MIRA
INFORM REPORT
|
Report Date : |
20.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
BG EXPLORATION AND PRODUCTION INDIA LIMITED (w.e.f. 15.02.2002) |
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|
Formerly Known
As : |
ENRON OIL AND GAS
INDIA LIMITED |
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Liasion Office
/ Project Office : |
B.G. House, Lake
Boulevard Road, Hiranandani Business Park, Powai, Mumbai – 400 076,
Maharashtra |
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Country : |
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Financials (as on) : |
31.03.2012 |
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Date of
Incorporation : |
02.05.1994 |
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Capital Investment / Paid-up Capital : |
Rs.20588.805 millions |
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FCRN : |
F01316 |
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TAN No.: (Tax
Deduction & Collection Account No.) |
MUMB12758E |
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PAN No.: (Permanent
Account No.) |
AAACE4569K |
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Legal Form : |
Foreign
Registered Company |
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|
Line of
Business : |
The company is in
Exploration, Production, Development and Supply of existing and emerging gas
markets around the world. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 82355000 |
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Status : |
Good |
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Payment Behaviour : |
Sometimes Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of “BG Mumbai Holdings Limited, Mauritius”. It is a well established company having a good track record.
Financially company has performed well. Performance capability is high. Trade relations are reported to be fair. Business is active. Payments
are reported to be sometimes slow. The company can be considered for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
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
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Adam Hiller |
|
Designation : |
Director |
|
Address : |
2901, Evita (29th
Floor), Hiranandani Gardens, Powai, Mumbai - 400 076, Maharashtra, India |
|
Date of Appointment: |
04.01.2012 |
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|
|
|
Name : |
Mr. Anthony Barker |
|
Designation : |
Director |
|
Address : |
238 Orchard
Boulevard, #19-07, The Orchard Residence, Singapore |
|
Date of Appointment : |
25.05.2012 |
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|
|
|
Name : |
Mr. Shaleen Sharma |
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Designation : |
Director |
|
Address : |
B.G. House, Lake
Boulevard Road, Hiranandani Business Park, Powai, Mumbai – 400 076,
Maharashtra, India |
|
Date of Appointment : |
01.07.2012 |
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|
Name : |
Ms. Dominique Van Den Berg |
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Designation : |
Director |
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Address : |
6 Grove Drive,
Singapore 279047 |
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Date of Appointment : |
16.07.2012 |
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|
|
|
Name : |
Mr. Sandeep
Mahawar |
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Designation : |
Director |
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Address : |
35 Burgundy
Drive, 658835, Singapore |
|
Date of Appointment : |
05.07.2010 |
|
|
|
|
Name : |
Matthew Tan |
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Designation : |
Director |
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Address : |
253A Pasir
Panjang Road, Parc Imperial #01-11, 117422, Singapore |
|
Date of Appointment : |
05.07.2010 |
BUSINESS DETAILS
|
Line of Business : |
The company is in
Exploration, Production, Development and Supply of existing and emerging gas
markets around the world. |
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Product: |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Actual
Production |
|
PANNA AND MUKTA
FIELDS |
|
|
|
- Crude Oil |
Metic Tons (MT) |
1212983 |
|
- Associated Natural Gas (ANG) |
MMBtu* |
59033294 |
|
Mid and South
Tapti Fields |
|
|
|
- Mid and South Tapti Field |
MMBtu* |
98124201 |
|
- Condensate |
Metic Tons (MT) |
149577 |
Notes:
*MMBtu - Million British thermal
units
With effect from 1st January 2007, the JV has agreed to pay the GOI its share of Profit Petroleum in cash, based on various communications the last being DGH/PSC/PM and T/Prof.Pet/2006 dated 7th December 2006. Prior to this date the JV invoiced on behalf of the government and remitted their share of Profit Petroleum. This change in procedure is without prejudice to the rights of the constituents of the Contractor under the PSC and has been agreed by the DGH. Payments made to the GOI are disclosed under 'Profit Petroleum to Government of India' in the Profit and Loss Account.
Production of Oil and Gas from Panna-Mukta fields was shutdown from 20th July 2010 to 29th October 2010 due to a leakage from the subsea hose assembly at the Panna Single Buoy Moring (SBM).
During the year IOC and GAIL had withheld Rs.1063.926 Millions on the instruction received from GOI.
GENERAL INFORMATION
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No. of Employees: |
Not Available |
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Bankers : |
·
·
JP Morgan Chase Bank of |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Address : |
Mumbai, Maharashtra, India |
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Ultimate Holding Company: |
BG Group Plc - England |
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Holding Company: |
BG Mumbai Holdings Limited - Mauritius |
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Associate Companies : |
·
BG International Limited ·
BG Asia Pacific Holdings Pte. Limited, Singapore · BG India Energy Private Limited ·
BG India Energy Solutions Private Limited ·
BG India Energy Services Private Limited ·
BG LNG Regas India Private Limited ·
Gujarat Gas Company Limited ·
Mahanagar Gas Limited |
CAPITAL STRUCTURE
HEAD OFFICE
ACCOUNT:
|
Particulars |
31.03.2012 (Rs.
in millions) |
31.03.2011 (Rs.
in millions) |
|
At the beginning of the year |
23593.098 |
25833.855 |
|
Remittances Received from Head Office towards cash call |
13589.484 |
15494.263 |
|
Interest Expenses |
1849.169 |
1707.883 |
|
Remittances made to head office |
(23254.145) |
(19204.401) |
|
Interest Paid |
(1672.482) |
(1007.405) |
|
Exchange (Gain) / Loss (net) |
3532.056 |
(259.752) |
|
Total |
17637.180 |
22564.443 |
|
|
|
|
|
Profit for the year |
2951.625 |
1028.655 |
|
|
|
|
|
|
20588.805 |
23593.098 |
a) Head Office account includes cumulative
remittances received from head office towards loan aggregating Rupees 27455.914
millions (Previous Year Rupees 23548.538 millions) and interest payable
amounting to Rupees 2011.667 millions (Previous Year Rupees 1689.605 millions)]
drawdown by BG Exploration and Production India Limited - Indian Operations
(Project Office) as at March 31, 2012, based on the loan facility agreement
dated May 31, 2005 and additional loan facility agreement dated October 21,
2009 between BG Asia Pacific Pte. Limited, Singapore and BG Exploration and
Production India Limited, Cayman Islands (Head Office) for total unsecured loan
facility of USD 800 million to be utilized for capital expenditure and general
requirements of business of the Project office. The termination date of the
loan agreement is May 31, 2020.
b) Head Office account includes interest expense of
Rupees 1849.169 millions (Previous Year Rupees 1707.883 millions) payable
within one year.
FINANCIAL DATA
[all figures are
in Rupees Millions]
Indian Operations
of BG Exploration and Production India Limited (a Company Incorporated in
Cayman Islands with Limited Liability) – “the company”
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Head Office Account |
20588.805 |
23593.098 |
25833.855 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
20588.805 |
23593.098 |
25833.855 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
4412.282 |
5810.307 |
7336.883 |
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|
|
|
|
|
|
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TOTAL |
25001.087 |
29403.405 |
33170.738 |
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
21722.667 |
27064.426 |
32632.461 |
|
|
Capital work-in-progress |
3764.317 |
3847.795 |
3299.521 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
829.040
|
755.803
|
746.405
|
|
|
Sundry Debtors |
3854.868
|
3831.337
|
1511.842
|
|
|
Cash & Bank Balances |
267.944
|
929.929
|
3140.275
|
|
|
Other Current Assets |
2204.213
|
2117.033
|
0.000
|
|
|
Loans & Advances |
9219.185
|
7211.684
|
8865.024
|
|
Total
Current Assets |
16375.250
|
14845.786
|
14263.546
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
9191.656
|
9744.326
|
10423.452
|
|
|
Other Current Liabilities |
1285.045
|
987.363
|
1343.507
|
|
|
Provisions |
6384.446
|
5622.913
|
5257.831
|
|
Total
Current Liabilities |
16861.147
|
16354.602
|
17024.790
|
|
|
Net Current Assets |
(485.897)
|
(1508.816)
|
(2761.244)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
25001.087 |
29403.405 |
33170.738 |
|
Indian Operations
of BG Exploration and Production India Limited (a Company Incorporated in
Cayman Islands with Limited Liability) – “the company”
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
29409.972 |
23679.016 |
28826.423 |
|
|
|
Other Income |
1137.069 |
373.050 |
2994.372 |
|
|
|
Total Income (A) |
30547.041 |
24052.066 |
31820.795 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating Expenses |
8410.144 |
|
11642.138 |
|
|
|
Employee Benefit Expenses |
1032.600 |
727.977 |
|
|
|
|
Other Expenses |
8633.865 |
4949.872 |
|
|
|
|
Prior Period Expenses |
0.000 |
418.356 |
|
|
|
|
TOTAL (B) |
18076.609 |
12950.098 |
11642.138 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
12470.432 |
11101.968 |
20178.657 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1580.891 |
1511.193 |
1061.574 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
10889.541 |
9590.775 |
19117.083 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
4697.186 |
5313.864 |
4622.615 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
6192.355 |
4276.911 |
14494.468 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
3240.730 |
3248.255 |
6231.023 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2951.625 |
1028.656 |
8263.445 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Revenue from operations |
29409.972 |
23679.016 |
28826.423 |
|
|
|
Other Income |
12.050 |
0.322 |
33.151 |
|
|
TOTAL EARNINGS |
29422.022 |
23679.338 |
28859.574 |
|
|
|
|
|
|
|
|
|
|
CIF VALUE OF
IMPORTS |
631.707 |
488.876 |
2655.947 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
9.66
|
4.28
|
25.97
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
21.06
|
18.06
|
50.28
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.25
|
10.20
|
30.91
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.18
|
0.56
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.97
|
0.91
|
0.84
|
LOCAL AGENCY FURTHER INFORMATION
|
Check
List by Info Agents |
Available
in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
No |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
No |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32)
PAN of Proprietor/Partner/Director, if available |
No |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
No |
GENERAL
INFORMATION
Subject (formerly known as Enron Oil and Gas
India Limited) (EOGIL) incorporated in the Cayman Islands with limited
liability, is primarily engaged in the business of prospecting, exploring and
producing oil and gas from the contracted areas. On February 14, 2002, all the
shares of EOGIL were acquired by BG Mumbai Holdings Limited, subsequent to
which, with effect from February 15, 2002, the name of EOGIL was changed to
Subject.
Subject had established a Project Office (PO)
with the approval of the Reserve Bank of India (RBI) [Letter No. EC.BY.PRT
328/7(FCO)/93-94 dated April 22, 1994] for the purpose of carrying out
petroleum operations pursuant to the production sharing contracts for Parma
Mukta and Mid and South Tapti fields. In continuation of the above approval,
subject was granted an extension to continue the existing PO until April 30,
2013 by the RBI (Letter FED. MUMBAI.CAD/1885/03.03.007/2012-13 dated July 27,
2012).
Subject uses its existing PO at Mumbai, as
stated above, in order to carry out its obligations under the PSC for the
Contract Area KG-OSN-2004/1 in accordance with the general permission under
Regulation 5(ii) to RBI Notification No. 22/2000 - RB dated May 3, 2000 read
with Notification No. FEMA 95 dated July 2, 2003. Further, permission was
granted vide letter no. FE.CO.FID/10.83.98/2007-08 for establishing a branch
office at Mumbai and-a Satellite Office at Gurgaon.
These together referred to as "BGEPIL
Indian operations", a Foreign Company as defined under Section 591 of the
Companies Act, 1956. The financial statements of BGEPIL Indian Operations are
prepared under the Companies Act, 1956, and Includes only those Indian Rupee
and foreign currency (converted into Indian Rupee) assets, liabilities, income
and expenditure which relate to the Company's participating Interests in the
contracts/agreements and other transactions related to the Indian operations of
the Company mentioned below.
In India, the Company has entered into the
Production Sharing Contracts (PSCs) / Joint Operating Agreements (JOAs) / Farm
In Agreements as follows:
·
PSC dated
December 22, 1994, amended on January 10, 2005 and the JOAs dated December 22,
1994 for Panna Mukta, Mid and South Tapti oil and gas fields (PMT).
·
PSC dated June
30, 2010 for Contract Area KG-DWN-2009/1.
·
PSC dated March
2, 2007 for Contract Area KG-OSN-2004/1. Subject has written off exploration
expenses during the current year.
·
Farm in
agreement dated February 18, 2008 for Contract Area MN-DWN-2002/2, approved by
Ministry of Petroleum and Natural Gas (MOPNG) on November 21, 2008. Government
of India (GOI) has endorsed inclusion of subject as consortium partner to the
contract and relevant Amendment No.l to the PSC was signed on July 12, 2011.
Subject has written off exploration expenses during the current year.
·
Farm in
agreement dated February 18, 2008 for Contract Area KG-DWN-1998/4, approved by
MOPNG on May 13, 2008. Subject has written off exploration expenses during the
previous year.
The participating interests of subject in each
of these are as follows:
For Contract Area
Panna-Mukta, Mid and South Tapti
|
Partners |
Participating Interest (%) |
|
Oil and Natural Gas Corporation Limited
(ONGCL) |
40 |
|
Reliance Industries Limited (RIL) |
30 |
|
BGEPIL (Cayman Islands |
30 |
For Contract Area
KG-DWN-2009/1
|
Partners |
Participating Interest (%) |
|
BGEPIL (Cayman Islands) |
30 |
|
Oil and Natural Gas Corporation
Limited (ONGC) |
45 |
|
Oil India Limited (OIL) |
15 |
|
Andhra Pradesh Gas Infrastructure
Corporation Private Limited (APGIC) |
10 |
For Contract Area KG-OSN-2004/1
|
Partners |
Participating Interest (%) |
|
Oil and Natural Gas Corporation Limited
(ONGCL) |
55 |
|
BGEPIL (Cayman Islands) |
45 |
For Contract Area MN-DWN-2002/2
|
Parties to the Farm In Agreement |
Participating Interest (%) |
|
Oil and Natural Gas Corporation Limited
(ONGCL) |
75 |
|
BGEPIL (Cayman Islands) |
25 |
For Contract Area KG-DWN-98/4
|
Parties to the Farm In Agreement |
Participating Interest (%) |
|
Oil and Natural Gas Corporation Limited
(ONGCL) |
55 |
|
Oil India Limited (Oil) |
15 |
|
BGEPIL (Cayman Islands) |
30 |
PROFIT
PETROLEUM TO GOVERNMENT OF INDIA
Contract Area Panna Mukta, Mid and South Tapti:
a. In accordance with Article 14 of the PSCs of PMT, the profit petroleum
will be shared between GOI and the contractors (ONGC, RIL, BGEPIL), when the cumulative
revenues of a contract area exceeds the cumulative recoverable contract costs
of that area as mentioned in Artide 13 of the PSCs.
b. The calculation of profit petroleum based on actual costs, quantities,
prices and income (excluding marketing margin charged by the Joint Venture to
recoup costs incurred by the Joint Venture after the delivery point) for the
financial year ended March 31, 2012 has been computed and necessary adjustment
to the profit petroleum has been made, which is not yet agreed between the GOI
and the contractor as mentioned in Article 14 of the PSC's.
c. Agreement between the Contractor and GOI regarding adjustments to be made
for sharing of profit petroleum in respect of Panna Mukta, Mid and South Tapti
Contract Areas:
i. Panna Mukta 1994-1998:
Based on audit conducted by the GOI auditors for
Panna Mukta contract area and in continuation of earlier communications to and
as responded by the Joint Venture (JV), Director General of Hydrocarbons (DGH)
vide its letter dated December 6, 2004 instructed the JV to resolve the audit
exceptions raised for the period from December 22, 1994 to March 31, 1998
(audit exceptions). The JV by its letter dated June 16, 2005 agreed to three of
the seven exceptions aggregating Rupees 32.738 millions raised by DGH and
adjustments for the same were made to the cost and profit petroleum
calculations in the year 2005-06. DGH vide its letter dated May 12, 2009
instructed the JV to incorporate all the audit adjustments from December 22,
1994 to March 31, 1998 and send the compliance report to DGH. The JV has
responded to the above mentioned letter on September 28, 2010. Subject along
with RIL (Claimants) have initiated arbitration proceedings against GOI under
the terms of PMT PSCs. Resolution of these audit exceptions is being pursued
through these proceedings in so far as it relates to the Claimants. ONGC will
abide by the Award issued by the Arbitral Tribunal. Adjustments, if any, will
be made in the year of resolution of the exceptions based on the Arbitral
Tribunal's Award.
ii. Panna Mukta 1998-2002:
Based on audit conducted by the GOI auditors for
Panna Mukta contract area for the period April 1998 to March 2002, DGH vide its
letter dated May 14, 2009 instructed the IV to incorporate all the audit adjustments
from April 1, 1998 to March 31, 2002 and send a compliance report to DGH. The
JV has responded to the above mentioned letter on September 28, 2010. Response
from DGH is awaited, pending which no further adjustments have been made to the
final cost and profit petroleum calculations. Resolution of these audit
exceptions is being pursued through the arbitral proceedings mentioned in the
above sub points In so far as it relates to the Claimants. As noted above, ONGC
will abide by the Award issued by the Arbitral Tribunal. Adjustments, if any,
will be made in the year of resolution of the exceptions based on the Arbitral
Tribunal's Award,
iii. Panna Mukta 2002-2005:
In accordance with the provision of PSC, GOI has
carried out the audit for the period April 2002 to March 2005 for Panna Mukta
Contract Area in 2005-06. Details and explanations have been provided for the
observations made in the audit report on which the JV has responded. Resolution
of all these audit exceptions In being pursued through arbitral proceedings as
mentioned In the above sub point in so far as it relates to the Claimants. As
noted above, ONGC will abide by the Award issued by the Arbitral Tribunal.
Adjustments, if any, will be made in the year of resolution of the exceptions based
on the Arbitral Tribunal's Award.
iv. Tapti 1998-2002:
Based on audit conducted by the GOI auditors for
Tapti contract area, MOPNG vide its letter dated June 14, 2004 communicated
various exceptions for the period from April 1, 1998 to March 31, 2002.
Resolution of these audit exceptions is being pursued through arbitral
proceedings as mentioned in the above sub points in so far as it relates to the
Claimants. As noted above, ONGC will abide by the Award issued by the Arbitral
Tribunal. Adjustments, if any, will be made in the year of resolution of the
exceptions based on the Arbitral-Tribunal's Award.
v. Tapti 2002-2005:
In accordance with the provision of PSC, GOI has
carried out the audit for the period April 2002 to March 2005 for Tapti Contract
Area in 2005-06. Details and explanations have been provided for the
observations made in the audit report on which the JV has responded. Resolution
of these audit exceptions in being pursued through arbitral proceedings as
mentioned in the above sub points in so far as it relates to the Claimants. As
noted above, ONGC will abide by the Award issued by the Arbitral Tribunal.
Adjustments, if any, will be made in the year of resolution of the exceptions
based on the Arbitral Tribunal's Award.
vi. Panna Mukta and Tapti cost recovery exceptions up to 2000:
In continuation of earlier communications to and
as responded by the JV, DGH vide its letter dated May 1, 2006 have requested
the JV to provide suitable explanations and proof of expenditure for items aggregating
Rupees 143.171 millions for Panna Mukta and Rupees 121.275 millions for Tapti
in respect of period prior to March 2000. DGH vide its letter dated May 12,
2009 disallowed the above expenses aggregating Rupees 143.171 millions for
Panna Mukta and instructed the JV to make necessary adjustments and send a
compliance report to DGH. Resolution of all these audit exceptions is being
pursued through arbitral proceedings as mentioned in the above sub points in so
far as it relates to the Claimants. As noted above, ONGC will abide by the
Award issued by the Arbitral Tribunal. Adjustments, if any, will be made in the
year of resolution of die exceptions based on the Arbitral Tribunal's Award.
vii. Panna Mukta and Tapti 2005-2007:
In accordance with the provision of PSC, GOI has
carried out the audit for the period April 2005 to March 2007 for Patina Mukta
and Tapti Contract Areas In 2008-09. MOPNG had issued the final audit
exceptions for the year 200506 and 2006-07 to the Contractors in January 2010
and September 2011. JV has responded to the above letters stating that the
audit exceptions have been communicated to the JV after the period of 120 days
as stipulated under the PSC hence, these are not in accordance with the PSC. JV
has also provided details and explanations for all the observations made in the
audit report. Resolution of these audit exceptions in being pursued through
arbitral proceedings as mentioned in the above sub points in so far as it
relates to the Claimants. As noted above, ONGC will abide by the Award issued
by the Arbitral Tribunal. Adjustments, if any, will be made in the year of
resolution of the exceptions based on the Arbitral Tribunal's Award.
Panna Mukta 2002-2006:
During the previous year, GOI had issued
instructions to its nominees for the purchase of hydrocarbons under the Panna
Mukta PSC, IOC and GAIL to withhold USD 80,181,321 (INR 3619.385 millions).
Subject's share of retention monies is Rupees 1219.798 millions (Previous Year
Rupees 1063.926 millions). This amount includes additional profit petroleum
payable to the GOI based on audit exceptions for the year 2002-03 to 2005-06.
The audit exceptions and the corresponding profit petroleum payable to the GOI
at the time have been disputed by the PMT JV and had been referred to arbitration at the time these deductions
were made. This amount also includes interest of USD 18,510,162 (INR 835.549
millions). The GOI has not provided any basis for the calculation of the
interest amount. The Partners to the JV issued notices to IOC and GAIL for the
deductions made, since the JV believes that the amounts have been deducted
without justifiable cause. IOC and GAIL have responded pursuant to letters
dated February 1, 2011 and March 15, 2011 that they have been nominated by the
GOI to purchase crude/gas from Panna Mukta and are bound by the instructions of
MOPNG and have acted accordingly. IOC and GAIL have also confirmed that these
amounts have been deposited with the GOI. Resolution of these audit exceptions
and above retention is being pursued through arbitral proceedings. As noted
above, ONGC will abide by the Award issued by the Arbitral Tribunal.
Adjustments, if any, will be
made In the year of resolution of the exceptions based on the Arbitral
Tribunal's Award.
Panna Mukta-Tapti 2006-2008:
An audit was conducted on the PMT JV by the
Comptroller and Auditor General (CAG) of India for the years 200607 and
2007-08. The JV agreed to the audit on a without prejudice basis and in the
spirit of cooperation. MOPNG notified the audit exceptions for these years to
the contractors in November 2011.
JV has responded to the above letter in December 2011 stating that it does not accept the matters Identified in
the audit undertaken by CAG as qualifying audit exceptions for the purposes of
the PSCs. In the spirit of cooperation, however, without-prejudice to this
position, JV responded to these matters in March 2012. Response from MOPNG is
awaited. Pending the resolution, no further adjustments have been made to the
final cost and profit petroleum calculations. Resolution of these audit
exceptions is being pursued through arbitral proceedings as mentioned in the above sub points In so far as it relates to the
Claimants. As noted above, ONGC will abide by the Award issued by the Arbitral
Tribunal. Adjustments, if any, will be made in the
year of resolution of the exceptions based on the Arbitral Tribunal's Award. JV
agreed to incorporate the effects on GOI share of Profit Petroleum as adjustments in Year end Cost Recovery
Statements for the year 2011-12 - (a) misclassification of inventory Rupees
17.957 millions and (b) disallowance of insurance Dremium related to non PMT-JV activities.
Panna Mukta-Tapti 2009-2012:
DGH vide their letter dated May 18, 2012 and June
5, 2012 communicated JV that follow-up audit will conducted by CAG in Panna
Mukta and Mid and South Tapti contract area for the year 2008-09 to 2011-12. JV
has responded to these letters on June 8, 2012 and June 18, 2012.
CONTINGENT
LIABILITIES (AS ON 31.03.2012)
Contract
Area Panna Mukta, Mid and South Tapti:
(To the extent of 30%, being the Company's
participating interest in the joint venture - PHT)
a) Re-export bonds executed in favor of customs authorities Rupees 971.437
millions (Previous Year - Rupees 849.708 millions). A liability for payment of
customs duty would arise, if the subject equipment and materials are not
re-exported. Out of the above, Re-export bonds aggregating to Rupees 579.863
millions (Previous Year - Rupees 57.848 millions) are in the process of
cancellation. The equipments/materials against which these bonds have been
issued have been re-exported: however, cancelled bond from the authorities is
still awaited.
b)
Claims against
the Company not acknowledged as
debt Rupees 178.675 millions (Previous Year - Rupees 178.675 millions). This
claim has been raised by Indian Oil Corporation Limited (IOC) vide letter dated
August 9, 2005 on account of additional freight incurred due to the use of
small tankers. The Company vide letter reference PMT-JV/40/2005 dated September
6, 2005 has disputed the claim by IOC as being not consistent with the PSC and
commercial expediency.
c) Show cause cum demand notice (DCSCN) dated April 21, 2006 for the period
January 1, 2005 to March 31, 2005 was received from Service Tax Department for
Rupees 0.080 million (Previous Year Rupees 0.080 million) rejecting the claim
of abatement at 75% on service tax on transportation costs, which was hitherto
considered. The JV has filed its response citing notification no. 32/2005 and
1/2006 to the department in support of its claim.
d) The Company has received show cause notice reference F. No. VIII/
10-02/COMMR/20D2 dated March 8, 2002 under Section 28(1) and Section 124 of the
Customs Act, 1962 of India, from the Commissioner of customs, Ahmedabad,
Gujarat demanding Rupees 1631.008 millions (Previous Year Rupees 1631.008
millions) towards custom duty, Along with interest and penalty as applicable under Section 28AB and Section
114A respectively, of the Customs Act, 1962, of India, on associated natural
gas extracted from Panna and Mukta fields during the period February 8, 1998 to
October 31, 2001 and natural gas and condensate extracted from Mid and South
Tapti fields during the period June 26, 1997 to October 31, 2001.
The Company has also received a show cause
notice reference F. No. VT1I/10-30/COMMR/2002 dated April 10, 2002 under
Section 28(1) and Section 124 of the Customs Act, 1962 of India, from the
Commissioner of Customs, Ahmedabad, Gujarat in continuation of show cause
notice reference F. No. VIII/ 10-O2/COMMR/2002 dated March 8, 2002 demanding
Rupees 112.642 millions (Previous Year Rupees 112.642 millions) towards custom
duty, along with Interest and penalty, as applicable, under Section 28AB and
Section 114A respectively, of die Customs Act, 1962, of India, on associated
natural gas extracted from Panna and Mukta fields and natural gas and
condensate extracted from Mid and South Tapti fields during the period November
1, 2001 to February 10, 2002.
As communicated by DGH by their letter dated
October 25, 2002, instructions have been issued to the Central Board of Excise
and Customs not to take any precipitous action until a final view is taken in
this regard by the Board.
e) i) Disputed Income Tax Matters aqqreqab'nq Rupees 893.871 millions (Previous
Year Rupees 409.955 millions).
ii) During the previous year, the Company had
received a draft assessment order for Assessment Year 2007-08, wherein
additions of Rupees 1529.330 millions have been made to the taxable income on
account of transfer pricing. The Company had filed its objections with Dispute
Resolution Panel (DRP) against the draft assessment order. The above matter is
now pending with Income Tax Appellate Tribunal (ITAT) wherein additions of Rupees 830.695 millions have been made to the
taxable income on account of transfer pricing. The same has been Included as a
contingent liability In (i) above for the current year.
iii) During the current year, the Company has
received a draft assessment order for Assessment Year 2008-09, wherein
additions of Rupees 816.379 millions have been made to the taxable income on
account of transfer pricing. The Company has filed its objections with the DRP
against the draft assessment order.
f. i) Sales tax authorities raised a claim of
Rupees 9.592 millions (Previous Year Rupees 9.592 millions) in respect of gas
sold from Panna Mukta field on GOI share of profit petroleum during the period
January 2001 to March 2005.
ii) Sales tax authorities raised a claim of Rupees
608.103 millions (Previous Year Rupees 608.103 millions) including interest and
penalty on subject in respect Government of India Profit Petroleum and
Transportation and Processing charges paid to ONGC for financial year 2002-03.
Subject filed a writ petition in Ahmedabad High Court. Ad-interim relief was
granted by the high court subject to BGEPIL making an Interim payment of Rupees
131.907 millions (Previous Year Rupees 131.907 millions) before July 6, 2007.
Pursuant to an application made by Subject, the Gujarat High Court extended the
period required to make the payment by a further period of 4 weeks.
Subsequently, subject filed a special leave petition at the Supreme Court
against the order with first hearing on August 3, 2007 and another on August
27, 2007. On April 28, 2008, the Supreme Court dismissed the special leave
petition on the ground that the impugned order was merely an interim order of
the High Court of Gujarat and indicating that subject should exercise
alternative remedies available to it prior to a petition in the Supreme Court.
In June 2008, subject deposited the requested amount with the sales tax
authorities.
A further assessment order was received by
subject on July 3, 2008 for financial year 2003-04 for Rupees 222.415 millions
(Previous Year Rupees 222.415 millions). On September 4, 2008, the High Court
granted ad-interim relief to subject by staying the recovery of demanded amount
under the assessment pending a final decision and disposal of the petition. The
matter on merits will be considered alongside that of financial year 2002-03.
On April 3, 2009 an initial assessment order was
received by subject for the financial year 2004-05 which includes sales tax
liability of Rupees 896.808 millions (Previous Year Rupees 896.808 millions).
As with 2003-04, subject applied for ad-Interim relief, which was granted by
High Court on May 15, 2009 by staying recovery on demanded amount under the
assessment, pending a final decision and disposal of petition. The matter on
merits will be considered along side that of Financial Years 2002-03 and
2003-04.
On March 29, 2010 an initial assessment order
was received by subject for financial year 2005-06 which includes sales tax
liability along with interest and penalty of Rupees 157.219 millions (Previous
Year Rupees 157.219 millions) for GOI Profit Petroleum invoicing. Subject has
filed a special civil application with the Ahmedabad High Court against the
said order on April 23, 2010. On April 27, 2010, the High Court granted stay on
the demand of the sales tax authorities up to June 14, 2010. Accordingly, the
matter for admission of special civil application is scheduled to come up for
hearing in 2012.
g. Show
cause notices Issued to subject by sales tax department (Bhavnagar) as a
constituent of - Panna Mukta and Tapti -
The Company had received re-assessment order
dated January 10, 2004 for the financial year 1997-1998 and reassessment
orders dated January 3, 2004 for the financial years 1998-1999, 1999-2000,
2000-2001 and 2001-2002. As per the re-assessment order for the financial year
1997-98 passed by Sales Tax Officer, Bhavnagar, die total amount demanded
including interest and penalty is Rupees 74.095 millions (Previous Year Rupees
74.095 millions). As per the reassessment order for the financial years
1998-99, 1999-2000, 2000-2001 and 2001-2002 passed by Assistant Sales tax
Commissioner, Bhavnagar, the total amount demanded including interest and
penalty Is Rupees 6951.573 millions (Previous Year Rupees 6951.573 millions).
Government of Gujarat sales tax department
(Bhavnagar) issued a show cause notice and reassessment order (including
penalty and interest) on the basis that the PM gas delivery point is onshore
and liable for sales tax on sales value. PMT Joint Venture contends that gas
delivery point is offshore at the T junction on the platform and thus not
applicable to sales tax.
The Company filed an appeal / stay application
dated January 20, 2004 with Assistant Commissioner of Sales Tax, Bhavnagar for
financial year 1997-98 and with Deputy Commissioner of Sales Tax, Rajkot for
Financial years 1998-99 to 2001-02. The Sales Tax Department, Bhavnagar vide
its order dated February 10, 2004 attached the Company's bank account with SBI,
Bhavnagar and issued a Garnishee Order to GAIL, Delhi for sales tax recovery.
The Company has filed a writ petition no. 2084
of 2004 dated February 17, 2004 with High Court, Ahmedabad. High Court,
Ahmedabad while hearing on the petition issued an Ad-interim order dated
February 24, 2004 instructing GAIL to pay Rupees 174.500 millions (Previous
Year Rupees 174.500 millions) to Sales Tax Department towards sales tax
liability of the Company. GAIL paid die said amount to sales tax department and
deducted it out of the sale proceeds of the Company. The entire amount of
Rupees 174.500 millions (Previous Year Rupees 174.500 millions) is disclosed as
receivable from the sales tax authorities and will be determined upon final
adjucation by the High Court.
Further, the Company, by an affidavit dated February
24, 2004 to Ahmedabad High Court, has undertaken not to dispose any portion of
producing properties until the petition on the sales tax matter is resolved.
The High Court, Ahmedabad vide its order dated
April 29, 2004 instructed the Company to pay difference of arrears of sales tax
at the rate of 4% for the period 1997-98 to 2001-02 and arrears of sales tax at
the rate of 4% for the period 2002-03 to 2003-04 along with interest thereon at
the rate of 18% aggregating Rupees 292.458 millions (Previous Year Rupees
292.458 millions) (including interest aggregating Rupees 138.895 millions
(Previous Year Rupees 138.895 millions) by May 31, 2004. The Company has paid
the said amount of Rupees 466.958 millions (Rupees 174.500 millions as above
and Rupees 292.458 millions) for the period 1998 - 2004 and Rupees 75.806
millions (Previous Year Rupees 75.806 millions) for 2004-05 to sales tax
department in accordance with the order of the High Court, Ahmedabad.
The High Court, Ahmedabad further directed that
the Company shall pay current sales tax as and when the same falls due under
the provisions of Gujarat Sates tax Act, 1969 and the Central Sales tax Act,
1956. Final decision of the High Court, Ahmedabad on the petition is still
pending. Hearing on the said petition based on merits of the case is expected
to take place in 2012.
On completion of seven years gas production in
the Tapti Contract Area, as per article 21.5.13 of the PSC the Joint Venture
was entitled to an increase in Ceiling price of gas. Based on this article, the
Joint Venture invoiced GAIL (sole buyer of gas) at the PSC price from June 26,
2004 to March 31, 2005. GAIL continued to pay the revenues based on the Ceiling
price of USD 3.11/MMBTU. However, the Joint Venture partners paid Sales Tax on
the invoice price for GOI’s share of Profit Petroleum. On receiving the
remittance from GAIL (based on the ceiling price) for GOFs share of Profit
Petroleum the additional amount paid by the Joint Venture as Sales Tax was
deducted from GOI's share of Profit Petroleum, the amount being Rupees 7.731
millions (the Company's share) was reported as Contingent Liability in the
previous year. Following the Arbitration Consent Terms dated June 11, 2012, the
Company has received Rupees 74.945 millions against the receivable of Rupees
75.806 millions which was paid to the sales tax department for 2004-05.
h. On
January 27, 2009, the DGH issued a letter to the JV demanding additional profit
petroleum payments of Rupees 96.143 millions (Previous Year Rupees 84.221 millions)
on the basis that Panna Mukta cost recovery limit (CRL) had been exceeded. The
JV responded in a letter dated February 18, 2009 requesting the DGH to withdraw
their demand as it is not in line with the PSC provisions. This issue has been
referred to the arbitration.
i. Bank
Guarantees
Contract
Area KG-OSN-2004/1:
The Company has provided Bank Guarantee in favor
of Secretary of Government of India, Ministry of Petroleum and Natural Gas, New
Delhi amounting to Rupees Nil (Previous Year Rupees 502.408 millions) being the
Company's participating interest share of Total estimated annual expenditure in
respect of minimum work program to be undertaken by the Contractor for
Financial Year 2010-11.
Contract
Area MN-DWN-2002/2:
The Company has provided Bank Guarantee in favor
of Secretary of Government of India, Ministry of Petroleum and Natural Gas, New
Delhi amounting to Rupees 1532.502 millions (Previous Year Rupees 204.033
millions) being the Company's participating interest share of total estimated
annual expenditure in respect of minimum work program to be undertaken by the
Contractor for Financial Year 2011-12.
Contract
Areas KG-DWN-2009/1:
The Company has provided Bank Guarantee In favor
of Secretary of Government of India, Ministry of Petroleum and Natural Gas, New
Delhi amounting to Rupees 1.159 millions (Previous Year Rupees 1.016 millions)
being the Company's participating interest share of Total estimated annual
expenditure in respect of minimum work program to be undertaken by the
Contractor for initial or subsequent exploration period of four years.
j. Non-operated exploration blocks:
Subject to assign and transfer to ONGC its
participating interests in Blocks KG-OSN 2004/1 and MN-DWN 2002/2 and settle of
all pending dues in relation to and KG-DWN 98/4. Towards this end, subject and
ONGC are in stage of negotiation to agree necessary terms and conditions for an
all encompassing agreement ("Exit Agreement")-
A short description of the disputes between
subject and ONGC in relation to in Blocks KG-OSN 2004/1 and KG-DWN 98/4 are as
follows: (1) Faced with the unilateral decision by ONGC to undertake
exploration on the Block KG DWN 98/4 , prior to the implementation of Rig
Holiday Policy, Subject vide letter dated February 26, 2010 informed ONGC that
it shall not participate in the exploration block - KG-DWN 98/4 and It shall
not have any obligations whatsoever, whether, without limitation, financial,
operational or otherwise, in respect of the block after May 18, 2008. ONGC
disputed the position adopted by subject and (2) In accordance with the
provisions of the JOA, Subject vide letter dated September 26, 2011 Issued
transfer notice to ONGC to assign its participating interest in exploration
block - KG-OSN 2004/1 to ONGC. ONGC vide their letter dated October 11, 2011
informed subject that ONGC is not accepting aforesaid notice and subject is
obligated to perform under PSC. Subject vide letter dated October 14, 2011
informed ONGC that it has no further interest and obligations in the block.
Subject vide letters dated November 22, 2011 and
December 13, 2011 proposed a non-binding offer to ONGC to: (1) (i) assign its
Participating Interests in KG-OSN 2004/1 and MN-DWN 2002 and (2) pay USD 50,000,000
as full final settlement of all dues in relation to Blocks KG-OSN 2004/1,
MN-DWN 2002/2 and KG-DWN 98/4.
The said non binding offer is without prejudice
and subject to fully termed "Exit Agreement".
ONGC vide their letter dated January 9, 2012 had
Informed subject that ONGC Board has approved subject's proposal subject to GOI
approval and closing all outstanding Issues related to block - KG-OSN 2004/1
and KG-DWN 98/4.
Contingent liability on account of the above
proposal is to the extent of USD 34,613,880 (Rupees 1783.653 millions)
representing total proposal amount of USD 50,000,000 (Rupees 2576.500 millions)
less amounts already provided in books USD 15,386,120 (Rupees 792.847 millions)
on account of past costs. Previous year the Company had reported the contingent
liabilities of USD 14,995,920 (Rupees 676.916 millions).
[The exchange rate used for conversion, based on
the State Bank of India selling rate as at March 31, 2012 is USD 1 = Rupees
51.53 (Previous Year - USD 1 = Rupees 45.14)]
FIXED ASSETS:
Tangible Assets
·
Panna Mukta - Facilities and Wells
·
Tapti - Facilities and Wells
·
Tapti - Decommissing Asset
·
Leasehold Improvements
·
Furniture and Fixtures
·
Office Equipments
·
Vehicles
Intangible Assets
·
Computer Software (SAP)
·
Documentum Software
·
Support Computer Software
WEBSITE DETAILS:
PRESS RELEASES:
BG GROUP COMPLETES
AGREEMENT ON LONG-TERM LNG SALES TO INDIA
20 March 2013
BG Group today announced it had completed an agreement for the long-term
sale of liquefied natural gas (LNG) to India, one of the world’s most rapidly
growing energy markets.
Under the agreement, BG Group will supply state-owned Gujarat State
Petroleum Corporation Limited (GSPC) with up to 2.5 million tonnes per annum
(mtpa) of LNG, concluding negotiations announced in September 2011.
BG Group will initially supply 1.25 mtpa of LNG beginning in 2015 and
for up to 20 years, potentially increasing to 2.5 mtpa after two years. GSPC
will be supplied from the Group’s global LNG portfolio.
BG Group Chief Executive Chris Finlayson said: “We have been active in
India for more than 15 years and it is a large and important market that we
understand well. We expect the country to lie third among LNG importing
countries by 2025, behind Japan and China.
"Our long-term agreement with GSPC adds another dimension to our
global LNG portfolio with the addition of material new supplies to a fast
growing market. We look forward to building our presence in the country,"
Mr. Finlayson said.
BG GROUP DELIVERS
KEY PROJECT MILESTONE WITH EVEREST EAST EXPANSION
18 March 2013
BG Group today announced first production from its Everest East
expansion project in the UK North Sea. This significant milestone is the
second of seven projects BG Group plans to bring onstream in 2013 as outlined
at BG Group’s annual results in February.
The Everest East expansion comprises two sub-sea wells tied back to the
North Everest platform and brownfield modifications to the existing production
system. It is expected that the project will provide initial peak production of
over 10 000 barrels of oil equivalent (boe) per day with total gross reserves
of 20.6 million boe.
BG Group Chief Executive Chris Finlayson said: “With first production
from the Everest East expansion in the UK North Sea, following the second
floating production, storage and offloading (FPSO) vessel coming onstream
offshore Brazil in January and the recent restart of Elgin/Franklin, we have
now achieved the key production milestones we set for the first quarter of
2013.”
BG GROUP AGREES
SALE OF CONVENTIONAL US GAS PRODUCING ASSETS
15 February 2013
BG Group today announces that it has signed a sale and purchase
agreement with EXCO Resources (EXCO) for the divestment of all its interests in
the shallow, non-core, conventional producing assets and acreage in the Cotton
Valley formation for a consideration of $132.5 million.
These assets, covering approximately 54 165 net leasehold acres across
East Texas and North Louisiana, are not required to be held by BG Group in
order to hold, drill and produce the undeveloped Haynesville/Bossier formation
shale reserves which lie beneath the Cotton Valley formation.
Closing of this transaction is expected in the first quarter of 2013.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No 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] 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.54.03 |
|
|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.