MIRA
INFORM REPORT
|
Report Date : |
14.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
HINDUSTAN OIL EXPLORATION COMPANY LIMITED |
|
|
|
|
Registered
Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
11.06.1996 |
|
|
|
|
Com. Reg. No.: |
04-029880 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 1305.093 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L11100GJ1996PLC029880 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BRDH00508E / BRDH00220D / BRDH00219C / BRDH00218B / BRDH00163C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACH1407P |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged in of “Hydrocarbons and other incidental services”. |
|
|
|
|
No. of Employees
: |
Information Decline by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 26000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record. The company has incurred loss from its operational activities during
the financial year 2013. However, the rating also takes into account HOEC’s diversified mix of
assets in proven geological areas and favorable demand prospects for oil and
gas, which are expected to support the company going forward. Trade relations are fair. Business is active. Payment terms are
reported to be slow but correct. The company can be considered for business dealings at usual trade
terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
State-run banks hired nearly
300000 personnel including more than 94000 officers in the last four years,
according to the Indian Banks Association. A study by trade lobby Assocham in
September 2013 indicated that banks would need 800000 people in the next six
years. It estimated that state-run lenders alone would hire 50000 people in
2013/14.
The Competition Commission of
India plans to issue final orders within a broad time-frame of one year in matters
where it decides to carry out detailed investigations. The number of complaints
received by the watchdog which keeps tabs on unfair trade practices in the
marketplace.
The government has detected
custom tax evasion totaling around Rs 37920 mn in 14 states until December.
Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs
8140 mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.
Connaught Place in New Delhi
slipped four notches to become the world’s eighth most expensive office
locations. London’s West End is the world’s most expensive office market.
There are 4.072 mn number of
high value spenders under the scanner of the income tax department. The income
tax department has information that they have made cash deposits announcing to
Rs 1 mn or more in their savings bank accounts in the current financial year.
It plans to check potential evasion before the closing of the financial year on
March 31.
Estimated pharmaceutical sales
in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago.
The life sciences and health care industry is up against challenges such as
quality management, says a recent Deloitte report.
The gross non-performing assets
of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months
of the financial year. In absolute terms, the 40 listed banks added Rs 3386
crore to their gross NPAs in nine months with the State Bank of India leading
with the State Bank of India leading with an accretion of Rs 16610 crore.
The inflow of smuggled gold
doubled in 2013 following restrictions to curb the supply from official
channels to contain the current account deficit. China surpassed India in the
demand for gold for the first time in 2013 due to liberalization of gold
trading norms by its local governments.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term loans: “A+” |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
February 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 DECLINED
Management non-cooperative (Tel. No.: 91-265-2330766)
LOCATIONS
|
Registered Office : |
Tandalja Road, Off Old Padra Road, Vadodara - 390 020,
Gujarat, India |
|
Tel. No.: |
91-265-2330766 / 2333568 |
|
Fax No.: |
91-265-2333567 / 2333918 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Chennai Office : |
‘Lakshmi Chambers’, 192, St. Mary’s Road, Alwarpet, Chennai – 600 018,
Tamil Nadu, |
|
Tel. No.: |
91 - 44 - 66229000 |
|
Fax No.: |
91 - 44 - 66229011 / 66229012 |
|
|
|
|
Mumbai Office : |
Anand House, |
|
Tel. No.: |
91 - 22 - 26045377 |
|
|
|
|
PY-1 Offshore Production Facility : |
SUN Platform Offshore |
|
|
|
|
PY-1 Gas Processing Plant : |
Pillaiperumalnallur, Thirukadaiyur-609 311, Nagapattinam District
Tamil |
|
|
|
|
Palej Production Facilities (PPF) : |
Block CB-ON-7, Near Palej, Village Makan-392 220, Vadodara District |
|
|
|
|
|
Block North Balol, Near Village Palaj-384 410, Mehsana District |
|
|
|
|
Asjol Early Production System (EPS) : |
Block Asjol, Village Katosan-384 430, Mehsana District |
|
|
|
|
Tahara Floating Production Unit : |
Offshore |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. R. Vasudevan |
|
Designation : |
Non-Executive Independent Director/Chairman |
|
Date of Birth/Age : |
74 Years |
|
Qualification : |
B.A. (Hons.) (Economics) degree from the University of Madras, a M.A. (Economic Statistics) degree from the University of Delhi and a M.P.A. (Development Economics) from Harvard University, Boston, U.S.A. |
|
|
|
|
Name : |
Mr. Sunil Behari Mathur |
|
Designation : |
Non-Executive Independent Director |
|
Date of Birth/Age : |
67 years |
|
Qualification : |
Chartered Accountant |
|
Experience : |
He has more than 40 years of experience in the fields of insurance and housing finance. |
|
|
|
|
Name : |
Mr. Paolo Carmosino |
|
Designation : |
Non-Executive Director |
|
Date of Birth/Age : |
57 years |
|
Qualification : |
degree in law from the University "La Sapienza"
of |
|
Experience : |
Pursued a career within the Eni Group spanning 33 years in finance and planning control areas. He is Eni's Senior Vice President for Finance, Chairman of Eni Coordination Center and Banque Eni SA and he is also a Director of EniADFin (formerly Sofid SpA). |
|
|
|
|
Name : |
Mr. Luigi Ciarrocchi |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
50 years |
|
Qualification : |
degree in Petroleum Engineering |
|
Experience : |
Spanning 24 years in hydrocarbon E and P sector, in
Europe, Africa and |
|
|
|
|
Name : |
Mr. Mukesh Butani |
|
Designation : |
Non-Executive Independent Director |
|
Date of Birth/Age : |
47 years |
|
Qualification : |
lawyer and Chartered Accountant |
|
Experience : |
He is a member of ICC, Paris Taxation Commission and served as Chairman of the Tax and Tariff Committee of the American Chamber of Commerce. |
|
|
|
|
Name : |
Mr. Manish Maheshwari |
|
Designation : |
Joint Managing Director |
|
Date of Birth/Age : |
43 years |
|
Qualification : |
Bachelor (Hons.) degree in Chemical Engineering and
Masters in Business Administration from |
|
Experience : |
23 years |
|
Date of Appointment : |
01.10.2003 |
|
|
|
|
Name : |
Mr. V. Srinivasa Rangan |
|
Designation : |
Non-Executive Non-Independent Director |
|
|
|
|
Name : |
Mr. Paolo Ceddia |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Guido Papetti |
|
Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Minesh Bhatt |
|
Designation : |
Company Secretary |
|
Address : |
‘Lakshmi Chambers’ 192, St. Mary’s Road, Alwarpet Chennai
– 600 018, Tamil Nadu |
|
Tel. No.: |
91-(044) 66229000, Extn.: 103 |
|
Fax No.: |
91-(044) 66229011/12 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
61569134 |
47.18 |
|
|
61569134 |
47.18 |
|
Total shareholding
of Promoter and Promoter Group (A) |
61569134 |
47.18 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
3003100 |
2.30 |
|
|
3353 |
0.00 |
|
|
1750537 |
1.34 |
|
|
8503433 |
6.52 |
|
|
13260423 |
10.16 |
|
|
|
|
|
|
20758293 |
15.91 |
|
|
|
|
|
|
23701994 |
18.16 |
|
|
8541068 |
6.55 |
|
|
2662377 |
2.04 |
|
|
1467858 |
1.12 |
|
|
268111 |
0.21 |
|
|
702338 |
0.54 |
|
|
224070 |
0.17 |
|
|
55663732 |
42.66 |
|
Total Public
shareholding (B) |
68924155 |
52.82 |
|
Total (A)+(B) |
130493289 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
130493289 |
0.00 |
Shareholding
belonging to the category "Promoter and Promoter Group"
|
l.No. |
Name of the
Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
||
|
1 |
Eni UK Holdings PLC |
2,61,15,455 |
20.01 |
|
2 |
Burren Shakti Limited |
3,54,40,913 |
27.16 |
|
3 |
Burren Energy India Limited |
12,766 |
0.01 |
|
|
Total |
6,15,69,134 |
47.18 |
Shareholding
belonging to the category "Public" and holding more than 1% of the
Total No. of Shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of
Total No. of Shares |
|
|
1 |
Housing Development Finance Corporation Limited |
14826303 |
11.36 |
|
|
2 |
Reliance Capital Trustee Co Ltd A/C-Reliance Regular Savings Fund-Equity Option |
3000000 |
2.30 |
|
|
3 |
GHI LTP Limited |
2322033 |
1.78 |
|
|
4 |
Jhunjhunwala Rakesh Radheshyam |
1961251 |
1.50 |
|
|
5 |
General Insurance Corporation Of India |
1750537 |
1.34 |
|
|
6 |
Nomura Singapore Limited |
1705560 |
1.31 |
|
|
|
Total |
25565684 |
19.59 |
Shareholding
belonging to the category "Public" and holding more than 5% of the
Total No. of Shares
|
Sl. No. |
Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of Total No. of Shares |
|
|
1 |
Housing Development Finance Corporation Limited |
14826303 |
11.36 |
|
|
|
Total |
14826303 |
11.36 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in of “Hydrocarbons and other incidental services”. |
|
|
|
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information Decline by the management |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Lenders : |
|
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.R. Batliboi and Associates Chartered Accountants |
|
|
|
|
Audit Partner : |
Mr. Subramanian Suresh |
|
|
|
|
Internal Auditors : |
Protiviti |
|
|
|
|
Advocates and Solicitors : |
Amarchand and Mangaldas and Suresh A. Shroff and Company |
|
|
|
|
Subsidiaries : |
HOEC Bardahl India Limited |
|
|
|
|
Promoter Group: |
|
|
|
|
|
Other Group
Entities: |
|
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs.2000.000 Millions |
|
|
|
|
|
Issued
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
130563363 |
Equity Shares |
Rs.10/- each |
Rs.1305.633
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
130493289 |
Equity Shares |
Rs.10/- each |
Rs.1304.933
Millions |
|
|
Amount Paid-up on Shares Forfeited |
|
Rs.0.160
Millions |
|
|
Total |
|
Rs.1305.093 Millions |
Reconciliation of
equity shares outstanding at the beginning and at the end of the reporting
period
|
Particulars |
As on 31.03.2013 |
|
|
No. |
Rs. In Millions |
|
|
At the beginning of the period |
130493289 |
1304.932 |
|
Issued during the period |
-- |
-- |
|
Outstanding at the end of the period |
130493289 |
1304.932 |
Terms / rights attached
to equity shares
The Company has only one class of equity shares having par value of INR 10 per share. Each holder of equity shares 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 assets of the Company remaining after
settlement of all liabilities. The distribution will be in proportion to the
number of equity shares held by the shareholders.
Details of
shareholders holding more than 5% shares in the Company
|
Particulars |
As on 31.03.2013 |
|
|
No. |
% holding |
|
|
Housing Development Finance Corporation Limited |
14826303 |
11.36 |
|
Shares held by Promoter and Promoter Group |
|
|
|
Burren Shakti Limited 35,440,913 (Previous Year: 35,440,913) shares of INR 10 each |
35440913 |
27.16 |
|
Burren Energy India Limited 12,766 (Previous Year: 12,766) shares of INR 10 each |
12766 |
0.01 |
|
Eni UK Holding Plc 26,115,455 (Previous Year: 26,115,455) shares of INR 10 each |
26115455 |
20.01 |
|
|
61569134 |
47.18 |
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 |
1,305.093 |
1,305.093 |
1,305.093 |
|
(b) Reserves & Surplus |
5,259.283 |
10,768.202 |
10,437.390 |
|
(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) |
6,564.376 |
12,073.295 |
11,742.483 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
8,166.505 |
5,241.120 |
5,254.010 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
430.852 |
323.853 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
964.353 |
908.136 |
798.255 |
|
Total
Non-current Liabilities (3) |
9,130.858 |
6,580.108 |
6,376.118 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
127.826 |
182.011 |
180.881 |
|
(c) Other current liabilities |
1,653.357 |
1,080.287 |
999.850 |
|
(d) Short-term provisions |
1.375 |
1.719 |
3.389 |
|
Total
Current Liabilities (4) |
1,782.558 |
1,264.017 |
1,184.120 |
|
|
|
|
|
|
TOTAL |
17,477.792 |
19,917.420 |
19,302.721 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
90.501 |
94.299 |
97.346 |
|
(ii) Intangible Assets |
0.665 |
1.109 |
0.326 |
|
(iii) Producing Properties |
10,694.369 |
15,251.378 |
14,799.516 |
|
(iv) Exploration / Development
work in progress |
3,391.815 |
1,238.849 |
1,010.869 |
|
(b) Non-current Investments |
5.000 |
5.000 |
5.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1,067.908 |
1,040.749 |
795.640 |
|
(e) Other bank balance |
373.060 |
370.814 |
305.616 |
|
(f) Foreign Currency Monetary
Item Translation Difference |
0.000 |
0.000 |
7.127 |
|
(g) Other Non-current assets |
1.087 |
3.989 |
0.000 |
|
Total
Non-Current Assets |
15,624.405 |
18,006.187 |
17,021.440 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
271.049 |
712.908 |
1,097.907 |
|
(b) Inventories |
391.760 |
468.893 |
440.428 |
|
(c) Trade receivables |
148.876 |
199.652 |
473.981 |
|
(d) Cash and cash equivalents |
872.706 |
423.685 |
163.674 |
|
(e) Short-term loans and
advances |
160.983 |
101.147 |
99.576 |
|
(f) Other current assets |
8.013 |
4.948 |
5.715 |
|
Total
Current Assets |
1,853.387 |
1,911.233 |
2,281.281 |
|
|
|
|
|
|
TOTAL |
17,477.792 |
19,917.420 |
19,302.721 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
SALES |
|
|
|
|
|
Income |
1,086.138 |
1,513.924 |
3,298.496 |
|
|
Other Income |
116.336 |
250.126 |
88.149 |
|
|
TOTAL
(A) |
1,202.474 |
1,764.050 |
3,386.645 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
(Decrease)/Increase in inventories
of Crude Oil, Condensate and Natural Gas |
(1.696) |
73.923 |
13.895 |
|
|
Employee Benefits, Operating,
Administrative and Other expenses |
443.380 |
584.617 |
846.992 |
|
|
Exceptional Items |
5,719.743 |
0.000 |
0.000 |
|
|
TOTAL
(B) |
6,161.427 |
658.540 |
860.887 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
(4,958.953) |
1,105.510 |
2,525.758 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
105.730 |
108.981 |
123.880 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(5,064.683) |
996.529 |
2,401.878 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
874.500 |
554.598 |
1,222.880 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
(5,939.183) |
441.931 |
1,178.998 |
|
|
|
|
|
|
|
Less |
TAX
(I) |
(430.852) |
107.000 |
377.001 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
(5,508.331) |
334.931 |
801.997 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD (K) |
2,931.000 |
2,596.000 |
1,870.000 |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S |
(2,577.000) |
2,931.000 |
2,596.000 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
NA |
NA |
0.615 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Components and Stores parts |
|
|
3.798 |
|
|
Capital Goods |
|
|
21.475 |
|
|
TOTAL
IMPORTS |
NA |
NA |
25.273 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
(42.21) |
2.57 |
6.15 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(458.08) |
18.99 |
23.68 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(546.81) |
29.19 |
35.74 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(197.08) |
14.48 |
37.14 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.90) |
0.04 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.24 |
0.43 |
0.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.04 |
1.51 |
1.93 |
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 |
1,305.093 |
1,305.093 |
1,305.093 |
|
Reserves & Surplus |
10,437.390 |
10,768.202 |
5,259.283 |
|
Net
worth |
11,742.483 |
12,073.295 |
6,564.376 |
|
|
|
|
|
|
long-term borrowings |
5,254.010 |
5,241.120 |
8,166.505 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
5,254.010 |
5,241.120 |
8,166.505 |
|
Debt/Equity
ratio |
0.447 |
0.434 |
1.244 |
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 |
3,298.496 |
1,513.924 |
1,086.138 |
|
|
|
(54.103) |
(28.257) |
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 |
3,298.496 |
1,513.924 |
1,086.138 |
|
Profit |
801.997 |
334.931 |
(5,508.331) |
|
|
24.31% |
22.12% |
(507.15)% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS: NOT AVAILABLE
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
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 |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|
Long term
borrowings |
|
|
|
ENI Finance International (Foreign Currency) |
8083.000 |
5024.175 |
|
|
|
|
|
Total |
8083.000 |
5024.175 |
|
Note:
Loan from Related Party (Unsecured) includes (Total INR 8,631.000 Millions): Unsecured loan of INR 5343.000 Millions (Previous Year: INR 5539.475 Millions) is to be paid in variable installments over a period upto Financial Year 2015-2016. During the year Company had raised funds through External Commercial Borrowing (ECB) from ENI Finance International of USD 60 Million (INR equivalent 3288.000 Millions) to be paid in variable installments over a period up to 2018-2019 starting from June 2014. |
||
FINANCIAL HIGHLIGHTS
During the year, the Company produced 0.83 mmboe of crude oil and gas (previous year 1.05 mmboe), the decrease being on account of the buyer, GAIL India Limited, being unable to off-take PY-1 Gas for 135 days due to shut-down/limitation of downstream consumer; and (b) unexpected behavior of PY-1 reservoir marked by water breakthrough and accelerated depletion. The lower production has resulted in a Turnover of INR 1,088 million for the year, a decrease of 24% over the previous year. The Revenue for the year was INR 1,204 million, a decrease of 29% over the previous year, for the aforesaid reasons.
On a standalone basis, the Loss-Before-Tax was INR 5,939 million. This is due to recognition of impairment loss and charging off of additional depreciation pursuant to reduction in PY-1 Reserves as certified by an independent 3rd Party in January 2013.
Provision for tax reflects the deferred tax asset created on carried forward business losses and unabsorbed depreciation to the extent of deferred tax liability as at March 31, 2013.
During the year, the Company had a Loss-After- Tax of INR 5,508.000 million compared to Profit-After-Tax of INR 335.000 million during the previous year.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY STRUCTURE,
DEVELOPMENT AND OPPORTUNITIES
FY 2012-2013 saw a slowdown in the growth of energy consumption globally, partly as a result of the economic slowdown but also because individuals and businesses have responded to high prices by becoming more efficient in their use of energy. Brazil, China, the EU, India, Japan, Russia and the US all saw below-average growth in energy consumption. Indeed, consumption growth of all forms of fossil energy was below average.
On the supply side, the world witnessed supply of energy coming from an increasing diversity of sources as the energy market continues to adapt, innovate and evolve. The most noticeable phenomenon remains the American shale gas revolution. In 2012, the US recorded the largest oil and natural gas production increases in the world, and saw the largest gain in oil production in its history. Elsewhere, for a second year, disruptions to oil supply in Africa and parts of the Middle East were offset by growth among OPEC producers. Libyan production recovered strongly after the sharp drop in output in FY 2011-2012, and Saudi Arabia, the UAE, and Qatar all produced at record levels. However, despite these supply increases, oil prices reached another record high. Coal remained the fastest-growing fossil fuel, with China consuming half of the world’s coal for the first time – but it was also the fossil fuel that saw the weakest growth relative to its historical average. While natural gas grew at a below-average rate, it was the only fossil fuel to see consumption growth accelerate in 2012. Cheaper natural gas competed strongly with coal in North America, displacing it as a power feedstock. Hydroelectric and renewable energy also competed strongly against coal globally; renewables in power generation grew by 15%. However in Europe, where gas was relatively expensive, coal was often the fuel of choice for power generation, while the LNG tankers that used to supply Europe turned towards Asia. Global nuclear power output had the largest decline ever, with Japanese output falling by nearly 90% as the response to the tragedy at Fukushima continued to unfold. Fossil fuel imports rose to compensate.
In these and many other ways, FY 2012-2013 highlighted the flexibility of the world’s energy market and the innovative approaches that consumers and producers take in response to change. Despite the slowdown, consumption and production reached record levels for all fuels except nuclear power and biofuels.
Energy price developments were mixed. Brent, the international crude oil benchmark, saw annual average prices reach record levels (in money-of-the-day terms), although annual prices declined slightly on an inflation-adjusted basis. Crude oil prices eased in the face of rising output in the US, Libya, and other OPEC producers. Oil production growth in the US was the largest in the world in 2012. In response, the differential between Brent and West Texas Intermediate (WTI) reached another record premium, although the gap began to narrow later in the year as infrastructure bottlenecks in the US eased. Natural gas prices rose in Europe and Asia, but fell in North America, where rising US natural gas output pushed gas prices to record discounts against both crude oil and international gas prices.
Despite global slowdown, Indian energy sector remains poised for a rapid growth as resource augmentation and growth in energy supply have failed to meet the domestic demand. India continues to import more than 70% of its Crude Oil requirements with its oil import bill being close to USD 157 billion in FY 2012-2013. Further given India’s targeted GDP growth, India’s need for primary energy is likely to more than double by the year 2020.
In this context, the exploration and production of domestic oil and gas assume a critical dimension for India’s energy security and economic growth. In a high demand growth scenario coupled with the fact that India remains vastly unexplored territory with only 20% of its sedimentary basins been moderately explored and developed, the Oil and Gas sector in India presents significant opportunity to the industry.
OPERATIONS OVERVIEW
The Company’s activities relate to exploration and production (based on exploration success) of hydrocarbons (crude oil and natural gas), which are natural resources. HOEC assets are geographically spread across India with a portfolio of exploration, development and production projects.
PRODUCT-WISE
PERFORMANCE
The Company’s aggregate production during the FY 2012-2013 was 833,551 barrels of oil equivalent (boe) (crude oil: 61,163 bbls; gas: 121,052,906 scm) as against 1,052,304 barrels of oil equivalent (boe) (crude oil: 145,102 bbls; gas: 142,641,782 scm) during the previous year. The decrease in production is
FINANCIAL REVIEW
REVENUE
Turnover for the FY 2012-2013 was INR 1,088 million as compared to INR 1,440 million of previous year, a decrease of 24%. This decrease is primarily on account of lower production for reasons as detailed in the section ‘Operations Review’ of the Management Discussion and Analysis Report. The Company’s Production on working interest basis during the year was 833,551 boe (2,284 boepd), 21% lower than the previous year. The Production on net entitlement basis to the Company was 2,258 boepd for the FY 2012-2013.
Other Income for the FY 2012-2013 was INR 116 million as compared to INR 250 million in the previous year; the decrease is explained by the Income Tax refund amounting to INR 74 million accounted in the previous year (FY 2012-2013: Nil) and the lower dividend income from current investments.
The average sale price of crude oil was USD 104/bbl (FY 2011-2012: USD 112/bbl) and net gas price realisation for PY-1 remained at USD 3.63 per mmbtu.
CONTINGENCIES
|
Particulars |
As on 31.03.2013 |
|
Contingent Liabilities |
|
|
Counter Guarantees on account of Bank Guarantees |
208107930 |
|
Claims against the Company Not Acknowledged as Debt – Income Tax Demands under Appeal |
393584832 |
|
Service Tax Liability (pertaining to one Unincorporated Joint Venture) |
2139321 |
|
Hire Charges (pertaining to one Unincorporated Joint Venture) |
51694208 |
|
Liquidated damages under appeal (Pertaining to one Unincorporated Joint Venture) |
47630122 |
STATEMENT OF
STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED ON DECEMBER
31, 2013
(Rs. In Millions)
|
Sr. No. |
Particular |
Quarter Ended |
Nine Months
Ended |
|
|
|
|
31.12.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
1 |
a) Net Sales / Income from Operations (See Note 2 and 3) |
169.953 |
141.127 |
466.121 |
|
|
b) Other Operating Income |
-- |
-- |
-- |
|
|
c) (Decrease) / Increase in Stock of Crude Oil, Condensate and Natural Gas |
7.568 |
6.913 |
(21.149) |
|
|
Total Income |
177.521 |
148.040 |
444.972 |
|
|
Expenses |
|
|
|
|
2 |
Purchase of Stock in Trade |
-- |
-- |
-- |
|
3 |
(Increase) / Decrease in inventories of stock-in-trade |
-- |
-- |
-- |
|
|
Employee Benefit Expenses |
26.545 |
28.867 |
79.352 |
|
|
Other Expenses |
|
|
|
|
|
- Operating Expenditure |
60.987 |
20.848 |
241.286 |
|
|
- Net (Gain) / Loss on Foreign Exchange |
(5.761) |
50.519 |
68.960 |
|
|
- Administrative and other Expenses |
24.828 |
27.553 |
75.509 |
|
|
- Recovery of Expenses |
(31.622) |
(33.564) |
(100.213) |
|
|
Depreciation, Depletion and Amortisation |
242.217 |
257.704 |
697.669 |
|
|
Total |
317.194 |
451.927 |
1062.663 |
|
|
Profit from Operations before Other Income, Interest and Exceptional Items ( 1+2 ) |
(139.673) |
(303.887) |
(617.591) |
|
4 |
Other Income (Net) |
15.518 |
13.933 |
46.250 |
|
5 |
Profit from Operations before Interest and Exceptional Items ( 3+4 ) |
(124.155) |
(289.954) |
(571.341) |
|
6 |
Finance cost |
26.141 |
29.207 |
81.494 |
|
7 |
Profit from Operations after Interest but before Exceptional Items ( 6-7 ) |
(150.296) |
(319.161) |
(652.835) |
|
8 |
Exceptional Items-Impairment Loss/Additional Depletion |
-- |
-- |
-- |
|
9 |
Profit from Ordinary Activities before Tax ( 7+8 ) |
(150.296) |
(319.161) |
(652.835) |
|
10 |
Tax Expenses |
|
|
|
|
11 |
a) Provision for Current Income Tax |
-- |
-- |
-- |
|
|
b) Provision for Deferred Tax |
-- |
-- |
-- |
|
|
c) MAT Credit Entitlement (Net) |
-- |
-- |
-- |
|
|
d) Write-back of provision for income tax |
-- |
(565.000) |
(565.000) |
|
|
Net Profit from Ordinary Activities after Tax (9+10) |
(150.296) |
245.839 |
(87.835) |
|
12 |
Extraordinary Items (net of tax expenses) |
-- |
-- |
-- |
|
13 |
Net Profit for the Period (12-13) |
(150.296) |
245.839 |
(87.835) |
|
14 |
Paid up Equity Share Capital (Face Value of Rs. 10/- each) |
1305.093 |
1305.093 |
1305.093 |
|
15 |
Reserves excluding Revaluation Reserve |
|
|
|
|
16 |
Basic and Diluted EPS (Rs.) - Not Annualised - before and after Extraordinary Items |
(1.15) |
1.88 |
(0.67) |
|
|
Basic and Diluted EPS (INR ) - Not Annualised - after Extraordinary Items |
(1.15) |
1.88 |
(0.67) |
|
|
|
|
|
|
|
17 |
Public Shareholding |
|
|
|
|
18 |
Number of Shares |
68,924,155 |
68,924,155 |
68,924,155 |
|
|
Percentage of Shareholding |
52.82% |
52.82% |
52.82% |
|
|
Promoters and Promoter Group Shareholding (See Note 5) a) Pledged / Encumbered |
|
|
|
|
19 |
Number of shares |
- |
- |
- |
|
|
Percentage of shareholding (as a % of the total shareholding of promoter and |
|
|
|
|
|
promoter group) |
- |
- |
- |
|
|
Percentage of shareholding (as a % of the total share capital of the company) |
- |
- |
- |
|
|
b) Non - encumbered |
|
|
|
|
|
Number of shares |
61,569,134 |
61,569,134 |
61,569,134 |
|
|
Percentage of shareholding (as a % of the total shareholding of promoter and |
|
|
|
|
|
promoter group) |
100.00% |
100.00% |
100.00% |
|
|
Percentage of shareholding (as a % of the total share capital of the company) |
47.18% |
47.18% |
47.18% |
|
|
|
|
|
|
|
Particulars |
31.12.2013 |
|
INVESTOR
COMPLAINTS |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
5 |
|
Disposed of during the quarter |
5 |
|
Remaining unresolved at the end of the quarter |
Nil |
Note:
The Company is primarily engaged in a single business segment of “Hydrocarbons and Other Incidental Services”. All the activities of the Company are around the main business. Further, the Company does not have any separate geographic segments other than India. Hence, there are no separate reportable segments as per AS-17 “Segmental Reporting”.
PY-3 Field, operated by Hardy Exploration & Production (India) Inc., remains shut since July 31, 2011. The Full Field Development Plan submitted by the Operator during May 2013 has been technically reviewed by all the JV Partners. Discussions are ongoing amongst the Joint Venture Partners with respect to the proposal to proportionately share cess and royalty on a cost recoverable basis.
PY-1 Field was shut in for a period of 3.65 days during Q3 FY 2014 as against 25 days during Q2 FY 2014 on account of non evacuation of gas by GAIL (Buyer). Following the Amendment to the Gas Sales Contract which had been executed in July 2013, GAIL has been evacuating gas through the low pressure pipeline connecting PY-1 Gas Terminal to alternate consumers on a nearly continuous basis
Exceptional item for the previous period ended December 31, 2012 and the previous year ended March 31, 2013 represented additional depletion and impairment loss aggregating to INR 57,197 lacs charged to the statement of profit and loss due to reduction in the Proved Reserves of PY-1 Field pursuant to an independent third party certification of PY-1 Field Reserves based on information available subsequent to the drilling of Surya Well. While estimating the future cash flows for determining the value-in-use of PY-1 Asset as per AS 28, the Company had considered a natural gas price of USD 5/MMBtu from 2015 onwards.
In accordance with the accounting policy followed by the Company, the impairment assessment has been reviewed as at December 31, 2013 and currently no revision seems to be necessary to the amounts recognised in the previous year in view of the following factors:
- As the update to the Reservoir Study is delayed, the Company continues to rely on the independent third party certification of PY-1Field Reserves made in January 2013.
- Ministry of Petroleum & Natural Gas has issued the 'Domestic Natural Gas Pricing Guidelines, 2014' which shall be effective from April
As per the Company’s Accounting Policy, the survey costs are initially capitalized as ‘Exploration Expenditure” and are retained in exploration expenditure-work-in-progress and subsequently transferred to “Producing Properties” when the well is ready to commence commercial production or expensed off if the exploration activity is determined to be unsuccessful.
The Hon’ble Mumbai ITAT had, vide its order dated September 17, 2013, passed a favorable order in relation to the Company’s Income Tax Assessment Cases for the Financial Years 2004-05 and 2005-06 primarily relating to deduction under Section 80IB(9) of the Income Tax Act 1961. Since the deduction had been decided in favour of the Company (consistent with Financial Years 2002-03 and 2003-04), the excess Income Tax provision made for the Financial Years 2004-05 to 2006-07 amounting to INR 5,650 lacs had been written back during the previous quarter.
The details of Promoter's Shareholding is based on their declarations giving the status that no share has been pledged for respective periods.
Figures for previous period/year have been regrouped / reclassified to make them comparable with the current period, wherever necessary.
The above results and notes thereto were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on February 14, 2014.
PRESS RELEASE
Corporate
Announcement: Appointment of Additional Director (Independent Director)
The Company has informed the Stock Exchanges as under:
“The Board of Directors at its meeting held on February 14, 2014 appointed Mr.
Dhruv S. Kaji as Additional Director (Independent Director), subject to
approval of the Shareholders at the ensuing Annual General Meeting.
Mr. Dhruv S. Kaji holds a Bachelor's degree in Commerce and is an associate
member of the Institute of Chartered Accountants of India.”
Corporate
Announcement: Resignation of Director
The Company has informed the Stock Exchanges as under:
“Mr. Luigi Ciarrocchi has resigned as Director from the Board of Directors of
the Company w.e.f. February 14, 2014.”
Corporate
Announcement: Resignation of Director
The Company has informed the Stock Exchanges as under:
“Mr. Mukesh Butani, Non-Executive Independent Director has resigned from the
Board of Directors of the Company w.e.f. October 10, 2013.”
Corporate
Announcement: Update on Block AAP-ON-94/1 (Assam-Arakan Basin)
The Company has informed the Stock Exchanges as under:
“Further to the announcements made to your stock exchange in the past on the subject, this is to inform that ‘The Ministry of Petroleum and Natural Gas (MoPNG) and Directorate General of Hydrocarbons (DGH) have approved the commerciality of ‘Dirok’ hydrocarbon discovery in Block AAP-ON-94/1 located in Assam-Arakan basin with the mean Gas-Initially-In-Place (GIIP) of 254 BCF. Following this approval, Hindustan Oil Exploration Company Ltd. (HOEC), as the Operator of the Block, is preparing the Field Development Plan for Dirok Discovery with the objective to bring the First Gas to the market in an accelerated manner, subject to timely receipt of various regulatory approvals for the development / production phase.
HOEC has 26.88 % participating interest in the development and production phase
of Dirok Discovery. The other Consortium Partners include Oil India Limited
(OIL) and Indian Oil Corporation Limited (IOCL)’.”
Fixed Assets
- Land-Freehold
- Buildings
- Office Equipments
- Computers
- Office Furniture
- Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or anti-terrorism
sanction laws or whose assets were seized, blocked, frozen or ordered forfeited
for violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.01 |
|
|
1 |
Rs. 101.65 |
|
Euro |
1 |
Rs. 85.02 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--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.