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Mangalore Refinery And Petrochemicals Ltd.

BSE: 500109 Sector: Oil & Gas
NSE: MRPL ISIN Code: INE103A01014
BSE 00:00 | 26 May 83.45 3.90
(4.90%)
OPEN

79.90

HIGH

83.50

LOW

75.60

NSE 00:00 | 26 May 83.50 3.90
(4.90%)
OPEN

78.50

HIGH

83.55

LOW

75.65

OPEN 79.90
PREVIOUS CLOSE 79.55
VOLUME 1946260
52-Week high 95.95
52-Week low 37.10
P/E 4.91
Mkt Cap.(Rs cr) 14,625
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 79.90
CLOSE 79.55
VOLUME 1946260
52-Week high 95.95
52-Week low 37.10
P/E 4.91
Mkt Cap.(Rs cr) 14,625
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mangalore Refinery And Petrochemicals Ltd. (MRPL) - Chairman Speech

Company chairman speech

Dear Stakeholders

I present the 33rd Annual Report for the year 2020-21 to our valuedshareholders and also present few highlights for the year's performance.

The outbreak of COVID-19 pandemic globally and resultant lockdown in many countriesincluding India has impacted the business of your Company. Consequently lower demand forcrude oil and petroleum products has squeezed the prices and refining margin globallyduring the part of the year. These things have resulted in reduction in sales of yourCompany. The capacity utilisation gradually improved subsequently. Management has assessedthe potential impact of COVID 19 based on the current circumstances and expects nosignificant impact on the continuity of operations of the business on long term basis/ onuseful life of the assets/ on long term financial position etc. though there may be lowerrevenues and refinery throughput in the near future. Refinery was operating with reducedcapacity during first half of FY 2020-21 because of COVID-19 pandemic. Due to very lowdemand and negative ATF cracks ATF product was upgraded to BS VI grade HSD during thisperiod.

India is also combating the effects of this global pandemic. The population wasconfined to homes for much of the first quarter of the last fiscal. Businesses were shutconsumption slumped investments were hit and jobs were lost. While the government hasinitiated stimulus spending relaxing the fiscal deficit targets significantly theexpenditure has been constrained by lower revenue collections which were hurt by thelockdown. However just when March 2021 proved a silver lining by providing the highestmop-up of GST ever indicating recovery of revenue for the government the second wave ofpandemic struck and the country witnessed shutdowns in April May and June of the currentfiscal. Government's continued stimulus on infrastructure and social sectors will berequired to guide the pace of recovery. Your Company has also faced the challenges andsustained its operations despite the shortcomings. I would like to present few highlightsfor the year 2019-2020.

Financial Performance

Your company achieved a turnover of Rs.50974 crore during the financial year2020-21 as against

Rs.60728 crore during the financial year 2019-20.

Company incurred a loss after tax of Rs.240.46 crore during the financial year 2020-21against loss of

Rs.2740.35 crore incurred during the financial year 2019-20.

The Gross Refining Margin (GRM) for financial year 2020-21 was 3.71 $/bbl as against(0.23) $/bbl during the financial year 2019-20.

Company secured AAA from ICRA CARE and CRISIL for the Rs.3000 Crore NCDs

Physical Performance

11.475 MMT Crude was processed during the FY

2020-21 with the total input to the Refinery was 11.497 MMT.

Heavy Reformate was supplied along with naphtha feedstock to Aromatic complex for thefirst time to produce Reformate at OMPL due to low Px –naphtha spread during Q1:2020-21. This also supported MRPL in managing the MS blend component stocks.

HSD product (50500 KL) was floated in hired vessel for the first time in April 2020 totide over HSD Ullage crisis due to sudden stoppage of product lifting by OMCs during endMarch and uncertainties regarding the berthing of vessel with crew coming from pandemicaffected load port for export cargo.

MRPL successfully replaced the catalyst of HCU-2 & GOHDS units with remoteassistance & offline support from catalyst vendors because of COVID-19. Catalystreplacement in HCU-1 was done with site support from catalyst vendor. HCU-1 HCU-2 &GOHDS are taken back on line successfully.

Highest Ever Polypropylene production of 43.054 TMT in the month of March 21.

Your company has taken energy efficiency seriously and achieved Mean Barrel No. (MBN)of 81.41 MMBTU/BBL/NRGF.

Safety

Your Company continues to have focus of safety and has achieved 1755 cumulativeaccident free days as on 31/03/2021. It has also achieved 24.17 Million Man hours workedas on 31/03/2021 by MRPL employees. It has also achieved 24.17 million man hours worked inthe year 2020-21 as against 13.032 million man hours worked during the previous financialyear.

Several awareness programs were undertaken in the refinery to ensure safety of peopleprocess and assets. Your Company is committed towards providing a healthy and safe workenvironment to employees contractors and all the visitors to the Refinery by adopting thebest industry practices.

Robust systems and standards have been built for continuously reducing the risks in therefinery associated with Health Safety and Environment (HSE).

? Innovative approaches to safety like tool-box talk and buddy system have beenimplemented with a view to further improving safety performance. Two Occupational HealthCentres (OHC) in Refinery and one Hospital in the township area which are equipped withemergency medical aids with round the clock Ambulance facility with 10 doctors andparamedic are augmented with shower facility for Chemical contact emergency medicines andantidotes.

Direct Marketing

Your Company continues to ramp up marketing of its products in order to achieve bettervalue for its products.

The total domestic sales volume of all products during FY 2020-21 has been 1691 TMTwith a sales value of Rs.7207 Crore.

Your company expanded its Polypropylene Marketing Network to pan India basis tostrengthen its position as a reliable supplier in the domestic market. As an on-goingBusiness Development activity your company has introduced a niche grade Raffia GeneralPurpose grade (4.5 MI) to widen customer base. As a service to the nation your companynot only maximized the production and sale of niche PP grade (35 MI HY035R - used formaking medical disposables like masks) but has also maintained sufficient stock of thisgrade to meet any urgent requirement.

MRPL expects to extend its retail presence by adding 50 new outlets every year for thenext 5 years in the states of Karnataka Kerala and Goa.

MRPL retail presence will be further expanded to Tamil Nadu Andhra Pradesh andTelangana in the long term.

Employee Relations

Your Company holds its employees in the highest esteem and accordingly follows the bestHR practices reviews them periodically and strives to further improve upon that. As aresult the employee relations continue to be cordial and harmonious. Long Term Settlementwas signed with employees union during the year. As in the past years this year too I amhappy to report that not a single man-hour was lost on account of any industrialdisturbance in the year 2020-21.

Environment Social Responsibility and Sustainable Development

Y our Company envisages sustainability as a driver for building future readiness in adynamic market environment. In this process we took cognizance of the social andenvironmental challenges and accordingly aligned our refining process. In this processMRPL is pursuing projects related to decreasing carbon foot print by energy conservationimproving the energy efficiency in its processes use of renewable energy sustainablewater management project to reduce fresh water consumption by recycling /use of treatedeffluent and effective waste management through reduce reuse and recycle initiatives.

Your Company is in the process of establishing a biodiversity park in about 41 acres ofmarshy land.

In this process MRPL has entered into an MOU with Dr. Shivarama Karnatha PilikulaNisarga Dhama the domain experts in this subject. The process of establishing this parkwill take approximately 60 months and it is expected to be developed completely by theyear 2024. In this process the marshy land will be converted into a full-fledged biodiversity park which will contain endemic tree species which will help in attractingbirds insects etc. This will also contain aquatic plants which will help in increasingthe diversity of fishes and other aquatic animals.

Your Company has established a Vermi compost production facility inside its premisesfor converting plant /tree wastes like leaves branches etc. into compost which shall beused as manure in its horticulture activities and green belt development.

This will help in reducing dependency on inorganic fertilizer which is presently beingused. The first batch of vermicompost for the quantity of 40 kg was harvested on26/03/2021

Your Company is establishing a tree park in approx.

25 acres of land at Bengre Panambur Mangalore which is near our Desalination Plant.This is being done in coordination with Karnataka Forest Department (KFD).

major MRPL celebrated various environment awareness programs amongst citizens ofMangalore through various outreach programs viz. partnering with schools colleges andother agencies in addition to the District Administration.

As part of its Corporate Social Responsibility your Company focused in the areas ofrural transformation health education sanitation and has taken up programme thatbenefit the communities in and around its operational area thereby enhancing the qualityof life and economic well-being of local populace over a period of time.

MRPL Hospital with 24x7 manning of Doctors and trained Nursing Staff and a panel ofvarious specialist Consultants is open to residents of the nearby villages.

Periodic Environment Awareness programs are organized in association with KarnatakaState Pollution Control Board (KSPCB) in the neighboring village school on the topic. Illeffects of noise & air pollution and sensitization programme on phasing out use ofsingle-use plastic item etc.

I would like to place on record my sincere appreciation to the Board of Directors fortheir expertise and guidance. On behalf of the Board I would also like to express mygratitude to all our stakeholders for their continued support patronage trust andconfidence.

Sd/-
Place : New Delhi (Subhash Kumar)
Date : 29/07/2021 Chairman

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