MIRA INFORM REPORT

 

 

Report No. :

328374

Report Date :

23.06.2015

 

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

Tel. No.:

91-22-40325000

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

02.05.1994

 

 

Capital Investment / Paid-up Capital :

Rs.16715.537 million

 

 

FCRN :

F01316

 

 

IEC No.:

0394068602

 

 

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 (26)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a foreign registered company having branch office in India. It is having moderate track record.

 

Latest financial information for the year 2014 are not available from any source.

 

From the financial record of 2013, company has incurred huge loss from its operational activities.

 

However, rating also takes into consideration strong support that company receives from its holding company backed by adequate capital base and zero debt balance sheet of company. Payment are reported to be slow but correct.

 

In view of strong support from holding company, the subject 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.

 

 

EXTERNAL AGENCY RATING

 

NOT AVAILABLE

 

 

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 31-03-2014.

 

 

INFORMATION DECLINED

 

MANAGEMENT NON- COOPERATIVE

(TEL. NO.: 91-22-40325000)

 

 

LOCATIONS

 

Registered Office :

Located at

 

·         Cayman Islands

Liasion Office/ Project Office:

B.G. House, Lake Boulevard Road, Hiranandani Business Park, Powai, Mumbai – 400 076, Maharashtra, India

Tel. No.:

91-22-40325000/ 66435000

Fax No.:

91-22-40058930

E-Mail :

allen.andrade@bg-group.com

bgindiainfo@bg-group.com

smriti.subramanian@bg-group.com

Website :

http://www.bg-india.com

 

 

Head Office :

7th Floor, World Trade Tower, Barakhamba Lane, New Delhi – 110 001
India

Tel. No.:

91-11-40604060

Fax No.:

91-11-43545202

E-Mail :

bgindiainfo@bg-group.com

 

 

Administrative Office :

BG Group Plc, Thames Valley Park, Reading,  Berkshire, RG6 1PT
United Kingdom

Tel. No.:

44-11-89353222

Fax No.:

44-11-89353484

E-Mail :

box.info@bg-group.com

 

 

Aberdeen Office :

BG Group plc , 6 Albyn Grove, Aberdeen, Scotland, AB10 6SQ

Tel. No.:

44-1224202020

Fax No.:

44-1224202099

 

 

Ahmedabad Corporate Office (Gujarat Gas) :

2, Shanti Sadan Society, Near Parimal Garden, Ellisbridge, Ahmedabad - 380 006, Gujarat, India

Tel No.:

91-79-26462980 / 26460095/ 26467876

Fax No.:

91-79-26466249

Email :

contactggcl@gujaratgas.com

 

 

Bharuch City Office :

Anand Mangal Society, Sontalawadi, Nandewar Road, Bharuch – 392 001, Gujarat, India

Tel No.:

91-2642-263188/ 261491/ 263288

Fax No.:

91-2642-240683

Email :

contactggcl@gujaratgas.com

 

 

Ankleshwar Gas Division :

Surti Bhagol, Umarwada Road, Via Piramal Naka, Ankleshwar – 393 001, Gujarat, India

Tel No.:

91- 2646-246121/ 2/ 248121

Fax No.:

91-2646-246124

Email :

contactggcl@gujaratgas.com

 

 

Surat Main Office :

Adajan Gam, Post Box No 915, P. O. Navyug College,  Surat – 395 009, Gujarat, India

Tel No.:

91-261-2736333

Fax No.:

91-261-2736362

Email :

contactggcl@gujaratgas.com

 

 

Mahanagar Gas :

 

MGL House, Block G-33, Opposite ICICI Tower, Bandra - Kurla Complex, Bandra(East), Mumbai - 400 051, Maharashtra, India

 

 

BG India Energy Services Private Limited:

102, Empire State Building,  Ring Road, Surat – 395 002, Gujarat, India

Tel No.: / Fax No.:

91-261-2343239/ 40

 

 

Branch Offices :

Located at:

 

·         Argentina

·         Bolivia

·         Brazil

·         Sao Paulo

·         Canada

·         Delhi

·         Israel

·         Italy

·         Kazakhstan

·         Malaysia

·         Middle East

·          

·         Netherlands

·         Norway

·         Palestine

·         Philippines

·         Scotland

·         Singapore

·         Thailand

·         Trinidad and Tobago

·         Tunisia

·         United Kingdom

·         USA

 

 

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.

 

 

Products :

ITC Code No.

 

Product Descriptions

Crude Oil and Condensate

27090000

Natural Gas

27112100

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

Exports :

--

 

 

Imports :

--

 

 

Terms :

--

 

 

PRODUCTION STATUS (AS ON 31.03.2014)

 

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 shut down 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 Million on the instruction received from GOI.

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

Not Divulged

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

Customers :

Reference:

Not Divulged

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

No. of Employees :

Information declined by the management.

 

 

Bankers :

Bank Name:

Not Divulged

Branch:

Not Divulged

Person Name (with Designation):

Not Divulged

Contact Number:

Not Divulged

Name of Account Holder:

Not Divulged

Account Number:

Not Divulged

Account Since (Date/ Year of A/c Opening):

Not Divulged

Average Balance Maintained (Optional):

Not Divulged

Credit Facilities Enjoyed (CC/OD/Term Loan):

Not Divulged

Account Operation:

Not Divulged

Remarks:

Not Divulged

 

·         Citi Bank, New York, USA

 

·         JP Morgan Chase Bank of Texas  Houston, USA, An American Bank

 

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 :

dvjasso@eth.net

Income-tax permanent account number of cost auditor or cost auditor's firm :

AACFD9289L

 

 

Holding Company:

BG Mumbai Holdings Limited - Mauritius

 

 

Ultimate Holding Company:

BG Group Plc - England

 

 

 

 

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 million)

31.03.2012

(Rs. in million)

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 million (Previous Year Rs.27455.914 millions) and interest payable amounting to Rs.1887.359 million (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 million (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 Million]

 

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)

1298.456

1219.798

0.000

(d)  Long-term Loan and Advances

3069.886

5282.319

3190.666

(e) 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

 

 

 

 

 

Income

26402.801

29409.972

23679.016

 

 

Other Income

143.280

1137.069

373.050

 

 

TOTAL                                     (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

 

 

 

 

 

 

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

147.653

488.876

 

 

Capital Goods

458.621

117.131

0.000

 

TOTAL IMPORTS

1011.105

264.784

488.876

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2013

31.03.2012

31.03.2011

Current Maturities of Long term debt

NA

NA

NA

 

 

 

 

Cash generated from operations

12421.704

15002.591

10871.669

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

Net Profit Margin

(PAT / Sales)

(%)

(4.77)

10.04

4.34

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

15.18

42.40

46.89

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(5.79)

17.10

10.20

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.11)

0.30

0.18

 

 

 

 

 

Debt Equity Ratio

(Total Liability/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 Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Head Office Account

23593.098

20588.805

16715.537

Reserves & Surplus

0.000

0.000

0.000

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

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

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

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

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

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

 

Sr. No.

Check list by info agents

Available in Report

(Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

No

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

No

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

No

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

No

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

GENERAL INFORMATION

 

Subject (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 Million)

31.03.2012

(Rs. in Million)

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 million (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 million (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 million (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 million (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 million (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)

·         Decommission Asset

·         Leasehold Improvements

·         Furniture and Fixtures

·         Office Equipment’s

·         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, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No 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.63.51

UK Pound

1

Rs.100.94

Euro

1

Rs.72.32

 

 

INFORMATION DETAILS

 

Information Gathered by :

DIP

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ARC

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

26

 

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

 

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

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

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.