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MRPL records Rs 185-cr net loss

MANGALORE Refineries and Petrochemicals Ltd (MRPL) has reported a net loss of Rs 185.04 crore for the year ended March 31, 2001, against a loss of Rs 299.68 crore.

The company has seen its turnover slide by 10.69 per cent to Rs 2,889.15 crore from Rs 3,198.06 crore last fiscal.

``One of the reasons for the fall in turnover was that we had to reduce production from the refinery's first phase during the fiscal. Also, there was a fall in local demand and low viability of exports,'' said Mr Ravi Kastia, Managing Director (F&A).

For the year, interest and finance charges were at Rs 237.83 crore (Rs 321.98 crore), depreciation was Rs 172.86 crore (Rs 142.76 crore), while prior adjustments stood at Rs 82.19 crore (Rs 23.33 crore).

Total expenditure was at Rs 2,791.75 crore (Rs 3,103.12 crore). Net claims from Oil Coordination Committee amounted to Rs 11.18 crore for this fiscal and Rs 18.42 crore last year.

The company changed its accounting method for financial leases with retrospective effect as a result of which loss was lower by Rs 113.07 crore (including Rs 75.85 crore as extra-ordinary income relating to earlier years), according to a release.

Mr Kastia said Lazard India Ltd was working on a financial restructuring package for the company. ``We have formed an eight-member steering committee comprising representatives of financial institutions for working out a business plan,'' he said.

The company, a joint venture between the Aditya Birla Group and Hindustan Petroleum Corporation Ltd (HPCL), plans to reduce its debt equity ratio by converting debt into equity. Also, MRPL has asked the Karnataka Government to review its incentive packag e.

The refinery's phase I package includes, a two per cent entry tax on crude which amounts to 50-60 cents a barrel. ``We have an exemption concession of Rs 250 crore for phase II and Rs 40 crore for phase I, against Rs 1,500 crore for Reliance Petroleum. W e are asking that the five year package be reconsidered and the exemption increased to Rs 200 crore for phase one,'' Mr Kastia said.

The Union Ministry of Petroleum and Natural Gas has assured the stand alone refinery of reconsidering the marketing rights of the formula products before April 2002. ``We have been assured of a limited marketing freedom before total decontrol, but nothin g has come forward so far. But we believe that the April deadline for decontrol is sacrosanct,'' Mr Kastia said. -- Bureau