MIRA INFORM REPORT

 

 

Report Date :

13.06.2014

 

IDENTIFICATION DETAILS

 

Name :

BHARAT PETROLEUM CORPORATION LIMITED

 

 

Registered Office :

Bharat Bhawan, 4 and 6, Currimbhoy Road, Ballard Estate, Mumbai – 400 001, 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

 

 

PAN No.:

[Permanent Account No.]

AAACB2902M

 

 

Legal Form :

A Public Limited Liability company. The Company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Subject is engaged refining crude oil and markets petroleum products, as well as explores and produces hydrocarbons.

 

 

No. of Employees :

Information declined by the management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (81)

 

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 6653670000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a well-established and a reputed company of the Government of India. It is having a fine track.

 

Financial position of the company seems to be sound.

 

Trade relations are reported as trustworthy. Business is active .Payment terms are reported to be regular and as per commitments.

 

The company can be considered excellent 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.

 

INDIAN ECONOMIC OVERVIEW

 

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

 

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

 

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

 

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

 

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

 

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

 

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

 

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

 

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

 

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

LONG TERM RATING : AAA

Rating Explanation

Highest degree of safety and lowest credit risk

Date

04.04.2014

 

Rating Agency Name

CRISIL

Rating

SHORT TERM RATING : A1+

Rating Explanation

Have very strong degree of safety and carry lowest credit risk

Date

04.04.2014

 

 

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 DENIED BY

 

Management Non-Cooperative

 

Contact No.: 91-22-22713000

 

 

LOCATIONS

 

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

Bharat Bhawan, 4 and 6, Currimbhoy Road, Ballard Estate, Mumbai – 400 001, Maharashtra, India

Tel. No.:

91-22-22642112/ 22713000/ 004/ 22714000

Fax No.:

91-22-22642112/ 22616793/ 22713874 / 22832646

E-Mail :

okesy@bharatpetroleum.com

dixitns@bharatpetroleum.in

balasubramanian@bharatpetroleum.in

Website :

http://www.bharatpetroleum.com

www.bharatpetroleum.co.in

http://www.bharatpetroleum.in

 

 

Factory  :

Lubricant Plant

Wadilube Installation, Mallet Road, Mumbai – 400009, Maharashtra, India

 

24, Parganas, Budge-Budge 743319

 

 

 Refinery :

Bharat Petroleum Refinery, Mahul, Chembur, Mumbai - 400074, Maharashtra, India

Tel. No.:

91-22-25543151

Fax No.:

91-22-25542970

 

 

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

 

 

Name :

Mr. K. K. Gupta

Designation :

Director (Marketing)

 

 

Name :

Mr. B. K. Datta

Designation :

Director (Refineries)

  

 

Name:

Mr. S. Varadarajan

Designation:

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

 

 

Name :

R. N. Choubey

Designation :

Director General DGH, MOP & NG (up to 09.04.2013)

 

 

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)

 

Name:

Mr. T. Jose

Designation:

Managing Director KSIDC (w.e.f. 24.01.2013)

 

Name:

Mr. N. Mittal 

Designation:

Joint Secretory, MOP&NG (w.e.f. 11.04.2013)

 

 

KEY EXECUTIVES

 

Name :

Mr. Manoj Pant

Designation :

Chief Vigilance Officer

 

 

Name :

Mr. Anurag Deepak

Designation :

Executive Director (Pipelines)

 

 

Name :

Mr. Arjun Hira

Designation :

Executive Director (Marketing Corporate)

 

 

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. J. Dinaker

Designation :

Executive Director (Corporate Treasury)

 

 

Name :

Mr. K. B. Narayanan

Designation :

Executive Director (IIS)

 

 

Name :

Mr. K. P. Chandy

Designation :

Executive Director (Lubes)

 

 

Name :

Mr. K. V. Shenoy

Designation :

Executive Director (Engineering Services), Marketing

 

 

Name :

Mr. Manmohan Singh

Designation :

Executive Director (Engineering Services), Marketing

 

 

Name :

Mr. M. M. Chawla

Designation :

Executive Director (Engineering & Projects)

 

 

Name :

Ms. Monica Widhan

Designation :

Executive Director (Coordination)

 

 

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. Pramod Sharma

Designation :

Executive Director (Aviation)

 

 

Name :

Mr. Prasad K. Panicker

Designation :

Executive Director (Kochi Refinery)

 

 

Name :

Mr. R.K. Mehra

Designation :

Executive Director (International Trade)

 

 

Name :

Mr. R P Natkar

Designation :

Executive Director (I and C)

 

 

Name :

Ms. Carmen D’ Costa

Designation :

Executive Director

 

 

Name :

Mr. S.B. Bhattacharya

Designation :

General Manager (Brand & ARB) Retail HQ

 

 

Name :

Mr. C J Iyer

Designation :

Executive Director ( (Technical) Mumbai Refinery

 

 

Name :

Mr. C. K. Soman 

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. C K Soman

Designation :

General Manager (Operation), KochiRefinery

 

 

Name :

Mr. H S Pranjape

Designation :

General Manager (Finance), Mumbai Refinery

 

 

Name :

Mr. K Padmakar

Designation :

General Manager ()

 

 

Name :

Mr. A.K. Kaushik

Designation :

General Manager (Corporate HRS)

 

 

 

 

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 & Distribution) Retail HQ

 

 

Name :

Mr. P. Anandasundaresan

Designation :

General Manager (Quality Control Cell)

 

 

Name :

Mr. J.R. Akut

Designation :

General Manager (IIS Technology)

 

 

Name :

Mr. K. H. Subramanian

Designation :

General Manager (Retail) West

 

 

Name :

Mr. P. S. Ramachandran

Designation :

General Manager (Projects-Units), Kochi Refinery

 

 

Name :

Mr. R. R. Nair

Designation :

(HR), Mumbai Refinery

 

 

Name :

Mr. S. Rath

Designation :

Marketing Manager (Lubes), HQ

 

 

Name :

Mr. K. Sivakumar

Designation :

General Manager (Corporate Finance)

 

 

Name :

Mr. S. Banerjee

Designation :

General Manager (Retail) East

 

 

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 & Project Coordination)

 

 

Name :

Ms. Madhu Sagar

Designation :

General Manager (Employee Satisfaction Enhancement)

 

 

Name :

Mr. N Manohar Rao

Designation :

General Manager (Retail Operation), HQ

 

 

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. M. N. Neelakanton

Designation :

General Manger (Advisoring Engineering) Kochi Refinery

 

 

Name :

Mr. S. K. Kudaisya

Designation :

General Manager (Gas)

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. Suresh P. K.

Designation :

General Manger (Finance) Kochi 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 (Pertochemicals), 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. A. Krishnaswamy 

Designation :

General Manager (Strategy

 

Name :

Mr. A. K. Gupta 

Designation :

General Manager (HSSE)

 

Name :

Mr. P Kumarswamy 

Designation :

General Manager I/C (Project),  Kochi Refinery

 

Name :

Mr. S Banerjee  

Designation :

General Manager (Retail),  East

 

Name :

Mr. Sudip Mallick  

Designation :

General Manager Logistic (LPG),  HQ

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2014

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

(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

64367109

8.90

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

647641

0.09

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

6222222

0.86

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

49925459

6.90

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

82244829

11.37

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

203407260

28.13

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

 

 

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

35811634

4.95

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

15042877

2.08

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

2398162

0.33

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

69224195

9.57

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

516920

0.07

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

1249801

0.17

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

67457474

9.33

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

122476868

16.94

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

0

0.00

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

0.00

 

 

 

Shareholding belonging to the category "Promoter and Promoter Group"

 

No.

Name of the Shareholder

Details of Shares held

Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital

No. of Shares held

As a % of grand total (A)+(B)+(C)

1

Government of India

39,72,00,120

54.93

54.93

 

Total

39,72,00,120

54.93

54.93

 

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

 

 

Sr. No.

Name of the Shareholder

No. of Shares held

Shares as % of Total No. of Shares

Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital

1

BPCL Trust For Investment in Shares

67457474

9.33

9.33

2

Life Insurance Corporation of India

39162846

5.42

5.42

3

ICICI Prudential Life Insurance Company

12485353

1.73

1.73

4

HDFC Standard Life Insurance Company

8951951

1.24

1.24

5

HDFC Trustee Company Ltd HDFC EQ

8385440

1.16

1.16

6

Government Pension Fund Global

9235807

1.28

1.28

 

Total

145678871

20.15

20.15

 

 Shareholding belonging to the category "Public" and holding more than 5% of the Total No. of Shares

 

Sr. No.

Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them

No. of Shares

Shares as % of Total No. of Shares

Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital

1

BPCL Trust For Investment in Shares

67457474

9.33

9.33

2

Life Insurance Corporation Of India

39162846

5.42

5.42

 

Total

106620320

14.75

14.75

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged refining crude oil and markets petroleum products, as well as explores and produces hydrocarbons.

 

 

Products :

PRODUCT DESCRIPTION

ITEM CODE NO.

Petroleum Products

2710

Benzene

2902

Lubricants

2710

 

 

PRODUCTION STATUS AS ON 31.03.2011

 

Particulars

Licensed Capacity

Installed Capacity

Actual Production

(a) Fuel refinery

 

 

 

(i) In million metric tonnes p.a.

NA

21.50

21.78

(ii) Production in kilolitres (KL)

--

--

8668482

Light distillates

--

--

13781044

Middle distillates

--

--

3046601

Others

 

 

 

(b) Aromatics (in MT)

 

 

 

(i) Benzene *

185500

192900

75156

(ii) Toluene *

67600

73100

20282

(iii) Mixed Aromatic Solvent

15000

15000

--

(c) MTBE in M.T. #

NA

30000

27584

(d) New Solvent Unit

 

 

 

(i) Solvent (SBP 55-115) in M.T.

NA

40000

9992

(ii) Solvent (Food Grade Hexane) in M.T.

NA

25000

29257

(e) Poly Proplyene Feedstock in M.T.

NA

60000

58127

(f) Lubricants in M.T.

NA

153400

220387

(g) Lube Oil Base Stock (LOBS) in M.T.

NA

180000

205373

(h) Sulphur in M.T.

NA

117667

70228

(i) Natural Rubber Modified Bitumen in M.T.

NA

65000

7598

(j) Bitumen Emulsion (Single Shift) in M.T.

50000

27600

5310

(k) Diesel Additive (Single Shift) in M.T.

5000

1500

--

(l) Propylene in M.T.

65000

50000

16067

(m) Petroleum Hydrocarbon Solvent in M.T.

10000

8820

7261

(n) Poly Iso Butene in M.T.

5000

5000

1074

(o) Cable Jelly (Poly Isobutene Unit) in M.T.

6500

2500

--

(p) Others (Poly Isobutene Unit) in M.T.

14000

1000

--

 

Note :

* For Kochi Refinery, the combined capacity of Benzene and Toluene is 99200 MT as against the individual capacity of 87200 MT and 50000 MT respectively

@ The blending capacities have been reviewed during the year and have been reworked in line with current usage pattern which is depending on the market requirement.

# MTBE is used for own manufacture of Motor Spirit

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management.

 

 

Bankers :
  • State Bank of India
  • Union Bank of India
  • Corporation Bank
  • Bank of India
  • State Bank of Patiala
  • Central Bank of India
  • Deutsche Bank
  • Standard Chartered Bank
  • Royal Bank of Scotland
  • ICICI Bank Limited
  • HDFC Bank Limited
  • State Bank of Travancore
  • IDBI Bank Limited
  • BNP Paribas
  • Calyon Bank

 

 

Facilities :

 

Secured Loan

As on 31.03.2013

(Rs. In Millions)

As on 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**

0.000

0.000

 

 

 

Short term Borrowing

 

 

Loans repayable on demand Form Bank

 

 

Working Capital Loans / Cash Credit*

6604.700

2101.100

Collateralized Borrowing and Lending Obligation **

 

6220.000

0.000

Total

19824.700

2101.100

 

Note :

 

Long term borrowing

 

* The Corporation had allotted redeemable non-convertible 8.65% Debentures of face value of Rs.7000.000 millions on 8th October 2012 reedemable on 8th October 2017 with a put call option on 8thOctober 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.1,0000.000 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 :

--

 

 

Financial Institutions :

SBICAP Trustee Company Limited, 202, Maker Tower, 'E', Cuffe Parade, Colaba, Mumbai - 400005, Maharashtra, India

 

 

Auditor 1 :

 

Name :

B. K. Khare and Company

Chartered Accountants

 

 

Auditor 2 :

 

Name :

K. Varghese and Company

Chartered Accountants

 

 

Joint Venture Companies :

·         Indraprastha Gas Limited

·         Petronet India Limited

·         Petronet CCK Limited

·         Petronet CI Limited

·         Petronet LNG Limited

·         Bharat Oman Refineries Limited

·         Maharashtra Natural Gas Limited

·         Central UP Gas Limited

·         Sabarmati Gas Limited

·         Bharat Stars Services Private Limited

·         Bharat Renewable Energy Limited

·         Matrix Bharat Private Limited.

·         Delhi Aviation Fuel Facility Private Limited

·         Kannur International Airport Limited

·         GSPC India Gasnet Limited

·         GSPC India Transco Limited

·         IBV (Brazil) Petroleo Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,50,00,00,000

Equity Shares

Rs.10/- each

Rs.25000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

72,30,84,248

Equity Shares

Rs.10/- each

Rs.7230.800 Millions

 

 

 

 

 

Notes:

 

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 year ended 31st March 2012, 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 (previous year Rs. 4548.600 millions) including Corporate Dividend Tax of Rs. 1274.700 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 36,15,42,124 equity shares having face value of  Rs.10 each.

 

Reconciliation of No. of Equity Shares

 

Particulars

31.03.2013

Opening Balance

36,15,42,124

Shares Issued

 

--Bonus Shares

36,15,42,124

Shares Bought Back

--

Closing Balance

72,30,84,248

 

 

Name of shareholders

31.03.2013

 

% Holding

No. of shares

Government of India

54.93

39,72,00,120

BPCL Trust for Investment in shares

9.33

6,74,57,474

Life Insurance Corporation of India

5.14

3,71,73,606

 

 

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

7,230.800

3,615.400

3,615.400

(b) Reserves & Surplus

159,109.400

145,523.200

136,960.800

(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)

166,340.200

149,138.600

140,576.200

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

55,083.700

21,590.900

26,483.800

(b) Deferred tax liabilities (Net)

16,557.200

14,005.600

10,075.400

(c) Other long term liabilities

608.200

559.600

412.500

(d) long-term provisions

4,350.600

4,099.600

7,332.000

Total Non-current Liabilities (3)

76,599.700

40,255.700

44,303.700

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

180,584.200

190,873.500

138,096.900

(b) Trade payables

87,831.100

128,664.000

84,144.800

(c) Other current liabilities

135,336.200

133,661.000

135,639.600

(d) Short-term provisions

23,182.500

13,477.000

15,998.300

Total Current Liabilities (4)

426,934.000

466,675.500

373,879.600

 

 

 

 

TOTAL

669,873.900

656,069.800

558,759.500

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

166,240.300

165,362.400

159,363.200

(ii) Intangible Assets

663.800

761.400

630.100

(iii) Capital work-in-progress

25.300

25.300

9,698.600

(iv) Intangible assets under development

24,172.100

11,165.300

25.300

(b) Non-current Investments

69,421.000

49,702.900

49,456.800

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

25,284.000

34,589.700

31,666.200

(e) Other Non-current assets

169.300

9.500

9.400

Total Non-Current Assets

285,975.800

261,616.500

250,849.600

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

51,609.000

59,471.300

70,913.800

(b) Inventories

166,903.700

159,480.600

153,750.800

(c) Trade receivables

40,251.300

63,783.400

25,326.500

(d) Cash and cash equivalents

23,288.600

9,788.500

3,790.300

(e) Short-term loans and advances

12,449.800

7,925.800

5,208.800

(f) Other current assets

89,395.700

94,003.700

48,919.700

Total Current Assets

383,898.100

394,453.300

307,909.900

 

 

 

 

TOTAL

669,873.900

656,069.800

558,759.500

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue  From Operations

2401157.500

2119729.700

1516394.500

 

 

Other Income

16802.300

17017.800

16213.600

 

 

TOTAL                                     (A)

2417959.800

2136747.500

1532608.100

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchase stock in trade

1258196.000

1121591.500

781051.000

 

 

Raw materials consumed

974894.900

855629.700

627304.000

 

 

Increase/(Decrease)/ Changes  in Inventory

(14717.900)

(6016.000)

(20560.500)

 

 

Employee Benefits Expenses 

27688.700

22610.700

27636.300

 

 

Other Expenses

94027.800

87245.300

65504.100

 

 

Prior Period Income/ (Expenses) net

0.000

0.000

0.000

 

 

TOTAL                                     (B)

2340089.500

2081061.200

1480934.900

 

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

77870.300

55686.300

51673.200

 

 

 

 

 

 

Less

INTEREST                                                         (D)

18252.400

17995.900

11170.300

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

59617.900

37690.400

40502.900

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

19261.000

18848.700

16554.000

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

40356.900

18841.700

23948.900

 

 

 

 

 

Less

TAX                                                                  (H)

13927.900

5729.000

8482.100

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

26429.000

13112.700

15466.800

 

 

 

 

 

 

Transfer from / (to) Debenture Redemption Reserve

0.000

0.000

0.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

5000.000

5000.000

1810.600

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed dividend

7953.900

3977.000

5061.600

 

 

Corporate Dividend Tax on proposed dividend

1274.700

571.600

710.800

 

 

Transfer to General Reserve

17200.400

8564.100

6505.000

 

BALANCE CARRIED TO THE B/S

5000.000

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

36.27

42.78

 

 

KEY RATIOS

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

 

 

 

PAT / Total Income

(%)

1.09

0.61

1.01

 

 

 

 

 

Net Profit Margin

 (PBT/Sales)

(%)

1.67

0.88

1.56

 

 

 

 

 

Return on Total Assets (PBT/Total Assets}

(%)

7.00

3.17

4.79

 

 

 

 

 

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

0.85

0.82

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT/EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

3,615.400

3,615.400

7,230.800

Reserves & Surplus

136,960.800

145,523.200

159,109.400

Net worth

140,576.200

149,138.600

166,340.200

 

 

 

 

long-term borrowings

26,483.800

21,590.900

55,083.700

Short term borrowings

138,096.900

190,873.500

180,584.200

Total borrowings

164,580.700

212,464.400

235,667.900

Debt/Equity ratio

1.171

1.425

1.417

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Revenue From Operations

1516394.500

2119729.700

2401157.500

 

 

39.787

13.277

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Revenue From Operations

1516394.500

2119729.700

2401157.500

Profit After Tax

15466.800

13112.700

26429.000

 

1.02%

0.62%

1.10%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG TERM DEBTS

 

Particulars

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

Current Maturities of Long-Term Borrowings

2722.500

17472.500

25022.500

 

 

 

 

Total

2722.500

17472.500

25022.500

 

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

 

VIEW INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10493295

11/04/2014

8,880,000,000.00

OIL INDUSTRY DEVELOPMENT BOARD

301, WORLD TRADE CENTRE, BABAR ROAD, NEW DELHI- 110001, INDIA

C04233615

2

10400513

05/01/2013

7,000,000,000.00

SBICAP TRUSTEE COMPANY LIMITED

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

B67010710

3

10079177

03/08/2009 *

100,000,000.00

STATE BANK OF INDIA

STATE BANK BHAVAN, MADAM CAMA ROAD, MUMBAI 400021, MAHARASHTRA , INDIA

A66875428

4

90164106

30/01/2001

4,000,000,000.00

STATE BANK OF INDIA

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

-

5

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 - 400023, MAHARASHTRA, INDIA

-

6

90162015

27/02/2009 *

100,000,000,000.00

STATE BANK OF INDIA

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

A58670241

 

* Date of charge modification

 

DETAILS OF UNSECURED LOANS

(Rs. In Millions)

Particulars

31.03.2013

31.03.2012

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

0.000

0.000

From banks

 

 

Rupee Loans

700.000

2000.000

Foreign Currency Loans

162759.500

186772.400

Commercial Papers

4300.000

0.000

Total

215843.200

210363.300

 

 

LITIGATION DETAILS

 

LITIGATION DETAILS

Bench:- Bombay

 

Presentation Date :- 24.09.2013

Lodging No:-

ITXAL/1554/2013

Failing Date:-

24.09.2013

Reg. No.:-

ITXA/353/2014

Reg. Date:-

20.02.2014

Petitioner:-

COMMISSIONER OF INCOME TAX - 2

Respondent:-

BHARAT PETROLEUM CORPORATION LIMITED

 

Petn.Adv:-

SURESH KUMAR

 

District:-

MUMBAI

Bench:-

DIVISION

Category:-

TAX APPEALS

Status:-

Pre – Admission

Stage:-

FOR REJECTION [ ORIGINAL SIDE MATTERS

 

 

 

 

Next Date:-

25.06.2014

 

Coram:-

ACCORDING TO SITTING LIST

ACCORDING TO SITTING LIST

 

 

 

 

Act:-

Income Tax Act, 1961

Under Section:-

260 A

 

 

COMPANY PERFORMANCE

 

BPCL’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 in2011-12. After providing for tax, (including deferred tax) of` Rs.13927.900 millions, as against Rs.5729.000 millions in2011-12, the profit after tax for the year stood at Rs.26429.000 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. BPCL’s net worth as on 31st March, 2013 stands at Rs.166340.200 millions, as compared to Rs.149138.600 crores as at the end of the previous year.

 

The earnings per share in 2012-13 stood at Rs.365.500 millions in 2012-13 as compared to Rs.181.300 millions (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. BPCL’s contribution to the exchequer by way of taxes and duties during 2012-13 amounted to ` 38,028.20 crores, as against Rs.359943.000 millions in 2011-12.

 

REFINERIES

 

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 to111% 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 under review, refinery achieved its highest ever production of Propylene (C3), Motor Spirit (EuroIII 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 beat tribute 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 in2012-13, 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 their finery 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, EuroIII 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 (realisation), improved reliability of major units and improved steam management leading to lower fuel and loss. The details of the performance of the Refineries, their activities and future plans are discussed in the Management Discussion and Analysis Report (MD&A).

 

ECONOMIC DEVELOPMENTS

 

 

MERGER OF KRL WITH BPCL

 

As informed in the last year’s Report, merger of the erstwhile Kochi Refineries Limited (KRL) with BPCL under Sections 391 to 394 of the Companies Act 1956had been completed, following receipt of the Order dated18th August, 2006 issued by the Ministry of Corporate Affairs, New Delhi. One of the Shareholders of the erstwhile KRL had filed a Writ Petition in the Delhi High Court challenging the merger, and the same is pending as on date.

 

MARKETING

 

During the year, 2012-13, BPCL’s market sales volume touched a level of 33.30 MMT, as compared to 31.14 MMT achieved in the previous year. This represented a growth rate of 6.94% over the previous year. BPCL’s market share amongst the public sector oil companies stood at 23.14%as at 31st March, 2013, as compared to 22.30% as at the end of the previous year. A detailed discussion of the performance of the Marketing function is given in the MD&A.

 

 

PROJECTS

 

INTEGRATED REFINERY EXPANSION PROJECT AT KOCHI

 

The Board of Directors, at their meeting held on30th 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 Koch 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 & 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 Isomerization 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 Offsite have been awarded. Tendering and ordering of other equipment and contracts are in progress. The Industrial Entrepreneur Memorandum and Essentiality Certificate has 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.

 

BPCL also plans to enter the Petrochemicals segment by using the feedstock to be produced at the refinery after commissioning of the IREP. BPCL 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 to4.4 MMTPA, to evacuate products from Bina Refinery and also meet the growing demand for petroleum products inthe 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 laying of a 210 km long and14”(35.6 cms) dia. cross-country pipeline from Kota to Jobner (near Jaipur) for economic transportation of MS/SKO/HSD from BPCL’s Mumbai Refinery as well as BORL’s 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 capacity 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 accumulative 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.

 

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 June2013. 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 rupees 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 favourable 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.

 

TRENDS IN THE OIL AND GAS SECTOR

 

Over the last few years, the average price of crude oil in the international markets has remained above USD 100 per barrel. The trend continued in 2012-13, although the average price was slightly lower as compared to the previous year. There were some fears of supply disruptions on account of geo-political factors like the domestic situation in several countries of the Arab world and sanctions against Iran by the USA and the European Union. However, availability of adequate supplies has ensured stability in oil prices. Demand for crude oil and petroleum products have been impacted by the slow pace of economic recovery in several countries. The average price of the benchmark Brent crude oil in 2012-13 was USD 110 per barrel, representing a marginal reduction over the earlier year when it stood at USD 115 per barrel. Demand for crude oil is declining in the countries belonging to the Organisation of Economic Cooperation and Development (OECD) even as it increases in China and India. Also, the increasing efficiency standards and rising use ofnon-fossil fuels have also had an impact on growth rate in the demand for crude oil.

 

The global demand for oil is estimated to have grown by around 1% in 2012 over 2011.The International Energy Agency (IEA), in its Oil Market report dated 12th June, 2013 has reported that the global oil demand was of the order of 89.8 million barrels per day in2012 as compared to 88.9 million barrels per day in 2011. The demand is projected to go upto 90.6 million barrels per day in 2013. The year 2012 saw demand for oil grow in the Asia Pacific region as in the earlier years. However, demand in America remained more or less stagnant while the growth rate declined in European countries. The same scenario is expected to play out in 2013 also with global demand likely to go up by 0.9% over 2012.The major portion of the expected growth in demand for oil will once again be accounted for by the growth in the Asia Pacific. The softening of the crude oil prices could lead to an increase in demand in countries like India and China. However, the global geo-political situation and the movement of the exchange rate of major currencies with reference to the dollar will have a major impact on global demand and international prices for oil. The demand in India will also depend upon the economy's growth momentum, as the pace of GDP growth has come down in the last couple of years.

 

A recent trend seen in the international markets has been the narrowing of the gap between the prices of the American crude West Texas Intermediate (WTI) and Brent Crude. Over the last three years, there was a significant differential between the prices of the two crudes, which are of almost similar quality. Improvements in the logistics infrastructure in the USA have contributed to the increase in the price of WTI crude oil. Currently, the prices of the WTI and Brent crudes are almost at par with each other. However, the rapid increase in the production volumes of crude oil in the USA could lead to a decline in the price of WTI crude, given that currently, export of crude oil from the USA is not permitted freely.

 

The year 2012-13 also saw the average Brent Dubai differential narrowing to USD 3.15per barrel, as against USD 4.44 per barrel in 2011-12. While there were signs of the differential increasing in April 2013, there was a decline from May 2013. However, the differential has started going up once again from June 2013. The movement in the Brent -Dubai differential will have a bearing on the refining margins.

 

As in the case of crude oil, the average international prices of finished products in2012-13 were marginally lower as compared to the previous year. The prices had come down at the beginning of the current financial year before starting to go up once again. The fall in the product prices had offered a ray of hope to the Government of India in its efforts to cap the subsidy burden on sensitive petroleum products.

 

The decision of the Government of India to allow the public sector oil marketing companies to effect small price increases of around 50 paisa per litre every month on High-speed Diesel (HSD), coupled with the fall in international prices, had led to the under-recovery on HSD coming down substantially. There were also expectations that based on available trends, the retail selling prices will be in line with the market in the next few months. This can bring down the subsidy burden substantially. However, with product prices increasing once again, coupled with the sharp depreciation of the rupee, the level of under- recovery on HSD has gone up once again. Notwithstanding this, retail HSD prices are expected to become mark-to-market over the next 18 - 24 months. With India's energy consumption increasing every year, demand for petroleum products will remain strong and hence, the movement of international prices will be very critical for the country’s economy.

 

INDIAN PETROLEUM SECTOR

 

Based on the provisional data released by the Petroleum Planning and Analysis Cell(PPAC) of the Ministry of Petroleum and Natural Gas, the consumption of petroleum products in the country in 2012-2013 stood at 155.42 Million Metric Tonnes (MMT), as compared to 148.13 MMT in 2011-12, representing a growth of 4.9%.

 

The sales volume of transportation fuels, namely Motor Spirit (MS) and HSD continued to grow, although at a slower pace when compared to the previous year. HSD sales grew by6.8%, as compared to 7.8% growth achieved in 2011-12. Similarly, the sales volume of MS grew by 5%, a reduction of 0.6% as compared to the growth rate in the previous year. The Government of India had in 2011-12, empowered public sector oil marketing companies to revise the retail selling prices of MS in line with international prices. In the case of HSD, the public sector oil marketing companies have been given the freedom to hike the selling price every month by a small amount of around 50 paisa a litre with effect from18th January, 2013 till such time as the under-recovery is eliminated and the selling prices are aligned with market prices. Also, the selling prices of HSD for bulk consumers have been fully deregulated. These changes, while leading to reduction in under-recoveries, could impact demand and also lead to greater competition from private players in the days ahead. The growth in the consumption of LPG in 2012-13 was muted at 1.6%, as compared to 7.1% in 2011-12. This decline in the rate of growth can be attributed to the changes announced by the Government on India, by which a cap was placed on the number of cylinders made available at subsidised rates to a domestic consumer in a year. Oil Companies have also been working towards identifying and eliminating multiple connections owned by the same consumer. This has helped in reducing the number of multiple connections, which in turn can help reduce the subsidy burden of the Government. As a next step, the process of crediting the subsidy amount directly to the bank account of the consumer has been started on a pilot basis. This has commenced in 20 districts across the country and would be taken up in other places in the days to come. This would help in keeping the subsidy burden under control while ensuring that the subsidy amount reaches the right consumer. The Aviation sector in India is passing through a difficult period. The woes of one of the major private players were reflected in the negative growth in the sales volume of Aviation Turbine Fuel (ATF) when compared to the sales volume in 2011-12.Sales of Naphtha have increased by around 9.5%, mainly on account of the lower availability of domestic gas. The sales volume of all other products used in the Industrial sector have stagnated or declined. The slowing down of the economy has had an impact on the demand for petroleum products. The Government of India is putting in all efforts to increase the pace of economic growth. This will in turn, lead to growth in energy demand. With Oil and Gas constituting the major chunk of the energy basket, domestic demand for petroleum products is expected to remain strong. Any softening of oil and product prices will also have a positive impact on domestic demand. However, there will remain concerns around the exchange rate of the rupee as any benefit from the fall in international prices should not get negated by an adverse movement in the exchange rate.

 

During the year, the average cost of the Indian basket of crude oil went down from USD 111.87 per barrel in 2011-12 to USD 108 per barrel. During the current financial year, the average cost has come down and on occasions, it has even gone below the USD 100 per barrel mark before going up once again. If the trend of lower prices is maintained, the Indian economy will stand to gain both in terms of lower subsidy burden and also reducing of the country's current account deficit.

 

India continues to be dependent on imports for meeting a major portion of the country’s crude oil requirements. During the year 2012-13, the total quantity of crude oil imported stood at 184.80 MMT, which represents an increase as compared to 2011-12 when the imports stood at 171.73 MMT. Although the average cost of crude oil during the year has come down, the increased level of crude oil procurement has led to the total cost going up from USD140 billion in 2011-12 to USD 144 billion in 2012-13. Given the size of the crude oil import bill, changes in the international price of crude oil and in the exchange rate will have a major impact on the economy as a whole and on the finances of the domestic oil companies. India's refining capacity continues to remain higher than the domestic requirements. Consequently, the quantum of crude oil processed by the Indian refiners is higher than the requirements of the local demand. The total crude oil processed in 2012-13 was of the order of 218.85 MMT, which was higher than the level of 203.76 MMT achieved in the previous year. During the year, the new Guru Gobind Singh Refinery at Bhatinda was commissioned, which has further enhanced the domestic refining capacity. Taking into account the current levels of consumption of petroleum products, India will continue to have surplus refining capacity for some more time. As such, India will remain a major exporter of petroleum products. The quantum of petroleum products exported during 2012-13stood at 63.40 MMT, as compared to 60.84 MMT in 2011-12. Although there has been a small increase in the export volume during the year, the realisation remained unchanged at USD59 billion, as compared to the previous year. Notwithstanding the surplus refining capacity, India continues to import LPG and small quantities of other products, including MS and HSD. The volume of imports of finished products remained unchanged at 16 MMT in2012-13, involving an outgo of USD 13 billion.

 

Considering the extent of the country's dependence on imports, the volatility of pricesin the international market and movements in the exchange rates has a major impact on the country’s economy. Since the selling prices of HSD, SKO and LPG cylinders for domestic consumers are controlled, the volatile movement in prices and exchange rate has an effect on the finances of the public sector oil companies and the Government of India in terms of the subsidy burden. As stated earlier, a number of steps have been taken by the Government of India to control the growing subsidy burden. Also, the system of Government providing cash for reimbursing the under-recoveries incurred by the public sector oil marketing companies has led to an improvement in the cash flow position of these companies.

 

The Government of India is also focused on reviving the growth in different sectors of the economy. A number of policy initiatives aimed at attracting foreign investment in various sectors of the economy have been announced. There are hopes of a normal monsoon, which should also give a major boost to the economy. Stable international prices and the rupee exchange rate would have a positive effect on the economy in general and the Indian oil and gas sector in particular. However, there are numerous challenges before the oil companies. The Government of India has appointed an Expert Committee to examine the current system of computing under-recoveries on HSD, based on trade parity prices and on LPG and SKO on import parity prices. Introduction of any change in the mechanism could impact the quantum of compensation received by the oil companies. The coming days will therefore, provide significant growth opportunities while posing big challenges.

 

PIPELINE FOR TRANSFER OF LPG FROM BPCR / HPCR MUMBAITO URAN

 

The project envisages laying a 28 km pipeline(12 kms offshore and 16 kms onshore) and provision of3 x 900 MT Mounded Storage Vessels (MSVs) at BPCL’s Uran LPG Plant. 10" dia (25.4 cms) pipeline is being laid to transfer LPG from BPCL’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 BPCL’s account.

 

The onshore pipeline laying and 10 km of offshore pipeline laying 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 of97% with cumulative expenditure of Rs. 2284.700 millions as on 30th June, 2013. The project is expected to be completed by September 2013.

 

RISKS, CONCERNS AND OUTLOOK

 

The public sector oil marketing companies are currently being compensated for the under-recoveries caused bythe sale of HSD, LPG (Domestic) and SKO (Domestic)at controlled prices which are lower than costs. The Government of India has been looking at introducing changes in the method of computing the under-recoveries on these products. An expert committee has been appointed to study the issue. Any change carries the risk of adversely affecting the refining margins. This is a major risk for the refineries at Mumbai and Kochi. Changes in the methodology of computing under recoveries on sale of sensitive petroleum products could also impact the viability of the capital projects that are currently underway at the two refineries. This is a key risk, considering the quantum of investments that have been committed at Kochi and Mumbai Refineries.

 

There is also a risk of non-availability of product from product refiners, if there are changes in the methodology of computing the refinery transfer prices, as such refineries may opt to export their production instead of making the same available to the public sector oil marketing companies. In such a situation, costly imports may have to be resorted to, in order to avoid product availability issues. The Indian rupee has sharply depreciated against the US dollar in recent months. The country’s economic growth could be affected, which in turn can lead to reduction in the energy demand and in particular for oil and gas. The price of crude oil in the international market also remains volatile. Although oil prices had reduced in the international markets, the weakening rupee has eroded these gains. In this situation, any slowdown in key sectors of the economy can have a major impact on companies like BPCL.

 

Although there are risks and concerns in the operating environment, there have been a number of mitigating factors. The phased increase in the selling prices of HSD is well on course. The Government of India has been prompt in disbursing the cash towards its share of the compensation towards under-recoveries. This will have a favourable impact on the cash flows and thereby, on the interest cost. Implementation of major projects is progressing well. The upstream initiative continues to hold immense potential for BPCL in the coming years. The marketing businesses have held their own in the marketplace and are focussing their attention on getting ready for the inevitable increase in the level of competition from the private players. BPCL is therefore, fully geared up to meet the challenges in the market and is confident of growing at a fast pace.

 

AWARDS AND RECOGNITION

 

For its outstanding global, financial and industry performance, BPCL has been ranked among the top 20 Oiland Gas Refining and Marketing companies in the Platts Top 250 Global Energy Company Rankings for 2012.BPCL ranks 12th in Oil & Gas Refining and Marketing in the Asia / Pacific Rim, 18th in Oil & 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, BPCL was ranked at 229.BPCL 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 BPCL 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 2.46billion.

 

BPCL has been conferred with the prestigious Oil Industry Safety Awards for Best Overall Safety Performance amongst LPG Marketing Organisations for the years

2009-10 and 2010-11.

 

BPCL 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. BPCL was awarded the Confederation of Indian Industry(CII) HR Excellence Award in the category “Strong Commitment to HR Excellence.” BPCL Corporate R&D team received the Special Commendation Award for “Innovator of the year- Team” from Petro Fed.

 

BPCL won the Best Loyalty Program Award at the 3rd CMOASIA Awards conducted for excellence in Branding Pan Asia held at Singapore. BPCL 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.’

 

 

CONTINGENT LIABILITIES:

(Rs. In Millions)

Particulars

31.03.2013

31.03.2012

(a) In respect of taxation

1128.700

 

1226.300

(b) Other Matters :

 

 

ii) Claims against the Corporation not acknowledged as debts :

 

 

(a) Excise and customs matters

8231.400

 

6453.400

(b) Sales tax matters

2,8631.400

 

28022.200

(c) Land Acquisition cases for higher compensation

1560.200

 

915.600

(d) Others *

3399.600

 

2962.100

These include Rs. 7255.400 millions (previous year Rs. 12340.000 millions) against which the Corporation has a recourse for recovery and Rs. 283.500 millions (previous year Rs.283.100 millions) on capital account.

 

 

iii) Claims on account of wages, bonus/ex-gratia payments in respect of pending court cases.

153.600

 

134.400

iv) Guarantees given on behalf of Subsidiaries/JV's

4,6944.400

 

4618.300

 

UNAUDITED FINANCIAL RESULTS (PROVISINOAL) FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2013

 

(Rs. In Millions)

 

Particulars

Three Months ended

Nine Months ended

 

 

31.12.2013

30.09.2013

31.12.2013

 

 

(Unaudited)

(Unaudited)

(Unaudited))

 

A. Physical Performance

 

 

 

 

Crude Throughput (MMT)

5.63

6.04

17.30

 

Market Sales (MMT)

8.77

7.79

25.15

 

Sales Growth (%)

3.54

0.26

1.66

 

Export Sales (MMT)

0.75

1.07

2.50

 

 

 

 

 

1

Income

 

 

 

 

Net Sales/Income from Operations

647342.300

617573.800

1851968.900

 

Other Operating Income

333.900

271.300

916.800

 

Total Income

647676.200

617845.100

1852885.700

2

Expenditure

 

 

 

 

Cost of materials consumed

282495.300

288467.300

798981.800

 

Purchase of stock in trade

344967.800

291865.500

943359.700

 

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

4726.600

(18167.500)

(10312.400)

 

Employee benefits expenses

6059.100

6680.700

21054.000

 

Depreciation and amortization expenses

5592.300

5382.000

16279.000

 

Other expenses

18585.600

31921.800

82517.700

 

Total

662426.700

606149.800

1851879.800

3.

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

(14750.500)

11695.300

1005.900

4

Other Income

2508.000

4568.100

10459.100

 

 

 

 

 

5

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

(12242.500)

16263.400

11465.000

6

Finance Cost

3045.300

3243.900

11542.400

7

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

(15287.800)

13019.500

(77.400)

8

Exceptional items

--

--

--

9

Profit/(Loss) from Ordinary activities before tax

(15287.800)

13019.500

(77.400)

10

Tax Expense

(4398.400)

3708.200

(2.500)

11

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

(10889.400)

9311.300

(74.900)

12

Extraordinary Items (net of tax expense)

--

--

--

13

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

(10889.400)

9311.300

(74.900)

 

Paid - up equity share capital (face value

Rs.10/- each)

7230.800

7230.800

7230.800

 

Reserves (Excluding revaluation reserve)

-

--

-

 

Earnings per share - Basic (Rs.)

(15.06)

12.88

(0.10)

 

Earnings per share – Diluted (Rs.)

(15.06)

12.88

(0.10)

 

SELECT INFORMATION FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER, 2013

 

No.

Particulars

Three Months ended

Nine Months ended

 

 

 

 

31.12.2013

30.09.2013

31.12.2013

 

 

(Unaudited)

(Unaudited)

(Unaudited))

A

PARTICULARS OF SHAREHOLDING

 

 

 

1

Public Shareholding

 

 

 

 

-Number of Shares

32,58,84,128

32,58,84,128

32,58,84,128

 

- Percentage of Shareholding

45.07%

45.07%

45.07%

2

Promoters and Promoter Group Shareholding

 

 

 

 

a) Pledged/Encumbered

 

 

 

 

- Number of Shares

Nil

Nil

Nil

 

- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)

Nil

Nil

Nil

 

- Percentage of Shares (as a % of the Total Share Capital of the Company)

Nil

Nil

Nil

 

b) Non Encumbered

 

 

 

 

- Number of Shares

39,72,00,120

39,72,00,120

39,72,00,120

 

- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)

100%

100%

100%

 

- Percentage of Shares (as a % of the Total Share Capital of the Company)

54.93%

54.93%

54.93%

 

 

 

Particulars

Three months ended

 

 

31.12.2013

B

INVESTOR COMPLAINTS

 

 

Pending at the beginning of the quarter

NIL

 

Received during the quarter

NIL

 

Disposed of during the quarter

NIL

 

Unresolved at the end of the quarter

NIL

 

Notes:

 

1. The market sales during the nine months ended 31st December 2013 was higher at 25.15 MMT when compared to 24.74 MMT achieved during the corresponding period of previous year. Increase is mainly in HSD-Retail (6.55%), MS-Retail (9.06%) and ATF (12.70%) partly offset by decrease in LSHS (-48.81%) and Furnace Oil (-20.19%).

 

2. The Average Gross Refining Margin (GRM) during the nine months ended 31st December 2013 is USD 3.50 per barrel (April – December 2012:  USD 4.63 per barrel).

 

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

 

a.     Rs.118243.000 Millions for the current nine months (April – December 2012: Rs. 108821.300 Millions) discount on Crude Oil/Products purchased from ONGC/GAIL/NRL which has been adjusted against the purchase cost.

 

 b. Rs.8,81,73.600 Millions compensation advised by the Government of India by way of subsidy for the current nine months as against Rs.13,22,66.500 Millions accounted during the period April – December 2012 as income.

 

Consequent to non-revision in Retail Selling Prices corresponding to the international prices and applicable foreign exchange rates prevailing during the current nine months, the Corporation has absorbed net under-recovery of Rs. 4,16,28.800 Millions during April – December 2013 (April – December 2012: Rs. 5,91,66.700 Millions) on sale of sensitive petroleum products.

 

4. Other expenditure for the nine months ended 31st December 2013 includes Rs.11300.900 Millions (April – December 2012:Rs. 84,16.000 Millions) towards  loss on account of foreign exchange fluctuations.

 

5. Depreciation includes Rs.5940.000 Millions for the current nine months as compared to Rs. 4047.900 Millions during the period April – December 2012 on account of LPG cylinders depreciated at 100%.

 

6. In view of loss in the current nine months and due to uncertainty in estimation of profits for the year, pending finalisation of compensation for under recoveries on sale of sensitive petroleum products, no provision is required to be made for the tax expense for the period.

 

7. Figures relating to corresponding periods of the previous year have been regrouped wherever necessary.

 

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

 

9. The Auditors have completed limited review of the financial results of the Corporation for the quarter ended 31st December 2013. Further, the  above results have been reviewed and recommended by the Audit Committee at its meeting held on 12th February 2014 before submission to  the Board.

 

The above un-audited results of Bharat Petroleum Corporation Limited for the nine months ended 31st December 2013 have been approved by the  Board at its meeting held on 12th February 2014.

 

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 & 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 records 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.59.33

UK Pound

1

Rs.99.68

Euro

1

Rs.80.30

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

RAS

 

 

Report Prepared by :

SNT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

9

OPERATING SCALE

1~10

9

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

Yes

--LITIGATION

YES/NO

Yes

--OTHER ADVERSE INFORMATION

YES/NO

No

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

No

--EXPORT ACTIVITIES

YES/NO

No

--AFFILIATION

YES/NO

Yes

--LISTED

YES/NO

Yes

--OTHER MERIT FACTORS

YES/NO

Yes

DEFAULTER

 

 

--RBI

YES/NO

No

--EPF

YES/NO

No

TOTAL

 

81

 

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

 

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

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

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

 

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.