MIRA INFORM REPORT

 

 

Report Date :

08.11.2012

 

IDENTIFICATION DETAILS

 

Name :

HINDUSTAN PETROLEUM CORPORATION LIMITED

 

 

Registered Office :

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

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

05.07.1952

 

 

Com. Reg. No.:

11-008858

 

 

Capital Investment / Paid-up Capital :

Rs. 3390.100 millions

 

 

CIN No.:

[Company Identification No.]

L23201MH1952GOI008858

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUM07045D

 

 

PAN No.:

[Permanent Account No.]

AAACH11118B

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Refining and Marketing of Petroleum Products.

 

 

No. of Employees :

11248 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (78)

 

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

 

Maximum Credit Limit :

USD 524900000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a fortune 500 company owned by the government of India. It is a well established and a reputed company.

 

There appear slight fall in the profitability. However, financially company appears strong. Trade relations are reported to be fair. Business is active. Payment are reported to be regular and as per commitment.

 

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

 

 

NOTES :

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

 

 

ECGC Country Risk Classification List – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

FITCH

Rating

AAA (Long term rating)

Rating Explanation

Lowest expectation of default risk. They are assigned only in case of exceptionally strong capacity for payment of financial commitment

Date

30.04.2012

 

 

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/ Head Office/ Factory :

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

Tel. No.:

91-22-22026151/ 22863900

Fax No.:

91-22-22872992/ 22841573/ 22872992

E-Mail :

corphqo@hpcl.co.in

nrnarayanan@hpcl.co.in

shrikantb@hpcl.co.in

Website :

http://www.hindpetro.com

http://www.hindustanpetroleum.com

 

 

Marketing Office :

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

Tel. No.:

91-22-22618031

Fax No.:

91-22-22611822

 

 

Aviation Office :

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

 

 

Refinery :

Mumbai Refinery

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

 

Visakh Refinery

Post Box No. 15, Siripuram Opposite A U Outgate,  Vishakhapatnam – 530 001, Andhra Pradesh, India

 

 

Zonal Offices :

East Zone

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

 

North Zone

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

 

North Central Retail Zone

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

 

North West Retail Zone

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

 

South Zone

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

 

South Central Retail Zone

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

 

West Zone

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

 

 

DIRECTORS

 

As on 31.03.2012

 

Whole Time Directors :

 

 

Name :

Mr. S. Roy Choudhury

Designation :

Chairman and Managing Director (From 01.08.2010)

 

 

Name :

Dr. V. Vizia Saradhi

Designation :

Director-Human Resources (Till 31.07.2012)

Date of Birth/Age :

19.07.1952

Qualification :

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

Date of Appointment :

03.08.2007

 

Name :

Mr. B. Mukherjee

Designation :

Director – Finance

 

 

Name :

Mr. K. Murali

Designation :

Director – Refineries

Date of Birth/Age :

02.06.1953

Qualification :

B. Tech (Chemical Engineering)

Date of Appointment :

02.02.2009

 

 

Name :

Mrs. Nishi Vasudeva

Designation :

Director – Marketing, (From 04.07.2011)

Date of Birth/Age :

30.03.1956

Qualification :

B.A., PGDBM (IIM Kolkata)

Other Directorship : 

SA LPG Company Private Limited

 

 

Name :

Mr. Pushp Kumar Joshi

Designation :

Director (Human Resources)

 

 

Ex – Officio Part- Time Directors

 

 

Name :

Dr. S C Khuntia

Designation :

Director

Date of Appointment :

03.08.2012

 

 

Name :

Mr. L N Gupta

Designation :

Director

 

 

Name :

Mr. P. K. Sinha

Designation :

Director (Till 29.02.2012)

 

 

Non Official Part Time Director

 

 

Name :

Dr. Gitesh K Shah

Designation :

Non Official PartTime Director

 

 

Name :

Mr. Anil Razdan

Designation :

Non-Executive Independent Director  (From 10.01.2011)

Date of Birth/Age :

07.12.1948

Qualification :

IAS

 

 

Name :

Mr. S K Roongta

Designation :

Non-Executive Independent Director (From 10.01.2011)

Date of Birth/Age :

09.05.1950

Qualification :

B.E. (Electrical) PGDBM (IIFT)

 

 

Name :

Mr. G K Pilla

Designation :

Non Official PartTime Director (From 09.04.2012)

 

 

Name :

Mr. A C Mahajan

Designation :

Non Official PartTime Director (From 09.04.2012)

 

 

Name :

Mr. G Raghuram

Designation :

Non Official PartTime Director (From 09.04.2012)

 

 

KEY EXECUTIVES

 

Senior Management Team :

 

Name :

Mr. Suneet Mohan Misra

Designation :

Chief Vigilance Officer

 

 

Name :

Mr. S.V. Sahni

Designation :

ED - Central Engineering (Refineries)

 

 

Name :

Mr. D.K. Deshpande

Designation :

ED – SHE Corporate and Refinery Advisor to C and MD

 

 

Name :

Mr. K.S.R Prasad

Designation :

ED – Joint Ventures

 

 

Name :

Mr. A. B. Thosar

Designation :

ED – LPG

 

 

Name :

Mr. R. Sudhakara Rao

Designation :

ED – Internal Audit

 

 

Name :

Mr. S.P. Gupta

Designation :

ED*

 

 

Name :

Mr. O P Pradhan

Designation :

ED – PCPIR Project

 

 

Name :

Mr. P A B Raju

Designation :

ED – Visakh Refinery

 

 

Name :

Mr. K.V. Rao

Designation :

ED – Corporate Finance

 

 

Name :

Mr. M.S. Damle

Designation :

ED – Retail

 

 

Name :

Mr. Y.K. Gawali

Designation :

ED – O and D

 

 

Name :

Mr. B. K. Namdeo

Designation :

ED – IT and S

 

 

Name :

Mr. S.C. Mehta

Designation :

ED – Mumbai Refinery

 

 

Name :

Mr. Rajan K. Pillai

Designation :

ED *

 

 

Name :

Mr. S. Jeyakrishnan

Designation :

ED – Business Development and Corporate Affairs

 

 

Name :

Mr. S.P. Singh

Designation :

ED – Exploration and Production

 

 

Name :

Mr. G. Sriganesh

Designation :

ED – Refineries (R and D Corporate)

 

 

Name :

Mr. H. Kumar

Designation :

ED – Corp. Strategy and Planning

 

 

Name :

Mr. Anil Pande

Designation :

ED – Projects and Pipelines

 

 

Name :

Mr. S.T. Sathiavageeswaran

Designation :

ED – Information Systems

 

 

Name :

Mr. Ajit Singh

Designation :

ED – Co-ordination, DCO

 

 

Name :

Mr. Rakesh Misri

Designation :

ED – Direct Sales

 

 

Name :

Mr. Pushp Joshi

Designation :

ED – HRD

 

 

Name :

Mr. Sandeep Joseph

Designation :

GM – Industrial Relations

 

 

Name :

Mr. D.M. Sable

Designation :

GM – SHE (Marketing)

 

 

Name :

Mr. P. Rajendran

Designation :

GM – Marketing Projects

 

 

Name :

Mr. R. Ganesan

Designation :

GM – Finance, MR

 

 

Name :

Mr. Rakesh Kumar

Designation :

GM – HR (Comp. Management)

 

 

Name :

Mr. D.K. Hota

Designation :

GM*

 

 

Name :

Mr. K. Srinivasan

Designation :

GM – SHE (Refineries)

 

 

Name :

Mr. A. V. Sarma

Designation :

GM – Natural Gas

 

 

Name :

Mr. P.P. Nadkarni

Designation :

GM *

 

 

Name :

Mr. R. Radhakrishnan

Designation :

GM – Aviation

 

 

Name :

Mr. H.R. Wate

Designation :

GM – Retail

 

 

Name :

Mr. M.K. Surana

Designation :

GM – Projects, VR

 

 

Name :

Mr. V.V.R. Narasimhan

Designation :

GM – Operations, VR

 

 

Name :

Mr. V.K. Jain

Designation :

GM – Tax

 

 

Name :

Ms. Sonal Desai

Designation :

GM – Finance (Risk Management)

 

 

Name :

Mr. J. Ramaswamy

Designation :

GM – Finance (Marketing)

 

 

Name :

Mr. M. Naveen Kumar

Designation :

GM – Finance, VR

 

 

Name :

Mr. V.V. Nagada

Designation :

GM – Projects, MR

 

 

Name :

Mr. N.S. Jagannadharao

Designation :

GM – Maintenance, MR

 

 

Name :

Mr. Y.K. Rao

Designation :

GM – Materials, VR

 

 

Name :

Mr. Ramanuj Roy

Designation :

GM – Commercial, LPG

 

 

Name :

Mr. S. Babu Ganesan

Designation :

GM – Engineering and Projects

 

 

Name :

Mr. A.K. Bhan

Designation :

GM – Retail, SZ

 

 

Name :

Ms. Geeta M. Jerajani

Designation :

GM – Finance, CP and S

 

 

Name :

Mr. H.C. Mehta

Designation :

GM – O and D

 

 

Name :

Mr. R. Kesavan

Designation :

GM – Finance, CEC

 

 

Name :

Mr. B. Ravindran

Designation :

GM – Commercial, Retail

 

 

Name :

Mr. M. Rambabu

Designation :

GM – Materials

 

 

Name :

Mr. MVR Krishna Swamy

Designation :

GM*

 

 

Name :

Mr. S.P. Nair

Designation :

GM – Legal

 

 

Name :

Mr. L.M. Motwani

Designation :

GM – PR and CC

 

 

Name :

Mr. U.K. Vishwekar

Designation :

GM – Shipping

 

 

Name :

Mr. Anil Khurana

Designation :

GM – Retail, NZ

 

 

Name :

Mr. G S V S S Sarma

Designation :

GM – Technical, VR

 

 

Name :

Mr. S.P. Gaikwad

Designation :

GM – CEC (Maharashtra Refinery)

 

 

Name :

Mr. Rajnish Mehta

Designation :

GM – Retail, WZ

 

 

Name :

Mr. J.S. Prasad

Designation :

GM – Pipelines

 

 

Name :

Mr. N.S. Mane

Designation :

GM – HR, MR

 

 

Name :

Mr. V.S. Shenoy

Designation :

GM – Technical, MR

 

 

Name :

Mr. S. Paul

Designation :

GM – Commercial, DS

 

 

Name :

Mr. M D Pawde

Designation :

GM – Operations, MR

 

 

Name :

Mr. N.V. Choudhury

Designation :

GM – Process Technologies, Corporate R and D

 

 

Name :

Mr. S. K. Kulkarni

Designation :

GM – Materials, MR

 

 

Name :

Mr. Venugopal Lekshmank

Designation :

GM – Project Materials, VR

 

 

Name :

Mr. S Raja

Designation :

GM – Maintenance, VR

 

 

Name :

Mr. G Chiranjeevi

Designation :

GM- Retail, North Zone

 

 

Name :

Mr. Dilip Kumar Pattanaik

Designation :

GM – Retail, East Zone

 

 

Name :

Mr. S. Bhattacharjee

Designation :

GM – Joint Venture

 

 

Name :

Mr. K Daniel Santosh

Designation :

GM – Finance, VR

 

 

Name :

Mr. Shrikant M. Bhosekar

Designation :

Company Secretary

 

 

SHAREHOLDING PATTERN

 

As on 30.09.2012 

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

173076750

51.11

http://www.bseindia.com/include/images/clear.gifSub Total

173076750

51.11

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

173076750

51.11

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

45837075

13.54

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

1069786

0.32

http://www.bseindia.com/include/images/clear.gifInsurance Companies

44412426

13.12

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

21121299

6.24

http://www.bseindia.com/include/images/clear.gifSub Total

112440586

33.20

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

34085510

10.07

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

15754832

4.65

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

1959009

0.58

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

1310563

0.39

http://www.bseindia.com/include/images/clear.gifDirectors & their Relatives & Friends

1275

0.00

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

189764

0.06

http://www.bseindia.com/include/images/clear.gifTrust & Foundation

196517

0.06

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

923007

0.27

http://www.bseindia.com/include/images/clear.gifSub Total

53109914

15.68

Total Public shareholding (B)

165550500

48.89

Total (A)+(B)

338627250

100.00

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

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

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

338627250

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Refining and Marketing of Petroleum Products.

 

 

Products :

Item Code No. (ITC Code)

2710

Product Description

Bulk Petroleum Products

 

 

Item Code No. (ITC Code)

271000.41/61

Product Description

Lubricants

 

 

Item Code No. (ITC Code)

290122.00

Product Description

Propylene

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

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

 

Particulars

Licensed Capacity

Installed Capacity

 

(a) Petroleum fuel and lube products

14800000

14800000

(b) Lubricating Oils, Greases and Textile Auxiliaries *

NA

319779

(c) Hydraulic Brake Fluid and Insecticides

NA

4062

 

* Product manufacturing facilities are interchangeable

 

Production in Metric Tonnes:

 

Particulars

Actual Production

(a) Petroleum fuel and lube products

 

i. Bulk Petroluem Products

14765526

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

382420

iii. Carbon Black Feed Stock

-

iv. Axle Oil

-

v. Rubber Processing Oil

94168

(b) Lubricating Oils

183249

(c) Textile Auxiliaries

17

(d) Insecticides

168

(e) Greases

6873

 

 

GENERAL INFORMATION

 

No. of Employees :

11248 (Approximately)

 

 

Bankers :

·         Bank of Baroda

·         Bank of India

·         Citibank N.A.

·         Corporation Bank

·         HDFC Bank

·         ICICI Bank

·         Punjab National Bank

·         Standard Chartered Bank

·         State Bank of India

·          Union Bank of India

 

 

Facilities :

Secured Loan

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

7.70% Non-Convertible Debentures (a) (i)

10000.000

10000.000

7.35% Non-Convertible Debentures (a) (ii)

0.000

10000.000

Collateral Borrowing and Lending Obligation (CBLO) (Secured by Pledge of 6.90 % Oil Marketing Companies' GOI Special Bonds, 2026)

 

12600.000

9900.000

Overdrafts from Banks (secured by hypothecation of Stock-in-Trade)

3920.600

6676.800

Total

26520.600

36576.800

Unsecured Loan

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

Term Loan from Oil Industry Development Board (b)

8902.500

6210.000

Syndicated Loans from Foreign Banks (repayable in foreign currency) (c)

44011.200

27970.500

Short Term Loans from Banks (repayable in foreign currency)

148508.200

96283.600

Clean Loans from Banks

6000.000

60250.000

Inter Company Deposits

9450.000

5000.000

Commercial Paper

31400.000

4000.000

Total

248271.900

199714.100

 

(a) Debentures

 

The company has issued the following secured redeemable non-convertible debentures:

 

7.70% Non-Convertible Debentures issued on 12th April, 2010 with the maturity date of 12th of April, 2013. These are secured by mortgage, on first pari passu charge basis, over certain fixed assets of the Company situated at Mumbai Refinery and Visakh Reinery.

 

7.35% Non-Convertible Debentures issued on 4th December, 2009 with the maturity date of 4th of December, 2012. The same have been shown as "Current Maturity of Long Term Debts" under Note # 10A. These are secured by mortgage, on first pari passu charge basis, over certain fixed assets of the Company situated at Mumbai Refinery.

 

(b) Term Loan from Oil Industry Development Board

 

Repayable During

As on 31st March, 2012

 

Repayable Amount Rs. / Millions

Range of Interest Rate

2011-12 *

-

-

2012-13*

2307.500

7.10% - 9.96%

2013-14

3307.500

7.10% - 9.96%

2014-15

2345.000

7.10% - 8.39%

2015-16

2000.000

7.20% - 8.39%

2016-17

1250.000

8.07% - 8.39%

Total

11210.000

-

 

Rs.2307.500 Millions (2010 - 11 : Rs.1307.500 Millions) is repayble within 1 year

and the same has been shown as "Current Maturity of Long Term Debts" under Note # 10A.

 

(c)    Syndicated Loans from Foreign Banks (repayable in foreign currency)

The Corporation has availed long term foreign currency syndicated loans from banks on floating LIBOR. These loans are taken for the period of 5 years. During the year ended March, 2012 an amount of Rs. 11212.300 Millions. (2010 - 2011 Rs. 12613.200 Millions) of Syndicated Loans is repayble within one year and the same has been shown as "Current Maturity of Long Term Debts" under Note # 10A.

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

 

 

Statutory Auditors Name :

Om Agarwal and Comapany

Chartered Accountant

Address :

Jaipur

 

 

Statutory Auditors Name :

B. K. Khare and Company

Chartered Accountants

Address :

Mumbai

 

 

Branch Auditors Name :

Sriramamurthy and Company

Chartered Accountants

Address :

Visakhapatnam

 

 

Cost Auditors Name :

R. Nanabhoy and Company

Chartered Accountants

Address :

Jer Mansion, 1st Floor, 70, August Kranti Marg, Mumbai - 400 036, Maharashtra, India

 

 

Cost Auditors Name :

CMA Rohit J. Vora

Chartered Accountant

 

1103, Raj Sunflower, Royal Complex, Eksar Road, Borivali West, Mumbai - 400 092, Maharashtra, India

 

 

Joint Venture Companies

v          Prize Petroleum Company Limited (upto 18-12-2011)

v          HPCL-Mittal Energy Limited

v          Hindustan Colas Limited

v          South Asia LPG Company Private Limited

v          Petronet India Limited

v         Aavantika Gas Limited

 

 

CAPITAL STRUCTURE

 

 

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

349250000

Equity Shares

Rs.10/- each

Rs.3492.500 Millions

75000

Preference Shares

Rs.100/- each

Rs.7.500 Millions

 

 

 

 

 

                                                          Total

 

Rs. 3500.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

339330000

Equity Shares

Rs.10/- each

Rs.3393.300 Millions

 

Less: 802750 Shares Forfeited

 

Rs.7.000 Millions

338627250

Equity Shares

 

Rs.3386.300 Millions

 

Add: Shares Forfeited (money received)

 

Rs.3.900 Millions

 

 

 

 

 

Total

 

Rs.3390.100 Millions

 

Details of shares held by each shareholder holding more than 5% shares in the Company

 

Particular

31.03.2012

President of India

511.100

Life Insurance Corporation of India

88.900

 

Right and Restrictions on Equity Shares

 

The Company has only one class of Equity Shares having a face value of X 10/- per share which are issued and subscribed. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the unlikely event of the winding up of the Company, the holders of equity shares will be entitled to receive the remaining assets of the company in proportion to the number of equity shares held by the shareholders and the amount paid up thereon. Company also has 75,000 6% cummulative Redeemable Non-convertible Preference Shares of X 100/- each as a part of the Authorised Capital, which were issued earlier by the erstwhile ESRC. Presently the said preference shares stand redeemed.

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

3390.100

3390.100

3390.100

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

127835.100

122068.000

112189.600

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

131225.200

125458.100

115579.700

LOAN FUNDS

 

 

 

1] Secured Loans

26520.600

36576.800

13758.800

2] Unsecured Loans

248271.900

199714.100

199264.900

TOTAL BORROWING

274792.500

236290.900

213023.700

DEFERRED TAX LIABILITIES

30852.800

31956.400

18079.700

 

 

 

 

TOTAL

436870.500

393705.400

346683.100

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

208496.500

186445.300

153066.700

Capital work-in-progress

44444.700

36960.000

38875.900

 

 

 

 

INVESTMENT

103705.000

113350.200

113872.200

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
194545.300

166222.800
125792.200

 

Sundry Debtors
35651.600

30768.600
24373.400

 

Cash & Bank Balances
2263.800

790.200
2431.700

 

Other Current Assets
5482.700

4801.300
1237.400

 

Loans & Advances
116483.900

68272.500
52584.700

Total Current Assets
354427.300

270855.400

206419.400

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
126976.500

90294.000
73931.300

 

Other Current Liabilities
127390.600

104624.100
71423.900

 

Provisions
19835.900

18987.400
20195.900

Total Current Liabilities
274203.000

213905.500

165551.100

Net Current Assets
80224.300

56949.900

40868.300

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

436870.500

393705.400

346683.100

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

1781392.300

1334989.400

1013475.100

 

 

Other Operating Revenue

1965.900

1728.800

--

 

 

Recovery under Subsidy Schemes

--

--

62899.500

 

 

Other Income

10255.900

11706.600

16461.600

 

 

TOTAL                                     (A)

1793614.100

1348424.800

1092836.200

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

569432.300

403620.100

1059941.900

(Including Financial Expenses)

 

 

Purchases of Stock-in-Trade

1093707.300

853968.600

 

 

Packages consumed

1816.700

1434.200

 

 

Excise Duty on Inventory differential

(3996.800)

2851.500

 

 

Transshipping Expenses

32545.000

28865.000

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(8242.900)

(34387.800)

 

 

Employee benefits expense

15831.000

19818.400

 

 

Exploration Expenses

963.800

930.300

 

 

Other Expenses

40838.700

24804.700

 

 

Prior Period Charges

4.900

152.400

 

 

TOTAL                                      

1742900.000

1302057.400

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION 

50714.100

46367.400

 

 

 

 

Less

FINANCIAL EXPENSES                        

21392.400

8920.600

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION                                    

29321.700

37446.800

32894.300

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

17129.300

14069.500

11644.000

 

 

 

 

 

 

PROFIT BEFORE TAX 

12192.400

23377.300

21250.300

 

 

 

 

 

Less

TAX                                                                 

3078.100

7987.200

8236.600

 

 

 

 

 

 

PROFIT AFTER TAX                  

9114.300

15390.100

13013.700

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

93731.200

87151.500

81041.600

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

General Reserve

911.400

1539.000

1301.400

 

 

Debenture Redemption Reserve

1761.500

1761.500

864.000

 

 

Proposed Final Dividend

2878.300

4740.800

4063.500

 

 

Tax on Distributed Profits

467.000

769.100

674.900

 

BALANCE CARRIED TO THE B/S

96827.300

93731.200

87151.500

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of goods calculated on FOB basis

77824.800

55228.000

63822.600

 

TOTAL EARNINGS

77824.800

133052.800

119050.600

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

514651.200

299307.800

291579.600

 

 

Stores & Spares

630.900

836.300

1276.800

 

 

Reimbursement of expenses

1001.000

1127.400

890.700

 

TOTAL IMPORTS

516283.100

301271.500

293747.100

 

 

 

 

 

 

Earnings Per Share (Rs.)

26.92

45.45

38.43

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2012

Type

 

 

1st Quarter

Net Sales

 

 

444976.000

Total Expenditure

 

 

529524.100

PBIDT (Excl OI)

 

 

(84548.100)

Other Income

 

 

2125.700

Operating Profit

 

 

(82422.400)

Interest

 

 

5492.400

Exceptional Items

 

 

(29.000)

PBDT

 

 

(87943.800)

Depreciation

 

 

4544.200

Profit Before Tax

 

 

(92488.000)

Tax

 

 

0.000

Provisions and contingencies

 

 

0.000

Profit After Tax

 

 

(92488.000)

Extraordinary Items

 

 

0.000

Prior Period Expenses

 

 

0.000

Other Adjustments

 

 

0.000

Net Profit

 

 

(92488.000)

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
0.51

1.14
1.19

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
0.68

1.75
2.10

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
2.17

5.11
5.91

 

 
 

 
 

Return on Investment (ROI)

(PBT/Net worth)

 
0.09

0.19
0.06

 

 
 

 
 

Debt Equity Ratio

(Total Liability/Net worth)

 
4.18

3.59
3.28

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.29

1.27
1.25

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

------

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

------

26]

Buyer visit details

------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

LITIGATION DETAILS:

 

Case Details

Bench:- Bombay

 

Stamp No.:- WPST/17655/2012  Filing Date:- 03/07/2012 Reg. No.:- WP/6483/2012  Reg. Date:- 11/07/2012

Petitioner:- MUMBAI SAHAKARI GHASLATE VITRAN SANS        Respondent:- HINDUSTAN PETROLEUM

                                                                                                                        CORPORATION LTD

Petn.Adv.:- A.S. DESAI                                                               Resp.Adv:-  PALLAVI N. DABHOLKAR

District:- MUMBAI

Bench:- DIVISION

Status: Pre – Admission

Next Date:- 13/12/2012                                             Stage:- FOR ADMISSION – AFTER NOTICE

Coram:-  HON’BLE SHRI JUSTICE A.M. KHANWILKAR

              HON’BLE SHRI JUSTICE R.Y. GANOO

Last Date:- 25/10/2012                                              Stage:- FOR ADMISSION – AFTER NOTICE

Last Coram:- HON’BLE SHRI JUSTICE A.M.KHANWILKAR

                    HON’BLE SHRI JUSTICE R.Y.GANOO

Act:- Essential Commodities Act

 

 

 

CONTINGENT LIABILITY

 

Contingent Liability not provided for, in respect of: -

                    (Rs. in millions)

PARTICULARS

31.03.2011

i.         Sales Tax/Octroi

144.800

ii.       Excise/Customs

340.100

iii.      Employee Benefits/Demands (to the extent quantifiable)

1671.600

iv.      Claims against the Corporation not acknowledged as debts

2376.900

v.        Others

2672.500

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE

 

PART I

Particulars

30.06.2012

(Unaudited)

Quarter Ended

A

FINANCIAL PERFORMANCE ( Rs. in Millions )

 

1

Sales/Income from Operations

464057.400

 

Less : Excise Duty Paid

(23292.500)

 

Net Sales/Income from Operations

440764.900

2

Other Operating Income

4211.100

3

Expenditure

 

 

(Increase) / Decrease in Inventory

19563.000

 

Consumption of Raw Materials

143018.200

 

Purchase of Products for Resale

331038.500

 

Employee Cost

9503.200

 

Depreciation

4544.200

 

Other Expenditure

26401.200

 

Total

534068.300

4

Profit/(Loss) from Operations before Other Income,

 

 

Financial Cost & Exceptional Items (1+2-3)

(89092.300)

5

Other Income

2125.700

6

Profit/(Loss) from ordinary activities before Finance Cost & Exceptional Items (4+5)

(86966.600)

7

Finance Cost

5492.400

8

Profit/(Loss) after Finance Cost but before

 

 

Exceptional Items (6-7)

(92459.000)

9

Exceptional Items / Prior Period Items - Expenses/(Income)

29.000

10

Profit/(Loss) from Ordinary Activities before tax (8-9)

(92488.000)

11

Provision for Taxation

-

12

Net Profit/(Loss) from Ordinary Activities after tax (10-11)

(92488.000)

13

Extraordinary Item

-

14

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

(92488.000)

15

Paid up Equity Share Capital (Face value Rs. 10/- each)

3386.300

16

Reserves excluding Revaluation Reserves as per Balance Sheet

 

17

Earnings Per Share:

 

 

(i) Basic and Diluted before extraordinary item (Yes)

(2731.200)

 

(ii) Basic and Diluted after extraordinary item (Yes)

(2731.200)

18

Cash Earnings Per Share before/after extraordinary items (Yes)

(2596.200)

B

PHYSICAL PERFORMANCE (in MMT)

 

 

Crude Thruput

3.58

 

Market Sales (Including Exports)

7.66

 

Pipeline Thruput

3.36

 

SELECTED INFORMATION FOR THE QUARTER ENDED 30TH JUNE, 2012

 

(Rs. in Millions)

PART II

30.06.2012

A PARTICULARS OF SHAREHOLDING

 

1 Public Shareholding

 

Number of Shares

16,55,50,500

Percentage of Shareholding (%)

48.89

2 Promoters and Promoter Group Shareholding

 

(a) Pledged/ Encumbered

 

-  Number of Shares

NIL

-  Percentage of Shares

NIL

(b) Non-Encumbered

 

-  Number of Shares

17,30,76,750

              - Percentage of Shares (as a % of total shareholding of Promoter and Promoter           Group)

100

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

 51.11

B INVESTOR COMPLAINTS :

 

Balance as on 01-04-2012

NIL

Received during the quarter

7

Disposed off during the quarter

7

Balance as on 30-06-2012

NIL

 

Note:

 

1 Average Gross Refining Margins during the Quarter ended June 2012, were US $ (2.05) per BBL as against US $ 1.09 per BBL during the corresponding previous quarter.

 

2 The prices of PDS Kerosene and Domestic LPG are subsidized as per the scheme approved by the Government of India. During the quarter ended June 2012, Subsidy amounting to Rs. 1679.400 Millions (April 2011 - June 2011 : Rs.1631.400 Millions) has been accounted at 1/3rd of the subsidy rates for 2002-03 as approved by the Government.

 

3 During the quarter ended June, 2012, discount from upstream oil companies, viz., ONGC and GAIL, amounting to  Rs.29759.500 Milllions(April 2011 - June 2011 : Rs.31667.900 Millions) in respect of Crude Oil, PDS Kerosene & Domestic LPG purchased from them has been accounted. In addition, an amount of Rs. 3812.500 Millions (April 2011 - June 2011 : Nil) receivable from ONGC towards compensation of under - recoveries has been accounted as "Other Operating Revenue".

 

4 Provision for tax expenses has not been considered due to uncertainty in estimation of profit, pending finalization of compensation mechanism for under - recoveries on sale of sensitive petroleum products.

 

5 Employee cost for the current quarter includes additional provision of Rs. 3490.000 Millions towards Long Term Settlement (LTS) of non-management staff from the period July 2007 / October 2008, made on the basis of approval obtained from the competent authority in the current year.

 

6 The Comptroller and Auditor General of India has completed the supplementary audit on the audited accounts for the year ended 31st March, 2012 under section 619 (4) of the Companies Act, 1956 and has issued Nil Comments Certificate.

 

7 Previous period's figures have been regrouped/reclassified wherever necessary.

 

 

SEGMENT-WISE RESULTS

(Rs. in Millions)

Particulars

30.06.2012

(Unaudited)

Quarter Ended

1   SEGMENT REVENUE

 

a) Downstream Petroleum

445400.500

b) Exploration & Production of Hydrocarbons

-

Sub-Total

445400.500

Less: Inter-Segment Revenue

-

TOTAL REVENUE

445400.500

2   SEGMENT RESULTS

 

a) Profit/(Loss) before Tax, Interest Income, Interest

 

Expenditure and Dividend from each Segment

 

i) Downstream Petroleum

(89046.000)

ii) Exploration & Production of

 

Hydrocarbons

(87.700)

Sub-Total of (a)

(89133.700)

b) Finance Cost

5492.400

c) Other Un-allocable Expenditure

 

(Net of Un-allocable Income)

(2138.100)

Profit/(Loss) before Tax (a-b-c)

(92488.000)

3   CAPITAL EMPLOYED

 

(Segment Assets - Segment Liabilities)

 

a) Downstream Petroleum

74427.300

b) Exploration & Production of

 

Hydrocarbons

(5797.100)

c) Others (Unallocated-Corporate)

86049.400

Total

154679.700

 

Note:

 

1 The Company is engaged in the following business segments:

 

a) Downstream i.e. Refining and Marketing of Petroleum Products

 

b) Exploration and Production of Hydrocarbons

Segments have been identified taking into account the nature of activities and the nature of risks and returns.

 

2 Segment Revenue comprises of the following:

 

a) Turnover (Net of Excise Duties)

 

b) Subsidy from Government of India

 

c) Other income (excluding interest income, dividend income and investment income)

 

3 There are no geographical segments.

 

4 Previous period's figures have been regrouped/reclassified wherever necessary.

 

The Financial Results for the quarter have been subjected to a Limited Review by the Corporation's Statutory Auditors. The above results have been reviewed and recommended by the Audit Committee in its meeting held on August 9, 2012 and taken on record by the Board of Directors at its meeting held on August 9, 2012.

 

SALES/INCOME FROM OPERATIONS
 
The Company has achieved sales/income from operations of   Rs.1881309.500 Millions as compared to  Rs.1423964.900 Millions in 2010-11.               
 
PROFIT
 
The Company has earned gross profit of Rs. 50714.000 Millions  as  against   Rs.  46367.500 Millions in 2010-11 and profit after tax of Rs. 9114.300  Millions  as compared to  Rs. 1,5390.100 Millions in 2010-11.

 

 

REFINERY PERFORMANCE
 
HPCL refineries processed a combined crude thruput of 16.19 MMT (14.75  MMT  in  2010-11) with a capacity utilization of 109% of the installed  capacity  of 14.80 MMT.
 
The Combined Distillate yield of 73.2% was higher than MoU Excellent target  of 73.0%. HPCL refineries recorded the highest ever HS crude processing  of  68.3%.
 
Gross  refining margins of Mumbai Refinery averaged at US$ 2.83 per  barrel  as against US$ 4.65 per barrel for the year 2010-11.
 
Gross  refining margins of Visakh Refinery averaged at US$ 2.95 per  barrel  as against US$ 5.81 per barrel for the year 2010-11. 
 
Mumbai Refinery:
 
During  the  year, Mumbai Refinery achieved crude thruput of  7.51  MMT  as  against installed capacity of 6.50 MMT. The refinery has set a milestone by recording  the highest ever crude thru put surpassing the previous  best  of  7.42 MMT during 2006-07.
 
The  Distillate  yield  at 72.3% was higher than MoU  Excellent  target  of  71.7%.
 
Mumbai  Refinery  achieved Specific Energy Consumption  (MBTU/BBL/NRGF)  of  81.4 against MoU Excellent target of 89.0 for the current year.
 
The fuel and loss for the year was 7.9% against the target of 8.2% 
 
Visakh Refinery:
 
Visakh  Refinery  achieved crude thruput of 8.68 MMT as  against  installed  capacity of 8.30 MMT The Distillate yield at 74.0% was inline with the  MoU  Excellent target of 74.10%.
 
Visakh  Refinery  achieved Specific Energy Consumption  (MBTU/BBL/NRGF)  of  84.20 against MoU Excellent target of 88.0 for the current year.
 
The fuel and loss for the year was 7.4% against the target of 7.9%.
 
The  particulars  with  respect  to  Conservation  of  Energy,   Technology  Absorption, Foreign Exchange Earning and Outgo are detailed in Annexure I.
 
The  particulars relating to control of Pollution and other initiatives  by Refineries are listed in Annexure II of Directors` Report.
 
MARKETING PERFORMANCE
 
During the year 2011-12, the Corporation achieved sales volume  (including  exports)  of 29.48 million tonnes as against 27.03 million tonnes  recorded  in  2010-11.  HPCL recorded a growth of 7.9% in Marketing Sales,  over  the  sales  volume of the previous year and amongst public sector oil  companies  increased  its  market share to 19.96% as on 31st March  2012  from  19.65%  recorded in the previous year.
 
During  the year, the Corporation commissioned 1,056 new  retail  outlets,  which include 329 retail outlets in the rural areas taking the total  tally  to 11,253 Retail Outlets. The Corporation increased its market share in MS  and  HSD  (combined)  by 0.55%, the highest gain in market  share  by  HPCL  during  the last 26 years. In the LPG business line, enrolled  33.56  Lakhs  new HP Gas customers taking their total to 362 lakh as on 31st March  2012.  In  order to provide LPG to rural India, the Corporation commissioned  218  distributors  under  the  Rajiv Gandhi Gramin LPG Vitaran  Yojana.  In  the  Aviation Business line, the Corporation achieved the highest ever sales of  768 TMT during the year. A record thruput of 41 million tonnes was  handled  by  POL  installations and the Corporation`s pipeline network  achieved  a  thruput  of  13.62 million tonnes during the year, exceeding  the  targeted  thruput.

 

DEVELOPMENTS IN THE ECONOMY AND THE OIL SECTOR
 
The Indian economy slowed down perceptibly in 2011-12. The GDP growth was estimated to be 6.5% during 2011-12 compared to 8.4% in 2010-11. The growth rate  was  below  the average annual growth of 7.6%  during  the  preceding  decade. Growth in agriculture and industry declined. Agriculture, which had grown at 7% in 2010-11, is estimated to have grown by 2.8% during  2011-12.  Industry growth dipped to 3.4% in 2011-12 from 7.2% in 2010-11. The growth  rate for services declined to 8.9% in 2011-12 compared to 9.3% in  2010-11.  The slowdown is a consequence of, among others, a monetary policy followed to  combat inflation, supply constraints and a troubled  external  economic  environment.
 
Inflation remained around 10% for major part of the  financial  year.  It started declining around Dec`11 with fall  in  primary  food  inflation.  Manufactured products inflation also declined with slowdown in the economy. Fuel and power group inflation remained high despite suppression of prices of sensitive petroleum products. Global crude prices remained above US  $  100  per barrel throughout the year, fluctuating in $100/bbl. to  $125/bbl.  band.  Despite subdued global economy and oil demand, prices remained high due to turbulence in the Middle East- loss of Libyan supplies, Iran nuclear issue, and unrest in Syria, etc.
 
 
High oil prices contributed to widening of the current account deficit. Oil  imports  by India increased by about 46% in 2011-12 compared to  about  22%  increase  in the previous fiscal. Non-oil imports increased by  about  27%.  The total imports increased by 32.4% in 2011-12 compared to 28.2% in 2010- 11.  Exports growth declined to 21.3% in 2011-12 from 40.5% in 2010-11 due to  Eurozone crisis and worsening global economic outlook. Current  account  deficit widened to about 4.5% of GDP in Q4 of 2011-12 taking the full  year  ratio to 4.2% of GDP resulting in a substantial drawdown of reserves.
 
Despite the slowdown, the consumption of petroleum products increased by 4.9% in 2011-12 compared to 2.6% in 2010-11. Petroleum products consumption in 2011-12 was about 151 million tons. Consumption of all products except SKO, LDO, FO and LSHS increased. HSD grew at a whopping 8%, almost double the annual average growth rate of 4.7% during the last decade.  Although consumption of FO and LSHS has been declining in the last couple of years, drop during the year was quite large at 17%.  Growth rate for petrol consumption decreased to 5.7% in 2011-12 compared to 11% in 2010-11.  LPG and Naphtha consumption increased by 7.5% and   5.6%   respectively.  Consumption of ATF increased by 9% while there was marginal growth of about 2% in Bitumen consumption.
 
Economic  environment is still subdued and downside risks remain as  issues  plaguing  the  domestic and international economy have proved to  be  quite  intractable.
 
World Oil
 
As  per  the BP Statistical review of world energy  June,12,  the  estimated  global  consumption has increased to 88.034 Million Barrels Per Day  (MBPD)  representing an increase 0.595 MBPD i.e., a growth of 0.7% over historical.  Consumption  in Asia-Pacific grew by 2.7%. India contributed to 4%  of  the  world`s  oil consumption. The world oil production increased by 1.095  MBPD to  83.576 MBPD representing a growth of 1.3% over historical. There was  a  decline  in production from the African region, by 1.3 MBPD, out  of  which  the decline in Libya alone was 1.179 MBPD. The decline in Libya was off-set  by  increase in production from other OPEC members of Kuwait, Iraq,  Qatar,  Saudi Arabia and United Arab Emirates in the Middle-east. Oil production in  Iran  marginally declined by 0.6% to 4.321 MBPD. While, OPEC accounted  for  1.077  MBPD increase i.e., growth of 3.1%, the total increase in  countries  from  Middle East was 2.376 MBPD representing a growth of 9.3%.  Production  in  Europe  decreased  by 1.8%, while it increased by  about  2.4%  in  the  American continents.
 
The  proved oil  reserves were 1652.6 Billion  barrels  with  reserves  to  production ratio of 54.2 years. 48.1% of the proved reserves continue to be in Middle East.

 

 

MARKETING
 
The total sale of products (including exports) by the Corporation for 2011- 12 was 29.48 MMT as against 27.03 MMT during 2010-11. During the year, HPCL  increased market share in domestic sales to 18.40% achieving a market share  gain of 0.50%. HPCL recorded a growth of 7.9% in Marketing Sales, over  the  sales  volume  of the previous year. Amongst Public Sector  Oil  companies,  HPCL increased its market share to 19.96% during 2011-12 compared to  19.65  % recorded the previous year.
 
Retail
 
Retail constitutes 68% of HPCL`s overall sales and enjoys high brand recall  among  consumers. HPCL enjoys significant market share of 25%  in  combined  petrol  and  diesel  retail segments as of Mar`12.  During  the  year,  the  innovative measures and initiatives for differentiated customer  experience  by HPCL resulted in accelerated growth, excellent physical performance  and  landmark achievements in the motor fuels segment.
 
Retail sales  of Motor Spirit (MS) increased by 7.5% in the  year  2011-12  compared to Industry (PSU) growth of 6%. High Speed Diesel (HSD) sales grew  by 14.7% against Industry (PSU) growth of 11.7%. HPCL increased its  market  share  in MS and HSD (combined) by 0.55% during the year 2011-12. HPCL  has  commissioned  1,056 new outlets, including 329 outlets in the  rural  areas  during 2011-12 taking the total number to 11,253 retail outlets.
 
Customer - Centric Initiatives
 
To enhance Customer Experience, strong measures were undertaken to  improve  and  standardize  the services offered at retail outlets.  During  2011-12,  HPCL  implemented Standard Operating Practice (SOP) at about  2,750  retail  outlets  pan-India,  which would be scaled up to all retail  outlets  going  forward.  This initiative was taken to provide an enjoyable and consistent  customer  experience  across all retail outlets. Additionally,  to  enhance  customer  confidence,  daily  Quality and Quantity (QandQ)  checks  along  with  regular QandQ campaigns are being driven for their customers.
 
To enhance network productivity, HPCL has rolled-out a strategic  framework  tool  at  about  2,000 retail outlets during  2011-12  for  taking  outlet- specific  initiatives.  These initiatives include  outlet-specific  schemes  based  on  local  tie-ups over and above the  national  and  regional-level  campaigns, specifically catering to outlet-specific customers. To provide a  fulfilling  and complete experience, additional facilities like ATMs,  tyre shops,  food  outlets, and convenience stores have been opened  up  at  the  outlets.   Additionally,  higher  focus  was  ensured  on  Local   Business  Solicitation and Key Account Management by leveraging their Loyalty  Program,  Automation, Outlet facilities and Customer Service.
 
Retail SOP Refresher Training for Forecourt Salesmen
 
An extensive audio-visual cum cue card based training "Retail SOP Refresher  Training"  was  launched aimed to create awareness of  safety,  health  and  hygiene  aspects among the Forecourt Sales Men of the retail  outlet  (FSM)  and   to  impart  in  them,  the  skills  of  salesmanship   and   customer  relationship.  The  programme  imparts  knowledge  on  Standard   Operating  Practices  and  engaging "Retail FSMs (Forecourt Sales Man)" as a  key  SOP  Implementer  at  the Retail Outlets. The newly designed training  makes  an  extensive  use  of cue cards coupled with class room training  and  faculty  observation  for the individual development of FSM`s. During 2011-12,  232  programs were conducted covering 328 dealers and 4,678 FSMs.
 
The major impacts of the programme were visible improvement in Housekeeping  Practices,  imbibing  of  a better Queue  management  culture  and  increased  awareness of safety standards.
 
Direct Sales - Industrial and Consumer
 
I and C  Business  line operated in a challenging and  competitive  environment  during  the  year  2011-12 achieving a sale volume of  4.08  MMT  including  exports. Domestic sale of 3.94 MMT is marginally lower by 3%over previous year sales.  The focus during the year was on margin improvement.  The Business line recorded a growth of above Industry in MS, HSD, Bitumen, Hexane, Solvent and Propylene. However, sale of heavy fuels such as, FO and LSHS have got affected due to Customers switching over to cheaper alternate fuels including Natural gas especially in Power and Petrochemical Sectors.
 
During 2011-12, HSD Consumer sales surpassed 1 MMT mark for the first time, recording a growth of 14.7% compared to Industry growth of 2.6%. Similarly, the Business line also achieved highest ever sale of 931 TMT in Bitumen recording a growth of 16.9% as compared to Industry growth of 2.1%. The year also saw commissioning of 42 HSD Consumer pumps including 7 for the Indian Army. To augment Bitumen supply infrastructure in the east coast, a Bulk Bitumen storage facility was commissioned at Chennai (Cassimode Terminal).
 
Strengthening  Infrastructure,  Bunker  Market,  long  term  tie-up`s,  Key  Account  Management  etc.  have been identified as a few  focus  areas  for  achieving  growth in the Direct sales business. The commissioning  of  HMEL  (JV)  Refinery  at  Bathinda,  Punjab  would  further  strengthen   product  availability in northern markets.
 
Direct Sales - Lubes

 

India continues to be the third largest lube market in the world after US and China. The consumption of  lubricants  in  the  country   including  transformer  oils  and  white  oils  in the  year  2011-12  was  2,550  TMT  approximately.  The market comprises of 650 TMT of Commercial Automotive Oils, 350 TMT of Consumer Automotive Oils and 1,550 TMT of Industrial Oils and Fluids. The value added lube sales (excluding base oil sales) for HPCL  has  increased to 267 TMT during 2011-12 from 243 TMT in the previous  year  representing  a  significant growth of 10%. HPCL commissioned 27 new Lube Distributors and CFAs in unrepresented markets during the  year,  further  strengthening the marketing network.

 
The product range has been expanded by launching various new products of HP  Milcy  Turbo  Tech in the Diesel engine oil category,  HP  Gabriel  Premium  Front Fork Oil in Automotive specialties category and Aurelia TI and  Talusia  Universal  in  the  Marine  oils  category.  In  order  to  meet   specific  requirements  of  customers,  HPCL also customized  and  launched  distinct  products  like Drawmet 14 S, Drawmet CABOD, Metasafe 1 AL, Cyndol  TC  800,  Hycom Turbo Syn 100, Seetul RFL, Enklo HVLP 100 AH, Enklo 15AH and  Parthan  RR 460 during the year.
 
During  2011-12,  HPCL entered into new tie ups with JCB  India  and  Force  Motors  for  supply  of  lubes to their factory as  well  as  service  fill  requirements.  The business relationship with other major OEMs  like  Bajaj 
Auto,  Bosch, TMTL (formerly Eicher), John Deere, TMTL  (formerly  Eicher),  Gabriel,  etc.  was strengthened with portfolio expansion.  HPCL  continued  innovation  in  packaging  with  introduction  of  Polypropylene  Copolymer  Plastic (PPCP) square bucket for 20 and 10 Litre sizes, development of  new  design and new closure PET bottle with special tamper evident features.
 
HPCL`s  range of Agricultural Spray Oils (for Apple, Tea, Grape, etc.)  was  accorded  approval  by  certifying agency  "Institute  for  Market-ecology"  (IMO), Switzerland for Organic farming.
 
The  new  Grease and Specialty plant at Silvassa with capacity of 5  TMT  per  annum  for manufacturing greases, coolants and brake fluid has  been  fully  stabilized during the year.
 
The commissioning of 227 TMTPA Group II Base Oils facility at HPCL`s  Lube  Refinery at Mumbai, has eliminated dependency on other sources for Group II  base  oils.  HPCL commenced sales of Group II base oils under the  brand  Alprol Super grades.
 
HPCL is  focused  on product development and product  innovation  to  meet  customer needs and increase sales in this profitable segment of Business.
 
LPG
 
The Industry witnessed a declining growth rate in the total LPG consumption in  the second half of the year. During second half of 2011-12, the  growth  in consumption was 5.4% compared to 9.9% during the first half of the year.  The  total  LPG  Sales for Industry was 14.7 MMT during the  year  with  an  overall growth of 7.5% over previous year.
 

HPCL  continues to be the second largest LPG sales marketer in the  country  with a market share of 26.5% during 2011-12. The sales during the year were  3,899  TMT  compared to historical sales of 3644 TMT,  corresponding  to  a  growth of 7.1% over historical sales. Domestic LPG Sales were 3,432 TMT. In  the  highly competitive Non-Domestic (ND) Bulk segment, HPCL  continues  to  maintain leadership position with 40% market share.

 
In line with Vision 2015 of MOPandNG, HPCL has drawn comprehensive  strategic  plans  to increase penetration of domestic LPG in the rural  areas.  During  2011-12, HPCL has commissioned 218 new distributorships under Rajiv  Gandhi  Gramin LPG Vitaran (RGGLV) Yojana and 46 new regular HP Gas Distributorship  across India taking the total number of LPG Dealerships to 2,897. HPCL  has  enrolled  33.6 Lakh new customers for domestic LPG and released  20.8  Lakh  double  bottle  connections  during 2011-12. The  total  domestic  customer  population  reached  3.58  Crore with 1.79 Crore  customers  having  double  bottle   connections.  The  total  customer  base  including   non-domestic  customers  is  3.62  Crore  as  of March  31st,  2012.  To  have  sustained  competitive  advantage  in non-domestic segment, HPCL commissioned  10  new  exclusive ND distributorship across India.
 
During  2011-12,  HPCL  achieved highest ever bottling of  3,747  MMT  with  quantum  increase  in productivity corresponding to 7.9%  over  historical.  Apart  from new capacity additions at Hazarwadi and Purnea LPG Plants,  all  LPG plants have been converted to High Speed Downstream facilities  thereby  increasing  production  rate  from  1,300  to  1,500  cylinders  per   hour  approximately.  The total Bottling capacity has been increased by  675  TMT  during the year to 3,610 TMTPA. The storage capacity was increased by 10.8 TMT with augmentation at Ajmer, Raipur and Nasik plants and the completion of new LPG Plants. The total storage capacity for LPG at marketing plants and import facilities is 92.3 TMT as of March 31st, 2012.
 
A  major innovation was achieved at HPCL Mysore LPG Plant, wherein  an  in- house  sealing carousel for PVC sealing of cylinders was  developed  giving  excellent sealing quality at a very high rate of sealing.
 
As  part of efforts to leverage technology, HPCL has implemented Tank  Farm  Management System (TFMS) interfacing with ERP at Loni, Mahul, Rajahmundry and  Cherlapally  LPG  plants for auto closing stock recording during  the  year  taking the total number to 6 LPG plants where TFMS-ERP interfacing has been  completed.
 
LPG Infrastructure Augmentation
 
HPCL has identified development of LPG Infrastructure as a key focus area.  During  the year, On-line Propane-Butane blending facilities at NMPT  Jetty  for  Mangalore  LPG  Import  Facilities  (MLIF)  were  commissioned.   HPCL commissioned a new LPG Plant at Bathinda with capacity of 75 TMTPA and a 16 bay bulk tank truck loading gantry at a cost of Rs. 110 Crore in  Mar`12.  Further, a new LPG Plant at Hazira of 150 TMTPA capacity at a cost Rs.  640.000 Millions has been mechanically completed in December 2011.
 
As  part of infrastructure augmentation, HPCL has taken up construction  of  new  LPG bottling plants of capacity 150 TMTPA at Solapur and Bangalore  at  an  estimated cost of  Rs. 82.60 Crore and  Rs. 140.00 Crore  respectively.  Land had been taken over from MIDC in Feb`12 for Solapur plant and 80%  of  the Land had been taken over from KIADB in Feb`12 for Bangalore plant.
 
LPG Safety initiatives
 
HPCL has launched On-line module for monitoring "HSE INDEX" of LPG plants and for prompt reporting, analysis and tracking of accidents involving HP  GAS customers. HPCL has also developed a model Security plan for LPG Plants in line with OSIPP guidelines, based on which all LPG Plants have developed individual security plans.
 
Productivity improvement initiatives
 
- Project Utkarsh - Productivity Improvement Programme at LPG Plants
 
Project  Utkarsh  was  built  on  Participative  Management  wherein  plant  employees at all levels came together as teams with the common objective of  improving  plant  performance.  The Project used a  structured  process  of  finding  causes  through validated data leveraging  technology,  finalizing  solutions  and implementing them in time bound manner through formation  of  Quality Circle Teams.
 
The scheme was piloted at South Central LPG zone and after refinement was rolled  out to other LPG Plants Pan-India. A number of meetings  were  held  with  the  plant employees over a period to learn from  the  experience  of  their colleagues giving rise to collaborative learning and synergistic team  work  for  problem solving. Project Utkarsh provided a platform for plant employees and empowered them to show case their best talent and learning`s.  By bringing changes in systems, the Project teams improved the processes and productivity significantly with focus on Safe Operating   Procedures.  Engagement and empowerment of people was achieved through participation management.  Training program and interactive sessions were conducted at Plants at regular interval for effective implementation of the Project. The improvement in productivity is more than 30% from base level on All India basis.
 
To  sustain  and  increase productivity further  by  utilizing  technology,  infrastructure  facilities, set benchmark in productivity norms,  manpower,  increase  responsibility  and  accountability  on the  part  of  workmen  and  encourage  participation management at floor level, a new LPG  productivity  Incentive  scheme  was  signed  with  the  unions.  This incentive scheme redefined 100% productivity level of LPG plants based on defined number of production of cylinders per shift with increased benchmark of norm by 28% to 48% increase for various types of Plants over old norm.
 
Interactive sessions were conducted for the plant employees for  enabling  smooth  implementation. With respect to new norm, significant increase  in  productivity  was noted in 24 out of 44 LPG plants, which achieved  greater  than  or equal to new 100% productivity norm. The productivity was greater  than or equal to 90% in the remaining 19 LPG plants during 2011-12.
 
Initiatives for increasing customer service
 
- HP Anytime
 
HPCL has extended "HP Anytime", the IVR/SMS based refill booking system to  60  cities in 16 States and 2 UTs covering 1,589 distributorships  and  2.2  Crore customers, representing 61% of the customers holding.
 
- Transparency portal
 
HPCL is the first oil company in the Industry to develop the  "Transparency  portal"  for  providing online information to the Citizens of  India  in  a  transparent  manner.  The  portal provides information  on  the  number  of  subsidized  LPG refills consumed by individual consumers and  has  features  for rating the distributors and logging complaints.
 
- Saksham - Training program for Corpus fund Dealers
 
To  help uplift the management capabilities and customer service  standards  of  corpus  fund  distributors  a  novel  program  branded  "Saksham"   was  conceptualised. During 2011-12, a total 375 distributors were trained under  in this program out of which 155 were SC/ST distributors.
 
- Ji-Haan Samarth, Training Program for LPG Deliverymen
 
To  better equip the LPG delivery men with the requisite skills,  knowledge  and attitudes to perform in their jobs, HPCL is imparting training  through  Ji-Haan  Samarth  to LPG delivery men in 9  different  regional  languages.  During 2011-12, training was imparted to about 11,076 LPG delivery men.  In addition, exclusive training programmes were conducted for 2,150 mechanics.
 
- Samvad, Training Program for LPG Distributorship Staff
 
To equip the LPG Distributorship staff with aspects like customer handling,  grievance redressal and professional conduct, HPCL is providing interactive  Audio-visual  training  to  LPG  Distributorship  staff.  During   2011-12,  training was imparted to about 5,549 LPG Distributorship staff.
 
- Suraksha Sanchetana campaign
 
To create awareness for safety in kitchen especially for the rural women, a  novel campaign combining specifically designed games on kitchen safety  and  staging  a  play to communicate safety messages in an  easy  to  understand  manner  under the brand Suraksha Sanchetana campaign was conducted  at  164  towns spread across 8 states. In addition, a number of innovative campaigns  were  conducted  at  the  field level to spread the  message  of  safety  and  conservation to all LPG users.
 
Aviation
 
During  the year 2011-12, HPCL achieved sales of 768 TMT in  aviation  fuel  sales. During the year, HPCL commissioned 1(one) new ASF at Varanasi taking  the total number to 34 ASFs as of 31.3.2012. Fixed storage facilities  have  been commissioned at
 
Mangalore  and Trichy ASFs in the year. ATF Tank wagon loading facility  at  Mahul  terminal  was  also commissioned during the year.  To  build  robust  operating  practices,  a new Operations Manual and Training  Handbook  have  been  developed  during  the year. Balancing  growth  and  profitability  and  building capabilities will continue to be the focus areas.
 
Natural Gas
 
During 2011-12, HPCL expanded CNG retailing network in Ahmedabad by  adding  5  daughter booster stations taking the total CNG network at  Ahmedabad  to  one mother station and 20 daughter stations. The sourcing of the allocated  gas  from RIL was affected from Sep`11. To maintain gas supply to  all  CNG  Stations, HPCL started sourcing RLNG from GSPL and GAIL.
 
The consortium formed by GSPC, IOCL, HPCL and BPCL has received the  letter  of  Authorization from PNGRB for the three natural gas pipe Lines  notified  by  PNGRB  during 2010-11 i.e., Mallavaram-Bhilwara,  Mehsana-Bathinda  and  Bathinda-Srinagar  gas pipelines with a target commissioning date  of  July  2014.  The  total estimated capital expenditure is  Rs.  13,706  Crore  for  laying  these three pipelines. HPCL Board has approved capital  expenditure  of  Rs. 452 Crore against 11% equity participation.
 
HPCL  has signed a Memorandum of Understanding (MoU) with Greater  Calcutta  Gas  Supply  Corporation Limited (GCGSCL) and GAIL to form  a  Joint  Venture  Company  for  laying, building and operating City  Gas  Distribution  (CGD)  Network in Kolkata. PNGRB authorization for Kolkata CGD is awaited. The JVC  will  be  formed  after receiving necessary authorization  from  PNGRB  for  carrying out the project.
 
HPCL  is operating CGD projects in Andhra Pradesh through  Bhagyanagar  Gas  Ltd and in Madhya Pradesh through Aavantika Gas Ltd, both of them as  Joint  ventures with GAIL and other partners.
 
Operations and Distribution
 
During  the  year  2011-12, HPCL`s POL  installations,  achieved  a  record  throughput of 41 MMT, an increase of 6% over historical for supporting  the  sales performance. This was achieved by effective planning and execution in  the  areas of product procurement, distribution, safe operations,  enhanced  level  of  efficiency  in  operations  leveraging  automation  and   improved  operating processes at POL Terminals and Depots.
 
HPCL  has  adopted  the  Climate Change  Policy  for  ensuring  sustainable  development. During 2011-12, Carbon Footprint assessment under Scope 1, 2 and  3  under  GHG  Protocol Standards was completed for  15  POL  installations  including  recommendations  for  carbon  footprint  reduction.  Rain  water  harvesting  projects have been commissioned at 18 POL installations  and  a  Pilot  project  for  ground water  harvesting  undertaken  at  Secunderabad  Terminal.
 
In  line with the directives of the government for introducing  environment  friendly BS IV grade fuels to more cities/towns, HPCL successfully  changed  over to BS IV grade fuels in 7 additional cities during 2011-12 taking  the  total  number to 20 cities where BS IV grade fuels are being  supplied.  To  reduce the consumption of fossil fuels and improve sustainability the Ethanol  Blending  Programme  was implemented. During 2011-12, HPCL  achieved  34.8%  Ethanol Blended Petrol (EBP) supplies in the 13 states and 3 UTs where  EBP  program has been implemented.
 
HPCL  commenced  product evacuation and marketing from  Guru  Gobind  Singh  Refinery  (GGSR), implemented by HMEL a Joint Venture refinery of  HPCL  at  Bathinda   with   Pipeline  movement  from  Refinery   to   HPCL   Bathinda  Installation.  HMEL  marketing  terminal  was  commissioned  with   product  receipts  from the refinery and road despatches of MTO, SKO and  HSD.  This  will ease supply constraints to markets in North India.
 
* Safety initiatives at POL Installations
 
Safety  remains  the focus area for HPCL. For enhanced  level  of  terminal  safety,  SIL (Safety Integrity Level) study at Visakhapatnam  terminal  was  undertaken  and  completed. In a major initiative, HSE  Index  for  capturing  actual  performance  of  POL  installations  vis-a-vis  comprehensive   HSE  parameters  was  developed and implemented at 25 POL  installations  for  the  first time.
 
- ISRS Safety Certification
 
ISRS  Safety  Certification  is  a  comprehensive  and  integrated   safety  management  evaluation system which indicates implementation of robust  and  world class safety practices. During 2011-12, ISRS Level 6 was  implemented  at  15  major terminals. A total to 60 POL installations have so  far  been  awarded the ISRS Certification.
 
- CCTV Surveillance
 
For enhanced security and surveillance, CCTV has been installed under Phase I at 56 POL installations.
 
- Third party surprise inspections
 
During  2011-12,  to  ensure compliance to parameters on  QandQ,  safety  and statutory norms in the contractor operated tank trucks, surprise Inspection through  independent 3rd party was conducted at 42 major POL  installations for contractor operated tank trucks.
 
- Project Suraksha - Safety training program
 
To  enhance safety, a training program under the name "Suraksha"  has  been conducted  at  95  POL installations across  the  country  covering  16,000 contract workmen, tank truck crew and security personnel.
 
- Fit for the Road - Health checkup campaign
 
To  ensure medical fitness of the Tank Truck (TT) crew, a unique  `Fit  for the Road` health check-up campaign was undertaken covering 4,500 tank truck crew wherein essential health parameters of TT crew was checked and medical consultation provided.
 
* Compliance to M B Lal Committee Recommendations
 
HPCL has been taking a leading role in the implementation of M.  B.  Lal Committee recommendations. Out of the total recommendations of 118 by the Committee, implementation status in respect of 113 recommendations is being regularly monitored by a Joint Implementation Committee, comprising members from Ministry, OISD and OMCs. During the year, HPCL achieved compliance to 79 Recommendations out of the total of 113 recommendations being monitored by the Joint implementation committee. Push Button of Motor Operated Valves (MOVs)  at  21 POL installations have been shifted outside the  dyke  area. Energy efficient lighting systems  have  been  implemented  at  72   POL installations for improving the lighting in operating areas.
 
* Initiatives leveraging technology
 
To ensure access to correct data an online manual "OnD Datamine" containing  comprehensive  infrastructure details of all the 95 POL  installations  was  developed and launched.
 
For  effective utilization of fleet and ensuring transparency in  operation  an  Optimised  Logistics Assistant (OLA) tool was developed  and  piloted  at Secunderabad  terminal  to  enable scientific  and  optimized  scheduling  of product indents.
 
Terminal Automation System (TAS) for accurate deliveries and process controls has  been  implemented at 17 POL installations during the year  taking  the total number to 58 POL installations where TAS has been implemented. Out of the  58  POL installations, at 26 POL installations, Tank  Farm  Management Systems  (TFMS)  have also been integrated with the  ERP  stock  accounting system for real time reports with the highest accuracy.
 
Initiatives for improving operational excellence
 
- Differentiated services to Dealers
 
Differentiated  Services  to Category `A` dealers were  extended  to  1,170  Retail  outlet dealers and 55 Direct Sale Consumers, covering about 30  %  of  retail sales volume.
 
- Project Utkrisht - Improvement in Productivity for POL installations
 
To enhance productivity at POL installations through management-worker co- operation by leveraging Technology, a unique project Utkrisht was  launched  under Participative Management Principle, and successfully piloted at 5 POL  locations during 2011-12.
 
Projects and Pipelines
 
HPCL  pipelines  Mumbai-Pune-Solapur pipeline  (MPSPL),  Visakh-Vijayawada- Secunderabad  pipeline (VVSPL) and Mundra-Delhi pipeline (MDPL) achieved  a  record  combined throughput of 13.62 MMT against the target  throughput  of 11.0  MMT  during the financial year 2011-12. Lube Oil  Pipeline  achieved throughput of 338.7 TMT against the target of 286.7 TMT for the year  2011-12.
 
During  the  year,  a "Security Index" mechanism has  been  formulated  and implemented  to measure the security preparedness of the  pipelines  across all  the 3 operating pipelines. HPCL also introduced centralized toll  free number (1800-180-1276) for all the operating pipelines to enable the public to give alerts on security/ safety incidents in case of emergency along the Right of Use (ROU) of the pipelines.
 
A  number of projects are underway and are being planned to augment  HPCL`s marketing infrastructure. During the year, HPCL has submitted Expression of Interest  (EOI)  to  PNGRB  for the  following  three  (3)  major  pipeline projects.
 
Rewari-Kanpur Pipeline (RKPL)
 
This  project  envisages  laying a 440 km multi-product  white  oil  cross-country  pipeline from existing tap-off station of MDPL at Rewari to a  new terminal at Kanpur via existing depots at Bharatpur and Mathura.
 
* Awa-Salawas Pipeline (ASPL)
 
This  project  envisages laying of a 92 km multi-product white  oil  cross-country pipeline from existing intermediate pumping station of MDPL at  Awa to existing depot at Salawas.
 
* Mangalore-Hassan-Bangalore-Mysore LPG Pipeline (MHBMLPL)
 
This  project  envisages laying a 382 km cross-country  LPG  pipeline  from Mangalore to Bangalore via Hassan along with a 106 km spur line to Mysore.
 
The details of the major projects completed during 2011-12 are described as under:
 
* New East Zone office building at Kolkata
 
A  state of the art office building for East Zone has been completed at  an approximate cost of  Rs. 31.0 Crore. The building comprises a basement  and 6 floors with a total built up area of 50.1 thousand square feet.
 
GGSR product evacuation project
 
HPCL-Mittal  Energy Limited (HMEL) has built the 9 MMTPA Guru Gobind  Singh  Refinery  (GGSR),  a grass root refinery near Bathinda,  Punjab.  Following  cross  country pipelines have been taken up for facilitating evacuation  of MS, HSD, SKO and ATF products to Bathinda and Bahadurgarh, namely:
 
Ramanmandi - Bathinda pipeline
 
A  30  km  long, 10" diameter pipeline from  Bathinda  to  Ramanmandi.  The  Pipeline has been commissioned in Dec`11 at a cost of  Rs. 890.000 Millions.
 
Ramanmandi-Bahadurgarh Pipeline
 
A  250  Km long, 18" diameter pipeline from Ramanmandi to  Bahadurgarhat  a cost of  Rs. 37000.000 Millions. Pre-commissioning activities have been  completed and the pipeline is awaiting receipt of product from GGSR Refinery.
 
* Tikrikalan Terminal
 
Construction  of  a new grass root terminal with  receipt  facilities  from Bahadurgarh-Tikrikalan Pipeline for handling MS, HSD, SKO and Ethanol at  a revised estimated cost of  Rs. 94.69 Crore has been completed mechanically.
 
* Bahadurgarh -Tikrikalan Pipeline
 
The  project includes laying of 2 numbers 12 km long product pipelines  for MS and HSD / SKO of 8" and 10" diameter respectively. These pipelines  have been laid from Bahadurgarh Terminal to Tikrikalan Terminal at an  estimated cost of  Rs. 600.00 Millions. The project has been completed mechanically.
 
* Replacement of 1.71 km pipeline in Mumbai-Pune-Solapur pipeline
 
Replacement  of  1.71  Km pipeline in ghat  section  from  Khopoli  booster station to NRV has been completed in the Mumbai-Pune-Solapur pipeline. This initiative  will  help  to  increase the flow rate by  almost  30%  in  the pipeline.
 
* Additional product tankages at POL Locations
 
Additional  product  tankages  (APT) at the  following  POL  locations  was completed during the year.
 
- Irumpanam: Construction of 2 (two) number above ground storage tanks  for MS/HSD with aggregate capacity of 10 TKL has been completed mechanically at a total cost of Rs. 9.9 Crore.
 
-  Jaipur: Construction of 3 (three) number above ground storage tanks  for MS/HSD with aggregate capacity of 13.5 TKL has been completed  mechanically in Oct`11 at a total cost of Rs. 105.000 Millions.
 
-  Ajmer:  Construction of 4 (four) number above ground storage  tanks  for MS/HSD with aggregate capacity of 16.7 TKL has been completed  mechanically in Mar`12 at a total cost of Rs. 128.000 Milllions.
 
-  Rewari: Construction of 3 (three) number above ground storage tanks  for MS/HSD with aggregate capacity of 10.7 TKL has been completed  mechanically in Mar`12 at a total cost of Rs. 76.000 Millions.
 
-  Bahadurgarh: Construction of 6 (six) number above ground  storage  tanks for   ATF/MS  with  aggregate  capacity  of  45  TKL  has  been   completed mechanically in Sep`11 at a total cost of Rs. 290.000 Millions.
 
Reconstruction of small filling plant shed, Chennai
 
Reconstruction  of small filling plant shed at Chennai with an  approximate area of 14,900 square feet was completed and commissioned during 2011-12 at a cost of Rs. 90.000 Millions.
 
Tank truck Gantry at Kolkata, Paradeep and Raipur Terminals
 
Tank truck Gantry at following POL installations were completed during  the year.
 
Kolkata I terminal: A 2 x 8 bay tank truck gantry along with automation was commissioned at an approximate cost of  Rs. 26.0 Crore.
 
Paradeep  Terminal:  A 1 x 4 bay tank truck gantry was commissioned  at  an approximate cost of  Rs. 35.000 Millions.
 
Raipur Depot: A 1 x 8 bay tank truck gantry along with automation has been mechanically completed at an approximate cost of Rs. 100.000 Millions.
 
In addition to the above completed projects, a number of projects are under construction to strengthen the distribution infrastructure to cater to  the increasing  demand of POL products. The details of major projects  and  the project status are described as under:
 
White Oil Terminal at Visakhapatnam
 
The  While Oil Terminal at Visakhapatnam will be the first fully  automated white  oil terminal including Tank wagon gantry. The total project cost  is expected  to be  Rs. 4650.000 Millions with total tankage capacity of 168 TKL.  The terminal  can receive product either from refinery or coastal  inputs  from jetty. The infrastructure contains provision for Tank truck loading,  wagon loading  and shipping from this installation.The terminal was  mechanically completed  in  Dec`11.  OISD  inspection  is  complete  and  compliance  of recommendations  is under progress. Tank Wagon Gantry work is in  progress. Commissioning activities are planned during the fiscal year 2012-13.
 
LPG Terminal and Bottling Plant at Visakhapatnam
 
A  new LPG Terminal and Bottling Plant has been constructed at  Visakhapatnam and shall be the nerve center for LPG distribution from Visakhapatnam.  The storage  capacity  is  4.4  TMT  which is  the  largest  capacity  in  HPCL Marketing.  The  total project cost is  Rs. 2500.000 Millions. The plant  has  been commissioned in Mar`12 and dispatches have commenced.
 
White Oil Terminal at Ennore, Tamil Nadu
 
A  new green field White Oil Terminal is being constructed at Ennore  which is located on the outskirts of the Chennai City for relocating the existing Chennai terminal. The project is to provide Tankage facility of 140 TKL for storage and dispatch of MS, HSD, SKO and ATF. The terminal was mechanically completed  in  Dec`11. OISD and pre-commissioning  activities  are  planned during  the fiscal year 2012-13. The total project cost is expected  to  be  Rs. 3740.000 Millions.
 
New Depot at Bokaro
 
Construction of new depot for handling black oil and white oil products  is in progress at a total estimated cost of  Rs. 18800.000 Millions.
 
New POL Depot at Bihta (Near Patna)
 
Construction of a new depot for handling White Oil (MS, HSD and SKO) and  Black Oil (FO and Bitumen) including wagon unloading siding at an estimated cost of Rs.  1425.000  Millions is under progress. The Project is in advanced  stage  of completion and is expected to be commissioned in 2012-13.
 
New Depot at Kadapa
 
Construction  for  resitement  of Kadapa depot is in progress  at  a  total estimated project cost of  Rs. 2004.000 Millions. The new depot will handle  both black oil and white oil products.
 
Revamping of existing terminals
 
Revamping of existing terminals at Budge-Budge, Paradeep and Loni are being carried out at a total estimated cost of Rs. 2362.000 Millions.
 
Other infrastructure augmentation
 
Construction of new 1 x 8 Bay tank truck Gantry is in progress at  Bhatinda  at a total project cost of  Rs. 245.000 Millions. Construction of additional  1x4  Bay Tank truck Gantry each at Ajmer and Jaipur and 1x8 Bay Tank truck  Gantry  at  Akola,  1x6 Bay Tank truck Gantry at Amousi and 1x8 Bay and1x6  Bay  Tank  truck  Gantries  at Aonla are in progress at a total  approximate  cost  of  Rs.737.000 Millions.
 
INFORMATION SYSTEMS
 
Information  systems  are being used to support all business  processes  of  HPCL.  All business transactions are carried out in Enterprise  Resource  Planning (ERP) system and various bolt on applications to the ERP system. Due to use of these systems, HPCL is able to reduce the time taken for closing the quarterly, half yearly and annual accounts. To ensure transparency and visibility of information across the Corporation, end-to-end processes have been configured  in  these systems for reducing cycle  times  and  provide better management control.
 
Based on the foundation of ERP system, a multitude of IT enabled solutions have   been developed  and  implemented  to  help  managers  do  their   job effectively.  ERP  platform  has made possible  development  of  real  time interfaces  to  the  IT enabled systems  with  various  business  partners. Various new  initiatives  have  been  implemented  and  sustained  efforts continue to bring in more of these to reality.

 

Indent Management System (IMS)
 
To automate indenting process, HPCL has implemented an Indent  Management System (IMS). Their dealers and customers are now able to send indents by  SMS. Facility for  placing indents through web-based customer portal  has  also 
 
been made available to their institutional customers. The system has  enabled stage-wise  tracking of indents. This has facilitated effective planning, monitoring and execution of indents.
 
e-banking
 
e-banking  initiative  has been expanded to cover all payments  to  outside parties  such  as vendors and contractors and even HPCL employees.  HPCL  has tied up with multiple banks to offer the service to the various  categories of payees.
 
Payment  information flows seamlessly as ERP server  communicates  directly with the bank servers without any manual intervention. During 2011-12, 97% of  payment made to the vendors, other than that for crude  purchases,  has been made by electronic fund transfer.
 
During the year 2011-12, HPCL has achieved 92% of on-line fund transfer  in Sales process compared to 91% in the previous year. On-line fund  transfers now exceed  Rs. 120000.000 Millions a month compared to  Rs. 100000.000 Millions a  month in the previous year. The reconciliation process is also totally automated. This  initiative has enabled HPCL faster collection and better management  of funds.

 

e-procurement
 
In  the  area of procurement, the platform provided by the  ERP  system  is being used for bringing in transparency. HPCL has implemented e-procurement process  wherein tenders are floated on-line and the responses  are  obtained from  the vendors also on-line using digital signatures. Tender  opening  and evaluation is being done in this application and order is placed through  the ERP system.
 
Portals and workflow applications
 
A customer portal is being maintained which provides complete visibility to the  direct  customers, dealers and distributors on their  transactions  with HPCL.  Similarly  a  portal for the transporters  enables  them  to  access information pertaining to their transactions.
 
A number of work flow based applications have been implemented for employee self-service  to speed up the process of benefits  administration.  Capital budgeting  process  for  Non-plan projects as  well  as  revenue  budgeting process has been captured in the system through workflow based application. Two  (2) unique initiatives "Samavesh" meaning `inclusion` and  "Santushti" meaning  `complete  satisfaction`  have been implemented.  Both  these  are electronic  work-flow processes and integrate with ERP as well as  other  on-line  systems. Through these systems, the induction process and  the  final settlement process for separating employees are e-enabled.
 
GIS Maps based application for Retail outlets
 
HPCL  has  rolled  out a GIS Maps based  application  for  retail  outlets. Majority  of  the  retail outlets have been plotted on the  map.  This  has enabled  to  set default route from supply POL  installation  and  accurately measure  distance  which  in turn has resulted  in  improving  accuracy  of calculation of freight payments.
 
Communication Infrastructure and Security

 

HPCL has taken a number of steps to ensure security of information systems. Robust  authentication methodology has enabled us to secure  their  corporate network  from unauthorized access. Security Operations center has been  set up for continuous monitoring of systems for any security related incidents. Identity management system has been implemented. To enforce segregation  of duties, implementation of GRC (Governance, Risk and Compliance) solution  for ERP  systems  has  been  started.  Systems  Management  Solution  has  been implemented for ensuring all PCs and laptops are patched with latest security patches to protect them.
 
HPCL  continuously  endeavours  to leverage  capabilities  and  upgrade  IT systems  with  the  introduction  of  the  new  technologies  and  evolving technologies for improving in-house processes and capabilities.
 
 
AWARDS RECEIVED
 
*   SCOPE   Meritorious  Award  for  Corporate  Social   Responsibility   and Responsiveness Commendation Certificate for the year 2010-11.
 
* Indira Gandhi Rajbhasha Puraskar for the fourth successive time for  best official  language implementation among Public Sector Enterprises in  India on September 14th, 2011.
 
*  Golden  Peacock  Excellence  Award 2011 for Best  HR  practices  by  the Distinguished Fellow of Institute of Directors for significant contribution to business and society in Aug`11.
 
* Reader`s Digest Trusted Brand Award Gold Award 2011 for Club HP brand for the sixth consecutive year.
 
* Best Marketing campaign Award atAsia Retail Congress 2011.
 
* Brand Leadership Award 2011 in Service/Hospitality Industry at the  World Brand Congress 2011 in Dec`11.
 
* Golden Peacock Award 2011 for CSR at the 6th international conference  on CSR in Apr`11.
 
*  MDPL received the "Golden Peacock Innovation Management Award"  for  the year 2011.
 
* ASIA`s best CSR Practices Award 2011 at Singapore in the category of "The Best Corporate Social Responsibility Practice (Overall)".
 
*  Award  for  "Best Loyalty program" and "Brand excellence  in  Service  / hospitality" at the CMO Asia Awards 2011 at Singapore.
 
*  Mumbai Refinery received "Maharashtra Safety Award 2010"  for  achieving longest  accident  free period from National  Safety  Council,  Maharashtra Chapter on September 24th, 2011.
 
*  Visakh refinery was conferred with TOLIC award (Rajbhasha Puraskar)  for the year in 2011-12.
 
*  Conferred  "Forecourt Retailer of the Year" at the  Star  RetailerAwards 2011 in Dec`11.
 
*  HPCL  bagged the Star News "Blue Dart World CSR Day  Global  CSR  Awards powered  by  Star  News" in two categories, viz.  "Best  Overall  Corporate Social  Responsibility  Performance" and "Corporate  Social  Responsibility award in the sector of Education".
 
*  HPCL  received  the  CSR award from  Subir  Raha  Centre  for  Corporate Governance  in  4 categories, viz. "Support and Improvement in  Quality  of Education",  "Concern  for  Health",  "Community  Development"  and   "Best Environmental Excellence".
 
*  Santacruz  ASF was awarded "Certificate of Merit"  for  achieving  "Zero Accident Frequency Rate" for the third consecutive year under  "Maharashtra Safety Award Competition -2010".
 
*  HPCL  received  the "CII Environmental Best Practices  Award  2012"  for Vapour Recovery System commissioned at Loni Terminal.
 
*  MDPL  received  OISD  "1st rank in Cross  Country  Pipelines  -  Product Category"  Safety  Award for the year 2010-11, consecutively  for  the  3rd year.
 
*  MPSPL  was awarded "Meritorious Performance in  Industrial  Safety"  for Trombay   (consecutively   for  the  5th  year),   Khopoli   and   Talegaon (consecutively  for  the 4th year) for the year 2010 from  National  Safety Council, Maharashtra Chapter.
 
* National Award for "Significant Achievements in Employee Relations by the Employee Federation of India (EFI) in Oct`11.
 
* Awarded World Star 2011 for 1 litre size Metalized Rolla-pack  introduced for LG.
 
*  Bagged  IFCA Star Award 2011 for introducing  IML  (In-mould  Labelling) technology  in  Lube Industry for HP Milcy Turbo pack and  for  adopting  HTL (Heat Transfer Label) for pails, first in Lube Oil Industry.
 
* Ajmer LPG Plant was declared silver award winner in 12th annual Greentech Environment  Award  in Petroleum Sector held at Srinagar on  October  20th, 2011   for  the  3rd  consecutive  year  for  outstanding  achievement   in environment Management.
 
OUTLOOK
 
The  Indian economy faces moderation of growth rate coupled with  high  and persistent inflation. The reasons are varied and include among others slow-down  in investment, supply bottlenecks and rising fiscal deficit. In  this environment, Indian economy is projected to grow by about 7% in 2012-13.
 
The  external environment is not encouraging. IMF is projecting a  drop  in global growth from about 4.0% in 2011 to about 3.5% percent in 2012 because of weak activity during the second half of 2011 and the first half of 2012. The  reacceleration  of activity during the course of 2012 is  expected  to return  global  growth  to  about 4.0% in 2013.  Global  economy  is  still fragile.  Immediate  concerns relate to escalation of Eurozone  crisis  and resultant  flight  from risk as well as higher oil  prices  resulting  from geopolitical   uncertainty.   India  is  vulnerable  to   global   economic uncertainty in view of high current account deficit.
 
JOINT VENTURES
 
The Joint Venture companies and subsidiaries of HPCL have  performed  well during the year 2011-12.
 
HPCL-Mittal Energy Limited (HMEL)
 
HPCL-Mittal  Energy  Limited  (HMEL)  is a  joint  venture  between  Hindustan Petroleum  Corporation  Limited and Mittal Energy Investments  Pte  Limited (MEI),  Singapore,  an L N Mittal Group Company, for  implementation  of  a green  field  refinery project of 9 MMTPA capacity called the  Guru  Gobind Singh  Refinery  (GGSR) Project at Bathinda in the State  of  Punjab.  Both partners hold 49% equity stake in HMEL and balance 2% is held by financial institutions i.e. IFCI Limited and State Bank of India.
 
GGSR began refining crude oil in Aug`11 and achieved commissioning of the entire project in Feb`12. It is a State of the Art refinery, incorporating latest technology. The refinery has high Nelson complexity index which will enable maximizing value added products even from heavy / sour crudes.  GGSR is a zero bottom refinery incorporating features related to  liquid  and solid waste management.
 
A green belt around the refinery has been developed. Various environmental protection measures have been incorporated in the design of all facilities viz. Sulphur Recovery Units, Hydro-treaters, Desulphurisation Units, State-of-the-art Effluent Treatment Plants, Vapour Recovery Systems and Low NOx Burners in the furnaces.
 
Single Point Mooring (SPM), Crude Oil Terminal (COT) and the 1,017 km Crude Oil  Pipeline (COPL) passing through the States of Gujarat,  Rajasthan  and Haryana  has  been  set up by HMEL`s wholly  owned  subsidiary  HPCL-Mittal Pipelines Limited (HMPL). The import facility with Single Buoy Mooring,  is capable of berthing Very Large Crude Carriers (VLCCs) thus optimizing crude oil  transportation cost. The world class Crude Oil Terminal is capable of blending different crude which will enable procurement  of  variety  of crudes.
 
The refinery was dedicated to the Nation by Dr. Manmohan Singh, Hon`ble Prime Minister of India on April 28th, 2012.
 
HPCL Biofuels Limited (HBL)
 
In  line with Government`s policy for blending of ethanol in petrol, a  new wholly owned subsidiary company HPCL Biofuels Limited (HBL) was incorporated on October 16th, 2009 to produce ethanol.
 
Integrated plants with cane crushing capacity of 3,500 TCD with Distillery of  60  KLPD for manufacturing Ethanol and co-gen plant of 20  MW  each  at Sugauli  and Lauriya in East and West Champaran Districts in the  State  of 
Bihar have been set up.
 
During  the crushing season 2011-12, both the plants were commissioned  and started   commercial  production  of  sugar,  ethanol  and   power.   Plant performance had been satisfactory and accident free in the first year  of commercial operations.
 
CREDA-HPCL Biofuel Limited (CHBL)
 
CREDA-HPCL Biofuel Limited (CHBL) was incorporated on October 14th, 2008 as  a subsidiary  company  with  equity shareholding of 74% by HPCL  and  26%  by Chhattisgarh  State Renewable Energy Development Agency (CREDA) to  venture into  alternate fuels. CHBL would undertake cultivation of Jatropha plant, an energy crop used for production of bio-diesel, on 15,000 hectares of land leased by the Government of Chhattisgarh.
 
Production of bio-diesel and its blending with normal diesel will help in meeting domestic demand.  HPCL shall have exclusive rights over the producing and marketing of biodiesel and bi-products from the produce.
 
CHBL has started acquisition of land for cultivation of jatropha and has acquired 6,327 hectares of land as on March 31st, 2012. Some land is having already standing plantations. Maintenance of  jatropha  seedlings/nursery plants  is  currently  being  carried  out  on  1,710  hectares  of   land. Acquisition of balance land is in progress and the plantation on the same will be undertaken in a phased manner. During 2011-12, CHBL carried out crushing of jatropha seeds on a trial basis.
 
South Asia LPG Company Private Limited (SALPG)
 
South Asia LPG Company Private Limited (SALPG), a Joint Venture Company with M/s.  Total Gas  and  Power  India (a wholly owned subsidiary  of  Total,  France)  has commissioned  an  underground  Cavern  Storage  of  60  TMT  capacity   and associated  receiving  and despatch facilities at Visakhapatnam  in  December 2007.  SALPG Cavern is the first of its kind in South and South East  Asia and ranks among the deepest Caverns in the World. The commercial operations commenced in January 2008.
 
During 2011-12, SALPG received 861 TMT of LPG into the Cavern through 53 Vessels including 38 Very Large Gas Carriers (VLGCs). This has resulted into easing-out the product movement constraints across the east coast and ensured smooth  availability of LPG in the supply and  surrounding  zones. Also,  propane-butane  blender  at  the  Cavern  Terminal  has  helped  Oil Marketing  Companies  to  maximise the propane  inputs  into  Visakhapatnam considering  the  limited  availability of butane and  price  advantage  of propane in the international market.
 
SALPG achieved 6% higher turnover at  Rs. 145.63 Crore  and  15%  higher profits (PAT) at  Rs. 737.600 Millions during 2011-12 compared to previous year.
 
The Cavern cum Marine Terminal achieved 1,155,718 Safe Man-hours  since commencement  of commercial operations in January 2008 without a Lost  Time Accident. SALPG won British Safety Council International Safety Award 2012 with distinction and secured second place in medium scale category in the EHS awards from Confederation of Indian Industry (CII) during 2012-13.
 
Hindustan Colas Limited (HINCOL)
 
Hindustan  Colas Limited (HINCOL) is a joint venture company promoted by  HPCL and Colas S.A. of France and was incorporated on July 17, 1995. HINCOL  has grown  steadily  over  the years to establish itself as  the  clear  market leader  in  manufacturing  and marketing  of  Bitumen  Emulsions,  Modified Bitumen and other value added Bituminous products.
 
HINCOL  presently  has eight (8) manufacturing plants across  India  HINCOL products find extensive use in the road construction industry.
 
During 2011-12, HINCOL has developed new formulations of bitumen (VG10  and VG30).  HINCOL has also started manufacturing of Road Bond at Thane,  Vashi and Savli Plant. A new efficient automatic system of drum sealing has been started at Bahadurgarh. A "Dynamic Shear Rheometer" installed to  evaluate rutting  resistance and fatigue resistance properties of bituminous  binder and to grade the binders as per Performance Grading Standard. HINCOL is the first non-R and D institution to have installed this `State of  Art`  testing equipment.  HINCOL implemented Emulfix process at all the  plants  and commenced Emulsion sales from Haldia Plant.
 
HINCOL recorded a production of 146.38 TMT with turnover of   Rs.4224.300 Millions and earned net profit (PAT) of Rs.264.400 Millions.  HINCOL declared dividend of 125% for the year 2010-11.
 
Prize Petroleum Company Limited (PPCL)
 
HPCL, in partnership with ICICI and HDFC, had formed a Joint Venture E and  P Company  called  Prize Petroleum Company Limited (PPCL)  for  participating  in exploration and production of hydrocarbons on October 28th, 1998. Over  the years, Prize Petroleum Company Limited (PPCL) has built up a portfolio of 2 producing fields and one exploration block.
 
During  2011-12,  HPCL acquired the entire equity  shareholdings  of  ICICI Group  and  HDFC in PPCL and thus PPCL became wholly  owned  subsidiary  of HPCL.
 
PPCL  had  signed  Service Contract with ONGC for  development  of  Hirapur marginal field in Cambay Basin with 50% holding in the consortium. PPCL  is operator  for  the  field.  During 2011-12, 43,082  barrels  of  crude  oil (cumulative  production  of  283,150  barrels  since  inception)  has  been produced.  PPCL had also entered into a Production Sharing  Contract  (PSC) with  50%  Participating  Interest inSanganpur Block  as  Joint  Operator. During  2011-12, 506 barrels of crude oil (cumulative production of  12,248 barrels   from  inception)  has  been  produced.  The  crude  produced   is benchmarked to Bonny light crude.
 
The company was awarded South Rewa Block in Madhya Pradesh under NELP-VI which  is  the biggest onshore exploration Block with 13,277 sq.  km area. PPCL  is  the  Operator  for this block.  During  2011-12,  processing  and interpretation  of 2D (2,050.68 lkm of full fold) and 3D (303.96  sq.km  of full  fold)  seismic  data  has been completed.  Basis  this,  three  major prospects  were  identified  for drilling of wells,  as  committed  in  the Minimum  Work Program. API of Geochemical Survey awarded to NGRI has also been completed.  The  result of the survey is used for  analysis  of  soil samples to identify concentration and or presence of light hydrocarbons  in the block.
 
PPCL  bagged onshore exploration block (401sq. kms area) in  Tripura  along with  consortium partner ABG Energy Limited (ABG) in NELP IX. PPCL  is  the operator  for this block with a participating interest of 20% and  will  be "carried" during the initial exploration phase. In the event of  commercial discovery and consortium entering the Development phase, PPCL will pay only 10%  for  the  past  cost (which will be  recovered  by  ABG  from  `profit petroleum`) and will continue to hold 20% participating interest.
 
Petronet MHB Limited (PMHBL)
 
HPCL, along with Petronet India Limited (PIL) promoted Petronet MHB Limited (PMHBL) for construction of Mangalore-Hassan- Bangalore Pipeline at a  cost of  Rs. 667 Crore with debt equity ratio of 3:1. The joint venture  company was  incorporated on July 31, 1998. Initially PIL and HPCL  each  contributed 26%  towards equity. ONGC joined as a strategic partner in PMHBL by  taking 23%  equity  in April 2003. Post debt restructuring of  PMHBL,  the  equity holding  of HPCL and ONGC increased to 28.766% each and PIL`s equity  holding decreased to 7.90%.The Pipeline is meeting the transportation needs between Mangalore-Hassan-Bangalore.
 
During  2011-12,  PMHBL achieved 7.57% higher throughput at  2.771  MMT  as compared  to 2.576 MMT in 2010-11. Revenue generation was higher by  10.16% at  Rs. 866.400 Millions as compared to  Rs. 86.500 Millions in the previous year.
 
PMHBL  Integrated  Management System is certified by DNV  covering  Quality Management System-ISO-9001-2008, Environmental Management System-ISO-14001-2004 and OHSAS-18001-2007.
 
GPRS  based Security Tracking System (STS) was commissioned for  monitoring movement  of  security line walker`s movement on PMHBL Right of  Use  (ROU) land.  Telecom System up-gradation and CCTV camera installation were  carried out at PMHBL Main Stations.
 
Bhagyanagar Gas Limited (BGL)
 
Bhagyanagar  Gas  Limited (BGL) was incorporated on August 22,  2003  as  a Joint  Venture  Company by GAIL (India) Ltd and HPCL for  distribution  and marketing  of environmental friendly fuels (green fuels) viz. CNG and  Auto LPG  for  use in the transportation, domestic,  commercial  and  industrial sectors, in the state ofAndhra Pradesh.
 
BGL  has  been  authorized  to set up City  Gas  Distribution  networks  in Hyderabad, Vijayawada and Kakinada by MOPandNG and PNGRB.
 
During 2011-12, BGL commissioned Mother Station at Shamirpet, Hyderabad and Vakalpudi, Kakinada.  BGL also commissioned one online  CNG  stations  at APSRTC depot, two Daughter booster CNG stations in APSRTC depotsat Hakimpet and Cantonments and 4 CNG DBS retail stations in Hyderabad /  Secunderabad.  Project work in respect of three CGD Projects at Hyderabad, Vijayawada and Kakinada are in progress. BGL has started supplying PNG to households  at Shamirpet and Medchel in Hyderabad. For Industrial and Commercial PNG, BGL has signed Heads of Agreement with various industrial and commercial units for  supply  to  the tune of 0.376 MMSCMD in Hyderabad and  0.2  MMSCMD  in Kakinada.
 
Aavantika Gas Limited (AGL)
 
Aavantika  Gas  Limited (AGL) was incorporated on June 07,  2006  as  a  Joint Venture  Company  by  GAIL  and HPCL  for  distribution  and  marketing  of environmental friendly fuels (green fuels) viz. CNG and Auto LPG for use in the  transportation,  domestic, commercial and industrial  sectors  in  the State of Madhya Pradesh.
 
AGL has been authorized by MOP and NG as well as PNGRB for carrying City  Gas Distribution  (CGD) operations at Indore, Ujjain and Gwalior.  The company commenced commercial operations in the year 2008.
 
During 2011-12, the company commissioned one online station at Gwalior marking the starting of business operations at Gwalior. With this AGL is now present in all three cities viz. Indore, Ujjain and Gwalior, for which AGL has been  authorised. AGL also commissioned one online station at Indore. AGL now operates 11 CNG stations - 7 daughter stations (5 at Indore and 2 at Ujjain), 3 online stations (2 at Indore and 1 at Gwalior) and 1 mother station at Indore.
 
AGL also started supplying PNG to domestic customers from Dec`11. With this AGL  is  now  present  in  all  the  4  business  segments  viz.  CNG   for Transportation sector  and  PNG for industrial,  commercial  and  domestic sectors.  Work  for construction of Mother Station at  Gwalior  is  nearing completion  and is expected to be commissioned by May/Jun`12. During 2011-12, AGL achieved turnover of Rs. 547.300 Millions registering a growth of 141  % over previous year.
 
MANGALORE REFINERY AND PETROCHEMICALS LIMITED (MRPL)
 
HPCL holds an equity of 16.95% in the 9 MMTPA Mangalore Refinery and Petrochemicals Ltd. (MRPL). HPCL and MRPL have been exchanging intermediate process streams between their refineries to supplement efforts to meet new environmental norms in respect of products like MS and HSD on mutually agreed terms.
MRPL declared a dividend of 10% for 2011-12. 
 

 

PRESS RELEASES:

 

HPCL WINS INDIRA GANDHI RAJBHASHA PURASKAR

 

New Delhi

 

HPCL has been conferred with Indira Gandhi Rajbhasha Puraskar [Third Prize] by Govt. of India, Ministry of Home Affairs - Rajbhasha Vibhag for the year 2010-11 under PSU category for excellent performance in “B” Region.This Award has been Conferred on HPCL for the fifth time in a row.

 

Seen in the photo His Excellency, President of India, Shri Pranab Mukherjee seen presenting the Award to C and MD of HPCL Shri S.Roy Choudhury, in the presence of Hon’ble Minister of Home Affairs Shri Sushil Kumar Shinde

 

 

HPCL wins award at Petrotech 2012

New Delhi

HPCL has won the Best Overall Display Runners Up Trophy for the Exhibition Stall at the recently conclude Petrotech 2012 Exhibition at New Delhi. “Sustainability for a Secure Future” was the theme.

Petrotech 2012, the 10th International Oil and Gas Conference and Exhibition, was held at New Delhi. The Event had the participation of 396 exhibitors including 219 overseas pavilions and more than 4500 delegates attended the Conference.

The award for Petrotech 2012 Exhibition Stall was received by, Shri B. K. Namdeo ED – IT and S, , Shri H. Kumar ED – CS and P and Shri S. T. Sathiavageeswaran ED – IS, along with other colleagues at a grand function organized at New Delhi.

FIXED ASSETS:

 

v      Tangible Assets

·         Land – Freehold

·         Buildings

·         Plant and Equipment

·         Furniture and Fixtures

·         Transport Equipment

·         Office Equipment

·         Roads and Culverts

·         Leasehold Property – Land

·         Railway Siding and Rolling Stock

·         Unallocated Capital Expenditure on Land Development

·         Assets held for Disposal

v      Intangible Assets

·         Rights of Way

·         Technical/ Process Licenses

·         Software

CMT REPORT (Corruption, Money Laundering and Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No 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.54.25

UK Pound

1

Rs.87.00

Euro

1

Rs.69.83

 

 

INFORMATION DETAILS

 

Report Prepared by :

MRI

 

 

SCORE and RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

9

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

9

--CREDIT LINES

1~10

8

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--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

 

78

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

 

NB

 

NEW BUSINESS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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