Bongaigaon Refineries and Petrochemicals (BRPL) has engaged ICICI Securities and Finance Co (I-Sec) to conduct a financial analysis and make recommendations for the capital restructuring of the company.
The company is exploring the possibility of roping in an upstream oil major for a strategic alliance.
ICICI Securities and Finance Co will focus on four main areas on which it will make recommendations. These are:
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lFinancial analysis and capital restructuring of the company.
lMarketing infrastructure for both petrochemical and petroleum products.
lPossibility of having a strategic alliance with an upstream oil major.
lReport of the disinvestment commission on Bongaigaon Refineries and Petrochemicals.
The study assumes significance in view of the present scenario when the administered price mechanism is being dismantled.
Auditors J L Sengupta & Co have mentioned in the company's annual report, that the firm has deposited Rs 24 crore with Canbank Financial Services in the form of short-term deposits along with an interest of Rs 3.47 crore, recovery of which appears doubtful at this stage. Interest on the short-term deposit have not been provided after March, 1993, in view of non-receipt of the principal amount and interest due thereon.
These deposits matured on various dates during the year ended March 31, 1993. Bongaigaon Refineries and Petrochemicals has joined hands with the National Securities Depository to facilitate investors to hold and trade in the securities of the company in the electronic form.
Internal resource generated stood at Rs 92.54 crore in 1997-98 as against Rs 47.07 crore the year before. Reserves and surplus increased to Rs 374.60 crore in 1997-98 from Rs 329.04 crore while the net worth climbed to Rs 574.15 crore. from Rs 528.48 crore.The total term borrowing was Rs 60.28 crore giving a debt-equity ratio of 0.30:1.The company paid Rs 6.92 crore as instalments of long term loans due for repayment during the year.