MIRA INFORM REPORT

 

 

Report Date :

11.09.2013

 

IDENTIFICATION DETAILS

 

Name :

BHARAT PETROLEUM CORPORATION LIMITED

 

 

Registered Office :

Bharat Bhawan, Ballard Estate, Mumbai – 400001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

03.11.1952

 

 

Com. Reg. No.:

11-008931

 

 

Capital Investment / Paid-up Capital :

Rs.7230.800 Millions

 

 

CIN No.:

[Company Identification No.]

L23220MH1952GOI008931

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMB00573G

MUMB12464E

NGPB00602A

 

 

PAN No.:

[Permanent Account No.]

AAACB2902M

 

 

 

Legal Form :

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

 

 

Line of Business :

Subject is engaged in the business of refining of crude oil and marketing of petroleum products.

 

 

No. of Employees :

13429 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (77)

 

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Aa

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

Large

 

Maximum Credit Limit :

USD 665360000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a well established company having excellent track record.

 

Sales and profit of the company has increased in 2013. Overall financial position of the company appears to be strong and healthy.

 

Trade relations are trustworthy. Business is active. Payment terms are regular and as per commitment.

 

The company can be considered for 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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

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.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term rating: “AAA”

Rating Explanation

Highest degree of safety and lowest credit risk.

Date

29.07.2013

 

 

Rating Agency Name

CRISIL

Rating

Short term rating: “A1+”

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

29.07.2013

 

 

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 PARTED BY

 

MANAGEMENT NON CORPORATIVE (91-484-2722061)

 

 

LOCATIONS

 

Registered Office / LPG Business Head Quarter / Industrial and Commercial Business Head Quarters :

Bharat Bhawan, 4 and 6, Currimbhoy Road, Ballard Estate, Mumbai-400001, Maharashtra, India

Tel. No.:

91-22-22642112 / 22713000 / 004 / 22714000

Fax No.:

91-22-22642112 / 22616793 / 22713874 / 22713671

E-Mail :

okesy@bharatpetroleum.com

dixitns@bharatpetroleum.in

balasubramanian@bharatpetroleum.in

ssc@bharatpetroleum.in

Website :

http://www.bharatpetroleum.com

 

 

Factory  :

Lubricant Plant

 

Ø  Wadilube Installation, Mallet Road, Mumbai-400009, Maharashtra, India

 

Ø  24, Parganas, Budge-Budge 743319

 

Ø  35, Vaidyanatha Mudali Street, Tondiarpet, Chennai - 600081, Tamilnadu, India

 

 

Refinery :

 

Address :

Bharat Petroleum

Mahul, Chembur, Mumbai-400074, Maharashtra, India

Tel. No.:

91-22-25543151

Fax No.:

91-22-25542970

 

 

 

Kochi

Post Bag No. 2 Ambalamugal 682 302 (Ernakulam District) Kerala, India

 

 

Delhi Co-ordination Office:

ECE House, Post Box No.7, Connaught Circus, New Delhi-110001, India

Tel. No.:

91-11-23316891

Fax No.:

91-11-23316894

 

 

Retail Business Head Quarters : 

Maker Towers E and F, 12th Floor, Cuffe Parade, Mumbai-400005, Maharashtra, India

Tel. No.:

91-22-22189172

Fax No.:

91-22-22182304

 

 

Lubricants Business Head Quarters :

Bharat Bhavan-II,  Ballard Estate,  Mumbai-400001, Maharashtra, India

Tel. No.:

91-22-22713000 / 22714000

Fax No.:

91-22-22713801 / 25542970

 

 

Aviation Business Head Quarters : 

Plot Nos. A 5 and 6, Sector 1, Noida 201301, District Gautam Budh Nagar, Uttar Pradesh, India

Tel. No.:

91-120-24539155/ 24744820

 

 

DIRECTORS

 

As on: 31.03.2013

 

Name :

Mr. R. K. Singh

Designation :

Chairman and Managing Director (w.e.f 09.12.2010)

 

 

Name :

Mr. K. K. Gupta

Designation :

Director (Marketing) (w.e.f. 31.03.2011)

 

 

Name:

Mr. S.K. Joshi

Designation:

Director (Finance)

Qualification :

ACA, MBA

 

 

Name :

Mr. B. K. Datta

Designation :

Director (Refineries) (w.e.f. 01.08.2011)

  

 

Name:

Mr. S.K. Barua

Designation:

Director

 

 

Name :

I.P.S. Anand

Designation :

Director

 

 

Name:

Mr. S. Mohan

Designation:

Director (Human Resources) (up to 31.10.2011)

  

 

Name:

Mr. Haresh M. Jagtiani

Designation:

Director

  

 

Name:

Mr. N. Venkiteswaran

Designation:

Director

 

 

Name:

Mr. S. Varadarajan

Designation:

Director (Finance) (w.e.f. 1.9.2011)

 

 

Name :

R. N. Choubey

Designation :

Director General DGH, MOP and NG (w.e.f. 10.8.2012)

 

 

Name:

J. R. Varma

Designation:

Director (w.e.f. 10.8.2012)

 

 

Name:

B. Chakrabarti

Designation:

Director (w.e.f. 10.8.2012)

  

 

Name:

S. P. Gathoo

Designation:

Director (Human Resources) (w.e.f 3.11.2011)

 

 

KEY EXECUTIVES

 

Name :

Mr. P. K. Sinha

Designation :

Special Secretary and Financial Advisor, MOP and NG (Up To 28.2.2012)

 

 

Name :

Mr. A. K. Sharma

Designation :

Secretary (IP) Government Of Kerala

 

 

Name :

Mr. S.M. Misra

Designation :

Chief Vigilance Officer

 

 

Name :

Mr. A. K. Bansal

Designation :

Executive Director (Gas)

 

 

Name :

Mr. Anurag Deepak

Designation :

Executive Director (Pipelines)

 

 

Name:

Mr. D.M. Reddy

Designation:

Executive Director (Industrial and Commercial)

 

 

Name:

Ms. Dipti Sanzgiri

Designation:

Executive Director (Human Resources Development)

 

 

Name:

Mr. George Paul

Designation:

Executive Director (LPG)

 

 

Name:

Mr. G.S. Wankhede

Designation:

Executive Director (Logistics) Retail

 

 

Name:

Mr. I. Srinivas Rao

Designation:

Executive Director (Gas)

 

 

Name :

Mr. John Minu Mathew

Designation :

Executive Director (Technical), Kochi Refinery

 

 

Name :

Mr. K.V. Shenoy

Designation :

Executive Director (Retail) South

 

 

Name :

Mr. M.M. Chawla

Designation :

Executive Director (Projects), E&P

 

 

Name :

Mr. P. Balasubramanian

Designation :

Executive Director (Corporate Finance)

 

 

Name :

Mr. P. C. Srivastava

Designation :

Executive Director (Lubes)

 

 

Name :

Mr. P.S. Bhargava

Designation :

Executive Director (Planning)

 

 

Name :

Mr. P. Padmanabhan

Designation :

Executive Director (Refineries Coordination)

 

 

Name :

Mr. R.K. Mehra

Designation :

Executive Director (International Trade)

 

 

Name :

Mr. R.M. Gupta

Designation :

Executive Director (LPG)

 

 

Name :

Mr. R.P. Natekar

Designation :

Executive Director (Finance) Retail

 

 

Name :

Mr. S.B. Bhattacharya

Designation :

Executive Director (Aviation)

 

 

Name :

Mr. S. Krishnamurti

Designation :

Executive Director (Corporate Affairs)

 

 

Name :

Mr. S. P. Mathur

Designation :

Executive Director (Engineering and Projects)

 

 

Name :

Mr. S. Ramesh

Designation :

Executive Director (Lubes)

 

 

Name :

Ms. Sumita Bose Roy

Designation :

Executive Director (Audit)

 

 

Name :

Mr. T. Somanath

Designation :

Executive Director (Human Resources Services)

 

 

Name :

Mr. U.N. Joshi

Designation :

Executive Director (Planning and Infrastructure)

 

 

Name :

Mr. Arjun Hira

Designation :

General Manager (Brand and ARB) RHQ

 

 

Name :

Mr. A.K. Kaushik

Designation :

General Manager (IS - Infrastructure and Services)

 

 

Name :

Mr. Arun Singh

Designation :

Chief Procurement Officer

 

 

Name :

Mr. B.C. Roy

Designation :

General Manager (Audit)

 

 

Name :

Mr. Brij Pal Singh

Designation :

General Manager (Marketing Corporate)

 

 

Name :

Mr. G. Kalaiselvan

Designation :

General Manager (Internal Coaching)

 

 

Name :

Mr. Gautam Mukerji

Designation :

General Manager (Coordination)

 

 

Name :

Mr. E.A. Vimalnathan

Designation :

General Manager (Supplies and Distribution) Retail HQ

 

 

Name :

Mr. J. Dinaker

Designation :

(Corporate Treasury)

 

 

Name :

Mr. J.R. Akut

Designation :

General Manager (IIS Technology)

 

 

Name :

Mr. K. H. Subramanian

Designation :

General Manager (Retail) West

 

 

Name :

Mr. K.B. Narayanan

Designation :

General Manager (ERP - CC)

 

 

Name :

Mr. K. Padmakar

Designation :

General Manager (Corporate HRS)

 

 

Name :

Mr. K. N. Ravindran

Designation :

General Manager (Projects), Kochi Refinery

 

 

Name :

Mr. K. Sivakumar

Designation :

General Manager (Corporate Finance)

 

 

Name :

Mr. K.P. Chandy

Designation :

General Manager (Sales) LPG HQ

 

 

Name :

Mr. M.D. Agrawal

Designation :

General Manager (IS), Mumbai Refinery

 

 

Name :

Mr. M.M. Somaya

Designation :

General Manager (Brand and Public Relations)

 

 

Name :

Mr. M.P. Govindarajan

Designation :

General Manager (Human Resources), Kochi Refinery

 

 

Name :

Mr. M. Prasanna Kumar

Designation :

General Manager (Planning and Project Coordination)

 

 

Name :

Ms. Madhu Sagar

Designation :

General Manager (Employee Satisfaction Enhancement)

 

 

Name :

Ms. Monica Widhani

Designation :

General Manager (Urban Retailing)

 

 

Name :

Mr. P. Anandasundaresan

Designation :

General Manager (Sales) I and C, Mumbai

 

 

Name :

Mr. P.K. Bhatnagar

Designation :

General Manager (Finance) LPG HQ

 

 

Name :

Mr. P. Kumaraswamy

Designation :

General Manager (Projects)

 

 

Name :

Mr. Pramod Sharma

Designation :

General Manager (Retail) North

 

 

Name :

Mr. Prasad K. Panicker

Designation :

General Manager (Operations), Mumbai Refinery

 

 

Name :

Mr. P.V. Kumar

Designation :

General Manager (International Trade)

 

 

Name :

Mr. R. Chaturvedi

Designation :

General Manager (Retail) East

 

 

Name :

Mr. R. Rajamani

Designation :

Executive Assistant to C&MD

 

 

Name :

Mr. S.K. Agrawal

Designation :

General Manager (Legal)

 

 

Name :

Mr. S.K. Goel

Designation :

General Manager (Technical), Mumbai Refinery

 

 

Name :

Mr. Sharad K. Sharma

Designation :

General Manager Sales (Retail) HQ

 

 

Name :

Mr. Sudhir K. Malik

Designation :

General Manager (Sales) I&C, Mumbai

 

 

Name :

Ms. Sujata N. Chogle

Designation :

General Manager (Human Resources) Retail

 

 

Name :

Mr. S.S. Sunderajan

Designation :

General Manager (Operations), Mumbai Refinery

 

 

Name :

Mr. S. Vijayakumar

Designation :

General Manager (Human Resources), Mumbai Refinery

 

 

Name :

Mr. S.V. Kulkarni

Designation :

Company Secretary

 

 

Name :

Mr. Tapan Datta

Designation :

General Manager (Vigilance), CO

 

 

Name :

Mr. Thomas Chacko

Designation :

General Manger (Engineering and Advisor Services) Kochi Refinery

 

 

Name :

Mr. Thomas Zachariah

Designation :

General Manger (Engineering and Advisor Services) Kochi Refinery

 

 

Name :

Mr. Tomy Mathews

Designation :

General Manager (Technical), Kochi Refinery

 

 

Name :

Mr. Tomy Mathews

Designation :

General Manager (Operations), Kochi Refinery

 

 

Name :

Dr. U.V. Girish Kumar

Designation :

General Manager (IT and BI), Retail HQ

 

 

Name :

Mr. V. Anand

Designation :

General Manager (Sales Strategy), Retail HQ

 

 

Name :

Mr. V. Anand

Designation :

General Manager (Sales Strategy), Retail HQ

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.06.2013

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

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

397200120

54.93

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

397200120

54.93

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

 

 

Total shareholding of Promoter and Promoter Group (A)

397200120

54.93

(B) Public Shareholding

 

 

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

 

 

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

64182422

8.88

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

876675

0.12

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

6222222

0.86

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

51144018

7.07

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

73633503

10.18

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

196058840

27.11

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

 

 

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

40956500

5.66

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

 

 

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

16060912

2.22

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

2461342

0.34

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

70346534

9.73

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

618448

0.09

http://www.bseindia.com/include/images/clear.gifClearing Members

2270612

0.31

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

67457474

9.33

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

129825288

17.95

Total Public shareholding (B)

325884128

45.07

Total (A)+(B)

723084248

100.00

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

 

 

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

0

0.00

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

0

0.00

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

0

0.00

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

723084248

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of refining of crude oil and marketing of petroleum products.

 

 

Products :

ITEM CODE NO.

PRODUCT DESCRIPTION

2710

Petroleum Products

2902

Benzene

2710

Lubricants

 

 

Exports :

Not Divulged

 

 

 

 

Imports :

Not Divulged

 

 

 

 

Terms :

 

 

Selling :

Not Divulged

 

 

 

 

Purchasing :

Not Divulged

 

 

 

           

 

GENERAL INFORMATION

 

Suppliers :

Not Divulged

 

 

Customers :

Not Divulged

 

 

No. of Employees :

13429 (Approximately)

 

 

Bankers :

Ø  State Bank of India

Ø  Union Bank of India

Ø  Corporation Bank

Ø  Bank of India

Ø  State Bank of Patiala

Ø  Central Bank of India

Ø  Deutsche Bank

Ø  Standard Chartered Bank

Ø  Royal Bank of Scotland

Ø  ICICI Bank Limited

Ø  HDFC Bank Limited

Ø  State Bank of Travancore

Ø  IDBI Bank Limited

Ø  BNP Paribas

Ø  Calyon Bank

 

 

Facilities :

Secured Loan

31.03.2013

[Rs. in Millions]

31.03.2012

[Rs. in Millions]

Long Term Borrowing

 

 

Debentures

 

 

8.65% Secured Non-Convertible Debentures*

7000.000

0.000

7.73% Secured Non-Convertible Debenture 2012**

--

--

 

 

 

Short Term Borrowing

 

 

From banks

 

 

Working Capital loans / Cash Credit *

6604.700

2101.100

Working Capital loans / Cash Credit * Collateralized Borrowing and Lending Obligation **

6220.000

0.000

 

 

 

Total

19824.700

2101.100

 

NOTE:

 

Long Term Borrowing:

 

Non Current:

 

Particulars

Rs. In Millions

Date of Maturity

8.65% Secured Non-Convertible Debentures 2017

7000.000

08.10.2017

Loan from Oil Industry Development Board - 2017

1720.000

30.05.2017

Loan from Oil Industry Development Board - 2015

385.000

20.04.2015

Loan from Oil Industry Development Board - 2014

1107.500

15.09.2014

4.625% International Bonds

27194.700

25.10.2022

 

External Commercial Borrowings

5438.900

3.02.2017

10877.900

20.02.2016

1359.700

25.11.2014

 

Current

 

Particulars

Rs. In Millions

Date of Maturity

Loan from Oil Industry Development Board – 2017

250.000

31.03.2014

Loan from Oil Industry Development Board – 2013

192.500

20.04.2013

Loan from Oil Industry Development Board - 2014

1107.500

Apr-Sep 2013

Loan from Oil Industry Development Board - 2015

1172.500

Sep 2013

 

* The Corporation had allotted redeemable non-convertible 8.65% Debentures of face value of Rs. 7000.000 millions on 8th October 2012 redeemable on 8th October 2017 with a put call option on 8th October 2015. These are secured by first legal mortgage in English form by way of a Registered Debenture Trust Deed over the fixed assets of the Company, mainly Plant and Machinery at Mumbai Refinery.

 

** The Corporation had allotted redeemable non-convertible 7.73% Debentures of face value of Rs. 10000.000 millions on 12th October 2009. These are secured by first legal mortgage in English form by way of a Registered Debenture Trust Deed over the fixed assets of the Company, mainly Plant and Machinery at Mumbai Refinery. The same have been repaid in October 2012

 

Short Term Borrowing:

 

* Secured in favour of the participating banks ranking pari passu inter-alia by hypothecation of raw materials, finished goods, stock-in-process, book debts, stores, components and spares and all movables both present and future.

 

** Secured by Oil Marketing Companies GOI Special Bonds 2026 of Rs. 24500.000 millions and a bank guarantee of Rs. 5000.000 millions issued in favour of Clearing Corporation of India Limited.

 

Banking Relations :

--

 

 

Auditor 1 :

 

Name :

B. K. Khare and Company

Chartered Accountants

 

 

Auditor 2 :

 

Name :

K. Varghese and Company

Chartered Accountants

 

 

Joint Venture Companies :

Ø  Indraprastha Gas Limited

Ø  Petronet India Limited

Ø  Petronet CCK Limited

Ø  Petronet CI Limited

Ø  Petronet LNG Limited

Ø  Bharat Oman Refineries Limited

Ø  Maharashtra Natural Gas Limited

Ø  Central UP Gas Limited

Ø  Sabarmati Gas Limited

Ø  Bharat Stars Services Private Limited

Ø  Bharat Renewable Energy Limited

Ø  Matrix Bharat Pte. Limited

Ø  Delhi Aviation Fuel Facility Private Limited

Ø  Kannur International Airport Limited

Ø  GSPC India Gasnet Limited

Ø  GSPC India Transco Limited

Ø  IBV (Brazil) Petroleo Private Ltda.

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2500000000

Equity Shares

Rs.10/- each

Rs.25000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

723084248

Equity Shares

Rs.10/- each

Rs.7230.800 Millions

 

 

 

 

 

 

The Corporation has only one class of shares namely equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Corporation, the holders of equity shares will be entitled to receive the remaining assets of the Corporation in proportion to the number of equity shares held.

 

The Corporation declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

 

During the period ended 31st March 2013, the amount of dividend per share is Rs. 11. The total dividend appropriation for the year ended 31st March 2013 amounted to Rs. 9228.600 millions including Corporate Dividend Tax of Rs. 1274.700 millions (previous year Rs. 571.600 millions)

 

During the period, the Corporation has issued Bonus Shares in the ratio of 1:1 by capitalisation of General Reserve. The total number of Bonus Shares issued is 361542124 equity shares having face value of Rs. 10 each.

 

 

 

Reconciliation of No. of Equity Shares

 

Particulars

31.03.2013

Opening Balance

361542124

Shares Issued

-Bonus Shares

 

361542124

Shares Bought Back

--

Closing Balance

723084248

 

 

Shareholders holding more than 5% shares

 

Name of shareholder

31.03.2013

Government of India

% Holding

No. of shares

BPCL Trust for Investment in shares

54.93

397200120

Life Insurance Corporation of India

9.33

67457474

 

 

LISTING DETAILS:

 

 

Subject Stock Code :

 

BSE : 500547

 

NSE : BPCLEQ

 

 

Stock Exchange Place :

Ø  Bangalore Stock Exchange Limited

Ø  Calcutta Stock Exchange Association Limited

Ø  Cochin Stock Exchange Limited

Ø  Delhi Stock Exchange Assoc. Limited

Ø  Madras Stock Exchange Limited

Ø  MCX Stock Exchange

Ø  National Stock Exchange of India Limited

Ø  Over The Counter Exchange Of India Limited

Ø  The Stock Exchange, Mumbai

Ø  Uttar Pradesh Exchange Assoc Limited

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

7230.800

3615.400

3615.400

(b) Reserves & Surplus

159109.400

145523.200

136960.800

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

166340.200

149138.600

140576.200

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

55083.700

21590.900

26483.800

(b) Deferred tax liabilities (Net)

16557.200

14005.600

10075.400

(c) Other long term liabilities

608.200

559.600

412.500

(d) long-term provisions

4350.600

4099.600

7332.000

Total Non-current Liabilities (3)

76599.700

40255.700

44303.700

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

180584.200

190873.500

138096.900

(b) Trade payables

87831.100

128664.000

84144.800

(c) Other current liabilities

135336.200

133661.000

135639.600

(d) Short-term provisions

23182.500

13477.000

15998.300

Total Current Liabilities (4)

426934.000

466675.500

373879.600

 

 

 

 

TOTAL

669873.900

656069.800

558759.500

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

166240.300

165362.400

159363.200

(ii) Intangible Assets

663.800

761.400

630.100

(iii) Capital work-in-progress

24172.100

11165.300

9698.600

(iv) Intangible assets under development

25.300

25.300

25.300

(b) Non-current Investments

69421.000

49702.900

49456.800

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

25284.000

34589.700

31666.200

(e) Other Non-current assets

169.300

9.500

9.400

Total Non-Current Assets

285975.800

261616.500

250849.600

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

51609.000

59471.300

70913.800

(b) Inventories

166903.700

159480.600

153750.800

(c) Trade receivables

40251.300

63783.400

25326.500

(d) Cash and cash equivalents

23288.600

9788.500

3790.300

(e) Short-term loans and advances

12449.800

7925.800

5208.800

(f) Other current assets

89395.700

94003.700

48919.700

Total Current Assets

383898.100

394453.300

307909.900

 

 

 

 

TOTAL

669873.900

656069.800

558759.500

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

2401157.500

2119729.700

1516394.500

 

 

Other Income

16802.300

17017.800

16213.600

 

 

TOTAL                                    

2417959.800

2136747.500

1532608.100

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of raw materials consumed

974894.900

855629.700

627304.000

 

 

Purchases of stock-in-trade

1258196.000

1121591.500

781051.000

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

(14717.900)

(6016.000)

(20560.500)

 

 

Employee benefits expense

27688.700

22610.700

27636.300

 

 

Other expenses

94027.800

87245.300

65504.100

 

 

TOTAL                                    

2340089.500

2081061.200

1480934.900

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

77870.300

55686.300

51673.200

 

 

 

 

 

Less

FINANCIAL EXPENSES                                   

18252.400

17995.900

11170.300

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

59617.900

37690.400

40502.900

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

19261.000

18848.700

16554.000

 

 

 

 

 

 

PROFIT BEFORE TAX

40356.900

18841.700

23948.900

 

 

 

 

 

Less

TAX                                                     

13927.900

5729.000

8482.100

 

 

 

 

 

 

PROFIT AFTER TAX                            

26429.000

13112.700

15466.800

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

5000.000

5000.000

1810.600

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed dividend

NA

3977.000

5061.600

 

 

Corporate Dividend Tax on proposed dividend

NA

571.600

710.800

 

 

Transfer to General Reserve

NA

8564.100

6505.000

 

BALANCE CARRIED TO THE B/S

NA

5000.000

5000.000

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Exports on FOB basis #

184556.100

193156.100

123803.700

 

TOTAL EARNINGS

184556.100

193156.100

123803.700

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials (including crude oil)

763913.300

687842.900

443216.100

 

 

Capital Goods

2667.200

1482.900

1239.800

 

 

Components and spare parts (including packages, chemicals and catalysts

1523.500

539.500

441.800

 

TOTAL IMPORTS

768104.000

689865.300

444897.700

 

 

 

 

 

 

Earnings Per Share (Rs.)

36.55

18.13

42.78

 

# includes receipt of Rs. 17123.300 millions (previous year Rs. 22107.200 millions) in Indian currency out of the repatriable funds of foreign airline customers and Rs. 988.800 millions (previous year Rs. 488.100 millions) of INR exports to Nepal and Bhutan.

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
1.09

0.61

1.00

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.68

0.89

1.58

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
7.00

3.16

4.78

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.24

0.13

0.17

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
1.42

1.42

1.17

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.90

0.84

0.82

 

 

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

Yes

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

----------------------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

----------------------

26]

Buyer visit details

----------------------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

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

Yes

 

UNSECURED LOAN:

 

Particulars

31.03.2013

[Rs. in Millions]

31.03.2012

[Rs. in Millions]

Long Term Borrowing

 

 

Loan from Oil Industry Development Board

3212.500

4965.000

External Commercial Borrowings

17676.500

16625.900

4.625% International Bonds

27194.700

0.000

Inter-corporate deposit

5000.000

0.000

 

 

 

Short Term Borrowing

 

 

Rupee Loans

700.000

2000.000

Foreign Currency Loans

162759.500

186772.400

Commercial Papers

4300.000

0.000

 

167759.5

 

Total

220843.200

210363.300

 

 

LITIGATION DETAILS

 

CASE DETAILS

BENCH:-BOMBAY

 

Presentation Date:- 26/03/2013

Stamp No.:- WPST/15974/2013           Filing Date:- 13/06/2013

Petitioner:- PUNE MAHANAGAR PARIVAHAN MANDAL LIMITED, THROUGH CHIEF EXECUTIVE OFFICER-                                                                                        

 

Respondent:- BHARAT PRTEOLEUM CORPORATION LIMITED

 

Petn.Adv.:- R. M. PETHE          .

                                                                                                                     

District:- PUNE

Bench:- DIVISION

 

Status:- Pre-Admission                                                      

                                   

Next Date:- 20/06/2013                                               Stage:-                                    

 

Last Coram:- REGISTRAR (JUDICIAL)

Act :- Constitution of India

 

 

INDEX CHARGES:

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10400513

05/01/2013

7,000,000,000.00

SBICAP TRUSTEE COMPANY LIMITED

202, MAKER TOWER, 'E', CUFFE PARADE,, COLABA,, MUMBAI, Maharashtra - 400005, INDIA

B67010710

2

10079177

03/08/2009 *

100,000,000.00

STATE BANK OF INDIA

STATE BANK BHAVAN,, MADAM CAMA ROAD, MUMBAI, Maharashtra - 400021, INDIA

A66875428

3

90164106

30/01/2001

4,000,000,000.00

STATE BANK OF INDIA

VOLTAS HOUSE; 23; J.N. HEREDIA MARG, BALLARD ESTATE, MUMBAI, Maharashtra - 400001, INDIA

-

4

90165239

03/10/1997

2,468,000,000.00

STATE BANK OF INDIA

SERCURITIES AND SERVICES DIVISION, MUMBAI MAIN BR
ANCH; STATE BANK BUILDING; M.S. MARG, MUMBAI, Maharashtra - 400023, INDIA

-

5

90162015

27/02/2009 *

100,000,000,000.00

STATE BANK OF INDIA

STATE BANK BHAVAN, MADAM CAMA ROAD, MUMBAI, Maharashtra - 400021, INDIA

A58670241

 

* Date of charge modification

 

 

COMPANY OVERVIEW

 

The company was incorporated on 3rd November, 1952. Subject is a Government of India Enterprise listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited. The Corporation is engaged in the business of refining of crude oil and marketing of petroleum products. It has refineries at Mumbai and Kochi, LPG bottling plants and Lube blending plants. The Corporation's marketing infrastructure includes a vast network of Installations, Depots, Retail Outlets, Aviation Service Stations and LPG distributors.

 

COMPANY PERFORMANCE

 

Subject s Revenue from operations for 2012-13 amounted to Rs. 2506492.600 millions, reflecting an increase of 12.65 % over the previous year's revenues of Rs. 2225004.700 millions. The profit before tax for the year was Rs. 40356.900 millions, as compared to Rs. 18841.700 millions in 2011-12. After providing for tax, (including deferred tax) of Rs. 13927.900 millions, as against Rs. 5729.000 millions in 2011-12, the profit after tax for the year stood at Rs. 2,6429.000 millions, as against Rs. 13112.700 millions in the previous year. This is the highest level of profit after tax achieved by the Company in a single financial year.

 

During the year 2012-13, the Company has issued Bonus Shares in the ratio of 1:1. Accordingly, the paid-up equity capital stands increased to Rs. 7230.800 millions from the pre-bonus level of Rs. 3615.400 millions. Subject net worth as on 31st March, 2013 stands at Rs. 166340.200 millions, as compared to Rs. 149138.600 millions as at the end of the previous year.

 

The earnings per share in 2012-13 stood at Rs. 36.55 in 2012-13 as compared 18.13 (adjusted for 1:1 bonus issue in July 2012) in 2011-12. Internal cash generation during the year was higher at Rs. 40016.800 millions, as compared to Rs. 31349.900 millions in 2011-12. Subject contribution to the exchequer by way of taxes and duties during 2012-13 amounted to Rs. 380282.000 millions, as against Rs. 359943.000 millions in 2011-12

 

 

REFINERIES

 

MUMBAI REFINERY

 

During the year 2012-13, Mumbai Refinery recorded a throughput of 13.10 MMT of feedstock (crude oil and other feedstock), as against 13.35 MMT achieved in 2011-12. This represents capacity utilization of 109% as compared to 111% in the previous year. The throughput was marginally lower as compared to the previous year due to the planned shutdown of two crude processing units during the year.

 

For the year , refinery achieved its highest ever production of Propylene (C3), Motor Spirit (Euro III MS), High Speed Diesel (HSD), Bitumen, Linear Alkyl Benzene Feedstock (LABFS) and Lube Base Oils.

 

The Gross Refining Margin (GRM) for the year stood at USD 4.67 per barrel, as compared to USD 1.73 per barrel realized in 2011-12. The overall gross margin for the refinery in 2012-13 amounted to Rs. 24990.000 millions, as compared to Rs. 8310.000 millions in 2011-12. The higher GRM in Mumbai Refinery for the year 2012-13 can be attributed to higher distillate yield, favorable crude mix and better product cracks, coupled with reduction in octroi under-recovery on account of implementation of the State Surcharge (SSC) Recovery Scheme.

 

KOCHI REFINERY

 

Kochi Refinery achieved a throughput of 10.1 MMT in 2012-13, as compared to 9.56 MMT in 2011-12. This was the first year that the throughput at the refinery has crossed the 10 MMT mark. The capacity utilization of the refinery during the year was 106.3%, as against 100.6% in the previous year. During the year, Kochi Refinery recorded its highest ever production of Propylene, Euro III MS, Euro III HSD, Euro IV HSD and Aviation Turbine Fuel (ATF).

 

The GRM for the year was USD 5.36 per barrel amounting to Rs. 22110.000 millions, which is the highest ever achieved by Kochi Refinery in a single financial year. The refinery had earned a GRM of USD 3.09 per barrel in 2011-12 amounting to Rs. 10610.000 millions. The reasons for the higher GRM achieved in 2012-13, include better product cracks (realization), improved reliability of major units and improved steam management leading to lower fuel and loss.

 

 

PROJECTS

 

Integrated Refinery Expansion Project at Kochi

The Board of Directors, at their meeting held on 30th March, 2012, approved the proposal for undertaking the Integrated Refinery Expansion Project (IREP) at Kochi

 

The project will involve a capital outlay of Rs. 142250.000 millions. The environment clearance for the project from the Ministry of Environment and Forests has been received on 22nd November, 2012. The project is expected to be mechanically completed within 42 months from this date. The project envisages capacity expansion of Kochi refinery by 6 Million Metric Tonnes Per Annum (MMTPA), taking it to 15.5 MMTPA and modernization of processing facilities to produce auto fuels conforming to Euro IV/ Euro V specifications. It also envisages refinery residue stream up gradation to value added products.

 

The process packages of all new units viz. Crude and Vacuum Unit, VGO Hydro Treater Unit, Petro FCC Unit, Diesel Hydro Treater Unit, Delayed Coker Unit, Sulphur Unit and Tail Gas Treater Unit have been received. Detailed engineering of these units is currently in progress. Revamp of the existing Semi Regenerative Reformer into an Isomerisation Unit is also being done as part of the IREP project.

 

Civil work at the site is currently underway. Major long lead items like CDU/VDU columns, DHDT reactors and VGO HDT reactor have been ordered. Major contracts like the Heater package of CDU/VDU, civil/structural jobs of CDU/VDU, DCU and off sites have been awarded. Tendering and ordering of other equipment and contracts are in progress. The Industrial Entrepreneur Memorandum and Essentiality Certificate have been received from Ministry of Industry and Ministry of Petroleum and Natural Gas, which would enable import of capital goods for the project at concessional duty rates. As on 30th June, 2013, the project has achieved physical progress of 8.8% and the cumulative expenditure stood at Rs. 4100.000 millions.

 

subject also plans to enter the Petrochemicals segment by using the feedstock to be produced at the refinery after commissioning of the IREP subject is examining several options in this regard including implementing the petrochemicals initiative as a joint venture or by direct sourcing of technology from Licensors. This venture is estimated to involve an outlay of approximately Rs. 50000.000 millions.

 

Capacity Augmentation of Kota-Piyala Section of MMBPL Pipeline

 

The project envisages enhancement of capacity of the Kota-Piyala Section of the Mumbai-Manmad-Manglia-Piyala-Bijwasan pipeline from 2.54 MMTPA to 4.4 MMTPA, to evacuate products from Bina Refinery and also meet the growing demand for petroleum products in the Northern region.

 

The approved project cost is Rs. 1528.900 millions. The project is mechanically complete and commissioning activities are currently in progress. As on 30th June, 2013, the cumulative expenditure on the project was Rs. 1154.800 millions.

 

Kota Jobner Pipeline Project

 

The project envisages lying of a 210 km long and 14"(35.6 cms) dia. cross-country pipeline from Kota to Jobner (near Jaipur) for economic transportation of MS/SKO/ HSD from subject’s Mumbai Refinery as well as BORLLs refinery at Bina. The estimated as-built project cost is Rs. 2762.700 millions.

 

Petroleum and Natural Gas Regulatory Board (PNGRB) authorization for laying the pipeline and environmental clearance has been received. The project has achieved an overall physical progress of 19% with cumulative expenditure of Rs. 122.800 millions as on 30th June, 2013. The project is scheduled for completion in December 2014.

 

Continuous Catalytic Regeneration Reformer (CCR) Facilities and Hydrocracker Revamp at Mumbai Refinery

 

The project has been undertaken to increase the production of Euro IV grade MS and HSD at Mumbai Refinery. This involves revamping of the Hydrocracker Unit to increase its capacity from 1.75 MMTPA to 2.0 MMTPA and setting up a new Continuous Catalytic Regeneration Reformer Unit (CCR) of 1.2 MMTPA capacities with matching new Naphtha Hydro Treater Unit (NHT) and new Pressure Swing Adsorber (PSA) Units and other utilities/offsite facilities at an approved cost of Rs. 18270.000 millions.

 

Hydrocracker revamp has been completed. As regards the CCR facilities, all site development activities, erection of Hydrogen rich gas compressor, Recycle gas compressor and PSA Compressor and Catalyst loading PSA have been completed. Piping works for the compressors and work on cooling towers are in progress. As on 30th June, 2013, the project has achieved an overall progress of 92.47% with a cumulative expenditure of Rs. 14392.100 millions.

 

Replacement of CDU /VDU at Mumbai Refinery

 

The project envisages installation of a state-of-the-art integrated Crude and Vacuum Distillation Unit of 6 MMTPA capacity to improve mechanical integrity and enhance safety and environment in place of existing old standalone Crude and Vacuum Units.

 

The approved cost of the project is Rs. 14190.000 millions. Petroleum and Explosive Safety Organisation (PESO) clearance and environment clearance have been obtained. The basic design and engineering package has been completed. Orders have been placed for the Crude and Vacuum Column, LGO Stripper Column and CS Column. Structural fabrication of the new shop complex is completed. Dismantling of the old shop complex is in progress. The project has achieved an overall physical progress of 28.75% with cumulative expenditure of Rs. 966.400 millions as on 30th June, 2013. The project is scheduled for completion in December 2014.

 

Pipeline for Transfer of LPG from BPCR / HPCR Mumbai to Uran

 

The project envisages laying a 28 km pipeline (12 kms offshore and 16 kms onshore) and provision of 3 x 900 MT Mounded Storage Vessels (MSVs) at subject Uran LPG Plant. 10" dia (25.4 cms) pipeline is being laid to transfer LPG from SUBJECT's Mumbai refinery and the Mumbai refinery of Hindustan Petroleum Corporation Limited (HPCL). The pipeline portion of the project costing Rs. 2295.900 millions will be shared equally with HPCL. The MSVS are expected to cost around Rs. 472.400 millions and will be on SUBJECT's account.

 

The onshore pipeline laying and 10 km of offshore pipeline lying has been completed. The balance offshore pipeline laying will be taken up after the monsoon. The forest clearance and permission for cutting mangroves from the Bombay High Court has been received. The project has achieved an overall physical progress of 97% with cumulative expenditure of Rs. 2284.700 millions as on 30th June, 2013. The project is expected to be completed by September 2013.

 

SUBSIDIARY COMPANIES

 

Numaligarh Refinery Limited (NRL)

 

NRL was incorporated in 1993 with an authorized capital of Rs. 10000.000 millions. The Company had commissioned a 3 MMTPA refinery at Numaligarh in Assam. NRL was conferred the status of 'Category-I' Miniratna PSU in the year 2003. As on 31st March, 2013, subject holds 61.65% of the paid up equity in NRL.

 

During the year 2012-13, the Numaligarh refinery achieved a throughput of 2.48 MMT, as against 2.82 MMT in 2011-12. This represents a capacity utilization of 82.7%, as compared to 94% in the previous year. The lower throughput during the year is mainly due to lower crude receipt of 2.45 MMT, as compared to 2.82 MMT received in 2011-12. The refinery achieved a distillate yield of 91.11% and Specific Energy Consumption (SEC) of 59.7 MBN. NRLLs distillate yield continues to be the highest amongst the public sector refineries in the country. NRLLs GRM in 2012-13 stood at USD 10.52 per barrel, as compared to USD 12.45 per barrel in 2011-12. The overall gross margin for the refinery in 2012-13 amounted to Rs. 10400.900 millions, as against Rs. 12353.300 millions in 2011-12.

 

NRL registered a sales turnover of Rs. 87528.800 millions for the financial year ending 31st March, 2013, as compared to Rs. 140678.600 millions in the previous year. Sales turnover during 2012-13 was lower compared to that of the previous year, due to lower sales volume and lesser realization from product sales to subject. A portion of the discount on crude oil from upstream companies to subject, as a part of the subsidy sharing mechanism put in place by the Government of India, is routed through NRL. This is reflected in the lower prices of finished product sold by NRL to subject, which has contributed to the lower sales turnover during the year.

 

NRLLs profit after tax for 2012-13 was Rs. 1442.600 millions, as against Rs. 1837.000 millions in the previous year. The reduction in profit was mainly due to lower crude throughput.

 

Earnings per share (EPS) for the year 2012-13 were Rs. 1.96, as compared to Rs. 2.50 in 2011-12. The Board of Directors of NRL has recommended a dividend of Rs. 1.00 per share of Rs. 10.00 each for 2012-13 in line with the previous year.

 

NRLLs net worth as on 31st March 2013 increased to Rs. 27574.500 millions from Rs. 26992.500 millions in the previous year. NRLLs book value per share as on 31st March 2013 rose to Rs. 37.48 from Rs. 36.69 as on 31st March 2012.

 

Bharat Petro Resources Limited (BPRL)

 

BPRL was incorporated in the year 2006 as a wholly owned subsidiary company of subject with the objective of implementing subject plans in the upstream exploration and production sector. As on 31st March 2013, the authorized capital of BPRL is Rs. 30000.000 millions and the subscribed and paid up share capital of BPRL is Rs. 23700.000 millions. The exploration and production activities of BPRL and its subsidiary companies extend to 25 blocks worldwide, which are in various stages of exploration/ appraisal. Of this, 11 blocks are in India and 14 are abroad. Besides India, BPRL has Participating Interests (PI) in blocks in Australia, Brazil, East Timor, Indonesia, and Mozambique.

 

BPRL manages many of its overseas projects through subsidiary companies. In 2006, BPRL had formed a wholly owned subsidiary company, Bharat Petro Resources JPDA Limited, through which it holds a PI of 20% in Block-JPDA 06-103, in East Timor in the Joint Petroleum Development Area (between Australia and East Timor). Further, BPRL has incorporated a wholly owned subsidiary company, BPRL International BV, in the Netherlands which in turn has three wholly owned subsidiary companies viz. BPRL Ventures BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia BV. BPRL Ventures BV has a 50% stake in IBV Brasil Petroleo Limitada, which has participating interests ranging from 20% to 40% in 10 blocks in offshore Brazil. BPRL Ventures Mozambique BV has participating interest of 10% in a block in Mozambique, and BPRL Ventures Indonesia BV holds participating interest of 12.5% in a block in Indonesia.

 

All the blocks of BPRL are under various stages of exploration/appraisal. BPRL has recorded income of Rs. 13.800 millions and a consolidated loss of Rs. 6640.900 millions for the financial year ending 31st March, 2013. The loss was mainly due to interest charges, operators Ganda expenditures and relinquishment of participating interest in few blocks in India, Australia and the United Kingdom in view of poor prospectively assessed, based on drilling results.

 

 

JOINT VENTURE COMPANIES

 

Bharat Oman Refineries Limited (BORL)

 

BORL, promoted by subject with equity participation from Oman Oil Company, S.A.O.C. (OOC) has commenced operations of its 6 MMTPA grass roots refinery at Bina. As on 31st March 2013, both subject and OOC have an equity stake of 50% each in BORLLs paid up share capital of Rs. 17772.300 millions. Subject has subscribed to 786.100 millions warrants at a cost of Rs. 9356.800 millions. Each warrant represents the right to subscribe to one equity share of face value of Rs. 10 each at a later date. In addition, during the year 2012-13, subject subscribed to 361.100 millions warrants at a cost of Rs. 6500.000 millions with the warrants carrying right to subscribe, at a later date, for such number of equity shares of face value of Rs. 10 each or zero coupon compulsorily convertible security compulsorily convertible into equity shares, arrived at the prescribed conversion ratio. Subject has also given an unsecured loan of Rs. 13541.000 millions. Till the time the total equity of BORL is tied up, subject and OOC will each hold 50% shares in BORL. Also, the state of Madhya Pradesh has a stake in BORL and has subscribed 26.900 millions warrants representing the right to subscribe to 26.900 millions of equity shares of face value of Rs. 10 each at a later date. It is expected that subject and OOC will ultimately hold 49% and 26% respectively in the fully diluted equity of BORL.

 

Bina Refinery, after commencement of its integrated operations in June 2011, stabilised its operations during the year 2012-13 and all plants were tested individually for more than 100% capacity utilization. During the year 2012-13, which was the first full year of operations, the refinery recorded a crude intake of 5.7 MMT at an overall capacity utilization of 96%. The Refinery's GRM for the year 2012-13 stood at USD 9.1 per barrel with an overall gross margin of Rs. 20460.000 millions.

 

BORL recorded a sales turnover of Rs. 281426.700 millions in the financial year 2012-13. The net loss for the year stood at Rs. 2478.600 millions, as compared to Rs. 11159.400 millions in the previous year.

 

Petronet LNG Limited (PLL)

 

PLL was formed in April, 1998 for importing LNG and setting up LNG terminals with facilities like jetty, storage, regasification etc. to supply natural gas to various industries in the country. The Company has an authorised capital of Rs. 12000.000 crore and paid up capital of Rs. 7500.000 millions. PLL was promoted by four public sector Company’s viz. subject, Indian Oil Corporation (IOC), Oil and Natural Gas Corporation Limited (ONGC) and GAIL (India) Limited (GAIL). Each of the promoters holds equity capital of the company. PLL is a listed company with the public holding 34.80% of the paid up share capital of the company. subject equity investment in PLL currently stands at Rs. 987.500 millions. As at 31st March, 2013, PLL had net worth of Rs. 44496.900 millions with a book value of Rs. 59.33 per share.

 

PLL recorded a sales turnover of Rs. 314674.400 millions in the financial year ended as on 31st March, 2013, as compared to Rs. 226958.600 recorded in 2011-12. The net profit for the year stood at Rs. 11492.800 millions, as compared to Rs. 10575.400 millions in the previous year. The earnings per share for the year 2012-13 amounted to Rs. 15.32 as compared to Rs. 14.10 in 2011-12. PLL has declared dividend of Rs. 2.50 per share for the financial year 2012-13, the same as in the previous year. 12.5% of the

 

Indraprastha Gas Limited (IGL)

 

IGL, a Joint Venture Company with GAIL as the other co-promoter, was set up in December, 1998 with an authorised capital of Rs. 2200.000 millions for implementing the project for supply of Compressed Natural Gas (CNG) to the household and automobile sectors in Delhi. The paid up share capital of the Company is Rs. 1400.000 millions. Subject invested Rs. 315.000 millions in IGL for 22.5% stake in its equity. A listed company, IGL has commissioned over 282 CNG stations which supply the environment friendly fuel to more than 675000 vehicles. IGL has more than 375000 domestic PNG customers and over 922 commercial customers in Delhi. The Company is also extending its business to Greater Noida and Ghaziabad. Recently, IGL has acquired 50% of the equity held by financial institutions in Central UP Gas Limited (CUGL), a Joint Venture Company promoted by subject and GAIL.

 

IGL has registered a turnover of Rs. 37240.600 millions and a profit after tax of Rs. 3541.300 millions for the financial year ending as on 31st March 2013, as compared to a turnover of Rs. 27901.000 millions and a profit after tax of Rs. 3064.300 millions in the previous year. IGL has declared a dividend of Rs. 5.50 per share, against a dividend of Rs. 5.00 per share in the previous year. IGLLS net worth was Rs. 14929.900 millions with a book value of Rs. 106.64 per share as at 31st March 2013. The Petroleum and Natural Gas Regulatory Board (PNGRB) had determined the per unit network tariff and compression charge for IGL's CGD Network and made it applicable with retrospective effect from 01.04.2008. IGL had filed a writ petition against the order of PNGRB before the Hon'ble Delhi High Court. The Court had quashed the order holding that the PNGRB is not empowered to fix any component of network tariff or compression charge. PNGRB has filed a special leave petition before the Hon'ble Supreme Court of India against the order of the Hon'ble High Court of Delhi and the matter is still pending in the Hon'ble Supreme Court. The outcome of the appeal could have an impact on the financials of the Company.

 

Sabarmati Gas Limited (SGL)

 

SGL, a Joint Venture Company promoted by subject and Gujarat State Petroleum Corporation (GSPC), was incorporated on 6th June 2006 with an authorised capital of Rs. 1000.000 millions for implementing the City Gas distribution project for supply of CNG to the household and automobile sectors in Gandhinagar, Mehsana and Sabarkantha Districts of Gujarat. The paid up share capital of the Company is Rs. 200.000 millions.

 

Both the promoters have a stake of 25% each in the equity capital of SGL and the balance has been subscribed to by financial institutions. SGL has set up 20 CNG stations. SGL has achieved a turnover of Rs. 8815.500 millions and loss of Rs. 342.700 millions for the financial year ending 31st March, 2013, as against a turnover of Rs. 7045.700 millions and profit after tax of Rs. 75.100 millions in the previous year. The Company has not proposed dividend on equity shares for the financial year ending 31st March, 2013, as against Rs. 1.50 per equity share declared in the previous year.

 

Central UP Gas Limited (CUGL)

 

CUGL is a Joint Venture Company set up in March, 2005 with GAIL as the other partner for implementing the project for supply of CNG to the household, industrial and automobile sectors in Kanpur and Bareilly in Uttar Pradesh. The authorised and paid up share capital of the Company is Rs. 600.000 millions. The joint venture partners have each invested Rs. 150.000 millions in the joint venture, with each partner having an equity stake of 25% in the company. The balance equity share capital had been subscribed to by the financial institutions viz. IDFC Private Equity, Asian Development Bank (ADB) and a subsidiary of IL and FS Investment Managers. The financial institutions have sold their stake in the month of June 2013 to Indraprastha Gas Limited which now holds 50% of CUGL's equity. CUGL has set up 12 CNG stations and is carrying on PNG operations.

 

CUGL has achieved a turnover of Rs. 1611.500 millions and profit of Rs. 209.800 millions for the financial year ending 31st March 2013, as compared to a turnover of Rs. 1247.100 millions and a profit of Rs. 211.200 millions in the previous year. The EPS for the year stood at Rs. 3.50 as against Rs. 3.52 in 2011-12. The Board of Directors has recommended the payment of final dividend at Rs. 0.35 per share in addition to the payment of interim dividend of Rs. 0.90 per share in June 2013 for the current year, as against Rs. 1.25 per share for the previous year.

 

Maharashtra Natural Gas Limited (MNGL)

 

MNGL was set up on 13th January 2006 as a Joint Venture Company with GAIL for implementing the project for supply of CNG to the household, industrial and automobile sectors in Pune and its nearby areas. The Company was incorporated with an authorised share capital of Rs. 1000.00 millions. The paid up share capital of the Company is Rs. 950.000 millions. Subject and GAIL have invested Rs. 225.000 millions each in MNGL's equity capital. The Maharashtra Government provisionally agreed to hold a 5% stake in the Company. The balance equity shares have been subscribed by IDFC Private Equity, ILFS and Axis Bank. The Company has set up 17 CNG stations in the financial year 2012-13.

 

MNGL has achieved a turnover of Rs. 1993.100 millions for the financial year ending 31st March, 2013 and profit of Rs. 354.100 millions for the year, as against a turnover of Rs. 859.900 millions and profit of Rs. 107.400 millions in the previous year. The MNGL Board has proposed a dividend of Rs. 0.80 per equity share for the financial year ending 31st March 2013, as against Rs. 0.30 per equity share declared in the previous year.

 

Bharat Stars Services Private Limited (BSSPL)

 

BSSPL, a Joint Venture Company promoted by subject and ST Airport Pte Limited, Singapore was incorporated on 13th September, 2007 for providing into-plane fuelling services at the new Bengaluru International Airport. The Company was incorporated with an authorised share capital of Rs. 200.000 millions. The paid up share capital of BSSPL is Rs. 200.000 millions.

 

The two promoters have each subscribed to 50% of the equity share capital of BSSPL and subject’s present investment stands at Rs. 100.000 millions. The Company, which commenced its operations at the new international airport in Bengaluru from May, 2008 has also incorporated a wholly owned subsidiary for implementing into-plane fuelling services at the new T3 Terminal of Delhi International Airport. The Company is also planning to enter Calicut Airport and other nearby airports.

 

BSSPL has achieved a turnover of Rs. 116.900 millions for the financial year ending 31st March 2013 and profit of Rs. 19.500 millions, as against a turnover of Rs. 103.800 millions and a profit of Rs. 15.000 millions in the previous year. The Board has recommended a dividend of Rs. 0.25 per equity share for the financial year ending 31st March, 2013, as against Rs. 0.20 per equity share declared in the previous year.

 

Bharat Renewable Energy Limited (BREL)

 

BREL was incorporated on 17th June, 2008 for undertaking the production, procurement, cultivation and plantation of horticulture crops such as Karanj, Jathropha and Pongamia, trading, research and development and management of all crops and plantation including Bio-fuels in the State of Uttar Pradesh, with an authorized capital of Rs. 30 millions. The Company has been promoted by subject with Nandan Cleantec Limited (erstwhile Nandan Biomatrix Limited), Hyderabad and the Shapoorji Pallonji group, through their

 

Affiliate SP Agri Management Services Private Limited. Each of the partners has an equal stake in the equity capital of the joint venture. The project envisages plantation of Jathropha in 1 million acres (404686 hectares) of marginal land, which has the potential of generating employment/self employment for 1 million people and producing 1 million tonnes of Bio-diesel with an investment of Rs. 22000.000 millions over the next 10-15 years.

 

The Government of Uttar Pradesh has approved the project under "Jeevan Jyoti," a scheme of the Government which has the benefit of release of funds under the Mahatma Gandhi National Rural Employment Guarantee (MGNREG) scheme.

 

BREL has recorded a turnover of Rs. 4.100 millions for the financial year ending 31st March 2013 and incurred a loss of Rs. 21.300 millions, as against a miscellaneous income of Rs. 0.500 millions and a loss of Rs. 18.500 millions in the previous year.

 

The Shapoorji Pallonji group has recently indicated their intention to exit the joint venture and have offered their holdings to the existing promoters in the proportion of their current shareholding.

 

Matrix Bharat Pte Limited (MBPL)

 

MBPL is a Joint Venture Company incorporated in Singapore on 20th May, 2008 for carrying on the bunkering business and supply of marine lubricants in the Singapore market, as well as international bunkering including expanding into Asian and Middle East markets. The Company has been promoted by subject and Matrix Marine Fuels LP USA, an affiliate of the Mabanaft group of companies, Hamburg, Germany. The authorised capital of the Company is USD 4 million, which is equivalent to Rs. 200.000 millions. Both the partners have contributed equally to the share capital. Matrix Marine Fuels LP USA has subsequently transferred their share and interest in the joint venture in favour of Matrix Marine Fuels Pte Limited, Singapore another affiliate of the Mabanaft group. The Company was previously known as Matrix Bharat Marine Services Pte Limited before it was changed to Matrix Bharat Pte Limited.

 

MBPL has achieved a turnover of USD 566.97 Million and incurred loss of USD 3.98 Million for the year ending 31.12.2012, as compared to a turnover of USD 928.71 Million and a profit of USD 0.33 Million in the previous year.

 

Petronet India Limited (PIL)

 

Subject has 16% equity participation with an investment of Rs. 160.000 millions in PIL, which was formed as a non-government financial holding company for the development of pipeline network throughout the country. PIL has facilitated pipeline access on a common carrier principle through joint ventures for pipelines put up by them viz. Vadinar-Kandla, Kochi-Coimbatore-Karur and Mangalore-Hassan-Bangalore. PIL registered an income of Rs. 0.26 millions and a net loss of Rs. 0.09 millions for the financial year ending 31st March 2013, as against an income of Rs. 2.300 millions and a net loss of Rs. 2.500 millions in the previous year. The new pipeline policy announced by the Government of India some time back has affected the future of the company, as interested companies are permitted to undertake pipeline projects and PIL does not have any new projects in hand. As such, promoters and other investors in PIL have reached a conclusion that continuation of PIL would not be viable. Accordingly, the winding up process has been initiated and the process of divesting PIL's 26% equity in the three joint venture companies promoted by it is in progress. The Board of Directors of subject, in its meeting held in December 2006, accepted PILLs offer to buy 26% stake in the equity of Petronet CCK Limited where subject already holds 49% of the paid up share capital. This is awaiting receipt of approval of the Government of India.

 

Petronet CCK Limited (PCCKL)

 

Subject has invested a sum of Rs. 490.000 millions for a 49% stake in the equity capital of PCCKL, a Joint Venture Company promoted with PIL with an authorised capital of Rs. 1350.000 millions. The paid up share capital of the Company is Rs. 1000.000 millions. The Company owns the 292 km long multi-product Kochi-Karur pipeline from subject installation at Irimpanam to Karur for transportation of MS, HSD and SKO. The pipeline commenced commercial operations from September, 2002.

 

The pumping volume during the year 2012-13 amounted to 2.60 MMT, as against 2.21 MMT in the previous year. PCCKL registered a turnover of Rs. 1015.900 millions and loss of Rs. 188.300 millions for the financial year ending 31st March 2013, as compared to a turnover of Rs. 695.000 millions and net profit of Rs. 203.400 millions in the previous year. Subject has initiated steps subject to completion of all formalities to purchase the 26% share of PIL in PCCKL.

 

Delhi Aviation Fuel Facility Private Limited (DAFFPL)

 

A Joint Venture Company, Delhi Aviation Fuel Facility Private Limited was promoted by subject, IOC and Delhi International Airport Limited (DIAL) for implementing Aviation Fuel facility for the T3 terminal at Delhi International Airport. The paid up share capital of the Company is Rs. 1640.000 millions. Subject and IOC have subscribed to 37% of the share capital of the Joint Venture, while the balance has been taken by DIAL. Subject onsite assets at the Delhi Airport were transferred to the Joint Venture. DAFFPL has registered a turnover of Rs. 953.600 millions and net profit of Rs. 296.300 millions for the financial year ending 31st March 2013, as against a turnover of Rs.1227.500 millions and net profit of Rs. 35.91 in the previous year. The Company has proposed a dividend of Rs. 1.20 per equity share for the financial year ending 31 March, 2013, as against Rs. 2.50 per equity share declared in the previous year.

 

Kannur International Airport Limited (KIAL)

 

The Government of Kerala has promoted KIAL as a public limited company to establish, operate, manage, undertake and maintain airports and allied infrastructure facilities at Kannur and/or other parts of India and to provide other services, either individually or in association with other undertakings or companies in India or abroad. To start with, KIAL would set up an Airport at Kannur in the state of Kerala at an estimated project cost of Rs. 14140.000 millions, of which Rs. 7840.000 millions will be financed through equity and the balance sum of Rs. 630 millions will be financed by way of borrowings.

 

Subject has signed an MOU with KIAL for building a new Airport at Kannur. The Board has approved the proposal for subject to invest Rs. 1700.000 millions for 21.68% equity stake in the Company. Of this, subject has made an initial equity contribution of Rs. 400.000 millions.

 

GSPL India Transco Limited

 

Subject has signed a Joint Venture Agreement in April, 2012 with Gujarat State Petronet Limited, IOC and HPCL for laying the Mehsana-Bhatinda (MBPL) and Bhatinda-Jammu-Srinagar (BJSPL) gas pipelines. GSPL India Transco Limited will be executing the project and subject will contribute 11% of the total equity of the Company. The balance will be contributed by GSPL (52%), IOC (26%) and HPCL (11%).

 

Subject has made the initial equity contribution of Rs. 77.000 millions. This being the first year of operations, GSPL India Transco Limited earned a miscellaneous income of Rs. 12.300 millions and net profit of Rs. 8.300 millions for the financial year ending 31st March 2013.

 

GSPL India Gasnet Limited

 

Subject has signed a Joint Venture Agreement on 30th April, 2012 with Gujarat State Petronet Limited, IOC and HPCL for laying the Mallavaram-Bhopal-Bhilwara-Vijaipur(MBBVPL) gas pipeline. GSPL India Gasnet Limited will be executing the project and SUBJECT will contribute 11% of the Company's total equity capital. The balance will be contributed by GSPL (52%), IOC (26%) and HPCL (11%).

 

Subject has made the initial equity contribution of Rs. 84.700 millions. This is the first year of operations of GSPL India Gasnet Limited and the Company earned a miscellaneous income of Rs. 9.500 millions and net profit of Rs. 6.500 millions for the financial year ending 31st March 2013.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

ECONOMIC DEVELOPMENTS

 

The economic environment continued to remain challenging in 2012-13. The pace of economic recovery remained slow. In the United States of America (USA), there are signs of improvement, although concerns remain on the sustainability of the pace of economic growth. Japan is also showing signs of coming out of a sustained spell of economic slowdown. Major economies in Europe have had to deal with recessionary pressures leading to high levels of unemployment, fiscal tightening and sluggish growth. The Euro zone crisis continues to simmer. Although some concerted action has averted an immediate collapse, the problems are far from being resolved. The tough measures imposed in several countries of Europe have had a major impact on key sectors like banking and on the economy as a whole. The pace of growth in China was also slow. The Indian economy had to face a very challenging year with a sharp slowdown in the growth of industrial output and exports. This has been reflected in the significant reduction in the growth rate of the economy when compared to some of the earlier years.

 

Even as the growth in the Gross Domestic Product (GDP) slowed, the Reserve Bank of India (RBI) has been concerned about the inflationary pressures on the Indian economy. This has led to the RBI taking a hawkish approach towards the interest rates. Although there have been demands that interest rates need to be reduced so as to stimulate growth in the economy, the central bank has been guarded in its approach. The wholesale price inflation, which had been declining since January 2013, has once again gone up in June 2013. Also, the retail inflation levels remain high. During the year 2012-13, the RBI reduced the policy rates by 100 basis points, the Statutory Liquidity Ratio by 100 basis points and the Cash Reserve Ratio by 75 basis points. In addition, the bank continued to inject liquidity through Open Market operations. Considering the fact that inflation levels remain a matter of concern, the Current Account Deficit (CAD) is high and the rupee is under pressure, the prospects of interest rates being reduced in the near term do not look bright. The recent sharp depreciation in the value of the Indian rupee with reference to the dollar has further worsened the situation. While a number of measures are being taken to tackle the situation, the difficult period is expected to continue for some time.

 

Considering the high domestic rates of interest, Indian companies had gone in for foreign currency borrowings in order to reduce the financing costs. However, the sharp depreciation in the Indian rupee will impose a big burden especially if the loan repayments have not been hedged. There was substantial inflow of investment by Foreign Institutional Investors during the year. However, the situation has changed in the last few months during which period many foreign investors have withdrawn from the Indian capital market. The depreciation of the rupee has also come in the way of the Indian economy benefiting from the fall in the international prices of crude oil.

 

 

The Government of India is working towards reducing the current account deficit and arresting the fall in the value of the rupee. The Government has announced a number of policy decisions which are aimed at attracting foreign investment in many sectors of the economy.

The difficult environment has had an impact on the Indian economy. As per the provisional estimates released by the Government of India, the Gross Domestic Product (GDP) is estimated to have grown at a rate of 5% in 2012-13 as compared to 6.2% in the previous year. This represents a significant decline in the growth rate when compared to the last few years. The weakness in industrial activity, supply bottlenecks and the slowdown in the services sector have all contributed to the decline in the growth rate of the GDP. The challenge before policy makers is to get the economy back to the days of robust growth, while at the same time ensuring that inflationary forces are kept at bay.

 

Almost all the sectors of the economy have continued to see lower growth rate as compared to the previous year. The agriculture sector has seen the growth rate come down from 3.6% in 2011-12 to around 1.9% in 2012-13. The growth in the manufacturing sector is likely to be as low as 1% in 2012-13 as against 2.7% in 2011-12. The decline in the rate of growth of the services sector has also contributed in pulling down the overall growth rate of the economy. The days ahead are therefore, expected to be extremely challenging as companies will need to operate in an environment where cost of funds would be high and the exchange rates could be highly volatile. The moderation in the prices of commodities like oil could provide some relief. In the recent past, the Indian stock markets had moved up mainly on the strength of large capital inflows from foreign portfolio investors. However, the level of volatility remains high. The revival of the market for new capital issues will be crucial for companies which have plans for raising equity capital.

 

During the year 2012-13, the average crude oil prices were marginally lower than the prices during the previous financial year. The average price of the Indian basket of crude oil was USD 108 per barrel as against USD 112 per barrel in 2011-12. Even as crude oil prices remained high for most part of the year, there were signs of prices easing particularly in the beginning of the current financial year 2013-14. The slow pace of economic recovery in many parts of the world has had an adverse impact on the demand for commodities like oil leading to a decline in the prices. Oil prices have also been impacted by developments like rising production of shale oil in America. The falling prices will also help the Government by ensuring that the under- recoveries on the sale of sensitive petroleum products is kept under control. This will be an important step in reining in the budgetary deficit. The lower prices of crude oil and petroleum products will also have a positive effect on the inflationary pressures on the economy, which in turn will create conditions favorable for interest rates to go down. However, the international prices have started creeping up once again and the rupee depreciation has aggravated matters. As such, while there is much to look forward to in 2013-14, the year will remain challenging for the economy as a whole.

 

 

PERFORMANCE

 

The performance of the various Strategic Business Units (SBUs) and Entities is discussed in detail in the following paras.

 

REFINERIES

 

The two refineries at Mumbai and Kochi delivered excellent results in 2012-13 on all fronts. The total throughput of the two refineries during the year stood at 23.21 MMT, as compared to 22.91 MMT achieved in 2011-12. The refineries thus, achieved a capacity utilization of 107.95% in 2012-13.

 

Mumbai Refinery achieved a throughput of 13.10 MMT of feedstock (crude oil and other feedstock) as against 13.35 MMT achieved in 2011-12. This represents a capacity utilization of 109%, as compared to 111% in the previous year. The reduction in throughput as compared to the previous year can be attributed to the planned shutdown of two crude processing units for undertaking turnaround activities. Kochi Refinery achieved its highest-level of throughput in a single financial year. The throughput of 10.1 MMT in 2012-13 surpassed the previous best of 9.56 MMT which was recorded in 2011-12.

 

During the year, Mumbai Refinery achieved its highest ever production of Propylene (C3), MS (Euro III MS), HSD, Bitumen, Liner Alkyl Benzene Feed Stock (LABFS) and Lube Base Oils. By processing external reformate sourced from Kochi Refinery and through imports, Mumbai Refinery was able to meet the demand for Euro IV grade auto fuels. Production of 1184 TMT of Euro III MS, 4292 TMT of Euro III HSD, 229 TMT of Euro IV HSD and 423 TMT of ATF during the year were the highest ever production from Kochi Refinery.

 

The GRM at Mumbai Refinery during the year was USD 4.67 per barrel, which is significantly higher than the level of USD 1.73 per barrel realized in 2011-12. This translates into an overall gross margin for the refinery of Rs. 24990.000 millions in 2012-13, as compared to Rs. 8310.000 millions in the earlier year. During the year, Kochi Refinery recorded a GRM of USD 5.36 per barrel, as against the GRM of USD 3.09 per barrel in the previous year. The total gross margin of Rs. 22110.000 millions in 2012-13 is the highest ever recorded by Kochi Refinery in a single financial year.

 

The higher GRM in Mumbai Refinery for the year 2012-13 can be attributed to higher distillate yield, favorable crude mix and better product cracks coupled with reduction in octroi under-recovery on account of implementation of State Surcharge (SSC) Recovery Scheme. Better product cracks (realisation), improved reliability of major units and improved steam management leading to lower fuel and loss have enabled Kochi Refinery to achieve higher GRM during the year.

 

During the year, Mumbai Refinery adopted several measures to improve the refining margins. Higher on-stream factor of process units, optimized crude mix to improve distillate yield, continued usage of Re-gasified LNG (RLNG) and recovery of Hydrogen from CRU off-gas, implementation of Advanced Process Control (APC) in the DHDS complex, maximization of Bitumen production, increased Propylene production, maximum absorption of Kerosene in the Diesel pool and optimization of blend streams to increase Euro III MS production were some of the improvement measures undertaken in Mumbai Refinery.

 

Mumbai Refinery had embarked upon the "Refinery Performance Improvement Program" (RPIP) in an effort to improve its bottom line. This initiative, which is guided by Centre for High Technology (CHT) under the auspices of Ministry of Petroleum and Natural Gas (MOP and NG), had commenced in 2010-11 with the assistance of M/s. Shell Global Solutions. Various schemes related to energy saving and margin improvement identified during this study have been implemented and these are showing encouraging results. First prize under the Jawaharlal Nehru Centenary Awards (instituted by MOP and NG) for Energy Performance of Indian Refineries for the year 2010-11 was awarded to Mumbai Refinery.

 

Mumbai Refinery had implemented a state-of-the-art "Business Process Monitoring and Intelligence" system (BPMAI) - a portal that facilitates monitoring of "Key Performance Indicators" (KPI) of Refinery performance in 2011-12. During the year, additional functionalities have been implemented and the system has now evolved into an online monitoring and decision making tool which has been widely used by all functions in the refinery. Mumbai Refinery won the "Nasscom IT User Awards 2012" under the "Energy - Oil and Gas Sector" Category for implementation of the BPMAI system. In Kochi, the emphasis on Quality Circles as a key improvement initiative continued. The refinery has 18 Quality Circles spanning functional areas like Manufacturing, Power and Utilities, Maintenance, Oil Movement and Storage, Finance and Human Resources. The Quality Circles have been exposed to industry best practices through training programs, industry visits and competitions. The internal training programs for employees also cover quality circles in detail with a view to promote this concept further.

 

The Refinery Quality Assurance System at Mumbai Refinery strived to achieve the highest quality standards through meeting the requirements/standards of reputed external certifying agencies and accreditation bodies like National Accreditation Board for Testing and Calibration (NABL), Directorate General of Civil Aviation (DGCA), International Organization for Standardization etc. The Refinery laboratory continued to perform well in the international laboratory proficiency testing scheme run by Shell Global with 97% rating. Kochi Refinery's Quality Control Laboratory continued its participation in the Shell Main Products Correlation Scheme of M/s. Shell Global Solutions, Netherlands and obtained a score of 100% seven times for satisfactory performance in the scheme during the financial year 2012-13.

 

High safety standards were maintained during the year at Mumbai Refinery leading to good all-round safety performance. Many new initiatives were undertaken for safety propagation, such as publishing safety booklets on various topics, conducting hands-on training on scaffolding and behavior-based safety training for the front line officers, development of an animated cartoon film for training contractor workers, safety film for visitors, live demonstration of the fall arrestor system at the Continuous Catalytic Reactor (CCR) project site and display of standardized safety posters in various plant areas. New Emergency Response and Disaster Management Plan of both the refineries was prepared as per guidelines given by Petroleum and Natural Gas Regulatory Board. As at the end of the financial year, Kochi Refinery achieved 30.40 million man-hours equivalent to 2,649 days of operations without any Lost Time Accident. Mumbai Refinery achieved 3.0 million man-hours without any Lost Time Accident as on 31st March, 2013. The refinery also introduced Inter Section Safety Awards during the year to encourage self-propelling actions among all Sections for an overall improvement on the safety performance of the Refinery. A monthly Safety Report from contractors for efficient tracking of safety promotional activities and incidents was introduced at Kochi. This was made mandatory for contractors who are employing more than 50 contract workers. A Behavioral Based Safety (BBS) training program was also imparted at the refineries. At the recent Oil Industry Safety Directorate (OISD) Awards 2011-12, Mumbai Refinery won the award in the category of Individual Contribution towards Safety by Shri H.G. Sayyad, Loco Driver, Trombay Despatch Unit, for his exceptional alacrity and action in preventing a major accident.

 

On the environmental conservation front, Mumbai Refinery continued the use of RLNG to replace liquid fuels, which has contributed to the reduction of CO2 and SO2 emissions from the refinery. Rainwater harvesting schemes helped in utilizing around 28,500 Kls of water. Focus on water conservation helped Mumbai Refinery in using more than 460000 Kls of treated water in various cooling towers, thereby reducing raw water consumption. Carbon footprint and carbon management are major focus areas for Governments and organizations around the world. As a first step towards Greenhouse Gas management, a Carbon footprint study was completed in September 2012 at Mumbai Refinery. Based on the study, an Assurance statement was issued as per GRI guidelines and ISAE 3000 by M/s. Ernst and Young. The continuous uploading of online ambient air quality data to the Central Pollution Control Board (CPCB) server was successfully commissioned in both the refineries. Fuel savings, as a result of the energy conservation measures implemented in Kochi Refinery during the year 2012-13, correspond to a total savings potential of about 14,455 tonnes of fuel oil equivalent. During the year 2012-13, Kochi Refinery received the State Pollution Control Award - 2011 (First Position) from Kerala State Pollution Control Board for making substantial and sustained efforts towards pollution control.

 

The two refineries continued to lay strong emphasis on training and skill up gradation of employees. Mumbai Refinery organized several strategy workshops, functional programs, people management skills and on the job training. A total of 8,090 man-days of training were organized, providing opportunity to all Sections of employees to upgrade their learning and skills during the year. Employees were also exposed to various programs organized by premier institutions in India. Mumbai Refinery's learning initiative, "Refinery Tech-Know League," which nurtures young talent, bagged a coveted award at the 4th Annual Chief Learning Officers Summit India, Mumbai. During the year, 2,325 employees at Kochi were given training. A series of competency enhancement workshops on compassionate communication, personal effectiveness, managing self, managing others, VLPs, mentoring etc. were conducted for the management staff. Outbound experiential learning programs were conducted for the Project Team and officers of the Operations group. In addition, 265 management and non-management staff were sent for training programs organized by external institutions in India to keep them abreast of global trends. As a capacity building exercise for the Project Team at Kochi, a new initiative, "Learn from the Leader" was undertaken during the year. Eminent leaders like Dr. E. Sreedharan, who have demonstrated their strength in leading successful teams in implementing mega projects, shared their rich and varied experience in the area of project execution with the officers of the team.

 

Social welfare and development remains at the core of subject corporate social responsibility philosophy. Subject aims at bringing about qualitative changes in the lives of the surrounding community through well planned and coordinated social welfare initiatives. The two refineries have been in the forefront of these initiatives. Mumbai Refinery commenced the 2nd phase of "Project UTKARSH," which has been scaled up from 10 schools to a total of 25 schools in and around the refinery. Under this welfare scheme, students were offered help to complete their SSC exams successfully and subsequently, to take up vocational courses and also admission in ITI, Karjat. Scholarships were awarded to deserving students from schools in Chembur near the refinery. Free medical camps were conducted at Mahul, Karjat and Washala. With a view to safeguard the environment, a Green Earth Campaign 2012 was initiated and 7,200 saplings were planted in and around Mumbai. Kochi Refinery installed a Biogas plant for producing Biogas from canteen waste. The Biogas so obtained is utilized in the canteen for cooking and the solid waste from the Biogas plant is used as manure. Kochi Refinery received the Excellence Award from Kerala Management Association in recognition of CSR activities undertaken in various spheres.

 

As a group, subject is well placed in terms of having access to its own refining capacity for serving the key markets of the country. However, as the energy demand increases, there will be a need to increase the product availability.

 

The project for increasing the refining capacity at Kochi is currently underway. Two major projects are under implementation at Mumbai Refinery which will ensure that subject has access to sufficient quantity of finished product meeting the latest quality specifications which will be needed to serve the market efficiently. However, there would be major challenges including possible policy changes, availability and cost of funds etc. subject remains confident of being able to face the challenges and grow in the market.

 

AWARDS AND RECOGNITION

 

For its outstanding global, financial and industry performance, subject has been ranked among the top 20 Oil and Gas Refining and Marketing companies in the Platts Top 250 Global Energy Company Rankings for 2012. Subject ranks 12th in Oil and Gas Refining and Marketing in the Asia / Pacific Rim, 18th in Oil and Gas Refining and Marketing globally and 54th in overall performance in the Asia / Pacific Rim.

 

In the list of the top 500 global companies released by Fortune magazine for 2013, subject was ranked at 229. Subject was placed in third position amongst the eight Indian companies which have made it to the prestigious list.

 

For the seventh year in succession, the subject brand has featured among the top ten companies, ranking ninth, according to the valuation of India's Top 50 Most Valuable Brands performed by M/s. Brand Finance. This year, the Bharat Petroleum Brand has been valued at USD 2.46 billion.

 

Subject has been conferred with the prestigious Oil Industry Safety Awards for Best Overall Safety Performance amongst LPG Marketing Organizations for the years 2009-10 and 2010-11.

 

Subject has bagged the prestigious National Institute of Personnel Management (NIPM) Gold Award for Best HR Practices - 2012 in recognition of the various HR initiatives in the past year and the performance continuum that makes Bharat Petroleum a great place to work.

 

Subject was awarded the Confederation of Indian Industry (CII) HR Excellence Award in the category "Strong Commitment to HR Excellence."

 

Subject Corporate R and D team received the Special Commendation Award for "Innovator of the year- Team" from Petro Fed.

 

Subject won the Best Loyalty Program Award at the 3rd CMO ASIA Awards conducted for excellence in Branding Pan Asia held at Singapore.

 

Subject walked away with two prestigious Communication Awards at the Annual Association of Business Communicators of India (ABCI) Awards, lifting the Bronze Awards for the corporate film, "Energizing a billion lives" and Mumbai Refinery's in-house magazine, 'Atit Bharati

 

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE THREE MONTHS ENDED 30th JUNE, 2013

 

 

Particulars

Three Months ended

30-06-2013

 

 

 

A.

Physical Performance

 

1.

Crude Throughput (MMT)

0.563

2.

Market Sales (MMT)

0.859

3.

Sales Growth (%)

0.106

4.

Export Sales (MMT)

0.068

 

 

B.

Financial Performance

 

1.

Income from Operations

 

a)   Net Sales/Income from Operations (Net of excise duty)

587052.800

b)  Other Operating Income

311.600

Total income from operations (net)

587364.400

2.

Expenses

 

a)     Cost of materials consumed

228019.200

b)    Purchase of stock-in-trade

306526.400

c)     Changes in inventories of finished goods, work-in-progress and stock-in-trade

3128.500

d)    Employee benefits expenses

8314.200

e)     Depreciation and amortisation expenses

5304.700

f)     Other expenses

32010.300

Total expenses

583303.300

3.

Profit / (Loss)from Operations before other income, finance cost & Exceptional Items (1-2)

4061.100

4.

Other Income

3383.000

5.

Profit/ (Loss) from ordinary activities before finance cost & Exceptional Items (3+4)

7444.100

6.

Finance Cost

5253.200

7.

Profit / (Loss) from ordinary activities after finance cost but before Exceptional Items (5-6)

2190.900

8.

Exceptional Items

--

9.

Profit / (Loss) from ordinary activities before tax (7+8)

2190.900

10.

Tax expense

687.700

11.

Net Profit /(Loss) from Ordinary Activities after tax (9-10)

1503.200

12.

Extraordinary Items (net of tax expense)

--

13.

Net Profit / (Loss) for the period (11-12)

1503.200

14.

Paid-up equity share capital (face value of ? 10 per share)

7230.800

15.

Reserve excluding Revaluation Reserves as per balance sheet

--

16.

Earnings Per Share (EPS)

 

a)   Basic and diluted EPS before Extraordinary items – Rs.

2.08

b)   Basic and diluted EPS after Extraordinary items - Rs.

2.08

A.

PARTICULARS OF SHAREHOLDING

 

1.

Public shareholding

 

-    Number of shares *

325884128

-    Percentage of shareholding

45.07%

* includes shares held by BPCL trust

 

2.

Promoters and Promoter group Shareholding

 

a) Pledged/Encumbered

NIL

b) Non-encumbered

 

- Number of shares

397200120

- Percentage of shares (as a % of total shareholding of Promoter and Promoters group)

100%

- Percentage of shares (as a % of total share capital of the company)

54.93%

 

 

 

B.  INVESTOR COMPLAINTS (Nos.)

Three Months ended

30.06.2013

 

Pending at the beginning of the quarter

NIL

 

Received during the quarter

NIL

 

Disposed of during the quarter

NIL

 

Remaining unresolved at the end of the quarter

NIL

 

 

NOTE:

 

1)     The market sales during the quarter ended 30th June, 2013 was higher at 8.59 MMT when compared to 8.50 MMT achieved during the corresponding period of previous year. The increase is mainly in MS-Retail (11.56%), HSD-Retail (7.34%) and Aviation (9.79%) partly offset by decrease in LPG (-6.47%), FO (-26.18%) and RLNG (-9.00%).

 

2)     The Average Gross Refining Margin (GRM) during the quarter ended 30th June, 2013 is USD 4.05 per barrel (April - June 2012: USD 2.62 per barrel).

 

3)     As advised by the Ministry of Petroleum & Natural Gas, the Corporation has accounted compensation towards sharing of Under-recoveries on sale of sensitive petroleum products as follows:

 

a.     36663.600 millions for the current quarter (April - June 2012: Rs. 36626.001 millions) discount on Crude Oil / Products purchased from ONGC / GAIL / NRL which has been adjusted against the purchase cost.

 

b.    Rs. 19165.700 millions for the current quarter (April - June 2012: Nil) subsidy from Government of India which has been accounted as Net Sales from operations.

 

c.     Consequent to non-revision in Retail Selling Prices in line with the international prices and applicable foreign exchange rates prevailing during the current period, the Corporation has absorbed net under-recovery of Rs.5449.500 millions during April - June 2013 (April - June 2012: Rs.79641.800 millions) on sale of sensitive petroleum products.

 

4)     Other expenses for the quarter ended 30th June, 2013 includes Rs. 9444.800 millions (April - June 2012: Rs.16113.400 millions) towards losses on account of foreign exchange fluctuations.

 

5)     Depreciation includes Rs.1650.900 millions for the current quarter as compared to Rs.1286.500 millions during the period April - June 2012 on account of LPG cylinders depreciated at 100%.

 

6)     The Corporation operates in a single segment viz. downstream petroleum sector. As such reporting is done on single segment basis.

 

7)     The Auditors have completed limited review of the financial results of the Corporation for the quarter ended 30th June, 2013. Further, the Accounts were reviewed and recommended by the Audit Committee on 13th August, 2013 before submission to the Board.

 

8)     The Audited Accounts for the year ended 31st March, 2013 have been reviewed by the Comptroller and Auditor General of India under Section 619(3) of the Companies Act, 1956. The Comptroller and Auditor General of India under Section 619(4) of the Companies Act, 1956 have no comments upon or supplement to the Auditors’ Report on the accounts.

 

 

FIXED ASSETS

 

·         Freehold Land

·         Leasehold Land

·         Building

·         Railway Sidings

·         Plant and Machinery

·         Tanks and Pipelines

·         Furniture and Fittings

·         Vehicles

·         Dispensing Pumps

·         LPG Cylinders and Allied Equipment

·         Sundries

·         Intangible Assets

 

CMT REPORT (Corruption, Money Laundering and Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.55

UK Pound

1

Rs.100.83

Euro

1

Rs.85.25

 

 

INFORMATION DETAILS

 

Report Prepared by :

ANK

 

 

SCORE and RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

9

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

9

--CREDIT LINES

1~10

9

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YYES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

77

 

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

 

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

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

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

 

 

 

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.