All Time High for the Scrip: Rs.690-plus
As you must be aware that the company did expansion in the year of 2008-2010 mainly through debts, which were repayable in a short term period of 3-5 years, while the equipments acquired out of these debts have a working life of about 25 to 30 years. These short term loans thus created a mismatch in the cash flows of the Company. Therefore, with a view to have a detailed analysis on the financing model of the Company, it appointed SBI Capital Markets Ltd to suggest the various options available to the company at that juncture. SBI Capital Markets Limited, to improve the cash flows, suggested for the re-structuring of the term loans of the company. Therefore, with the consents of almost all its lenders, the company opted for restructuring of its debts through Corporate Debt Restructuring (CDR) Scheme of RBI, and accordingly filed its CDR proposal with CDR –EG, who have admitted its proposal in their meeting held on 25 July, 2013 for finalization of CDR package, which is in progress as of now.
(ii) The company is still executing contracts with ONGC, which is contrary to the general rumors spread by vested groups.
(a) Charter hiring of 2 drilling rigs of 2000 HP at Dhuliajan, Assam – awarded by Oil India Ltd.
(b) Charter hiring of 2 drilling rigs of 2000 HP at Karikal, Tamilnadu.
(c) Charter hiring of 1 drilling rig 1500 HP at Ahmedabad awarded by IOCL.
(d) Charter hiring of 1 drilling rig of 1000 HP at Ahmedabad awarded by ONGC.
Two Deep Drilling Rigs have been sent to Iraq for operations in Iraq which has started operations.
(iv) EPC Project: A contract for setting up gas gathering station (GGS) and laying pipelines at Sonamura in Agartala was awarded by ONGC in FY 2011-12, which is under operation.
The Company is executing work on one contract for providing coal handling facilities on the contract awrded by Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India Limited for Ananta siding V&VI, Jagannath area of Telcher Coalfields near Telcher, Odisha.
Disadvantage in CBM Operations: The contract for Coal Bed Methane development and exploration and exploitation was permanently called off by ONGC as it could not acquire the land for that project.