MIRA
INFORM REPORT
|
Report Date : |
09.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
BG EXPLORATION AND PRODUCTION INDIA LIMITED (w.e.f. 15.02.2002) |
|
|
|
|
Formerly Known
As : |
ENRON OIL AND GAS
INDIA LIMITED |
|
|
|
|
Liasion
Office/ Project Office : |
B.G. House, Lake
Boulevard Road, Hiranandani Business Park, Powai, Mumbai – 400 076,
Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
02.05.1994 |
|
|
|
|
Capital Investment / Paid-up Capital : |
Rs.16715.537 millions |
|
|
|
|
FCRN : |
F01316 |
|
|
|
|
TAN No.: (Tax
Deduction & Collection Account No.) |
MUMB12758E |
|
|
|
|
PAN No.: (Permanent
Account No.) |
AAACE4569K |
|
|
|
|
Legal Form : |
Foreign Registered
Company |
|
|
|
|
Line of
Business : |
Subject is engaged in the exploration, development
and production of oil, gas and condensate. |
|
|
|
|
No. of Employees : |
Information
declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 66862000 |
|
|
|
|
Status : |
Foreign Registered Company |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
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|
|
Comments : |
Subject is a foreign registered company having moderate track record. Company has incurred loss from its operation in the year 2013. However, trade relations are reported to be fair. Business is active.
Payment terms are slow but correct. The company can be considered for business dealing with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
Management non-cooperative
(Tel. No.: 91-22-40325000)
LOCATIONS
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Shaleen Sharma |
|
Designation : |
President and Managing Director |
|
Address : |
B.G. House, Lake Boulevard Road, Hiranandani Business Park, Powai, Mumbai
– 400 076, Maharashtra, India |
|
Date of Appointment : |
01.07.2012 |
|
|
|
|
Name : |
Mr. Adam Hiller |
|
Designation : |
Vice President, PMT Operations |
|
Address : |
2901, Evita (29th
Floor), Hiranandani Gardens, Powai, Mumbai - 400 076, Maharashtra, India |
|
Date of Appointment: |
04.01.2012 |
|
|
|
|
Name : |
Shahram Jahanbani |
|
Designation : |
Vice President – Finance |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the exploration, development
and production of oil, gas and condensate. |
||||||
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|
|
||||||
|
Product: |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Actual
Production |
|
PANNA AND MUKTA
FIELDS |
|
|
|
- Crude Oil |
Metic Tons (MT) |
1212983 |
|
- Associated Natural Gas (ANG) |
MMBtu* |
59033294 |
|
Mid and South
Tapti Fields |
|
|
|
- Mid and South Tapti Field |
MMBtu* |
98124201 |
|
- Condensate |
Metic Tons (MT) |
149577 |
Notes:
*MMBtu - Million British thermal
units
With effect from 1st January 2007, the JV has agreed to pay the GOI its share of Profit Petroleum in cash, based on various communications the last being DGH/PSC/PM and T/Prof.Pet/2006 dated 7th December 2006. Prior to this date the JV invoiced on behalf of the government and remitted their share of Profit Petroleum. This change in procedure is without prejudice to the rights of the constituents of the Contractor under the PSC and has been agreed by the DGH. Payments made to the GOI are disclosed under 'Profit Petroleum to Government of India' in the Profit and Loss Account.
Production of Oil and Gas from Panna-Mukta fields was shutdown from 20th July 2010 to 29th October 2010 due to a leakage from the subsea hose assembly at the Panna Single Buoy Moring (SBM).
During the year IOC and GAIL had withheld Rs.1063.926 Millions on the instruction received from GOI.
GENERAL INFORMATION
|
No. of Employees: |
Information
declined by the management. |
|
|
|
|
Bankers : |
·
·
JP Morgan Chase Bank of |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.R. Batliboi and Associates LLP Chartered Accountants |
|
Address : |
14th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar
(West), Mumbai – 400 028, Maharashtra, India |
|
Tel. No.: |
91-22-61920000 |
|
Fax No.: |
91-22-61921000 |
|
|
|
|
Cost Auditors : |
|
|
Name : |
Dhananjay V. Joshi and Associates |
|
Address : |
CMA Pride, Ground Floor, Plot No.6, S No.16-6, Erandawana Housing Society,
Erandawana, Pune – 411 004, Maharashtra, India |
|
E-Mail : |
|
|
Income-tax
permanent account number of cost auditor or cost auditor's firm : |
AACFD9289L |
|
|
|
|
Ultimate Holding Company: |
BG Group Plc - England |
|
|
|
|
Holding Company: |
BG Mumbai Holdings Limited - Mauritius |
|
|
|
|
Associate Companies : |
·
BG International Limited ·
BG Asia Pacific Holdings Pte. Limited, Singapore · BG India Energy Private Limited ·
BG India Energy Solutions Private Limited ·
BG India Energy Services Private Limited ·
BG LNG Regas India Private Limited ·
Gujarat Gas Company Limited ·
Mahanagar Gas Limited |
CAPITAL STRUCTURE
HEAD OFFICE
ACCOUNT:
|
Particulars |
31.03.2013 (Rs.
in millions) |
31.03.2012 (Rs.
in millions) |
|
At the beginning of the year |
20588.805 |
23593.098 |
|
Remittances Received from Head Office towards cash call |
18192.998 |
13589.484 |
|
Interest Expenses |
2188.460 |
1849.169 |
|
Remittances made to head office |
(22444.558) |
(23254.145) |
|
Interest Paid |
(2272.078) |
(1672.482) |
|
Exchange (Gain) / Loss (net) |
1722.346 |
3532.056 |
|
Total |
17975.973 |
17637.180 |
|
|
|
|
|
(Loss) / Profit for the year |
(1260.436) |
2951.625 |
|
|
|
|
|
|
16715.537 |
20588.805 |
Notes:
a.
Head Office account includes cumulative remittances received from head office towards
loan aggregating Rs.31258.878 millions (Previous Year Rs.27455.914 millions)
and interest payable amounting to Rs.1887.359 millions (Previous Year
Rs.2011.667 millions)] drawdown by BG Exploration and Production India Limited -
Indian Operations (Project Office) as at March 31, 2013, based on the
loan facility agreement dated May 31, 2005 and additional loan facility
agreement dated October 21, 2009 between BG Asia
Pacific Pte. Limited, Singapore and BG Exploration and Production India
Limited, Cayman Islands (Head Office) for total unsecured loan facility of USD 800
million to be utilized for capital expenditure and general requirements of
business of the Project office. The termination date of the loan agreement is
May 31, 2020.
b.
Head Office account includes interest of Rs.1860.191 millions (Previous Year
Rs.1849.169 millions) payable within one year.
c.
The aforesaid loan balance and outstanding interest payable thereon as at the respective
reporting dates are translated using the exchange rate prevailing at the
reporting date and the resulting exchange differences have been recognised in
the Statement of Profit and Loss.
FINANCIAL DATA
[all figures are
in Rupees Millions]
Indian Operations
of BG Exploration and Production India Limited (a Company Incorporated in
Cayman Islands with Limited Liability) – “the company”
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1) Shareholders' Funds |
|
|
|
|
(a) Head Office Account |
16715.537 |
20588.805 |
23593.098 |
|
(b) Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
16715.537 |
20588.805 |
23593.098 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
293.751 |
4412.282 |
5810.307 |
|
(c) Other long
term liabilities |
411.000 |
386.475 |
338.550 |
|
(d) Long-term
provisions |
5561.392 |
4503.592 |
5582.746 |
|
Total Non-current
Liabilities (3) |
6266.143 |
9302.349 |
11731.603 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b)
Trade payables |
4926.761 |
4434.835
|
9744.326
|
|
(c)
Other current liabilities |
7421.127 |
5102.499
|
648.813
|
|
(d) Short-term
provisions |
2334.262 |
1764.481
|
40.167
|
|
Total Current
Liabilities (4) |
14682.150 |
11301.815 |
10433.306 |
|
|
|
|
|
|
TOTAL |
37663.830 |
41192.969 |
45758.007 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
15906.963 |
21720.801 |
27054.402 |
|
(ii)
Intangible Assets |
0.505 |
1.866 |
10.024 |
|
(iii)
Capital work-in-progress |
3908.732 |
3764.317 |
3847.795 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Trade receivables |
1298.456 |
1219.798 |
0.000 |
|
(e) Long-term Loan and Advances |
3069.886 |
5282.319 |
3190.666 |
|
(f) Other
Non-current assets |
733.867 |
691.327 |
2117.033 |
|
Total Non-Current
Assets |
24918.409 |
32680.428 |
36219.920 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
1179.553 |
829.040
|
755.803
|
|
(c)
Trade receivables |
3067.575 |
2635.070
|
3831.337
|
|
(d) Cash
and cash equivalents |
482.595 |
267.944
|
929.929
|
|
(e)
Short-term loans and advances |
8015.698 |
4780.487 |
4021.018 |
|
(f)
Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
12745.421 |
8512.541 |
9538.087 |
|
|
|
|
|
|
TOTAL |
37663.830 |
41192.969 |
45758.007 |
Indian Operations
of BG Exploration and Production India Limited (a Company Incorporated in Cayman
Islands with Limited Liability) – “the company”
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
26402.801 |
29409.972 |
23679.016 |
|
|
|
Other Income |
143.280 |
1137.069 |
373.050 |
|
|
|
Total Income (A) |
26546.081 |
30547.041 |
24052.066 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating and Other Expenses |
15124.592 |
16789.140 |
11803.765 |
|
|
|
Employee Benefit Expenses |
1227.318 |
1287.469 |
727.977 |
|
|
|
Exceptional Items – Provision for Impairment
losses |
6627.015 |
0.000 |
0.000 |
|
|
|
Prior Period Expenses |
(442.088) |
0.000 |
418.356 |
|
|
|
TOTAL (B) |
22536.837 |
18076.609 |
12950.098 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4009.244 |
12470.432 |
11101.968 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2383.329 |
1580.891 |
1511.193 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1625.915 |
10889.541 |
9590.775 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3503.954 |
4697.186 |
5313.864 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(1878.039) |
6192.355 |
4276.911 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(617.603) |
3240.730 |
3248.255 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX TRANSFERRED TO HEAD OFFICE ACCOUNT (G-H) (I) |
(1260.436) |
2951.625 |
1028.656 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Revenue from operations |
26402.801 |
29409.972 |
23679.016 |
|
|
|
Bank Interest |
0.274 |
0.574 |
0.000 |
|
|
|
Other Income |
0.000 |
11.476 |
0.322 |
|
|
TOTAL EARNINGS |
26403.075 |
29422.022 |
23679.338 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components |
552.484 |
|
488.876 |
|
|
|
Capital Goods |
458.621 |
117.131 |
|
|
|
TOTAL IMPORTS |
1011.105 |
264.784 |
488.876 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(4.75)
|
9.66
|
4.28
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(7.11)
|
21.06
|
18.06
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.56)
|
16.54
|
10.20
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.11)
|
0.30
|
0.18
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.87
|
0.75
|
0.91
|
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Head Office Account |
23593.098 |
20588.805 |
16715.537 |
|
Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
Net worth |
23593.098 |
20588.805 |
16715.537 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue
from operations |
23679.016 |
29409.972 |
26402.801 |
|
|
|
24.203 |
(10.225) |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue
from operations |
23679.016 |
29409.972 |
26402.801 |
|
Profit |
1028.656 |
2951.625 |
(1260.436) |
|
|
4.34% |
10.04% |
(4.77%) |
LOCAL AGENCY FURTHER INFORMATION
Details of Current Maturities of Long Term
Debt: Not Available
|
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 |
No |
|
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 |
No |
|
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 |
No |
Note:
No Charges Exist for Company.
GENERAL
INFORMATION
BG
Exploration and Production India Limited (formerly known as Enron Oil and Gas
India Limited) (EOGIL) incorporated in the Cayman Islands with limited liability,
is primarily engaged in the business of prospecting, exploring and producing
oil and gas from the contracted areas. On February 14, 2002, all the shares of
EOGIL were acquired by BG Mumbai Holdings Limited, subsequent to which, with
effect from February 15, 2002, the name of EOGIL was changed to BG Exploration
and Production India Limited (the Company/ BGEPIL).
EOGIL
was awarded the Production Sharing Contracts (PSG) for Panna Mukta and Mid and
South Tapti fields. EOGIL had established a Project Office (PO) with the
approval of the Reserve Bank of India (RBI) [Letter No. EC.BY.PRT
328/7(FCO)/93-94 dated April 22, 1994] to execute the obligation under the said
PSG. In continuation of the above approval, BGEPIL was granted an extension to
continue the existing PO until April 30, 2016 by the RBI (Letter FED.
MRO/CAP/03.03.007/2012-13 dated May 16, 2013).
BGEPIL
in accordance with the general permission under Regulation 5(ii) to RBI
Notification No.22/2000 - RB dated May 3, 2000 read with Notification No. FEMA
95 dated July 2, 2003 has set up project offices to execute the obligations
under the following Production Sharing Contracts (PSG)/ Joint Operating
Agreements (JOAs) / Farm In Agreements (FIAs):
-
PSC dated December 22, 1994, amended on January 10, 2005 and the IOAs dated
December 22, 1994 for Panna Mukta, Mid and South Tapti (PMT).
-
PSC dated June 30, 2010 for Contract Area KG-DWN-2009/1.
-
PSC dated September 10, 2012 for Contract Area MB-DWN-2010/1.
-
PSC dated March 2, 2007 for Contract Area KG-OSN-2004/1. (BGEPIL has written
off exploration expenses during the previous year and has entered into an exit
agreement in current year.
-
PSC dated July 12, 2011 for Contract Area MN-DWN-2002/2. (BGEPIL has written
off exploration expenses during the previous year and has entered into an exit
agreement in current year.
-
FIA dated February 18, 2008 for Contract Area KG-DWN-1998/4, approved by
Ministry of Petroleum and Natural Gas (MOPNG) on May 13, 2008. (BGEPIL has
written off exploration expenses during the previous year and has entered into
an exit agreement in current year.
Further,
BGEPIL has also obtained permission vide letter no. FE.CO.FID/10.83.98/2007-08
to BGEPIL for establishing a branch office at Mumbai and a Satellite Office at
Gurgaon.
BGEPIL
(Cayman Islands - Head Office) maintains bank accounts outside India for the
purpose of arranging funds for capital and revenue transactions of the Indian
Operations including collection of sales proceeds from customers under the PSCs
and payments to vendors for expenses relation to Indian Operations.
Accordingly,
the financial statements of India operations include the project offices,
branch office, and the head office activities relating to the Indian
operations. These together referred to as "BGEPIL Indian operations",
a Foreign Company as defined under Section 591 of the Companies Act. 1956.
The
financial statements of BGEPIL Indian Operations are prepared under the
Companies Act, 1956, and includes only those Indian Rupee and foreign currency
(including Company's foreign currency bank accounts held outside India)
(Converted into Indian Rupee) assets, liabilities, income and expenditure which
relate to the Company's participating interests in the contracts / agreements
and other transactions related to the Indian operations of the Company
mentioned above.
The participating interests of subject in each of these are as follows:
For Contract Area
Panna-Mukta, Mid and South Tapti
|
Partners |
Participating
Interest (%) |
|
Oil and Natural Gas Corporation Limited
(ONGCL) |
40 |
|
Reliance Industries Limited (RIL) |
30 |
|
BGEPIL (Cayman Islands) (Joint Operator) |
30 |
For Contract Area
KG-DWN-2009/1
|
Partners |
Participating
Interest (%) |
|
BGEPIL (Cayman Islands) (Sole
Operator) |
30 |
|
Oil and Natural Gas Corporation
Limited (ONGC) |
45 |
|
Oil India Limited (OIL) |
15 |
|
Andhra Pradesh Gas
Infrastructure Corporation Private Limited (APGIC) |
10 |
For Contract Area MB-DWN-2010/1
|
Partners |
Participating
Interest (%) |
|
BGEPIL (Cayman Islands) (Sole Operator) |
50 |
|
BHP Billiton Petroleum (International
Exploration) PTY Limited (BHP) |
50 |
For Contract Area KG-OSN-2004/1
|
Partners |
Participating
Interest (%) |
|
Oil and Natural Gas Corporation Limited
(ONGCL) |
55 |
|
BGEPIL (Cayman Islands) (Non Operator) |
45 |
For Contract Area MN-DWN-2002/2
|
Parties to the Farm In Agreement |
Participating
Interest (%) |
|
Oil and Natural Gas Corporation Limited
(ONGCL) |
75 |
|
BGEPIL (Cayman Islands) (Non Operator) |
25 |
For Contract Area KG-DWN-98/4
|
Parties to the Farm In Agreement |
Participating
Interest (%) |
|
Oil and Natural Gas Corporation Limited
(ONGCL) |
55 |
|
Oil India Limited (Oil) |
15 |
|
BGEPIL (Cayman Islands) (Non Operator) |
30 |
BGEPIL
and ONGCL have entered into an Exit Agreement on December 12, 2012 to: (a)
assign its participating interests in Contract Areas - KG-OSN-2004/1 and MN-DWN-2002/2
and (b) pay USD 50,000,000 (Rs.2740.000 millions) as full final settlement of
all dues in relation to Contract Areas - KG-OSN 2004/1, MN-DWN-2002/2 and
KG-DWN-98/4. On March 13, 2013 Government of India (GOI) has approved
assignment of BGEPIL's participating interest in KG-OSN 2004/1 to ONGCL. GOI
approval in respect of MN-DWN-2002/2 and KG-DWN-98/4 is awaited.
PROFIT
PETROLEUM TO GOVERNMENT OF INDIA
Contract Area Panna Mukta, Mid and South Tapti:
a.
In accordance with Article 14 of the PSC's of PMT, the profit petroleum will be
shared between GOI and the contractors (ONGC, RIL, BGEPIL), when the cumulative
revenues of a Contract area exceeds the cumulative recoverable contract costs
of that area as mentioned in Article 13 of the PSC's.
b.
The calculation of profit petroleum based on actual costs, quantities, prices
and income (excluding marketing margin charged by the Joint Venture to recoup
costs Incurred by the Joint Venture after the delivery point) for the financial
year ended March 31, 2013 has been computed and necessary adjustment to the
profit petroleum has been made, which is not yet agreed between the GOI and the
contractor as mentioned in Article 14 of the PSC's.
CONTINGENT
LIABILITIES
(To the
extent of Company’s Share)
|
Particulars |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
Disputed
income tax demands |
955.515 |
893.871 |
|
Disputed
custom duty demands (Note a) |
1743.650 |
1743.650 |
|
Disputed sales tax
demands |
|
0 |
|
-
On delivery point issue (Note b) |
7025.668 |
7025.668 |
|
-
GOI share of Profit Petroleum and transportation and processing charges of gas (Note c) |
2523.735 |
2523.735 |
|
-
Other matters |
9.646 |
9.646 |
|
Disputed
service tax demands |
0.080 |
0.080 |
|
Claims
against the company not acknowledged as debts (Notes d and e) |
244.622 |
178.676 |
|
Amount
payable towards exit agreement |
0.000 |
1783.653 |
|
Total |
12502.916 |
14158.979 |
a.
The Company has received show cause notice from the Commissioner of customs,
Ahmedabad, Gujarat demanding Rs.1743.650 millions (Previous Year Rs.1743.650
millions) towards custom duty, along with interest and penalty as applicable on
associated natural gas extracted from Panna and Mukta fields during the period
February 8, 1998 to February 10, 2002 and natural gas and condensate extracted
from Mid and South Tapti fields during the period June 26, 1997 to February 10,
2002. The matter is pending with Central Board of Excise and Customs.
b.
The Company had received a show cause notice and a re-assessment order for the
financial year 1997-1998 to 2001-2002 from Gujarat Sales tax department
(Bhavnagar) demanding Rs.7025.668 millions (Previous Year Rs.7025.668 millions)
inclusive of interest and penalty on the basis that the Panna Mukta gas
delivery point is onshore and liable for sales tax. The Company contends that
gas delivery point is offshore at the 'T' junction on the platform and thus not
applicable to sales tax. The matter is currently pending with High Court,
Ahmedabad.
c.
Sales tax authorities raised a claim of Rs.2523.735 millions (Previous Year
Rs.2523.735 millions) including interest and penalty on BGEPIL in respect
Government of India Profit Petroleum and Transportation and Processing charges
paid to ONGCL for financial year 2002-03 to 2005-06. The matter is currently
pending with High Court, Ahmedabad.
d.
Claims against the Company not acknowledged as debt of Rs.178.676 millions
(Previous Year – Rs.178.676 millions) refer to a claim raised by Indian Oil
Corporation Limited (IOC) on account of additional freight incurred due to the
use of small tankers. The Company has disputed the claim.
e.
Swiber Offshore Construction Pte Limited, Singapore has served notice of
arbitration for various claims aggregating to Rs.65.946 millions (Previous Year
Rs. Nil) in respect of the gas lift project consisting of laying of three
segments of pipelines and installation of Riser guards. The procedural aspects
of the arbitration proceedings are currently in progress.
FIXED ASSETS:
Tangible
Assets
·
Producing Properties (Facilities
and Wells)
·
Decommissing Asset
·
Leasehold Improvements
·
Furniture and Fixtures
·
Office Equipments
·
Vehicles
Intangible
Assets
·
Computer Software (SAP)
·
Documentum Software
·
Support Computer Software
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.59.99 |
|
UK Pound |
1 |
Rs.101.75 |
|
Euro |
1 |
Rs.83.48 |
INFORMATION DETAILS
|
Information Gathered
by : |
NYA |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
32 |
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.