MIRA
INFORM REPORT
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Report Date : |
03.03.2014 |
IDENTIFICATION DETAILS
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Name : |
ESSAR OIL LIMITED |
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Registered
Office : |
Khambhalia, Post Box No - 24, District |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
12.09.1989 |
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Com. Reg. No.: |
04-032116 |
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Capital Investment
/ Paid-up Capital : |
Rs.13822.700 Millions |
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CIN No.: [Company Identification
No.] |
L11100GJ1989PLC032116 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
RKTE00150D |
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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
: |
Subject is primarily engaged in the business of refining and marketing
of petroleum products in domestic and overseas markets and also engaged in the
business of Exploration and Production. |
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No. of Employees
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Information denied by management |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (42) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 87220000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Exist |
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Comments : |
Subject is a subsidiary of ESSAR GLOBAL FUND LIMITED. It is an
established company having satisfactory track record. The company has incurred accumulated losses during the financial year
2013. However, the company gets good financial and managerial support from
its parent company. Trade relations are fair. Business is active. Payment terms are
reported to be slow but correct. The company can be considered for business dealing at usual trade
terms and condition. |
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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 – December 1, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The services sector, the largest contributor to India’s GDP, contracted
for the sixth consecutive month in December, as orders dipped. However, hiring
has risen. Direct tax collections rose 12.3 % during the April – December
period of the current financial year. The government has decided to
retain 100 per cent foreign direct investment in both greenfield (new) and
brown field (existing) pharmaceutical companies, despite concerns over genetic
drugs going out of production, if multi-national companies take over domestic
ones. In M&A deals, a non compete clause would not be allowed, except in
special circumstances. The Department of Industrial Policy and Promotion plans
to release the next edition of its consolidated foreign direct investment
policy document on March 31, incorporating changes made in the past year. DIPP
compiles all policies related to India’s FDI regime into a single document to
make it easy for investors to understand. 185 million estimated number of
mobile internet users in India by June 2014, according to a report by the
Internet & Mobile Association of India and IMRB International. India
had 110 million mobile internet users with 25 million in rural areas. $3.77 tn
estimated global IT spending in 2014, according to research firm Gartner Inc.
The growth forecast for this year is cut to 3.1 %from the earlier estimate of
3.5 %. The spending growth forecast for telecom services – a segment that
accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per
cent is the main reason for this overall IT cut. A Reserve Bank of India
committee has recommended setting up a special category of lenders who would
cater to small businesses and households, to expand the number of customers
with access to banking services. These banks would focus onproviding payment
services and deposit products. Indian banks want the free use of
automated teller machines to be capped at five transactions in a month
including that of the bank in which the account is active. This follows state
government order to banks to install security guards at ATM booths after a
woman banker was assaulted in Bangalore. The government is likely to present a
vote on Account in mid-February. The annual Economic Survey will be tabled
later in Parliament along with the full Budget. A full Budget for 2014/15 is
likely to be present in July by the new government formed after the General
Election. The government will soon launch an internet spy system, called Netra,
to detect malafide messages. Security agency will deploy the system to capture
dubious voice traffic on applications such as Skype and Google Talk, as well as
tweeters.
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Long Term Bank Facilities = BBB+ |
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Rating Explanation |
Have moderate degree of safety and carry
moderate credit risk. |
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Date |
12.11.2013 |
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Rating Agency Name |
CARE |
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Rating |
Short Term Bank Facilities = A3+ |
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Rating Explanation |
Have moderate degree of safety and carry
high credit risk. |
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Date |
12.11.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED
Management Non-Co-operative. (Tel No.91-22-66601100).
LOCATIONS
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Registered Office / Factory 1 : |
Khambhalia Post, Post
Box No. 24, District Jamnagar – 361 305, Gujarat, India. |
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Tel. No.: |
91-2833-241444 |
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Fax No.: |
91-2833-662929 |
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E-Mail : |
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Website : |
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Corporate
Office 1 : |
Essar House, P.
O. Box No. 7945, 11, Keshavrao Khadye Marg, Mahalaxmi, Mumbai – 400 034, Maharashtra,
India |
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Tel. No.: |
91-22-24950606/66601100/ |
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Fax No.: |
91-22-23544281/
23540450 |
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E-Mail : |
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Website: |
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Factory 2 : |
The company’s Oil
fields are located at Mehsana, Gujarat, India |
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Corporate
Office 2 : |
Located at:
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Overseas
Office : |
Located at:
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DIRECTORS
As on 31.03.2013
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Name : |
Mr. Prashant Ruia |
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Designation : |
Chairman |
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Name : |
Mr. Naresh K.
Nayyar |
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Designation : |
Deputy Chairman |
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Name : |
Mr. Lalit Kumar
Gupta |
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Designation : |
Managing Director
and Chief Executive Officer |
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Name : |
Mr. Chakrapany
Manoharan |
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Designation : |
Director
(Refinery) |
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Name : |
Mr. Philip S.
Aiken |
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Designation : |
Director |
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Name : |
Mr. Dilip J.
Thakkar |
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Designation : |
Director and
Independent Director |
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Name : |
Mr. K. N.
Venkatasubramanian |
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Designation : |
Director |
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Name : |
Mr. V.S. Jain |
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Designation : |
Director |
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Name : |
Mr. Rajiv Pal Singh |
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Designation : |
Nominee of State Bank of India |
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Name : |
Mr. Melwyn Rego |
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Designation : |
Nominee of IDBI
Limited |
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Name : |
Mr. Suneet Shukla |
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Designation : |
Nominee of IFCI
Limited |
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Name : |
Mr. R. Sudarsan |
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Designation : |
Nominee of LIC of India |
KEY EXECUTIVES
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Name : |
Mr. Sheikh S
Shaffi |
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Designation : |
Company Secretary
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SHAREHOLDING PATTERN
As on 31.12.2013
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Names of Shareholders |
No. of Shares |
Percentage
of Holding |
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(A) Shareholding of Promoter and Promoter Group |
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6215026 |
1.25 |
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6215026 |
1.25 |
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354714647 |
71.22 |
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354714647 |
71.22 |
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Total shareholding of Promoter and Promoter Group (A) |
360929673 |
72.47 |
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(B) Public Shareholding |
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10013637 |
2.01 |
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11270152 |
2.26 |
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28097549 |
5.64 |
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49381338 |
9.91 |
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18789929 |
3.77 |
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61815404 |
12.41 |
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4804493 |
0.96 |
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2332209 |
0.47 |
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2332209 |
0.47 |
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87742035 |
17.62 |
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Total Public shareholding (B) |
137123373 |
27.53 |
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Total (A)+(B) |
498053046 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
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951463854 |
0.00 |
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0 |
0.00 |
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951463854 |
0.00 |
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Total (A)+(B)+(C) |
1449516900 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is primarily engaged in the business of refining and marketing
of petroleum products in domestic and overseas markets and also engaged in
the business of Exploration and Production. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Information denied by management |
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Bankers : |
·
ICICI Bank Limited ·
State Bank of India ·
IDBI Bank Limited ·
Punjab National Bank ·
HDFC Bank Limited ·
Axis Bank Limited ·
Indian Overseas Bank ·
Oriental Bank of Commerce ·
Indian Bank ·
Central Bank of India ·
Bank of India ·
State Bank of Patiala ·
Allahabad Bank ·
Syndicate Bank ·
Bank of Baroda ·
State Bank of Mysore |
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Facilities : |
Long term
borrowings: The classification
of loans between current liabilities and non-current liabilities continues
based on repayment schedule under respective agreements as no loans have been
recalled due to non-compliance of conditions under any of the loan
agreements. The non-compliance of conditions under the loan agreements are
primarily arising out of the order of the Hon’ble Supreme Court dated January
17, 2012 (refer note 36). This is in accordance with the guidance issued by
the Institute of Chartered Accountants of India on Revised Schedule VI to the
Companies Act, 1956. Security for
term loans and funded interest facilities from banks and financial
institutions and debentures: a)
Term loans and funded interest facilities of
Rs.6996.080 Millions (Previous year Rs.93620.600 Millions) and debentures of
Rs.1521.800 Millions (Previous year Rs.1842.100 Millions) are secured / to be
secured by first ranking security interests (pari passu with loans for
refinery expansion, refinery optimisation, refinanced ECB Loan and Sales tax /
General purpose term loan) on all immovable assets (except certain leased out
assets), all movable assets other than current assets and second ranking
security interests on current assets, present and future, security interest
on rights, title and interests under project documents, trust and retention
accounts, insurance policies all in relation to the refinery including
refinery expansion and refinery optimisation, by pledge of certain shares of
the Company held by promoters, personal guarantees of some of the promoters
and other collaterals being charge on pledge of certain shares of the Group
Company and charge by way of mortgage over a property of Group Company. Term
Lenders have agreed to release personal guarantees and collaterals thereto
and majority of the lenders have already released the same and other are in
process of releasing. A term loan of Rs.607.800 Millions (Previous year
Rs.1098.200 Millions) {(including funded interest facilities of Rs.213.700
Millions) (Previous year Rs.441.200 Millions)} is also secured by a corporate
guarantee and certain assets of a Group Company. b)
Corporate term loan from a bank of Rs.10000.000
Millions (Previous year Rs.5000.00 Millions) is secured by first charge on all
current assets (ranking pari passu with working capital facility) excluding
that of exploration and production division, second charge by way of mortgage
of land and building and plant and machinery and other assets excluding
certain category of assets, personal guarantees of some of the promoters and
corporate guarantee by a Group Company and other collaterals being second
charge on pledge of certain shares of the Company and that of a Group Company
held by promoters and second charge by way of mortgage over a property of
Group Company. c)
Sales tax / General purpose term loan from a bank
of Rs.31430.000 Millions (Previous year Rs. Nil) is secured / to be secured
by first ranking security interests
(pari passu with loans for refinery, refinery expansion, Refinanced ECB Loan
and refinery optimisation) on all immovable assets (except certain leased out
assets), all movable assets other than current assets and second ranking
security interests on current assets, present and future, personal guarantees
of some of the promoters and certain undertakings provided from holding
companies. d)
Refinanced ECB Loan from bank of Rs.14669.300
Millions (Previous year Rs. Nil) is secured/to be secured by first ranking
security interests (pari passu with loans for refinery, refinery expansion,
refinery optimisation and Sales tax / General purpose term loan) on all
immovable assets of Refinery Division, all movable assets of refinery
division other than current assets and second ranking security interests on
current assets, present and future, pledge of certain shares of the Company
held by promoters. e)
Term loans of Rs.39904.300 Millions (Previous
year Rs.45620.300 Millions) for the Refinery expansion are secured / to be
secured by first ranking security interests (pari passu with loans for
refinery, refinery optimisation, Refinanced ECB and Sales tax / General
purpose term loan) on all immovable assets, all movable assets other than
current assets and second ranking security interests on current assets,
present and future, charge over immovable properties leased to entities
implementing the terminal utility, power utility and township utility
(subject to prior charge in favour of the lenders financing the said
utilities), security interest on rights, title and interests under project
documents, trust and retention accounts, insurance policies in relation to
the refinery, including refinery expansion and further by pledge and
non-disposal undertaking of certain shares/global depository shares of the
Company held by promoters / associates of promoters or of the Company,
personal guarantees of promoters of the Company together with collateral
securities and certain undertakings from holding and group companies and
residual charge on the company’s participating interest and cash flows
related to upstream oil and gas, coal bed methane fields and related assets
subject to certain approvals. f)
Term loans of Rs.10134.500 Millions (Previous
year Rs. Nil) for the refinery optimisation are secured by first ranking
security interests (pari passu with loans for refinery, refinery expansion,
Refinanced ECB Loan and Sales tax / General purpose term loan) on all
immovable assets (except certain leased out assets), all movable assets other
than current assets and second ranking security interests on current assets,
present and future, security interest on rights, title and interests under
project documents, trust and retention accounts, insurance policies in
relation to the refinery, refinery expansion and refinery optimisation and
pledge of shares of the Company. g)
Term loans of Rs.5340.700 Millions (Previous year
Rs.3062.100 Millions) is secured by first charge on immovable assets and
movable assets (present and future), first charge over book debts,
operational cash flows, receivables, trust and retention account, Debt
Service Reserve account, participating interest under CBM contract, security
interest on rights, title and interests under the project documents,
insurance policies, clearances, rights under letter of credit, guarantee,
performance bond, corporate guarantee and bank guarantees, all in relation to
a CBM Project. h)
Term loan from a Bank of Rs.12.000 Millions
(Previous year Rs.60.000 Millions) is secured by hypothecation of current
assets of an oilfield, bank escrow accounts for certain receivables and
corporate guarantee by a Group Company. (ii) Repayment and other terms: a)
Secured redeemable non – convertible debentures
(“NCDs”) of Rs.105/- each consists of: 13868,050 (Previous year 16918250) –
12.50% NCDs of Rs.105/- each amounting to Rs.1456.100 Millions (Previous year
Rs.1776.400 Millions). 700000 (Previous year 700000) – 12.50% NCDs, of Rs.100 each on private
placement basis partly paid up at Rs.93.86 per debenture amounting to
Rs.65.700 Millions (Previous year Rs.65.700 Millions). During the year, the Company refinanced its rupee borrowings with one
of its existing lenders into an External Commercial Borrowing (ECB). This
resulted in conversion of debentures having face value of Rs.320.300 Millions
also into the ECB loan. Further, as per the Common Loan Agreement (“the CLA”)
entered with lenders post exit from the Corporate Debt Restructuring (CDR)
Scheme, the Company has agreed to pay interest on a monthly/quarterly basis,
on debentures held by the erstwhile CDR lenders at a floating rate linked to
the base rate of the respective bank prevailing on August 8, 2012, with
effect from January 1, 2012, resulting in the interest rates ranging from
12.32% p.a. to 12.75% p.a. The Company is also in the process of sending
offer letters to the remaining debenture holders (i.e. other than lenders)
giving them, inter alia, an option for prepayment of debentures along with
accumulated interest in full. The principal amount of debentures is otherwise
payable from December 2014 to June 2018 and accumulated interest from
December 2014 to March 2027, with an option to prepay certain portion of
interest at a discounted rate. As an alternative, these debenture holders can
opt for revising the terms and conditions applicable to debentures in line
with the terms contained in the CLA93 The Hon’ble High Court of Gujarat has, in response to the Company’s
petition, ruled vide its orders dated August 04, 2006 and August 11, 2006
that the interest on certain categories of debentures should be accounted on cash
basis. In accordance with the said petition / order, funded / accrued
interest liabilities amounting to Rs.4177.200 Millions (Previous year
Rs.4282.400Millions) as at March 31, 2013 have not been accounted for. This
amount carries interest rate ranging from fixed rate of 5% to a floating rate
of 12.75% and is repayable from December 2014 to March 2027. b)
The Interest rates for Common Loan Agreement
(“the CLA”) (earlier Master Restructuring Agreement (“the MRA”)) loans from
Banks and Financial institutions amounting to Rs.54592.000 Millions (Previous
year Rs.70700.400 Millions) will based on their prime lending rate / base
rate LIBOR plus margin (margin ranges from 2.12% to 3.00%) with different
repayment installments starting from December 2009 to March 2026. c)
During the year, the Company exited Corporate
Debt Restructuring Scheme resulting in termination of the MRA dated December
17, 2004 and entered into a CLA dated March 25, 2013 with the lenders for the
loan facilities which were hitherto being governed by the MRA. The MRA gave
an option, subject to consent of lenders, to the Company to prepay certain
funded interest loans (the FS loans) of Rs.24716.300 Millions on or before
April 24, 2012 without interest. The FS loan has not been prepaid before April
24, 2012 and is now governed by the CLA. In order to give accounting effect to reflect substance of the
transaction, the FS loan was, since inception, measured by the Company in
accordance with the principles of IAS 39, Financial Instruments, Recognition
and Measurement, in absence of specific guidance in Indian GAAP to cover the
specific situation. In continuance of the above said principle and applying
the principle of Accounting Standard AS 30, Financial Instruments,
Recognition and Measurement, the FS loan has, upon signing of the CLA, been
re-measured since inception, considering present value of cash flows
inclusive of interest. Accordingly, the gross liability of Rs.31638.400
Millions of the FS loans and funded interest thereon as at March 31, 2013
(comprising of Rs.21263.600 Millions to the banks and Rs.1037.48 Millions to
the financial institutions) have been measured at Rs.18338.400 Millions
(comprising of Rs.12343.400 Millions to the banks and Rs.5995.000 Millions to
the financial institutions). Consequently, borrowing cost of Rs.5367.100
Millions attributable to construction of the Refinery Project based on such
re-measurement has been capitalised as part of cost of Fixed Assets and
balance borrowing cost of Rs.1109.400 has been recognised in the statement of
profit and loss. The FS Loans of Rs.24716.300 Millions is repayable in various
installments from March 2021 to March 2026 and the Funded Interest thereon as
at March 31, 2013 amounting to Rs.6921.900 Millions is repayable in 40 equal
quarterly installments beginning June 30, 2015. A funded interest loan of
Rs.2068.800 Millions (Previous year Rs.2068.800 Millions) is payable in a
single bullet payment in 2031 and is continued to be measured in accordance
with the aforementioned principles at Rs.349.500 Millions (Previous year
Rs.316.700 Millions). d)
Terms Loans amounting to Rs.45639.700 Millions
(Previous year Rs.40719.000 Millions) carry interest rate linked with
respective banks’ prime lending rate / base rate / LIBOR plus margin /
liquidity premium and are repayable in installments starting from December
2012 ending in March 2020. Out of above Rs.9484.500 Millions (Previous year
Rs.17076.100 Millions) pertains to Buyers’ Credit which will be ultimately
converted into Term Loan. e)
Term loans amounting to Rs.5340.700 Millions
(Previous year Rs.3062.100 Millions) carry interest rate linked with
respective banks prime lending rate/ base rate/LIBOR plus margin and are
repayable in installments starting from March 2014 and ending in June 2021.
Out of above Rs.676.200Millions (Previous year Rs.324.700 Millions) pertains
to Buyers’ credit which will be ultimately converted into term loan. f)
Term loans amounting to Rs.12.000 Millions
(Previous year Rs.60.000 Millions) carry 12.80% interest rate with repayments
ending in April 2013. g)
ECB Loan amounting to Rs.4399.000 Millions
(Previous year Rs.4901.300 Millions) carry interest rate of LIBOR + 2.75% are
repayable in installments ending in October 2018. h)
ECB Loan
amounting to Rs.14669.300 Millions (Previous year Rs.Nil) carry interest rate
of 6 months LIBOR + 5.00% are repayable in installments starting from March
2015 ending in March 2023. i)
Corporate term loan amounting to Rs.10000.000
Millions (Previous year Rs.5000.00 Millions) carry interest rate at banks’
prime lending rate / base rate plus 3.75% (margin / liquidity premium) and is
repayable in installments from June 2014 to March 2017. j)
General purpose term loan amounting to
Rs.31430.000 Millions (Previous year Rs.Nil) carry interest rate at banks’
prime lending rate / base rate plus 3.00% (margin / liquidity premium) and is
repayable in installments from December 2012 to September 2018. k)
The pilot project for coal bed methane gas was
partially financed by a conditional grant of USD 0.89 million (Previous year
USD 0.89 million) and Rs.23.100 Millions (Previous year Rs.23.100 Millions)
received from a bank. The conditional grant, in terms of the agreement, will
be repayable in the event the Company puts the project to commercial use, and
repayments to the bank will be based on gross annual sales derived from the
commercial exploitation of the project, subject to a maximum repayment of
200% of the conditional grant. Commercial exploitation of the project is
dependent upon getting necessary approvals from the Government of India. l)
Unsecured loans from related parties includes Rs.
Nil (Previous year Rs.11090.000 Millions) carrying interest rate 9.5% and
Rupee loan amounting to Rs.457.500 Millions (Previous year Rs.702.000
Millions) carrying interest rate 10.25% repayable by April 25, 2014 in
various installments. Security for short term borrowing:
i.
Buyers’ credits, bills discounting, advance
against LCs and working capital demand loan: a.
Rs.64919.300 Millions (Previous year Rs.32866.500
Millions) are secured by first charge on all current assets (ranking pari
passu with Corporate term loan) excluding that of Exploration and Production
division, second charge by way of mortgage of land and building and plant and
machinery and other assets excluding certain category of assets, personal
guarantees of promoters, corporate guarantee by a Group Company, other
collaterals being second charge on pledge of certain shares of the Company
and that of a Group Company held by promoters and second charge by way of
mortgage over a property of Group Company. b.
Rs.11964.600 Millions (Previous year Rs.Nil) are
secured by charge over receivables. c.
Rs.Nil
(Previous year Rs.3276.500 Millions) is secured by first charge on all goods
procured under the LCs opened by the banks and guarantee by the ultimate
holding Company. d.
Rs.592.900 Millions (Previous year Rs.59.800
Millions) are secured by fixed deposits maintained with a bank. ii.
Bank Overdraft from bank of Rs.925.300 Millions
(Previous year Rs.1980.900 Millions) is secured by fixed deposits maintained
with the bank. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins
and Sells Chartered Accountants |
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Address : |
Ahmadabad, Gujarat, India |
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Holding
Companies: |
·
Essar Global Fund Limited (FKA Essar Global
Limited) - Cayman (Ultimate Holding Company)(EGL) ·
Essar Energy Plc - U.K (Holding Company of
Vadinar Oil - Mauritius)(EEPLC) ·
Essar Oil and Gas Limited (Formerly known as
Vadinar Oil), Mauritius (Holding Company)(EOGL) |
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Subsidiaries: |
·
Essar Oil Mauritius Limited (Subsidiary Company)
– (formerly known as Pitney Mauritius Holdings Limited) (EOML) (Upto December
7, 2012) |
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Associate: |
·
Vadinar Power Company Limited (VPCL) |
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|
|
Fellow Subsidiaries |
·
Aegis Limited (AEGIS) ·
Aegis Aspire Consultancy Services Limited (AACSL) ·
AGC Networks Limited(AGCNET) ·
Bhandar Power Limited (BPOL) ·
Essar Bulk Terminal Limited (EBTL) ·
Essar Bulk Terminal (Salaya) Limited (EBTSL) ·
Essar Electric Power Development Corporation
Limited (EEPDCL) ·
Essar Energy Overseas Limited (EEOL) ·
Essar Exploration and Production India Limited
(EEXPIL) ·
Essar Exploration and Production Limited (EEXPL) ·
Essar Exploration and Production Southeast Asia
Limited (EEXPSEAL) ·
Essar Energy Holdings Limited - Mauritius (EEHL) ·
Energy Transportation International Limited
(ETIL) ·
Essar Gujarat Petrochemicals Limited (EGPL) ·
Essar Logistics Limited (ELL) ·
Essar Offshore Subsea Limited (EOSL) ·
Essar Oilfields Services India Limited (EOFSIL) ·
Essar Oilfields Services Limited (EOFSL) ·
Essar Oil UK Limited (EOLUK) ·
Essar Power Gujarat Limited (EPGL) ·
Essar Projects (India) Limited (EPIL) ·
Essar Projects Management Consultants Limited
(Merged with Essar Projects India Limited w.e.f. August 26, 2011) (EPMCL) ·
Essar Power Limited (EPOL) ·
Equinox Reality and Infrastructure Private
Limited (ERIPL) ·
Essar Steel India Limited (Merger of Essar Steel
Orissa Limited ·
Essar Steel Hazira Limited ·
Hazira Pipe Mills Limited and Hazira Plates
Limited w.e.f 1st Apr 2009) (ESTL) ·
Essar Shipping and Logistics Limited (ESLL) ·
Essar Shipping Limited (ESL) ·
Vadinar Oil Terminal Limited (VOTL) ·
Vadinar Ports and Terminal Limited (VPTL) ·
Essar Exploration and Production Limited -
Nigeria (EEPLN) |
|
|
|
|
Companies in which promoters have significant
influence/control : |
·
Arkay Holdings Limited (ARKAYHPL) ·
Essar Agrotech Limited (EATL) ·
Bright Lamp Education Limited (BLEL) (Fka Essar
Education Limited) ·
Essar Energy Services Limited (EESL) ·
Essar Heavy Engineering Services Limited (EHESL) ·
Essar House Limited (EHL) ·
Essar Investments Limited (EIL) ·
Imperial Consultants and Securities Private
Limited (ICSPL) ·
Essar Information Technology Limited (EITL) ·
Essar Infrastructure Services Limited (EISL) ·
Essar Properties Limited (EPL) ·
Essar Services India Limited (ESIL) ·
Essar Steel (Jharkhand) Limited (ESTLR) ·
Essar SEZ Hazira Limited (ESHL SEZ) ·
Futura Travels Limited(FUTURA) ·
Ibrox Estates Private Limited (IBROX) ·
India Securities Limited (ISL) ·
Kanak Communications Limited(KANAKCL) ·
Kartik Estates Private Limited(KEPL) ·
Neelkamal Traders Private Limited(NEELKAMAL) ·
New Ambi Trading and Investments Private Limited
(NEWAMBITPL) ·
Paprika Media Limited ·
Sinter-Keramos and Composites Private Limited
(SKCPL) ·
The Mobilestore Limited (TMSL) ·
Vadinar Properties Limited (VPL) ·
SG Chemicals and Dyes Trading Limited (SGCHEMTL) ·
Balaji trust (BALAJITR) |
CAPITAL STRUCTURE
After 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000000 |
Equity Shares |
Rs.10/- each |
Rs.50000.000 Millions |
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1449516900 |
Equity Shares |
Rs.10/- each |
Rs.14495.169 Millions |
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000000 |
Equity Shares |
Rs.10/- each |
Rs.50000.000 Millions |
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1427593086 |
Equity Shares |
Rs.10/- each |
Rs.14275.900 Millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1365667086 |
Equity Shares |
Rs.10/- each |
Rs.13656.700 Millions |
|
61926000 |
Add : Forfeited shares - Equity shares of Rs.10/- each |
|
Rs.166.000 Millions |
|
|
Total |
|
Rs.13822.700
Millions |
a)
Reconciliation of
the number of shares outstanding at the beginning and at the end of the
reporting period
|
Equity Shares |
No.
of Shares |
Rs.In
Millions |
|
Shares outstanding at the beginning of the year |
1365667086 |
13656.700 |
|
Add : Equity Shares issued during the year |
- |
- |
|
Shares outstanding at the end of the year |
1365667086 |
13656.700 |
b)
Terms / rights attached
to the equity Shares / Global depository shares (GDS)
The company has
only one class of equity shares having a par value of Rs.10 per share. Each
holder of equity share is entitled to one vote per share.
In the event of
liquidation of the company, the holders of equity shares will be entitled to
receive remaining assets of the company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
Holders of GDS will
be entitled to receive dividends, subject to the terms of the Deposit
Agreement, to the same extent as the holders of shares, less the fees and
expenses payable under such Deposit Agreement and any Indian tax applicable to
such dividends. Holders of GDS will not have voting rights with respect to the
Deposited Shares.
c)
Shares held by
holding / ultimate holding company and / or their subsidiaries / associates
|
Particulars |
No.
of Shares |
Rs.
In Millions |
|
4,761,000 GDS (Previous
year 4,761,000 GDS) held by Essar Oil and Gas Limited (formerly known as
Vadinar Oil), Mauritius, the holding Company pursuant to section 4(6) of the
Companies Act, 1956 |
728433000 |
7284.300 |
|
1,843,724 GDS (Previous
year 1,843,724 GDS) held by Essar Energy Holdings Limited, Mauritius,
subsidiary of the holding company |
282089772 |
2820.900 |
|
Equity shares
held by Essar Energy Holdings Limited, Mauritius, subsidiary of the holding
company |
178858624 |
1788.600 |
|
Equity Shares
held by Essar Power Hazira Holdings Limited (name changed from Hazira Steel
2), subsidiary of ultimate holding company, Essar Global Fund Limited |
100 |
0.000* |
* Amount less than Rs.0.100 Million
d)
Stock Options
On December 2,
2011, the Company approved grant of 3211391 options (convertible at the option
of the eligible employees into equivalent number of equity shares of Rs.10/-
each of the Company, in three equal installments i.e. at the end of 3rd / 4th /
5th year from the grant date) to the eligible employees and Executive Directors
of the Company pursuant to Essar Oil Employee Stock Option Scheme 2011 approved
by the members at the 21st Annual General Meeting held on August 12, 2011. The
exercise period for the options is 7 years from the date of vesting.
These stock
options have been granted at an option value of Rs.69.05 per equity share of
face value of Rs.10/- each (i.e. the closing price of the equity shares of the
Company on December 01, 2011 at the National Stock Exchange of India Limited,
being the exchange having the higher quantity of trading of Company’s shares).
2,519,058 options
(Previous year 2,910,749) were outstanding as on March 31, 2013. The
Remuneration Committee of the Board of Directors has noted the forfeiture of
391,691 stock options on May 10, 2013.
e)
Details of
shareholders (including GDS holders) holding more than 5% shares in the Company
|
Particulars |
No.
of Shares |
%
of Shares |
|
4761000 held by Essar Oil and Gas Limited (formerly known as Vadinar
Oil) Mauritius, the holding Company pursuant to section 4(6) of the Companies
Act, 1956 |
728433000 |
53.34 |
|
1,843,724 GDSs held by Essar Energy Holdings Limited, Mauritius, subsidiary
of the holding company. |
282089772 |
20.66 |
|
Equity shares held by Essar Energy Holdings Limited, Mauritius,
subsidiary of the Holding Company. |
178858624 |
13.10 |
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 |
13822.700 |
13822.700 |
13822.700 |
|
(b) Reserves & Surplus |
(2754.400) |
7984.700 |
21494.600 |
|
(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) |
11068.300 |
21807.400 |
35317.300 |
|
|
|
|
|
|
Foreign
Currency Compulsory Convertible Bonds |
13400.000 |
13400.000 |
0.000 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
145387.300 |
122028.000 |
116183.300 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
22160.700 |
47955.500 |
64269.900 |
|
(d) long-term provisions |
51.400 |
10.000 |
10.000 |
|
Total Non-current Liabilities (3) |
167599.400 |
169993.500 |
180463.200 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
78402.100 |
38183.700 |
23312.500 |
|
(b) Trade payables |
113561.000 |
108100.400 |
64948.500 |
|
(c) Other current
liabilities |
91227.100 |
49124.900 |
33556.400 |
|
(d) Short-term provisions |
400.600 |
306.300 |
295.800 |
|
Total Current Liabilities (4) |
283590.800 |
195715.300 |
122113.200 |
|
|
|
|
|
|
TOTAL |
475658.500 |
400916.200 |
337893.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
212561.300 |
212999.000 |
117299.600 |
|
(ii) Intangible Assets |
180.200 |
200.200 |
141.300 |
|
(iii) Capital
work-in-progress |
26103.800 |
17604.700 |
81766.700 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1030.000 |
1030.000 |
1030.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
11381.400 |
4109.300 |
4860.100 |
|
(e) Other Non-current assets |
13345.300 |
18096.400 |
17033.800 |
|
Total Non-Current Assets |
264602.000 |
254039.600 |
222131.500 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
105883.700 |
76816.700 |
57491.400 |
|
(c) Trade receivables |
47164.900 |
39969.300 |
24236.400 |
|
(d) Cash and cash
equivalents |
24306.600 |
20609.400 |
29379.900 |
|
(e) Short-term loans and
advances |
12762.900 |
2280.200 |
3211.700 |
|
(f) Other current assets |
20938.400 |
7201.000 |
1442.800 |
|
Total Current Assets |
211056.500 |
146876.600 |
115762.200 |
|
|
|
|
|
|
TOTAL |
475658.500 |
400916.200 |
337893.700 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
885781.200 |
583366.300 |
470609.200 |
|
|
|
Other Income |
6087.800 |
4247.600 |
2812.900 |
|
|
|
TOTAL |
891869.000 |
587613.900 |
473422.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
813339.800 |
528948.500 |
421292.700 |
|
|
|
Purchases of traded goods |
8667.200 |
19571.600 |
19642.000 |
|
|
|
Changes in inventory of finished goods and work-in-progress |
(2368.800) |
-9881.000 |
(11576.400) |
|
|
|
Employee Benefits Expenses |
1856.600 |
1345.600 |
1196.700 |
|
|
|
Other expenses |
33867.400 |
26621.600 |
15072.200 |
|
|
|
TOTAL |
855362.200 |
566606.300 |
445627.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
36506.800 |
21007.600 |
27794.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
34235.800 |
13868.400 |
12202.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
2271.000 |
7139.200 |
15592.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
12960.600 |
7619.400 |
7308.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE EXCEPTIONAL ITEMS AND TAX |
(10689.600) |
(480.200) |
8283.900 |
|
|
|
|
|
|
|
|
|
Less |
EXCEPTIONAL
ITEMS |
1114.800 |
12374.600 |
10834.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX |
(11804.400) |
(12854.800) |
(2550.400) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
(33.500) |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) AFTER TAX |
(11804.400) |
(12854.800) |
(2516.900) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(41648.200) |
(28793.400) |
(26276.500) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(53452.600) |
(41648.200) |
(28793.400) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Interest |
6.800 |
0.000 |
0.400 |
|
|
|
FOB value of exports |
306402.900 |
199153.300 |
150060.200 |
|
|
|
Overseas trading of crude / Petroleum
products |
0.000 |
12555.100 |
5513.400 |
|
|
|
On commodity hedging |
12520.100 |
3435.100 |
1829.400 |
|
|
|
Income from technical services |
222.900 |
147.300 |
117.800 |
|
|
|
Income from sale of participating interest
in an E&P block |
0.000 |
0.000 |
51.300 |
|
|
|
Others |
65.300 |
72.00 |
0.900 |
|
|
TOTAL EARNINGS |
319218.000 |
215362.800 |
157573.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
681393.600 |
473612.200 |
374753.900 |
|
|
|
Stores & Spares |
4591.900 |
1128.100 |
1508.100 |
|
|
|
Capital Goods |
1123.200 |
6624.600 |
19509.200 |
|
|
TOTAL IMPORTS |
687108.700 |
481364.900 |
395771.200 |
|
|
|
|
|
|
|
|
|
|
Earnings/(Loss) Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
(8.64) |
(9.41) |
(1.87) |
|
|
|
Diluted |
(8.64) |
(9.41) |
(1.91) |
|
QUARTERLY RESULTS
|
Particulars |
30.06.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
|
1st Quarter |
2nd Quarter |
3rd
Quarter |
|
Net Sales |
224610.000 |
257360.000 |
251310.000 |
|
Total Expenditure |
222770.000 |
249140.000 |
242990.000 |
|
PBIDT (Excl OI) |
1840.000 |
8220.000 |
8320.000 |
|
Other Income |
2310.000 |
2110.000 |
3700.000 |
|
Operating Profit |
4150.000 |
10330.000 |
12020.000 |
|
Interest |
9460.000 |
7660.000 |
8120.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(5310.000) |
2670.000 |
3900.000 |
|
Depreciation |
3320.000 |
3380.000 |
3380.000 |
|
Profit Before Tax |
(8630.000) |
(710.000) |
520.000 |
|
Tax |
0.000 |
0.000 |
0..000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(8630.000) |
(710.000) |
520.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
0Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(8630.000) |
(710.000) |
520.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(1.32)
|
(2.19)
|
(0.53) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(1.33)
|
(2.20)
|
(0.54) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.01)
|
(7.60)
|
(1.85) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(1.06)
|
(0.59)
|
(0.07) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
20.22
|
7.35
|
3.95 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.74
|
0.45
|
0.95 |
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 |
13822.700 |
13822.700 |
13822.700 |
|
Reserves & Surplus |
21494.600 |
7984.700 |
-2754.400 |
|
Net
worth |
35317.300 |
21807.400 |
11068.300 |
|
|
|
|
|
|
long-term borrowings |
116183.300 |
122028.000 |
145387.300 |
|
Short term borrowings |
23312.500 |
38183.700 |
78402.100 |
|
Total
borrowings |
139495.800 |
160211.700 |
223789.400 |
|
Debt/Equity
ratio |
3.950 |
7.347 |
20.219 |
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 |
470609.200 |
583366.300 |
885781.200 |
|
|
|
23.960 |
51.840 |
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
|
470609.200 |
583366.300 |
885781.200 |
|
Profit |
(2516.900) |
(12854.800) |
(11804.400) |
|
|
(0.53%) |
(2.20%) |
(1.33%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION
DETAILS:
|
HIGH COURT OF
GUJARAT LETTERS PATENT
APPEAL No. 1099 of2006 Status : PENDING
CCIN No : 001014200601099 Next Listing Date: 07/03/2014
Stage Name: FOR FINAL HEARING Act : LETTERS PATENT,
1865 Lower Court Details
LINKED MATTERS
COURT PROCEEDINGS
AVAILABLE ORDERS
CERTIFIED COPY
|
UNSECURED LOANS:
|
Particulars |
31.03.2013 Rs. In Millions |
31.03.2012 Rs. In Millions |
|
Long Term
Borrowings |
|
|
|
Finance lease
obligation |
|
|
|
From related parties |
446.900 |
451.100 |
|
From others |
11.900 |
12.300 |
|
Other loans |
|
|
|
Conditional grant from a bank |
71.400 |
68.500 |
|
From related parties |
131.700 |
11512.800 |
|
Total |
661.900 |
12044.700 |
CORPORATE
INFORMATION:
The Company is a
public limited company domiciled in India and incorporated under the provisions
of the Companies Act, 1956. It is primarily engaged in the business of refining
and marketing of petroleum products in domestic and overseas markets. It is
also engaged in the business of Exploration and Production.
MANAGEMENT
DISCUSSION AND ANALYSIS
Global Economic and Market Overview
The global economy
is expected to improve gradually with improvement in US economic environment,
moderate growth of other emerging market economies like India, China and Brazil
and revival in Euro zone and Japan. As per the International Monetary Fund’s
(IMF) ‘World Economic Outlook’ published in April 2013, global economic growth
is progressing to 3.3% in 2013 compared to 3% in 2012. However, the stability
and growth prospectus of US economy resulted in flow of money from emerging
markets to US and other developed markets which led to sharp depreciation of
emerging market’s currencies against USD particularly India which largely
depends on import of crude. This has made managing current account deficit a
challenge for policy makers.
The global
economic environment and delay in implementation of key policy decisions by the
Government of India (Government) moderated Indian economic growth to 5% during
FY 2012-13 from 6.2% in the previous year. While India continues to be one of
the fastest growing major economies in the world, in order to sustain a healthy
growth rate in the future, the Government needs to quickly address key
infrastructural bottlenecks, huge current account deficit and uncertainty with
regard to policy and regulatory matters. The economy growth is expected to be
back on track in coming year on account of new reforms announced and measures
undertaken by the Government to contain current account deficit, high inflation
and bring about overall improvement in fiscal consolidation.
Oil and natural
gas will remain key sources of fuel in the global energy basket in the
foreseeable future in spite of global thrust on increasing the share of renewal
energy. There will be gradual increase of green / renewal energy and bio-fuels
in overall basket of energy mix. However, this is not expected to significantly
impact the oil demand. As per International Energy Agency (IEA), oil &
natural gas is expected to be around 53% of total energy consumption by year
2030. Hence, the global strategic focus on hydrocarbon fuels will be a key
issue for policy makers across the world.
World oil demand
is expected to grow at around 1 million barrel of oil equivalent per year
between 2013 and 2017 with Asia accounting for 55% of the incremental demand
growth. The focus of global energy
demand growth has decisively shifted from developed markets to Asian region.
Global markets continue to witness closures of refining capacities due to high
operating cost, declining growth due to tough economic environment, high
maintenance cost to maintain high quality products (Euro V), inability to
process heavy and ultra-heavy crudes due to environmental restrictions etc. In
the last 4 years an average o\f more than 1 mmbbl of refining capacities have been
shut down each year. New refinery capacities are being added in Asia and Middle
East where demand is expected to grow at a healthy rate; the refineries in this
region also have structural cost competitiveness compared to their west
counterparts. On net basis, refinery capacity additions in next 2-3 years are
expected to be more or less equal to incremental demand which is expected to
support the refinery margins.
OPERATIONAL PERFORMANCE
The Refinery
registered an impressive 46% growth in crude processing at 19.77 million metric
tones (MMT) compared to 13.50 MMT during the previous financial year. All the
new units completed under Train I expansion project were fully stabilized
within two to three months of commissioning and the Optimisation project which
took there refining capacity from 18 million metric tones per annum (MMTPA) to
20 MMTPA was also completed four months ahead of schedule in June 2012. The
Refinery has operated successfully at the enhanced capacity of 20 MMTPA from
July 2012 onwards. Detailed information on the operational performance for the
financial year is given in the Management Discussion and Analysis which is
annexed to the Directors’ Report.
FINANCIAL PERFORMANCE
During the year,
with increase in refining capacity, the Company recorded a strong revenue
growth of 53% at ` 970680.000 Millions up from Rs.634280.000 Millions in the
previous financial year. The Current Price Gross Refining Margin (CPGRM) for
the refinery business also registered a quantum jump at USD7.96 per barrel compared
to USD4.23 per barrel for the previous financial year. The Earning before
Interest, Depreciation, Tax and Amortization (EBIDTA) for the current financial
year increased by 74% to Rs.36510.000 Millions From Rs.21010.000 Millions for
previous financial year. This is mainly on account of increase in the sales
volume arising due to expansion of Refining capacity from 10.5 MMTPA to 20
MMTPA, higher gross refining margins, increase in other operating income which
is partially offset by MTM provision on commodity hedging. Further in the
previous year, even though the income arising out of defeasement of sales tax
incentive amounting to Rs.778.25 was part of EBITDA, this was reversed and
shown as exceptional item. For the financial year ended March 31, 2013, the
loss after tax decreased marginally due to higher EBITDA as explained above
offset by increase in interest and depreciation expenses post completion of
Refinery expansion, which was treated as part of expenditure during
construction in the previous year. Exceptional items for the previous year
mainly represents reversal of sales tax incentive income post litigation of
this matter and provision for impact towards exit from Corporate Debt
Restructuring mechanism (CDR exit) whereas in the current year it only
represents the additional impact on CDR exit. The Company reported net loss
after tax (after exceptional items) for current financial year at Rs.11800.000
Millions as against previous year figure of Rs.12850.000 Millions. In the
absence of profits during the financial year, the Board has not recommended any
dividend for the year.
The Sales tax
matter has been resolved and concluded with the final judgment of Supreme Court
on September 13, 2012. The Company is required to pay balance sales tax liability
in two years with 10% interest. The Company has successfully tied up for term
loan facility with a Bank to mitigate the liquidity risk of payment of sales
tax liability.
The Company’s exit
from CDR mechanism is another crucial landmark achieved by the Company towards
the end of the financial year.
UNAUDITED FINANCIAL RESULTS FOR THE THREE QUARTER AND NINE MONTH ENDED 31 DECEMBER 2013
(Rs. In Millions)
|
Particulars |
Quarter Ended ( Unaudited) |
Nine Month Ended ( Unaudited) |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
1.
Income from operations |
|
|
|
|
a) Net sales/ Income from operation (net of excise duty) |
250890.000 |
256950.000 |
731420.000 |
|
b) Other operating income |
420.000 |
410.000 |
1860.000 |
|
Total
income from Operations(net) |
251310.000 |
2573600.000 |
733280.000 |
|
2.Expenditure |
|
|
|
|
a) Cost of raw materials consumed |
222170.000 |
237670.000 |
661780.000 |
|
b) Purchase of traded goods |
3350.000 |
2880.000 |
9330.000 |
|
c) (Increase) / Decrease in stock of finished goods and work-in-progress |
9260.000 |
(7230.000) |
1900.000 |
|
d)
Consumption of fuel |
1620.000 |
1880.000 |
5740.000 |
|
e) Employee benefits expenses |
580.000 |
590.000 |
1740.000 |
|
f) Selling and marketing expenses |
1850.000 |
1880.000 |
5480.000 |
|
g) Depreciation / Amortisation |
3380.000 |
3380.000 |
10080.000 |
|
h) Other expenses |
4160.000 |
3740.000 |
12070.00 |
|
Total expenses |
246370.000 |
244790.000 |
708120.000 |
|
3. Profit from operations before other income and
financial costs |
4940.000 |
12570.000 |
25160.000 |
|
4. Other income |
2240.000 |
2110.000 |
6660.000 |
|
5. Profit from ordinary activities before finance costs |
7180.000 |
14680.000 |
31820.000 |
|
6. Finance costs |
8120.000 |
7660.000 |
25240.000 |
|
7. Net profit/(loss) from ordinary activities
after finance costs but before exceptional items |
(940.000) |
7020.000 |
6580.000 |
|
8. Foreign exchange loss / (gain) |
(1460.000) |
7330.000 |
15400.000 |
|
9. Exceptional
items |
0.000 |
0.000 |
0.000 |
|
10. Profit /
(Loss) from ordinary activities before tax |
520.000 |
(710.000) |
(8820.000) |
|
11.Tax expenses |
0.000 |
0.000 |
0.000 |
|
12.Net
Profit / (Loss) from ordinary activities after tax |
520.000 |
(710.000) |
(8820.000) |
|
13.Paid-up equity share capital (Nominal value Re. 1/- per share) |
14500.000 |
13660.000 |
0.000 |
|
14. Reserve excluding
Revaluation Reserves as per balance sheet of previous accounting year |
|
|
|
|
15. Earnings per
share before and after extraordinary items |
|
|
|
|
-Basic (Not Annualised)* |
0.38 |
(0.52) |
(6.43) |
|
- Diluted (Not Annualised) |
0.38 |
(0.52) |
(6.43) |
|
Particulars |
Quarter Ended ( Unaudited) |
Nine Month Ended ( Unaudited) |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
A. Particulars of shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of shares |
137123373 |
137123373 |
137123373 |
|
- Percentage of shareholding excluding depositary
share |
27.53% |
33.11% |
27.53% |
|
- Percentage of shareholding including depositary share |
9.46% |
10.04% |
9.46% |
|
2. Promoters and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
185338627 |
185338627 |
185338627 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
14.12% |
15.09% |
14.12% |
|
Percentage of shares (as a % of total share capital of the
company) |
12.79% |
13.57% |
12.79% |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
1127054900 |
1043205086 |
1127054900 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
85.88% |
84.91 |
85.88% |
|
Percentage of shares (as a % of total share capital of the
company) |
77.75% |
76.39% |
77.75% |
|
|
|
|
|
|
B.
Investor Complaints |
|
||
|
Pending at the beginning of the quarter |
Nil |
||
|
Receiving during the quarter |
58 |
||
|
Disposed of during the quarter |
58 |
||
|
Remaining unreserved at the end of the quarter |
Nil |
||
UNAUDITED SEGMENT WIE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Particulars |
Quarter
Ended (
Unaudited) |
Nine
Month Ended (
Unaudited) |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
1.
Segment Revenue |
|
|
|
|
Refining
including expansion and marketing |
251820.000 |
257930.000 |
735000.000 |
|
Exploration and production activities |
30.000 |
20.000 |
90.000 |
|
Unallocated |
100.000 |
100.000 |
270.000 |
|
Total |
251950.000 |
258050.000 |
735360.000 |
|
Less : Inter-segment revenue |
0.000 |
0.000 |
0.000 |
|
Total
Segment revenue |
251950.000 |
258050.000 |
735360.000 |
|
|
|
|
|
|
2. Segment Results Profit / (Loss) before
interest and tax |
|
|
|
|
Refining including expansion and marketing |
5540.000 |
4310.000 |
7730.000 |
|
Exploration and production activities |
30.000 |
(10.000) |
10.000 |
|
Unallocated |
(630.000) |
(310.000) |
(1550.000) |
|
Total |
4940.000 |
3990.000 |
6190.000 |
|
Less:
Interest expenses |
6020.000 |
6120.000 |
19590.000 |
|
Add :
Interest income |
1570.000 |
1400.000 |
4510.000 |
|
Add :
Profit on sale of Investments |
30.000 |
20.000 |
70.000 |
|
Add : Credit balances written back |
0.000 |
0.000 |
00.000 |
|
Total Profit
/ (Loss) before Income tax |
520.000 |
(710.000) |
(8820.000) |
|
|
|
|
|
|
3. Capital employed (Segment assets - Segment
liabilities) |
|
|
|
|
Refining including expansion and marketing |
224870.000 |
261080.000 |
224870.000 |
|
Exploration and production activities |
27190.000 |
25710.000 |
27190.000 |
|
Unallocated |
5340.000 |
6010.000 |
5340.000 |
|
Total Capital employed |
257400.000 |
292800.000 |
257400.000 |
Notes:-
1. The above results have been reviewed by the Audit
and Governance Committee and approved by the Board of Directors at their
meetings held on February 7, 2014 and February 10, 2014 respectively at Mumbai.
2.
The company achieved
highest ever throughput of 4.86 MMT (Million Metric Tonnes) of crude during the
quarter. The throughput for various periods are as under:
|
Particulars |
Quarter
Ended (
Unaudited) |
Nine
Month Ended (
Unaudited) |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
|
|
|
|
Throughput
(in MMT) |
4.86 |
5.18 |
15.18 |
3.
The Company on December 09, 2013, issued and
allotted 83849814 equity shares of Rs.10/- each (face value) fully paid-up, to
a promoter company on their exercising the option to convert the entire holding
of Foreign Currency Compulsory Convertible Bonds (FCCCBs) aggregating to USD
262 million (Rs.12246.500 Millions) in to equity shares as per terms of issue which
is detailed below :i. Issue and allotment of 3,88,33,443 equity shares of
Rs.10/-each at a price of Rs.138 per share, on conversion of 1,15 0F CCCBs of
USD 100,000 each aggregating to USD 115 million which were issued on June 15,
2010 and ii. Issue and allotment of 4,50,16,371 equity shares of Rs.10/-each at
a price of` Rs.53 per share, on conversion of 1,47 0F CCCBs of USD 100,000 each
aggregating to USD 147 million which were issued on July 09, 2010. The
difference between the amounts outstanding against such FCCCBs as on the date
of conversion (including the exchange fluctuation on restatement of such FCCCBs
upto the date it became compulsory convertible of Rs.1153.500 Millions) and the
face value of the shares issued of Rs.838.500 Millions crores has been
transferred to securities premium account.
4. The Company has not recognized Deferred Tax Assets
(net) of Rs.22320.000 Millions as on December 31, 2013 on unabsorbed
depreciation / loss in view of the concept of “Virtual Certainty Supported by
Convincing Evidence” as required under AS 22- “Accounting for Taxes on
Income".
5. Previous periods' figures have been regrouped /
rearranged, wherever considered necessary.
INDEX OF CHARGES:
|
Sr .No |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10433008 |
10/06/2013 |
5,400,000,000.00
|
IDBI TRUSTEESHIP
SERVICES LIMITED |
Asian Building, Ground
Floor, 17, R.Kamani Marg, Ballard Estate, Mumbai, Maharashtra - 400001, India |
B77947000
|
|
2 |
10423132 |
01/04/2013 * |
50,000,000,000.00
|
IDBI Trusteeship
Services Limited |
Asian Bldg., Ground
Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai, Maharashtra - 400001,
India |
B74604042
|
|
3 |
10420270 |
26/03/2013 |
14,893,725,000.00
|
IDBI Bank
Limited |
IDBI TOWERWTC
COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA |
B73342115
|
|
4 |
10419333 |
20/03/2013 |
5,000,000,000.00
|
YES BANK LIMITED |
9TH FLOOR, NEHRU
CENTRE, DISCOVERY OF INDIA, DR. ANNIE BESANT ROAD, WORLI, MUMBAI, Maharashtra
- 400018, INDIA |
B73062960
|
|
5 |
10402887 |
31/01/2013 |
2,000,000,000.00
|
Central Bank of
India |
1st Floor, MMO
Building, Fort, Mumbai, Mumbai, Ma |
B68038629
|
|
6 |
10393843 |
06/12/2012 |
1,550,000,000.00
|
IDBI Bank
Limited |
IDBI TOWER WTC COMPLEX,
CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA |
B64825672
|
|
7 |
10374025 |
21/03/2013 * |
5,733,300,000.00
|
IDBI Trusteeship
Services Limited |
Asian Bldg.,
Ground Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai, Maharashtra - 400001,
India |
B73119083
|
|
8 |
10372403 |
31/07/2012 |
11,330,000,000.00
|
IDBI Trusteeship
Services Limited |
Asian Bldg.,
Ground Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai, Maharashtra -
400001, India |
B56340177
|
|
9 |
10273767 |
30/07/2012 * |
10,000,000,000.00
|
IDBI Trusteeship
Services Limited |
Asian Bldg.,
Ground Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai, Maharashtra -
400001, India |
B44704351
|
|
10 |
10267235 |
20/01/2011 |
5,000,000,000.00
|
ICICI BANK LIMITED |
LANDMARKRACE
COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA |
B05111711 |
|
11 |
10220168
|
15/03/2011
* |
42,000,000,000.00
|
IDBI Trusteeship
Services Limited |
Asian Bldg., Ground
Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai, Maharashtra - 400001,
India |
B10003192
|
|
12 |
10197118
|
06/01/2010
|
16,000,000,000.00
|
IDBI Trusteeship
Services Limited |
Asian Bldg.,
Ground Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai, Maharashtra -
400001, India |
A77489946
|
|
13 |
10176888
|
24/09/2009
|
6,000,000,000.00
|
IDBI
Bank Limited |
IDBI
Towerwtc Complex, Cuffe Parade, Mumbai, Maharashtra - 400005, India |
A70241781
|
|
14 |
10117341
|
25/11/2010
* |
20,000,000,000.00
|
IDBI Trusteeship
Services Limited |
Asian Bldg.,
Ground Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai, Maharashtra -
400001, India |
B01631753
|
|
15 |
10114844
|
11/06/2008
|
20,000,000,000.00
|
IDBI Trusteeship
Services Limited |
Asian Bldg.,
Ground Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai, Maharashtra -
400001, India |
A42864298
|
|
16 |
10108571
|
14/03/2008
|
4,250,000,000.00
|
IDBI Trusteeship
Services Limited |
Asian Bldg.,
Ground Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai, Maharashtra -
400001, India |
A40755902
|
|
17 |
10108573
|
14/03/2008
|
4,250,000,000.00
|
IDBI Trusteeship
Services Limited |
Asian Bldg., Ground
Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai, Maharashtra - 400001,
India |
A40756892
|
|
18 |
10078490
|
26/10/2007
|
4,590,000,000.00
|
ICICI
BANK LIMITED |
LANDMARKRACE
COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA |
A28514198
|
|
19 |
10101924
|
26/10/2007
|
187,400,000.00
|
UNITED
INDIA INSURANCE CO LIMITED(01.01.73) |
24,
WHITE ROAD, P.B.NO.676,MADRAS-14., MADRAS-14., Tamil Nadu - 600014, INDIA |
A34140442
|
|
20 |
10058990
|
07/05/2013
* |
150,150,000,000.00
|
IDBI Trusteeship
Services Limited |
Asian Bldg.,
Ground Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai, Maharashtra -
400001, India |
B75789222
|
|
21 |
10042313
|
15/02/2007
|
2,390,000,000.00
|
Punjab
National Bank |
1st Floor,
Raheja Chambers, Free Press Marg, Nariman Point, Mumbai, Maharashtra -
400021, INDIA |
A12555579
|
|
22 |
10042330
|
15/02/2007
|
1,500,000,000.00
|
Indian
Bank |
Mittal
Tower, B - Wing, GF 210, Nariman Point, Mumbai, Maharashtra - 400021, INDIA |
A12596672
|
|
23 |
10043193
|
15/02/2007
|
500,000,000.00
|
Oriental
Bank of Commerce |
Corporate
Group Finance Branch, 18th Floor, Maker Tower 'E', Cuffe Parade, Mumbai,
Maharashtra - 400005, INDIA |
A12239208
|
|
24 |
10046037
|
15/02/2007
|
2,000,000,000.00
|
Bank
of Baroda |
Corporate
Finance Services Branch, 1st floor, Bank of Baroda Bldg, Ballard Pier,
Mumbai, Maharashtra - 400001, INDIA |
A13213434
|
|
25 |
10029557
|
21/12/2006
|
800,000,000.00
|
HOUSING
DEVELOPMENT FINANCE CORPORATION LIMITED |
RAMON
HOUSE 169 BACKBAY RECLAMATION, HT PAREKH MARG, MUMBAI, Maharashtra - 400020,
INDIA |
A08375420
|
|
26 |
10021874
|
25/09/2006
|
4,000,000,000.00
|
Housing
and Urban Development Corpn Limited |
Hudco
Bhawan, India, Habitat Center,, Lodhi Road, New Delhi, Delhi - 110003, India |
A05552021
|
|
27 |
10022317
|
25/09/2006
|
1,500,000,000.00
|
ORIENTAL
BANK OF COMMERCE LIMITED |
E-Block,
Harsha Bhavan, Connaught Place, New Delhi, Delhi - 110001, INDIA |
A05722830
|
|
28 |
10023083
|
18/07/2013
* |
20,518,500,000.00
|
IDBI
TRUSTEESHIP SERVICES LIMITED |
Asian
Bldg., Ground Floor, 17, R. Kamani Marg, Ballard Estate,, MUMBAI, Maharashtra
- 400001, INDIA |
B80457096
|
|
29 |
10023320
|
25/09/2006
|
2,000,000,000.00
|
INDIAN
OVERSEAS BANK |
Veer
Nariman Road, Fort, Mumbai, Maharashtra - 400023, INDIA |
A05939236
|
|
30 |
10023738
|
25/09/2006
|
2,000,000,000.00
|
Syndicate
Bank |
Industrial
Finance Branch, Finance Branch, 3rd floor, 10, Homji Street, Mumbai,
Maharashtra - 400023, INDIA |
A06053326
|
|
31 |
90103891
|
29/05/2006
* |
846,600,000.00
|
CENTRAL
BANK OF INDIA |
Corporate
Finance Branch, 1st Floor, Mumbai Main Office, Fort, Mumbai, Maharashtra -
400023, India |
- |
|
32 |
90103376
|
18/01/2005
* |
2,000,000,000.00
|
Industrial
Devlopment Bank of India Limited |
IDBI
Tower; Cuffe Parade, Mumbai, Maharashtra - 400005, India |
- |
|
33 |
90103888
|
18/01/2005
* |
3,261,100,000.00
|
Life
Indsurance Corportion of India |
Jeevan
Bima Marg, Mumbai, Maharashtra - 400021, India |
- |
|
34 |
80003137
|
18/01/2005
|
12,576,600,000.00
|
ICICI
BANK LIMITED |
BKC,
Mumbai, Maharashtra - 400051, India |
- |
|
35 |
80003138
|
18/01/2005
|
804,300,000.00
|
IFCI
LIMITED |
Nehru
Place, New Delhi, Delhi - 110019, India |
- |
|
36 |
80003139
|
18/01/2005
|
7,694,300,000.00
|
IDBI
BANK LIMITED |
Cuff
Parade, Mumbai, Maharashtra - 400005, India |
- |
|
37 |
80003140
|
18/01/2005
|
1,207,000,000.00
|
IDBI |
CUFFE
PARADE, MUMBAI, Maharashtra - 400020, INDIA |
- |
|
38 |
80003141
|
18/01/2005
|
254,100,000.00
|
GIC |
Churchgate,
Mumbai, Maharashtra - 400020, India |
- |
|
39 |
80003142
|
18/01/2005
|
266,000,000.00
|
NEW
INDIA ASSURANCE CO LIMITED |
M G
Road, Mumbai, Maharashtra - 400023, India |
- |
|
40 |
80003143
|
18/01/2005
|
153,900,000.00
|
NATIONAL
INS CO LIMITED |
Middleton
St, Kolkata, West Bengal - 700001, India |
- |
|
41 |
80003144
|
18/01/2005
|
158,400,000.00
|
THE
ORIENTAL INS CO LIMITED |
ASAF
ALI ROAD, NEW DELHI, Delhi - 110002, INDIA |
- |
|
42 |
80003145
|
07/05/2013
* |
68,714,100,000.00
|
IDBI
TRUSTEESHIP SERVICES LIMITED |
Asian
Bldg., Ground Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai, Maharashtra
- 400001, India |
B76378769
|
|
43 |
90103373
|
13/12/2004
* |
22,473,000,000.00
|
IDBI
TRUSTEESHIP SERVICES LIMITED |
10th
Floor Nariman Bhavan; 227 Vinay K Shah Marg, Nariman Point, Mumbai,
Maharashtra - 400021, India |
- |
|
44 |
90103881
|
18/01/2005
* |
490,000,000.00
|
LIFE
INDSURANCE CORPORTION OF INDIA |
Jeevan
Bima Marg, Mumbai, Maharashtra - 400021, India |
- |
|
45 |
90103242
|
18/01/2005
* |
2,460,000,000.00
|
LIFE
INSURANCE CORPORTION OF INDIA |
Yagakshema
; Jeevan Bima Marg, Mumbai, Maharashtra - 400021, India |
- |
|
46 |
80003135
|
31/03/2001
|
8,570,000,000.00
|
ICICI
LIMITED |
Bkc,
Mumbai, Maharashtra - 400051, India |
- |
|
47 |
90103235
|
29/05/2006
* |
56,500,000.00
|
CENTRAL
BANK OF INDIA |
Corporate
Finance Branch, 1st Floor,, Mumbai Main Office, Fort, Mumbai, Maharashtra - 400023,
India |
- |
|
48 |
90103198
|
18/01/2005
* |
70,000,000.00
|
BANK
OF MAHARASHTRA |
Lokmangal
; 1501 Shivajinagar, Pune, Maharashtra - 411005, India |
- |
|
49 |
90103197
|
18/01/2005
* |
2,400,000,000.00
|
IFCI
LIMITED |
IFCI
Tower; 61; Nehru Place, New Delhi, Delhi - 110019, India |
- |
|
50 |
80003134
|
31/12/1999
|
70,000,000.00
|
ICICI
Limited |
BKC,
Mumbai, Maharashtra - 400051, India |
- |
|
51 |
80003133
|
31/03/1999
|
5,860,000,000.00
|
ICICI
Limited |
BKC,
Mumbai, Maharashtra - 400051, India |
- |
|
52 |
90102807
|
29/05/2006
* |
250,000,000.00
|
CENTRAL
BANK OF INDIA |
Corporate
Finance Branch, 1st Floor,, Mumbai Main |
- |
|
53 |
90103477
|
09/08/2005
* |
250,000,000.00
|
CENTRAL
BANK OF INDIA |
Corporate
Finance Branch, Mumbai, Maharashtra - 400023, India |
- |
|
54 |
80003131
|
26/02/1998
|
1,485,000,000.00
|
PNB |
Nariman
Point, Mumbai, Maharashtra - 400021, India |
- |
|
55 |
80003130
|
10/02/1998
|
500,000,000.00
|
CENTRAL
BANK OF INDIA |
Fort,
Mumbai, Maharashtra - 400023, India |
- |
|
56 |
90103111
|
26/09/2005
* |
2,128,260,000.00
|
Industrial
Credit and Investment Corportion of India |
163;
Backbay Reclamation, Bombay, Maharashtra - 400020, India |
- |
|
57 |
90103108
|
18/01/2005
* |
1,850,000,000.00
|
Industrial
Credit and Investment Corportion of India |
IFCI
TOWER;61 NEHRU PLACE, NEW DELHI, Delhi - 1100 19, INDIA |
- |
|
58 |
90103103
|
18/01/2005
* |
2,175,000,000.00
|
INDUSTRIAL
DEVLOPMENT BANK OF INDIA LIMITED |
IDBI
Tower; Cuffe Parade, Mumbai, Maharashtra - 40 0005, India |
- |
|
59 |
90103098
|
18/01/2005
* |
1,000,000,000.00
|
INDUSTRIAL
DEVLOPMENT BANK OF INDIA |
IDBI
Tower; Cuffe Parade, Mumbai, Maharashtra - 400005, India |
- |
|
60 |
90103096
|
18/01/2005
* |
600,000,000.00
|
IFCI
LIMITED |
IFCI
Tower; 61; Nehru Place, New Delhi, Delhi - 11 0019, India |
- |
|
61 |
90103094
|
09/08/2005
* |
700,000,000.00
|
ALLAHABAD
BANK |
Industrial
Finance Branch, Apeejay House, Mumbai, |
- |
|
62 |
90103063
|
18/01/2005
* |
500,000,000.00
|
National
Insurance Corportion pf India |
3; Middleton
Street, Kolkata, West Bengal - 700001, India |
- |
|
63 |
90102791
|
28/12/2004
* |
2,000,000,000.00
|
Life
Insurance Corportion of India |
Jeevan
Bima Marg, Mumbai, Maharashtra - 400021, India |
- |
|
64 |
90103049
|
18/01/2005
* |
2,000,000,000.00
|
Life
Insurance Corportion of India |
Jeevan
Bima Marg, Mumbai, Maharashtra - 400021, India |
- |
|
65 |
90103046
|
18/01/2005
* |
750,000,000.00
|
Industrial
Credit and Investment Corportion of India |
IFCI
Tower;61 Nehru Place, New Delhi, Delhi - 110019, India |
- |
|
67 |
90102789
|
18/01/2005
* |
200,000,000.00
|
Industrial
Credit and Investment Corportion of India |
163;
Backway Reclation, Mumbai, Maharashtra - 4000 20, India |
- |
|
68 |
90103041
|
26/09/2005
* |
500,000,000.00
|
Industrial
Credit and Investment Corportion of India |
163;
Backway Reclation, Mumbai, Maharashtra - 4000 20, India |
- |
|
69 |
90103038
|
26/09/2005
* |
2,500,000,000.00
|
Industrial
Credit and Investment Corportion of India |
163;
Backway Reclation, Mumbai, Maharashtra - 4000 20, India |
- |
|
70 |
90103012
|
17/04/2007
* |
500,000,000.00
|
General
Insurance Corporation of India |
Suraksha170
J Tata Road, Churchgate, Mumbai, Maharashtra - 400020, India |
- |
|
71 |
80003116
|
30/06/2010
* |
5,682,000,000.00
|
IDBI Trusteeship
Services Limited |
Asian Bldg.,
Ground Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai, Maharashtra - 400001,
India |
A90058231
|
* Date of charge modification
FIXED ASSETS:
· Land
· Building
· Plant and machinery
· Producing properties
· Furniture and fixtures
· Office equipment
· Vehicles
· Aircraft
· Software and licenses
NEWS:
HOLD ESSAR OIL, ADVISES PRITESH MEHTA
Pritesh Mehta of IIFL advises holding Essar Oil with a stoploss of Rs 54.
Pritesh Mehta of IIFL told CNBC-TV18, "For Essar Oil, 2013 has proved to
be a disaster. From level of Rs 96, the stock has collapsed to Rs 46 and from
last three months, the stock has been consolidating in a narrow range between
Rs 49 and Rs 56."
"Even if it breakouts from this range on the upside, I am not expecting much of the upside beyond Rs 62-63. So one needs to hold on with tight stoploss of Rs 54 and below that one should exit.
“At 12:13 hrs Essar Oil was quoting at Rs 54.30, up Rs 0.75, or 1.40 percent.
The share touched its 52-week high Rs 96.15 and 52-week low Rs 46.05 on 04 February, 2013 and 06 August, 2013, respectively.
PRESS RELEASE
ONGC,
ESSAR OIL SHORTLISTED TO BID FOR IRAQ'S NASSIRIYA FIELD
September
03, 2013
Two firms were among 5 companies that Iraq added to previously
shortlisted 7 global energy giants for the development of the Nassiriya oil
field
State-owned
Oil and Natural Gas Corp (ONGC) and Essar Oil have been shortlisted to bid for
development of Iraq's $4.4 billion Nassiriya oil field and the construction of
a new 300,000 barrels per day refinery.
The
two firms were among five companies that Iraq added to previously shortlisted 7
global energy giants for the development of the Nassiriya oil field and the
construction of a dedicated export refinery as one package.
Besides ONGC and Essar, the new bidders added are Russia's Rosneft, Maurel and
Prom of France, and South Korea's GS Engineering and Construction, according to
Iraq's Oil Ministry.
Iraq
had in March shortlised seven firms including Reliance Industries to bid for
the project. Others shortlisted then included French energy giant Total,
Russia's Lukoil, CNPC of China and American firm Brown Energy.
Russia's
Zarubezhneft and JGC and Tonen General of Japan were the other two shortlisted
in March from 14 companies that expressed interest in taking up the
multi-billion dollar project.
All
the 12 qualified firms will now be invited to review data packages and discuss
contract terms. Iraq intends to award the project by year end.
The
OPEC nation has three main refineries - Baiji, Daura and Basra -- with a total
capacity of around 567,000 barrels per day (bpd). It wants to increase the
refining capacity to 750,000 bpd through improvements in existing plants.
It also plans four new refineries in Karbala, Kirkuk, Missan and in Nassiriya.
"The
Al-Nasiriya Integrated Project contemplates the development of the 4-plus
billion barrel Nasiriya oil field in Thi-Qar province together with the
construction and operation of a new 300,000 bpd refinery," Iraq's
Petroleum Contracts and Licensing Directorate (PCLD), part of the Ministry of
Oil, said.
The
international engineering and construction firm Foster Wheeler recently
completed a Front End Engineering and Design (FEED) study for the refinery.
The
Nasiriya project marks re-entry of RIL into Iraq.
The
company's Dubai-based arm Reliance Exploration and Production DMCC had in 2007
taken a 100 per cent stake in the Rovi and Sarta blocks in Kurdistan.
Baghdad
termed the award of exploration contract to RIL and other firms by the
autonomous Kurdistan region as illegal and threatened to blacklist any firm
that dealt with the Kurds.
A
year after the blacklisting threat, RIL did not apply for being shortlisted for
development of oil fields in Iraq.
Thereafter,
it did not figure in the list of companies applying to bid for successive
licensing rounds of Iraq.
RIL
finally got rid of the Kurd blocks in July last year when it sold its stake to
Chevron Corp for an undisclosed sum.
ESSAR OIL IN RED ON RUPEE
VOLATILITY
August 15, 2013
Board appoints Prashant Ruia as Non-Executive Chairman
Negative forex fluctuations arising out of 10% rupee depreciation during the first quarter of this fiscal has lead to Essar Oil reporting a net loss of Rs 8630.000 Millions.
Net loss has however, narrowed 43% as compared to the first quarter last fiscal when Essar Oil reported a net loss of Rs 15180.000 Millions. The company had reported net profit of Rs 2000.000 Millions during the fourth quarter of last fiscal.
“The quarter was marked by rupee volatility, which has impacted our profitability due to mark-to-market provisions. Due to prudent risk management policy followed by us, there are no cash losses," said Suresh Jain, CFO, Essar Oil.
A press statement from the company said it follows a very prudent risk management policy to hedge all its risks against currency fluctuations. As a result, the forex variations are mostly of mark-to-market nature, which is recoverable through sales or gross refining margin (GRM) in next quarters and hence have cash and earning neutral impact during the full financial year.
Essar Oil posted a 12% increase in revenue at Rs 247210.000 Millions against Rs 221090.000 Millions during in the correspoding previous quarter. The company's GRM for the quarter stood at $7 per barrel against $4.69 per barrel during April-June quarter of 2012.
For the quarter, the refinery processed 5.14 metric million tonnes (MMT) of crude, up 15% against the corresponding last quarter. The refinery continues to function at over its nameplate capacity of 20 MMTPA for the last four consecutive quarters with all units stabilized. During the quarter, the refinery operated at 103% of its capacity. Share of ultra heavy crude in refinery’s crude diet rose to 56% in the reporting quarter from 48% in the same period last year.
“The refinery has demonstrated excellent operating performance with a very strong focus on safety and has consistently outperformed the targeted benchmark IEA margins. Going forward, we are looking to further strengthen our retail business as the deregulation of diesel is eventually in sight based on regular increase in the retail prices," said LK Gupta, Managing Director and CEO, Essar Oil.
"We continue on our path to dollarize our debt and have converted rupee term loans into equivalent foreign currency debt of $340 million through ECBs /Swaps, taking our total dollarized debt to $821 million, in line with RBI approval. Besides providing interest saving, this also enhances our liquidity position,” Jain added.
ESSAR OIL Q1 REVENUE UP 12% Y-O-Y AT RS. 247210.000 MILLIONS; CP GRM UP
49% Y-O-Y TO $7.01/BBL
AUGUST 14, 2013
Key highlights for Q1FY14
·
EBITDA Rs11060.000 Millions, from
negative Rs.1780.000 Millions in Q1FY13
·
Current Price Gross Refining Margin
rose 49% to $7.01 / bbl vs $4.69 / bbl in Q1 FY13
·
Dollarisation of debt program
accelerate with $340 million further added through ECBs and swaps; $821 million
worth of rupee debt converted till date
·
Forex fluctuation of Rs.9130.000
Millions largely cash and earnings neutral due to prudent risk management
policy
·
Gross revenues up 12% to Rs.247210.000
Millions from Rs.221090.000 Millions in Q1 FY13
·
Throughput up 15% to 5.14 MMT, vs 4.48
MMT in Q1 FY13
·
Refinery continues its high safety
track record with 1,916 LTI free days and 1,501 days fire free days
Mumbai: Essar Oil, India’s second largest private refiner and part of UK-listed Essar Energy plc, today reported a 12% increase in revenue to Rs.247210.000 Millions for Q1 FY14, compared to Rs.221090.000 Millions reported in Q1FY13, on the back of 15% improvement of throughput, which stood at 5.14 MMT during the quarter, against 4.48 MMT during the same period in FY13.
The EBITDA was at Rs.11060.000 Millions compared to negative Rs.1780.000
Millions in Q1 FY13. The Current Price Gross Refining Margin stood at $7.01 /
bbl in Q1 FY14 up 49% over $4.69 / bbl in Q1 FY13, reflecting the higher
complexity benefits post completion of expansion and optimization projects.
The company reported a net loss of Rs.8630.000 Millions during the quarter, mainly due to negative forex fluctuations arising out of 10% rupee depreciation during the quarter. Essar Oil follows a very prudent risk management policy to hedge all its risks against currency fluctuations. As a result, the forex variations are mostly of mark-to-market nature, which is recoverable through sales or GRM in next quarters and hence have cash and earning neutral impact during the full financial year.
For the quarter, the refinery processed 5.14 metric million tonnes (MMT) of
crude, up 15% in Q1 FY14 over Q1 FY13. The refinery continues to function at
over its nameplate capacity of 20 MMTPA for the last four consecutive quarters
with all units stabilized. During the quarter, the refinery operated at 103% of
its capacity.
Share of ultra heavy crude in refinery’s crude diet rose to 56% in the
reporting quarter from 48% in the same period last year. Overall, the refinery
processed 92% of heavy and ultra heavy crude in Q1 FY14.
Production of valuable middle and light distillates share in the overall crude
slate improved to 84% in Q1 FY14, from 82% in Q1 FY13 with the capability to
produce Euro IV and V grade products.
Talking on the results, Mr L K Gupta, Managing Director and CEO, Essar
Oil,said, “The refinery has demonstrated excellent operating performance with a
very strong focus on safety and has consistently outperformed the targeted
benchmark IEA margins. Going forward, we are looking to further strengthen our
retail business as the deregulation of diesel is eventually in sight based on
regular increase in the retail prices.”
Mr Suresh Jain, CFO, Essar Oil, said, “The quarter was marked by rupee
volatility, which has impacted our profitability due to mark-to-market
provisions. Due to prudent risk management policy followed by us, there are no
cash losses. We continue on our path to dollarize our debt and have converted
rupee term loans into equivalent foreign currency debt of $340 million through
ECBs / swaps, taking our total dollarized debt to $821 million, in line with
RBI approval. Besides providing interest saving, this also enhances our
liquidity position.”
Optima Plus project
Essar Oil is undertaking a series of low capex and short gestation optimization
projects across its refinery and marketing value chain under the banner of
Optima Plus, which upon completion would provide a GRM uplift of about $1-1.5
per barrel over a period of next three years. These projects include setting up
one more hydrogen manufacturing unit and a conversion of existing VGO into more
valuable distillates.
Quarterly financial performance: Key indicators in Rs
Millions)
|
|
Q1 FY14 |
Q1 FY13 |
% Change |
|
Throughput (in MMT) |
5.14 |
4.48 |
15 |
|
Gross Revenue (in Rs Millions) |
247210.000 |
221090.000 |
120.000 |
|
EBIDTA (in Rs Millions) |
11060.0000 |
(1780.000) |
- |
|
Profit After Tax (in Rs Millions) |
(8630.000) |
(15180.000) |
|
|
CP GRM (in $/bbl) |
7.01 |
4.69 |
49 |
Marketing operations
Essar Oil continues to focus on the domestic market, with domestic sales
contributing about 70% to its revenues during the quarter. The company has re-entered
the bulk diesel market, which recently was deregulated.
The recent move of government towards full deregulation of auto fuels will create value for our retail business. The company sees great potential in retail for value creation as the country moves towards deregulation of diesel. Essar Oil has about 1400 retail outlets across the nation, with another 200 more in various stages of commissioning, and is now considering further expansion plans in view of reasonable certainty of deregulation of diesel in future
With two ALPG and CNG pumps opened during the quarter, 32 Essar Oil pumps now
offer multi fuel options to customers.
Exploration and Production (E and P)
At Essar Oil’s flagship Raniganj CBM block, current gas production is around
100,000 standard cubic metres per day (scm/d). The company has completed
drilling 165 wells. Stage III environment clearance for 618 wells has been
received. Production is expected to reach 3 million scm/d by next year.
With the new gas price regime kicking in from April 01, 2014, gas price is expected to be much better from current $4.2 / mmbtu. We see this as a welcome reform by the GOI, which would boost investments in the E&P sector followed by ramp up in production, curb expensive imports, promote exploration and increase government revenues. This will also be positive for E&P companies as their profitability increases and also the new gas fields will become viable.
Essar Oil board today approved the appointment of Mr Prashant Ruia as the Non Executive Chairman of the company, taking over from Mr Shashi Ruia, who steps down. Mr Prashant Ruia, 44, is also the Chairman of Essar Energy Plc, the parent company of Essar Oil.
ESSAR OIL SHOWS INTEREST IN SETTING UP PROJECT IN BENGAL
has shown interest in setting up its third coal-bed methane (CBM) project in the Asansol-Ranigunj belt in West Bengal, state's industry minister Partha Chatterjee said today. The company would invest Rs 5,2000.000 Millions for the project, Chatterjee told reporters here.
He asked company representatives who met him to furnish a proposal and submit it to the government. Chatterjee said Saroj Poddar of Texmaco had also called on him during the day for a food processing unit at Sankrail in Howrah. He said cement major ACC was ready with its plant in the state and it was expected to be inaugurated during the month.
SUPREME COURT DECIDES ON ESSAR OIL GUJARAT SALES TAX MATTER
Honourable Supreme Court passed a judgement in the Gujarat Sales Tax case, directing Essar Oil to pay the balance sales tax dues in installments over two years. The balance dues of Rs 51650.000 Millions are now payable in eight quarterly installments beginning January 2, 2013.
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 records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.07 |
|
|
1 |
Rs.103.61 |
|
Euro |
1 |
Rs.85.03 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
0 |
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
42 |
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.