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Report Date : |
16.01.2013 |
IDENTIFICATION DETAILS
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Name : |
JINDAL PETROLEUM OPERATING COMPANY SHPS |
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Registered Office : |
Building 57,
Apartment 15, 5th Floor Iosebidze Street Saburtalo Region Tbilisi |
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Country : |
Georgia |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
11.06.2009 |
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Com. Reg. No.: |
B12138360 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject engages in exploration and extraction of oil and gas. |
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No. of Employees : |
400 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Georgia |
C1 |
C1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
GEORGIA - ECONOMIC OVERVIEW
Georgia's main economic activities include the cultivation
of agricultural products such as grapes, citrus fruits, and hazelnuts; mining
of manganese, copper, and gold; and output of a small industrial sector
producing alcoholic and nonalcoholic beverages, metals, machinery, and
chemicals. The country imports nearly all its needed supplies of natural gas
and oil products. It has sizeable hydropower capacity that now provides most of
its energy needs. Georgia has overcome the chronic energy shortages and gas
supply interruptions of the past by renovating hydropower plants and by
increasingly relying on natural gas imports from Azerbaijan instead of from
Russia. Construction of the Baku-T'bilisi-Ceyhan oil pipeline, the
Baku-T'bilisi-Erzerum gas pipeline, and the Kars-Akhalkalaki Railroad are part
of a strategy to capitalize on Georgia's strategic location between Europe and
Asia and develop its role as a transit point for gas, oil, and other goods.
Georgia's economy sustained GDP growth of more than 10% in 2006-07, based on
strong inflows of foreign investment and robust government spending. However,
GDP growth slowed following the August 2008 conflict with Russia, and turned
negative in 2009 as foreign direct investment and workers' remittances declined
in the wake of the global financial crisis. The economy rebounded in 2010-11,
with growth rates above 6% per year, but FDI inflows, the engine of Georgian
economic growth prior to the 2008 conflict, have not recovered fully.
Unemployment has also remained high at 16%. Georgia has historically suffered
from a chronic failure to collect tax revenues; however, the government, since
coming to power in 2004, has simplified the tax code, improved tax
administration, increased tax enforcement, and cracked down on petty
corruption, leading to higher revenues. The economic downturn of 2008-09 eroded
the tax base and led to a decline in the budget surplus and an increase in public
borrowing needs. The country is pinning its hopes for renewed growth on a
determined effort to continue to liberalize the economy by reducing regulation,
taxes, and corruption in order to attract foreign investment, with a focus on
hydropower, agriculture, tourism, and textiles production. Since 2004, the
government has taken a series of actions against endemic corruption, including
reform of the traffic police and implementation of a fair examination system
for entering the university system. The government has received high marks from
the World Bank for its anti-corruption efforts.
Source
: CIA
Jindal
Petroleum Operating Company ShPS (Correct)
JINDAL PETROLEUM OPERATING COMPANY LLC
(Requested)
Building : Building 57, Apartment 15, 5th
Floor
Street : Iosebidze Street
Area :
Saburtalo Region
Town : Tbilisi
Country : Georgia
Telephone : (995 32) 238 4217 / Mobile (995 599) 551
139 / (995 591) 118 028 / (995 591) 516 058 (Manish Kr. Agnihotri)
/ (995 599) 981 455 (Natia Kvartshava) / (995 599) 265 115
E-Mail : manish.jpgl@gmail.com /
natia.jpgl@gmail.com
English Translation : Jindal Petroleum
Operating Company LLC
Name Position
1. Sushil Kumar Maroo Managing
Director
2. Tarun Krishna Majumdari Director
3. Pradeep Kumar Mehta Director
4. Vineet Mohan Gildial Director
5. Manish Kr. Agnihotri Financial
Director
6. Natia Kvartshava Accountant
Total Employees : 400
No complaints have been heard
regarding payments from local suppliers or banks.
Subject is a wholly owned subsidiary company of Jindal Petroleum (Georgia)
Limited (Mauritius). The latter is in turn a subsidiary company of Jindal Steel
and Power Limited. Jindal Steel and Power Limited (JSPL) is one of India’s major steel
producers with a significant presence in sectors like Mining, Power Generation
and Infrastructure. With an annual turnover of over US $2.9 billion, JSPL is a part of the
US$ 15 billion diversified O. P. Jindal Group and is consistently tapping new
opportunities by increasing production capacity, diversifying investments, and
leveraging its core capabilities to venture into new businesses. The company
has committed investments exceeding US$ 30 billion in the future and has
several business initiatives running simultaneously across continents.
We consider it is acceptable to
deal with subject for MEDIUM amounts,
although it is normal accepted
practice for international suppliers to deal on secured terms with Georgian
importers.
Trade risk assessment: Normal
NAME :
BANK OF GEORGIA
Branch : Pushkin St 3
Town :
Tbilisi GE0105
Telephone : (995 32) 444 444
Fax : (995 32) 444 134
The company
previously had an account with :
HSBC Bank Georgia
JSC
15 Rustaveli
Avenue
Tbilisi 0108
Telephone: (995 32) 177 777
Private companies in Georgia are
not required to publish or disclose balance sheets. However, the subject
interviewed offered the following information :
Total Invested Capital : US DLRS
120,000,000
The following
consolidated balance sheet as at 31 March 2012 applies to Jindal Steel and Power Limited, subject's parent company :
2012 2011
(Rupees in Crores)
EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital 93.48 93.43
Reserves and Surplus 18,017.62 14,016.87
Minority interest 307.10 233.45
Non-Current Liabilities
Long-term borrowings 11,179.63 7,377.64
Deferred tax liabilities (Net) 1,191.95 1,005.48
Other Long-term liabilities 142.06 141.25
Long-term provisions 33.54 19.47
Current Liabilities
Short-term borrowings 4,569.31 5,925.98
Trade payables 1,251.36 933.55
Other current liabilities 4,110.16 3,254.99
Short-term provisions 4,111.33 3,086.79
Total 45,007.54 36,088.90
ASSETS
Non-current assets
Fixed assets
Tangible assets 16,462.63 14,810.69
Intangible assets 31.39 32.82
Goodwill on Consolidation 91.76 101.77
Capital work-in-progress 13,472.05 9,360.53
Intangible assets under development 179.90 20.41
Non-current investments 377.62 297.88
Long term loans and advances 2,180.94 2,221.32
Other non-current assets 14.24 14.39
Current assets
Inventories 3,579.53 2,773.43
Trade receivables 1,306.75 1,153.70
Cash and bank balances 149.21 463.99
Short-term loans and advances 6,927.21 4,728.70
Other current assets 234.31 109.27
Total 45,007.54 36,088.90
INCOME STATEMENT
REVENUE
Revenue from operations (gross) 19,616.46 13,998.95
Less: Excise duty 1,407.86 886.80
Revenue from operations (net) 18,208.60 13,112.15
Other Income 141.94 81.45
Total Revenue 18,350.54 13,193.60
EXPENSES
Cost of materials consumed 5,460.38 3,041.56
Purchase of Stock-in-Trade 217.18 0.14
Changes in inventories of finished goods,
work-in-process and Stock-in-Trade (366.46) (570.28)
Employee benefits expense 591.29 414.92
Finance costs 360.04 259.57
Depreciation and amortisation expense 1,386.47 1,151.00
Other expenses 5,513.04 3,909.64
Total Expenses 13,161.94 8,206.55
Profit before tax 5,188.60 4,987.05
Tax expense:
Current tax 999.87 1,023.03
Deferred tax 186.47 160.01
1,186.34 1,183.04
Profit after tax 4,002.26 3,804.01
Share in Profit
Add/(Less):Share in profit/(Loss) of
associates 20.03 15.78
Add/(Less): Minority interest (57.40) (65.91)
Profit for the year 3,964.90 3,753.88
Financial year ends 31 March.
Date Started : 11 June 2009
C.R. No. : B12138360
ID Code : 205280845
Capital : not given
Shazguduli Pasukhismbgeblobis
Sazagadoeba (limited liability company) ShPS) with the following directors and shareholder
:
Directors
1. Sushil Kumar Maroo
(Indian national / Personal No.: G1598236)
2. Tarun Krishna Majumdari
(Indian national / Personal No.: Z1025447)
3. Pradeep Kumar Mehta
(Indian national / Personal No.: H8545256)
4. Vineet Mohan Gildial
(Indian national / Personal No.: F3742255)
Shareholder
Jindal Petroleum (Georgia) Limited 100%
C.R. No. : 082605C2/GBL
Mauritius
Ultimate Parent Company :
Jindal Steel and Power Limited
Jindal Centre
12 Bhikaiji Cama Place
New Delhi 110 066
Tel: (91 11) 2618 8340-50
Fax: (91 11) 2616 1271
Email: marketing@jindalsteel.com
Jindal Steel and Power Limited (JSPL) is one of India’s major steel
producers with a significant presence in sectors like Mining, Power Generation
and Infrastructure.
Affiliated companies of the
subject company :
Associate in Georgia
Jindal Petroleum (Georgia) Limited - Tbilisi Branch
Building 57, Apartment 15, 5th
Floor
Iosebidze Street
Saburtalo Region
Tbilisi
Mobile : (995 599) 551 139 (Levan
Apakidze)
Est.: 4 January 2009
ID Code : 205277118
Managing Director : Levan Apakidze
Other Associates
1. Jindal Saw Ltd
12 Bhikaiji Cama Place
New Delhi 110066
India
Tel: (91 11) 2618 8345 / 2618 8360-74
Fax: (91 11) 2617 0691
2. Jindal SAW USA LLC
1411 S Fm 565 Road
Baytown TX 77523-9054
USA
3. Hexa Securities & Finance
Company Ltd
12 Bhikaiji Cama Place,
New Delhi 110066
India
Tel: (91 11) 2618 8345 / 2618 8360-74
Fax: (91 11) 2617 0691
4. IUP Jindal Metals and Alloys
Limited
28, Najafgarh Road,
New Delhi - 110 015
India
Tel: (91 11) 4502 1200
Fax: (91 11) 4502 1982
Email: info@iupjindal.com
5. S V Trading Limited
6. Jindal ITF Ltd.
Jindal ITF Centre,
28, Shivaji Marg,
New Delhi-110015,
India
Tel: (91 11) 4502 1983 - 984
Fax: (91 11) 4502 1982
7. JSW Steel Ltd.
8. JSW Energy Ltd.
9. JSW Holdings Ltd.
10.JSW Infrastructure &
Logistics Ltd.
11.Vijaynagar Minerals Pvt. Ltd.
12.Jindal Praxair Oxygen Company
Ltd.
13.JSoft Solutions Ltd.
14.JSW Building Systems Ltd.
15.JSL Stainless Limited
16.PT Jindal Stainless
Indonesia
17.JSS Steelitalia Ltd.
18.Jindal Stainless Steelway Ltd.
19.Art d’inox: Austenitic
Creations Private Limited
20.Arc: Jindal Architecture
Limited
21.Parivartan City Infrastructure
Ltd.
22.Jindal Steel & Power Ltd.
23.Jindal Power Ltd.
24.Jindal Petroleum Ltd.
25.Jindal Steel Bolivia
Bolivia
26.Jindal Cement
27.Jindal Power Trading Company
Limited
28.Jindal Minerals & Metals
Africa Limited
Mauritius
29.Jindal Steel & Power
(Mauritius) Limited
Mauritius
30.Gas to Liquids International
Bolivia
31.Trans Atlantic Trading Limited
Guernsey
32.Jindal Minerals and Metals
Africa Congo SPRL
Congo
33.Worth Overseas Limited
Mauritius
34.Vision Overseas Limited
Mauritius
35.Jubilant Overseas Limited
Mauritius
36.Affiliate Overseas Limited
Mauritius
37.Skyhigh Overseas Limited
Mauritius
38.Harmony Overseas Limited
Mauritius
39.Jindal Mining Industry LLC
Mongolia
40.JSPL Mozambique Minerais LDA
Mozambique
41.Enduring Overseas Limited
Mauritius
42.Jindal Mining &
Exploration Limited
Mauritius
43.Jindal Investment Holdings
Limited
Mauritius
44.Jindal Africa Investments
(Pty) Limited
South Africa
45.Osho Madagascar SARL
Madagascar
46.Rolling Hills Resources LLC
Mongolia
47.Eastern Solid Fuels Pty
Limited
South Africa
48.Kasai SUD Diamant SPRL
Congo
49.Jindal Madagascar SARL
Madagascar
50.Jindal Brasil Mineracao SA
Brazil
51.Belde Empreendimentos Mineiros
Ltd
Mozambique
52.Jindal Petroleum (Mauritius)
Limited
Mauritius
53.Saras Mineracao de Ferro S.A
Brazil
54.Globleq Singapore Pte Limited
Singapore
The Company is involved in the
following activities :
Subject engages in exploration and extraction of oil and gas
in Georgia. Subject has 5 blocks with total acreage of 17,959 sq. km. and
estimated recoverable reserve of over 300 MMBBL of Crude Oil and 500 BCF of
Gas.
Subject has taken all necessary measures to augment
production and expects to produce about 10,000 bbl/day by the end of 2012.
NACE Code : 620
Imports equipment from Turkey,
Azerbaijan, India and USA.
Exports to Europe countries.
The Company has the following
facilities :
Administrative offices located at
the heading address as well as branch offices located in Lilo District, Tbilsi.
Building 57, Apartment 15, 5th
Floor
Iosebidze Street
Saburtalo Region
Tbilisi
You enquired on: JINDAL PETROLEUM
OPERATING COMPANY LLC. Please note that this name applies to an English
translation of the subject’s name. Subject’s correct registered name is as per
heading.
Interviewed : Natia Kvartshava
(Accountant).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.54 |
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|
1 |
Rs.87.69 |
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Euro |
1 |
Rs.72.85 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.