MIRA
INFORM REPORT
|
Report Date : |
02.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
ESSAR OIL LIMITED |
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Registered
Office : |
Khambhalia Post, Post Box No. 24, District |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
12.09.1989 |
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Com. Reg. No.: |
04-032116 |
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Capital
Investment / Paid-up Capital : |
Rs.13656.700 Millions |
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CIN No.: [Company Identification
No.] |
L11100GJ1989PLC032116 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
RKTE00150D |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer and Exporter of Petrol, Diesel, Kerosene and Service Provider of thermal power generation. |
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No. of Employees
: |
1676 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 260000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Essar Group. It is an established and a reputed company
having satisfactory track record. Financial position of the company appears
to be good. Trade relations are reported as decent. Business is active. Payments
are reported to be usually correct and as per commitments. The company can be considered for business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
FITCH |
|
Rating |
LONG TERM RATING : BBB- |
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Rating Explanation |
Good credit quality |
|
Date |
23.08.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered
Office/ Factory 1 : |
Khambhalia Post,
Post Box No. 24, District |
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Tel. No.: |
91-2833-241444 |
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Fax No.: |
91-2833-662929 |
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E-Mail : |
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Website : |
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Corporate
Office 1 : |
Essar House, P.
O. Box No. 7945, 11, Keshavrao Khadye Marg, Mahalaxmi, Mumbai – 400 034,
Maharashtra, India |
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Tel. No.: |
91-22-24950606/
66601100/ 50011100 |
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Fax No.: |
91-22-23544281/
23540450 |
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E-Mail : |
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Area : |
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Factory 2 : |
The company’s Oil
fields are located at Mehsana, |
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Corporate
Office 2 : |
Located at:
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Overseas
Office : |
Located at:
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DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Shashi Ruia |
|
Designation : |
Chairman and
Promoter Director |
|
Brief: |
Mr. Shashi Ruia
is a first generation entrepreneur industrialist. With brother Ravi, Shashi Ruia
founded the Essar Group, which today is a multinational conglomerate with
operations in more than 20 countries, employing 70,000 people, and revenues
of US$15 billion. His career began in the family business in 1965 under the
guidance of his father, the late Nand Kishore Ruia. The Ruia brothers
pioneered sectors as diverse as shipping, marine construction, steel, power,
offshore engineering and refining & oil exploration. Shashi Ruia’s vision
saw the Essar Group gain a first mover advantage in many of these businesses. |
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Name : |
Mr. Prashant Ruia |
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Designation : |
Promoter Director |
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Brief: |
Chief Executive
of Essar Group Mr. Prashant Ruia is a prominent Indian industrialist. Mr. Prashant Ruia
has been involved with the Group’s operations and management since 1985 and
is a key member of Essar Group’s strategy think tank. He is actively involved
in the Group’s growth and diversification within India and internationally.
He is known for his project execution skills, financial expertise and people
management capabilities. |
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Name : |
Mr. Anshuman Ruia
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Designation : |
Promoter Director
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Brief: |
Mr Anshuman Ruia
is a board director of major companies in the Essar Group. He has over a decade
of experience in overseeing the Group’s major businesses. He currently
oversees Essar’s Shipping, Ports and Logistics, Telecom and BPO, and Power
businesses. He is responsible for the expansion and diversification of the
Power business into new, renewable energy sources and its entry into the
transmission and distribution segment. |
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Name : |
Mr. Naresh K.
Nayyar |
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Designation : |
Managing
Director and Chief Executive Officer |
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Brief: |
Mr. Naresh Nayyar
was appointed as Managing Director, of the Company on October 15, 2007. He is
a chartered accountant and an alumnus of the Indian Institute of Management,
Ahmedabad. He has more than 35 years’ experience in the oil and gas industry.
Prior to joining Essar Oil, Mr Nayyar was in ONGC Mittal Energy Limited where
he was instrumental in steering its growth through mergers and acquisitions.
Prior to that he served with Indian Oil Corporation. He held several key
assignments in planning and business strategy, finance, treasury and
international trade. |
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Name : |
Mr. P. Sampath |
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Designation : |
Director Finance |
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Brief: |
Mr. Sampath is
the Chief Financial Officer of Essar Energy Plc, UK. He joined Subject in October,
2008 as its Chief Financial Officer, and joined the Board w.e Limited. April
1, 2009 as Director - Finance. After taking over his present role,
he continues as non-Executive Director. He has a first class Bachelor of
Commerce degree from Madras University, is a Fellow of both the Institute of
Cost and Works Accountants of India and the Institute of Company Secretaries
of India. He has more than 30 years’ experience in various fields including
global corporate finance and treasury, mergers and acquisitions, corporate
business planning, investor relations, global HR strategy and financial and
management accounting. Prior to joining Essar Group, Mr. Sampath was Chief
Financial Officer for RPG Enterprises Limited and Managing Director of GHCL
Limited |
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Name : |
Mr. Dilip J.
Thakkar |
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Designation : |
Director and
Independent |
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Brief: |
Mr. Thakkar was
appointed to the board of directors on November 3, 1994. He is a Fellow of the
Institute of Chartered Accountants of India. He is a practicing chartered
accountant, with over 50 years’ experience in taxation and foreign exchange
regulations. He is associated with several public and private companies as a
director. |
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Name : |
Mr. K. N.
Venkatasubramanian |
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Designation : |
Director |
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Brief: |
Mr.
Venkatasubramanian was appointed to the board of directors on November 29,
2000. He is a chemical engineer from A.C. College of Technology, Chennai and
an M.Tech from IIT, Kharagpur. He has over 50 years of experience in the
petrochemicals sector having worked for IPCL, IOCL and Gulf Oil Limited. He
has previously served as Director, Marketing and Director, Operations of
IPCL, Chairman and Managing Director of Engineers India Limited, Chairman and
Managing Director of IOC and as Chairman of Gulf Oil Limited He is currently
Chairman of Times Technoplast Limited |
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|
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Name : |
Mr. K.V.
Krishnamurthy |
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Designation : |
Independent
Director |
|
Brief: |
Mr. Krishnamurthy
was appointed to the board on January 22, 2010. He is a chartered accountant
and a fellow of the Indian Institute of Bankers, having previously served as
a member of its Governing Board. He has more than 33 years’ experience in
public sector banking. His expertise includes domestic and international
banking, treasury management, risk management, foreign exchange management
and human resource management. He is credited with the remarkable turnaround
of both Bank of India and Syndicate Bank, two leading nationalised banks. He
has been the chairman/director of nationalised banks including Bank of India,
Bank of Baroda, Syndicate Bank and other financial institutions including
Indo Hong Kong International Finance Company Ltd, Export Credit Guarantee
Corporation of India and Agricultural Finance Corporation of India Ltd. Mr.
Krishnamurthy is also a director on the board of various Indian public
limited companies. |
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|
Name : |
Mr. Melwyn Rego |
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Designation : |
Nominee of IDBI
Limited |
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Brief: |
Mr Melwyn Rego
was appointed to the board of directors on October 18, 2010. He joined IDBI
in February 1984. His assignments were in the areas of Rehabilitation
Finance, Project Finance and International Resources. He was deputed to Tata
Home Finance Limited in May 2003 when IDBI took over the company. The
takeover was effected in September 2003 and Melwyn Rego was appointed as
Managing Director and CEO of IDBI Homefinance Limited Mr. Rego continued as
Managing Director and CEO until December 2007 after which he returned to IDBI
Bank Limited (after its conversion to a commercial bank). He is currently
Executive Director at IDBI Bank Limited |
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Name : |
Mr. V. K. Sinha |
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Designation : |
Nominee of LIC of
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Brief: |
Mr. Sinha was appointed
to the board of directors on October 30, 2006. He holds a Bachelor of Arts
(Honours) degree. Prior to his retirement Mr. V.K. Sinha was the zonal
manager of the northern zone, Life Insurance Corporation of India (“LIC”) at New Delhi
where he headed the offices of LIC situated in 6 states: Delhi, Punjab,
Haryana, Rajasthan, Himachal Pradesh and Jammu & Kashmir. He previously
served as the Zonal Manager, north central zone, Kanpur for four years. He
started his career as a Direct Recruit Officer in 1977, and in a career
spanning more than 3 decades, he has held prominent positions as Sr.
Divisional Manager (in-charge) of Jamshedpur and Muzaffarpur for the LIC. |
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Name : |
Mr. Manju Jain |
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Designation : |
Nominee of IFCI
Limited |
|
Brief: |
Mrs. Manju Jain
was appointed to the board of directors July 26, 2010. She is a chartered
accountant. She joined IFCI in 1995, as a Management Trainee, she has
subsequently worked in its credit department at head office, New Delhi and
Mumbai regional office. At present, she is Vice President in-charge of credit
at Head Office, Delhi. |
KEY EXECUTIVES
|
Name : |
Mr. Sheikh S
Shaffi |
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Designation : |
Company Secretary
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2012
|
Category of
Shareholders |
No. of Shares |
Percentage of
Holding |
|
(1) Indian |
|
|
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|
39162217 |
11.03 |
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|
39162217 |
11.03 |
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|
178858724 |
50.36 |
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|
178858724 |
50.36 |
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Total shareholding
of Promoter and Promoter Group (A) |
218020941 |
61.39 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
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|
10010800 |
2.82 |
|
|
11328132 |
3.19 |
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|
23841605 |
6.71 |
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|
45180537 |
12.72 |
|
|
|
|
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|
15759855 |
4.44 |
|
|
|
|
|
|
67897024 |
19.12 |
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|
5660797 |
1.59 |
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|
2625160 |
0.74 |
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|
2625160 |
0.74 |
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|
91942836 |
25.89 |
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Total Public
shareholding (B) |
137123373 |
38.61 |
|
Total (A)+(B) |
355144314 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
- |
- |
|
|
1010522772 |
- |
|
|
- |
- |
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|
1010522772 |
- |
|
Total (A)+(B)+(C) |
1365667086 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Petrol, Diesel,
Kerosene and Service Provider of thermal power generation. |
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Products with ITC Code : |
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PRODUCTION STATUS (As on 31.03.2011)
|
Licensed Capacity |
Not applicable since delicensed |
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Installed Capacity
(Million MT per annum) |
10.50 |
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Actual Throughput
(Million MT per annum) |
14.76 |
GENERAL INFORMATION
|
No. of Employees : |
1676 (Approximately) |
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Bankers : |
·
ICICI Bank Limited ·
State Bank of India ·
IDBI Bank Limited ·
Punjab National Bank ·
HDFC Bank Limited ·
Axis Bank Limited ·
Indian Overseas Bank ·
Oriental Bank of Commerce ·
Indian Bank ·
Central Bank of India ·
Bank of India ·
State Bank of Patiala ·
Allahabad Bank ·
Syndicate Bank ·
Bank of Baroda ·
State Bank of Mysore |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins
and Sells Chartered Accountants |
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Address : |
Ahmadabad, Gujarat, India |
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Holding Companies: |
· Essar Global Limited - Caymen (Ultimate Holding Company) · Essar Energy Plc - U.K. (Holding Company of Vadinar Oil - Mauritius) · Vadinar Oil - Mauritius (Holding Company) |
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Associate: |
· Vadinar Power Company Limited (VPCL) |
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Fellow
Subsidiaries: |
·
Aegis Limited (Merger of Essar Engineering
Services Limited ·
Aegis BPO Services (GURGAON) Limited with Aegis
Limited) (AEGIS) ·
Aegis Aspire Consultancy Services Limited (AACSL) ·
Bhandar Power Limited (BPOL) ·
Essar Bulk Terminal Limited (EBTL) ·
Essar Bulk Terminal (Salaya) Limited (EBTSL) ·
Essar Electrical Power Development Corporation
Limited (EEPDCL) ·
Essar Energy Overseas Limited (EEOL) ·
Essar Exploration and Production India Limited
(EEXPIL) ·
Essar Exploratio and Production Limited (EEXPL) ·
Essar Exploration and Production Southeast Asia
Limited (EEXPSEAL) ·
Essar Energy Holdings Limited - Mauritius (EEHL) ·
Essar Gujarat Petrochemicals Limited (EGPL) ·
Essar Logistics Limited (ELL) ·
Essar Offshore Subsea Limited (EOSL) ·
Essar Oilfield Services India ·
Limited (EOFSIL) ·
Essar Oilfield Services Limited (EOFSL) ·
Essar Oil UK Limited (EOLUK), Essar ·
Power Gujarat Limited (EPGL) ·
Essar Projects (India) Limited (EPIL) ·
Essar Project Management ·
Consultants Limited (EPMCL) ·
Essar Power Limited (EPOL) ·
Essar Steel Limited (Merger of Essar Steel Orissa
Limited ·
Essar Steel Hazira Limited ·
Hazira Pipe Mills Limited ·
Hazira Plates Limited ·
Essar SEZ Hazira Limited (ESHL-SEZ) ·
Essar Shipping and Logistics Limited (ESLL) ·
Essar Shipping Ports and Logistics Limited (ESL) ·
Vadinar Oil Terminal Limited (VOTL) ·
Vadinar Ports and Terminals Limited (VPTL). |
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|
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Related Parties : |
· Arkay Holdings Limited (ARKAYHPL) · Asia Motor Works Limited (AMW) (Related Party upto March 31, 2010) · Essar Agrotech Limited (EATL) · Essar Energy Services Limited (EESL) · Essar Heavy Engineering Services Limited (EHESL) · Essar House Limited (EHL), Essar Investments Limited (EIL) · Essar Information Technology Limited (EITL) · Essar Infrastructure Services Limited (EISL) · Essar Properties Limited (EPL), Essar Steel (Jharkhand) Limited (ESTLR), Futura Travels Limited (FUTURA) · Ibrox Estates Private Limited (HILLPL) · India Securities Limited (ISL) · Kanak Communications Limited (KANAKCL) · Kartik Estates Private Limited (KEPL) · Neelkamal Traders Private Limited (NEELKAMAL) · New Ambi Trading and Investments Private Limited (NEWAMBITPL) · Paprika Media Limited · Sinter-Keramos and Composites Private Limited (SKCPL) · The Mobile Stores Limited (TMSL) ·
Teletech Investments (India) Ltd (TIL)
(Related party upto March 31,2010) ·
Vadinar Properties Limited (VPL) |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000000 |
Equity Shares |
Rs.10/- each |
Rs.50000.000
Millions |
|
|
|
|
|
Issued, Subscribed
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1427593086 |
Equity Shares |
Rs.10/- each |
Rs.14275.930
millions |
|
|
|
|
|
Paid-up
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1365667086 |
Equity Shares |
Rs.10/- each |
Rs.13656.700
Millions |
|
|
Add: Forfeited shares |
|
Rs.166.000
Millions |
|
|
|
|
Rs.13822.700 millions |
Notes: - Of the above equity shares:
a) 65,370,000 (Previous year 65,370,000) equity shares were allotted as fully paid up equity shares pursuant to a contract for consideration other than cash during the financial year 1992-1993.
b) 1,010,522,772 (Previous year 846,385,290) equity shares are represented by 6,604,724 (Previous year 5,531,930) global depository shares (GDS).GDS issued during the year 1,072,794 (Previous year Nil) are represented by 164,137,482 (Previous year Nil) equity shares.
c) 4,761,000 Global Depository Shares (“GDSs”) represented by 728,433,000 (Previous year 4,761,000 GDSs represented by 728,433,000) underlying equity shares of Rs.10 each are held by Vadinar Oil, Mauritius, the holding Company pursuant to section 4(6) of the Companies Act, 1956.
d) 177,654,041 equity shares and 1,843,724 GDSs represented by underlying 282,089,772 equity shares (Previous year 74,729,437 equity shares and 770,930 GDSs represented by underlying 117,952,290 equity shares) of Rs.10 each are held by Essar Energy Holdings Ltd., Mauritius, subsidiary of the holding Company.
e) 100 (Previous year 100) equity shares of Rs.10 each are held by Hazira Steel 2, subsidiary of ultimate holding company, Essar Global Limited Cayman Islands.
f) Nil (Previous year 3,838,104) equity shares of Rs.10 each are held by Essar Shipping Ports & Logistics Limited, subsidiary of ultimate holding Company.
g) Nil (Previous year 211,000) equity shares of Rs.10 each are held by Essar Steel Limited, subsidiary of ultimate holding Company.
h) Teletech Investments India Limited was a subsidiary of ultimate holding Company during the previous year and held 100,080,083 equity shares of Rs.10 each as on March 31, 2010. During the year it has ceased to be subsidiary of the ultimate holding Company.
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 |
13822.700 |
12181.300 |
12181.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
910.300 |
|
|
3] Reserves & Surplus |
51556.300 |
28365.700 |
28075.600 |
|
|
4] (Accumulated Losses) |
0.0000 |
(5342.600) |
(5347.100) |
|
|
NETWORTH |
65379.000 |
35204.400 |
35820.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
122744.200 |
94705.900 |
94191.500 |
|
|
2] Unsecured Loans |
22725.100 |
8831.400 |
6125.600 |
|
|
TOTAL BORROWING |
145469.300 |
103537.300 |
100317.100 |
|
|
DEFERRED TAX LIABILITIES |
114.500 |
0.000 |
0.000 |
|
|
Advance towards issue of global depository shares |
0.000 |
11532.100 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
210962.800 |
155616.400 |
136137.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
117440.900 |
123093.500 |
126058.400 |
|
|
Capital work-in-progress |
84230.400 |
43187.500 |
19139.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
1030.000 |
2030.000 |
1030.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
5.700 |
5.700 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
57491.400
|
39694.400 |
22509.300 |
|
|
Sundry Debtors |
23673.000
|
19574.200 |
11653.500 |
|
|
Cash & Bank Balances |
29586.600
|
13507.500 |
11746.300 |
|
|
Other Current Assets |
4978.400
|
4065.400 |
4199.200 |
|
|
Loans & Advances |
7378.800
|
7283.700 |
9122.700 |
|
Total
Current Assets |
123108.200
|
84125.200 |
59231.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
73616.900
|
84096.800 |
60331.900 |
|
|
Other Current Liabilities |
39260.000
|
17508.900 |
8742.100 |
|
|
Provisions |
1969.800
|
562.400 |
253.400 |
|
Total
Current Liabilities |
114846.700
|
102168.100 |
69327.400 |
|
|
Net Current Assets |
8261.500
|
(18042.900) |
(10096.400) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
210962.800 |
155616.400 |
136137.200 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
469882.100 |
365046.100 |
375164.100 |
|
|
|
Other Income |
3540.000 |
8719.300 |
1837.400 |
|
|
|
TOTAL (A) |
473422.100 |
373765.400 |
377001.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of traded petroleum products |
19642.000 |
17057.400 |
6509.300 |
|
|
|
Consumption of raw materials |
421292.700 |
328559.800 |
325602.700 |
|
|
|
Increase)/Decrease in stock |
(11576.400) |
(3108.100) |
9917.500 |
|
|
|
Operating expenses |
7356.600 |
4135.200 |
3682.800 |
|
|
|
Employee costs |
1196.700 |
975.000 |
968.800 |
|
|
|
Selling and marketing expenses |
4091.400 |
3812.600 |
3547.700 |
|
|
|
General and administrative expenses |
3624.200 |
2955.300 |
14746.600 |
|
|
|
TOTAL (B) |
445627.200 |
354387.200 |
364975.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
27794.900 |
19378.200 |
12026.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
12202.400 |
11809.300 |
10914.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS)BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
15592.500 |
7568.900 |
1111.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
7308.600 |
7283.100 |
6548.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
8283.900 |
285.800 |
(5437.200) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1745.100 |
(8.800) |
(302.100) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
6538.800 |
294.600 |
(5135.100) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(5565.100) |
(5569.600) |
(514.500) |
|
|
|
|
|
|
|
|
|
Add: |
Amount transferred
from foreign projects reserve |
0.000 |
4.500 |
80.000 |
|
|
|
|
|
|
|
|
|
Less: |
Amount transferred
to debenture redemption reserve |
603.300 |
294.600 |
0.000 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
370.400 |
(5565.100) |
(5569.600) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
155573.600 |
87695.100 |
109686.900 |
|
|
TOTAL EARNINGS |
155573.600 |
87695.100 |
109686.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
374753.900 |
337504.700 |
334484.300 |
|
|
|
Stores & Spares |
1508.100 |
790.000 |
1016.300 |
|
|
|
Capital Goods |
19509.200 |
3239.200 |
584.000 |
|
|
TOTAL IMPORTS |
395771.200 |
341533.900 |
336084.600 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
Basic |
4.85 |
0.25 |
(4.30) |
|
|
|
Diluted |
4.47 |
0.24 |
(4.30) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
30.06.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
5th
Quarter |
|
Net Sales |
150240.000 |
130260.000 |
129330.000 |
175430.000 |
200230.000 |
|
Total Expenditure |
141580.000 |
128890.000 |
124510.00 |
172580.000 |
204330.000 |
|
PBIDT (Excl OI) |
8660.000 |
1370.000 |
4820.000 |
2850.000 |
(4100.000) |
|
Other Income |
470.000 |
1220.000 |
80.000 |
1590.000 |
940.000 |
|
Operating Profit |
9130.000 |
2590.000 |
4900.000 |
4440.000 |
(3160.000) |
|
Interest |
2840.000 |
3170.000 |
3540.000 |
4550.000 |
7660.000 |
|
Exceptional Items |
0.000 |
0.000 |
(40150.000) |
(2950.000) |
0.000 |
|
PBDT |
6290.000 |
(580.000) |
(38790.000) |
(3060.000) |
(10820.000) |
|
Depreciation |
1810.000 |
1830.000 |
1890.000 |
2090.000 |
3180.000 |
|
Profit Before Tax |
4480.000 |
(2410.000) |
(40680.000) |
(5150.000) |
(14000.000) |
|
Tax |
(210.000) |
(750.000) |
(820.000) |
0.000 |
0.000 |
|
Profit After Tax |
4690.000 |
(1660.000) |
(39860.000) |
(5150.000) |
(14000.000) |
|
Net Profit |
4690.000 |
(1660.000) |
(39860.000) |
(5150.000) |
(14000.000) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.38
|
0.08 |
(1.36) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.76
|
0.08 |
(1.45) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.44
|
0.14 |
(2.93) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.01 |
(0.15) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.98
|
5.84 |
4.74 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.07
|
0.82 |
0.85 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
32] |
Passport No of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
FINANCIAL RESULTS
This financial year has been a year of significant importance since the
refinery started commercial production in 2008. During the year the Company
generated a strong revenue growth of 25% at Rs.531190.000 millions up from
Rs.424020.000 millions in the previous financial year. This growth can be
attributed both to increase in throughput and higher oil prices. The Current
Price Gross Refinery Margin (CP GRM) for the refinery business increased to US$
6.91 per barrel from US$ 3.7 per barrel for the previous financial year. The
EBIDTA grew by more than 43% to Rs.27790.000 millions from Rs.19380.000
millions for last financial year. Annual Profit after Tax (PAT) jumped to
Rs.6540.000 millions from Rs.290.000 millions in previous financial year, a
23-fold increase.
Considering the profits for the current financial year, carry forward of
losses of previous financial years and funds requirements for meeting expansion
plans of the Company, the Board has not recommended any dividend for the
financial year.
MANAGING DIRECTOR
AND CEO’S REPORT
Refining
The refinery achieved a throughput of 14.76 MMT in FY2010-11—a capacity
utilization of more than 140 per cent. This is the highest volume they have
ever achieved and makes us one of India’s largest single location refineries.
They have also improved their operational efficiency, achieving the
lowest fuel and loss of 5.83 per cent ever. Their fluidized catalytic cracking
(FCC) unit completed an outstanding 515 days of on-stream operations. The
Visbreaker Unit achieved its highest ever on-stream period of 182 days.
As of 31st March 2011, the refinery had completed 1,094 days of
operations without a Lost Time Incident. The refinery team deserves praise for
improving efficiency without compromising on safety.
They commissioned the natural gas pipeline to their refinery and have
partly replaced fuel oil with gas, resulting in cleaner emissions. The refinery
has also started processing Mangala crude from Cairn India’s Barmer oilfield in
Rajasthan. About 1.3 MMT of Mangala crude was processed during the year.
Mangala crude improves their crude supply security and allows us to benefit
from lower logistics costs and taxes. The refinery processed 65 per cent of
lower cost, heavy or ultra-heavy crudes this year, while 74 per cent of its
products were higher value light and middle distillates.
Refinery expansion
project
A large part of the procurement and construction work for the refinery
expansion project was completed this year. With an overall progress of 86 per cent
as of 31st March 2011, mechanical completion of the expansion units
will be achieved in the second and third quarters of this calendar year. The
optimisation project to further enhance the capacity to 20 MMTPA is on track.
The Phase 1 expansion and Optimization will not only increase production but
also enhance the refinery’s complexity from 6.1 to 11.8. This will help us
increase the proportion of lower cost, heavy and ultra-heavy crude that the
refinery processes, and produce a greater proportion of higher value middle and
light distillates.
Marketing
For their marketing business, this has been a mixed year. While petrol
pricing was deregulated in June 2010, high crude oil and product prices in the
latter part of the financial year made it difficult for retailers to match
international petrol prices. However, taking advantage of a level playing field
in petrol retailing earlier in the year, their retail team notched up 155 KT of
petrol sales. This is the highest petrol retail sales volume they have ever
achieved and they could have improved on this figure had market conditions not
slowed us down in the latter part of the year.
They continue to expand their retail network, though now at a slower
pace. They have 1,381 operational outlets, with another 254 in various stages
of construction. In a bid to provide their franchisees with additional revenue
sources, the company has forged alliances with alternative non-fuel retailers
in segments like financial services and food and beverages. They have also partnered
with auto-gas marketing companies and added CNG and Auto-LPG dispensing
stations in some outlets.
In total they sold 8.95 MMT of products—64 per cent (by volume) of total
sales—in the domestic market. This has
dropped from last year’s domestic sales of 9.55 MMT and reflects their
considered strategy of exporting diesel during the low-demand monsoon months.
The dip in domestic sales is also because of diminished demand for fuel oil in
the Indian market because of natural gas availability from the KG D-6 block.
International
supply and trade
They exported a record 5.11 MMT of products from the Vadinar refinery.
Once the refinery expands to 18 MMTPA later in this calendar year, exports will
play a key role in their sales mix.
Exploration and
Production
They took significant steps in their exploration and production (EandP)
business this year.
In the Raniganj block they are producing 35,000 standard cubic metres
per day of Coal Bed Methane (CBM) gas.
Sales have commenced through cascades and commercial sales will start
soon.
They have signed contracts for the four blocks awarded in the CBM-IV
round of bidding. They have applied for a
Petroleum Exploration License for these blocks. They have continued
production of crude in small quantities in the Mehsana block and are now
looking to augment the production by developing some of the proven wells in
this block.
Market outlook
India experienced sustained economic growth in FY2010-11 with GDP
growing around 8.5 per cent one of the highest rates among the world’s major
economies. With nominal GDP forecast at US$1.73 trillion, India will make the
transition from a low income to a middle income country as per capita income
passes US$1,200.
Seeing substantial growth opportunities, foreign institutional investors
(FIIs) injected around US$37 billion into the Indian market during the last 12
months. The Government has mandated Rs.2140000.000 Millions for infrastructure
development in 2011-12 a 23.3 per cent increase on the previous year. Exports
grew by 37.6 per cent and imports registered around 21.6 per cent growth from
FY2010-11. Food inflation reduced from 20 per cent to a more modest 12 per cent
by the fiscal year-end.
It is estimated that India’s total primary energy consumption will grow
by 39 per cent in the 20 year period from 1995 to 2015 and increase a further
55 per cent by 2035 (International Energy Outlook, 2010 – US Energy Information
Authority).This sustained growth of incomes, infrastructure, spending and
vehicle ownership positively impacts India’s energy demand growth; which
correlates with their strategy to focus on energy demand growth in India.
Consumption of petroleum products grew by 2.9 per cent in the last year
to an estimated 141.8 MMTPA. Consumption of high speed diesel and motor spirit
showed year-on year growth of 6.7 per cent and 10.7 per cent respectively. The
number of commercial and passenger vehicles is estimated to grow at 18 per cent
and 23 per cent respectively and demand for fuels is expected to remain strong
in the current year. The price de-regulation of motor spirit in the domestic
market has led to prices becoming competitive, with greater earnings potential
for private sector marketers.
Current events in the Middle East and North Africa have a deep impact on
India, which imports around 80 – 85 per cent of its crude oil requirement. That
situation is expected to continue despite significant discoveries of oil and
gas in India in recent years. Subject’s E and P portfolio has 11 of its 17 oil
and gas and coal bed methane blocks located in India. Given the domestic demand
scenario, commercialisation of these assets represents a significant
opportunity for Subject. Once the acquisition of Stanlow refinery in the UK by
Essar Energy plc is completed, it will increase the sales options available for
the export of high value products produced at their Vadinar refinery.
REFINING:
The Vadinar refinery in Gujarat continues to operate well above its
nameplate capacity of 10.5 MMTPA. It processed a record 14.76 million tones of
crude oil (107.3 million barrels) during FY2010-11, 9 per cent higher than the
13.50 million tonnes of crude oil (98.4 million barrels) processed in
FY2009-10. This produced a CP GRM, inclusive of sales tax benefit, of US$6.91
per barrel for FY2010-11 an 87 per cent improvement compared with a CP GRM of
US$3.70 per barrel in FY2009-10.
In June 2010, the refinery received its first supply of the low sulphur,
heavy and high pour Mangala crude through a dedicated heated and insulated
pipeline from Cairn India’s Barmer oil fields in Rajasthan. This is an
important new source of crude as it improves crude oil supply security and
offers the added benefits of lower logistics costs and taxes. The refinery
processed about 1.33 million tonnes of Mangala crude between June 2010 and
March 2011.
Phase 1 expansion of the Vadinar refinery is scheduled to reach
mechanical completion in phases in the second
and third quarters of calendar year 2011. The majority of increased
production from new units will commence in Q4 of calendar year 2011.
Completion of Phase 1 of the refinery expansion will increase production
to 375,000 barrels per stream day
(bpsd) from 300,000 bpsd and significantly increase the refinery complexity
from 6.1 to 11.8. With this, the refinery can increase the proportion of heavy
and ultra-heavy crude it processes, producing a higher proportion of middle and
light distillates. The result will have a positive impact on GRM. While the
construction costs of the Phase I refinery project are within the overall
budget, costs are estimated to increase by approximately 5000.000 million
(US$111.6 million), or 6.4 per cent of the original project cost, mainly due to
an expected delay in commissioning and related interest costs and pre-operative
expenditure.
The Company plans to further increase the capacity of the refinery to 20
MMTPA, or 405,000 bpsd. This will be achieved through optimisation of some
refinery units at an estimated cost of 17000.000 millions (c. US$380 million).
The project is expected to be completed by September 2012.
Favourable crude
mix: The capacity expansion, complexity enhancement and subsequent
optimisation will give the Vadinar refinery the capability to process nearly 90
per cent ultra heavy crudes, which are cheaper than light or heavy crudes.
Favourable product
yield: In terms of product yield, the capacity expansion, complexity
enhancement and subsequent optimisation will give the Vadinar refinery higher
flexibility between light and middle distillates. This will enable the
conversion of the majority of their fuel oil production into higher value
products, including pet coke.
With a crude mix that can accommodate a higher quantity of cheaper,
heavier crudes and a product slate with a larger proportion of high value
products, the Vadinar refinery is set to become India’s second most efficient
refinery in terms of cost per barrel. This will result in a significant boost
in the Gross Refining Margin (GRM).
MARKETING
Subject operates a franchise-based retail model, with 1,381 outlets
across India selling petrol and diesel under the Essar brand. Another 254
outlets are under construction and are in various stages of completion.
In June 2010, the Government of India announced plans to fully
deregulate petrol prices and to gradually deregulate diesel prices as well.
This decision supported their plans to increase their retail fuel outlets to
1,700 by March 2011. However, increasing oil prices have put pressure on the market
price of diesel. This in turn has caused uncertainty regarding the Government’s
plans to deregulate retail prices of diesel. As a result, Subject intends to
slowdown its plans to increase retail outlets beyond 1,700 until there is
further clarity on diesel deregulation.
The Company is increasing non-fuel retailing activities in its current
portfolio of retail outlets to provide an additional source of revenue for its
franchisees. Alliances have been forged with alternative fuel and non-fuel
retailers in segments like auto gas, auto components, lubricants and services.
EOL has also setup points of sale at its outlets for retailers in the food and
beverages, agro products, telecom and banking/finance segments. The Company is
now focusing on introducing Auto LPG and CNG pumps in its outlets through
tie-ups with Aegis Logistics and GAIL India Limited respectively. The Company
is also sourcing auto gas for its outlets from other companies operating in
this space. Two CNG stations have been commissioned in Surat and Ahmedabad, in
association with Sabarmati Gas and Gujarat State Petroleum Corporation.
Sales performance
In FY 2010-11, Subject sold 7.19 MMT of diesel, petrol, LPG and kerosene
to Public Sector Oil Companies. This is slightly lower than the 7.30 MMT of
these products sold in FY 2009-10 to Public Sector Oil Companies, but this
performance is commendable because of the more intense competition from other
private sector refiners in this fiscal.
In total Subject sold 8.95 MMT of products - 64 per cent (by volume) or
68 per cent (by value) in the domestic market. This has dropped from last
year’s domestic sales of 9.55 MMT and reflects the Company’s considered
strategy of exporting diesel during the low-demand monsoon months. The dip in
domestic sales is also because of diminished demand for fuel oil in the Indian
market because of natural gas availability from the KG D-6 block.
Export outlook
The Company exported a record 5.11 MMT of products from the Vadinar
refinery this fiscal. Once the refinery expands to 18 MMTPA later in 2011,
exports will play a key role in Subject’s sales mix.
FINANCIAL
HIGHLIGHTS
·
The Company’s revenues increased by Rs.107170.000
millions representing a 25 per cent growth year on year, from Rs. 424020.000
millions in FY2009-10 to Rs.531190.000 millions in FY2010–11, primarily driven
by record refinery throughput and increased product prices Profit after tax increased by Rs.6250.000
millions representing a 23 fold growth from Rs.290.000 millions FY2009–10 to
Rs.6540.000 millions in FY2010-11
·
The above improvements resulted in earnings per
share for FY2010–11 improve to Rs.4.85 per share as a result of increased
profits against Rs.0.25 per share for FY2009-10
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED ON JUNE
30, 2012
(Rs. In Millions)
|
Sr. No. |
Particulars |
Quarter ended on |
Year ended on |
||
|
30-06-2012 |
31-03-2012 |
30-06-2011 |
31-03-2012 |
||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
||
|
1 |
Income from
operations |
|
|
|
|
|
|
a) Net sales / income from operations (Net of excise duty) |
199930.000 |
175140.000 |
149460.000 |
582480.000 |
|
|
b) Other operating income |
300.000 |
290.000 |
180.000 |
880.000 |
|
|
Total income
from operation (net) |
200230.000 |
175430.000 |
149640.000 |
583360.000 |
|
2 |
Expenses |
|
|
|
|
|
|
a) Cost of crude and natural gas consumed |
187810.000 |
172240.000 |
138220.000 |
528950.000 |
|
|
b) Purchase of traded goods |
1250.000 |
870.000 |
960.000 |
19570.000 |
|
|
c) (Increase) / Decrease in stock of finished goods and
work-in-progress |
90.000 |
(7320.000) |
(3560.000) |
(9880.000) |
|
|
d) Consumption of fuel |
2880.000 |
2210.000 |
1270.000 |
4440.000 |
|
|
e) Employee benefits expenses |
450.000 |
310.000 |
300.000 |
1340.000 |
|
|
f) Selling and marketing expenses |
113 |
990.000 |
1010.000 |
4000.000 |
|
|
g) Depreciation / Amortisation |
3180.000 |
2090.000 |
1810.000 |
7620.000 |
|
|
h) Foreign exchange loss / (gain) |
7700.000 |
(950.000) |
620.000 |
6260.000 |
|
|
i) Other expenses |
3020.000 |
3280.000 |
2760.000 |
11920.000 |
|
|
Total expenses |
207510.000 |
173720.000 |
143390.000 |
574220.000 |
|
3 |
Profit from
operations before other income, finance cost and exceptional items (1-2) |
(7280.000) |
1710.000 |
6250.000 |
9140.000 |
|
4 |
Other income |
940.000 |
640.000 |
1070.000 |
4300.000 |
|
5 |
Profit from
ordinary activities before finance cost and exceptional items (3+4) |
(6340.000) |
2350.000 |
7320.000 |
13440.000 |
|
6 |
Finance cost |
7660.000 |
4550.000 |
2840.000 |
14110.000 |
|
7 |
Profit / (Loss)
from ordinary activities after finance cost but before exceptional items
(5-6) |
(14000.000) |
(2200.000) |
4480.000 |
(670.000) |
|
8 |
Exceptional items |
- |
2950.000 |
- |
43100.000 |
|
9 |
Profit / (Loss)
from ordinary activities before tax (7-8) |
(14000.000) |
(5150.000) |
4480.000 |
(43770.000) |
|
10 |
Tax expense |
- |
- |
(210.000) |
(1780.000) |
|
11 |
Net profit /
(Loss) from ordinary activities after tax (9-10) |
(14000.000) |
(5150.000) |
4690.000 |
(41990.000) |
|
12 |
Paid up equity share capital (Face value : Rs.10/- per share) |
13660.000 |
13660.000 |
13660.000 |
13660.000 |
|
13 |
Reserves excluding revaluation reserves as per Balance Sheet of
previous accounting year |
|
|
|
8910.000 |
|
14 |
Earnings per
share before and after extraordinary items (in |
|
|
|
|
|
|
-Basic (Not Annualised)* |
(10.25) |
(3.77) |
3.43* |
(30.75) |
|
|
- Diluted (Not Annualised)* |
(10.25) |
(3.771 |
3.22* |
(30.75) |
|
(A) |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
|
15 |
Public shareholding: |
|
|
|
|
|
|
Number of shares |
137,123,373 |
137,123,373 |
137,123,373 |
137,123,373 |
|
|
Percentage of shareholding |
10.04% |
10.04% |
10.04% |
10.04% |
|
16 |
Promoters and promoter group shareholding |
|
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
|
- Number of shares |
452,527,407 |
452,527,407 |
444,661,495 |
452,527,407 |
|
|
- Percentage of shares (as a % of the total shareholding of promoters and
promoter group) |
36.83% |
36.83% |
36.19% |
36.83% |
|
|
- Percentage of shares (as a % of the total share capital of the
company) |
33.14% |
33.14% |
32.56% |
33.14% |
|
|
b) Non-encumbered |
|
|
|
|
|
|
- Number of shares |
776,016,306 |
776,016,306 |
783,882,218 |
776,016,306 |
|
|
- Percentage of shares (as a % of the total shareholding of promoters
and promoter group) |
63.17% |
63.17% |
63.81% |
63.17% |
|
|
- Percentage of shares (as a % of the total share capital of the
company) |
56.82% |
56.82% |
57.40% |
56.82% |
|
|
Particulars |
Quarter ended on 30-06-2012 |
|
(B) |
INVESTOR
COMPLAINTS |
|
|
|
Pending at the beginning of the Quarter |
Nil |
|
|
Received during the Quarter |
324 |
|
|
Disposed of during the Quarter |
324 |
|
|
Remaining unresolved at the end of the Quarter |
Nil |
SEGMENT
WISE REVENUE, RESULTS AND CAPITAL EMPLOYED:
(Rs.
In Millions)
|
Sr. No. |
Particulars |
Quarter ended on |
Year ended on |
||
|
30-06-2012 |
31-03-2012 |
30-06-2011 |
31-03-2012 |
||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
||
|
1 |
Segment Revenue |
|
|
|
|
|
|
Refining including expansion and marketing |
200200.000 |
175370.000 |
149650.000 |
583330.000 |
|
|
Exploration and production activities |
40.000 |
40.000 |
10.000 |
130.000 |
|
|
Unallocated |
10.000 |
40.000 |
0.000 |
40.000 |
|
|
Total |
200250.000 |
175450.000 |
149660.000 |
583500.000 |
|
|
Less : Inter-segment revenue |
- |
- |
- |
- |
|
|
Net Sales /
Income from operations |
200250.000 |
175450.000 |
149660.000 |
583500.000 |
|
2 |
Segment Results
Profit / (Loss) before interest and tax |
|
|
|
|
|
|
Refining including expansion and marketing |
(8940.000) |
770.000 |
6230.000 |
(32130.000) |
|
|
Exploration and production activities |
(10.000) |
(10.000) |
(20.000) |
(60.000) |
|
|
Unallocated |
(550.000) |
(570.000) |
(560.000) |
(2100.000) |
|
|
Total |
(9500.000) |
190.000 |
5650.000 |
(34290.000) |
|
|
Less: Interest expenses (Including Rs.3220.000 Millions considered as
exceptional item for Quarter / Year ended March 2012) |
5420.000 |
5960.000 |
2220.000 |
13640.000 |
|
|
Add : Interest income |
910.000 |
610.000 |
1020.000 |
3810.000 |
|
|
Add : Profit on sale of Investments |
10.000 |
10.000 |
30.000 |
60.000 |
|
|
Add : Reversal of old liabilities / excess accrual / Credit balances
writtern back |
0.000 |
0.000 |
- |
290.000 |
|
|
Total Profit /
(Loss) before Income tax |
(14000.000) |
(5150.000) |
4480.000 |
(43770.000) |
|
3 |
Capital employed
(Segment assets - Segment liabilities) |
|
|
|
|
|
|
Refining including expansion and marketing |
225460.000 |
|
195980.000 |
181470.000 |
|
|
Exploration and production activities |
12870.000 |
|
9400.000 |
12200.000 |
|
|
Unallocated |
2680.000 |
|
10950.000 |
8620.000 |
|
|
Total Capital
employed |
241010.000 |
|
216330.000 |
202290.000 |
"0" represents amount less than Rs.10.000 Millions
★ Includes Rs.35750.000 Millions kept in liquid assets for remittance
against crude purchase liability
NOTES :-
1.
During the quarter, the Company completed its
optimisation project, four months ahead of schedule. This has resulted in
enhancement of the Vadinar Refinery capacity from 18 MMTPA to 20 MMTPA.
2.
The Company has since received approval for exiting
from CDR. Pending execution of revised agreements, the Company has provided
Rs.500.000 Millions as part of finance cost, being the additional impact on
account of CDR exit.
3.
Regarding the Sales tax liability of Rs.6,1690.000
Millions recognized in the audited financial results for the year ended March
31, 2012, the Company had approached the Hon'ble High Court of Gujarat for
payment of the same in installments and for remission of interest. Since the
Company did not get a favorable order, the Company filed a Special Leave
Petition before the Hon'ble Supreme Court of India and as directed by the
Hon'ble Court, has already remitted Rs.10000.000 Millions to the Gujarat Sales
tax department on July 26, 2012. The matter would now be finally decided by the
Supreme Court of India and pending their decision, the company has not provided
any interest on the sales tax liability amounting Rs.23020.000 Millions till
June 30, 2012 Rs.20260.000 Millions till March 31, 2012 non provision of which
had resulted in a modified opinion from the auditors of the company).
With the completion of Expansion of refinery
by March 2012 and the Optimization project in June 2012 coupled with
improvement in the complexity from 6.1 to 11.8, the performance of the company
is expected to improve substantially in the near future. The Company has, in
the meanwhile, tied up a new credit facility to provide a credit line up to
Rs.50000.000 Millions to meet its sales tax liability.
4.
Exceptional items during quarter and year ended
March 31, 2012 include:
Rs.3480.000 Millions being the impact of CDR
Exit proposal,
Rs.nil and Rs.42270.000 Millions provision
during the quarter and the year ended March 31, 2012 respectively on account of
reversal of sales tax defeasement income pursuant to order of Hon'ble Supreme
Court of India dated January 17, 2012).
Rs.530.000 Millions and Rs.2650.000 Millions
respectively for the quarter and the year ended March 31, 2012 being income
accrued on the amounts defeased to a related third party.
5.
Previous period's figures have been regrouped /
rearranged, wherever considered necessary. Figures of the quarter ended March
31, 2012 are the respective balancing figures between the audited figures for
the year ended March 31, 2012 and the corresponding published year to date
figures up to third quarter ended December 31, 2011.
6.
The above results has been reviewed by the Audit
and Governance Committee in its meeting held on August 13, 2012 and approved by
the Board of Directors in its meeting held on August 14, 2012 at Mumbai.
FIXED ASSETS:
· Land
· Building
· Plant and machinery
· Producing properties
· Furniture and fixtures
· Office equipment
· Vehicles
· Aircraft
· Softwares and licenses
AS PER WEBSITE
DETAILS:
PRESS RELEASE:
SC ALLOWS ESSAR OIL
TO PAY GUJ TAX IN 8 TRANCHES
Friday, September 14,
2012, 9:36 IST
The Supreme Court on Thursday allowed Essar Oil to pay its pending sales tax to the Gujarat government in eight quarterly instalments, starting from January 2013.
This has come as a major breather for the company as the sales tax case had been weighing heavy on the company’s balance sheet since the start of the current year.
The apex court also cut the interest amount to 10% per annum from the 18% per annum as demanded by the state government, effectively disallowing the state to charge an interest of Rs18000.000 Millions from the company.
On January 17, 2012, the SC had set aside a judgement by the Gujarat High Court, which had allowed the company to avail sales tax deferment benefit under the capital investment incentive to Premier/Prestigious Unit Scheme, 1995-2000. The SC had directed the company to cough up Rs.63090.000 Millions as pending dues.
Under this benefit scheme, Essar Oil, which was building a 9 million tonne refinery at Vadinar, was eligible for a tax deferment incentive of up to Rs.91000.000 Millions for 17 years if it was able to start commercial production from the unit within a stipulated time.
Essar Oil had to complete the refinery by April 2003, but failed to do so due to a cyclone that hit the refinery site in 1998 and later due to a pending case filed by an NGO against part of the construction, claim company sources. After the issues were resolved, Essar Oil restarted construction in 2004 and completed the refinery in November 2006. But the state refused to consider it under the eligible parties for sales tax deferment.
GUJARAT GOVT FREEZES
ESSAR OIL’S THREE BANK ACCOUNTS
Gandhinagar,
Ahmedabad, Tue July 10 2012, 01:38 hrs
In a move to recover pending sales tax dues of over Rs.80000.000 Millions from Essar Oil Limited, the Gujarat government on Monday attached three bank accounts of the company.
“We have attached three bank accounts belonging to the company in Khambhalia town of Jamnagar district. We are currently assessing the funds present in these accounts,” Hari Patel, the state’s commercial tax commissioner said.
Essar Oil that operates the Vadinar refinery in Jamnagar district of Gujarat said it was “surprise and disappointment” over the “unexpected” move.
“As a statement of its bonafide intent, Essar Oil has already agreed to pay Rs.10000.000 Millions within 30 days to the Gujarat government towards the sales tax liability,” stated a statement from the company.
On June 25, a division bench of the Gujarat High Court had rejected the plea of Essar Oil asking for relief in repayment of Rs.84140.000 Millions due as sales tax deferment liability.
The court directed the state to expedite the recovery. The company had requested the court to be allowed to pay the tax dues of Rs.64140.000 Millions in eight yearly instalments and grant exemption from paying penalty and interest of Rs.20000.000 Millions.
The company said that it was not being treated at par with other refiners.
“Every refinery in the country has received major fiscal incentives from respective state governments but in Essar Oil’s case the state of Gujarat has denied these benefits despite being aware of the on-ground situation. However in other cases where investments amounts have been much smaller, the state continues to grant similar benefits,” the company said.
OIL REFINERY
Essar Oil spent 240 billion rupees to build an
annual 20 million ton refinery at Vadinar in Gujarat, it said in a statement on
June 5. The project was set up at a capital cost of $12,746 a barrel, half the
global average, it said.
Essar Energy last year bought Royal Dutch
Shell Plc’s Stanlow refinery and other associated assets for $350 million in
cash and paid an additional $916 million for the oil stockpile.
The power unit of Essar Energy will raise
capacity to 6,700 megawatts by the end of the next fiscal year from an estimated
4,800 megawatts, the company said last month.
The majority of the equity investments for the
capital expenditure were made without accessing the markets, Ruia said.
Essar raised 1.27 billion pounds ($2 billion)
from an initial public offering of Essar Energy in May 2010.
The group, which last year sold its 33 percent
stake in Vodafone Essar for $5.46 billion, plans to exit telecommunications,
Ruia said, without giving details. The company operates a mobile-phone service
in Kenya, where it has 2.3 million subscribers and runs a chain of 1,000 stores
selling phones in India.
ESSAR SEES $35 BILLION SALES ON SINGH'S PLEDGE: CORPORATE INDIA
Essar Group, owned by billionaire brothers Shashi and Ravi Ruia, is targeting
$35 billion in revenue in three years as it taps demand for infrastructure in
Asia’s third-largest economy
June 13, 2012
Essar Group, owned by billionaire brothers
Shashi and Ravi Ruia, is targeting $35 billion in revenue in three years as it
taps demand for infrastructure in Asia’s third-largest economy.
Sales may rise 30 percent by 2015 from $27
billion in the year ended March 31, Chief Executive Officer Prashant Ruia said
in an interview in Mumbai. The group also plans to exit the telecommunications
business and sell stakes in a U.S. steel unit and a business process
outsourcing company, he said. Essar Group’s plans depend on Prime Minister
Manmohan Singh’s ability to revive construction of roads, ports and power
plants needed to spur an economy expanding at the slowest pace in almost a
decade. Increased spending in infrastructure may enable Essar, which invested
$18 billion in adding capacity since 2008, to widen profit margins, Ruia said.
“Over the next two to three years, we are
focusing on sweating the assets which will result in a significant volume and
margin growth,” Ruia, 43, said in his Mumbai headquarters.
“With no major capital expenditure planned,
these companies will have significant free cash flows to redeploy.”
Essar’s investments have come at a cost lower
than the industry average, leaving the group with less debt than competitors
with similar expansion plans, Ruia said. The total debt at Essar Energy Plc,
Essar Oil Limited and Essar Steel Limited stood at $13 billion, according to
data compiled by Bloomberg.
‘Strong Earnings’
Rival Reliance Industries Limited, owner of
the world’s largest oil-refining complex, plans to invest 1 trillion rupees
($18 billion) in India in the next five years to double operating profit,
Chairman Mukesh Ambani said June 7 at a shareholder meeting in Mumbai.
India’s gross domestic product rose 5.3
percent last quarter from a year earlier, compared with India’s aim of 9
percent annual expansion and $1 trillion infrastructure spending from 2012 to 2017.
Slow implementation of policy measures
prompted Standard and Poor’s to cut India’s credit outlook to negative from
stable in April. This week the rating company said India may become the first
BRIC nation to lose its investment-grade credit rating.
“India has the potential to absorb a trillion
dollar investment in infrastructure and this is not an impossible task provided
the government takes proactive measures,” said U.R. Bhat, managing director at
Dalton Capital Advisors India.
“While such huge investments will help big
business houses, the trickle-down effect is going to benefit many more.”
Stake Sales
Essar Group is in talks to sell a stake in
outsourcing company Aegis Limited, Ruia said on June 11, without giving details.
The group, which bought Minnesota Steel Industries LLC for an undisclosed
price, is in talks with banks for an initial public offering for the U.S. steel
unit, he said.
Essar Oil, India’s second-largest non-state
refiner, plans to sell shares and borrow from banks to raise about $1.4 billion
to refinance loans and pay pending taxes on fuel sales, Chief Executive Officer
Lalit Kumar Gupta said April 17.
The shares of Essar Oil, which posted a record
loss in the three months ended Dec. 31, rose 0.8 percent to 53.35 rupees at the
close in Mumbai. The shares have climbed 6 percent this year, lagging behind a
9 percent gain in the benchmark Sensitive Index. London-listed parent Essar
Energy Plc has declined 34 percent.
Earnings before interest, tax and depreciation
and amortization at Essar Oil may double to 46.85 billion rupees in the year
ending March 31, Goldman Sachs Group Inc. analysts Vikas S. Jain, Nilesh
Banerjee and Siddharth Banerjee said in a May 4 report. The investment bank,
which rates the stock a “buy,” expects operating cash flows to triple to about
$1.2 billion by the end of the next fiscal year.
ESSAR OIL’S 3 ACCOUNTS FROZEN IN RS.80000.000 MILLIONS CASE
Ahmedabad , July 10, 2012
The Gujarat government froze three bank
accounts of Essar Oil Limited of the Rs.1.5-lakh-Millions Essar Group on
Monday, taking the first step to recover Rs. 84140.000 Millions sales tax dues.
The action comes two weeks after the Gujarat high court rejected a petition by
Essar Oil to be allowed to pay
Rs.61690.000 Millions in eight yearly
instalments.
The company, however, said in a press release:
“Essar Oil has already agreed to pay Rs.10000.000 Millions within 30 days to
the Gujarat government towards the sales tax liability.”
The company also wrote to the state, asking
for a committee to jointly discuss the modalities of paying the balance
principal amount and consider waiver of interest payments.
The high court had rejected the company’s
appeal for waiver of penalty and interest payments. In January, the Supreme
Court rejected the company’s plea for sales tax deferment benefits under a
special state government programme to attract investments.
The company lost the eligibility for tax
deferment incentive as it failed to begin operations at its Vadinar oil
refinery by April 2003. Although the project went on stream in 2006, the
company utilised the benefits, which the state government now wants it to
repay.
ESSAR OIL LIMITED: RESULTS FOR THE QUARTER ENDED JUNE 30, 2012
AUGUST 14, 2012
Essar Oil Limited,
the India-focused integrated energy company, part of UK listed Essar Energy
Plc, today released its results for the quarter ended June 30th, 2012
Key Highlights
·
All new units of refinery expansion and
optimisation stabilised and refinery now operating at over 20 mmtpa capacity.
·
Benefit of higher complexity begins to get
reflected. Current price GRM $5.12/bbl over IEA Singapore margins during Q1FY13
against $2.5/bbl over the same benchmark margin in Q1FY12. Full margin benefit
of approx. $7-8 /bbl over IEA will start getting reflected from next quarter
onwards.
·
Highest ever quarterly revenue in Q1FY13, up 34% to
Rs 221090.000 Millions as compared to Rs 164780.000 Millions in Q1 FY12.
·
Steep fall in crude oil prices coupled with sharp
depreciation in rupee has severely impacted the financial results of Indian
refining companies. Q1FY13 PAT at negative Rs 14000.000 Millions compared to Rs
730.000 Millions (net of Rs 3750.000 Millions of sales tax benefit) in Q1FY12.
With upward movement of crude oil price and stabilisation of rupee at Rs 56
levels against the US dollar, coupled with higher margins coming out of
enhanced refinery complexity and stabilisation of ramped up capacity, the
results are expected to witness significant upward movement from next quarter.
·
Vadinar Refinery received “Refinery of the Year”
Award from Petroleum Federation of India.
Essar Oil Limited
(EOL) today reported its highest very gross quarterly revenues at Rs 221090.000
Millions for Q1FY13, compared to Rs 164780.000 Millions in Q1FY12, up 34%,
mainly due to higher product price realization on account of increased domestic
sales and rupee depreciation.
The Current Price
Gross Refinery Margin (see Appendix for explanation of CP GRM) in Q1
FY13 was US$
4.69 per barrel, compared to US$ 4.20 per barrel in Q1 FY12. Essar Oil reported
upswing in CP GRM in spite of benchmark IEA margin contracting by US$ 1.8/bbl
during the same period, indicating improvement of margin post completion of
refinery expansion project. Essar Oil’s GRM for the April-June 2012 quarter was
$5.12/bbl better than the benchmark IEA margin, against $2.5/bbl higher in the
same quarter last year.
EBIDTA has
declined to (Rs 3160.000 Millions) as compared to Rs. 9130.000 Millions for
Q1FY12, due to sharp decline in crude prices and depreciation of rupee against
US dollar during the quarter ended June, 2012 and sales tax incentive of Rs
3750.000 Millions included in EBIDTA for Q1 FY12.
For the quarter,
the profit before and after tax declined due to lower EBITDA and high interest
cost and depreciation post capitalization of expansion and optimization
projection. Due to this, the company has reported negative PAT for Q1FY13 at
Rs. (14000.000 Millions) against PAT of Rs. 4690.000 Millions in Q1FY12
including sales tax incentive income.
Vadinar Refinery’s
Phase I optimisation project, was completed on 5 June, 2012, four months ahead
of its planned completion. Post completion of this project, the refinery has
achieved total refining capacity of 405,000bbl/day (20 MMTPA) at a complexity
of 11.8.
Full benefit of
higher complexity, stabilizing of units, and captive coal fired power plant
will be felt from next quarter onwards. Essar Oil’s GRMs are expected to be
$7-8 higher than the benchmark IEA margins from current quarter onwards.
Higher complexity
has already resulted in the share of heavy and ultra heavy crude going up to
89% in Q1FY13 against 66% in Q1FY12. Similarly, valuable light and middle
distillates’ share in the overall crude slate in Q1FY13 is 83%, against 73% in
Q1FY12.
LK Gupta, EOL’s
Managing Director and CEO said: “With the completion of our optimization project
during the quarter, we have significantly moved up in the refining value chain
and our world class assets have begun delivering value to our stakeholders.
Benefits of higher capacity and complexity have already begun reflecting in our
results. We are very happy to report highest ever quarterly revenues at Rs
221090.000 Millions, and significant improvement of GRMs over the benchmark
margins. Going forward, we are confident of maintaining the momentum of
improved GRMs, given the full benefit of our expansion will accrue from current
quarter onwards.”
Suresh Jain, CFO,
Essar Oil said, “Significant drop is crude oil prices, coupled with rupee depreciation
has impacted the whole industry. In addition, due to ramp up in capacity, we
had higher interest and depreciation cost post capitalization, which will be
offset in the coming quarters with improved margins
Quarterly
Financial Performance: Key Indicators
(Rs. In Millions)
|
Particulars |
Q1 FY12 |
Q1 FY13 |
Q1 FY14 |
|
Revenue (Gross) |
164780.000 |
221090.000 |
191600.000 |
|
EBITDA |
9130.000 |
(3160.000) |
4440.000 |
|
Profit Before
Tax |
4480.000 |
(14000.000) |
(2200.000) |
|
Profit After Tax |
4690.000 |
(14000.000) |
(5150.000) |
Operational
Highlights
Refinery Business:
Throughput
During the quarter
ended June, 2012, the Vadinar refinery achieved a throughput of 4.48 million
metric tonnes (mmt) compared with 3.62 mmt in same period last year, a 24%
increase. The increase in throughput was primarily due to the completion of the
refinery expansion project at the end of quarter ending March, 2012. The
operation of all expansion units were stabilized during the quarter and by the
end of the period the refinery achieved the full design capacity of 20 mmtpa.
Refinery Business:
Crude Mix and Product Mix
During the quarter
to June 2012, the crude mix improved to 89% heavy and ultra-heavy crudes
compared to 66% heavy and ultra-heavy crudes in the same period last year.
Despite the increase in heavy and ultra-heavy crudes in its crude mix, the
Vadinar refinery improved the production of higher margin middle and light
distillates, which comprised 83% of the total product mix in the June 2012
quarter against 73% in the June 2011 quarter.
Refinery Business:
Sales Mix
Domestic sales
increased to 80% of total sales compared to 68% for same period of previous
year, mainly due to heavy demand of gasoil, which has replaced gasoline, fuel
oil and even CNG, due to retail price of same being regulated by Government.
Export sales from Vadinar Refinery decreased to 20% of the total against 32% in
the same quarter last year. Export sales mainly comprise Gasoline, Fuel Oil and
VGO.
Safety track
record and recognition
As on 30th June,
2012, the Vadinar refinery has recorded 1551 days of operations without a Lost
Time Injury (LTI), 1136 major fire free days, and 12.53 million hours of safe
operations. This goes to show that the refinery personnel have consistently
delivered a high production rate without making any compromises on safety
standards. Vadinar refinery has won “Refinery of the Year” Award from Petroleum
Federation of India.
Refinery Expansion
Project set to deliver Significant Value:
Vadinar Refinery
is second largest single site refinery in India and amongst the most complex
globally for a refinery of this scale. The refinery has been built with one of
the lowest capital cost of $12,746 per barrel, against world average of $23,000
per barrel. Vadinar refinery will benefit from fully integrated infrastructure
developed including power plant, port, pipeline, and tankages with multi
product multi modal despatch facilities. Capacity addition, complexity impact,
and coal fired power plant to collectively add significant uplift to EBITDA in
the coming years.
CDR exit to lead
to greater operational and financial flexibility
Lenders approved
the CDR exit proposal of the Company in CDR core group meeting held on 29th
June, 2012. Under the proposal, the Corporate Debt Restructuring (CDR) loan
facility set up in December 2004 which facilitated the construction of its
refinery in Gujarat will be replaced with a new Rs 94000.000 Millions debt
facility with similar group of lenders. The exit will assist in the company
enjoying greater operational and financial flexibility.
Company seeks SC’s
direction on sales tax repayments;
Pursuant to the
unfavourable verdict from Hon’ble High Court of Gujarat on writ petition filed
by the Company on 25 June 2012, the Company filed a Special Leave Petition
(‘SLP’) before the Hon’ble Supreme Court of India on 10 July 2012 for payment
of the sales tax liability in instalments and remission of interest. Hon’ble
Supreme Court on 17 July 2012 directed the Company to pay Rs. 10000.000
Millions towards the Sales Tax dues to the State of Gujarat by 31th July 2012,
which it has already complied with. The next court hearing is scheduled for 23
August 2012. The Company has tied up a loan of Rs 50000.000 Millions with
Indian lenders to take care of any amount immediately payable to state
government under sales tax matter.
Exploration and
Production
Essar Oil has the
largest acreage of coal bed methane blocks in India, with approximately 10
trillion cubic feet (unrisked) of gas resources across five blocks spread
across 2,733 sq km of acreage (see table below). It has a presence in key
markets that are deficient in natural gas supplies.
|
CBM Block: |
Place |
Certified |
Acreage (km:) |
2P/2C resources
(bcf) |
Prospective
Resources (bcf) |
In place Unrisked
Resource (bcf) |
|
Raniganj |
West Bengal |
NSAI,Janl2 |
500 |
55 5 |
297 |
|
|
Rajmahal |
Jharkhand |
CPRr
ARI |
1123 |
|
4,723 |
|
|
Sohagpur |
M.P.
and Chhattisgarh |
DGH |
339 |
|
|
600 |
|
Talcher |
Qrissa |
DGH |
557 |
|
|
2,600 |
|
IB Valley |
Qnssa |
DGH |
209 |
|
|
1,200 |
|
Total |
2733 |
558 |
5,020 |
4,400 |
||
Current production
at the Raniganj CBM block is around 25,000 standard cubic metres of gas per day
(scm/d) from 15-20 wells, reduced to minimise flaring, while test sales through
a pipeline to the Durgapur industrial estate are continuing. Subject to all clearances
being received, we expect to achieve the plateau production of c.3 million
scm/day in the second half of 2013. A provisional gas price for test sales of
US$5.25/mmbtu plus US$1.00/mmbtu for transportation charges has been approved
by the Government of India for incidental gas produced during phase II. The
Grant Order for the Mining Lease (from the State Government of West Bengal),
allowing commercial sales to proceed, was secured on 29th June 2012. The
Government of India is now in the process of making a decision on the full
commercial sales price for Raniganj and other CBM developers in India.
To date, Essar Oil
has drilled 73 wells and has received approval to drill four support wells from
the existing wells approved under phase II area i.e. 232 wells additional wells
can be drilled. In addition to the ten rigs already operating at site, 20 more
are being planned to be deployed to achieve fast track development of the
block. Environmental approval for the Full Field Development, of up to 500 wells
is progressing well. The full field development plan has already been approved
by the Director General of Hydrocarbons (DGH).
GOVERNMENT ATTACHES FIVE BANK ACCOUNTS OF
ESSAR OIL IN SALES TAX DEFERRAL CASE
JULY 10, 2012
Gujarat government's
sales tax department on Monday attached five bank accounts of Essar Oil Ltd
(EOL) in Jamnagar district and recovered about Rs 40.000 millions as a part of pending sales tax recovery of
close to Rs 88000.000 millions
"They have
attached a total of five bank accounts of Essar Oil Limited and recovered about
Rs 40.000 millions from these
accounts. The action was taken on Monday as a part of the pending recovery of
88000.000 millions from the company
on the sales tax deferral case," said a senior official at office of assistant
commissioner of sales tax at Jam Khambhaliya in Jamnagar district. "Since
2008, the company has already availed the benefits under the state government's
scheme, but has not produced the certificate to have obtained the deferral on
sales tax. This has prompted us to attache the bank accounts of the
company," the official explained.
RELATED STORIES
· Essar Oil secures Rs 50000.000 millions credit from 12 banks
· Essar Oil borrows Rs 50000.000 millions to meet sales tax dues
· Essar Oil set to invest another Rs 20000.000 millions in Ranigunj block
· Sales tax officials attach 5 bank accounts of Essar Oil
· Essar Oil dips on rejection of sales tax recovery plea
Of the sealed accounts, two accounts are held with each HDFC bank and State Bank of India (SBI), while one account is with ICICI bank, the official sources revealed. Two accounts were located in Jamnagar city, while one each was located at Vadinar, Moti khavdi and khavdi area near the refinery of the company.
"Essar Oil is surprised and disappointed by the Gujarat government's unexpected step of attaching the bank accounts of Essar Oil despite the company clearly stating its intent to pay the sales tax due to the state. As a statement of its bonafide intent, Essar Oil has already agreed to pay Rs 10000.000 millions within 30 days to the Gujarat government towards the sales tax liability. Essar Oil has written to the state government requesting that a committee be formed which can jointly discuss the modalities of the payment of the balance principal amount of Rs 51690.000 millions and consider a remission of the past interest of Rs 19320.000 millions" the company said in an official statement.
"Essar Oil is clearly the aggrieved party on this matter despite making investments of over Rs 250000.000 millions in the refinery and a total of Rs 1000000.000 millions of investments in the set up in the state of Gujarat," the company further added.
It may be mentioned here that the Gujarat High Court on June 25 had directed the state government to expedite recovery of the over Rs 80000.000 millions due as sales tax deferral liability from the company.
"Considering the totality of the facts and circumstances, this is not the case where they would like to restrain the state from recovering the amount on the ground that the company and appealed to the state government to consider relief under section 41 and 42 of the Gujarat Value Added Tax Act (GVATA)," the court had observed. In May, the company had also sought exemption from payment of interest and also sought directions for the state government to allow them to make repayment in form of eight annual instalments from April 2013 under the section 41 and 42 of GVATA respectively. It had also challenged the order of the state government rejecting similar reliefs. Later on in June, the company altered its petition and offered that it was ready to pay in six installments starting from this fiscal.
Following Supreme Court's decision early this year, the tax authorities of Gujarat Government had slapped a demand notice to Essar Oil for repayment of sales tax deferment benefits utilised by the company to the tune of Rs 63000.000 millions with payable interest. Under the state government's scheme, 'Capital Incentive to Premier and Prestigious Unit Scheme 1995-2000', Essar was given a provisional 'premier' registration for setting up an integrated greenfield refinery at Vadinar near Jamnagar with an investment of over Rs 55000.000 millions
The planned capacity of the refinery was put at 9 million tonnes of crude processing per annum. As per the terms of said scheme, the state government said that the sales tax which actually accrues to the companies investing under this scheme for nearly 17 years can be paid after 17 years in six equal installments.
This would mean, that the company could retain the sales tax for 17 years and can use the same as cash flow. And then it has to pay back without any interest after 17 years.
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 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 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.53.78 |
|
|
1 |
Rs.86.77 |
|
Euro |
1 |
Rs.69.71 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
51 |
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.