MIRA INFORM REPORT
|
Report Date : |
24.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
HINDUSTAN PETROLEUM CORPORATION LIMITED |
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Registered
Office : |
Petroleum House, 17, Jamshedji Tata Road, Churchgate, Mumbai – 400020,
Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
05.07.1952 |
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Com. Reg. No.: |
11-008858 |
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Capital
Investment / Paid-up Capital : |
Rs. 3390.100 millions |
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CIN No.: [Company Identification
No.] |
L23201MH1952GOI008858 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMH07165E |
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PAN No.: [Permanent Account No.] |
AAACH1118B |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Refining and Marketing of Petroleum Products and Exploration and Production of Hydrocarbons. |
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No. of Employees
: |
11007 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
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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 |
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Maximum Credit Limit : |
USD 549000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well established and reputed company owned by the
government of India having a good track record. Financial position of the company seems to be strong. Overall
fundamentals of the company seems to be sound and healthy. Trade relations are reported to be decent. Business is active. Payment
terms are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual
trade terms and condition. |
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
The economy grew 4.7 %in 2013/14, marking a
second straight year of sub-5 % growth – the worst slowdown in more than a
quarter of a century. The data was below an official estimate of 4.9 % annual
growth and compared with 4.5 % in the last fiscal year. However, the current
account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic
product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year
before.A sharp fall in gold imports due to restrictions on overseas purchases
and muted import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of the
global e-commerce giant Amazon. The company raised $ 210 million from Russian
Investment firm DST Global which has also invested in companies like Facebook,
Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two.While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala Police had arrested Pinckney
and two company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US
governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy
AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55
pounds a share.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating: “AAA” |
|
Rating Explanation |
Have highest degree of safety and carry lowest credit risk. |
|
Date |
18.06.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating: “A1+” |
|
Rating Explanation |
Have very strong degree of safety and carry lowest credit risk. |
|
Date |
18.06.2014 |
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 DECLINED
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-22863900)
LOCATIONS
|
Registered/ Corporate
Headquarters Office / Factory : |
Petroleum House, 17 Jamshedji Tata Road, Churchgate, Mumbai – 400020, Maharashtra, India |
|
Tel. No.: |
91-22-22026151/ 22863900 |
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Fax No.: |
91-22-22872992/ 22841573/ 22872992 |
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E-Mail : |
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Website : |
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Marketing
Headquarters Offices : |
Hindustan Bhavan, 8, Shoorji Vallabhdas Marg, P. B. No. 155, Ballard
Estate, Mumbai – 400001, Maharashtra, India |
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Tel. No.: |
91-22-22618031/ 22637000/ 2263 |
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Fax No.: |
91-22-22611822 |
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Aviation Office : |
2nd Floor, Gresham Assurance
Building, Sir P.M. Road, Po Box N 198, Fort, Mumbai – 400001, Maharashtra,
India |
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Regional Office (HP Gas) : |
LPG Bottling Plant, P.B. No : 11, Jatni , Kusumati,Jatni,
Khurda - 752050, Orissa, India |
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Tel. No.: |
91-674-2492912/ 2492505/ 2492912 |
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Refinery : |
Mumbai Refinery B.D. Patil Marg, Chembur, Mumbai – 400074, Maharashtra, India Visakh Refinery Post Box No. 15, Siripuram Opposite A U Outgate, Vishakhapatnam – 530001, Andhra Pradesh,
India |
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Regional Offices (Bulk Fuels and Lubes) / (HP Gas) : |
Located at · Ahmedabad · Bangalore · Bhopal · Bhubaneshwar · Chandigarh · Chennai · Delhi · Jaipur · Jamshedpur ·
Kochi |
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Regional Offices (Retail): |
Located at · Agra · Ahmedabad · Aurangabad · Bangalore · Bathinda · Begusarai · Belgaum · Bhopal · Bhubaneshwar |
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Zonal Offices : |
Located at · Kolkata · Delhi · Visakhapatnam · Ahmedabad · Chennai · Mumbai ·
Lucknow |
DIRECTORS
As on 31.03.2013
|
WHOLE TIME
DIRECTORS : |
|
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|
|
|
Name : |
Mr. S. Roy
Choudhury |
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Designation : |
Chairman and
Managing Director (From 01.08.2010) |
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|
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Name : |
Mrs. Nishi Vasudeva |
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Designation : |
Director – Marketing, (From 04.07.2011) |
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Date of Birth/Age : |
30.03.1956 |
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Qualification : |
B.A., PGDBM (IIM Kolkata) |
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Other Directorship : |
SA LPG Company Private Limited |
|
|
|
|
Name : |
Mr. Pushp Kumar Joshi |
|
Designation : |
Director - Human Resources |
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Date of Birth/Age : |
08.08.1964 |
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Qualification : |
B.A., LLB PG (PM & IR), XLRI, Jamshedpur |
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Date of Appointment : |
01.08.2012 |
|
|
|
|
Name : |
Mr. K.V. Rao |
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Designation : |
Director – Finance |
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Date of Birth/Age : |
03.09.1955 |
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Qualification : |
B.Com, FCA. |
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Date of Appointment
: |
01.06.2013 |
|
|
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|
Name : |
Mr. B.K. Namdeo |
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Designation : |
Director – Refineries |
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Date of Birth/Age : |
17.10.1956 |
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Qualification : |
B.E. (Mech) M.Tech (IIT, Mumbai) |
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Date of Appointment : |
01.07.2013 |
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Name : |
Mr. B. Mukherjee |
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Designation : |
Director – Finance |
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Date of Birth/Age : |
03.05.1953 |
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Qualification : |
B.Sc., FCA |
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Date of Appointment : |
01.02.2008 |
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|
|
|
Name : |
Mr. K. Murali |
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Designation : |
Director – Refineries |
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Date of Birth/Age : |
02.06.1953 |
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Qualification : |
B. Tech (Chemical Engineering) |
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Date of Appointment : |
02.02.2009 |
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Date of Cessation: |
31.05.2013 |
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EX – OFFICIO PART-
TIME DIRECTORS |
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|
|
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Name : |
Dr. S C Khuntia |
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Designation : |
Director |
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Date of Birth/Age : |
21.11.1957 |
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Qualification : |
IAS Post Graduate in Physics, Economics, Sociology and Ph.D in Art Economics |
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Date of Appointment : |
03.08.2012 |
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|
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Name : |
Mr. R.K. Singh |
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Designation : |
Director |
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Date of Birth/Age : |
24.11.1964 |
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Qualification : |
B.A. (Eco), IAS |
|
Date of Appointment : |
26.06.2013 |
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|
Name : |
Mr. L.N. Gupta |
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Designation : |
Director |
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Date of Appointment : |
05.06.2013 |
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NON OFFICIAL PART
TIME DIRECTOR |
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|
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Name : |
Mr. Anil Razdan |
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Designation : |
Non-Executive Independent Director
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Date of Birth/Age : |
07.12.1948 |
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Qualification : |
IAS |
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Date of Appointment : |
10.01.2011 |
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Name : |
Mr. S K Roongta |
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Designation : |
Non-Executive Independent Director |
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Date of Birth/Age : |
09.05.1950 |
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Qualification : |
B.E. (Electrical) PGDBM (IIFT) |
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Date of Appointment : |
10.01.2011 |
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Name : |
Mr. G K Pilla |
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Designation : |
Non Official Part Time Director |
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Date of Birth/Age : |
30.11.1949 |
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Qualification : |
IAS, M.Sc. |
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Date of Appointment : |
09.04.2012 |
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|
|
|
Name : |
Mr. A C Mahajan |
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Designation : |
Non Official Part Time Director |
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Date of Birth/Age : |
05.07.1950 |
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Qualification : |
M.Sc. (Hons.) |
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Date of Appointment : |
09.04.2012 |
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|
Name : |
Mr. G Raghuram |
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Designation : |
Non Official Part Time Director |
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Date of Birth/Age : |
20.07.1955 |
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Qualification : |
B.Tech. PGDM Ph.D. |
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Date of Appointment : |
09.04.2012 |
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|
Name : |
Dr. Gitesh K Shah |
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Designation : |
Non Official PartTime Director |
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Date of Birth/Age : |
20.10.1961 |
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Qualification : |
D.Sc. (Organic Chemistry) USA Ph.D. (Organic Chemistry) Gujarat University M.Sc. (Organic Chemistry) Gujarat University |
|
Date of Appointment : |
07.12.2009 |
KEY EXECUTIVES
|
Name : |
Mr. Shrikant M Bhosekar |
|
Designation : |
Company
Secretary |
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SENIOR MANAGEMENT
TEAM: |
Mr. Suneet Mohan Misra Chief Vigilance Officer Mr. D.K. Deshpande ED - (HSE Corporate) Mr. A.B. Thosar ED - Rajasthan Refinery Project Mr. O.P. Pradhan ED - PCPIR Project Mr. R.S. Rao ED - IT and S Mr. S.P. Gupta ED * Mr. M.S. Damle ED - Retail Mr. Y.K. Gawali ED - LPG Mr. Rajan K. Pillai ED * Mr. S.C. Mehta ED - Mumbai Refinery Mr. S. Jeyakrishnan ED - Direct Sales Mr. S.P. Singh ED - Centralized Procurement Project Mr. G. Sriganesh ED - Refineries (Corporate R&D) Mr. H. Kumar ED - Corp. Strategy and Planning Mr. A. Pande ED - Projects and Pipelines Mr. S.T. Sathiavageeswaran ED - Information Systems Mr. Ajit Singh ED - Co-ordination, DCO Mr. Rakesh Misri ED - Human Resources Mr. N.S. J. Rao ED - RCD Mr. S.I. Joseph ED - Employee Relations Mr. H.R. Wate ED - Gas, Renewables and Business Development Mr. M.K. Surana ED * Mr. Rakesh Kumar ED - Compensation Management Mr. V.V.R. Narasimham ED - Visakh Refinery Mr. J. Ramaswamy ED - Corporate Finance Mr. H.C. Mehta ED - Operations and Distribution Mr. R. Ganesan GM - Finance, Mumbai Refinery Mr. A. V. Sarma GM - Commercial, P&P Mr. S. Babu Ganesan GM - Engineering and Projects Mr. P. P. Nadkarni GM - Retail, South Zone Mr. Ramanuj Roy GM - Corporate Accounts Mr. R. Radhakrishnan GM - Aviation Mr. V.K. Jain GM - Tax Ms. Sonal Desai GM - Finance, CSR Mr. M. Naveen Kumar GM - Finance, IT&S Mr. M. Rambabu GM - Maintenance, Mumbai Refinery Mr. S.K. Kulkarni GM - Materials, Mumbai Refinery Ms. Geeta M. Jerajani GM - Finance, CS&P Mr. M.V.R. Krishnaswamy GM * Mr. S.P. Nair GM - Legal Mr. R. Kesavan GM - Integrated Margin Management Mr. B. Ravindran GM - Finance (Marketing) Mr. U.K. Vishwekar GM - Shipping Mr. Anil Khurana GM * Mr. G.S.V.S.S. Sarma GM - Technical, Visakh Refinery Mr. S.P. Gaikwad GM - Rajasthan Refinery Project Mr. Rajnish Mehta GM - Retail, West Zone Mr. J.S. Prasad GM - Pipelines Mr. N.S. Mane GM - Human Resources, Mumbai Refinery Mr. V.S. Shenoy GM - Operations, Visakh Refinery Mr. M.D. Pawde GM - Operations, Mumbai Refinery Mr. S. Paul GM - Internal Audit Mr. N.V. Choudhury GM - Process Technologies, Corporate R&D Mr. L. Venugopal GM - Projects, Visakh Refinery Mr. S. Raja GM - Maintenance, Visakh Refinery Mr. G. Chiranjeevi GM - Retail, North Zone Mr. D.K. Pattanaik GM - Retail, East Zone Mr. S. Bhattacharjee GM - Joint Ventures Mr. K Daniel Santosh GM - Finance, Visakh Refinery Mr. S. Biswas GM - LPG (Sales and Marketing) Mr. K. Ananda Rao GM * Mr. A.S.V. Ramanan GM - Human Resources, Visakh Refinery Mr. T.S. Sawhney GM * Mr. G.S.V. Prasad GM - Retail Mr. K. Radhakrishnan GM - I&C, West Zone Mr. Vikram Gulati GM - Treasury and Pricing Mr. A.V. Narayana Rao GM - Commercial, LPG SBU Mr. Shrikant M Bhosekar Company Secretary Mr. S.P. Nair GM - Legal Mr. R. Kesavan GM - Integrated Margin Management Mr. B. Ravindran GM - Finance (Marketing) Mr. U.K. Vishwekar GM - Shipping Mr. Anil Khurana GM * Mr. G.S.V.S.S. Sarma GM - Technical, Visakh Refinery Mr. S.P. Gaikwad GM - Rajasthan Refinery Project Mr. Rajnish Mehta GM - Retail, West Zone Mr. J.S. Prasad GM - Pipelines Mr. N.S. Mane GM - Human Resources, Mumbai Refinery Mr. V.S. Shenoy GM - Operations, Visakh Refinery Mr. M.D. Pawde GM - Operations, Mumbai Refinery Mr. S. Paul GM - Internal Audit Mr. N.V. Choudhury GM - Process Technologies, Corporate R&D Mr. L. Venugopal GM - Projects, Visakh Refinery Mr. S. Raja GM - Maintenance, Visakh Refinery Mr. G. Chiranjeevi GM - Retail, North Zone Mr. D.K. Pattanaik GM - Retail, East Zone Mr. S. Bhattacharjee GM - Joint Ventures Mr. K Daniel Santosh GM - Finance, Visakh Refinery Mr. S. Biswas GM - LPG (Sales and Marketing) Mr. K. Ananda Rao GM * Mr. A.S.V. Ramanan GM - Human Resources, Visakh Refinery Mr. T.S. Sawhney GM * Mr. G.S.V. Prasad GM - Retail Mr. K. Radhakrishnan GM - I&C, West Zone Mr. Vikram Gulati GM - Treasury and Pricing Mr. A.V. Narayana Rao GM - Commercial, LPG SBU *on deputation |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
173076750 |
51.11 |
|
|
173076750 |
51.11 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
173076750 |
51.11 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
32344511 |
9.55 |
|
|
42533433 |
12.56 |
|
|
35767931 |
10.56 |
|
|
293520 |
0.09 |
|
|
293520 |
0.09 |
|
|
110939395 |
32.76 |
|
|
|
|
|
|
31934841 |
9.43 |
|
|
|
|
|
|
15737737 |
4.65 |
|
|
5522013 |
1.63 |
|
|
1416514 |
0.42 |
|
|
2805 |
0.00 |
|
|
180096 |
0.05 |
|
|
24469 |
0.01 |
|
|
952205 |
0.28 |
|
|
253595 |
0.07 |
|
|
100 |
0.00 |
|
|
3244 |
0.00 |
|
|
54611105 |
16.13 |
|
Total Public shareholding (B) |
165550500 |
48.89 |
|
Total (A)+(B) |
338627250 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
338627250 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Refining and Marketing of Petroleum Products and Exploration and Production of Hydrocarbons. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
Licensed capacity and Installed capacity at year end in Metric Tonnes
per annum
|
Particulars |
Licensed Capacity |
Installed Capacity |
|
(a) Petroleum fuel and lube products |
14800000 |
14800000 |
|
(b) Lubricating Oils, Greases and Textile Auxiliaries * |
NA |
319779 |
|
(c) Hydraulic Brake Fluid and Insecticides |
NA |
4062 |
* Product manufacturing facilities are interchangeable
Production in
Metric Tonnes:
|
Particulars |
Actual
Production |
|
(a) Petroleum fuel and lube products |
|
|
i. Bulk Petroluem Products |
14765526 |
|
ii. Lubricating Oil
Base Stocks(including Transformer Oil Base Stocks) |
382420 |
|
iii. Carbon Black Feed Stock |
- |
|
iv. Axle Oil |
- |
|
v. Rubber Processing Oil |
94168 |
|
(b) Lubricating Oils |
183249 |
|
(c) Textile Auxiliaries |
17 |
|
(d) Insecticides |
168 |
|
(e) Greases |
6873 |
GENERAL INFORMATION
|
No. of Employees : |
11007 (Approximately) |
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Bankers : |
· Bank of Baroda · Bank of India · Citibank N.A. · Corporation Bank · HDFC Bank Limited · ICICI Bank Limited · Punjab National Bank · Standard Chartered Bank · State Bank of India ·
Union Bank of India |
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Facilities : |
NOTE LONG TERM
BORROWINGS Debentures The Company has
issued the following Secured Redeemable Non-convertible Debentures: i. 8.77% Non-Convertible Debentures were issued on 13th March, 2013 with the maturity date of 13th of March, 2018. These are secured by mortgage, on first pari passu charge basis, over certain fixed assets of the Company. ii. 8.75% Non-Convertible Debentures were issued on 9th November, 2012 with the maturity date of 9th of November, 2015. These are secured by mortgage, on first pari passu charge basis, over certain fixed assets of the Company. iii. 7.70% Non-Convertible Debentures were issued on 12th April, 2010 with the maturity date of 12th of April, 2013. The same have been shown as “Current Maturity of Long Term Debts”. These are secured by mortgage, on first pari passu charge basis, over certain fixed assets of the Company situated at Mumbai Refinery and Visakh Refinery. Syndicated Loans
from Foreign Banks (repayable in foreign currency) The Company has availed Long Term Foreign Currency
Syndicated Loans from banks on floating LIBOR. These loans are taken for the
period of 5 years. During the year ended March, 2013 an amount of Rs. Nil.
(2011-2012 Rs. 11212.300 Millions) of Syndicated Loans is repayble withing
one year. |
|
Banking Relations
: |
-- |
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Auditors : |
|
|
|
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|
Statutory Auditors Name : |
Om Agarwal and Company Chartered Accountant |
|
Address : |
Jaipur, Rajasthan, India |
|
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|
Statutory Auditors Name : |
B. K. Khare and Company Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Cost Auditors Name : |
R. Nanabhoy and Company Cost Accountant |
|
Address : |
Jer Mansion, 1st Floor, 70, August Kranti Marg, Mumbai - 400036, Maharashtra, India |
|
|
|
|
Cost Auditors Name : |
CMA Rohit J. Vora Cost Accountant |
|
Address : |
1103, Raj Sunflower, Royal Complex, Eksar Road, Borivali West, Mumbai - 400092, Maharashtra, India |
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Joint Venture
Companies: |
· Prize Petroleum Company Limited (upto 18-12-2011) · HPCL-Mittal Energy Limited · Hindustan Colas Limited · South Asia LPG Company Private Limited · Petronet India Limited · Aavantika Gas Limited · Mangalore Refinery and Petrochemicals Limited · Petronet MHB Limited · Bhagyanagar Gas Limited · GSPL India Gasnet Limited (w.e.f 04-07-2012) · GSPL India Transco Limited (w.e.f 04-07-2012) |
|
|
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Subsidiaries: |
· CREDA-HPCL Biofuels Limited · HPCL Biofuels Limited · Prize Petroleum Company Limited (w.e.f. 19-12-2011) |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
349250000 |
Equity Shares |
Rs.10/- each |
Rs.3492.500 Millions |
|
75000 |
Preference Shares |
Rs.100/- each |
Rs.7.500 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 3500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
339330000 |
Equity Shares |
Rs.10/- each |
Rs.3393.300 Millions |
|
|
Less: 702750 Shares Forfeited |
|
Rs.7.000 Millions |
|
338627250 |
Equity Shares |
Rs.10/- each |
Rs.3386.300 Millions |
|
|
Add: Shares Forfeited (money received) |
|
Rs.3.900 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.3390.100
Millions |
Note
Details of shares
held by each shareholder holding more than 5% shares in the Company
|
Name of shareholder |
31.03.2013 |
|
|
% Holding |
No. of Shares |
|
|
President of India |
51.11 |
173,076,750 |
|
Life Insurance Corporation of India |
9.84 |
33,332,314 |
Right and
Restrictions on Equity Shares
The Company has only one class of Equity Shares having a face value of Rs. 10/- per share which are issued and subscribed. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of the winding up of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held by the shareholders and the amount paid up thereon. The Company also has 75,000 6% cummulative Redeemable Non-convertible Preference Shares of Rs. 100 /- each as a part of the Authorised Capital , which were issued earlier by the erstwhile ESRC. Presently the said Preference Shares stand redeemed.
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 |
3390.100 |
3390.100 |
3390.100 |
|
(b) Reserves & Surplus |
133873.900 |
127835.100 |
122068.000 |
|
(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) |
137264.000 |
131225.200 |
125458.100 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
89471.800 |
62913.700 |
54180.500 |
|
(b) Deferred tax liabilities (Net) |
35983.500 |
30852.800 |
31956.400 |
|
(c) Other long term
liabilities |
62111.900 |
54712.700 |
46135.700 |
|
(d) long-term
provisions |
4989.600 |
4365.500 |
2732.100 |
|
Total Non-current
Liabilities (3) |
192556.800 |
152844.700 |
135004.700 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
235110.900 |
211878.800 |
182110.400 |
|
(b) Trade
payables |
110369.400 |
125611.200 |
90294.000 |
|
(c) Other
current liabilities |
69140.800 |
74065.200 |
58488.400 |
|
(d) Short-term
provisions |
18005.400 |
15470.400 |
16255.300 |
|
Total Current
Liabilities (4) |
432626.500 |
427025.600 |
347148.100 |
|
|
|
|
|
|
TOTAL |
762447.300 |
711095.500 |
607610.900 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
224416.700 |
207355.600 |
185263.800 |
|
(ii)
Intangible Assets |
1070.300 |
1140.900 |
1181.500 |
|
(iii)
Capital work-in-progress |
51728.700 |
44444.700 |
36960.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
82660.700 |
74834.300 |
73243.300 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
19304.700 |
14992.800 |
12754.600 |
|
(e) Other
Non-current assets |
959.800 |
674.600 |
2275.600 |
|
Total Non-Current
Assets |
380140.900 |
343442.900 |
311678.800 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
23608.600 |
28870.700 |
40106.900 |
|
(b)
Inventories |
164387.000 |
194545.300 |
166222.800 |
|
(c) Trade
receivables |
49350.400 |
35651.600 |
30768.600 |
|
(d) Cash
and cash equivalents |
1471.300 |
2263.800 |
790.200 |
|
(e)
Short-term loans and advances |
140703.600 |
101513.100 |
55517.900 |
|
(f) Other
current assets |
2785.500 |
4808.100 |
2525.700 |
|
Total
Current Assets |
382306.400 |
367652.600 |
295932.100 |
|
|
|
|
|
|
TOTAL |
762447.300 |
711095.500 |
607610.900 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2065293.400 |
1781392.300 |
1334989.400 |
|
|
|
Other Operating Revenue |
2019.200 |
1965.900 |
1728.800 |
|
|
|
Other Income |
11023.600 |
10255.900 |
11706.600 |
|
|
|
TOTAL (A) |
2078336.200 |
1793614.100 |
1348424.800 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
631826.100 |
569432.300 |
403620.100 |
|
|
|
Purchases of Stock-in-Trade |
1281786.000 |
1093707.300 |
853968.600 |
|
|
|
Packages consumed |
1831.200 |
1816.700 |
1434.200 |
|
|
|
Excise Duty on Inventory differential |
(2275.400) |
(3996.800) |
2851.500 |
|
|
|
Transshipping Expenses |
37854.300 |
32545.000 |
28865.000 |
|
|
|
Changes in inventories of finished goods, work-in-progress and Stock-in-Trade |
8094.500 |
(8242.900) |
(34387.800) |
|
|
|
Employee benefits expense |
25255.600 |
15831.000 |
19818.400 |
|
|
|
Exploration Expenses |
548.100 |
963.800 |
930.300 |
|
|
|
Other Expenses |
39775.600 |
40838.700 |
24804.700 |
|
|
|
Prior Period Charges |
(1133.900) |
4.900 |
152.400 |
|
|
|
TOTAL (B) |
2023562.100 |
1742900.000 |
1302057.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
54774.100 |
50714.100 |
46367.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
20193.300 |
21392.400 |
8920.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION(C-D) (E) |
34580.800 |
29321.700 |
37446.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
19835.200 |
17129.300 |
14069.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F)
(G) |
14745.600 |
12192.400 |
23377.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
5698.500 |
3078.100 |
7987.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER
TAX (G-H) (I) |
9047.100 |
9114.300 |
15390.100 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
96827.300 |
93731.200 |
87151.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
904.700 |
911.400 |
1539.000 |
|
|
|
Transfer from Debenture Redemption Reserve |
(2591.900) |
0.000 |
0.000 |
|
|
|
Debenture Redemption Reserve |
2275.200 |
1761.500 |
1761.500 |
|
|
|
Proposed Final Dividend |
2878.300 |
2878.300 |
4740.800 |
|
|
|
Tax on Distributed Profits |
489.200 |
467.000 |
769.100 |
|
|
BALANCE CARRIED
TO THE B/S |
101918.900 |
96827.300 |
93731.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB basis |
64168.200 |
77824.800 |
55228.000 |
|
|
TOTAL EARNINGS |
64168.200 |
77824.800 |
133052.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
561174.000 |
514651.200 |
299307.800 |
|
|
|
Stores & Spares |
888.800 |
630.900 |
836.300 |
|
|
|
Reimbursement of expenses |
1263.300 |
1001.000 |
1127.400 |
|
|
TOTAL IMPORTS |
563326.100 |
516283.100 |
301271.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
26.72 |
26.92 |
45.45 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
31.03.2014 |
|
Type |
1st Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
5176386 |
518601.800 |
554549.900 |
641923.000 |
|
Total Expenditure |
524517.400 |
508459.700 |
563857.000 |
582538.200 |
|
PBIDT (Excl OI) |
(6878.800) |
10142.100 |
(9307.100) |
59384.800 |
|
Other Income |
2041.500 |
2434.800 |
1965.200 |
3302.900 |
|
Operating Profit |
(4837.300) |
12576.900 |
(7341.900) |
62687.700 |
|
Interest |
4667.500 |
3962.000 |
4431.700 |
1984.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
(9504.800) |
8614.900 |
(11773.600) |
60703.000 |
|
Depreciation |
5100.000 |
5425.700 |
5565.500 |
5793.200 |
|
Profit Before Tax |
(14604.800) |
3189.200 |
(17339.100) |
54909.800 |
|
Tax |
0.000 |
0.000 |
0.0.0 |
8817.400 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(14604.800) |
3189.200 |
(17339.100) |
46092.400 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(14604.800) |
3189.200 |
(17339.100) |
46092.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.44
|
0.51
|
1.14 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.71
|
0.68
|
1.75 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.35
|
2.06
|
4.70 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.09
|
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.36
|
2.09
|
1.88 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.88
|
0.86
|
0.85 |
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 |
3390.100 |
3390.100 |
3390.100 |
|
Reserves & Surplus |
122068.000 |
127835.100 |
133873.900 |
|
Net
worth |
125458.100 |
131225.200 |
137264.000 |
|
|
|
|
|
|
long-term borrowings |
54180.500 |
62913.700 |
89471.800 |
|
Short term borrowings |
182110.400 |
211878.800 |
235110.900 |
|
Total
borrowings |
236290.900 |
274792.500 |
324582.700 |
|
Debt/Equity
ratio |
1.883 |
2.094 |
2.365 |
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) |
|
Sales |
1334989.400 |
1781392.300 |
2065293.400 |
|
|
|
33.439 |
15.937 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1334989.400 |
1781392.300 |
2065293.400 |
|
Profit |
15390.100 |
9114.300 |
9047.100 |
|
|
1.15% |
0.51% |
0.44% |
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 |
Yes |
|
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 |
Yes |
|
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 |
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
PRESENTATION
DATE :- 03/04/2014 |
|
Lodging No: NMSL/763/2014 Filing Date: 03/04/2014 Reg. No.: NMS/492/2014 Reg. Date: 07/04/2014 |
|
MAIN MATTER Lodging No.: ARBPL/598/2014 |
|
Petitioner: M/S.
NORTH INDIA WIRES LTD -
Respondent: M/S.
HINDUSTAN PETROLEUM CORPORATION LIMITED Petn. Adv : M/S. MANSUKHLAL HIRALAL HIRALAL & CO District: OUTSIDE MAHARASHTRA Resp. Adv.:-
SHIVPRASAD RAMCHANDRA PAGE (R-1) (0) |
|
Bench: SINGLE Status: Pre-Admission
Category:
NOTICE OF MOTION Last Date: 17/04/2014 Stage: Last Coram: ACCORDING TO SITTING LIST |
|
Act: Arbitration and Conciliation Act 1996
|
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10503036 |
11/04/2014 |
1,200,000,000.00 |
OIL INDUSTRY DEVELOPMENT BOARD |
301, WORLD TRADE CENTRE,
3RD FLOOR, BABAR ROAD, |
C06664536 |
|
2 |
10501126 |
11/10/2013 |
1,380,000,000.00 |
OIL INDUSTRY DEVELOPMENT BOARD |
301, WORLD TRADE
CENTRE, 3RD FLOOR, BABAR ROAD, |
C05660931 |
|
3 |
10424270 |
04/05/2013 |
9,750,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BLDG. GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
B74594912 |
|
4 |
10401108 |
01/02/2013 |
5,450,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
B67275198 |
|
5 |
90238781 |
16/01/2008 * |
40,000,000,000.00 |
STATE BANK OF INDIA |
CORPORATE ACCOUNTS GROUP, IIIRD FLOOR, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400016, INDIA |
A30866602 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Term Loan from Oil Industry Development Board |
5595.000 |
8902.500 |
|
Syndicated Loans from Foreign Banks (repayable in foreign currency) |
68676.800 |
44011.200 |
|
SHORT TERM
BORROWINGS |
|
|
|
Short Term Loans from Banks (repayable in foreign currency) |
197072.700 |
148508.200 |
|
Clean Loans from Banks |
14490.000 |
6000.000 |
|
Inter Company Deposits |
0.000 |
9450.000 |
|
Commercial Papers |
0.000 |
31400.000 |
|
Total |
285834.500 |
248271.900 |
REFINERY PERFORMANCE
HPCL refineries processed a combined crude thruput of 15.78 MMT (16.19 MMT in 2011-12) with a capacity utilization of 107% of the installed capacity of 14.80 MMT.
The Combined distillate yield of 73.0% was realized by processing High Sulphur / Low Sulphur crude in the ratio of 65:35.
The Overall MoU Rating for HPCL refineries for parameters Viz. Crude throughput, Distillate yields, Specific Energy Consumption, projects, Sustainable development, HSE and R&D stands at “Very Good” level.
Refineries have achieved best ever production in LPG (818 TMT), MS (2,619 TMT) and Bitumen which has crossed 1 million mark (1,042 TMT).
Gross refining margins of Mumbai Refinery averaged at US $ 2.08 per barrel as against US $ 2.83 per barrel for the year 2011-12.
Gross refining margins of Visakh Refinery averaged at US $ 2.08 per barrel as against US $ 2.95 per barrel for the year 2011-12.
MUMBAI REFINERY:
The year 2012-13 has been remarkable for Mumbai Refinery with the crude throughput of 7.75 MMT as against installed capacity of 6.50 MMT with capacity utilization of 119%. The refinery has also set a milestone by recording the highest ever crude thruput surpassing the previous best of 7.51 MMT during 2011-12.
The Distillate yields achieved during the year was 73.5%. Mumbai Refinery attained Specific Energy Consumption (MBTU/BBL/ NRGF) of 82.6 against MoU Excellent target of 86.0.
The Fuel and loss figure of 7.5% was better than the target of 8.0%.
Refinery recorded best ever production Viz. MS, RPO and Bulk Bitumen production through effective utilization of assets during 2012-13.
VISAKH REFINERY :
Visakh Refinery achieved crude thruput of 8.03 MMT as against installed capacity of 8.30 MMT with capacity utilization of 96%. The Distillate yield achieved during the year was 72.6%. It has also contributed in optimizing Fuel and loss figures recording 7.6% was better than the target of 8.1%
Refinery recorded best ever production viz. LPG, Bitumen through optimum utilization of assets during the year 2012-13.
The refinery has taken proactive role in the area of energy conservation and has achieved significant improvement in the area of energy conservation by continuously practicing the energy conservation techniques and implementing energy conservation projects.
These measures have helped in achieving best ever Specific Energy Consumption (MBTU/BBL/NRGF) of 84.0 against MoU Excellent target of 88.0.
MARKETING PERFORMANCE
During the year 2012-13, the Corporation has achieved sales volume (including exports) of 30.32 Million Tonnes as against 29.48 Million Tonnes recorded in 2011-12. HPCL recorded a growth of 4.70% in Marketing Sales, over the sales volume of the previous year and amongst public sector oil companies increased its market share to 20.19% as on 31st March, 2013 from 19.96% recorded in the previous year.
During the year, the Corporation commissioned 1,018 new Retail Outlets, which include 318 retail outlets in the rural areas taking the total tally to 12,173 Retail Outlets. The Corporation increased its market share in MS and HSD (combined) by 0.14%. In the LPG business line, the Corporation enrolled 32.17 Lakhs new HP Gas Domestic customers taking their total to 395 lakhs as on 31st March, 2013. In order to provide LPG to rural India, the Corporation commissioned 243 distributors under the Rajiv Gandhi Gramin LPG Vitaran Yojana. The Corporation also commissioned 54 Regular LPG distributors.
The Direct Sales Business line comprises of Industrial and Commercial (IandC) and Lubes and Greases. The Corporation achieved a marketing sales volume of 3,985 TMT in the I&C segment, posting a growth of 1% and market share gain of 0.20%. In the Lubes and Greases segment the marketing sales recorded was 427 TMT with a growth of 6.4% and market share gain of 1.65%. In the Aviation Business line, the Corporation achieved sales of 567 TMT during the year. A record thruput of 43.2 Million Tonnes was handled by POL installations and the Corporation’s pipeline network achieved a thruput of 14.04 Million Tonnes during the year, exceeding the targeted thruput.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT: 2012-13
DEVELOPMENTS IN THE
ECONOMY AND THE OIL SECTOR
The slowdown in the Indian economy persisted in 2012-13. The GDP growth in 2012-13 was 5% compared to 6.2% in 2011- 12. Growth in agriculture was affected by less than normal rainfall in the early phase of the monsoon. The agriculture sector is estimated to grow at 1.9% in 2012-13 as against 3.6% in 2011-12. Industry registered a growth rate of only 2.1% in 2012-13.
Manufacturing growth is estimated to be even lower at 1.0%.The services sector has been the mainstay of growth in the last decade, contributing to about 65% of the growth. The growth rate in the services sector declined to 7.1%in 2012-13 from 8.2% in 2011-12. Monetary tightening to contain inflation, slowdown in investment, and a weak global economy has contributed to moderation in growth.
International oil prices averaged above USD 100 per barrel during 2012-13. Higher oil prices coupled with only a partial pass through to consumer prices resulted in higher than budgeted subsidy outgo. The deterioration in the fiscal balances pushed the government to take fiscal consolidation measures. One of the measures undertaken was to increase diesel price by Rs. 5 per liter in September 2012. In January 2013, OMCs were authorized to increase diesel prices in small increments at regular intervals till prices reach international parity. Also, bulk diesel sales directly to consumers are to be made at non-subsidized market determined price. Number of subsidized LPG cylinders has been capped at nine. Rising fuel prices did add to fuel inflation. However, wholesale price index moderated in the second half of the 2012-13 on account of declining non-food manufacturing inflation.
Global economy continues to grow at a sluggish pace. As per IMF, world output growth in 2012 was 3.2% with advanced economies growing at mere 1.2% while growth rate for emerging economies was 5.1%. This weakness was reflected in declining exports by India. Non-oil and non-gold imports also declined due to weak domestic demand. However, higher oil imports offset the decline in non-oil imports. The net invisibles balance (exports of services and remittances) failed to cover the trade deficit completely. India’s current account deficit was 4.8% of GDP in the third quarter of 2012-13. However, net capital flows were able to finance the current account and there was even a marginal accretion to foreign exchange reserves in the third quarter. The rupee per US dollar fluctuated significantly, depreciating from Rs. 51 per dollar at the end March 2012 to touch a low of Rs. 57 per dollar in June 2012, appreciating between July 2012 and September 2012 to reach Rs. 51.62 per dollar in October 2012 and depreciating again to fluctuate betweenr 53-55 per dollar during October 2012 to March 2013.
Consumption of petroleum products increased to about 155 million tons in 2012-13 from 148 million tons in 2011-12, an increase of about 5%. Diesel, the largest component of demand barrel, was the main driver of the growth with an increase of 7% over previous year. Diesel accounted for 60% of the incremental demand in 2012-13. Petcoke consumption increased by 49%, accounting for 40% of the incremental demand in 2012-13. Naphtha and Petrol consumption increased by 9% and 5% respectively. Bitumen and LPG consumption increased marginally at 0.7% and 1.6% respectively. Consumption of ATF, FO/ LSHS, LDO and SKO declined.
In the near term, recovery in advanced economies is likely to be slow and a number of uncertainties remain, though global economic prospects have improved. Thus, main impetus for growth in India has to be domestic demand. The Government of India has taken a number of steps to stem the slowdown such as setting up of Cabinet Committee on Investment (CCI) to fast track mega investment projects, a scheme for restructuring debts of the state discoms, and permitting FDI in a number of areas. Oil prices are expected to soften in near term as supply growth is expected to slightly exceed growth in demand. This would reduce pressure on India’s current account deficit and also reduce the subsidy/under-recovery burden on the government and
OMCs.
OPERATING ENVIRONMENT
IEA estimates global oil demand to have increased from 88.9 mbpd in 2011 to 89.8 mbpd in 2012. The growth was mainly from Asia Pacific with demand in Europe declining. Poor macroeconomic outlook, high oil prices and improvements in energy efficiency have limited demand.
Crude oil prices averaged above the key 100 $/bbl, required by Saudi Arabia to finance their public spending. However, this provided incentives for marginal cost producers to maximize their production of alternate crude supplies like Canadian Tar Sands.
Year 2012-13 also witnessed the highest ever production of tight oil (shale) in the US which reduced its dependency on West African crude. This contributed in pressurizing Brent and diverting oil flows to Asia.
On the supply side there were disruptions in oil production in South Sudan, Yemen, Syria, and the North Sea. The uncertain political situation in Libya and Syria, attacks on Oil facilities in Nigeria and the Iran sanctions increased the downside risk on supply. Iran being one of the major term contract suppliers, the sanctions on Iran and its after effects impacted the security of crude supply to HPCL. This was effectively managed by increased term upliftment from other suppliers and spot purchases.
As per IEA, gasoline, rather than middle distillates, led global demand growth last year. Middle distillate demand was affected by lower industrial activity worldwide whereas strong requirement by Saudi Arabia and China for gasoline supported demand. Keeping in mind the increased gasoline demand the strategy of maximization of naphtha conversion to gasoline was continued. World LPG and residual fuels demand in 2012-13 contracted while Jet/Kerosene demand remained at the same level as last year. Indian LPG demand grew at a slower pace due to changes in government policy, however domestic production continued to fall short of demand. Indian refineries were required to maximize LPG production to reduce import dependence and minimize shortfall. The residual fuel demand continued to fall year on year in India and refineries adapted by increasing Bitumen production.
Benchmark crudes Brent and Dubai, were trading at their highest level during the year in April’12. From the high of 119.52 $/bbl witnessed in April’12, Brent declined month on month to 94.84 $/bbl by June affecting refining margins and inventories. Crude oil prices fell during Q1 in part, due to concerns about falling oil demand with a sluggish global economy. The deepening euro zone crisis, slowdown in Chinese growth and rising global oil supplies due to increasing U.S. shale oil production added to the list of concerns. The volatility in prices has affected refinery margins in spite of inventory management across the value chain.
Product cracks mirrored crude with Naphtha differentials falling by 10.86 $/bbl during April to June on weak petrochemical demand and lower cracker runs. Gasoline was also not supported and fell by 7.34 $/bbl from April to June reflecting weak demand from Indonesia and Vietnam. Middle distillate cracks in Asia were relatively stable helped by strong demand from Australia, India and Sri Lanka. Fuel Oil cracks was the only bright spot at a strong (2.45) $/bbl level helped in part by refining maintenance in Europe and Russia limiting supplies.
The Reuters Singapore margin for a cracking refinery was pressured by the weakness in light distillates to settle at 6.67 $/ bbl. However, only a few Indian refineries were able to post this margin due to the month on month fall in crude and product prices devaluing both finished goods and Intermediate Stock Differential (ISD). This was compounded by reduced margins in processing higher priced crude of previous month for sale at lower prices in the next month. Planned turnarounds during the quarter also impacted margins.
Brent strengthened significantly in Q2 supported by shutdowns in Norwegian fields, shrinking European refining capacity and steep product draws. Considering the improved operating environment and ensuing monsoon season, HPCL increased its procurement / processing of low sulphur and light crudes. This enabled HPCL to reduce fuel oil exports on back of lower bitumen demand during this period.
Q2 saw firmer petrochemicals margins and tight feedstock supply pulling up naphtha cracks while alternative feedstock LPG surprised, falling below crude in July and August. European gasoline cracks were capped due to weak demand in the US. However, Singapore gasoline market was supported by healthy demand during Ramzan and tight supplies due to refinery turnarounds. Gasoil crack spreads strengthened in Q2 led by strong demand in Europe due to refinery closures, import demand from Australia and outages in Asia. Fuel oil however weakened marginally due to subdued demand for bunkers and from Chinese tea pot refineries.
Reuters Singapore refining margins strengthened to a high of 9.12 $/bbl in Q2 due in part to the strong middle distillate cracks. On the back of improved cracks and inventory gains HPCL also experienced stronger margins. HPCL refineries undertook various margin improvement initiatives like upgrading naphtha to gasoline with PyGas thereby reducing naphtha export. Increased focus on sale of surplus naphtha to end users by way of term contracts assisted in improving margins.
Crude prices stabilized at 110.02 $/bbl in Q3 as persistent concerns about the economy and the looming US fiscal cliff kept a cap on prices. The downside was limited by geopolitical concerns and reduced exports from Iran.
Naphtha cracks continued to improve in Q3 due to support from petrochemical demand. Gasoline however weakened on the back of improved supplies and end of driving season in US. Gasoil cracks in Asia were also supported by an unusually cold winter. This was offset by fuel Oil crack spreads plunging to its lowest level for the year on higher inventories, reduced demand and increased supply from Middle East.
Q3 Singapore refining margins reflected the frail heavy ends market and settled at 6.47 $/bbl. However, month on month fall in crude prices for the HPCL’s basket again impacted inventories and realizations. The fall in crude prices was overshadowed by weakening product cracks resulting in lower margins for refineries. Traditionally lube refiners have benefited from higher margins than standalone fuel refiners. However, the weak world economy resulted in poor demand for lubricants and lower LOBS margins, thereby impacting Mumbai refinery’s margins.
Q4 saw crude oil futures prices scaling nine month highs in early February at 116.28 $/bbl. Expectations of a better economic outlook for China and the US, robust financial market activity and seasonal winter demand were drivers for the strong crude prices. 2012-13 concluded with steeply lower prices on back of weak global demand outlook and high crude oil inventories.
Naphtha, Gasoline and Middle Distillate cracks posted their best run during the year in Q4 on the back of heavy refinery maintenance and strong demand. However, cracks fell across all regions in March with Kerosene (SKO) affected the most, as seasonal winter demand for heating faded in the Northern Hemisphere. Fuel oil cracks firmed up mainly due to reduced fuel oil imports from Middle East, lower inventory and rise in Chinese import demand.
Supported by strong light and middle distillates, Singapore refining margins settled at 8.7 $/bbl. The month on month volatility in prices with crude falling 8 $/bbl in March’13 continued to pose a challenge to refineries overshadowing operating performance. Weak lube base oil prices on account of declining demand in OECD countries and reduced growth in Asia capped HPCL Mumbai refinery’s margins. However, HPCL refineries posted improved margins compared to previous quarters on account of improved yield and 100 % service factor of all units. Efforts were made to minimize bottoms by optimizing crude selection and maximizing higher margin bottoms like bitumen.
Crude has been averaging above 110 $/bbl for the past three years, as compared to the 75 $/bbl levels seen in the earlier period. This has resulted in higher fuel costs for refineries solely on account of higher feed costs. Product crack spreads not keeping pace with crude has resulted in a scenario of reduced margins for refineries.
PHYSICAL PERFORMANCE
HPCL imported 12.02 MMT of crude oil in 2012-13 as compared to 12.54 MMT in 2011-12. Lower imports were mainly due to planned shutdown of crude distillation units in the year 2012-13. The Free on Board (FOB) cost of imported crude oil amounted to USD 9726 million (Rs. 531650.000 Millions) in 2012-13 as compared to USD 10409 million (Rs. 509410.000 Millions) in 2011-12.The average cost of crude oil imported in 2012-13 stood at USD 109.48 per barrel as compared to USD 112.85 per barrel in 2011-12.
The Brent Dubai spread in 2012-13 of 3 $/bbl favoured increase in sweet crude processing. HPCL refineries responded by increasing low sulphur crude processing to 34.5% for the year 2012-13 as against 31.7% in 2011-12, when Brent Dubai spread was 4.55 $/bbl. This has resulted in higher spot purchases of imported crude of 7% in 2012-13 vis a vis 3% in 2011-12.
HPCL uplifted 3.39 MMT of indigenous low sulphur crude oil (Mumbai High, Ravva and KGB). HPCL was allocated the entire production of Ravva Crude Oil of FY 12-13. The price of Ravva is linked to regional markers like Tapis and Minas crude which is disconnected from comparable markers on account of declining production. This has resulted in indigenous crude price being higher than imported crude and has impacted HPCL’s margin adversely. This has been taken up with the government for resolution.
The balance crude requirement of 12.02 MMT was mainly met through term imports and spot purchases. Total high sulphur crude oil procurement of 10.02 MMT was procured through term contracts from the Gulf region. Main suppliers included Saudi Arabia, United Arab Emirates, Iraq, Iran and Kuwait. Total low sulphur crude oil procurement amounted to 2.00 MMT, which was sourced through term and spot purchases. Low sulphur crude from Mediterranean – Saharan Blend was processed for the first time in the Visakh refinery.
HPCL expanded it crude basket by adding 4 new crudes to its basket of 104 crudes, taking the number of crude oils that can be processed in our refineries to 108. New term contracts with MNCs/NOCs were also entered into, in order to source additional low sulphur crude. Term contract with SOCAR (National Oil Company (NOC) of Algeria for Azeri Light Crude oil) and Petronas (NOC of Malaysia, for purchase of selected Nigerian grades at a discount to declared Official Selling Price) were entered during the year.
HPCL’s refineries maximized crude processing in 2012-13, achieving a combined refining throughput of 15.78 MMT with a capacity utilization of 107%.
Mumbai Refinery has achieved crude throughput of 7.75 MMT as against installed capacity of 6.50 MMT with a capacity utilization of 119%. This was the highest ever crude throughput recorded surpassing the previous best of 7.51 MMT during 2011-12. Visakh Refinery achieved crude throughput of 8.03 MMT as against installed capacity of 8.30 MMT with a capacity utilization of 96% due to planned shutdown of larger capacity CDU unit.
In respect of distillates Mumbai refinery achieved 73.5% vs. target of 73.0%, and Visakh refinery has attained 72.6 % vs. target of 73.0%. The specific energy consumption (MBN) was also at MOU Excellent level for both the refineries with 82.6 vs. target of 86.0 for Mumbai Refinery, while Visakh refinery recorded its lowest ever specific energy consumption (MBN figures) during the year 2012-13 with 84.0 MBTU/Bbl/NRGFvs. target of 86.0. The energy conservation measures have made possible to restrict fuel and loss for Mumbai and Visakh refineries to 7.5% and 7.6% which is better than the target of 8.0% and 8.1% respectively. This high level of energy efficiency was made possible by consistent efforts of both the refineries by controlling and optimizing the fuel consumption at micro level for each and every process/equipment consuming energy.
The energy conservation measures undertaken by both refineries during the year 2012-13 have resulted in a savings of 42,157 SRFT/year (standard refinery fuel tonnage per year). This translates to savings of Rs. 1650.000 Millions approximately
Mumbai and Visakh refineries also achieved highest ever annual production of LPG (817.6 TMT against previous best of 809.4 TMT), MS (2619 TMT against previous best of 2540 TMT) and bitumen (1042.5 TMT against the previous record of 946 TMT).
The Bureau of Indian Standards revised the bitumen quality norms from the hitherto ‘Penetration Grades’ to ‘Viscosity Grades’. Both Mumbai and Visakh refineries are producing this more stringent quality bitumen products viz. VG-10 and VG-30. The total bitumen production of HPCL refineries was 1043 TMT during the year surpassing the previous best of 946 TMT in the previous
year.
Lubes refinery achieved an annual production of 361.9 TMT of base oils comprising of 319.6 TMT of Gr I base oils and 42.3 TMT of Gr II base oils. Going forward higher conversion of value added lubes to Gr II will yield better margins to lubes refinery.
The State of the Art Integrated Effluent Treatment Plant (IETP) at Mumbai refinery has reduced intake of fresh water from the municipal corporation by purifying and recycling 610 TKL treated water for refinery consumption thus contributing significantly to Natural Resource conservation. Also, in Visakh Refinery 714 TKL of water was purified through desalination RO Plant.
AWARDS RECEIVED
•• HPCL has received the PETROFED Project Management – Company of the year award for Guru Gobind Singh Refinery Products Evacuation Project (GGSRPEP) from the Hon’ble Minister of Petroleum on June 8, 2012 at New Delhi.
•• HPCL was declared the winner among the Public Sector Category at the 8th Edition of BML Munjal Awards 2013 towards Excellence in Learning and Development during the Mindmine summit held at New Delhi on 4th April 2013. The prestigious award was handed over by Hon’ble Minister of State for Human Resource Development at the annual flagship event organized by the Hero Group.
•• HP Gas was recognized as the most respected brand and awarded the Super brand trophy 2012-14 by Superbrands UK in December 2012.
•• HPCL was conferred with the prestigious SCOPE Meritorious Award for Corporate Social Responsibility and Responsiveness Commendation Certificate for the year 2010-11 by Standing Conference of Public Enterprises (SCOPE).
HPCL has been awarded the Greentech Gold Award for Outstanding Achievement in ‘Best HR Strategy’ by Greentech Foundation at 3rd Annual Greentech HR and Corporate Governance Conference 2013 held on 19th April 2013 at Goa
•• HPCL received the Indira Gandhi Rajbhasha Puraskar for the fifth consecutive year for best official language implementation among Public Sector Enterprises in India for outstanding achievements of the Corporation in the realm of Official Language Implementation in ‘B region’.
•• HPCL has been honored by Associated Chambers of Commerce and Industry of India (ASSOCHAM) with the “CSR Excellence Award” 2012-13 for the immense contribution and relentless efforts towards Socially and Environmentally Sustainable growth from His Excellency Dr A.P.J. Abdul Kalam, Former President of India.
•• HPCL was conferred with the Golden Peacock National Training Award for the Year 2012 for its contribution towards training initiatives for its employees.
•• HPCL was honoured with the “Golden Peacock Innovative Product/ Service Award 2012” for the innovative development of Supervisory Control and Data Acquisition System (SCADA) for LPG Bottling Plant Operations under Oil and Gas category.
•• HPCL has been conferred with INDIASTAR 2012 Award, as recognition of excellence in Packaging for ‘TamperGard Security Labels on 210 Litres Lube Oil Metal Barrels’ from the President – World Packaging Organization at the International Summit for Packaging Industry held in Mumbai.
•• HPCL has been honoured with the PSE Excellence Awards for its contribution towards Corporate Social Responsibility, by Indian Chamber of Commerce [ICC] and Dept. of Public Enterprises [Govt. of India] during the Summit on “Indian Public Sector Agenda @ 2020” at New Delhi under Maharatna and Navratna category.
•• HPCL has been conferred with Loyalty Award at the 6th Loyalty Summit under the category “Best use of Technology in a Loyalty Program” at Mumbai.
•• HPCL has been conferred with three awards at the Corporate Social Responsibility Awards 2012 conferred jointly by the Institute of Public Enterprise (IPE) and Subir Raha Centre for Corporate Governance, viz., 1) Best Overall Corporate Social Responsibility Performance 2) Support and Improvement in Quality of Education and 3) Community Development.
•• HPCL has been honored with the prestigious Civic Award for “Sustainable Environmental Initiative” by Bombay Chamber of Commerce and Industries in June 2012 for the best corporate practices that promote and enhance the interests of the Society and Environment.
•• HPCL has been conferred Safety Awards in the following categories by Oil Industry Safety Directorate [OISD] under the aegis of Ministry of Petroleum and Natural Gas, viz 1) “Best Performer” under POL Marketing Organizations category the year 2009-10 2) “Best Performer” under Most Consistent Performer category for the year 2009-10 3) “Best Performer” for Mundra Delhi Pipeline Division under Cross Country Pipeline (Product Pipeline) category for three years 2008-09, 2009-10 and 2010-11 and 4) “Best Performer” for LPG SBU for the year 2009-10 for the Most Consistent Safety Performer in Oil Marketing Company (LPG and POL combined).
•• HPCL was conferred with the Global CSR Excellence and Leadership Award2013 by World CSR Congress on World CSR Day. HPCL won awards in the three categories of 1) Best Corporate Social Responsibility Practices 2) Support and Improvement in Quality of Education and 3) Most Caring Company of India.
•• HPCL’s Mangalore LPG Import Facility (MLIF) has been conferred with the prestigious Golden Peacock Award 2012 for Occupational Health and Safety.
•• Mangalore LPG Import Facility (MLIF) has been honoured with the First Prize in Safety at the State level by the Department of Factories, Boilers, Industrial Safety and Health, Govt. of Karnataka, for the year 2012.
•• HPCL was honored by CRY with the prestigious ‘CRY Child Rights Champion 2012-13’ Gold Award for demonstrating extraordinary commitment to the Rights of Children in India.
•• HPCL’s Mysore LPG Plant has been conferred the Prashansa Patra by National Safety Council of India in recognition of developing and implementing effective Management Systems and Procedures.
•• HPCL has won the Best Overall Display Runners Up Trophy for the Exhibition Stall at the Petrotech 2012 Exhibition at New Delhi. HPCL has bagged the Internal Communication Excellence Award, (ICE Award), instituted by Shailaja Nair Foundation, Mumbai.
•• HPCL has been honored with 2 Awards by Asia Pacific HRM Congress in 1) HR Practices in CSR and 2) Outstanding Contribution to the Cause of Education.
•• Visakh refinery was conferred with TOLIC award.
•• HP MDI received the Best Maintained Garden from Pimpri - Chinchvad Municipal Corporation in April12.
•• HPNE Housing Complex and Vashi Terminal have received Best Maintained Gardens from Municipal Corporation of Greater Mumbai.
JOINT VENTURES and
SUBSIDIARIES
The Joint Venture companies and subsidiaries of HPCL have performed well during the year 2012-13.
•• HPCL-MITTAL ENERGY
LIMITED (HMEL)
HPCL-Mittal Energy Limited (HMEL) is a joint venture between Hindustan Petroleum Corporation Limited and Mittal Energy Investments Pte Limited (MEI), Singapore, an L N Mittal Group Company. The Company was incorporated on 13th December 2000 and name changed to HMEL on 31st December 2007. The initial authorized share capital was Rs. 2000.000 Millions and subsequently enhanced to Rs. 100000.000 Millions. HPCL has 48.82% equity participation in HMEL. As of 31st March 2013, paid up capital of HMEL is Rs. 65927.000 Millions. HMEL has built a Greenfield refinery of 9 MMTPA capacity called the Guru Gobind Singh Refinery (GGSR) at Bathinda in the State of Punjab. The refinery was dedicated to the nation by the Hon’ble Prime Minister of India on 28th April 2012.
GGSR has stabilized its integrated commercial operations during the year and the finished liquid products are being evacuated by HPCL to meet the demand of Northern and North-Western part of the Country. The Refinery, with a high Nelson Complexity Index, provides flexibility to process heavy and acidic crudes and produce petroleum products compliant with Euro IV emission norms and other value added product such as Polypropylene (under the brand name ‘Polysure’).
The Refinery consists of various units, associated utilities and a fuel based Captive Power Plant of 165 MW. Apart from various state of the art infrastructure facilities, HMEL has set up a self-sustained township for the employees within the vicinity of Refinery.
During 2012-13, HMEL achieved crude thruput of 4.91 MMT with a turnover of Rs. 77890.000 Millions. The Company is in the process of stabilization and consolidation of its operations during 2013-14 by buying high sulfur heavy grades of crude oil, reducing costs, increase in volumes and enhanced monitoring and controlling mechanism with better mix of products and its marketing.
HMEL has a wholly owned subsidiary company HPCL-Mittal Pipelines Limited, engaged in receipt, storage and cross country transportation of crude oil to GGSR. HMPL has built a 1,017 km cross-country pipeline and associated facilities for transportation of crude from Mundra to Bathinda, crude receiving facilities [including Single Point Mooring (SPM)], sub-sea pipelines and Crude Oil Terminal (COT) at Mundra and receipt terminal at Bathinda.
•• SOUTH ASIA LPG CO
PRIVATE LIMITED (SALPG)
South Asia LPG Co Private Limited (SALPG), a Joint Venture Company with Total Gas and Power India (a wholly owned subsidiary of Total, France) was incorporated on 16th November 1999 with an authorized share capital of Rs. 10.000 Millions which was subsequently enhanced to Rs. 1000.000 Millions. HPCL has 50% equity participation in SALPG. As of 31st March 2013, paid up capital of SALPG is Rs. 1000.000 Millions.
SALPG has commissioned an underground Cavern Storage of 60 TMT capacity and associated receiving and dispatch facilities at Visakhapatnam in December 2007. SALPG Cavern is the first of its kind in South and South East Asia and ranks among the deepest Caverns in the World. The commercial operations commenced in January 2008.
During 2012-13, SALPG received 977 TMT of LPG into the Cavern through 49 Vessels including 46 Very Large Gas Carriers (VLGC). This has resulted into easing-out the product movement constraints across the east coast and ensured smooth availability of LPG in the supply and surrounding zones. Also, propane-butane blender at the Cavern Terminal has helped Oil Marketing Companies to maximise the propane inputs into Visakhapatnam considering the limited availability of butane and price advantage of propane in the international market.
During 2012-13, SALPG achieved 6.55% higher turnover at Rs. 1551.600 Millions and earned 2.36% higher profits (PAT) at Rs. 755.100 Millions compared to the previous year turnover of Rs. 1460.000 Millions and PAT of Rs. 740.000 Millions.
The Cavern cum Marine Terminal achieved 1,462,895 Safe Man-hours since commencement of commercial operations in January 2008 without a Lost Time Accident. SALPG won British Safety Council International Safety Award 2012 with distinction and secured second place in medium scale category in the EHS awards from Confederation of Indian Industry (CII) during 2012-13.
•• PRIZE PETROLEUM
COMPANY LIMITED (PPCL)
HPCL, in partnership with ICICI and HDFC, had formed a Joint Venture E and P Company called Prize Petroleum Company Limited (PPCL) on 28th October 1998 for participation in exploration and production of hydrocarbons. The initial authorised share capital of PPCL was Rs. 200.000 Millions which was subsequently enhanced to Rs. 7200.000 Millions. As on 31st March 2013 the paid up equity capital of the company is Rs. 725.000 Millions. Over the years, Prize Petroleum Company Limited (PPCL) has built up a portfolio of 2 producing fields and one exploration block. During 2011-12, HPCL acquired the entire equity shareholdings of ICICI Group and HDFC in PPCL and thus PPCL became wholly owned subsidiary of HPCL.
PPCL had signed Service Contract with ONGC for development of Hirapur Marginal Field in Cambay Basin with 50% holding in the consortium. PPCL is operator for the field. During 2012-13, 33,384 barrels of crude oil (cumulative production of 316,534 barrels since inception) has been produced. PPCL had also entered into a Production Sharing Contract (PSC) with 50% Participating Interest in Sanganpur Block as Joint Operator. During 2012-13, 887 barrels of crude oil (cumulative production of 13,135 barrels from inception) has been produced. The crude produced is benchmarked to Bonny light crude. During 2012-13, PPCL had a turnover of Rs. 76.600 Crore.
The company was awarded South Rewa Block in Madhya Pradesh under NELP-VI, a biggest onshore exploration Block with 13,277 sq. km area. PPCL is the Operator for this block and has completed all the activities under Minimum Work Program. One of the major highlights of the year was drilling of first well at South Rewa (AA ONN 2004/1) on February 28, 2013 pursuant to interpretation of seismic 2D and 3D data and release of well locations. PPCL is the operator in this block and drilling activities are in progress.
PPCL has bagged onshore exploration block (401 sq. kms area) in Tripura along with consortium partner ABG Energy Limited (ABG) in NELP IX. PPCL is the operator for this block with a participating interest of 20% and will be “carried” during the initial exploration phase. In the event of commercial discovery and consortium entering the Development phase, PPCL will pay only 10% for the past cost (which will be recovered by ABG from ‘profit petroleum’) and will continue to hold 20% participating interest.
PPCL is actively pursuing acquisition of producing/discovered assets to enhance its portfolio.
•• HINDUSTAN COLAS
LIMITED (HINCOL)
Hindustan Colas Limited (HINCOL) is a joint venture company promoted by HPCL and Colas S.A. of France and was incorporated on July 17, 1995 with an authorised share capital of Rs. 100.000 Millions which was subsequently enhanced to Rs. 300.000 Millions. HPCL has 50% equity participation in HINCOL. As on 31st March 2013, paid up capital of HINCOL is Rs. 94.500 Millions.
HINCOL has grown steadily over the years to establish itself as the clear market leader in manufacturing and marketing of Bitumen Emulsions, Modified Bitumen and other value added bituminous products. HINCOL presently has eight manufacturing plants across India. HINCOL products find extensive use in the road construction industry.
During 2012-13, HINCOL has commissioned its first portable plant for site manufacturing of modified bitumen at the customer premises. HINCOL has implemented new processes and formulations to improve safety, efficiency, quality, energy saving and profitability. The environment friendly cold mix technology for construction and repairs of roads is also being promoted through carrying out various trials in coordination with regulatory agencies as well as Government and other customers. HINCOL is also getting into a new application technology for road surface rejuvenation viz. Micro-surfacing with state of art equipment imported specifically for the said application. During 2012-13, HINCOL recorded a production of 177.44 TMT. The turnover was increased by 46% to of Rs. 6191.800 Millions compared to Rs. 4224.300 Millions in the previous year and increased net profit (PAT) by 30% to Rs. 344.200 Millions, during the year compared to Rs. 264.400 Millions in the previous year.
HINCOL has been continuously paying dividend for last 13 years. For 2012-13, HINCOL paid an interim dividend of 157% and has further declared a final dividend of 124%, making the total dividend to 281% which is highest ever dividend declared by HINCOL.
•• HPCL BIOFUELS
LIMITED (HBL)
In line with Government’s policy for blending of ethanol in petrol, a new wholly owned subsidiary company HPCL Biofuels Limited (HBL) was incorporated on 16th October 2009 to produce ethanol with an authorized share capital of Rs. 2500.000 Millions. As on 31st March 2013 paid up equity capital of HBL is Rs. 2055.200 Millions.
HBL has built integrated plants with cane crushing capacity of 3,500 TCD with Distillery of 60 KLPD for manufacturing Ethanol and co-gen plant of 20 MW each at Sugauli and Lauriya in East and West Champaran Districts in the State of Bihar.
The year 2012-13 has seen full season operations at HBL with production of 24.345 TMT of Sugar, 6.947 TKL of Ethanol and 50.173 Million KWH of power compared to 15.514 TMT of Sugar, 4.558 TKL of Ethanol and 25.497 Million KWH of power during 2011-12.
During the year, crushing of Sugarcane started at Sugauli on 17th December 2012 and Lauriya on 6th December 2012. Sugauli plant was declared highest producer of Certified Cane Seed (640 acres) by the Joint Director (Sugarcane), the State of Bihar.
During the year 2012-13, operations at HBL were significantly higher than previous crushing season with accident free operations. Being in the early years of the operations and going thru the process of stabilisation, the company achieved a turnover of Rs. 920.500 Millions. HBL plants were operated with the designed capacity of 50% juice for sugar manufacture and 50% juice directly for ethanol manufacture. To improve the performance of the plants substantially, ethanol is proposed to be manufactured from molasses instead of directly from sugar cane juice. HBL has embarked on expansion of the sugar boiling house capacity in both plants to process 100% juice for production of sugar. Resultant molasses will be used for production of ethanol.
Consequent to deregulation of marketing of sugar and ethanol pricing, HBL has a positive outlook for the years ahead.
•• CREDA-HPCL BIOFUEL
LIMITED (CHBL)
CREDA-HPCL Biofuel Limited (CHBL) was incorporated on 14th October 2008 as a subsidiary company of HPCL with an authorized share capital of Rs. 2000.000 Millions. As on 31st March 2013, paid up equity capital of CHBL is Rs. 105.800 Millions with equity shareholding of 74% by HPCL and 26% by Chhattisgarh State Renewable Energy Development Agency (CREDA). The company’s objective is to venture into alternate fuels.
CHBL is in the process of undertaking cultivation of jatropha plant, an energy crop used for production of bio-diesel. The cultivation is scheduled to be on total 15,000 hectares of leased land from the Government of Chhattisgarh. Production of bio-diesel and its blending with normal diesel will help in meeting domestic demand. HPCL shall have exclusive rights over the producing and marketing of biodiesel and bi-products from the produce.
As on 31st March 2013, CHBL has acquired 6,728 hectares of land. Acquisition of balance land is expected to be completed by next year. Maintenance of jatropha seedlings/nursery plants is currently being carried out on 3,100 hectares of land out of which 1300 hectares are under the JCC (Jatropha Care Centre) Model. JCC has been introduced with an objective to achieve huge savings in water and costs in the first year. Plantation on the balance land shall be undertaken in a phased manner.
During 2012-13, the turnover (interest on deposits) was Rs. 4.700 Millions compared to Rs. 2.500 Millions in the previous year. The company has started the process of planting High Yielding Varieties (HYV) of Jatropha. These HYV hybrids give higher yield and oil content are pest resistant and sturdier. Operational Trials conducted with these HYVs are showing promising results.
•• PETRONET MHB LIMITED
(PMHBL)
HPCL, along with Petronet India Limited (PIL) promoted Petronet MHB Limited (PMHBL) for construction of Mangalore- Hassan- Bangalore Pipeline at a cost of Rs. 6670.000 Millions with debt equity ratio of 3:1. The joint venture company was incorporated on 31st July 1998 with an initial authorised share capital of Rs. 10.000 Millions which was subsequently enhanced to Rs. 6000.000 Millions. HPCL has 28.77% equity participation in PMHBL. As on 31st March 2013, paid up capital of PMHBL is Rs. 5487.100 Millions.
During 2012-13, PMHBL achieved 1.4% higher throughput at 2.81 MMT as compared to 2.77 MMT in 2011-12. The turnover was increased to Rs. 1031.700 Millions compared to Rs. 860.200 Millions in the previous year and earned net profit (PAT) of Rs. 273.100 Millions during the year compared to Rs. 365.000 Millions in the previous year.
Initially PIL and HPCL contributed 26% each towards equity of the company. In April 2003, ONGC joined as a strategic partner in PMHBL by taking 23% equity. Post debt restructuring of PMHBL, the equity holding of HPCL and ONGC increased to 28.766% each and PIL’s holding decreased to 7.90%.The Pipeline is meeting the transportation needs between Mangalore- Hassan-Bangalore.
PMHBL Integrated Management System is certified by DNV covering Quality Management System-ISO-9001-2008, Environmental Management System-ISO-14001-2004 and OHSAS–18001-2007. GPRS based Security Tracking System (STS) was commissioned for monitoring movement of security line walker’s movement on PMHBL Right of Use (ROU) land. Telecom System up-gradation and CCTV camera installation were carried out at PMHBL Main Stations.
•• BHAGYANAGAR GAS
LIMITED (BGL)
Bhagyanagar Gas Limited (BGL) was incorporated on 22nd August 2003 as a Joint Venture Company by GAIL (India) Limited and HPCL for distribution and marketing of environmental friendly fuels (green fuels) viz. CNG and Auto LPG for use in the transportation, domestic, commercial and industrial sectors, in the state of Andhra Pradesh.
BGL has been authorized to set up City Gas Distribution networks in Hyderabad, Vijayawada and Kakinada by MOP&NG and PNGRB.
The initial authorised share capital of BGL was Rs. 1.000 Millions, which was subsequently enhanced to Rs. 1000.000 Millions. As on 31st March 2013, HPCL has 25% equity participation in the JV company with an equity investment of Rs. 0.100 Millions in BGL.
During 2012-13, BGL commissioned 5 CNG Stations in the twin cities of Hyderabad and Secunderabad. At present, BGL has a network of 29 CNG stations spread over three cities in Hyderabad, Vijayawada and Kakinada. BGL has provided 1784 Domestic, 14 Commercial and 1 Industrial PNG connections across these cities. CNG sales recorded by BGL was at 24,617 MT registering a growth of 61% over previous year.
During 2012-13, BGL increased the turnover by 99% to Rs. 836.500 Millions compared to Rs. 420.200 Millions in the previous year and earned net profit (PAT) of Rs. 29.800 Millions during the year compared to loss of Rs. 8.800 Millions in the previous year.
•• AAVANTIKA GAS
LIMITED (AGL)
Aavantika Gas Limited (AGL) was incorporated on 7th June 2006 as a Joint Venture Company by GAIL and HPCL for distribution and marketing of environmental friendly fuels (green fuels) viz. CNG and Auto LPG for use in the transportation, domestic, commercial and industrial sectors in the State of Madhya Pradesh. The authorised share capital of AGL is Rs. 1000.000 Millions. As on 31st March 2013, HPCL has 25% equity participation with an investment of Rs. 0.100 Million in AGL.
AGL has been authorized by MOP&NG as well as PNGRB for carrying City Gas Distribution (CGD) operations at Indore, Ujjain and Gwalior. The company commenced commercial operations in the year 2008.
During 2012-13, the company commissioned Mother Station at Gwalior and two online stations at Indore. With this AGL now operates 14 CNG stations - 7 daughter stations (5 at Indore and 2 at Ujjain), 5 online stations (4 at Indore and 1 at Gwalior) and 2 mother stations (1 at Indore and 1 at Gwalior). AGL has started supplying PNG at Palda Industrial area, Indore to cater to the needs of big industrial customers. AGL has started supplying PNG at Palda Industrial area, Indore to cater to the needs of big industrial customers. AGL recorded sales volume of CNG/PNG at 21,441 MT registering a growth of 62% over previous year.
During 2012-13, AGL increased the turnover by 93% to Rs. 976.400 Millions compared to Rs. 504.700 Millions in the previous year and earned net profit (PAT) of Rs. 2.100 Millions during the year compared to loss of Rs. 1.900 Millions in the previous year.
•• GSPL INDIA GASNET
LIMITED (GIGL) AND GSPL INDIA TRANSCO LIMITED (GITL)
GSPL India Gasnet Limited (GIGL) and GSPL India Transco Limited (GITL) was incorporated on 13th October 2011 as a subsidiary of Gujarat State Petronet Limited (GSPL) with an authorised share capital of Rs. 2200.000 Millions.
HPCL has signed two Joint Venture Agreements on 30th April 2012 with Gujarat State Petronet Limited (GSPL), IOCL and BPCL (Equity holding: GSPL- 52%; IOCL- 26%; HPCL – 11% and BPCL – 11%) and has become an equity partner in GIGL and GITL. As on 31st March, 2013, paid up capital of GIGL and GITL was Rs. 677.900 Millions and Rs. 485.900 Millions respectively.
GIGL will lay two cross country gas pipelines viz 1,611 KM Mehsana to Bathinda Pipeline (with initial capacity of 43 MMSCMD to final capacity of 77 MMSCMD) and 750 KM Bathinda to Srinagar Pipeline (with initial capacity of 32 MMSCMD to final capacity of 43 MMSCMD).
GITL will lay 1,712 KM pipeline Mallavaram to Bhilwara (with initial capacity of 53 MMSCMD to final capacity of 77 MMSCMD).
The above JV Companies will facilitate HPCL to source gas and market it to customers along the pipeline route independently. It will also help HPCL to enter into direct gas sourcing and marketing to protect and retain the marketing share in future.
MANGALORE REFINERY
AND PETROCHEMICALS LIMITED (MRPL)
HPCL holds an equity of 16.95% in the 9 MMTPA Mangalore Refinery and petrochemicals Limited (MRPL). HPCL and MRPL have been exchanging intermediate process streams between their refineries to supplement efforts to meet new environmental norms in respect of products like MS and HSD on mutually agreed terms. MRPL has not declared any dividend during 2012-13
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
(I)Contingent Liability not provided for, in respect of: - |
|
|
|
i. Income Tax |
|
|
|
i. Sales Tax/Octroi |
73.300 |
144.800 |
|
ii. Excise/Customs |
259.600 |
340.100 |
|
iii. Employee Benefits/Demands (to the extent quantifiable) |
1834.400 |
1671.600 |
|
iv. Claims against the Corporation not acknowledged as Debts |
3168.900 |
2434.600 |
|
v. Others |
2677.800 |
2672.500 |
|
|
8014.000 |
7263.600 |
|
|
|
|
|
(II)Uncalled liability on
partly paid up preference shares |
475.000 |
-- |
|
|
475.000 |
-- |
|
|
|
|
|
(III) Guarantees given |
549.100 |
5.051 |
|
|
549.100 |
5.051 |
STANDALONE AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH,
2014
PART I
(Rs.
in millions)
|
Particulars |
(Unaudited) |
(Audited) |
|
|
Quarter Ended |
Year Ended |
||
|
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
|
PART 1 A FINANCIAL
PERFORMANCE 1 Income from Operations Sales/Income from Operations Less: Excise Duty Paid |
667389.800 26121.700 |
577530.800 23585.700 |
2321883.500 91516.800 |
|
(a) Net Sales/Income from Operations |
641268.100 |
553945.100 |
2230366.700 |
|
(b) Other Operating Income |
654.900 |
604.800 |
2346.600 |
|
Total Income from operations (net) |
641923.000 |
554549.900 |
2232713.300 |
|
2 Expenditure |
|
|
|
|
(a) Cost of materials consumed |
159004.700 |
173277.400 |
619624.900 |
|
(b) Purchases of stock-in-trade |
384079.900 |
360990.800 |
1451379.500 |
|
(c) Changes In inventories of finished goods, work-in-progress and
stock-in-trade |
9618.100 |
7336.800 |
(5744.300) |
|
(d) Employee benefits expense |
4660.200 |
5569.600 |
20303.000 |
|
(e) Depreciation and amortisation expense |
5793.200 |
5565.500 |
21884.400 |
|
(f) Other Expenditure |
25175.300 |
17375.900 |
95491.600 |
|
Total Expenses |
588331.400 |
570116.000 |
2202939.100 |
|
3 Profit/loss) from Operations before Other Income, Finance Costa
Exceptional Items (1-2) |
53591.600 |
(15566.100) |
29774.200 |
|
4 Other Income |
3302.900 |
1965.200 |
9744.500 |
|
5 Profit/(Loss) from ordinary activities before Finance Cost & Exceptional
Items (3+4) |
56894.500 |
(13600.900) |
39518.700 |
|
6 Finance Cost |
1984.800 |
3738.200 |
13363.600 |
|
7 Profit/(Loss) from ordinary activities after Finance Cost but before
Exceptional Items (5-6) |
54909.800 |
(17339.100) |
26155.100 |
|
8 Exceptional Items - Expenses/ (Income) |
-- |
-- |
-- |
|
9 Profit/(Loss) from Ordinary Activities before tax |
54909.800 |
(17339.100) |
26155.100 |
|
10 Tax Expense |
8817.400 |
-- |
8817.400 |
|
11 Net Profit/Loss) from Ordinary Activities after tax (9-10) |
46092.400 |
(17339.100) |
17337.700 |
|
12 Extraordinary Items (net of tax expenses) |
-- |
-- |
-- |
|
13 Net Profit/(Loss) for the period (11-12) |
46092.400 |
(17339.100) |
17337.700 |
|
14 Minority Interest |
-- |
-- |
-- |
|
15 Net Profit/(Loss) for the group (13-14) |
-- |
-- |
17337.700 |
|
16 Paid up Equity Share Capital (Face value Rs.10/- each) |
3386.300 |
3386.300 |
3386.300 |
|
17 Reserves excluding Revaluation Reserves as per Balance Sheet |
-- |
-- |
146731.500 |
|
18 Earnings Per Share: |
|
|
|
|
(1) Basic and Diluted before extraordinary Item (Rs.) |
136.11 |
(51.20) |
51.20 |
|
(II) Basic and Diluted after extraordinary item (Rs.) |
136.11 |
(51.20) |
51.20 |
|
19 Debt Service Coverage Ratio (DSCR) (No. of times) * |
|
|
2.08 |
|
20 Interest Service Coverage Ratio (ISCR) (No. of times) ** |
|
|
4.59 |
|
B PHYSICAL PERFORMANCE
(in MMT ) |
|
|
|
|
Crude Thruput |
4.34 |
3.84 |
15.51 |
|
Market Sales (Including Exports) |
8.04 |
7.81 |
30.96 |
|
Pipeline Thruput |
3.98 |
3.97 |
15.69 |
* Debt Service Coverage Ratio (DSCR) = Profits after Tax but before Depreciation and Interest / (Interest + Principal Repayment of Long Term Loans).
** Interest Service Coverage Ratio (ISCR) = Profits before Depreciation, Interest and Tax / Interest.
PART II
SELECTED INFORMATION FOR THE QUARTER AND YEAR ENDED 31ST MARCH, 2014
|
Particulars |
(Unaudited) |
(Audited) |
|
|
Quarter Ended |
Year Ended |
||
|
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
|
a particulars of shareholding |
|
|
|
|
1 Public Shareholding |
|
|
|
|
Number of Shares |
165,550,500 |
165,550,500 |
165,550,500 |
|
Percentage of Shareholding [%) |
48.89 |
48.89 |
48.89 |
|
1 Promoters and Promoter Group
Shareholding |
|
|
|
|
(a) Pledged/Encumbered |
|
|
|
|
- Number of Shares |
NIL |
NIL |
NIL |
|
- Percentage of Shares |
NIL |
NIL |
NIL |
|
(b) Non - encumbered |
|
|
|
|
- Number of Shares |
173,076,750 |
173,076,750 |
173,076,750 |
|
- Percentage of Shares (as a % of total
shareholding of |
|
|
|
|
Promoter and Promoter Group) |
100 |
100 |
100 |
|
- Percentage of Shares (as a % of total
share capital of |
|
|
|
|
the Company) |
51,11 |
51.11 |
51,11 |
|
B INVESTOR
COMPLAINTS : (Nos.) |
31.03.2014 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
1 |
|
Disposed off during the quarter |
1 |
|
Remaining unresolved at the end of the quarter |
Nil |
Notes:
1. The
Board has recommended a final dividend of Rs. 15.50 per share.
2. The
Audited Accounts are subject to review by the Comptroller & Auditor General
of India under section 619(4) of the Companies Act 1956.
3. Average
Gross Refining Margins during the year ended March 14, were US $ 3.43 per BBL
as against US $ 2.08 per BBL during the corresponding previous year.
4. The
prices of PDS Kerosene and Domestic LPG are subsidized as per the scheme
approved by the Government of India. During the current year ended March 2014,
Subsidy amounting to Rs. 6351.400 Millions (April - March 2013 : Rs. 6664.100
Millions) has been accounted at 1/3rd of the subsidy rates for 2002-03 as
approved by the Government.
5. Based
on the approval received from Government of India, the Company has accounted
for Budgetary Support
amounting
to Rs. 15,215.45 Millions for the period April - March 2014 (April - March 2013
: Rs. 24,8252.800 Millions) against under-recoveries on sale of sensitive
petroleum products for the period April - March 2014.
6. During
the year ended March 2014, discount from upstream oil companies, viz., ONGC and
GAIL, amounting to Rs. 16,770.77 Millions (April - March 2013 : Rs. 111885.300
Millions) in respect of Crude Oil, PDS Kerosene, and Domestic LPG purchased
from them has been accounted.
7. During
the current year, investments in “6.90% Oil Marketing Companies' GOI Special Bonds
2026” amounting to Rs. 35000.000 Millions have been reclassified from ‘Long
Term Investments’ to ‘Current Investments’ to improve flexibility in liquidity.
Consequently, an amount of Rs. 5831.800 Millions has been provided in the books
of accounts towards diminution in the value for this investment.
8. The
Employee cost for the previous year 2012-13 included Rs. 813 Millions towards
implementation of Long Term Settlement of Non-management employees and
Superannuation Benefits for all the employees finalized during the previous
year 2012 - 13, including for the past periods.
9. The
figures for the quarter ended 31st March 2014 are the balancing figures between
the audited financial results for the year ended 31st March 2014 and the
published unaudited financial results for the nine months ended 31st December
2013.
10. Statement of Assets and Liabilities as
per clause 41 (V)(h) of the Listing Agreement :
|
|
Particular |
31.03.2014 |
|
A |
EQUITY AND
LIABILITIES |
|
|
1 |
Shareholders’
funds |
|
|
|
(a) Share capital |
3390.100 |
|
|
(b) Reserves and surplus |
146731.500 |
|
|
Sub-total
- Shareholders' funds |
150121.600 |
|
|
|
|
|
2 |
Non-current
liabilities |
|
|
|
(a) Long-term borrowings |
155548.800 |
|
|
(b) Deferred Tax Liabilities (Net) |
39084.300 |
|
|
(c) Other long-term liabilities |
72077.000 |
|
|
(e) Long-term provision |
5876.600 |
|
|
Sub-total
- Non-current liabilities |
272586.700 |
|
|
|
|
|
3 |
Current liabilities |
|
|
|
(a) Short-term borrowings |
163751.700 |
|
|
(b) Trade payables |
106513.900 |
|
|
(c) Other current liabilities |
65387.200 |
|
|
(d) Short-term provision |
17419.800 |
|
|
Sub-total - Current
liabilities |
353072.600 |
|
|
TOTAL - EQUITY AND
LIABILITIES |
775780.900 |
|
|
|
|
|
B |
ASSETS |
|
|
1 |
Non-current
assets |
|
|
|
(a) Fixed assets |
304978.000 |
|
|
(b) Goodwill on Consolidation |
-- |
|
|
(c) Non-current investments |
57358.300 |
|
|
(d) Long-term loans and advances |
14614.200 |
|
|
(e) Other non-current assets |
1462.600 |
|
|
Sub-total
- Non-current assets |
378413.100 |
|
2 |
Current assets |
|
|
|
(a) Current Investments |
51240.400 |
|
|
(b) Inventories |
187754.100 |
|
|
(c) Trade receivables |
54659.500 |
|
|
(d) Cash and cash equivalents |
347.100 |
|
|
(e) Short-term loans and advances |
100079.000 |
|
|
(f) Other current assets |
3287.700 |
|
|
Sub-total
- Current assets |
397367.800 |
|
|
TOTAL
- ASSETS |
775780.900 |
11. Previous period's figures have been regrouped/reclassified wherever necessary.
SEGMENT-WISE RESULTS
(Rs. In millions)
|
Particulars |
(Unaudited) |
(Audited) |
||
|
Quarter Ended |
Year Ended |
|||
|
31.03.2014 |
31.12.2013 |
31.03.2014 |
||
|
1 SEGMENT
REVENUE |
|
|
|
|
|
a) Downstream Petroleum |
642572.800 |
554999.700 |
2234810.800 |
|
|
b) Exploration and Production of Hydrocarbons |
-- |
-- |
-- |
|
|
Sub-Total |
642572.800 |
554999.700 |
2234810.800 |
|
|
Less: Inter-Segment Revenue |
-- |
-- |
-- |
|
|
TOTAL REVENUE |
642572.800 |
554999.700 |
2234810.800 |
|
|
2 SEGMENT
RESULTS |
|
|
|
|
|
a) Profit/(Loss) before Tax, Interest Income, Interest Expenditure and
Dividend from each Segment |
|
|
|
|
|
i) Downstream Petroleum |
60748.800 |
(14876.100) |
41279.600 |
|
|
li) Exploration and Production of Hydrocarbons |
(787.700) |
(336.500) |
(2039.700) |
|
|
Sub-Total of (a) |
59961.100 |
(15212.600) |
39239.900 |
|
|
b) Finance Cost |
1984.800 |
3738.200 |
13363.600 |
|
|
c) Other Un-allocable Expenditure (Net of Un-allocable Income) |
3066.500 |
(1611.700) |
(278.800) |
|
|
Profit/(Loss) before Tax (a-b-c) |
54909.800 |
(17339.100) |
26155.100 |
|
|
3 CAPITAL
EMPLOYED |
|
|
|
|
|
(Segment Assets- Segment Liabilities) |
|
|
|
|
|
a) Downstream Petroleum |
324600.700 |
240603.600 |
324600.700 |
|
|
b) Exploration and Production of Hydrocarbons |
(8297.200) |
(7509.500) |
(8297.200) |
|
|
c) Others (Unallocated-Corporate) |
67320.600 |
80102.000 |
67320.600 |
|
|
Total |
383624.100 |
313196.100 |
383624.100 |
|
NOTES:
1. The Company is engaged in the following business segments: (a) Downstream i.e. Refining and Marketing of Petroleum Products (b) Exploration and Production of Hydrocarbons. Segments have been identified taking into account the nature of activities and the nature of risks and returns.
2. Segment Revenue comprises of the following: (a) Turnover (Net of Excise Duties) (b) Subsidy from Government of India (c) Other income (excluding interest income, dividend income and investment income)
3. There are no geographical segments.
4. Previous period's figures have been regrouped/reclassified wherever necessary. The above results have been reviewed and recommended by the Audit Committee in its meeting held on May 28, 2014 and taken on record by the Board of Directors at its meeting held on May 28, 2014.
FIXED ASSETS
v
Tangible
Assets
· Land – Freehold
· Buildings
· Plant and Equipment
· Furniture and Fixtures
· Transport Equipment
· Office Equipment
· Roads and Culverts
· Leasehold Property – Land
· Railway Siding and Rolling Stock
· Unallocated Capital Expenditure on Land Development
v
Intangible
Assets
· Rights of Way
· Technical/ Process Licenses
· Software
PRESS RELEASE
HPCL SIGNS MOU WITH MOP&NG, GOVT. OF INDIA FOR FY 2013-14
New Delhi
Memorandum of Understanding (MoU) between HPCL and Ministry of Petroleum and Natural Gas (MOP&NG) for the year 2013-14 was signed by Chairman and Managing Director, Shri S. Roy Choudhury of HPCL and Secretary, MOP&NG, Shri Vivek Rae recently.
MoU was signed in the presence of Addl. Secretary and Financial Advisor, Shri Subhash Khuntia, Joint Secretary-Refineries, Shri L.N. Gupta, Advisor(IFD), Shri V.L.V.S.S. Subba Rao, and our Director-Finance, Shri B. Mukherjee, Director-Refineries, Shri K. Murali, Director-Marketing, Smt. Nishi Vasudeva, ED-IT&S, Shri B. K. Namdeo, ED-CS&P, Shri H. Kumar, ED-DCO, Shri Ajit Singh, GM-Finance,CS&P, Ms. Geeta Jerajani and Delhi Co-ordination team.
Memorandum of Understanding (MoU) is a negotiated agreement between HPCL and Government of India. MoU targets comprise both Financial & Physical parameters covering entire gamut of operations of the Corporation. MoU targets are set as per DPE guidelines in consultation with MOP&NG and approved by DPE. Performance of the Corporation for the year vis-à-vis MOU targets is evaluated by DPE and rating given. Performance related Pay is directly linked with MoU rating of the Corporation.
HPCL has been achieving "Excellent" rating since inception of MoU system in 1992. For the year 2011-12 also, we have achieved "Excellent" rating with a score of 1.037, which is the best amongst all the PSUs under MOP&NG. This achievement is an outcome of efforts put in by dedicated employees of the Corporation.
LAUNCH OF 5 KG LPG CYLINDER SALE THROUGH COCO ROS IN HYDERABAD
December 5th, 2013
The Ministry of Petroleum and Natural Gas today launched the sale of 5 Kg cylinders through COCO ROs in Hyderabad. A novel scheme of sale of 5 kg LPG cylinders at market price with minimal documentation through Company Owned Retail Outlets (Petrol Stations) was earlier launched on 5th October'13 by the Hon'ble Minister of Petroleum Dr. M. Veerappa Moily in the cities of Bangalore, Chennai, Kolkatta and Mumbai.
The Ministry of Petroleum and Natural Gas today launched the sale of 5 Kg cylinders through COCO ROs in Hyderabad. A novel scheme of sale of 5 kg LPG cylinders at market price with minimal documentation through Company Owned Retail Outlets (Petrol Stations) was earlier launched on 5th October'13 by the Hon'ble Minister of Petroleum Dr. M. Veerappa Moily in the cities of Bangalore, Chennai, Kolkatta and Mumbai.
5 Kg Sale through
COCO ROs
Presently, OMCs are marketing LPG filled cylinders to various customers through LPG distributor network all over India from their own LPG bottling Plants supplied to the Distributors godown. All such customers are being enrolled by collecting Proof of Identity (POI), Proof of Address (POA) and a deposit for the cylinder and regulator and in turn issuing a Subscription Voucher thereby loaning the equipment to the customer in lieu of the deposit received. Such customers are registered into OMC database as customers and subsequent refills are issued to only such customers who place their booking against the above customer number. The cylinder is home delivered by our LPG distributor in case of our regular distributors and in case of RGGLV it is on Cash and Carry basis.
The Ministry of Petroleum and Natural Gas today launched the sale of 5 Kg cylinders through COCO ROs in Hyderabad.
There is an emerging segment of new consumers like IT professionals, BPO employees who want LPG but in absence of proper proof of address (POA) cannot access the same. Further, because of their highly irregular work timings, they may not be able to visit the distributor or be at home to receive cylinders during normal working hours. For some consumers, the need is in small parcels or arises at odd times of the day when distributors may be closed.
This initiative allows sale of 5 kg LPG cylinders at market price with merely any Proof of Identity (POI) through Company Owned Retail Outlets (Petrol Stations) to attend to demand of such consumers. The Sale of 5 kg cylinders will be done (Equipment + Product) at Non Domestic rates with /without regulator for the first time by charging Rs. 1655 (inclusive of applicable taxes) for the cylinder and Rs. 262.50 (inclusive of applicable taxes) for regulator. Subsequently, customers can purchase refill (cost of LPG only) at Rs 510 (inclusive of applicable taxes) as per current non domestic rates applicable in the market.
This scheme is expected to be a boon to migratory population such as students, IT professionals, BPO employees and persons with odd duty timings as it would provide them the flexibility to pick up cylinders and obtain subsequent refills at time of their choice as Petrol Stations are open for longer hours. This scheme is running successfully for two month in the cities of Kolkata, Chennai, Mumbai and Bangalore on a pilot basis. Upon completion of the pilot, the facility would be extended to other towns and cities also.
Outlets covered in the city of Hyderabad would be HPCL COCO Outlet at NSIC Khusaiguda, IOCL COCO outlet at SP Road, Begampet and BPCL outlets at Lalitha Fuel Point, Raidurg (Entrance to IT HUB) and Cyberabad Filling Station, Hitech city. Once we begin with these four outlets, a few more are expected to be added soon.
HPCL DECLARES Q1 RESULTS FOR FY 2013-14
Hindustan Petroleum Corporation Limited has registered gross sales of Rs. 532430.000 Millions for the period April - June, 2013 as against Rs. 464060.000 Millions in the corresponding previous period - an increase of 14.7%. The domestic sales of petroleum products have increased to 7.79 million tonnes registering a growth of above 4.7% over the first quarter of previous year, as against the industry average growth of 1.8%. The sales of Motor Spirit (Petrol) increased by 12.9% and that of High Speed Diesel by 7.1%, over the first quarter of previous year, the highest growth rates among the PSU Oil Marketing Companies.
The refineries at Mumbai and Visakh processed 3.44 million tonnes of crude during April - June, 2013 as against 3.58 million tonnes during April - June, 2012. The thruput for the quarter was higher at Mumbai refinery but lower at Visakh refinery, as compared to the corresponding quarter of last year. The combined GRM during the quarter was $ 2.58 per barrel.
On the financial front, the loss for the period April-June, 2013 was Rs. 14600.000 Millions as against a loss of Rs. 92490.000 Millions for April-June, 2012. The loss during the quarter is lower mainly on account of lower absorption of under-recoveries on sale of sensitive petroleum products, higher refining margins as also lower manpower costs.
Four new pipelines are currently under implementation - i) Rewari - Kanpur ii) Uran - Chakan / Shikrapur for LPG iii) Mangalore - Hassan - Mysore - Solur for LPG and iv) Awa - Salawas. The physical progress achieved in all these pipelines as of June, 2013, was ahead of target.
RAJASTHAN REFINERY
A Joint Venture Agreement was signed between HPCL [with 74% equity] and Government of Rajasthan [with 26% equity] at Jaipur on July 11, 2013 for setting up a state-of-the art 9 MMTPA Refinery-cum-Petrochemical Complex in Barmer District of Rajasthan at an estimated capex of Rs. 372300.000 Millions. The Joint Venture Company will be known as HPCL Rajasthan Refinery Limited.
The project is under final stages of approval. All the statutory approvals including environmental clearance, land, financial closure and final GOI approval are expected to be obtained by end December 2013. The project is expected to be mechanically completed within 48 months.
LNG REGASIFICATION
TERMINAL AT CHHARA
HPCL and SP Ports Private Limited, a company belonging to Shapoorji Pallonji Group, have signed a Joint Venture Agreement on 31st July 2013, for setting up an LNG Re-gasification Terminal with an initial capacity of 5 MMTPA at Chhara, in Junagadh district, Gujarat. The Terminal is being developed through a Joint Venture Company with 50:50 equity participation by HPCL and SPPPL at a cost of Rs. 54110.000 Millions.
HPCL 2013-14 PROFIT UP BY 92%
Mumbai
Hindustan Petroleum Corporation Limited has registered gross sales of Rs.2,32,188 crores for the year 2013-14 as against Rs.2156660.000 Millions in the previous year representing an increase of over 7.7%. The sales of petroleum products in the domestic market were at an all time high of 30.26 million tonnes during the year 2013-14, registering an increase of 4.1% over the previous year, as against the industry growth rate of 1.3%. The pipeline thruput increased to 15.69 million tonnes as compared to 14.04 million tonnes in the previous year.
The refineries at Mumbai and Visakh processed 15.51 million tonnes of crude during the year. The combined GRM during the year was US $ 3.43/bbl, as against $ 2.08/bbl in the previous year.
On the financial front, Profit after Tax (PAT) for the full year 2013-14 was higher at Rs.17340.000 Millions as compared to Rs.9050.000 Millions in the previous year. The increase was mainly due to increased refining and marketing margins.
The Profit before Tax (PBT) for January - March, 2014 was at Rs.54910.000 Millions as against Rs.82490.000 Millions primarily because of higher compensation towards under-recoveries during January - March 2013.
For the year 2013-14, HPCL has proposed a dividend of Rs.15.50 per share (155%) as against Rs.8.50 per share (85%) in the previous year. The dividend would result in a total payout of Rs. 6140.000 Millions including dividend distribution tax.
Recognising marketing and distribution network as one of the pillars of success , a number of infrastructure projects have been taken up for capacity expansion i.e., Mounded LPG Storage and Jetty Facility at MLIF , Mangalore; New LPG Bottling Plants at Solapur, Bhopal and Bangalore increasing the storage capacity to about 130 TMT and bottling capacity to 5 MMTPA; New POL Depots at Bokaro, Bihta and Kadapa and Revamping of POL terminals at Paradeep and Budge Budge.
Four new product pipelines are currently under implementation - i) Rewari - Kanpur ii) Awa - Salawas iii) Uran - Chakan / Shikrapur for LPG iv) Mangalore - Hassan - Mysore for LPG, at a total cost of Rs.22770.000 Millions. The physical progress achieved in all these pipelines as of March, 2014, are on schedule.
The company has started making its footprints in the Natural Gas segment, and in this regard has initiated the project activities for setting up a 5 MMTPA LNG terminal at Chhara, Gujarat in a JV partnership with S P Ports Private Limited
In Exploration and Production, Prize Petroleum, wholly owned subsidiary of HPCL has signed a Sale Purchase Agreement with AWE, Australia to acquire stake in two natural gas blocks in Australia, viz., 11.25% participating interest in a producing field "Yolla" and 9.75% interest in a discovered, to be developed field "Trefoil" for a total consideration of AUD 85 Million.
For our Rajasthan Refinery project, which is with Govt. of Rajasthan, the public hearings for environmental clearances are underway.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON DESIGNATED
PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.19 |
|
|
1 |
Rs.102.56 |
|
Euro |
1 |
Rs.81.97 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
|
75 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.