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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

501176

Report Date :

29.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

BHARAT PETROLEUM CORPORATION LIMITED

 

 

Registered Office :

Bharat Bhawan, P. B. No. 688, 4 and 6, Currimbhoy Road, Ballard Estate, Mumbai – 400001, Maharashtra

Tel. No.:

91-22- 22713000/ 004/ 22714000

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

03.11.1952

 

 

Com. Reg. No.:

11-008931

 

 

Capital Investment / Paid-up Capital :

INR 13112.500 Million

 

 

CIN No.:

[Company Identification No.]

L23220MH1952GOI008931

 

 

IEC No.:

[Import-Export Code No.]

0388199644

 

 

TIN No:

27160318214

 

 

GSTN :

[Goods & Service Tax Registration No.]

27AAACB2902M1ZT

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACB2902M

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Subject is engaged in the business of refining of crude oil and marketing of petroleum products. (Registered Activity)

 

 

No. of Employees :

12484 (Approximately)

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A++

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

 

Maximum Credit Limit :

USD 850000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a Government of India undertaking, is an integrated oil refining and marketing company. Government of India holds 54.93% equity stake in the company and balance was held by public. It is a well-established and a reputed company

 

For the financial year 2017, the company has increased its revenue from operations as compared to previous year and maintained average profitability margin of 3.98%.

 

The rating draw comfort from the strong financial profile of the company marked by a robust capital structure and debt protection metrics.

 

The ratings continue to reflect the strategic importance and expectation of continued support from the Government of India, established retail network, branding initiatives and strong operating efficiency.

 

These strengths are partially offset by exposure to project implements risks and limited pricing flexibility in the controlled price environment for certain products.

 

Share price are quoted high on stock exchange (share price of INR 427 with face value of INR 10).

 

Trade relations are reported as fair. Payments are reported to be regular and as per commitments.

 

In view of strong financial base and established market position, the company can be considered good for normal business dealings at usual trade terms and conditions.

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term Rating (AAA)

Rating Explanation

Highest degree of safety and carry lowest credit risk.

Date

April 10, 2017

 

Rating Agency Name

CRISIL

Rating

Short Term non- fund based bank facilities (A1+)

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

April 10, 2017

 

 

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 31-03-2016.

 

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 29.03.2018

 

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

 

INFORMATION DENIED

 

MANAGEMENT NON CO-OPERATIVE (91-22-22713000/ 4000)

 

 

LOCATIONS

 

Registered Office / LPG Business Head Quarters / Industrial and Commercial Business Head Quarters :

Bharat Bhawan, P. B. No. 688, 4 and 6, Currimbhoy Road, Ballard Estate, Mumbai – 400001, Maharashtra, India

Tel. No.:

91-22- 22713000/ 004/ 22714000

Fax No.:

91-22-22642112/ 22616793/ 22713874 / 22832646

E-Mail :

swapnasawant@bharatpetroleum.in

info@bharatpetroleum.in

ssc@bharatpetroleum.in

Website :

http://www.bharatpetroleum.com

www.bharatpetroleum.co.in

http://www.bharatpetroleum.in

 

 

Factory  :
  • Mumbai Refinery: Mahul, Mumbai – 400074, Maharashtra, India

 

  • Kochi Refinery : Ambalamugal, Ernakulam, Kochi – 682302, Kerala, India

 

  • Lubricant Plant

Wadilube Installation, Mallet Road, Mumbai – 400009, Maharashtra, India

 

  • 24, Parganas, Budge-Budge 743319

 

  • 35, Vaidyanatha Mudali Street, Tondiarpet, Chennai – 600081, Tamilnadu, India

 

 

Refinery :

Bharat Petroleum Refinery, Mahul, Chembur, Mumbai - 400074, Maharashtra, India

Tel. No.:

91-22-25543151

Fax No.:

91-22-25542970

 

 

Delhi Co-ordination Office:

ECE House, Post Box No.7, Connaught Circus, New Delhi - 110001, India

Tel. No.:

91-11-23316891

Fax No.:

91-11-23316894

 

 

Retail Business Head Quarters : 

Maker Towers E and F, 12th Floor, Cuffe Parade, Mumbai 400005, Maharashtra, India

Tel. No.:

91-22-22189172

Fax No.:

91-22-22182304

 

 

Lubricants Business Head Quarters :

Bharat Bhavan-II,  Ballard Estate,  Mumbai – 400001, Maharashtra, India

Tel. No.:

91-22-22713000/ 22714000

Fax No.:

91-22-22713801/ 25542970

 

 

Aviation Business Head Quarters : 

Plot Nos. A 5 and 6, Sector 1, Noida 201301, District Gautam Budh Nagar, Uttar Pradesh, India

Tel. No.:

91-120-24539155/ 24744820

 

 

DIRECTORS

 

AS ON 31.03.2017

 

Name :

Mr. Rajkumar Duraiswamy

Designation :

Managing Director

Address :

Flat No 8, Aditya, BPCL Staff Quarters Ranganathan Garden - 600040, Tamilnadu, India

Date of Birth:

02.08.1960

Qualifications:

B. Tech (Elect.) from IIT, Madras, PGDM from IIM, Bangalore

Date of Appointment :

01.10.2016

DIN No.:

00872597

 

 

Name :

Mr. Rajiv Bansal

Designation :

Additional Director

Address :

B-3/14, Safdarjang Enclave, New Delhi-110029, India

Date of Appointment :

28.11.2017

DIN No.:

00245460

 

 

Name :

Mr. Paul Antony

Designation :

Additional Director

Address :

A-6, Lower Millenium Apartments, Jagathy, Thycaud P.O. Thiruvananthapuram – 695014, Kerala, India

Date of Birth:

27.06.1958

Qualifications:

IAS, M.A. (Economics) from Delhi School of Economics, M.A. (Public Economic Management) from Birmingham University, UK

Date of Appointment :

19.04.2017

DIN No.:

02239492

 

 

Name :

Mr. Ramamoorthy Ramachandran

Designation :

Wholetime Director

Address :

Flat No-22, Block 4, Bpcl Staff Colony, Aziz Baug, Chembur Mumbai 400074, Maharashtra, India 

Date of Appointment :

01.08.2016

DIN No.:

07049995

 

Name :

Mr. Ramesh Srinivasan

Designation :

Wholetime Director

Date of Birth:

13.09.1958

Qualifications:

B.Sc. (Honors), M.B.A.

Address :

3B Jeevan Jyot, Setalwad Lane, Napean Sea Road, Near Kemps Corner, August Kranti Marg, Mumbai -400036, Maharashtra, India 

Date of Appointment :

01.03.2016

DIN No.:

07164250

 

Name :

Mr. Rajesh Kumar Mangal

Designation :

Director

Address :

482, Mahavir Nagar - Pratham, Durgapura, Ward No. 21, Jaipur – 302018, Rajasthan, India

Date of Appointment :

01.12.2015

DIN No.:

03033081

 

Name :

Mr. Gopal Chandra Nanda

Designation :

Director

Address :

Qtr. No-Cb-29, Bijupattnaik Chhak Tulasipur, Cuttack - 753008, Orissa, India

Date of Appointment :

01.12.2015

DIN No.:

06441034

 

Name :

Mr. Deepak Bhojwani

Designation :

Director

Address :

8B, Building-1, The Hibiscus Condominium Complex, Sector-50, Gurugram- 122002, Haryana, India

Date of Appointment :

01.12.2015

DIN No.:

07351577

 

Name :

Mr. Vishal Vinod Sharma

Designation :

Additional Director

Address :

113/B Churchgate Chambers Line, Near Nirmala Niketan, Mumbai -400020, Maharashtra, India

Date of Birth:

10.04.1974

Qualifications:

B.Sc. (Physics), EPBM from IIM, Calcutta

Date of Appointment :

09.02.2017

DIN No.:

01213441

 

 

Name :

Mr. Vinay Sheel Oberoi

Designation :

Additional Director

Address :

D-431, Defence Colony, Delhi-110024, India

Date of Appointment :

21.09.2017

DIN No.:

07943886

 

 

Name :

Mr. Sivakumar Krishnamurthy

Designation :

Additional Director

Address :

Flat No 12, Kailas Peddar Road, Mumbai-400026, Maharashtra, India

Date of Appointment :

01.05.2017

PAN No.:

AAOPS9293B

Date of Birth:

01.05.1960

Qualifications:

Chartered Accountant, Cost Accountant, Company Secretary.

DIN No.:

06913284

 

 

Name :

Thamizhisai Soundararajan

Designation :

Additional Director

Address :

7/4, Logaiah Colony, 4th Cross Street, Saligramam, Chennai-600095, Tamilnadu, India

Date of Appointment :

28.09.2017

DIN No.:

07949616

 

 

Name :

Mr. Padmakar Kappagantula

Designation :

Additional Director

Address :

Flat 21, Block 4, BPCL Staff Colony, Aziz Baug, Chembur, Mumbai-400074, Maharashtra, India

Date of Appointment :

01.02.2018

DIN No.:

08021800

 

 

KEY EXECUTIVES

 

Name :

Mr. Sivakumar Krishnamurthy

Designation :

Additional Director

Address :

Flat No 12, Kailas Peddar Road, Mumbai-400026, Maharashtra, India

Date of Appointment :

01.05.2017

Date of Birth:

01.05.1960

Qualifications:

Chartered Accountant, Cost Accountant, Company Secretary.

PAN No.:

AAOPS9293B

 

 

Name :

Venugopal Mani

Designation :

Company Secretary

Address :

Flat No. 14, Block No. 3, Bpcl Chembur Staff Colon Aziz Baug Chembur, Mumbai - 400074, Maharashtra, India 

Date of Appointment :

01.03.2017

PAN No.:

AAFPV7014A

 

 

Management

Mr. U. Krishna Murty Chief Vigilance Officer

Mr. A.K. Kaushik ED (IS) Group Refineries

Mr. Arun Kumar Singh ED (Retail)

Mr. C.J. Iyer ED I/C (Mumbai Refinery)

Ms. Dipti Sanzgiri ED (International Trade)

Mr. E.A. Vimalnathan ED (I & C)

Mr. I. Srinivas Rao ED (Gas)

Mr. J. Dinaker ED (Audit)

Mr. J.R. Akut ED (Bus. Dev. Initiatives) CS & BD

Mr. K.B. Narayanan ED (Information Systems)

Mr. K. Padmakar ED (HRD)

Mr. K. Ravi ED (West Coast Refinery)

Mr. M.M. Somaya ED (Lubes)

Ms. Monica Widhani ED (Aviation)

Mr. N. Manohar Rao ED (HSSE & Bio-fuel)

Mr. Prasad K. Panicker ED I/C (Kochi Refinery)

Mr. Pramod Sharma ED I/C (Corp.Strategy & Bus.Dev.)

Mr. P.S. Ramachandran ED (Projects), Kochi Refinery

Mr. R.P. Natekar ED (LPG)

Mr. R. R. Nair ED (HRS)

Mr. Rajiv Bakshi ED (Corporate Finance)

Mr. Rajamani Ramaswamy ED (Corporate Treasury)

Mr. S.K. Agrawal ED (Corporate Affairs)

Mr. Sharad K. Sharma ED (Supply Chain Optimization)

Ms. Sujata N. Chogle ED (HR), Mumbai Refinery

Mr. S. Vijayakumar ED (Legal)

Mr. V. Anand ED (Planning & Infrastructure)

Mr. A. Krishnaswamy CGM (Strategy), CS & BD, CO

Mr. A. K. Gidwani CGM (Network, Security & Projects)

Mr. Ashok K. Gupta Chief Procurement Officer (Mktg).

Mr. Babu Joseph CGM (Maintenance), Kochi Refinery

Mr. B.S. Parmar CGM (Vigilance)

Mr. C.K. Soman CGM (Operations) I/C, Kochi Refinery

Dr. D.C. Patra CGM (Planning)

Mr. Damien Gracious K.D. CGM (HSE), Kochi Refinery

Mr. G. Ananthakrishnan CGM (Taxation), CO

Mr. G. Krishnakumar Marketing Manager (Lubes), HQ

Mr. Gautam Mukerji CGM (Ops. & Logistics) Aviation

Mr. George Paul CGM (Project Tech) I/C, Kochi Refinery

Mr. Indranil Mitra CGM (Management Accounts)

Mr. J.S. Shah CGM (HR), Retail HQ

Mr. L.R. Jain CGM Pipelines (Ops.& Projects), Mumbai

Mr. M. A. Khan CGM (Coordination), Delhi

Mr. M.B. Pimpale CGM (Projects), Mumbai Refinery

Mr. Madhukar Bidani CGM Logistics (Retail) North

Mr. Murali Madhavan P. CGM (IREP Commissioning), Kochi Refinery

Mr. M. Prasanna Kumar CGM (Planning & Project Coordination)

Ms. Madhu Sagar CGM (Internal Coaching)

Mr. M.S. Patke CGM (I&C)

Mr. M.V. Prabhakaran CGM (HR) Kochi Refinery

Mr. M. Venugopal Company Secretary

Mr. Nori Prabhakar CGM (Brand & PR)

Mr. N. Vijayagopal CGM (Finance) I/C, Kochi Refinery

Mr. P.G. Ganesh CGM (Petchem), Kochi Refinery

Mr. P.K. Thampi CGM (Technical), Kochi Refinery

Mr. Pius Mathew CGM (Project Finance), Kochi Refinery

Ms. P. Rajeswari CGM (IS Services)

Mr. P.S. Ravi Head (Retail) South

Mr. Priyotosh Sharma CGM (Sales), Gas

Mr. P.V. Ravitej CGM (Operations) Mumbai Refinery

Mr. R.K. Panda CGM Sales Coordination (Retail) HQ

Mr. R. Narayanan CGM (IS Applications)

Mr. Ravi Pratap Singh CGM (Engineering & Projects)

Mr. R. Wadhawan CGM (E & C) Mumbai Refinery

Mr. S. Bhargava CGM (Corporate R&D Centre)

Mr. Santosh Kumar Head (Retail) West

Mr. Suresh K. Nair CGM Sales (LPG) HQ

Mr. Sudip Mallick CGM Logistics (LPG), HQ

Mr. Surjeet Mahalik Head (Retail) East

Mr. S.R. Krishnan CGM I/C (E & AS), Mumbai Refinery

Mr. S.S. Desai CGM (West Coast Refinery)

Mr. S. Somasekhar CGM (Advisory Eng.) Kochi Refinery

Mr. T. Peethambaran Head (Retail) North

Mr. Vijay Duggal CGM (Gas) Delhi

Mr. V. Jacob CGM (Quality Control Cell)

Mr. V. Venugopala Kurup CGM (West Coast Refinery)

Mr. Venkatesh Prabhu CGM (Finance), Retail HQ

Mr. V. Ramachandran CGM (Logistics) Retail HQ

Mr. V. Ranjan Marketing Manager (Aviation)

Mr. Y.V. Apte CGM (Projects & Performance Monitoring) Mumbai Refinery

Mr. Kani Amudhan N GM I/C (Marketing Corporate)

Ms. S. V. Kelkar GM (Employee Satisfaction Enhancement)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON DECEMBER 2017

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Promoter & Promoter Group

1178095019

54.31

(B) Public

991157725

45.69

Grand Total

2169252744

100.00

 

 

Statement showing shareholding pattern of the Promoter and Promoter Group

 

Category of Shareholder

No. of Shares

Percentage of Holding

A1) India

 

0.00

Central Government/ State Government(s)

1178095019

54.31

PRESIDENT OF INDIA

1178095019

54.31

Sub Total A1

1178095019

54.31

A2) Foreign

 

0.00

A=A1+A2

1178095019

54.31

 

Statement showing shareholding pattern of the Public shareholder

 

Category & Name of the Shareholders

No. of fully paid up equity shares held

Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)

B1) Institutions

0

0.00

Mutual Funds/

88122709

4.06

Foreign Portfolio Investors

478552555

22.06

Financial Institutions/ Banks

2676179

0.12

Insurance Companies

92446814

4.26

LIFE INSURANCE CORPORATIONS OF INDIA

74993713

3.46

Sub Total B1

661798257

30.51

B2) Central Government/ State Government(s)/ President of India

0

0.00

Central Government/ State Government(s)/ President of India

18666666

0.86

Sub Total B2

18666666

0.86

B3) Non-Institutions

0

0.00

Individual share capital upto INR 0.200 Million

48569889

2.24

Individual share capital in excess of INR 0.200 Million

10518140

0.48

Any Other (specify)

251604773

11.60

Bodies Corporate

43115569

1.99

BPCL Trust for Investment in Shares

202372422

9.33

NRI

2561801

0.12

Clearing Members

3554981

0.16

Sub Total B3

310692802

14.32

B=B1+B2+B3

991157725

45.69

 

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of refining of crude oil and marketing of petroleum products. (Registered Activity)

 

 

Products :

Item Code No.

Product Description

19201

Motor Spirit (MS)

19201

High Speed Diesel (HSD)

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

 

GENERAL INFORMATION

 

Suppliers :

 

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

Customers :

 

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

No. of Employees :

12484 (Approximately)

 

 

Bankers :
  • State Bank of India
  • Standard Chartered Bank
  • BNP Paribas
  • Union Bank of India
  • Corporation Bank
  • Bank of India
  • Deutsche Bank
  • ICICI Bank Limited
  • HDFC Bank Limited
  • IDBI Bank Limited

 

Banker Name

Not Divulged

Branch Address

Not Divulged

Person Name (With Designation)

--

Contact Number

--

Name of Account Holder

--

Account Number

--

Account Since (Date/Year of Account Opening)

--

Average Balance Maintained (If Possible)

--

Credit Facilities Enjoyed (If any)

--

Account Operation

--

Remarks (If any)

--

 

 

Facilities :

SECURED LOANS

31.03.2017

INR In Million

31.03.2016

INR In Million

LONG TERM BORROWINGS

 

 

Debentures

7.35% Secured Non- Convertible Debentures 2022 **

5498.000

0.000

Term Loan

Loan from Oil Industry Development Board **

13579.400

14248.700

SHORT TERM BORROWINGS

 

 

From banks

Working capital loans/Cash Credit *

876.000

239.600

From others

Collateralized Borrowings and Lending Obligation **

13500.000

0.000

Total

33453.400

14488.300

Note:

 

LONG TERM BORROWINGS

 

* The Corporation had allotted redeemable non-convertible 8.65% Debentures of face value of INR 700 Million on 8th October 2012 redeemable on 8th October 2017 with a put call option which was exercised on 8th October 2015. Accordingly Corporation has redeemed the debentures during the Financial Year 2015-16. These were secured by first legal mortgage by way of a Registered Debenture Trust Deed over the fixed assets of the Company, mainly Plant and Machinery at Mumbai Refinery. The relevant charge has been satisfied.

** The Corporation had allotted non-convertible 7.35% Debentures of face value of INR 550 Million on 10th March 2017 redeemable on 10th March 2022. These were secured by first legal mortgage by way of a Registered Debenture Trust Deed over the fixed assets of the Company, mainly Plant and Machinery at Mumbai Refinery.

*** Term Loan is secured by first legal mortgage mainly over Plant and Machinery at Mumbai Refinery and Kochi Refinery.

 

SHORT TERM BORROWINGS

 

* Secured in favour of the participating banks ranking pari-passu inter-alia by hypothecation of raw materials, finished goods, work-in-progress, book debts, stores, components and spares and all movables both present and future. [Refer Note No. 13 and 15]

 

** The Corporation has Collaterized Borrowing & Lending Obligations limits from Clearing Corporation of India Limited, the balance of which is INR 13500.000 Million as at 31st March 2017 (31st March 2016 : Nil and 1st April 2015 : Nil).

 

These are secured by 6.90% Oil Marketing Companies GOI Special Bonds 2026 of INR 22000.000 million (31st March 2016 : INR 24500.000 Million and 1st April 2015 : INR 24500.000 Million)

 

Auditors 1:

 

Name :

CNK and Associates LLP

Chartered Accountants

Address :

2, Samarth Apartments, Ground Floor, D.S. Bebrekar Road, off. Gokhale Road, (North), Dadar (West), Mumbai – 400028, Maharashtra, India

 

 

Auditors 2:

 

Name :

Borkar and Muzumdar

Chartered Accountants

Address :

21/168, Anand Nagar Om CHS., Anand Nagar Lane, Vakola, Santacruz (East), Mumbai – 400055, Maharashtra, India

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Joint Venture and Associate Companies
  • Indraprastha Gas Limited
  • Petronet India Limited *
  • Petronet CCK Limited #
  • Petronet CI Limited*
  • Petronet LNG Limited
  • Bharat Oman Refineries Limited
  • Maharashtra Natural Gas Limited
  • Central UP Gas Limited
  • Sabarmati Gas Limited
  • Bharat Stars Services Private Limited
  • (Including Bharat Stars Services (Delhi) Private Limited)
  • Bharat Renewable Energy Limited *
  • Matrix Bharat Pte. Limited
  • Delhi Aviation Fuel Facility Private Limited
  • Kannur International Airport Limited
  • GSPL India Gasnet Limited
  • GSPL India Transco Limited
  • Mumbai Aviation Fuel Farm Facility Private Limited
  • Kochi Salem Pipeline Private Limited
  • IBV (Brazil) Petroleo Ltda.
  • Brahmaputra Cracker and Polymer Limited
  • DNP Limited
  • Petroleum India International
  • BPCL-KIAL Fuel Farm Private Limited
  • Haridwar Natural Gas Private Limited
  • Goa Natural Gas Private Limited
  • FINO Paytech Limited
  • *Companies in the process of winding up
  • # Petronet CCK Limited has become Subsidiary w.e.f. 29th May 2015

 

 

CAPITAL STRUCTURE

 

AFTER 31.03.2017

 

Authorised Capital : INR 25000.000 Million

 

Issued Subscribed & Paid-up Capital : INR 21692.527 million

 

AS ON 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2500000000

Equity Shares

INR 10/- each

INR 25000.000 Million

 

 

 

 

 

Issued Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1446168496

Equity Shares

INR 10/- each

INR 14461.700 Million

 

Less: BPCL Trust for Investment in Shares

 

INR 1349.200 Million

 

Total

 

INR 13112.500 Million

 

Note:

 

iii The Corporation has only one class of shares namely equity shares having a par value of INR 10 per share. Each holder of equity shares is entitled to one vote per equity share. In the event of liquidation of the Corporation, the holders of equity shares will be entitled to receive the remaining assets of the Corporation in proportion to the

number of equity shares held.

 

The Corporation declares and pays dividend in Indian Rupees. The final dividend, if any, proposed by the Board

of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

 

iv During the Financial year 2016-17, the Corporation has issued Bonus Shares in the ratio of 1:1 by capitalization

of General Reserves. The total number of shares issued is 72,30,84,248 having face value of INR 10 each.

 

During Financial Year 2012-13, the Corporation had issued Bonus Shares in the ratio of 1:1 by capitalization of

General Reserves. The total number of Bonus Shares issued is 36,15,42,124 equity shares having face value of INR 10 each.

 

Reconciliation of the number of shares

 

Particulars

31.03.2017

Opening Balance

723084248

Shares Issued

 

--Bonus Shares

723084248

Shares Bought Back

--

Closing Balance

1446168496

 

Details of shareholders holding more than 5% shares

 

Name of shareholders

31.03.2017

 

% Holding

No. of shares

Government of India

54.93

794400240

BPCL Trust for Investment in shares

9.33

134914948

 

FINANCIAL DATA

[all figures are INR Million]

 

ABRIDGED BALANCE SHEET (STANDALONE)

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

13112.500

7230.800

7230.800

(b) Reserves & Surplus

283571.300

264356.100

217444.000

(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)

296683.800

271586.900

224674.800

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

137764.400

136856.900

117370.100

(b) Deferred tax liabilities (Net)

35017.100

22289.000

17082.600

(c) Other long term liabilities

13531.500

607.300

700.300

(d) long-term provisions

1451.600

11568.400

11086.000

Total Non-current Liabilities (3)

187764.600

171321.600

146239.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

72273.600

239.600

402.700

(b) Trade payables

113597.800

84307.900

124670.400

(c) Other current liabilities

240555.500

202179.700

165702.100

(d) Short-term provisions

9021.000

30258.400

35756.100

Total Current Liabilities (4)

435447.900

316985.600

326531.300

 

 

 

 

TOTAL

919896.300

759894.100

697445.100

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

312790.600

233778.000

202260.600

(ii) Intangible Assets

1582.500

899.900

890.000

(iii) Capital work-in-progress

112167.300

124027.500

76406.100

(iv) Intangible assets under development

4057.900

2151.800

250.700

(b) Non-current Investments

92411.100

78755.800

73020.500

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

37836.500

38648.400

40771.700

(e) Other Non-current assets

16469.200

877.000

834.600

Total Non-Current Assets

577315.100

479138.400

394434.200

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

53603.400

50981.100

50890.900

(b) Inventories

197980.100

136962.800

144578.500

(c) Trade receivables

47581.800

21650.200

25611.400

(d) Cash and cash equivalents

646.900

20673.500

13602.000

(e) Short-term loans and advances

706.500

10308.100

7862.200

(f) Other current assets

42062.500

40180.000

60465.900

Total Current Assets

342581.200

280755.700

303010.900

 

 

 

 

TOTAL

919896.300

759894.100

697445.100

 

 

PROFIT & LOSS ACCOUNT (STANDALONE)

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

2022105.700

1893033.300

2380869.000

 

Other Income

26006.800

20121.600

21999.600

 

TOTAL

2048112.500

1913154.900

2402868.600

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

677107.100

610324.400

944243.900

 

Purchases of Stock-in-Trade

1142200.900

1007320.000

1170517.100

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(55776.100)

7244.200

45133.200

 

Employees benefits expense

34294.600

28790.500

20856.000

 

Other expenses

115986.200

128791.600

116972.100

 

TOTAL

1913812.700

1782470.700

2297722.300

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

134299.800

130684.200

105146.300

 

 

 

 

 

Less

FINANCIAL EXPENSES

4958.700

5629.400

5831.000

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

129341.100

125054.800

99315.300

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION

18913.200

18543.000

25160.200

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

110427.900

106511.800

74155.100

 

 

 

 

 

Less

TAX

30034.900

32193.000

23310.000

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

80393.000

74318.800

50845.100

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

70899.700

123642.700

 

Commodity Derivative Income

 

479.800

0.000

 

TOTAL EARNINGS

97885.800

70899.700

123642.700

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials (including crude oil)

NA

436901.700

721394.900

 

Capital goods

NA

12384.100

4327.500

 

Components and spare parts (including packages, chemicals and
catalysts)

NA

1003.300

772.800

 

TOTAL IMPORTS

NA

450289.100

726495.200

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

61.31

102.78

70.32

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

21554.100

22661.100

13203.200

Cash generated from operations

109222.500

127649.600

205031.200

Net Cash from/(used in) Operating Activities

78819.300

101792.100

181833.400

 

 

 

    QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2017

(Unaudited)

30.09.2017

 (Unaudited)

31.12.2017

 (Unaudited)

 

1st  Quarter

2nd Quarter

3RD Quarter

Unaudited

30.06.2017

(Unaudited)

30.09.2017

 (Unaudited)

31.12.2017

 (Unaudited)

Net Sales

667663.700

641273.100

701951.600

Total Expenditure

655413.310

605997.200

670069.200

PBIDT (Excl OI)

12250.390

35275.900

31882.400

Other Income

6565.800

8004.000

7274.000

Operating Profit

18816.190

43279.900

39156.400

Interest

1788.600

2348.100

2002.000

Exceptional Items

NA

NA

NA

PBDT

17027.590

40931.800

37154.400

Depreciation

5892.000

6406.000

6774.300

Profit Before Tax

11135.590

34525.800

30380.100

Tax

3690.000

10951.800

8942.700

Provisions and contingencies

NA

NA

NA

Profit After Tax

7445.590

23574.000

21437.400

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

7445.590

23574.000

21437.400

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

8.59

4.17

3.93

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

42.50

87.44

92.96

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

22.79

19.02

21.52

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

0.68

0.95

0.73

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.31

0.36

0.38

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.65

0.63

0.66

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.78

0.59

0.58

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

1.47

1.17

1.45

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

1.45

1.33

1.25

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

27.08

23.21

18.03

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

 (PAT / Sales) * 100)

%

3.98

3.93

2.14

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

8.74

9.78

7.29

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

27.10

27.36

22.63

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

0.79

0.89

0.93

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.33

0.45

0.49

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.32

0.36

0.32

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

17.66

22.09

18.11

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

0.79

0.89

0.93

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 10/-

Market Value

INR 427/-

 

 

FINANCIAL ANALYSIS

[all figures are in INR  Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

7230.800

7230.800

13112.500

Reserves & Surplus

217444.000

264356.100

283571.300

Net worth

224674.800

271586.900

296683.800

 

 

 

 

Long-term borrowings

117370.100

136856.900

137764.400

Short term borrowings

402.700

239.600

72273.600

Current Maturities of Long term debt

13203.200

22661.100

21554.100

Total borrowings

130976.000

159757.600

231592.100

Debt/Equity ratio

0.583

0.588

0.781

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

2380869.000

1893033.300

2022105.700

 

 

(20.490)

6.818

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

2380869.000

1893033.300

2022105.700

Profit/ (Loss)

50845.100

74318.800

80393.000

 

2.14%

3.93%

3.98%

 

 

 

ABRIDGED BALANCE SHEET (CONSOLIDATED)

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

13112.500

6556.200

(b) Reserves & Surplus

 

295085.000

271376.500

(c) Share application money pending allotment in respect of Joint Venture

 

0.000

0.000

 

 

 

 

(2) Share Warrants in respect of Joint Venture

 

0.000

0.000

Minority Interest

 

19581.900

16783.200

Total Shareholders’ Funds (1) + (2)

 

327779.400

294715.900

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

232553.300

210972.200

(b) Deferred tax liabilities (Net)

 

40548.000

30719.700

(c) Other long term liabilities

 

817.600

36492.400

(d) long-term provisions

 

15602.000

16531.600

Total Non-current Liabilities (3)

 

289520.900

294715.900

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

82177.100

244.000

(b) Trade payables

 

113824.700

83523.800

(c) Other current liabilities

 

266803.500

181500.800

(d) Short-term provisions

 

10757.000

9516.900

Total Current Liabilities (4)

 

473562.300

274785.500

 

 

 

 

TOTAL

 

1090862.600

864217.300

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

334389.700

251901.100

(ii) Intangible Assets

 

2448.900

1688.700

(iii) Capital work-in-progress

 

117627.200

127451.500

(iv) Intangible assets under development

 

50711.500

47137.800

Goodwill on consolidation

 

0.000

0.000

(b) Non-current Investments

 

156543.400

40747.500

(c) Deferred tax assets (net)

 

1275.100

0.000

(d)  Long-term Loan and Advances

 

33209.700

62378.700

(e) Other Non-current assets

 

15556.300

18445.500

Total Non-Current Assets

 

711761.800

549750.800

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

56727.900

53258.200

(b) Inventories

 

211967.800

146437.000

(c) Trade receivables

 

48037.500

22168.900

(d) Cash and cash equivalents

 

18845.400

42023.700

(e) Short-term loans and advances

 

781.700

632.000

(f) Other current assets

 

42740.500

49946.700

Total Current Assets

 

379100.800

314466.500

 

 

 

 

TOTAL

 

1090862.600

864217.300

 

 

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

 

 

PARTICULARS

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

Income

 

2012506.600

1878146.000

 

Other Income

 

20477.500

15958.400

 

TOTAL

 

2032984.100

1894104.400

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

 

751121.600

675295.000

 

Purchases of Stock-in-Trade

 

1021311.700

902402.700

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

 

(58323.800)

13048.200

 

Employees benefits expense

 

36690.800

29620.600

 

Share in Profit of Associates

 

(9433.900)

(3510.100)

 

Other expenses

 

126581.600

128408.500

 

TOTAL

 

1867948.000

1745264.900

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

165036.100

148839.500

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

6963.600

6804.900

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

158072.500

142034.600

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION

 

21076.400

20718.700

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

136996.100

121315.900

 

 

 

 

 

Less

TAX

 

41926.400

40427.200

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

 

95069.700

80888.700

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

66.51

57.84

 

 

LEGAL CASES

 

CASE DETAILS

BENCH:-BOMBAY

 

Presentation Date:-

11/01/2017

 

Lodging No.:-

WPL/88/2017

Filing Date:-

11/01/2017

Reg. No.:-

WP/465/2017

Reg. Date:-

27/02/2017

 

 

Petitioner:-

TASHKENT PREMISES CO-OPERATIVE SOCIETY LIMITED

 

Respondent:-

BHARAT PETROLEUM CORPORATION LIMITED

 

 

Petn.Adv.:-

SEEMA K CHPDA AND A.M GOKHALE (0)

 

 

District:-

MUMBAI

 

 

Bench:-

DIVISION

Status:-

Pre-Admission

Category:-

WRIT PETITION(OTHERS)

 

Next Date:-

05/05/2017

Stage:-

FOR ADMISSION

 

Coram:-

HON'BLE SHRI JUSTICE NARESH H. PATIL

 

HON'BLE SMT. JUSTICE DR. SHALINI PHANSALKAR-JOSHI

 

 

Act :-

Mah. Regional Town Planning Act

 

 

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

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

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

Yes 

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

Yes

32

Litigations that the firm/promoter involved in

Yes

33

Market information

---

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

 

CORPORATION OVERVIEW

 

The Company “BPCL” or “the Corporation” was incorporated on 3rd November, 1952. BPCL is a Government of India Enterprise listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited. The Corporation is engaged in the business of refining of crude oil and marketing of petroleum products. It has refineries at Mumbai and Kochi, LPG bottling plants and Lube blending plants at various locations. The Corporation’s marketing infrastructure includes vast network of Installations, Depots, Retail Outlets, Aviation Fueling Stations and LPG distributors.

 

 

COMPANY PERFORMANCE

 

During the year 2016-17, the crude throughput at BPCL’s Refineries at Mumbai and Kochi was 25.39 MMT as against 24.12 MMT achieved in 2015-16. The Market sales of the Corporation grew by 3% to 37.68 MMT in 2016-17 from 36.53 MMT in 2015-16.

 

 

COMPANY PERFORMANCE

 

Ministry of Corporate Affairs (MCA) vide their notification dated 16th February 2015 notified the Companies (Indian Accounting Standards) Rules, 2015 applicable for accounting periods beginning on or after 1st April 2016 for all listed companies having net-worth of INR 500.000 Million or more. Accordingly for BPCL, Ind AS is applicable from financial year 2016-17. The transition was carried out BPCL’s Gross Revenue from operations for 2016-17 stood at INR 2420478.200 Million reflecting an increase of 11.08% over the previous year’s revenues of INR 2178947.700 Million. The profit before tax for the year was INR 110427.900 Million as compared to INR 103910.400 Million in 2015-16. After providing for Tax, (including deferred tax) of INR 30034.900 Million, as against INR 33346.800 Million during the last year, the Profit after Tax for the year stood at INR 80393.000 Million as against INR 70563.600 Million in 2015-16.

 

The earnings per share amounted to INR 61.31 in 2016-17 as compared to INR 53.81 in 2015-16. The Earning per share is after adjustment of Bonus Share issued during 2016-17 and BPCL Trust for Investment in Shares. Internal Generation during the year was lower at INR 57161.000 Million as against INR 71135.500 Million in 2015-16 due to higher dividend declared by the Corporation during 2016-17.

 

As per Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 the top five hundred listed entities shall formulate a dividend distribution policy. Accordingly, Dividend Distribution policy has been adopted to set out the parameters and circumstances that will be taken into account by the Board in determining the distribution of Dividend to its shareholders and/or retaining the profit into the business.

 

BPCL’s contribution to the exchequer by way of Taxes and Duties during 2016-17 amounted to INR 847588.400 Million as against INR 677191.700 Million in the previous Financial Year. As on 31st March 2017, BPCL’s Total equity stands at INR 296683.800 Million as against the previous year’s figure of INR 273329.600 Million.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

Economic Developments : Towards Recovery

 

The world economy appears to be heading towards a recovery, though it may be at a slow pace. The growth in the global Gross Domestic Product (GDP) is expected to hover around 3% in the light of a moderate revival in investment, rising industrial production and global trade resulting in enhanced confidence levels and strengthening economic indicators. While the sustainability of the trends remains to be seen, these have brightened the global prospects notably and provide a robust foundation for future growth. 

 

Steady revival of global investment is imperative for a sustained and balanced growth. Even though lobal investment is witnessing an upturn, a prolonged spell of weak investment growth has adversely affected the production capacities leading to slowdown in trade volumes. This has further been aggravated by the high levels of economic and policy uncertainty in many countries. However, with diminishing perceptions of risk in recent months, it is expected that the general optimism in the global developments will translate into significant improvements in the world economy.

 

Economic growth has been largely supported by the growth in several developed countries. The pace has picked up in countries like the United States (US), the United Kingdom (UK), Germany and Spain due to strong domestic demand, whereas Japan saw an upside on account of increased level of exports. East and South Asia remain the world’s most dynamic regions, benefiting from robust domestic demand and supportive macroeconomic policies. However, the economic performance across emerging and developing markets has been mixed. While China appears to be stabilizing after a period of deceleration and Russia is performing better as compared to a year ago, it is the economic performance of South Africa, Brazil, Mexico and Turkey that are cause for concern. The growth story in India has been interesting and it remains to be seen how India will perform to meet expectations.

 

The rising strength of US economy is primarily driven by the increase in consumer spending. This may be traced to the largest wage gains that the US has seen in a long time. It is possible that this could lead to accelerated inflation if not supported by growth in productivity. Further, the turbulent policy environment in the US needs to be assuaged by the policy goals of infrastructure spending, tax reforms and regulatory reforms. With the current government proposing these developments, it will be interesting to observe, how the world’s largest economy unveils its economic strategies.

 

In the Eurozone, the situation remains complex. With the labour market conditions improving and a reducing unemployment rate, there is a boost in consumption thus leading to overall growth as well as controlling deflation that had plagued the economy for some time. However, the political risks associated with Brexit and populistic parties gaining power in European countries could challenge the recovery in the long term. Japan’s economy is growing, despite the demographics characterized by a declining strength of the work force due to the aging of the population. The growth is fuelled largely by increase in exports. Growth in consumer spending was moderate. The multi-pronged approach of the government through monetary and fiscal stimulus and structural reform has resulted in low borrowing costs, weakening Japanese yen, rising asset prices and even a marginal increase in inflation. The Chinese economy has been growing at a reasonable pace, driven mainly by investments. Though there has been growth, it is not commensurate with the increase in investments. However the rising debt levels have led to an increased risk of default in debt repayment which have raised concerns in the financial markets. Signs of recovery are evident in Russia. There has been an improvement in domestic demand driven by moderate increase in global oil prices, together with a sharp decline in inflation. Yet the recovery is slow. The economy is subject to a weakened fiscal spending, reduced investments due to uncertainties, economic sanctions and a weak banking sector. The situation in Brazil continues to remain grim. While the central bank has been able to ease the monetary policy due to lower inflation and the rising currency has yielded increasing confidence, the practical risks associated with the enactment of reforms remains substantial. Over the years, Africa has been experiencing growth due to the commodity cycle and strong demand for their resources, even though some of the African economies have been structurally weak. Whereas external factors have contributed to this growth, the continent continues to be weighed down by lack of connectivity, low regional integration, gaps in knowledge networks and trained manpower. This is evident in the regional disparities with respect to growth. Regions heavily dependent on the commodity cycle have reported favorable performance. The other regions have recorded moderate levels of growth.

 

However, it is expected that the entire continent will deliver superior performance in the coming days. Economic conditions in India remain robust, supported by sound fiscal and monetary policies and the implementation of key reforms. The recent decision of the Government on the demonetization of high denomination currency notes has laid the foundation for digitalization in India. The Indian economy exhibited immense resilience during 2016-17 and is estimated to grow at 7.1% during 2016-17 despite weak global growth, increasing global uncertainty and the currency demonetization in November 2016. While there has been some impact on account of demonetization, the same is likely to be transient. With being India is on the path of slowly transforming itself into a digital, cashless economy. The number of digital transactions is growing at a rapid pace. The government has also taken active measures to ensure that the inconvenience caused to the common man is reduced to the minimum. Several initiatives have been taken to promote digital transactions including launch of new apps, incentives for using digital modes and widespread education programs. However, there is a need to ensure that adequate controls are in place to guard against risk of cybercrimes. During 2016-17, India has witnessed acceptable levels of inflation, averaging to around 4.5% based on the Consumer Price Index (CPI) for the entire year. This may increase marginally during 2017-18. However, the underlying risks remain including uncertainty in crude oil prices, exchange rate volatility due to global financial market developments, implementation of the 7th Central Pay Commission award and introduction of the Goods and Services Tax (GST). Other factors influencing inflation would include the accelerated pace of remonetization, government reforms for stepping up of capital expenditure, boosting the rural economy, attracting foreign direct investment, expected increase in global trade and a normal monsoon. The Indian rupee averaged INR 67.07 against the US dollar, depreciating by 2.5% over the previous year. Expected rise in interest rates in the US, low crude prices and demonetization caused the INR to weaken against the US dollar, especially during the period of November 2016 to January 2017. Yet, the stability in the government due to result of elections in major States, have evinced renewed confidence levels in the foreign investors. Encouraging growth rates in India and the change of policy stance of the RBI from “accommodative” to “neutral” have given a significant boost to the INR. The stock market continued to remain volatile during the year. Anticipated interest rate hikes in the US, uncertainty over the impact of demonetization on economic growth and corporate earnings, market reactions to the US presidential election results and general global slowdown have affected the performance of the Indian stock market. However, the markets have recovered well based on better than expected GDP numbers and GST implementation.

 

The NSE Nifty 50 and BSE Sensex ended the year 19% and 17% higher respectively, as compared to the previous year. Going forward, the Indian economy is expected to perform well. Strong economic fundamentals, implementation of reforms at an accelerated pace, fiscal consolidation, a stable government, enhanced investor confidence, growing digitization, resilience of the INR to international currency fluctuations and growth in the Indian economy in an environment of global uncertainty are all factors indicating a business optimism and robust economic growth.

 

 

OUTLOOK

 

India has surpassed Japan in the consumption of primary energy and now stands as the 3rd largest consumer of energy in the world registering a growth of 5.5% over the previous year. With plans on the West Coast Refinery gaining momentum, India is emerging as a refining hub. However, as India is long on refining, storage, distribution and marketing of products will have to be accurately planned. The declining trend in oil prices continued in 2016-17. This bodes well for the Indian economy given the increased dependence on oil and petroleum products as a source of energy. The fall in prices has also kept the price of diesel under control, contributing significantly to ensuring healthy levels of inflation. The subsidy burden for the central exchequer has reduced by 19% to INR 276290.000 million as compared to the previous year, with the oil PSUs being fully compensated for throughout the year. While the decline in crude prices has reduced the prices of fuel in India and thus the subsidy burden, permitting the emergence of market determined prices based on established pricing models, it has also encouraged the private players to perform more aggressively. During 2016- 17, private players gained a market share of more than 10% of the overall market for petroleum products. Robust infrastructure is a fundamental requirement for any industry and more so in the Oil & Gas sector due to the hazardous nature of the product. India has made several inroads in upstream, has an impressive refining capacity which is slated to further increase and has made significant progress in storage, especially with the strategic crude oil storage plans, a strong distribution network and reasonable road infrastructure to facilitate transportation of products.

 

However, there is an urgent need to enhance the import infrastructure, especially for the import of LPG. While a focused approach has been adopted to address this issue, it will be a while before India will have a comprehensive robust infrastructure. Demonetization in November 2016 has set the stage for digitalization in the country. This has been a significant decision that was implemented by the Government of India and has catapulted the country onto a digital platform. With increasing number of digital transactions, India is getting slowly but surely accustomed to a cashless mode of payment. What remains a challenge is, given the combustible nature of petroleum products, how safely digital transactions can be completed in the petrol stations. Another challenge will be to ensure the end-to-end security of these transactions. Another major step that is being taken by the Indian Government is with regard to roll out of GST with effect from 1st July 2017. The multi-stage, destination-based tax that will be levied on every value addition will impact the Indian Oil & Gas Industry in a unique manner, as not all petroleum products are covered under GST. This implies that there will be an incidence of non-recovery of input tax credit thus resulting in an increased cash outflow. The exact financial impact can be ascertained and analyzed only when sufficient data is available and once more clarity emerges on how such non-recoveries of input tax credit will be addressed. India is at the threshold of a major transition. Being one of the fastest growing economies in the world with a reasonable growth in energy consumption, India is poised to take on the challenges of intensified growth. In such an environment, BPCL is very well placed to contribute to the development of the Nation. Over the years, BPCL has created tremendous value for all stakeholders and continues in its endeavor to be a leading Energy Company in the country.

 

 

AWARDS AND RECOGNITION

 

In the prestigious Fortune Global 500 list for 2016, BPCL’s rank is 358. BPCL’s rank is 583 in the Forbes Global 2000 list for 2017, a significant leap from the 650 rank of 2016. For its outstanding global, financial and industry performance, BPCL has been ranked among the top 20 Oil and Gas Refining and Marketing companies in the Platts Top 250 Global Energy Company Rankings for 2016. BPCL ranks 3rd in Oil & Gas Refining and Marketing in the Asia/Pacific Rim, 7th in Oil & Gas Refining and Marketing globally and 11th in overall performance in the Asia/Pacific Rim. On an overall global performance, BPCL has been ranked 35th. BPCL was declared as the winner of “SAP ACE Awards 2016” under the Category “Leveraging Analytics Large Enterprises” for implementation of “Migration to BW on HANA” system. SAP ACE (Award for Customer Excellence) is a customer awards process that recognizes & rewards SAP customers who have implemented and leveraged SAP solutions well. Based on a study conducted in 217 of the ET – 500 companies by Futurescape and IIM – Udaipur; BPCL has been ranked 9th in the “The Best Companies for CSR” list amongst 167 private companies and 50 public sector companies. The ranking was on the basis of four main pillars: Governance, Disclosures, Stakeholder engagement and Sustainability. BPCL is the only PSU figuring in the top 10 list and it also tops the list for Business Responsibility across sectors. BPCL has featured among the “Top 10 Companies for CSR” list for the second year in a row. BPCL Uran Terminal received the Certificate of Merit from National Safety Council (NSC) – Maharashtra Chapter for Meritorious Performance in Industrial Safety during 2015 in Storage Handling and Distribution of Petroleum Products industrial group. Bakania LPG Plant also bagged the ‘Shrestha Industry Award’ for the year 2015 from NSC for the third consecutive year. NSC, Tamil Nadu Chapter,  which organizes State Level Health & Safety Awards, has selected our Chennai LPG Plant for an Appreciation Award in recognition of its commitment and efforts in promoting Safety, Health & the Environment. BPCL has been felicitated with the Special Commendations “Oil & Gas Pipeline Transportation–Company of the Year 2015” Award in August 2016 for the special efforts and excellent overall performance in the growth of pipeline infrastructure and capacity utilization for transportation of hydrocarbons. This was conferred upon the Mumbai-Manmad-Bijwasan Pipeline, connecting commercial & national capitals of India and meeting energy needs of our valued customers in six states en-route. Mumbai Refinery was awarded the prestigious Petrotech 2016 trophy for the ‘Replacement of Old Crude & Vacuum Distillation Units by CDU 4’ project. BPCL Staff Colony, Chembur made its mark in the Swachh Society Awards-2016, initiated by the ICICI Bank, by winning the ‘Swachh Society Award in Large Society category as a Winner (Silver)’ amongst 7093 residential societies. Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) has given Awards to Industries who have made maximum efforts to reduce energy consumption. In the Industrial category (having connected load up-to 1 MW), the 2nd prize was received by Lucknow LPG Plant and the 3rd prize by Allahabad LPG Plant. BPCL was commended with the Confederation of Indian Industry (CII) ‘Supply Chain and Logistics Excellence’ (SCALE) Awards - Exemplary position under the Oil, Gas and Petroleum Category.

 

Mumbai Refinery made its mark in the ‘Global Performance Excellence Award (GPEA) 2016, conducted by the Asia Pacific Quality Organization (APQO), by winning the ‘Quest for Excellence’ Award. This is the Third Award amongst the ‘Large Manufacturing Category’ under GPEA. Mumbai Refinery bagged three INSSAN awards viz. the Best Suggestion, Best Slogan (English) and Best Slogan (Hindi) at the 27th INSSAN convention. Confederation of Indian Industry (CII) conferred on BPCL the ‘Significant Achievement in HR Excellence’ Award for the year 2016 – the highest level of recognition in this edition, at the 7th National HR Excellence Award Confluence. BPCL has scored the highest amongst all the companies that participated in this edition. BPCL also bagged the Award for Learning & Development and was the only organization recognized by CII in this category. Mumbai Refinery received the prestigious Construction Industry Development Council (CIDC) Viswakarma Award-2017 in the category of ‘Best Construction Project’ for its NHT/ISOM Project. Kochi Refinery also received the CIDC Viswakarma Award 2017 in the category ‘Achievement Award for Construction Health, Safety & Environment.’ These awards recognize the work of individuals and organizations, to encourage truly successful efforts that have made a mark on the industry in terms of delivering better outputs & processes and creating higher benchmarks for the industry to help in nation building. Mumbai Refinery’s commitment towards sustainability was recognized by it receiving the ‘Apex Award’ (Highest) under the prestigious ‘India Green Manufacturing Challenge (IGMC) – 2016’ conducted by the International Research Institute for Manufacturing (IRIM). Kochi Refinery has won the Exemplary Performance Award under ‘Integrated Water Management’ Category for ‘BPCL Township’, Kochi Project in the awards instituted by Green Rating for Integrated Habitat Assessment (GRIHA Council) along with The Energy and Resources Institute (TERI). BPCL Corporate R&D Centre received “Innovation Award 2015/16 -Best Innovation in R&D” instituted by Ministry of Petroleum and Natural Gas for development of “BPMARRK” - An Innovative methodology for prediction of detailed refining characteristics of crude oil”. Mumbai Refinery Medical Center Team received the Global HR Excellence Award under the category “Award for Managing Health at Work” during the Silver Jubilee year Conference of World HRD Congress. Mumbai Refinery has been conferred the “Challenger’s Award” under the prestigious “Sustainability 4.0 Awards-2017” conducted jointly by Frost & Sullivan and TERI (The Energy & Resources Institute), as a recognition for its Sustainability initiatives. BPCL’s Integrated Data Centre (IDC) Infrastructure case study was adjudged as the Winner amongst 200 tough competitors in the ‘Data Center Design Management’ category of awards organized by NDTV & UBS Transformance at the NDTV Data Centre Summit and Awards at ITC Gardenia, Bengaluru. Mumbai Refinery’s Employee Health Management System entry was awarded the First Prize in the 5th International Best Practice Competition, conducted by the Centre for Organizational Excellence Research, New Zealand. BPCL’s Annual Report has been awarded the First Prize at the prestigious SCOPE Corporate Communication Excellence Awards 2016. Petro Plus, our in-house magazine, won the Second Runner-up prize at the celebrated in-house Communication Excellence Awards 2016. BPCL also won the Silver Award for Petro at the 56thAnnual Awards of the Association of Business Communicators of India. 

 

 

UNSECURED LOAN:

 

PARTICULARS

31.03.2017

INR In Million

31.03.2016

INR In Million

LONG TERM BORROWINGS

 

 

From banks

Foreign Currency Loans - Syndicated

21423.700

39799.700

Term loan

20000.000

2500.000

Bonds

4.625% US Dollar International Bonds 2022

32226.000

33166.500

4% US Dollar International Bonds 2025

32112.800

33166.500

3% Swiss Franc International Bonds 2019

12924.500

13733.000

Term Loan

Loan from Oil Industry Development Board

0.000

242.500

From banks

 

 

Foreign Currency Loans

57897.600

0.000

Total

176584.600

122608.200

 

 

INDEX OF CAHREGS:

 

SNO

SRN

CHARGE ID

CHARGE HOLDER NAME

DATE OF CREATION

DATE OF MODIFICATION

DATE OF SATISFACTION

AMOUNT

ADDRESS

1

G43374685

100102375

SBICAP TRUSTEE COMPANY LIMITED

19/04/2017

-

-

5500000000.0

202, MAKER TOWER E,CUFFE PARADEMUMBAIMH400005IN

2

G03303245

10493295

OIL INDUSTRY DEVELOPMENT BOARD

11/04/2014

30/03/2016

-

19977500000.0

301, WORLD TRADE CENTREBABAR ROADNEW DELHIDL110001IN

3

A66875428

10079177

STATE BANK OF INDIA

16/11/2007

03/08/2009

-

100000000.0

STATE BANK BHAVAN,MADAM CAMA ROADMUMBAIMH400021IN

4

Y10266486

90165239

STATE BANK OF INDIA

03/10/1997

-

-

2468000000.0

SERCURITIES AND SERVICES DIVISIONMUMBAI MAIN BRANCH; STATE BANK BUILDING; M.S. MARGMUMBAIMH400023IN

5

A58670241

90162015

STATE BANK OF INDIA

09/01/1987

27/02/2009

-

100000000000.0

STATE BANK BHAVANMADAM CAMA ROADMUMBAIMH400021IN

6

G04391645

90164106

STATE BANK OF INDIA

30/01/2001

-

12/05/2016

4000000000.0

VOLTAS HOUSE; 23; J.N. HEREDIA MARGBALLARD ESTATEMUMBAIMH400001IN

7

C69107118

10400513

SBICAP TRUSTEE COMPANY LIMITED

05/01/2013

-

03/11/2015

7000000000.0

202, MAKER TOWER, 'E', CUFFE PARADE,COLABA,MUMBAIMH400005IN

8

B63092373

10194506

STATE BANK OF INDIA

23/12/2009

-

08/11/2012

10000000000.0

MUMBAI MAIN BRANCH BUILDINGMUMBAI SAMACHAR MARG, FORTMUMBAIMH400001IN

9

B25372335

10232912

STATE BANK OF INDIA

23/07/2010

-

28/10/2011

10000000000.0

MUMBAI MAIN BRANCH BUILDINGMUMBAI SAMACHAR MARG, FORTMUMBAIMH400001IN

10

A89660393

10151183

STATE BANK OF INDI

05/03/2009

-

29/06/2010

10000000000.0

MUMBAI MAIN BRANCH BUILDINGMUMBAI SAMACHAR MARGMUMBAIMH400001IN

 

 

CONTINGENT LIABILITIES:

 

(INR in Million)

PARTICULARS

31.03.2017

In respect of Income Tax matters Other Matters :

755.800

Claims against the Corporation not acknowledged as debts * :

 

Excise and customs matters

15234.100

Service Tax matters

1593.100

Sales tax matters

82964.000

Land Acquisition cases for higher compensation

15974.400

Others

3752.500

Claims on account of wages, bonus / exgratia payments in respect of pending court cases

190.900

Guarantees

79.000

* These include INR 60587.400 Million (31st March 2016: INR 50170.300 Million, 1st April 2015: INR 41638.900 Million) against which the Corporation has a recourse for recovery and INR 983.500 Million (31st March 2016: INR 1043.200 Million, 1st April 2015: INR 499.300 Million) which are on capital account.

 

 

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS DECEMBER 31, 2017

 (INR In Million)

PARTICULARS

3 Months

9 Months

 

31.12.2017

30.09.2017

31.03.2017

 

[Unaudited]

[Unaudited]

[Unaudited]

1. Income from Operations

 

 

 

Net Sales/income from operations

701951.600

641273.100

2010952.700

Other Operating Income

7274.000

8004.000

21779.500

Total income from operations (net)

709225.600

649277.100

2032732.200

 

 

 

 

Expenses

 

 

 

Cost of materials consumed

214498.900

174285.200

560374.500

Purchases of stock-in trade

314636.400

291928.100

927927.900

Changes in inventories of finished goods. work-in-progress and stock in trade

1201.800

(10011.900)

15879.000

Employee benefits expense

7765.800

8886.500

24739.000

Depreciation and Amortization Expenses

6774.300

6406.000

19072.300

Other Expenses

36178.300

32888.200

102344.500

Finance Costs

2002.000

2348.100

6138.700

Excise Duty

95788.000

108021.100

300214.800

Total expenses

678845.500

614751.300

1956690.700

Profit/ (Loss) from ordinary activities after finance cost but before exceptional items

30380.100

34525.800

76041.500

Exceptional items

0.000

0.000

0.000

Profit/ (Loss) from ordinary activities before tax

30380.100

34525.800

76041.500

Tax expenses

8942.700

10951.800

23584.500

Net Profit / (Loss) from ordinary activities after tax

21437.400

23574.000

52457.000

Extraordinary item (net of tax expense)

0.000

0.000

0.000

Net Profit / (Loss) for the period

21437.400

23574.000

52457.000

Comprehensive Income

924.200

2061.500

1484.900

Net Profit/ (Loss) after taxes, minority interest and share of profit/(loss) of associates

22361.600

25635.500

53941.900

 

 

 

 

Paid up equity share capital (Face Value of INR 10/-each)

19668.800

19668.800

19668.800

Reserve excluding Revaluation Reserve as per Balance Sheet of previous accounting year

- 

- 

- 

Earnings per share (before extraordinary items) of INR 10/- each (not annualized):

- 

- 

- 

(a) Basic

10.90

11.99

26.67

 

 

NOTE:

 

  1. The above results have been reviewed and recommended by the Audit Committee at its meeting held on 9th February 2018 before submission to the Board. 
  2. The market sales for the nine months ended 31st December 2017 was higher at 30.48 MMT when compared to 28.42 MMT achieved during the corresponding period of previous year. Increase is mainly in MS - Retail (7.68%), HSD-Retail (3.41%) and LPG (10.32%). 
  3. The Average Gross Refining Margin (GRM) for the nine months ended 31st December 2017 is 6.97 USD per barrel (April - December 2016: 5.03 USD per barrel). The Average Gross Refining Margin (GRM) for the quarter ended 31st December 2017 is 7.89 USD per barrel (October – December 2016: 5.90 USD per barrel). 
  4. The Corporation has accounted compensation towards sharing of under-recoveries on sale of sensitive petroleum products of INR 5032.900 million by way of subsidy for the current period (April – December 2016: INR 8859.000 million) as Revenue from operations and Nil under-recovery has been absorbed by the Corporation on this account during the reported periods. 
  5. Other Income for the nine months ended 31st December 2017 includes INR 1132.300 million towards gain on account of foreign currency transactions and translations. During the nine months ended 31st December 2016, Other Expenses includes INR 3006.000 million towards loss on account of foreign currency transactions and translations. 
  6. During the quarter ended September 2017, the Corporation had issued and allotted 72,30,84,248 ordinary shares of INR 10/- each, as fully paid up Bonus Shares in the proportion of 1 (One) Bonus Share of INR 10/- each for every 2 (two) existing ordinary shares of INR 10/- each. Further Shares held under “BPCL Trust for Investments in shares” of face value INR 2023.700 million (pre bonus INR 1349.100 million) have been netted off from the paid-up equity share capital. Accordingly the Earnings Per Share (EPS) has been restated for all the periods. 
  7. Pursuant to the presidential directives issued on 13.10.2017, the Corporation is in the process of implementation of pay revision of employees which is effective from 01.01.2017. The Corporation has already provided for estimated liability on this account and does not anticipate any material change in liability on this account. 
  8. Goods and Services Tax (GST) has been implemented w.e.f 01.07.2017 wherein some of the petroleum products have come under its ambit. Accordingly, GST is being levied on these products as against Excise Duty applicable hitherto. Since, excise duty is included in revenue while GST is not, thus to ensure comparability, revenue excluding excise duty on GST applicable products in respect of the reported periods is given below: 

 

Particulars Quarter ended Nine months ended Year ended 

 

  1. The corporation operates in a single segment viz. downstream petroleum sector. As such reporting is done on a single segment basis. 
  2. The Auditors have completed limited review of the financial results of the corporation for the quarter ended 31st December 2017. 
  3. The Board at its meeting held on 09th February 2018 declared interim dividend of INR 14 /- per equity share. 
  4. Figures relating to corresponding periods have been regrouped wherever necessary to conform to current period figures. 


The above unaudited results of Bharat Petroleum Corporation Limited for the Quarter and Nine months ended 31st December 2017 have been approved by the Board at its meeting held on 9th February 2018.


For and on behalf of the Board of Directors


Place: New Delhi K. Sivakumar  

Date: 9th February 2018 Director (Finance) 

DIN No: 06913284 

 

 

FIXED ASSETS:

 

Tangible Assets

 

·         Land

·         Buildings including Roads

·         Plant and Equipments

·         Furniture and Fixtures

·         Vehicles

·         Office Equipments

·         Railway Sidings

·         Tanks and Pipelines

·         Dispensing Pumps

·         LPG Cylinders and Allied Equipments

 

Intangible Assets

 

  • Right of Way
  • Software/Licenses
  • Development Rights
  • Process Licenses

 

 

 

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

 
Unit

INR

US Dollar

1

INR 65.04

UK Pound

1

INR 92.28

Euro

1

INR 80.62

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Analysis Done by :

PSD

 

 

Report Prepared by :

MTN

 

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

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.