) |
|
|
|
|
Name : |
Mr. N.K. Rajamani |
|
Designation : |
General Manager
(Technical) |
|
|
|
|
Name : |
Mr. N.V. Kalaivanan |
|
Designation : |
General Manager
(Cauvery Basin Refinery) |
|
|
|
|
Name : |
Mr. K. Sankar |
|
Designation : |
General Manager
(Maintenance) |
|
|
|
|
Name : |
Mr. R. Chidambaram |
|
Designation : |
General Manager
(Services) |
|
|
|
|
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. M. Sankaranarayanan |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of promoter
and Promoter Group |
|
|
|
1) Indian |
|
|
|
a) Individuals / Hindu Undivided Family |
77265200 |
51.89 |
|
2) Foreign |
|
|
|
a) Bodies corporate |
22932900 |
15.40 |
|
|
|
|
|
(B) Public Shareholdings |
|
|
|
1) Institutions |
|
|
|
a) Mutual Funds |
1382801 |
0.93 |
|
b) Financial Institutions/Banks |
20892113 |
14.03 |
|
c) Insurance Companies |
5813839 |
3.90 |
|
|
|
|
|
2) Non – Institution |
|
|
|
a) Bodies corporate |
10485850 |
7.04 |
|
|
|
|
|
b) Individuals |
|
|
|
i. Individual Shareholders holding nominal share capital upto Rs.0.100
Million |
7628537 |
5.12 |
|
ii. Individual Shareholders holding nominal share capital in excess
Rs.0.100 Million |
1368589 |
0.92 |
|
|
|
|
|
c) Any other |
|
|
|
i) Non Resident Indians |
1103157 |
0.74 |
|
ii) Trust |
18120 |
0.01 |
|
iii) Clearing Member |
19494 |
0.01 |
|
iv) Foreign Nationals |
200 |
-- |
|
v) NRI Company |
600 |
-- |
|
|
|
|
|
Total |
148911400 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of High Speed Diesel, Motor Spirit, Furnace Oil. |
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Crude Processing |
MTs |
115.00 |
115.00 |
107.48 |
|
Propylene Recovery |
MTs |
0.30 |
0.30 |
0.34 |
|
Wax Plant |
MTs |
0.30 |
0.30 |
0.27 |
Note
:
Represents finished petroleum products
GENERAL INFORMATION
|
No. of Employees : |
No Divulged |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
State Bank of India, Corporate
Accounts Group Branch, Greams Road, Chennai - 600 006. |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
Note: A. Against hypothecation of inventories, book-debts, outstanding monies, receivables present and future to the extent of Rs.13750.000 Millions (2010: Rs.13750.000 Millions). B. First Pari Passu Charge on select movable fixed assets
to the extent of Rs. 2000.000 Millions.
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
M.
Thomas and Company Chartered
Accountants, |
|
Address : |
Plot No.
G 11, Marina Square, No.27, Santhome High Road, Mylapore, Chennai 600 004. |
|
|
|
|
Name : |
Sreedhar, Suresh & Rajagopalan Chartered Accountants, |
|
Address : |
3B, Green Haven, 26, III Main Road, Gandhi Nagar,
Adyar, Chennai 600 020. |
|
|
|
|
Joint Ventures Companies: |
·
Indian Additives Limited ·
National Aromatics and
Petrochemicals Corporation Limited. |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
400000000 |
Equity Shares |
Rs.10/- each |
Rs.4000.000 Millions |
|
|
|
|
|
Issued:
|
No. of Shares |
Type |
Value |
Amount |
|
170000000 |
Equity Shares |
Rs.10/- each |
Rs.1700.000 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
148911400 |
Equity Shares |
Rs.10/- each |
Rs.1489.114
Millions |
|
|
Add: Forfeited Shares |
|
Rs.0.932
Million |
|
|
|
|
|
NOTE:
A. 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.
B.
B. Includes 7,72,65,200 Equity Shares of Rs.10 each
(51.89%) fully paid-up, held by Indian Oil Corporation Limited, the Holding
Company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
1490.046 |
1490.046 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
36169.210 |
33130.811 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
37659.256 |
34620.857 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
2253.594 |
4068.966 |
|
|
2] Unsecured Loans |
|
39971.733 |
36709.923 |
|
|
TOTAL BORROWING |
|
42225.327 |
40778.889 |
|
|
DEFERRED TAX LIABILITIES |
|
6044.722 |
5759.545 |
|
|
|
|
|
|
|
|
TOTAL |
|
85929.305 |
81159.291 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
34358.031 |
29291.320 |
|
|
Capital work-in-progress |
|
11559.041 |
12807.393 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
225.045 |
234.289 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
51129.827
|
43782.408 |
|
|
Sundry Debtors |
|
19839.812
|
8543.101 |
|
|
Cash & Bank Balances |
|
123.653
|
143.418 |
|
|
Other Current Assets |
|
0.336
|
0.186 |
|
|
Loans & Advances |
|
5334.156
|
4528.066 |
|
Total
Current Assets |
|
76427.784
|
56997.179 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
25355.819
|
11630.900 |
|
|
Other Current Liabilities |
|
8527.608
|
3839.017 |
|
|
Provisions |
|
2757.169
|
2700.973 |
|
Total
Current Liabilities |
|
36640.596
|
18170.890 |
|
|
Net Current Assets |
|
39787.188
|
38826.289 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
85929.305 |
81159.291 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
331078.182 |
249726.284 |
|
|
|
Interest and Other Income |
|
1160.710 |
2350.967 |
|
|
|
TOTAL (A) |
|
332238.892 |
252077.251 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of products for resale |
|
4681.968 |
2519.181 |
|
|
|
Manufacturing, Admn., Selling and Other Expenses |
|
318642.841 |
244801.667 |
|
|
|
Duties other than Excise Duty on Sal |
|
55.003 |
453.683 |
|
|
|
|
|
323379.812 |
247774.531 |
|
|
|
Increase /(Decrease) in Stock |
|
(4466.116) |
(6579.893) |
|
|
|
TOTAL (B) |
|
318913.696 |
241194.638 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
13325.196 |
10882.613 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
2544.550 |
1373..553 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
10780.646 |
9509.060 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
3144.735 |
2671.419 |
|
|
|
|
|
|
|
|
|
|
INCOME/(EXPENSES)
PERTAINING TO PREVIOUS YEARS (NET) |
|
(0.741) |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
7635.170 |
6837.641 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
|
2519.948 |
805.446 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
|
5115.222 |
6032.195 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
|
3038.399 |
3948.470 |
|
|
|
Dividend |
|
1786.937 |
1786.937 |
|
|
|
Tax on Dividend |
|
289.886 |
296.788 |
|
|
BALANCE CARRIED
TO THE B/S |
|
5115.222 |
6032.195 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
|
1132.794 |
0.000 |
|
|
TOTAL EARNINGS |
|
1132.794 |
0.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Crude Oil |
|
262076.364 |
210413.762 |
|
|
|
Capital Goods |
|
107.926 |
870.999 |
|
|
|
Revenue Stores, Component, Spare and Chemicals |
|
191.865 |
353.824 |
|
|
TOTAL IMPORTS |
|
262376.155 |
211638.585 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
34.35 |
40.51 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.20110 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
98952.800 |
94231.100 |
111508.500 |
103315.400 |
|
Total Expenditure |
98310.900 |
96.332.800 |
110889.700 |
101030.800 |
|
PBIDT (Excl
OI) |
641.900 |
(2101.700) |
618.800 |
2284.600 |
|
Other Income |
42.200 |
705.700 |
308.700 |
2661.200 |
|
Operating
Profit |
684.100 |
(1396.000) |
927.500 |
4945.800 |
|
Interest |
586.700 |
688.500 |
956.100 |
858.000 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
97.400 |
(2084.500) |
(28.600) |
4087.800 |
|
Depreciation |
913.300 |
917.800 |
910.000 |
913.100 |
|
Profit
Before Tax |
(815.900) |
(3002.300) |
(938.600) |
3174.700 |
|
Tax |
(264.700) |
(37.34.100) |
(304.500) |
2102.800 |
|
Reported PAT |
(551.200) |
731.800 |
(634.100) |
1071.900 |
|
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 |
(551.200) |
731.800 |
(634.100) |
1071.900 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
|
1.54 |
2.39 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
2.31 |
2.73 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
6.89 |
7.92 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.20 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
2.10 |
1.70 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
2.08 |
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 |
-- |
|
8)
No. of employees |
Yes |
|
9)
Name of person contacted |
Yes |
|
10)
Designation of contact person |
Yes |
|
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) |
-- |
|
21)
Market information |
-- |
|
22)
Litigations that the firm / promoter involved in |
-- |
|
23)
Banking Details |
Yes |
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TO THE SHAREHOLDERS OF
CHENNAI PETROLEUM,
On behalf of the Board of Directors of the Company, I have great pleasure in presenting to you the 45th Annual Report on the performance of the Company, together with the Audited Statement of Accounts for the year ended March 31, 2011.
SIGNIFICANT HIGHLIGHTS
· The company clocked its highest ever turnover of Rs.38,1280.000 Millions in the year 2010-11.
· It achieved the highest ever Crude thruput of 10,748 TMT in the year. (Previous best : 10,058 TMT in 2009-10).
· It successfully completed the revamp of Crude Distillation Unit III from 3 MMTPA to 4 MMTPA.
· The revamp of Catalytic Reforming Unit (Semi-Regenerative) to Continuous Catalytic Reforming Unit was successfully completed during the year.
· The new Naphtha Hydro-treater (NHDT) and Isomerisation Units for the production of Motor Spirit were also successfully completed in January 2011.
· The Fluidised Catalytic Cracking Unit (FCCU) achieved the highest ever thruput of 1006 TMT in 2010-11 (Previous best : 917 TMT in 2009-10).
· The Once Through Hydrocracking Unit (OHCU) achieved the highest ever thruput of 1995 TMT in 2010-11 (Previous best : 1856 TMT in 2008-09).
· The Manali Refinery won Total Productive Maintenance (TPM) Excellence Award – Category A from the Japan Institute of Plant Maintenance (JIPM).
· The Manali Refinery also achieved the highest ever Motor Spirit production of 866 TMT in 2010-11. (Previous best: 845 TMT in 2008-09).
· The Manali Refinery obtained NABL Accreditation for its Quality Control Laboratory in June 2010.
· The Cauvery Basin Refinery (CBR) improved the crude thruput to 703 TMT as compared to 514 TMT in 2009-10.
· The Cauvery Basin Refinery also achieved the highest ever distillate yield of 83.23 wt % on crude in 2010-11 (Previous best : 81.37 wt. % in 2006-07).
· Prime Minister’s Shram Vir Award was bestowed on the Company’s employee Mr. C. Ramadoss in September
· 2010 for his outstanding contribution towards improvement in Productivity and Quality.
· The Company was adjudged as the ‘Significant Turnaround PSU’ for meritorious performance by Dalal Street Investment Journal.
· The Company also received Special Commendation Award from Petrofed for Environmental Sustainability.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENTS
The world oil demand experienced a spurt in 2010 by about 2.3 mbd (million barrels of oil per day) equivalent to
114 MMTPA, over the previous year and this was the second largest increase in the last thirty years. The demand for oil is likely to increase further by 1.4 mbd (equivalent to 89 MMTPA) in 2011 which is likely to put pressure on the crude oil prices, though the increased demand will be met mostly by OPEC countries. As per the International Energy Agency (IEA), the global energy consumption is projected to increase by 18% from 2008 to 2020 rising from 12300 MTOE to 14500 MTOE. The growth in demand slows progressively, from an average of 1.4% per year in the period 2008-2020 to 0.96% per year in 2020-2035. The energy mix which will meet this increased demand will be mainly from oil (30%), coal (27%) followed by gas (22%) and other renewables (2%).
The year saw a sudden surge in crude oil prices in the last quarter with the price of Brent crude crossing $120 /bbl
in March 2011, due to unrest in North Africa and Middle East although the major oil producing countries were not
affected by it. The product cracks which showed an upward trend in the first few months of 2011 due to the expected increase in demand by Japan for its reconstruction activities following the recent natural calamity, narrowed down in the last month. We expect improvements in the cracks which may further spurt with expected upswing in the global economy.
India will continue to develop into a major refining hub in the Asian region, fourth largest refining center in the world with the total refining capacity expected to touch 232 MMTPA by 2012-13.
The consumption of Petroleum, Oil and Lubricant (POL) products in India for the year ended 31.03.2011 touched
141.75 Million tons, registering an increase of 2.9% over the previous year. The sale of Motor Spirit (MS), registered a growth of 10.9% over the previous year. The growth in the Southern Region was particularly higher at 11.5%. The sale of HSD, LPG and ATF too registered robust growth of 6.6%, 8.9% and 9.4% respectively over the last year. The demand for FO/LSHS on the other hand continues to decline. The demand for Naphtha too continues to decline due to substitution by Gas.
The successful implementation of the quality upgradation projects initiated by Indian Refineries paved the way for introduction of environment friendly upgraded transportation fuels viz., Euro IV MS and HSD in 13 Metros and BS III MS and HSD in the rest of the country. It is indeed praiseworthy that the Company's Refineries at Manali and Cauvery Basin also came up with the production of the upgraded quality of fuel, well ahead of the schedule.
The demand for Natural Gas in India is increasing from the current level of 170 MMSCMD (2010-11) to 254 MMSCMD by 2014-15 as per projections made by the Research group of CRISIL. While significant emphasis has been laid on exploration and production enhancement within the country, the bulk of the gas demand will need to be met through LNG imports. In view of the increasing demand for natural gas, a number of LNG terminals are being proposed by industry players, some of which may come at Mangalore, Ennore, Mundra and Paradeep. Besides, certain FSRU’s (Floating Storage and Regasification Units) are also being conceptualized at port locations like Dighi, Mumbai, Paradeep, Vizag, Mangalore, Cuddalore, etc. The Ennore LNG terminal being promoted by IOC is expected to meet the natural gas requirement of the Company and other industries in the Manali area.
OPPORTUNITIES AND THREATS
The rising energy demand and increasing societal aspirations especially in the emerging economies and the need for sustainable development require the oil and gas industry to ensure the security of energy supplies at affordable cost. The major challenges for the Oil and Gas industry, apart from increasing oil and gas reserves, is to use clean and efficient refining processes to produce transportation fuels, meeting the stringent specifications and increase the value added products such as petrochemical feedstocks. The reduction in demand of heavier bottom oils means that the bottom of the barrel should be converted to higher products, thus optimizing the value chain. Diversification of energy sources for the production of transportation fuels and hydrogen in the longer term, reducing vehicle emissions, increasing vehicle efficiencies and reducing CO2 emissions are other pressing priorities.
FINANCIALS
The Company has achieved a turnover of Rs.38,1280.000 Millions during the year, as compared to Rs.29,1840.000 Millions in the previous year. The profit after tax stood at Rs.5115.200 Millions as compared to Rs.6032.200 Millions in the previous year. The value addition during the year is Rs. 17486.500 Millions as compared to Rs. 15404.900 Millions in the previous year. The Reserves and Surplus also registered an increase from Rs.33130.800 Millions as on 31.03.2010 to Rs.36169.200 Millions as on March 31, 2011.
The book value per share of the Company has increased from Rs. 2324.900 Millions in the year 2009-2010 to Rs. 2529.000 Millions in the year 2010-2011.
COMPANY HISTRY:
1965
The Company has not accepted any fresh public deposits during the year 2010-11.
The Company has transferred to the Investor Education and
Protection Fund the required amount as per Section 205(C) (2) of the Companies
Act, 1956, within the stipulated time.
- The Company was Incorporated on 18th November. A formation agreement was signed on 18th November between Government of India, National Iranian Oil Company (NIOC) Iran and Amoco India Inc. USA for setting up Madras Refineries Limited.
- With the commissioning of cauvery basis refinery, capacity was enhanced to 7
million TPA and with this the company became multilocational.
1991
- An agreement for supply of Anti-oxidants Feedstock to Balmer Lawrie and Co.
Limited. Chennai was signed in September and the first supply was successfully
effected in March 1992.
- The Government of India has given approval to MRL in July for setting up Gas
Sweetining and LPG Separation facilities at Nagapattinam.
1992
- MRL signed, for the second consecutive year, a Memorandum of Understanding
(MoU) with Government of India for the year 1991-92.
- During the year, the Company crossed 1.2 million accident free employee
manhours which was accrued in 172 continuous working days.
- In collaboration with Anna University, MRL has prepared a curriculum on
"Safety and Hazards Control in Petroleum Industry" for the
Post-Graduate Course in Petroleum Refining.
- The Hexane Plant with a prodction capactiy of 25,000
Metric Tonnes per annum has been commissioned.
- A Sewage Water Treatment Plant with capacity of 2.5 MGD has been commissioned
- As a part of pollution control measure, the effluent treatment plants were
modernised to treat the effluents of the refinery for meeting the Minimum
National Standards (MINAS).
- The old refinery instrumentation control has been modenised. This includes
ON-Link Tank Level Information System, the first of its kind in India.
- The Company proposes to take up a revamp programme and install the
hydro-finishing unit.
- MRL has developed gardens and traffic islands which have received prizes in
various competitions. It is proposed to have a green belt around the new
Cauvery Basin refinery site at Panagudi, near Nagapattinam.
- The Company entered into a long term wage settlement with the non-supervisory
employees of the Company represented by Chennai Refinerires Employees Union
valid for four years effective 1st January 1990.
1993
- As per the meeting held on 11th November, a separate offer of 53,83,000
shares aggregating Rs 4306,40,000 to NIOC at Rs 80 per share was made.
- The Company proposed to set up a 350 MW power project in joint venture at a
Manali by utilising available refinery residue as fuel.
- 1141,31,100 No. of equity shares issued subscribed and paid up. During 1994,
the Company issued 266,55,300 No. of equity shares at a premium of Rs 70 as
follows (i) Firm allotment basis 59,23,400 shares to Mutual Funds; (ii)
59,23,400 shares to Indian fin. Insts; (iii) 29,61,700 shares to Foreign Fin.
Insts; (iv) The balance were issued on preferential basis. (a) 41,46,300 shares
to NRIs; (b) 3,40,000 shares to employees. Balance 103,22,200 shares to public.
1995
- A new boiler for co-generation of 130 T/HR capacity to meet the increased
stream load was commissioned.
- The Company proposed to undertake continuous catalytic reformer project to
meet zero lead and other changed specification of petrol introduced by
Government of India. Also studies were underway for the setting up of a 250 MW
power project at Manali in collaboration with CEA India Inc. of USA.
- The Company proposed to set up a 3 million tpa project at Manali at a cost of
Rs 1700 crores. 1996
- The Company commissioned the LPG separation unit and steam turbo generator
was commissioned at CBR.
- The Company obtained the first stage clearance from Government of India to
expand its refining capacity at Manila by another 3 MMTPA thereby making the
refining capacity of the company to 10 MMTPA.
- With the view to augment crude availability for the CBR, it was proposed to
install crude receipt facilities at Nagapattinam for improving crude upto 1.0
MMTPA per annum.
1997
- In the field of LOBS, the Company launched 500N grade of LOBS based on
customer's demand.
- The project to increase the existing wax deoiling unit plant capacity from
20,000 tpa to 30,000 tpa at a cost of Rs 413.200 Millions was commissioned.
- The company offered 53,83,000 equity shares of Rs. 10 each at a premium of
Rs. 70 per share on private placement basis pursuant to an agreement between
the Government of India and M/s National Iranian Oil Company (NIOC).
- The Company obtained clearance from the Govt. to expand the capacity at
Manali by another 3 million tonnes per annum.
- The Company's R and D sponsored a project on `Production of tube stocks from
Waxy Crudes' at NCL Pune.
- The company sponsored a project at Indian Institute of Petroleum for cube
character solution and additive response studies.
- The centre in collaboration with EIL and Indian Institute of Petroleum developed
a process package for NMP - Lube Extraction Technology.
- As a part of indigenisation of reverse osmosis membranes in collaboration
with Central salt and marine chemicals research institute the RandD unit
commissioned a reverse osmosis pilot plant of 50,000 litres per day capacity to
study the membrane performance.
- MRL was formed as a joint venture between the Government of India (GOI), Amco
India Inc. USA and National Iranian Oil Company (NIOC), Tehran, Iran with
initial equity contribution in the ratio of 74:13:13.
- The Company offered 53,83,000 No. of equity shares of Rs 10 each at a premium
of Rs 70 per share on private placement basis pursuant to an agreement between
the Government of India and M/s National Iranian Oil Company.
- The Company received a sum of Rs 2786,00,000 from NIOC and accordingly
34,82,500 No. of equity shares were allotted to NIOC. The balance of 19,00,500
shares were to be allotted on receipt of balance amount.
- Madras refineries Limited has signed a memorandum of understanding with the
Ministry of Petroleum and Natural Gas for 1997-98.
- The joint sector Southern Petrochemical Industries Corporation Limited (SPIC)
has proposed to go along with the State-owned Madras Refineries Limited (MRL)
to implement the PFY project in Tamil Nadu.
- Around 800 workers of Madras Refineries Limited went on a tool-down strike
following a call by the executive committee of the Madras Refineries Employees
Union (MREU).
- The company had suspended the general secretary and the joint secretary
(Manali unit) of the union following an incident during negotiations with the
management, when the two poured kerosene on themselves and threatened to commit
self-immolation if the management did not concede their demands.
- Another joint venture is also considered between Petronas, IOC and MRL for
setting up an underground cavern storage facility at the Ennore liquefied
natural gas import station.
- CARE has assigned a PR+ rating to the CP programme of Rs 25 crore of Madras
Refineries Limited and has retained in PR1 + rating assigned to the
intercorporate borrowing of Rs 125 crore.
1998
- The company proposed to set up a permanent jetty facility to make available
the required quantiuty of crude at Cauvery basin, Nagapattinam.
- The company signed a MOU with Indian Oil Corporation Limited to work jointly
on projects of mutual benefit including a refinery project in Southern India,
identify various projects fore collaboration including pursuance of
techno-economic Feasibility reports and on estabhlishing the Techno-economic
viability of identified projects from joint venture companies to implement the
same.
- Madras Refineries Limited (MRL) has signed a memorandum of understanding
(MoU) on May 22 with the Union Government for 1998-99.
- Madras Refineries Limited (MRL) has opted for 20 per cent equity in the
roughly 350 km-long Chennai-Trichy-Madurai product pipeline, being set up by
Petronet India Limited.
1999
- The Tamil Nadu Electricity Board signed a power purchase agreement with
Madras Refineries Limited.
- Madras Refineries Limited has reached an agreement with two SPIC group
companies - Manali Petrochemicals Limited (MPL) and SPIC Organics Limited
(SORL) - under which the two companies would withdraw their cases against MRL
relating to a dispute over pricing of propylene.
- The company has signed a tripartite agreement with CDSL and Karvy Consultants
Limited, share transfer agent of the company, for the purpose of admission of
equity shares of the company to the depository system of CDSL.
2000
- Indian Additives Limited. a joint venture of the company, and Chevron
Chemical Company US, has ceased to be a subsidiary of the company.
- The Company has changed its name to Chennai Petroleum Corporation Limited.
(CPCL) with effect from 6th April.
- The Company has signed a MoU with Indian Institute of Safety and Environment,
Chennai to conduct Safety courses.
- The Company has shut its 70,000-barrel-per-day No. 1 crude distillation unit
to correct a technical fault.
- The Symbol of the company shall be changed from MADRASREFN to CHENNPETRO
effective from August 9.
- The company is expanding the capacity of its Cauvery Basin Refinry at
Panangudi near Nagapattinam to one million tonne from the current 0.5 million
tonne.
- Chennai Petroleum Corporation Limited. (CPCL) was given the award for
"the Best Employer-Employee Relationship" by the Rotary Club of
Chennai.
- The Chennai Petroleum Corporation Limited. has launched crumb rubber modified
bitumen for laying high quality and cost effective roads.
2001
- The Chennai Corporation and EDL India Pvt. Limited. entered into an MoU, to
set up a 14.85 MW waste-to-energy project using municipal solid waste.
- There was a fire in the FCC unit of the Manali refinery on February 20. The
fire was completely put out within 50 minutes and the unit was shut down.
- Chennai Petroleum Corporation Limited. has signed an MoU with the Union
Ministry of Petroleum and Natural Gas for 2001-02.
2002
- Chennai Petroleum Corporation Limited has informed that Mr L Sabaretnam, CEO
of ICL Sugars Limited has been appointed as a Part-time Non-Official
Independent Director on the Board of the company.
-Gowrishankar ceases to be a Director of Chennai Petroleum Corporation.
-Chennai Petroleum Corporation Limited has informed that Mohit Sinha ceased to
be a Director on the Board of the company.
-Chennai Petroleum Corporation Limited has informed BSE that Mr M B L Agarwal,
Executive Director (Internal Audit), Indian Oil Corporation Limited ceased to
be a Director on the Board of Chennai Petroleum Corporation Limited (CPCL)
effective August 01, 2002. In his place, Mr T L Jain, Executive Director
(Southern Region) Indian Oil Corporation Limited, has been appointed as a part
time Director on the Board of CPCL.
-Chennai Petroleum Corporation Limited has informed BSE that pursuant to letter
from the Ministry of Petroleum and Natural Gas, Government of India, Mr S V
Narasimhan, Director (Finance) Chennai Petroleum Corporation Limited has
assumed additional charge of the post of Managing Director, CPCL effective
October 01, 2002 consequent to the superannuation of Mr S Rammohan Chairman and
Managing Director of the Company.
-Chennai Petroleum Corporation Limited has informed BSE that Mr M S
Ramachandran, Chairman, Indian Oil Corporation Limited and Mr A K Arora
Director (Refineries), IOCL have been appointed as part time Directors on the
Board of CPCL effective October 01, 2002.
-S V Narasimhan appointed as MD of Chennai Petro.
2003
- Chennai Petroleum Corporation Limited has informed BSE that Mr R Sankaran,
General Manager (Projects and Development) of the Company has assumed charge of
the post of Director (Technical) of the Company with effect from January 01,
2003 in place of Mr. M P Srinivasan who has superannuated on December 31, 2002.
-Chennai Petroleum Corporation Limited has announced following changes in its
Board:
Mr. P S Rao, Executive Director, Indian Oil Corporation Limited has been
appointed as part time director on the board of CPCL in place of Mr. A K Mishra
effective June 1, 2003.
Mr. Chandan Dasgupta, Executive
Director, Indian Oil Corporation Limited has been appointed as a part time
director on the Board of CPCL in place of Mr. T L Jain effective june 1, 2003.
-Chennai Petroleum Corporation has informed BSE that the company has set up a
Crude Oil Jetty Facility within the ports of Nagapatnam at the cost of Rs960
million to meet crude oil requirements of Cauvery basin Refinery.
-Mr.Jaspal Singh,Director (Indian Oil Corporation) and Prabha Das have been
appointed as the part time Directors on the Board of CPCL.
-Mr.Mahmood Vaezi of International Policy, Centre for Strategic
Research,Naftrian Intertrade Company Limited, Tehran, Iran has been nominated
as the Director on the Board of the company.
-Mr.K.Skandan, Secretary to Government of TamilNadu, Industries Department has
been appointedas part time Independent Director on theBoard of CPCL.
-Mr. K Skandan, IAS, ceased to be a Director
-The Chennai Port Trust has signed an agreement with various oil companies,
including Chennai Petroleum Corporation Limited (CPCL), to set up a Tier I Oil
Spill Response facility at the Chennai port.
2004
-Chennai Petroleum Corporation Limited has informed that equity shares of the
company have been delisted from The Stock Exchange - Ahmedabad wef January 19,
2004.
1. Mr. N.C. Sridharan, General Manager (Finance) will hold additional charge of
the post of Director (Finance) w.e.f. January 20, 2004 for a period of three
months or until further order, whichever is earlier, in addition to his own
duties, as communicated by the Ministry of Petroleum and Natural Gas vide
letter dated January 12, 2004.
2. Mr. R. Sankaran, Director (Technical) will hold additional charge of the
post of Director (Operations) w.e.f. February 1, 2004 for a period of six
months or until further order, whichever is earlier, in addition to his own
duties, as communicated by the Ministry of Petroleum and Natural Gas vide
letter dated January 12, 2004.
-Chennai Petroleum Corporation Limited has informed that its equity shares have
been delisted from the Delhi Stock Exchange Limited (DSE) w.e.f. February 19,
2004.
-Chennai Petroleum Corporation Limited has informed that Mr A Kasturi Rangan
Executive Director (Operations), Chennai Petroleum Corporation Limited has been
appointed as Director (Operations), Chennai Petroleum Corporation Limited
2005
-Equity shares of the company have been delsited from The Calcutta Stock
Exchange Association Limited w.e.f December 09,2004.
-IOC inks pact with CPCL to provide project consultancy on crude pipeline
2006
-CPCL to acquire stake in SPV for Chennai-Bangalore pipeline project
-Jawaharlal Nehru Centenary Award for Energy Performance 2007 -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.
-State Safety Award for 2005 2008
-CPCL received Exim Achievements Award from Tamil Chamber of Commerce at a
Function Presided by His Excellency the Governor of Tamil Nadu. -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.
2009 -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.
- Chennai Petroleum Corporation Limited (CPCL) has appointed Mr. K.
Balachandran as the Managing Director effective December 01, 2009.
-Rural Development and Panchayat Raj Department, Government of Tamil Nadu has selected
Chennai Petroleum Corporation Limited (CPCL) 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 Tamil Nadu. -CPCL has been selected for the Presentation of the
prestigious 10th Annual "Greentech Environment Excellence
Award-2009".
2010
-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.
PRESS RELEASE:
Director (Technical) appointed
Mr. T. S. Ramachandran (56) has been appointed as the Director (Technical) of Chennai Petroleum Corporation Limited (CPCL) by the Government of India. He assumed charge today (26.07.2011).
An Honours graduate in Electrical Engineering from University of Calicut, Mr. T. S Ramachandran after a three year stint in private sector, joined M/s Indian Oil Corporation Ltd in 1980 in Projects Department at Gujarat Refinery. In a career spanning over three decades, he has so far worked at Refineries Headquarters at New Delhi and refineries at Gujarat, Gauhati and Mathura in various capacities across different functions. During last ten years, he had been associated with some of the prestigious projects of IOCL like DHDT and MSQ upgradation at Mathura and the world scale Naphtha cracker project at Panipat, that was completed in a record 46 months, equaling the global bench marks for similar complex projects.
An avid reader, Mr. T. S Ramachandran has attended advanced management programmes conducted by Indian Oil Institute of Petroleum Management (IIPM) as also Administrative Staff College of India (ASCI), Hyderabad.
Mr. Ramachandran is married and has a daughter.
Prior to this appointment, he was General Manager (Projects), IOC Refinery Headquarters, at New Delhi.
04.06.2011
Mobile Ambient Air Monitoring Unit of CPCL launched
Chennai Petroleum Corporation Limited (CPCL) has launched a mobile ambient air monitoring unit that will keep a tab on atmospheric pollution in CPCL’s premises in Manali.
At a function to mark the World Environment Day celebrations on 03.06.2011 at Manali Government Higher Secondary School, the Hon’ble Minister for Backward Classes and Environment, Government of Tamilnadu Mr. T. K. M. Chinnayya launched the state-of-the art Ambient Air Quality Monitoring Van. The Rs.10.000 Millions van is fitted with a set of sensors that can gauge sulphur-di-oxide, nitrous oxide, particulate matter, carbon-monoxide, and hydrocarbons. It can also measure weather parameters such as temperature, humidity, wind velocity and direction. Mr. K. Balachandran, Managing Director, Mr. S. Venkataramana, Director (Operations), Ms.D.Lilly, Director (Finance), CPCL, Mr. R. Ramachandran, Member-Secretary, Tamilnadu Pollution Control Board and Mr.Mullai R.Gnanasekar, Chairman, Manali Municipality, participated.
As a mark of the theme of this year’s observation of World Environment Day, the Hon’ble Minister and the senior officials planted saplings in the premises of Manali Government Higher Secondary School.
Participating in his first public function after taking over as a Minister in the new Government, the Hon’ble Minister called for striking a balance between industrialization and environmental safety. Lauding CPCL for its efforts in environment protection, the Hon’ble Minister noted that Manali being a “Critical Polluted Area”, urged CPCL and other industries operating in the area to ensure continued commitment to minimize pollution hazards in the area.
Mr. K. Kuppan, Hon’ble Member of Legislative Assembly, appealed to the Tamilnadu Pollution Control Board to regularly monitor pollution levels in Manali and launch measures to ensure the health of the residents in the area.
Mr. K. Balachandran, Managing Director, CPCL, in his welcome address said that CPCL aimed to double the green belt stretches to 100 acres. This he said would be done by developing green belts off its premises in areas such as its desalination plant in Kattupalli. Mr. S. Venkataramana, Director (Operations), CPCL, proposed a vote of thanks.
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.56.99 |
|
|
1 |
Rs.88.97 |
|
Euro |
1 |
Rs.71.57 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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.