|
Report Date : |
26.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
BJ SERVICES COMPANY MIDDLE EAST LIMITED (w.e.f.24.04.1997) |
|
|
|
|
Formerly Known
As : |
BJ SERVICES INTERNATIONAL LIMITED |
|
|
|
|
Address of the
principal place of business in India : |
Unit No. 203, 2nd Floor, Reliable Tech Park, Gut No.31 and
95, TTC Industrial Area, Airoli, Navi Mumbai – 400708, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.12.2011 |
|
|
|
|
Date of
Incorporation : |
01.10.1998 |
|
|
|
|
FCRN : |
F01832 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMBI2259C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB8529N |
|
|
|
|
Legal Form : |
Foreign Company |
|
|
|
|
Line of Business
: |
Providing Oil-Well Cementing, Equipment Rental and Stimulation
Services. |
|
|
|
|
No. of Employees
: |
Information declined by management.
|
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (28) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Not Registered in India |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a project office of a foreign company registered in United
Kingdom. The company has reported huge losses due to excess expenditure during 2011.
Payment terms are unknown. The company can be considered for business dealings on a safe and
secured 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.
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
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.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-56484300)
LOCATIONS
|
Registered Office : |
Badentony Avenue, Badentoy Park Industrial Estate, Portlenthen, Aberdeen, AB124YB, United Kingdom |
|
|
|
|
Address of the
principal place of business in India : |
Unit No. 203, 2nd Floor, Reliable Tech Park, Gut No.31 and 95,
TTC Industrial Area, Airoli, Navi Mumbai – 400708, Maharashtra |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
|
|
|
Warehouse : |
306/312, Ear Tarsali Bypass, Vadodara – 390010, Gujarat, India |
DIRECTORS
As on 31.12.2011
|
Name : |
C Asquith |
|
Designation : |
Director |
|
|
|
|
Name : |
O Onabolu |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
P B Stokes |
|
Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Not Available
BUSINESS DETAILS
|
Line of Business : |
Providing Oil-Well Cementing, Equipment Rental and Stimulation
Services. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management.
|
|
|
|
|
Bankers : |
· Standard Chartered Bank, Mankhool, Dubai, United Arab Emirates |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Tower 3 , 27th – 32nd Floor, Indiabulls Finance
Centre, Elphinstone Mill Compound, Senapati Bapat Marg, Elphinstone (West),
Mumbai – 400013, Maharashtra, India |
|
Tel. No. : |
91-22-61854000 |
|
Fax No. : |
91-61854501 / 4601 |
|
|
|
|
Ultimate Holding Company : |
BJ Services Company-Inc, USA (acquired by Baker Hughes Inc. on 28th
April, 2010) |
CAPITAL STRUCTURE
|
Head
Office Account |
31.12.2011 |
31.12.2010 |
|
Funds at the beginning of year/period |
(206.389) |
(190.502) |
|
Receipts
on behalf of Head Office |
136.311 |
173.987 |
|
Remittances
from Head Office |
1647.361 |
1876.086 |
|
Expenses for the year / period |
(1689.358) |
(1962.844) |
|
Payments made on behalf of Head
Office |
(118.336) |
(103.116) |
|
Total |
(230.411) |
(206.389) |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET (INDIAN PROJECT OFFICE)
|
SOURCES OF FUNDS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
|
|
|
|
SOURCES
OF FUNDS |
|
|
|
|
|
|
|
|
|
Head
Office Account |
|
|
|
|
Funds at the beginning of year/period |
(206.389) |
(190.502) |
(12.487) |
|
Receipts
on behalf of Head Office |
136.311 |
173.987 |
159.638 |
|
Remittances
from Head Office |
1647.361 |
1876.086 |
1464.341 |
|
Expenses for the year / period |
(1689.358) |
(1962.844) |
(1700.631) |
|
Payments made on behalf of Head
Office |
(118.336) |
(103.116) |
(101.363) |
|
|
|
|
|
|
(Shortfall) at the
end of the year period |
(230.411) |
(206.389) |
(190.502) |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
Fixed Assets |
|
|
|
|
Gross Block |
207.332 |
200.389 |
194.417 |
|
Less: Accumulated Depreciation |
(179.573) |
(160.524) |
(33.116) |
|
Net Block |
27.759 |
39.865 |
61.301 |
|
|
|
|
|
|
Current Assets, Loans and Advances |
|
|
|
|
a) Cash and Bank Balances |
1.576 |
1.276 |
1.488 |
|
B) Loans
and Advances |
64.199 |
71.769 |
78.193 |
|
|
65.775 |
73.045 |
79.681 |
|
|
|
|
|
|
Current Liabilities
and Provisions |
|
|
|
|
a) Current
Liabilities |
280.641 |
280.950 |
306.428 |
|
b) Provisions |
43.304 |
38.349 |
25.056 |
|
|
323.945 |
319.299 |
331.484 |
|
|
|
|
|
|
Net Current Assests |
(258.170) |
(246.254) |
(251.802) |
|
|
|
|
|
|
TOTAL |
(230.411) |
(206.389) |
(190.502) |
PROFIT & LOSS
ACCOUNT (INDIAN PROJECT OFFICE)
|
PARTICULARS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
INCOME |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
EXPENDITURE |
|
|
|
|
Contract Supplies |
119.231 |
166.806 |
100.453 |
|
Personnel Expenses |
|
|
|
|
- Salaries and Wages |
393.354 |
469.417 |
412.022 |
|
- Contribution to funds |
44.651 |
42.243 |
32.240 |
|
- Welfare Expenses |
21.121 |
18.175 |
20.727 |
|
Labour Charges |
62.477 |
55.464 |
55.565 |
|
Customs, Clearances and Freight Inwards |
38.903 |
32.066 |
56.624 |
|
Service Tax Paid |
293.851 |
324.444 |
242.409 |
|
Lease Rent |
123.786 |
171.440 |
132.701 |
|
Equipments on Hire for operations |
139.643 |
164.044 |
113.246 |
|
Freight and Transportation |
59.165 |
23.432 |
126.816 |
|
Repairs and Maintenance Buildings |
5.771 |
6.639 |
6.240 |
|
Repairs and Maintenance Plant and Machinery |
58.531 |
106.377 |
67.879 |
|
Repairs and Maintenance Others |
117.189 |
104.972 |
88.423 |
|
Insurance |
4.283 |
4.121 |
5.677 |
|
Travel and Conveyance |
132.915 |
171.353 |
140.314 |
|
Communication Expenses |
10.221 |
15.123 |
14.752 |
|
Electricity Expenses |
6.601 |
9.198 |
7.628 |
|
Printing and Stationery |
3.534 |
3.744 |
3.731 |
|
Legal and Professional Expenses |
10.146 |
15.879 |
15.541 |
|
Business and Promotion |
1.559 |
2.350 |
3.019 |
|
Miscellaneous Expenses |
10.174 |
16.301 |
3.280 |
|
Finance Expenses |
13.204 |
11.848 |
24.781 |
|
Depreciation |
19.048 |
27.408 |
26.562 |
|
TOTAL |
1689.358 |
1962.844 |
1700.630 |
|
|
|
|
|
|
Excess of
Expenditure over Income for the year transferred to Head |
1689.358 |
1962.844 |
1700.630 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
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 |
No |
|
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 |
CURRENT MATURITIES OF
LONG TERM DEBTS : NOT AVAILABLE
BACKGROUND
Subject is company incorporated in the United Kingdom, having a Project
Office in India. The Company is ultimately held by BJ Services Company, a company incorporated in United States of
America (‘USA’) which has been acquired by Baker Hughes Inc on 28th April,
2010. The Project Office has been granted permission vide approval No EC.
Mumbai. FID (I) 864/04.01.03/63 FCO/97-98 dated November 7, 1998 from the
Reserve Bank of India (‘RBI’) to establish a project office in India.
The Company established a project office at Mumbai and site offices at
Vadodara, Vishakapatnam and Rajasthan, to co-ordinate and facilitate the
execution of its contracts for providing oil-well cementing, equipment rental
and stimulation services.
As part of restructuring of the operations of the BJ Services Group, all
the contracts originally awarded to BJ Services Company Middle East, U.S.A have
been assigned to BJ Services Company Middle East Limited, UK. The company has
obtained permission vide approval No EC. Mumbai. FID (I) 864/04.01.03/63
FCO/97-98 dated 7th November, 1998 from the RBI for such assignment.
Further, BJ Services Company Middle East, U.S.A is in process of
complying with the cosure formalities of its Indian Office and has transferred
net assets aggregating Rs. 7.562 millions as on 1st October, 1998 to
Subject, UK, for which the approval of the RBI is pending.
FIXED ASSETS
· Office Equipment
Computers
Plant
and Machinery
Furniture
and Fixture
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.69 |
|
|
1 |
Rs.100.80 |
|
Euro |
1 |
Rs.86.30 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
28 |
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.