MIRA INFORM REPORT

 

 

Report Date :

16.01.2013

 

IDENTIFICATION DETAILS

 

Name :

JINDAL PETROLEUM OPERATING COMPANY SHPS

 

 

Registered Office :

Building 57, Apartment 15, 5th Floor Iosebidze Street Saburtalo Region Tbilisi   

 

 

Country :

Georgia

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

11.06.2009

 

 

Com. Reg. No.:

B12138360  

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject engages in exploration and extraction of oil and gas.

 

 

No. of Employees :

400

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

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

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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


Company name  

 

Jindal Petroleum Operating Company ShPS (Correct)

JINDAL PETROLEUM OPERATING COMPANY LLC (Requested)

 

 

ADDRESS

 

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

 

 

SENIOR COMPANY PERSONNEL

 

   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

 

 

PAYMENTS

 

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

 

 

PRINCIPAL BANKERS

 

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

 

 

FINANCIAL INFORMATION

 

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.

 

 

LEGAL STATUS AND HISTORY

 

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

 

ACTIVITIES

 

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.

 

 

FACILITIES

 

The Company has the following facilities :

 

Administrative offices located at the heading address as well as branch offices located in Lilo District, Tbilsi.

 

 

REGISTERED OFFICE

 

Building 57, Apartment 15, 5th Floor

Iosebidze Street

Saburtalo Region    

Tbilisi   

 

 

SPECIAL NOTE

 

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

UK Pound

1

Rs.87.69

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%)

 

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.