Description
The report for the financial year 2009 - 2010 of BPCL.
energising lives
A N N U A L R EP O R T 2009- 2010
Exploring Opportunities
We are committed to expanding our horizons, synergizing efforts to attain excellence and enhance value for our stakeholders. With an inspiring vision as our lodestar, we continually adapt to change, devising novel strategies to succeed in a global environment. We strive to continuously surpass the diverse expectations of our customers, leveraging technology and our enthusiastic workforce to evolve innovative solutions to achieve our desired goals. Energizing lives continues to remain central to all our endeavours. We focus on sustainable development with great importance accorded to social responsibility, health, safety, security and environmental care. We also transcend boundaries in our search for renewable energies, leading to a greener and cleaner future.
BPCL …. leaving footprints of excellence.
Chairman’s Letter
Dear Shareowners, I would like to inform you that I will be laying down of?ce on 18th August, 2010 on the expiry of my term as Chairman & Managing Director. I, therefore, will not have the privilege of addressing you at the forthcoming Annual General Meeting to be held in September. Over the last 33 years, I have had the honour of being a part of the Bharat Petroleum family and leading the Organisation as the Chairman & Managing Director since August, 2005. As we enter a new decade, BPCL is poised to spread its wings and become one of the leading energy companies. These are exciting times for India and BPCL is well placed to make a signi?cant contribution in meeting the growing energy needs of the country. It is an opportune time for a change of guard and for a new Captain to take charge and elevate BPCL to an even higher plane in terms of performance and achievement. BPCL has evolved from being an oil re?ning and marketing entity to a group having a presence, not only across the country but in several parts of the world. BPCL has been amongst the ?rst in India to embrace cutting edge technology in key areas of operations and introduce products and services aimed at meeting existing and emerging needs of the consumer. It is little wonder then that the BPCL brand enjoys one of the highest valuations in the country. During the last ?ve years, there have been many major achievements. The processing capacity of Kochi Re?nery has been expanded from 7.5 MMTPA to 9.5 MMTPA. The grass roots re?nery at Bina costing Rs. 11,397 crores, the biggest project ever to be undertaken by BPCL, is ready to be commissioned. With this, the group’s annual re?ning capacity will exceed 30 MMT and will give BPCL access to its own source of products across the country. Growth in market volumes has kept pace with the increase in re?ning capacity. Entry into the upstream sector of Exploration and Production has gathered pace, with BPCL having a presence in six countries across ?ve continents. Results have been very encouraging with the announcement of two discoveries of oil and gas in Brazil and Mozambique respectively. The foray into gas and alternate sources of energy has been progressing smoothly. The focus on Research & Development will yield results in the days to come. The BPCL group is therefore, well poised to reach the next level in terms of growth and expansion. The recent past has easily been one of the most challenging periods. The global economy has been experiencing an upheaval, the likes of which have not been witnessed for a very long time. The Indian oil industry has had to grapple with the problem of volatile crude oil prices, rising under-recoveries on the sale of four key petroleum products, severe liquidity constraints and rising costs of borrowings. At the same time, it had to ful?ll its responsibility of meeting the growing energy needs of the country. It is gratifying to note that the challenging external environment has not been an impediment to BPCL achieving the goals that it had set for itself. Overcoming adverse conditions and delivering excellence has been BPCL’s forte. This has been possible owing to the composition of its DNA. BPCL considers ‘Innovation’ as the key philosophy driving the business. This has enabled BPCL to have the ?rst mover advantage in terms of introducing novel offerings to meet the emerging customer needs. It has also enabled the Organisation to look at out-of-the-box solutions and process improvements when confronted with the effects of the economic
downturn. The ability to innovate ?ows from the inherent trait of the company to deal with ‘Change.’ In today’s dynamic and volatile environment, managing change is very important to sustain and improve pro?tability and growth. BPCL also thrives on ‘Collaboration,’ both within and outside the organization, thereby facilitating the leveraging of mutual strengths. We have successfully partnered with some of the leading companies, particularly in the upstream sector. Within the organization also, cross-functional teams are at the forefront in all the major initiatives that are undertaken. This work environment has been extremely conducive for achieving excellence. Finally, the ‘Leadership’ talent developed within the company is one of BPCL’s core strengths. The challenging internal work environment has facilitated the development of a strong pool of leaders. This has not only enabled the development of the next level of leaders, but has also helped in evolving managers with an entrepreneurial spirit. These are unique features which have enabled BPCL to not only cope with challenges, but also emerge stronger. As the economy grows, opportunities are only going to increase. It is important to make calculated moves in the areas of Exploration & Production, Green Power, Research & Development, Customer Responsiveness and Capacity Building. Even as I prepare to lay down of?ce, BPCL is preparing its action plan for the coming years. The entire Organisation, starting with the Board, has been involved in articulating the goals for the next ?ve years till 2015 under Project DreamPlan. Having led the BPCL team and having seen the employees perform from close quarters, I am con?dent of BPCL’s abilities to achieve its ambitious goals in the years ahead. I have been extremely fortunate to work with a committed group of people who have a passion for excellence. The results achieved can be attributed solely to the untiring efforts of every member of the BPCL team. The cooperation and guidance provided
by my colleagues on the Board was invaluable. Your unstinting support in all our endeavours was crucial in its success, for which I will remain eternally grateful. I have no doubt that the coming days will see BPCL scaling greater heights as it continues with its mission of energising lives. I truly see BPCL becoming the most admired Global Energy Company, innovatively leveraging people and technology. Warm regards, ASHOK SINHA Chairman & Managing Director
Board of Directors
Chairman & Managing Director
ASHOK SINHA
S. RADHAKRISHNAN
Director (Marketing)
Director (Finance)
S. K. JOSHI
Director (Re?neries)
R. K. SINGH
Addl. Secretary & Financial Advisor, Ministry of Petroleum & Natural Gas
P. K. SINHA
Additional Chief Secretary,(I&C) Government of Kerala (up to 29.6.2010)
T. BALAKRISHNAN
ALKESH KUMAR SHARMA
Secretary (IP), Government of Kerala (w.e.f. 30.6.2010)
S. K. BARUA
Director
RAMA BIJAPURKAR
Director (up to 30.6.2010)
I. P. S. ANAND
Director (w.e.f. 28.1.2010)
Bankers
State Bank of India Union Bank of India Corporation Bank Bank of India State Bank of Patiala Central Bank of India Deutsche Bank Standard Chartered Bank ABN AMRO Bank N.V. ICICI Bank HDFC Bank Ltd. State Bank of Travancore Indian Bank Industrial Development Bank of India Ltd. BNP Paribas Calyon Bank
Director (Human Resources)
S. MOHAN
Auditors
B. K. Khare & Co. K. Varghese & Co.
Director (up to 28.1.2010)
A. H. KALRO
N. VENKITESWARAN
Director
Share Transfer Agents
Data Software Research Co. Pvt. Ltd. 22, Sree Sovereign Complex, 4th Cross Street, Trustpuram, Kodambakkam, Chennai 600 024
Registered Office
HARESH M. JAGTIANI
Director (w.e.f. 28.1.2010)
Bharat Bhavan 4&6 Currimbhoy Road, Ballard Estate, Mumbai 400 001
S. V. KULKARNI
Company Secretary
Group Performance Highlights
Contents
Chairman’s Letter Board of Directors Bankers, Auditors, Share Transfer Agents and Registered Of?ce Group Performance Highlights Management Team Notice to Shareholders Directors’ Report Management Discussion & Analysis Report 2 4 5
6 8 10 16 28 81 82 91 96 129 132
Sales turnover at Rs. 133,749.10 crores Crude throughput at 23.03 MMT Market Sales including exports at 30.76 MMT Net pro?t at Rs. 1,719.98 crores Oil and Gas discoveries abroad show promise Innovating continuously across the entire value chain
Comments of C & AG Performance Pro?le Auditors’ Report Balance Sheet and Pro?t & Loss Account Cash Flow Statement Consolidated Financial Statements
Mr. S. Mohan, Director (Human Resources), Mr. S. Radhakrishnan, Director (Marketing), Mr. Ashok Sinha, Chairman & Managing Director, Mr. S. K. Joshi, Director (Finance) and Mr. R. K. Singh, Director (Re?neries).
Ms. I. Sasikala Mr. A.K. Bansal Mr. Anurag Deepak Mr. B.K. Datta Mr. D.M. Reddy Ms. Dipti Sanzgiri Mr. E. Nandakumar Mr. J. Ravichandran Mr. K.K. Gupta Mr. K.V. Seshadri Mr. P.S. Bhargava Mr. R.K. Mehra Mr. R.M. Gupta Mr. S. Krishnamurti Mr. S.P. Gathoo Mr. S. P. Mathur Mr. S. Ramesh Ms. Sumita Bose Roy Mr. S. Varadarajan Mr. A.K. Kaushik Mr. Basudev Rana Mr. Brij Pal Singh Mr. George Paul Mr. G.S. Wankhede Mr. I. Srinivas Rao Mr. J. Dinaker Mr. John Minu Mathew Mr. J.R. Akut Mr. J.S. Sokhi Mr. K.B. Narayanan Mr. K. N. Ravindran
Chief Vigilance Officer Executive Director (Gas) Executive Director Logistics (Retail), Mumbai Executive Director (Supply Chain Optimization) Executive Director (Industrial & Commercial) Executive Director (Human Resources Development) Executive Director, Kochi Refinery Executive Director (Refineries Finance) Executive Director (Retail) In-charge Executive Director, Mumbai Refinery Executive Director (Planning) Executive Director (International Trade) Executive Director (LPG) Executive Director (Corporate Affairs) Executive Director (Human Resources Services) Executive Director (Engineering & Projects) Executive Director (Lubes) Executive Director (Audit) Executive Director (Corporate Finance) General Manager (IS - Infrastructure & Services) General Manager (Highway Retailing), Retail HQ General Manager (Operations), Retail General Manager (Sales) Retail HQ General Manager (Operations), MMBPL General Manager (LNG Marketing) General Manager Finance (International Trade) General Manager (Technical), Kochi Refinery General Manager (IIS Technology) General Manager (Retail Initiatives), Retail HQ General Manager (ERP - CC) General Manager (Projects), Kochi Refinery
Mr. K.P. Chandy Mr. K.V. Shenoy Mr. M.M. Chawla Mr. M.M. Somaya Mr. M.P. Govindarajan Ms. Monica Widhani Mr. N.S. Ramu Mr. P. Balasubramanian Mr. P. C. Srivastava Mr. Pallav Ghosh Mr. P. Padmanabhan Mr. Pramod Sharma Mr. Prasad K. Panicker Mr. P.V. Kumar Mr. R.P. Natekar Mr. R. Ranganath Mr. S.B. Bhattacharya Mr. S.K. Agrawal Mr. S.K. Mathur Mr. Sharad K. Sharma Mr. S. Vijayakumar Mr. Tapan Datta Mr. Tomy Mathews Mr. T. Somanath Dr. U.V. Girish Kumar Mr. V. Anand Mr. Vinod Giri Mr. Arun Kumar Singh Mr. D.K. Mane Dr. G. Vasudev Ms. Madhu Sagar
Regional LPG Manager, South General Manager (Retail) In-charge, South General Manager (Pipeline Projects), E&P General Manager (Brand & Public Relations) General Manager (Human Resources), Kochi Refinery General Manager (Urban Retailing) General Manager (Retail), South General Manager (Corporate Finance) General Manager (Retail), West General Manager (Retail), East General Manager (Technical), Mumbai Refinery General Manager (Coordination) General Manager (Operations), Mumbai Refinery General Manager (International Trade) General Manager (Corporate Treasury) General Manager Finance (Retail) HQ General Manager (Aviation) General Manager (Legal) General Manager (Retail), North General Manager Sales (LPG) HQ General Manager (Human Resources), Mumbai Refinery General Manager (Vigilance), CO General Manager (Operations), Kochi Refinery General Manager – Talent Management General Manager (IT & BI), Retail HQ General Manager (Sales), Retail South General Manager (Marketing Corporate) Chief Procurement Officer Head (Health, Safety, Security & Environment) Entity Dy. General Manager (Quality Control Cell) Dy. General Manager (Employee Satisfaction Enhancement), CO Company Secretary
Management Team
Mr. P. Anandasundaresan General Manager (Sales) I&C, Mumbai
Mr. S.V. Kulkarni
Annual Report 2009-2010
9
NOTICE TO THE SHAREHOLDERS
Notice is hereby given that the 57th Annual General Meeting of the Shareholders of Bharat Petroleum Corporation Limited will be held in the Rama Watumull Auditorium at Kishinchand Chellaram College (K.C College), 124, Dinshaw Wacha Road, Churchgate, Mumbai-400 020, on Friday, the 24th September, 2010, at 10.30 a.m. to transact the following Ordinary and Special Business: A. Ordinary Business 1. To receive, consider and adopt the Audited Profit & Loss Account for the year ended 31st March, 2010, the Balance Sheet as at that date and the Reports of the Board of Directors and the Statutory Auditors and the Comments of the Comptroller & Auditor General of India thereon. 2. To declare dividend. 3. To appoint a Director in place of Shri S. K. Joshi, Director, who retires by rotation in pursuance of Section 256 of the Companies Act, 1956. Shri S. K. Joshi, being eligible, offers himself for re-appointment. 4. To appoint a Director in place of Shri R. K. Singh, Director who retires by rotation in pursuance of Section 256 of the Companies Act, 1956. Shri R. K. Singh, being eligible, offers himself for re-appointment. 5. To fix the remuneration of the Statutory Auditors. To consider and, if thought fit, to pass the following Resolution, with or without modifications, as an Ordinary Resolution: “RESOLVED that pursuant to the provisions of Section 224(8)(aa) and other applicable provisions, if any, of the Companies Act, 1956, remuneration of the Single / Joint Statutory Auditors as appointed by the Comptroller & Auditor General of India (C&AG) under Section 619(2) of the said Act, be and is hereby approved at Rs. 20,00,000, to be shared in case of joint auditors, plus payment of actual reasonable travelling and out of pocket expenses and service tax as applicable, for the year 2010-11 and also for subsequent years.” B. Special Business 6. Appointment of Director To consider and, if thought fit, to pass the following Resolution, with or without modifications, as an Ordinary Resolution: “RESOLVED that pursuant to Section 257 and other applicable provisions, if any, of the Companies Act, 1956 Shri I. P S. Anand be and is hereby appointed as Director of the Company.” . 7. Appointment of Director To consider and, if thought fit, to pass the following Resolution, with or without modifications, as an Ordinary Resolution: “RESOLVED that pursuant to Section 257 and other applicable provisions, if any, of the Companies Act, 1956 Shri Haresh M. Jagtiani be and is hereby appointed as Director of the Company.” 8. Appointment of Director To consider and, if thought fit, to pass the following Resolution, with or without modifications, as an Ordinary Resolution: “RESOLVED that pursuant to Section 257 and other applicable provisions, if any, of the Companies Act, 1956 Shri Alkesh Kumar Sharma, Secretary, Investment Promotion, Government of Kerala be and is hereby appointed as Director of the Company.”
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Bharat Petroleum Corporation Limited
9. Appointment of Director To consider and, if thought fit, to pass the following Resolution, with or without modifications, as an Ordinary Resolution: “RESOLVED that pursuant to Section 257 and other applicable provisions, if any, of the Companies Act, 1956 Shri N. Venkiteswaran be and is hereby appointed as Director of the Company.” By order of the Board of Directors Sd/(S. V. Kulkarni) Company Secretary Registered Office : Bharat Bhavan, 4 & 6 Currimbhoy Road, Ballard Estate, Mumbai - 400 001. Date: 10th August, 2010 Notes : 1. Explanatory statement under Section 173 of the Companies Act, 1956, in respect of the items of Special Business is annexed hereto. 2. A MEMB ER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY OR PROXIES TO ATTEND AND VOTE INSTEAD OF HIMSELF AND SUCH PROXY NEED NOT BE A MEMBER. PROXIES, IN ORDER TO BE EFFECTIVE, SHOULD BE DULY COMPLETED & AFFIXED WITH REVENUE STAMP AND BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THAN FORTY EIGHT HOURS BEFORE COMMENCEMENT OF THE MEETING. 3. The Share Transfer Books of the Company will remain closed from Monday, 13th September, 2010 to Friday, 24th September, 2010 (both days inclusive), for the purpose of payment of dividend on equity shares for the year ended 31st March, 2010, if declared at the Annual General Meeting as under: a) To all Beneficial Owners in respect of shares held in electronic form as per the data to be made available by NSDL/CDSL as at the close of the last working day on or before 12th September, 2010. b) To all Members in respect of shares held in physical form after giving effect to transfer in respect of valid share transfer requests lodged with the Share Transfer Agent viz. Data Software Research Co. Pvt. Ltd. on or before 12th September, 2010. 4. The unclaimed dividends of BPCL and erstwhile Kochi Refineries Limited (KRL) for the financial years upto 1993-94 had been transferred by the Companies to the General Revenue Account of the Central Government, which can be claimed by the Shareholders from the Office of the Registrar of Companies at Mumbai and Kochi, respectively. 5. (a) Pursuant to Section 205A(5) and Section 205C of the Companies Act, 1956, any amount of dividend remaining unpaid or unclaimed for a period of seven years from the date of its transfer to the Unpaid Dividend Account of the Company is required to be transferred to the Investor Education & Protection Fund established by the Central Government. Accordingly, the unclaimed dividends for the financial years ended 31st March, 1995 to 31st March, 2002 of BPCL and erstwhile KRL, and also unclaimed amount of interim dividend for the financial year 31st March, 2003 in respect of BPCL had been transferred to the said Fund and no claim shall lie against the said Fund, or the Company, for the amount of dividends so transferred. (b) Shareholders of BPCL who have not yet encashed their Final dividend warrant(s) for the financial year ended 31st March, 2003 or dividend warrants(s) for any subsequent financial years are requested to make their claims to the Share Transfer Agent of the Company or to the Registered Office of the Company. With regard to unclaimed amount of dividend for the financial year ended 31st March, 2003 and for subsequent financial years of erstwhile KRL, the claims can be made to the Share Transfer Agent of the Company. It may be noted that the unclaimed amount of final dividend for the financial year ended 31st March, 2003 becomes due for transfer to the Investor Education and Protection Fund on 14.8.2010 in respect of erstwhile KRL and 23.9.2010 in respect of BPCL. Annual Report 2009-2010
11
EXPLANATORY STATEMENT Annexed to the Notice convening the 57th Annual General Meeting to be held on Friday, the 24th September, 2010. Item No. 6 Appointment of Director Shri I. P S. Anand was appointed as Additional Director of Bharat Petroleum Corporation Ltd. effective 28.1.2010. . Being an Additional Director, he holds office up to the date of the ensuing Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956 from a Member proposing the name of Shri I. P S. . Anand as Director of the Company. A brief resume of Shri I. P S. Anand, as required under Clause 49(IV)(G) of the Listing . Agreement, is provided separately in the Corporate Governance Report enclosed to the Directors’ Report. Shri I. P S. . Anand does not hold any share in the Company as on the date of appointment. The Directors recommend appointment of Shri I. P S. Anand as Director of the Company. . Except Shri I. P S. Anand, no other Director is interested in the Resolution. . Item No. 7 Appointment of Director Shri Haresh M. Jagtiani was appointed as Additional Director of Bharat Petroleum Corporation Ltd effective 28.1.2010. Being an Additional Director, he holds office up to the date of the ensuing Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956 from a Member proposing the name of Shri Haresh M. Jagtiani as Director of the Company. A brief resume of Shri Haresh M. Jagtiani, as required under Clause 49(IV)(G) of the Listing Agreement, is provided separately in the Corporate Governance Report enclosed to the Directors’ Report. Shri Haresh M. Jagtiani does not hold any share in the Company as on the date of appointment. The Directors recommend appointment of Shri Haresh M. Jagtiani as Director of the Company. Except Shri Haresh M. Jagtiani, no other Director is interested in the Resolution. Item No. 8 Appointment of Director Shri Alkesh Kumar Sharma was appointed as Additional Director of Bharat Petroleum Corporation Ltd effective 30.6.2010. Being an Additional Director, he holds office up to the date of the ensuing Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956 from a Member proposing the name of Shri Alkesh Kumar Sharma as Director of the Company. A brief resume of Shri Alkesh Kumar Sharma, as required under Clause 49(IV)(G) of the Listing Agreement, is provided separately in the Corporate Governance Report enclosed to the Directors’ Report. Shri Alkesh Kumar Sharma does not hold any share in the Company as on the date of appointment. The Directors recommend appointment of Shri Alkesh Kumar Sharma as Director of the Company. Except Shri Alkesh Kumar Sharma, no other Director is interested in the Resolution. Item No. 9 Appointment of Director Prof. N. Venkiteswaran was appointed as Director of Bharat Petroleum Corporation Ltd. effective 16.7.2010. He holds office up to the date of the ensuing Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956 from a Member proposing the name of Prof. N. Venkiteswaran as Director of the Company. A brief resume of Prof. N. Venkiteswaran, as required under Clause 49(IV)(G) of the Listing Agreement, is provided separately in the Corporate Governance Report enclosed to the Directors’ Report. Prof. N. Venkiteswaran does not hold any share in the Company as on the date of appointment. The Directors recommend appointment of Prof. N. Venkiteswaran as Director of the Company. Except Prof. N. Venkiteswaran, no other Director is interested in the Resolution. By order of the Board of Directors Sd/(S. V. Kulkarni) Company Secretary Registered Office : Bharat Bhavan, 4 & 6 Currimbhoy Road, Ballard Estate, Mumbai 400001 Date : 10th August, 2010
12
Bharat Petroleum Corporation Limited
Note : The figures for the years 2005-06 and onwards are merged figures including erstwhile KRL.
Annual Report 2009-2010
13
Note : The figures for the years 2005-06 and onwards are merged figures including erstwhile KRL.
14
Bharat Petroleum Corporation Limited
Annual Report 2009-2010
15
Directors’ Report
The Directors take pleasure in presenting their Report on the performance of Bharat Petroleum Corporation Limited (BPCL) for the year ended 31st March, 2010. PERFORMANCE OVERVIEW Group Performance The aggregate Refinery throughput at BPCL’s Refineries at Mumbai and Kochi and that of its subsidiary company, Numaligarh Refinery Limited (NRL) in 2009-10 was 23.03 Million Metric Tonnes (MMT) as compared to 22.20 MMT in 2008-09. The BPCL Group ended the year with market sales of 28.06 MMT as compared to 27.45 MMT in the previous year. The group’s exports of petroleum products during the year stood at 2.70 MMT as against 1.38 MMT in 2008-09. The financial year saw the group achieve a sales turnover of Rs. 133,749.10 crores, as compared to Rs. 147,336.82 crores recorded in 2008-09. The Profit after Tax stood at Rs. 1,719.98 crores in 2009-10 as against Rs. 724.13 crores in the previous year. After setting off the minority interest, the Group earnings per share increased to Rs. 45.15 in the current year from Rs. 17.53 in 2008-09.
CONSOLIDATED GROUP RESULTS 2009-10 Physical Performance Crude Throughput (MMT) Market Sales (MMT) 23.03 28.06 22.20 27.45 2008-09
Financial Performance Sales / Income from Operations Less: Excise Duty Paid Net Sales / Income from Operations Gross Profit Interest Depreciation & amortization Profit before tax Provision for taxation – Current Profit after Current Tax Provision for Fringe Benefit Tax Provision for taxation – Deferred Short provision for Taxation in earlier years provided for Net Profit Minority Interest Net Income of the group attributable to BPCL Group Earnings per share attributable to BPCL (Rs.) 133,749.10 (9,932.38) 123,816.72 5,341.35 1,124.66 1,444.56 2,772.13 1,324.75 1,447.38 (301.27) 28.67 1,719.98 87.62 1,632.36 45.15
Rs. in Crores 147,336.82 (10,779.70) 136,557.12 4,800.60 2,404.32 1,261.71 1,134.57 674.06 460.51 14.40 (285.11) 7.09 724.13 90.37 633.76 17.53
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Bharat Petroleum Corporation Limited
Company Performance During the year 2009-10, the crude throughput at BPCL’s refineries at Mumbai and Kochi was 20.41 MMT as against the level of 19.94 MMT achieved in 2008-09. The market sales of the company increased from 27.16 MMT in 2008-09 to 27.70 MMT in 2009-10.
FINANCIAL HIGHLIGHTS Rs. in Crores 2009-10 Sales Turnover – Gross Gross Profit before Depreciation, Interest and Tax Interest Depreciation & amortization Profit before tax Provision for Taxation – Current Provision for Fringe Benefit Tax Provision for Taxation – Deferred Short provision for taxation in earlier years provided for Net Profit Balance brought forward Amount available for disposal # Rs. 10,000 The Directors propose to appropriate this amount as under: Towards Dividend: Final (proposed) Dividend Towards Corporate Dividend Tax For transfer to Debenture Redemption Reserve For transfer to General Reserve Balance carried to Balance Sheet Summarized Cash Flow Statement : Cash Flows: Inflow/(Outflow) from operations Inflow/(Outflow) from investing activities Inflow/(Outflow) from financing activities Net increase/(decrease) in cash & cash equivalents
BPCL’s sales turnover for 2009-10 stood at Rs. 131,499.72 crores, reflecting a reduction of 9.55% over the previous year’s turnover of Rs. 145,392.07 crores. However, the sales in volume terms increased from 27.16 MMT in 2008-09 to 27.70 MMT in 2009-10, registering an increase of 1.99%. The profit before tax for the year increased by 132.65% over the preceding year to reach a level of Rs. 2,366.05 crores as compared to Rs. 1,004.11 crores in 2008-09. After providing for tax, (including deferred tax and fringe benefit tax) of Rs. 828.43 crores as against Rs. 268.21 crores during the last year, the profit after tax
2008-09 145,392.07 4,246.01 2,166.37 1,075.53 1,004.11 490.00 13.25 (242.13) 7.09 735.90 # 735.90
131,499.72 4,619.32 1,010.95 1,242.32 2,366.05 1,127.00 (303.25) 4.68 1,537.62 76.37 1,613.99
506.16 72.77 700.00 154.00 181.06
253.08 31.45 300.00 75.00 76.37
(1,515.15) 1,538.43 652.09 675.37
6,212.34 (9,908.75) (2,285.32) (5,981.73)
for the year stood at Rs. 1,537.62 crores, showing an increase of 108.94% over the level of Rs. 735.90 crores recorded in 2008-09. The Board of Directors has recommended a dividend of 140% (Rs. 14 per share) for the year on the paid-up share capital of Rs.361.54 crores which will absorb a sum of Rs. 578.93 crores out of the profit after tax inclusive of Rs. 72.77 crores for Corporate Dividend Tax on distributed profits. BPCL’s net worth as on 31st March, 2010 stands at Rs. 13,086.71 crores, as compared to Rs. 12,128.11 crores as at the end of the previous year.
Annual Report 2009-2010
17
The earnings per share amounted to Rs. 42.53 in 2009-10 as compared to Rs. 20.35 in 2008-09. Internal cash generation during the year were higher at Rs. 1,898.10 crores as against Rs. 1,282.29 crores in 2008-09. BPCL’s contribution to the exchequer by way of taxes and duties during 2009-10 amounted to Rs. 26,685.75 crores as against Rs.25,331.78 crores in the previous financial year. Borrowings from banks decreased from Rs. 19,242.56 crores as at 31st March, 2009 to Rs. 18,743.87 crores at the close of the current financial year. The Collateralized Borrowing and Lending Obligation (CBLO) through Clearing Corporation of India Limited amounted to Rs. 500 crores as at the end of the year as compared to Rs. 150 crores at the end of the previous year. Loans from Oil Industry Development Board increased to Rs. 921.37 crores as at 31st March, 2010 as compared to Rs. 761.50 crores at the end of the previous year. Debentures worth Rs. 1,000 crores were issued during the year and remained outstanding as on 31st March 2010 in addition to the debentures of Rs. 1,000 crores issued in 2008-09. Public deposits as at 31st March 2010 stood at Rs. 0.24 crores as compared to Rs. 3.45 crores at the end of the previous year. The amount of deposits, matured but unclaimed, at the end of the year was Rs. 0.15 crores, which pertains to 35 depositors. The total Capital Expenditure during the year 2009-10 amounted to Rs. 3,446.55 crores as compared to Rs. 2,389.34 crores during the year 2008-09. The Comptroller and Auditor General of India (C&AG) has no comment upon or supplement to the Statutory Auditors’ Report on the Accounts for the year ended 31st March, 2010. The letter from C&AG is annexed as Annexure E. REFINERIES MUMBAI REFINERY During the year 2009-10, Mumbai Refinery with an installed capacity of 12 MMTPA, processed 12.52 MMT of crude oil as against 12.26 MMT processed in 2008-09. Notwithstanding the turnarounds in some major units during the year, the refinery achieved a capacity utilization of 104% as compared to 102% in the previous year. The refinery achieved its highest ever production of several products including Liquefied Petroleum Gas (LPG), Methyl Tertiary Butyl Ether (MTBE), Aviation Turbine Fuel (ATF) and Lube Base Oils. The refinery also commenced the production of Euro IV quality Motor Spirit (MS) and High Speed Diesel (HSD) from February 2010. During the year, the refinery processed the Nigerian crude oil - Agbami for the first time. The gross refining margin (GRM) for the year stood at USD 1.78 per barrel as compared to USD 4.48 per barrel in 2008-09. This has translated into an overall gross margin of Rs. 792.63 crores for the year as compared to Rs. 1,892.28 crores in 2008-09. The reduction in the GRM was mainly due to volatility in the international prices of crude oil and finished products and unfavorable crude-product spreads.
KOCHI REFINERY: Kochi Refinery recorded a throughput of 7.89 MMT in 2009-10 as compared to 7.68 MMT achieved in 2008-09. The capacity utilization of the refinery stood at 105% as compared to 102.4% in the previous year. This was achieved despite a major shutdown undertaken in connection with the capacity expansion of the refinery. The refinery also processed the Agbami crude oil for the first time. The refinery achieved its highest level of production of ATF and packed Bitumen during the year. The gross refining margin for the year 2009-10 was USD 4.87 per barrel as against USD 6.28 per barrel in the previous year. This translated into an overall gross margin of Rs. 1,366.63 crores for the year as compared to Rs. 1,658.78 crores in 2008-09. The details of the performance of the Refineries, their activities and future plans are discussed in the Management Discussion and Analysis Report (MD&A). MERGER OF KRL WITH BPCL As informed in the last year’s Report, merger of the erstwhile Kochi Refineries Limited (KRL) with BPCL under Sections 391 to 394 of the Companies Act 1956 had been completed, following receipt of the Order dated 18th August, 2006 issued by the Ministry of Company Affairs, New Delhi. One of the Shareholders of the erstwhile KRL had filed a Writ Petition in the Delhi High Court challenging the merger, and the same is pending as on date. MARKETING During the year 2009-10, BPCL’s market sales volume touched a level of 27.70 MMT as compared to 27.16 MMT in the previous year. This represented a growth rate of 1.99% over the previous year. BPCL’s market share amongst the public sector oil companies stood at 22.38% as at 31st March, 2010 as compared to 22.62% as at the end of the previous year. A detailed discussion of the performance of the Marketing function is given in the MD&A. PROJECTS Central India Refinery Project Bharat Oman Refineries Limited (BORL), a company promoted by BPCL, is setting up a 6 MMTPA capacity grass roots Refinery at Bina in Madhya Pradesh. Oman Oil Company Limited (OOC) is partnering BPCL in this project. The refinery is being set up along with crude oil import facilities consisting of a Single Point Mooring (SPM) system and Crude Oil Storage Terminal (COT) at Vadinar and cross-country crude oil pipeline from Vadinar to Bina. The project is estimated to have an as-built capital cost of Rs.11,397 crores which will be funded with a debt equity ratio of 1.6:1. BORL has an authorized share capital of Rs. 7,000 crores. BPCL and OOC had invested Rs. 75.5 crores each in the equity share capital of BORL. BPCL, with the approval of
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the Government of India, decided to enhance its equity contribution in the equity of BORL to the extent of 50%. OOC agreed to make an additional investment of Rs. 1,219.67 crores in 81.31 crores equity shares at a premium of Rs. 5 per share for which the Investors Rights Agreement (IRA) was signed between BPCL, OOC and BORL in November 2009. The agreed investment has been brought in and OOC was allotted 81.31 crores equity shares in May 2010. As on 31st March, 2010, BPCL had contributed a sum of Rs. 1,300 crores towards subscribing for shares in BORL. An amount of Rs. 813.11 crores from this was converted into 81.31 crores equity shares at par and allotted to BPCL in May 2010. The balance amount of Rs. 486.89 crores was converted into 48.69 crore warrants representing the right to subscribe to 48.69 crore equity shares of Rs. 10 each. BPCL has also made additional investment of Rs. 448.79 crores against which it was allotted 29.92 crore warrants, which will be entitled for equal number of equity shares of Rs. 10 each at a later date. Till the time the total equity of BORL is tied up, BPCL and OOC will hold 50% shares each in BORL. On a future date, BPCL and OOC will be holding about 49% and 26% respectively in the fully diluted equity of BORL. The refinery is slated to commence commercial production in the current year. The crude oil receipt facilities at Vadinar and crude oil tankages & intermediate product tankages at the refinery site have been commissioned. The Vadinar – Bina crude oil pipeline has been commissioned and crude oil has been received in the refinery tanks. The Crude Distillation Unit was commissioned on 29th June, 2010. The cumulative capital expenditure as on 30th June, 2010 amounted to Rs. 9,938 crores. The total commitments made up to that date was Rs. 11,012 crores. Bina Product Despatch Terminal The Bina Product Despatch Terminal is designed to facilitate the marketing of products from the new refinery at Bina. The dispatch terminal was completed with a tankage of 4.45 lakh kilolitres for storing white oils, 10 bay road loading gantry and single spur rail loading gantry for white oils, 6 x 1400 MT LPG mounded storage, 4 bays road loading gantry for LPG, and other associated infrastructural facilities, adjacent to the Bina refinery. The terminal facilities are mechanically complete. Receipt and road dispatch facilities for LPG and SKO have been commissioned. The balance commissioning will be synchronized with the commissioning of the Bina Refinery. The approved cost of the project is Rs. 639.11 crores and the cumulative expenditure as on 30th June, 2010 stood at Rs. 565.33 crores. Bina Kota Product Pipeline The project, with an approved cost of Rs. 405.82 crores, involved the laying of an 18” (45.72 cm) dia, 257 km long cross-country product pipeline from Bina to Kota, to facilitate the economic evacuation of MS, HSD, Superior Kerosene Oil (SKO) and ATF from the new refinery at Bina.
The pipeline is designed for an initial throughput of 2.8 MMTPA and will be connected to the existing multi-product Mumbai-Manmad-Manglya-Piyala-Bijwasan pipeline at Kota to facilitate distribution of products from the Bina refinery to the markets in northern India. The pipeline is mechanically complete and will be commissioned on receiving products from the Bina Refinery. The cumulative expenditure on the project as on 30th June, 2010 stood at Rs. 358.29 crores. Capacity Expansion cum Modernization Project (CEMP) – Phase II at Kochi Refinery The project was undertaken to put up facilities for production of auto fuels i.e. MS and HSD conforming to Euro III /IV equivalent norms along with modernization and capacity expansion of the refinery from 7.5 MMTPA to 9.5 MMTPA. The approved cost of the project is Rs. 3,941 crores. The capacity expansion of the refinery was completed in July 2009 and the balance facilities are expected to be completed by October 2010. The overall physical progress of the project is 96.10 % as on 30th June 2010 and the total expenditure as on that date stood at Rs. 2,731.93 crores. Fuels Quality Upgrade Project at Mumbai Refinery The project costing Rs. 390 crores was undertaken to make plant modifications at the Mumbai refinery for improving quality of MS and HSD to meet the Euro IV equivalent norms. The capacity of the Diesel Hydrodesulphurization Unit has been enhanced from 1.4 MMTPA to 2 MMTPA and a new FCC Gasoline Splitter at the Refinery was erected. The project has been completed and the units commissioned in January 2010. Continuous Catalytic Regeneration Reformer (CCR) Facilities and Hydrocracker Revamp The project is being undertaken to increase the production of Euro IV grade MS and HSD at Mumbai Refinery. This involves revamping of the Hydrocracker Unit to increase the capacity from 1.75 MMTPA to 2.0 MMTPA and setting up of a 0.9 MMTPA capacity Continuous Catalytic Regeneration (CCR) Reformer Unit at a cost of Rs. 825 crores. The project is scheduled for completion by December 2011. As on 30th June, 2010, the project has achieved physical progress of 19.67 %. The cumulative expenditure as on that date was Rs. 62.54 crores and the total commitment has exceeded Rs. 211.05 crores. LPG Import Facilities at JNPT with Strategic Storage at Uran The project is being undertaken to develop LPG import facilities at Jawaharlal Nehru Port Trust (JNPT) including installation of marine unloading arms and associated facilities; laying of 12” (30.48 cm) pipeline from JNPT to Uran LPG plant and development of refrigerated storage at Uran. The approved cost of the project is Rs.304.40 crores.
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The project has achieved an overall progress of 65.6% as on 30th June, 2010 and is scheduled for completion in December 2010. The cumulative expenditure as on 30th June, 2010 stood at Rs. 111.39 crores. Strategic Storage for LPG Strategic storage for LPG, at a total cost of Rs. 193 crores, is being provided by putting 23 mounded storage vessels at 12 different locations. These were re-designed after standardization of size and capacity, cost optimization and vessel fabrication. The work at locations is expected to be completed by December, 2010. RESEARCH & DEVELOPMENT (R&D) Research and development (R&D) is an integral part of BPCL’s strategy for achieving sustainable growth and profitability. To enhance R&D capabilities, BPCL is continuously strengthening the infrastructure and manpower resources at its Corporate R&D Centre, Greater Noida, Uttar Pradesh as well as at its Product & Application Development Centre, Sewree, Mumbai and the R&D Centre at Kochi Refinery. BPCL’s initiatives in the area of R&D are discussed separately in the MD&A. Further, the areas covered under R&D and the benefits derived from R&D activities are detailed in Form B of Annexure A to the Directors’ Report. NON-CONVENTIONAL ENERGY INITIATIVES BPCL has placed strong emphasis on the development of non-conventional/ renewable sources of energy. A number of initiatives have been undertaken in tapping non-conventional energy sources like bio-diesel, wind energy, solar energy and fuel cells in order to develop alternate sources of energy. BPCL has focused on promoting green fuels with a view to protect the environment by reducing pollution and dependency on imported fuels. Tracts of unproductive, barren and non cultivable fallow land are being used for the growth of Jatropha and Karanj plants. The plantations would contribute towards environment protection, prevention of soil erosion and provide feedstock for manufacturing bio-diesel. BPCL has promoted Bharat Renewable Energy Limited, a joint venture company with the objective of entering the Bio-diesel Value Chain in the state of Uttar Pradesh. “Project Triple One” has been launched with the aim of cultivating one million acres (404686.3 hectares) of wasteland, creating one million jobs and producing one million tonnes of Bio-diesel from the plantation to replace diesel over the next 10 years. BPCL has been one of the first energy companies to successfully generate power through windmills. Windmills with a capacity of 5 MW (four windmills of 1.25 MW each) in the hilly range of Kappatguda in Karnataka are currently in operation and the power produced by them is being sold to Karnataka State Electricity grid. BPCL has plans to make further investments in windmills in the states of Rajasthan, Maharashtra, Gujarat and Madhya Pradesh.
Work is going on for the setting up of a 1 MW capacity grid connected solar farm at BPCL’s LPG bottling plant in Lalru in the state of Punjab. As the power generated from the plant is proposed to be sold to the Punjab State Electricity Board, BPCL has signed a Power Purchase Agreement with the Board. The farm which will be spread across an area of 4 acres (1.62 hectares) has been conceived to avail of carbon emission credits under the Kyoto protocol. A 5 KVA solar cum wind power generator has been commissioned at one of BPCL’s Company Owned Company Operated (COCO) Retail Outlets near Kolkata. A 5 KVA solar power generator has also been installed at a COCO Outlet at Bangalore. INDUSTRIAL RELATIONS The overall Industrial Relations climate remained peaceful throughout the year. All organizational and employee related issues were handled with a collaborative approach and regular communication was ensured to all employees on all important issues affecting them and the Organisation. Discussions have been initiated with the Unions for signing a fresh wage settlement with them. FULFILLMENT OF SOCIAL OBLIGATIONS BPCL views Corporate Social Responsibility (CSR) as one of its core commitments to society at large. With BPCL committing 2% of the net profit of the previous financial year towards CSR, focus was placed on building a robust internal system for not only undertaking CSR projects, but also on effective management of the projects and evaluation of the outcome. ‘Education’ and ‘Water Conservation’ were the two core thrust areas although health, community development and environment conservation also remain important. For the first time, targets were set in the area of CSR in the Memorandum of Understanding that BPCL signs every year with the Ministry of Petroleum & Natural Gas. A target of making 4 villages ‘drought free’ through rainwater harvesting and also undertaking Computer Assisted Learning Programmes for 2500 children in 11 Zilla Parishad schools near Uran in Raigad Dist, Maharashtra has been agreed upon. These targets have been achieved and BPCL is now in constant communication with officials of the education department on sustaining the project, which can help in undertaking similar projects in the coming days. BPCL has also partnered with the NGO Pratham in rolling out a districtwide Education Enhance Programme in the districts of Nandurbar in Maharashtra and Sagar in Madhya Pradesh. Through this programme, BPCL plans to reach out to more than 1200 schools in both the districts, with an aim to ensure that every child in the district from class I to IV is able to read and write. BPCL is also supporting a programme to provide vocational guidance for the unemployed youth in these districts. Apart from ensuring the successful implementation of the CSR projects, staff members were encouraged to join in the CSR efforts. The CSR projects received enthusiastic support
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from employee volunteers, who in their personal time, contributed towards water conservation projects, and also in teaching children from the lower socio-economic strata. The employees put in around 1921 volunteering hours. One of BPCL’s employees has also accepted a two year assignment with an organization “Teach For India”, in which he is teaching the children from the lower socio-economic strata, in a municipal school. Several projects, which were being supported in remote rural and tribal areas, were socially audited on their impact for the first time, and the recommendations, which mostly dwelled on making beneficiaries self-reliant and empowering communities, have been acted upon. PROMOTION OF SPORTS BPCL sportspersons continued to excel in the national as well as international sports arena in several disciplines. Saina Nehwal reached a career high ranking of World no. 2 among ladies after winning the India Open GP Gold and the Singapore Super Series events. Saina went on to retain her title at the Indonesia Super Series event, which she had won in 2009 also. She was awarded the Padma Shri and Arjuna awards by the Government of India. Recently, she was named as the recipient of the Rajiv Gandhi Khel Ratna award which is the highest recognition accorded to an Indian sportsperson. Jwala Gutta won the Yonex Chinese Taipei Grand Prix Badminton tournament in the mixed doubles event. In Table Tennis, Poulomi Ghatak, who received the Arjuna Award, won a record 4 titles in the National Championships. In Chess, S. Kidambi became the fourth player from BPCL to earn the Grand Master norm. Joby Mathew won the Gold Medal in the World Arm Wrestling championships. BPCL continues to contribute significantly to the Indian contingents in various sporting disciplines. BPCL was awarded the newly instituted “Excellence in Sports” trophy for its contribution in the field of sports. BPCL also bagged the II Runners-up “Presidents Trophy” based on the points obtained in various Petroleum Sports Promotion Board (PSPB) tournaments conducted during the year. RESERVATION AND OTHER WELFARE MEASURES FOR SCHEDULED CASTES/SCHEDULED TRIBES/ OTHER BACKWARD CLASSES AND PERSONS WITH DISABILITIES BPCL has been following in letter and spirit, the Presidential Directives and other Guidelines issued from time to time by the Ministry of Petroleum & Natural Gas, Ministry of Social Justice & Empowerment and the Department of Public Enterprises relating to reservations / concessions for Scheduled Castes / Scheduled Tribes / Other Backward Classes. Adequate monitoring mechanisms have been put in place for sustained and effective compliance uniformly across the Corporation. Rosters are maintained as per the Directives and are regularly inspected by the Liaison Officer of the Corporation as well as the Liaison Officer of the Ministry of Petroleum & Natural Gas, to ensure proper compliance of the Directives.
Students belonging to Scheduled Castes / Scheduled Tribes and those who are economically backward are encouraged by being awarded scholarships for pursuing courses at Industrial Training Institutes (ITI) & secondary school education up to graduation level. BPCL also complies with provisions under “The Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation), Act 1995” relating to providing employment opportunities and concessions for persons with disabilities. Special recruitment drives were conducted to fulfill the obligations in line with the provisions of employment opportunities. Details relating to representation/appointment of Scheduled Castes / Scheduled Tribes / Other Backward Classes and Persons with Disabilities are enclosed as Annexure D. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY The Official Language Implementation Committees (OLIC) continue to function at the Corporate and Regional offices, Refineries and major locations in order to implement various provisions of the Official Language Act and Rules across the company. Keeping in view the Annual Programme issued by the Government of India, these Committees meet on a quarterly basis and take decisions with regard to implementation of Hindi and review the progress made. Several Hindi workshops were conducted. The Parliamentary Committee on Official Languages visited three locations while Corporate Hindi Cell inspected Kochi and Mumbai Refineries and three marketing locations. Rajyabhasha Vibhag of the Ministry of Home Affairs carried out inspections at two locations. All these Committees expressed their appreciation of the efforts taken by the Corporation. The Hindi software “ISM V5 Office” was procured and installed in all offices of BPCL. “Hindi Software Training” programmes are also conducted in the Regional Offices and Refineries. An attractive Incentive Scheme is in vogue to further enhance Official Language implementation. Initiative has been taken to implement an e-library for Hindi books on the Corporate Intralink. CITIZENS’ CHARTER Citizens’ Charter – a tool for ensuring transparency in educating and communicating with the customers about their rights, apart from various infrastructure / services being available for the customers, is always in the forefront of all activities of the Company. Efforts are made to enhance customer service levels. The Grievance Redressal Mechanism was taken care of with well established systems at various consumer contact points. Besides, BPCL has sought to leverage technology by making available a feedback module in its website which the customer can have access to. An Internet based online Grievance Redressal Mechanism (Centralised Public Grievance Redress and Monitoring System) is helping in speedy redressal of grievances. BPCL has
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disposed off 231 grievances online during the year. BPCL has started toll free numbers so that customers can call from anywhere in the country for registration of complaints. The Right to Information Act 2005 has been implemented in BPCL. People across the organization are familiar with the Act and BPCL has a unique single window concept for all replies under the Act. During the period ending 31st March, 2010, BPCL has received 1753 requests for information and only 67 cases were referred to the Chief Information Commissioner, New Delhi for review. No strictures have been passed against BPCL since the inception of the Act in 2005. VIGILANCE Corporate Vigilance in the Company has played a proactive role and initiated implementation of several system improvements and brought about simplification of procedures for achieving the best possible use of resources and for facilitating effective and speedy decision making in a transparent manner. Vigilance Awareness Week was inaugurated by Justice B. Srikrishna and was observed from 3rd to 7th November, 2009 at all locations throughout the country. A Vendor Interaction Programme was organized at Kochi Refinery covering 90 vendors during Vigilance Awareness Week and issues raised were deliberated by the senior management. Such vendor meets have highlighted the company’s commitment to transparency and enabled the company to get feedback on the issues faced by vendors, improving interaction levels as well as contributing to confidence building and generation of greater levels of trust among all stakeholders. Under the aegis of Vigilance, an Integrity Club was started in Kochi Refinery School, which has received an excellent response. More than 114 training workshops/seminars involving 1800 participants were held with the objective of enhancing Vigilance Awareness among the employees/vendors. Workshops on Dealerships / Distributorships were conducted at all regions covering 139 participants. As part of preventive vigilance activities, inspections including surprise inspections were done at 467 Retail Outlets, 161 LPG Distributorships and 167 locations including depots and installations. Based on the outcome of such inspections, preventive/administrative actions and system improvements were initiated. To increase transparency in interface with vendors, contractors, suppliers and service providers, the coverage of tenders hosted on the corporate website has been increased to include tenders of Original Equipment Manufacturers and Proprietary items also. The Integrity Pact has been implemented for all tenders with value in excess of Rupees one crore.
SUBSIDIARY COMPANIES Numaligarh Refinery Limited (NRL) NRL was incorporated in 1993 with an authorized capital of Rs. 1,000 crores. It is a Mini Ratna company (Category I) and has a 3 MMTPA refinery at Numaligarh in Assam. BPCL holds 61.65% of the paid up equity in NRL as on 31st March, 2010. The refinery processed 2.62 MMT of crude oil during the year 2009-10 as compared to 2.25 MMT processed in the previous year. As on 31st March, 2010, the Refinery completed 8 years and 1 month of Lost Time Accident (LTA) free operations (equivalent to 1.40 crores man-hours) since the date of the last LTA. NRL achieved a turnover of Rs.7,874.09 crores for the financial year ending 31st March, 2010 which is lower than the turnover of Rs. 8,853.35 crores in 2008-09. The company’s profit after tax for the year stood at Rs.232.08 crores, as against profit after tax of Rs.235.64 crores in the previous year. The earnings per share (EPS) for the year 2009-10 amounted to Rs. 3.15 as against Rs. 3.20 in 2008-09. The Board of Directors of NRL have maintained the dividend by recommending a payout of Rs. 1.50 per share of Rs. 10 each. NRL had a net worth of Rs.2,450.04 crores and a book value of Rs.33.30 per share as at 31st March, 2010. Bharat PetroResources Limited (BPRL) BPRL was incorporated on 17th October, 2006 as a wholly owned subsidiary company of BPCL, with the objective of implementing BPCL’s plans in the upstream exploration and production sector. The company has an authorized capital of Rs.1,000 crores. As on 31st March, 2010, the subscribed share capital of BPRL was Rs. 702.55 crores. The exploration and production activities of BPRL and its subsidiary companies extend to 26 exploration blocks where they hold participating interests (PI). Of this, 9 blocks are in India and 17 are abroad. Besides India, BPRL has blocks in Australia, Brazil, East Timor, Indonesia, Mozambique and the United Kingdom. BPRL’s total acreage in all these blocks is around 81,000 sq.km, of which approx. 91% is offshore acreage. These blocks are in various stages of exploration. During the year 2009-10, significant level of exploration activities were undertaken, particularly in Brazil and Mozambique. M/s. Anadarko Petroleum Corporation (Anadarko), the Operator of the offshore block in Brazil, has announced that the ‘Wahoo-1’ well in block BM-C-30 in the Campos Basin flowed at a test rate of approx. 7500 barrels per day of crude oil and approx. 4 million ft3 (0.11 million m3) per day of associated natural gas. The ‘Windjammer’ well drilled during the first quarter of 2010 in Rovuma Basin, in the deep water offshore Mozambique, encountered huge quantities of gas in the wildcat well. The drilling of the balance wells in Mozambique is continuing. BPRL had formed a wholly owned subsidiary company, Bharat PetroResources JPDA Limited (BPR-JPDA LTD) through which it holds a participating interest of 20% in
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Block-JPDA 06-103-East Timor in the Joint Petroleum Development Area between Australia and East Timor. Further, BPRL has incorporated a wholly owned subsidiary company, BPRL International BV, Netherlands which in turn, has incorporated three wholly owned subsidiary companies viz. BPRL Ventures BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia BV, for undertaking exploration activities in various countries. BPRL Ventures BV has 50% stake in IBV (Brazil) Petroleo Limitada, which has participating interests ranging from 20% to 40% in 10 blocks in Brazil. BPRL Ventures Mozambique BV has participating interest of 10% in a block in Mozambique, and BPRL Ventures Indonesia BV holds participating interest of 12.50% in a block in Indonesia. BPRL earned income of Rs.0.42 crores for the financial year ending 31st March, 2010 and had a loss of Rs.35.72 crores as compared to an income of Rs.4.87 crores and loss of Rs.13.93 crores for the financial year ending 31st March, 2009. Annual Accounts of the Subsidiary Companies In view of the dispensation granted by the Central Government under Section 212 (8) of the Companies Act, 1956, copies of the Balance Sheet, Profit and Loss Account, Directors’ Report and the Auditors’ Report of the Subsidiary Companies are not attached to the Balance Sheet of the Company. In compliance with the conditions of the dispensation, the Consolidated Financial Statements have been presented in the Annual Report and financial information of the Company’s subsidiaries, as required, is disclosed in the Annual Report as Annexure F to the Directors’ Report for information. The Audited Annual Accounts of the Subsidiary Companies and related detailed information are open for inspection by any Member at BPCL’s Registered Office. Further, BPCL would make available / furnish these documents, on request, to any of its Members and the said documents would also be posted on BPCL’s website. JOINT VENTURE COMPANIES Petronet LNG Limited (PLL) PLL was formed in April, 1998 for importing LNG and setting up LNG terminals with facilities like jetty, storage, regasification etc. to supply natural gas to various industries in the country. The company was incorporated with an authorized share capital of Rs 1,200.00 crores. PLL was promoted by four public sector companies viz. BPCL, Indian Oil Corporation Limited (IOC), Oil & Natural Gas Corporation Limited (ONGC) & GAIL (India) Limited (GAIL). Each of the promoters holds 12.50% of the equity capital of PLL. The balance equity was raised over a period of time with Gaz de France having a 10% equity stake and Asian Development Bank holding 5.20% of the equity. The balance 34.80% is held by the public after the company had made an initial public offering in March, 2004. BPCL’s equity investment in PLL currently stands at Rs.98.75 crores. As at 31st March, 2010, PLL had a net worth of Rs.2,234.86 crores with a book value of Rs. 29.80 per share.
The expansion of the regasification capacity at Dahej from 5 MMPTA to 10 MMTPA was commissioned in July 2009. The capacity is being further expanded to 12.50 MMTPA. The work on the green field terminal at Kochi has already commenced and the terminal is likely to be commissioned by December 2011. PLL recorded a sales turnover of Rs. 10,602.94 crores in the financial year ending as on 31st March, 2010 as compared to Rs.8,428.70 crores recorded in 2008-09. The net profit for the year stood at Rs. 404.50 crores as compared to Rs.518.44 crores achieved in the previous year. Consequently, the EPS has declined from Rs. 6.91 in 2008-09 to Rs. 5.39 in 2009-10. PLL has maintained the dividend of 17.50% for the financial year 2009-10. Indraprastha Gas Limited (IGL) IGL, a Joint Venture Company with GAIL, was set up in December, 1998 with an authorized share capital of Rs. 220 crores for implementing the project for supply of Compressed Natural Gas (CNG) to the household and automobile sectors in Delhi. BPCL invested Rs.31.50 crores in IGL for a 22.50% stake in its equity. IGL has commissioned over 241 CNG Stations which supply the environment friendly fuel to more than 3,50,000 vehicles. IGL has more than 1,70,000 domestic PNG Customers and over 373 commercial customers in Delhi. The company is also extending its business to the towns of Greater Noida and Ghaziabad. IGL registered a turnover of Rs. 1,213.13 crores and a profit after tax of Rs. 215.49 crores for the financial year ending as on 31st March, 2010 as compared to a turnover of Rs.962.14 crores and a profit after tax of Rs.172.47 crores during the previous year. IGL has declared a dividend of Rs. 4.50 per share against a dividend of Rs. 4.00 per share in the previous year. IGL’s net worth was Rs. 825.48 crores with a book value of Rs.58.93 per share as at 31st March, 2010. The shares of the company are listed on the Stock Exchange, Mumbai and National Stock Exchange of India limited. Sabarmati Gas Limited (SGL) SGL, a Joint Venture Company promoted by BPCL and Gujarat State Petroleum Corporation (GSPC) was incorporated on 6th June 2006 with an authorized capital of Rs.100 crores for implementing the City Gas distribution project for supply of CNG to the household and automobile sectors in the city of Gandhinagar, Mehsana and Sabarkantha Districts of Gujarat. Both the promoters have a stake of 25% each in the equity capital of SGL and the balance has been subscribed to by financial institutions. SGL has set up 13 CNG stations. SGL has achieved a turnover of Rs.297.91 crores and profit after tax of Rs. 27.72 crores for the financial year ending 31st March, 2010 against a turnover of Rs.260.45 crores and a Profit after tax of Rs.18.12 crores in the previous year. The company has proposed to maintain dividend on equity shares at the rate of 15% for the financial year ending 31st March, 2010.
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Central UP Gas Limited (CUGL) CUGL is a Joint Venture Company set up in March, 2005 with GAIL as the other partner, for implementing the project for supply of CNG to the household, industrial and automobile sectors in Kanpur and Bareilly in Uttar Pradesh. The company was incorporated with an authorized share capital of Rs. 60 crores. The joint venture partners have each invested Rs.15 crores in the joint venture, with each partner having an equity stake of 25% in the company. The balance equity share capital has been subscribed to by financial institutions including Asian Development Bank (ADB), Infrastructure Development Finance Company Limited (IDFC) and Infrastructure Leasing & Financial Services Limited (IL&FS). CUGL has set up 9 CNG stations. The company has commenced its PNG operations. CUGL has achieved a turnover of Rs. 42.42 crores and profit of Rs. 7.19 crores for the financial year ending 31st March, 2010 as compared to turnover of Rs.35.64 crores and a profit of Rs.7.88 crores in the previous year. The EPS for the year stood at Rs. 1.26 as against Rs. 1.39 in 2008-09. The Board of Directors has recommended the payment of dividend at 3.50%, the same as last year. Maharashtra Natural Gas Limited (MNGL) MNGL was set up on 13th January, 2006 as a Joint Venture Company with GAIL for implementing the project for supply of CNG to the household and automobile sectors in Pune and its nearby areas. The company was incorporated with an authorized share capital of Rs. 100 crores. BPCL and GAIL have invested Rs. 22.50 crores each in MNGL’s equity capital. The Maharashtra Government will hold a 5% stake in the company. MNGL has completed its financial closure by inducting IDFC, ILFS and Axis Bank as shareholders. The Company has set up 13 CNG stations till 31st March, 2010. MNGL has achieved a turnover of Rs. 10.92 crores for the financial year ending 31st March, 2010 and loss of Rs. 1.56 crores for the year as against a turnover of Rs.1.48 crores and a loss of Rs.3.68 crores for the period 7th October, 2008 to 31st March , 2009. Bharat Stars Services Private Limited (BSSPL) BSSPL, a Joint Venture Company promoted by BPCL and ST Airport Pte Limited, Singapore was incorporated on 13th September, 2007 with an authorized capital of Rs.10 crores for providing into plane fuelling services at the new Bengaluru International Airport. The authorized share capital of BSSPL was subsequently enhanced to Rs. 20 crores. The two promoters have each subscribed to 50% of the equity capital of BSSPL and BPCL’s present investment stands at Rs.10 crores. The company, which commenced its operations at the new international airport in Bengaluru from May, 2008, has recently been issued the Letter of Award for implementing into plane fuelling services at the new T3 Terminal at Delhi International Airport. A new company Bharat Stars Services (Delhi) Private Limited is
being formed for undertaking operations in Delhi. The company is also planning to enter Calicut Airport and other nearby airports and intends to set up Fixed Base Operations to augment its revenues. BSSPL has achieved a turnover of Rs.2.90 crores for the financial year ending 31st March, 2010 and profit of Rs.0.64 crores as against a turnover of Rs.1.19 crores and a loss of Rs.0.33 crores in the previous year Bharat Renewable Energy Limited (BREL) BREL was incorporated on 17th June, 2008 for undertaking the production, procurement, cultivation and plantation of horticulture crops such as Karanj, Jatropha and Pongamia, trading, research and development and management of all crops and plantation including Biofuels in the state of Uttar Pradesh, with an authorized capital of Rs.30 crores. The company has been promoted by BPCL with Nandan Biomatrix Limited, Hyderabad and Shapoorji Pallonji Company Limited through their affiliate. Each of the partners will have an equal stake in the equity capital of the joint venture. The project envisages plantation of Jatropha in 1 million acres (404686.3 hectares) of marginal land which has the potential of generating employment / self employment for 1 million people and producing 1 million tonnes of Bio-diesel with an investment of Rs. 2,200 crores over the next 10-15 years. The Government of Uttar Pradesh has approved the project under ‘Jeevan Jyoti,’ a scheme of the Government which has the benefit of release of funds under the Mahatma Gandhi National Rural Employment Guarantee (MGNREG) scheme. BREL has identified 60,438 acres (24,459 hectares) of wasteland for plantation. Efforts are also being made to source saplings of Jatropha under the aegis of Bio Tech Park, Lucknow through approved nurseries and franchisees. Work is on for getting necessary approvals for the identified land and in preparing the land for plantation. BREL has earned miscellaneous income of Rs.0.08 crores for the financial year ending 31st March, 2010 and incurred loss of Rs.1.44 crores as against a miscellaneous income of Rs.0.05 crores and a loss of Rs.0.24 crores in the previous year. Matrix Bharat Marine Services Pte Limited (MBMS) MBMS is a Joint Venture Company incorporated in Singapore on 20th May, 2008 for carrying on the bunkering business and supply of marine lubricants in the Singapore market as well as international bunkering including expanding into Asian and Middle East markets. The company has been promoted by BPCL and Matrix Marine Fuels L.P USA, an affialiate of the Mabanaft group of companies, Hamburg, Germany. The authorised capital of the company is USD 4 million, which is equivalent to about Rs.20 crores. Both the partners have contributed equally to the share capital. Matrix Marine Fuels L.P USA has subsequently transferred their share and interest in the joint venture in favour of Matrix Marine Fuels Pte Limited, Singapore, another affiliate of the Mabanaft group.
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Bharat Petroleum Corporation Limited
The company has begun the ex-pipe bunkering operations in August, 2008. The company will also undertake development of international bunkering facilities at Indian ports, risk management including hedging activities, inventory management, and quality blending and freight optimization by utilizing the back haulage of time charter vessels for importing petroleum products in India. MBMS has achieved a turnover of USD 229.84 million and loss of USD 0.65 million for the financial year ending on 31st December, 2009 as compared to a turnover of USD 67.99 million and loss of USD 0.13 million for the year ending on 31st December, 2008. Petronet India Limited (PIL) BPCL has 16% equity participation with an investment of Rs.16 crores in PIL which was formed as a non-government financial holding company to give impetus to the development of pipeline networks throughout the country. PIL had facilitated pipeline access on a common carrier principle, through joint ventures for the pipelines put up by them viz Vadinar-Kandla, Kochi-Coimbatore-Karur and Mangalore-Hassan-Bangalore. PIL registered income of Rs. 0.41 crores and a net loss of Rs. 0.94 crores for the financial year ending 31st March, 2010 as against income of Rs. 0.52 crores and a net loss of Rs.27.06 crores (including provision for diminution of long term investment) in the previous year. The new pipeline policy announced by the Government of India some time back has affected the future of the company as interested companies are permitted to undertake pipeline projects and PIL does not have any new projects in hand. As such, promoters and other investors in PIL have reached a conclusion that continuation of PIL would not be viable. Accordingly, the winding up process has been initiated and the process of divesting PIL’s 26% equity in the 3 Joint Venture Companies promoted by it is in progress. The Board of Directors of BPCL, in its meeting held in December 2006, accepted PIL’s offer to buy its 26% stake in the equity of Petronet CCK Limited where BPCL already holds 49% of the paid up share capital. This is awaiting receipt of approval of the Government of India. Petronet CCK Limited (PCCKL) BPCL has invested a sum of Rs. 49 crores for a 49% stake in the equity capital of PCCKL, a Joint Venture promoted with PIL with an authorized share capital of Rs.135 crores. The company owns the 292 km long multi-product Kochi-Karur pipeline from BPCL’s installation at Irimpanam to Karur for transportation of MS, HSD and SKO. The pipeline commenced commercial operations from September 2002. The pumping volume during the year 2009-10 amounted to 1.72 MMT as against 1.57 MMT in the previous year. PCCKL registered a turnover of Rs.45.82 crores and net profit of Rs.4.40 crores for the financial year ending 31st March, 2010 as compared to a turnover of
Rs.45.70 crores and loss of Rs.3.25 crores in the previous year. BPCL has initiated steps subject to completion of all formalities to purchase the 26% equity share of PIL in PCCKL. Delhi Aviation Fuel Facility Pvt.Ltd A new Joint Venture Company, Delhi Aviation Fuel Facility Private Limited, has been promoted by BPCL, IOCL and Delhi International Airport Limited (DIAL) for implementing Aviation Fuel Facility for the new T3 Terminal at Delhi International Airport, New Delhi. BPCL and IOCL will subscribe to 37% of the share capital of the joint venture while the balance will be held by DIAL. BPCL’s onsite assets at the Delhi Airport will be transferred to the joint venture. Valuation of the assets is being done to determine the consideration for the transfer. The company has commenced operations from July 2010. CONSERVATION OF ENERGY, TECHNOLOGICAL ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO The details regarding energy conservation, technology absorption and foreign exchange used and earned as required by Section 217(1)(e) of the Companies Act, 1956, are given in Annexure A. MEMORANDUM OF UNDERSTANDING WITH MINISTRY OF PETROLEUM & NATURAL GAS BPCL for the twenty-first successive year has entered into a Memorandum of Understanding (MOU) for the year 2010-11 with the Ministry of Petroleum & Natural Gas. BPCL has been achieving an “Excellent” performance rating since 1990-91. BPCL also has the distinction of winning the Prime Minister’s MOU Award for ‘Excellence in Performance’ for 1998-99, 2000-01, 2002-03 and 2006-07. BPCL was bestowed with the Prime Minister’s MOU Award for ‘Excellence in Performance’ for 2006-07 in October 2009. PARTICULARS 217(2A) OF EMPLOYEES UNDER SECTION
Information required under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, is enclosed as Annexure C. CORPORATE GOVERNANCE As required under Clause 49 of the Listing Agreement and Department of Public Enterprises (DPE) Guidelines, the Report on Corporate Governance, together with the Auditors’ Certificate on compliance of Corporate Governance, is annexed as Annexure B. The Report also indicates the extent of BPCL’s compliance of the Corporate Governance Voluntary Guidelines, 2009. The forward looking statements made in the ‘Management Discussion and Analysis’ are based on certain assumptions and expectations of future events. The Directors cannot guarantee that these assumptions are accurate or these expectations will materialize.
Annual Report 2009-2010
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DIRECTORS’ RESPONSIBILITY STATEMENT Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors of BPCL confirm that: 1. In the preparation of the Annual Accounts, all the applicable Accounting Standards have been followed along with proper explanation relating to material departures. 2. The Company has selected such Accounting Policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the State of Affairs of the Company as on 31st March 2010 and of the Profit and Loss Account of the Company for the year ended on that date. 3. The Company has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. 4. These Accounts have been prepared on a going concern basis. DIRECTORS Prof. A.H. Kalro resigned from the Board with effect from 28th January, 2010. The Directors have placed on record their appreciation of the valuable contributions made and guidance given by him for the development and progress of the Company’s business. Shri I.P .S. Anand and Shri Haresh M. Jagtiani were appointed as Additional Directors with effect from 28th January, 2010. Being Additional Directors, they hold office up to the date of the Annual General Meeting. The Company has received notices under Section 257 of the Companies Act, 1956 from Members proposing their name for appointment as Directors at the ensuing Annual General Meeting. Shri T. Balakrishnan, Additional Chief Secretary, (I&C), Government of Kerala resigned from the Board w.e.f 29.6.2010 and the Directors have placed on record their appreciation of the valuable contributions made and guidance given by him for the development and progress of the Company’s business. Shri Alkesh Kumar Sharma, Secretary (IP), Government of Kerala was appointed as Additional Director on the Board w.e.f 30.6.2010. Being Additional Director, he holds office up to the date of the Annual General Meeting. The Company has received notice under Section 257 of the Companies Act, 1956 from a Member proposing his name for appointment as Director at the ensuing Annual General Meeting. Smt. Rama Bijapurkar has tendered her resignation from the Board on 30.6.2010. The Directors have placed on record their appreciation of the valuable contributions made and guidance given by her for the development and progress of the Company’s business.
Prof. N. Venkiteswaran was reappointed on the Board w.e.f 16.7.2010. The Company has received notice under Section 257 of the Companies Act, 1956 from a Member proposing his name for appointment as Director at the ensuing Annual General Meeting. Shri Ashok Sinha, Chairman & Managing Director has communicated to the Ministry of Petroleum & Natural Gas that he would be demitting office on the completion of his term of 5 years on 18th August, 2010. Shri S.K. Joshi and Shri R.K. Singh, Directors, will retire by rotation at the ensuing Annual General Meeting as per the provisions of Section 256 of the Companies Act, 1956, and being eligible, offer themselves for re-appointment as Directors at the said Meeting. As required under the Corporate Governance Code, brief bio-data of the above Directors who are appointed / reappointed at the Annual General Meeting are provided in the Corporate Governance Report. STATUTORY AUDITORS M/s.B.K. Khare & Co., Chartered Accountants, Mumbai and K. Varghese & Co., Chartered Accountants, Kochi, were appointed as Statutory Auditors for the year 2009-10, by the Comptroller & Auditor General of India (C&AG), under the provisions of Section 619 (2) of the Companies Act, 1956. They will hold office till the ensuing Annual General Meeting. The said firms have also been appointed as the Statutory Auditors for the financial year 2010-11 by the C&AG. ACKNOWLEDGEMENTS The Directors wish to place on record their warm appreciation of the dedication and untiring efforts put in by BPCL’s employees, without which the company would not have been able to achieve its goals and targets. The Directors appreciate the support and patronage of BPCL’s valued customers and are confident that the bond will strengthen further in the coming days. The Directors acknowledge the assistance, guidance and support received from the various Ministries of the Government of India, particularly from the Ministry of Petroleum & Natural Gas, which has been of immense help in enabling BPCL to function efficiently. The Directors thank BPCL’s dealers, distributors, contractors and suppliers for their unstinting support and cooperation. The Directors also convey their sincere thanks to each and every shareowner of BPCL for their continued support. For and on behalf of the Board of Directors Sd/Mumbai Date:10th August, 2010 Ashok Sinha Chairman & Managing Director
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Bharat Petroleum Corporation Limited
Annual Report 2009-2010
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Management Discussion & Analysis Report
ECONOMIC DEVELOPMENTS After the global economic meltdown, the year 2009-10 saw signs of recovery, especially in countries like India and China. During the year, nations and corporations across the world were focused on trying to adjust and come to terms with the new business paradigm. There is a growing realisation that with economies being so interdependent, potential shocks are truly global, although the degree of impact may vary depending on the local conditions. The economic disruptions of the previous year continued to impact countries for a major part of the financial year. As economies were shrinking consequent to the slowdown, there was a sharp decline in the global demand for oil. The Indian economy was one of the few bright spots with Gross Domestic Product (GDP) estimated to have grown at 7.4% during the year with the fourth quarter of the year seeing a growth of 8.6%. As industrial production across the biggest economies declined, the volume of global trade saw a substantial reduction. Towards the end of the financial year, there were signs of new crisis cropping up in the European Union, with countries like Greece, Portugal and Spain facing problems caused by the high levels of borrowings. Even as rating agencies were downgrading bonds of several countries, Governments initiated measures to contain the ensuing damage. The year was witness to a sharp fall in the global refining margins. At the same time, the crude oil prices recovered considerably as compared to the previous year. While the initial months of the year saw oil prices rise to around USD 70 per barrel, the subsequent period saw prices being range bound before closing at around USD 80 per barrel in March 2010. Given the concerns around growth in demand for oil and the comfortable supply position, there was no sharp rise in crude oil prices. The economic crisis in Europe has had some impact on the international oil prices, which declined to some extent in May 2010 before starting to creep up once again. The Indian economy continued to show resilience and grow notwithstanding the general adverse conditions. At the same time, it could not achieve growth rates in excess of 9% which had been achieved consistently before the slowdown set in. Although the stock markets recovered, risk aversion amongst investors was evident, which was reflected in the Bharat Petroleum Corporation Limited
tepid response, particularly from the retail segment to the Initial Public Offerings (IPO) and Follow up Offerings of Indian companies. Even the offerings by the public sector undertakings, as part of the divestment plans of the Government, did not generate the enthusiasm levels seen before the economic crisis. However, the Foreign Institutional Investors continued to be optimistic of the India growth story. The Indian rupee appreciated during the year which had an impact on the export sector as well as on major imports like crude oil. Agriculture, which remains a major segment of the Indian economy, was affected by the lack of sufficient rains in many parts of the country. Despite this, the sector recorded a marginal growth in 2009-10. Inflationary pressures started impacting the economy. The rise in the price indices remains a cause for concern and there are expectations of the Reserve Bank of India (RBI) hiking key interest rates as it tries to rein in inflation. The RBI has also commenced the process of gradually withdrawing measures that it had introduced in its efforts to help industry tackle the economic downturn. TRENDS IN THE OIL & GAS SECTOR During 2008-09, oil prices had reached record levels before retreating sharply. The fall in global demand consequent to the economic downturn contributed to the fall in the prices. The International Energy Agency had in April 2010 estimated the global demand for oil in calendar year 2009 to be of the order of 84.9 Million Barrels per day (MBPD) representing a decline of 1.3 MBPD over the previous year. This decline could be attributed to the fall in demand in Organisation for Economic Co-operation & Development (OECD) countries. The Organisation of Petroleum Exporting Countries (OPEC) had in response to these developments, put in place production cuts and had tried to ensure high levels of compliance. As a result, oil prices started recovering although they did not go back to the record levels reached in 2008-09. The benchmark Brent crude touched a high of USD 80.5 per barrel and a low of USD 46.5 per barrel during 2009-10. Demand for crude oil and prices thereof were helped by strong demand from countries like China. Oil prices continued to remain above USD 80 per barrel before declining to some extent on account of the crisis in Europe. Oil prices are expected to be influenced by the pace of the economic recovery in the developed countries. Even though there was a sharp fall in the demand for oil as compared to the previous year on account of the decline in demand in Europe and North America, strong demand in countries like China and India ensured that the overall fall was contained. As per the Oil Market Report issued by the International Energy Agency in July 2010, the world oil demand in 2010 is expected to be around 86.50 MBPD,
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which could increase to 87.8 MBPD in 2011. This increase in demand is expected to be driven by the sustained growth in demand from non-OECD countries. The year 2008-09 had seen a compression in the light-heavy crude and product differentials with the Brent-Dubai differential down to USD 1.6 per barrel. The trend continued in 2009-10 and the average differential for the year was negligible. The decline in the differentials can be attributed to reduction in the production of heavy crude oil. Although the differential between Brent and Dubai crude reappeared in April 2010, the position has changed significantly in May 2010 when the differential became negative. At present, there is modest differential between light and heavy crude and this is expected to continue during the remaining period of 2010-11. Even as demand for crude oil shows signs of improving, OPEC countries which had cut back production to arrest the slide of prices can be expected to increase output gradually to meet the rising demand. At the same time, prices are not expected to move downwards significantly. However, the uncertainties plaguing the global economy could have an impact on the crude oil prices, as was seen recently when crude oil prices declined in response to the Greek debt crisis. As in the case of crude oil, the average prices of key petroleum products in 2009-10 were lower than the prices in 2008-09. This has brought some respite to countries which are dependent on imports for meeting their requirements of petroleum products. Demand for gasoline in key markets like United States of America has remained flat on account of high unemployment rate and changes in consumer spending habits. Demand is expected to grow once the global economy recovers fully. Demand for diesel also fell significantly in 2009 on account of the economic slowdown. This was offset to some extent by higher demand for heating during the winter. As the global economies recover, demand for diesel should increase significantly. The aviation sector was one of the worst hit in the economic downturn and consequently, demand for ATF has suffered. Demand for ATF is also expected to increase in line with the overall economic recovery. INDIAN PETROLEUM SECTOR The year 2008-09 saw the GDP grow at around 6.7% over the previous year. This was in contrast to the previous few years when the growth was sustained at above 9% levels. Although the Indian economy was amongst the few in the world to remain on the growth path, the GDP grew only at 7.4% in 2009-10. With the monsoon being deficient in large parts of the country, agriculture was impacted and lack of growth in this sector affected the overall growth rate. However, the Industry has shown strong signs of rebound while the services sector is slowly recovering. As
per the provisional figures released by the Petroleum Planning & Analysis Cell in the Ministry of Petroleum & Natural Gas, consumption of petroleum products in the country in 2009-10 was of the order of 138.2 MMT, which represented an increase of 3.44% over the previous year when the demand stood at 133.60 MMT. The growth rate was in line with the rate of increase in consumption in 2008-09. Even as demand for transportation fuels like MS and HSD has grown over the previous year, the two products reflect different growth trends. While demand for MS has grown by 14% as compared to 9% in 2008-09, the growth in Diesel demand at 9% is around the same level as in the previous year. The demand for LPG has increased by around 6.3%. The previous year had seen demand for ATF fall on account of the slowdown in the Aviation sector. This trend was reversed in the current year with demand for ATF increasing by 4.6%. However, the consumption of Naphtha has declined significantly during the year. The growth in Bitumen consumption has been sustained and there has been an increase in demand for Lubricants reflecting the improvement in industrial activity. During the year under review, the cost of the Indian basket of crude oil averaged around USD 70 per barrel as compared to an average cost of USD 85.3 in the previous year. The reduction in the cost of the Indian basket of crude oil was a welcome relief to the oil marketing companies who have had to bear the burden of underrecoveries on account of selling MS, HSD, SKO and domestic LPG at prices which were below the cost. Although the average price of the Indian basket of crude oil was lower, there was a sharp rise in the quantum of crude oil imports. As compared to the imports of 128.16 MMT of crude oil in 2008-09, the quantum of crude oil imported in 2009-10 stood at 159.26 MMT. However, the foreign exchange outgo on crude oil imports in 2009-10 at USD 80 billion did not differ significantly from the level of USD 77 billion in 2008-09. This can be attributed to the lower level of crude oil prices as compared to the earlier year and also on account of the appreciation of the rupee against the dollar. The international prices had shown signs of firming with average prices during the period April 2010 to July 2010 being higher than the average price in 2009-10. However, with concerns centred on the economies in Europe, a sustained rise in prices is not expected in the near future. While the increase in the country’s refining capacity has meant rising volumes of crude oil imports, it has also led to a reduction in the import of petroleum products. The quantum of product imports declined to 14.66 MMT in 2009-10 from a level of 18.29 MMT in the previous year. Consequently, there has been a significant reduction in the Annual Report 2009-2010
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foreign exchange outgo on product imports from USD 13.5 billion to around USD 7 billion in the current year. At the same time, India’s exports of finished products have increased from 37 MMT in 2008-09 to touch a level of 51 MMT in the current year. However, the total exports realisation in foreign exchange of USD 31 billion was not significantly higher than the amount of USD 27 billion realised in 2008-09, mainly on account of the lower prices in the international market. The volatile crude oil prices in 2008-09 had imposed an enormous strain on the finances of the public sector oil marketing companies. Although the volatility reduced during the year, the marketing companies continued to suffer from significant amounts of under-recoveries, which was impacting their liquidity position and leading to increased levels of borrowings. The Government of India therefore allowed prices of petrol and diesel to be hiked by Rs. 4 per litre and Rs. 2 per litre respectively in July 2009. In the Union Budget presented to Parliament in February 2010, the central excise duty and customs duty in respect of petrol and diesel were increased and this impact was passed on to consumers. Apart from this, there were no revisions in the prices of the four sensitive petroleum products during the year. The under-recoveries on the sale of petrol and diesel were compensated by the upstream oil companies by way of discount on the crude oil purchased by the refining companies. In the previous years, the Government had issued bonds to the oil marketing companies to compensate for the losses suffered on sale of SKO and domestic LPG. During the current year, there was a change in the mechanism adopted by the Government, when it decided to provide cash instead of bonds as compensation against the underrecoveries on the sale of SKO and domestic LPG. Although this will help in improving the financial situation of the downstream oil marketing companies, the reimbursement from the Government was only partial and BPCL had to absorb an amount of around Rs. 1200 crores. In February 2010, the Expert Group on ‘A Viable and Sustainable System of Pricing of Petroleum Products,’ headed by Mr. Kirit Parikh, submitted its report to the Government of India. The report recommends the permitting of free market pricing for petrol and diesel and the raising of the administered prices for domestic LPG and kerosene. The Government had constituted an Empowered Group of Ministers (EGM) headed by the Union Finance Minister to decide on the recommendations of the expert group. The EGM at its meeting held on June 25, 2010 took the decision to immediately free petrol from pricing controls. The EGM also decided that decontrol would also be extended to diesel pricing in due course of time. Consequently, retail selling price of petrol has been increased by Rs. 3.50 per litre. In the case of diesel, retail
selling price has been increased initially by Rs. 2 per litre. The EGM also decided to increase the retail selling price of a 14.2 kg domestic LPG cylinder by Rs. 35 and that of kerosene by Rs. 3 per litre. These decisions will bring significant relief to the public sector oil marketing companies by reducing the quantum of under-recoveries besides improving their cash flows. Further, the decision on decontrol of prices of petrol and diesel will impact demand and will lead to enhanced competition from private sector oil companies. India’s domestic production of finished products is considerably higher than the domestic demand. The domestic crude oil processing in 2009-10 stood at 186.6 MMT as compared to 157.1 MMT in the previous year. With additional capacities expected to come on stream in the coming days, India will continue to remain long on refining capacity. With the expected entry of the major private players following the decontrol of pricing of petrol and diesel, public sector oil marketing companies will face serious competition. At the same time, the global economic scene continues to remain an area of concern. Any crisis that may erupt on account of past excesses would have a major impact on commodity prices and demand. The coming days therefore, are likely to be challenging while offering immense opportunities for growth. OPPORTUNITIES AND THREATS India’s GDP is expected to grow at a healthy rate in the coming years. As energy demand grows, oil and gas companies will have a major role to play in meeting the rising demand. At the same time, enormous challenges lie ahead. As the country is largely dependent on imported crude oil, the price volatility will be a major concern. The decontrol of pricing of auto fuels will significantly enhance the level of competition as a consequence of private oil companies resuming their marketing operations. At the same time, if the under-recoveries continue on products like SKO and LPG, the public sector marketing companies could face constraints on the liquidity front. The product specifications for MS and HSD have become more stringent with effect from April 1, 2010, and a road map has been laid down for these specifications to become effective across the country. Oil companies have to ensure adequate supplies of products meeting the specifications. Although refineries have geared up to meet the new requirements, there are logistic challenges involved in handling and moving products of different specifications. The refineries in Mumbai and Kochi are in a position to make available the products and the commissioning of the refinery at Bina will further strengthen BPCL position in this regard. ’s The capacity of the Kochi refinery has been expanded and the new grass roots refinery at Bina is slated for
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Bharat Petroleum Corporation Limited
commissioning during the year 2010-11. The BPCL group including Numaligarh Refinery Limited will have a combined refining capacity of 30.5 MMTPA. The geographical distribution of the refineries will enable BPCL to have access to its own source of supply in markets across the country. The new grass roots refinery at Bina in Madhya Pradesh, which is being set up by Bharat Oman Refineries Limited (BORL), a joint venture company promoted by BPCL, will be commissioned in 2010-11. Although the company has not been able to go ahead with its proposed Initial Public Offering of shares, the joint venture partner, Oman Oil Company (OOC) made fresh investments by subscribing to further shares of BORL at a premium. With BPCL having already made available sufficient funds, the progress of the project was maintained. Unlike the previous year, refining margins during the year were under pressure. However, things are expected to improve in the coming days. The narrowing of the spread between heavy and light crude has to an extent negated the benefit arising out of the ability to process heavier crude oils and achieve better margins. The retail fuels market continues to offer immense potential for growth and profitability. With the economy doing well, the higher levels of disposable incomes and enhanced aspirations of people have led to automobile companies recording significant sales growth. This in turn, offers opportunities for oil marketing companies to grow in terms of volume. With the Government having decided to decontrol prices of these fuels, public sector oil marketing companies would no longer have to bear the burden of the under-recoveries which had been impacting their operations in the last few years. At the same time, the degree of competition is expected to go up with the major private players coming back into the market. The overall demand is also likely to be affected based on the movements in the prices. There will also be challenges in terms of ensuring site security of the outlets. BPCL remains confident of facing these challenges and growing in the market. The LPG business continues to be impacted by the burden of under-recoveries on the sale of domestic LPG. Although the decision of the Government of India to provide cash in lieu of the under-recoveries in 2009-10 was welcome, the fact remains that a part of the burden had to be borne by BPCL, as the entire quantum of under- recoveries was not reimbursed. Further, there is no clarity on the mechanism that will be adopted during the year 2010-11 and at current levels, the marketing companies continue to sell domestic LPG at prices which are lower than the costs. With the recent increase in the price of a domestic LPG cylinder, the burden of under-recoveries will be mitigated to some
extent. The Government of India has ambitious plans of giving a big push for making available LPG in rural areas. This will offer significant potential to the oil companies for enhancing their sales volumes. BPCL also continues to strive for maximising value through increased sales of commercial LPG where prices are decontrolled. The Industrial & Commercial business continues to operate in a highly competitive environment. With the increased availability of gas in the country, the sales of products like Furnace Oil, Naphtha and LSHS have been impacted. The business has focused on increasing the sale of Bitumen, particularly in markets with good potential and high margin special products like MTO, SBP and Hexane. The business has also carried forward its plans of entering the international bunkering market with the commencement of bunkering sales at Mumbai Port. The first exclusive International Bunkering Terminal of BPCL was inaugurated in JNPT Port in May 2010. The launch of similar facilities in Cochin Port in July 2010 will further boost this initiative. This will remain an extremely challenging business in the days to come and the overall economic and industrial growth will hold the key for the growth of the business. BPCL was one of the first entrants in the emerging gas business. With the increased domestic availability, the gas business was hived off from Industrial and Commercial and a separate SBU was created. This will help bring the required focus and enable BPCL to move forward with its plans. Having access to the distribution infrastructure is critical in the gas business. BPCL is looking at joining hands with other companies for submitting bids for new pipelines to be put up in different parts of the country. The Lubricants sector has seen an uptrend in line with the overall economic recovery. Although there are a large number of players in the market, the business expects to hold its own in the days to come by leveraging its strengths in terms of availability of base oil, tie-ups with some of the leading automotive companies and focusing on Research & Development to offer better products to customers. The Indian aviation scene is characterised by domestic airlines having serious cash flow problems which are posing major challenges to the oil marketing companies. Consequently, the oil companies are grappling with the issue of high levels of outstanding dues from their airline customers. At the same time there is intense competition for retaining and acquiring customers. BPCL was successful in sustaining its sales volumes by retaining most of its existing customers and acquiring new customers, especially foreign airlines from other companies. BPCL’s wholly owned subsidiary company, Bharat PetroResources Limited has taken rapid strides in the field of exploration & production. As on date, it has got Annual Report 2009-2010
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participating interests in 26 blocks spread across different countries including India. Discoveries have already been announced in two blocks in Brazil and Mozambique. These hold immense promise. At the same time, the business will involve considerable investments during the exploration and development phases. BPCL remains confident that its efforts will bear fruit in the coming years. The business environment remains very challenging. At the same time, the growing economy offers immense potential for oil companies. The Government’s move to decontrol prices of MS and HSD will benefit oil companies by helping them to implement their capital expenditure plans and rein in their interest costs. Although competition will increase, companies like BPCL, with their traditional strengths in the market are expected to keep growing. Also, the mechanisms put in place during the period of economic slowdown will stand the company in good stead. BPCL is therefore confident of not only facing the competition, but also remaining on the fast track for growth. PERFORMANCE The performance of the various Strategic Business Units (SBUs) and Entities is discussed in detail in the following paras. REFINERIES BPCL achieved a combined refining throughput of 20.41 MMT in 2009-10 as compared to 19.95 MMT in the previous year. During the year, the refining capacity at Kochi refinery was increased from 7.5 MMTPA to 9.5 MMTPA. At Mumbai Refinery, facilities for upgrading the quality of MS and HSD were put up and the refinery commenced production of the Euro IV grades well in time to meet the requirements under the Government’s auto fuel policy. Despite the major shutdown of key units for revamp and turnaround activities, both refineries managed to achieve capacity utilisation in excess of 100%. The Mumbai refinery recorded its highest ever production of C3, LPG, ATF, Lube Oil Base Stock and 380 cst Fuel Oil. Kochi refinery achieved its highest ever production of ATF and packed Bitumen during the year. The gross refining margin (GRM) during the year for Mumbai refinery was USD 1.78 per barrel as compared to USD 4.48 per barrel in 2008-09 while for Kochi refinery, the GRM for the year was USD 4.87 per barrel as against USD 6.27 per barrel in 2008-09. The reduction in GRM in the two refineries can be attributed to the unfavourable crack spreads during the year, as reflected in the fall of the Singapore Dubai cracking margin from USD 5.8 per barrel in 2008-09 to USD 3.5 per barrel in 2009-10. During the year, several measures were taken to achieve better refining margins. Substitution of Naphtha as feed
and fuel by Regasified LNG (RLNG), recovery of hydrogen from CRU offgas and production of light lube fractions were some of the improvement measures undertaken in the Mumbai refinery. Similarly, the implementation of Integrated Refinery Business Improvement Program (IRBIP) proposals at Kochi refinery was completed during the year, with a net benefit from implementation of 17 proposals of approximately USD 17.95 million which translated to a benefit of 32.05 cents per barrel. Kochi refinery has also implemented a state-of-the-art integrated Manufacturing Execution System consisting of software solutions for Planning, Scheduling, Blending, Production management and Laboratory Information management which is helping to streamline the processes and improve decision making. The refineries have brought about significant improvements in their day-to-day operations through quality circles and six sigma clubs. The quality circles which span almost all major functional areas were exposed to industry best practices through training programmes, industry visits and competitions. Mumbai Refinery’s Quality Control Team won the “Par Excellence Award” – the highest category award – in the National Convention of Quality Circle Forum of India (QCFI) held at Bangalore in December 2009. Three Circles (Power & Utility / Manufacturing / Maintenance) won the Excellence Award at the same convention. The refinery quality assurance systems strived to achieve highest quality standards through meeting the requirements/ standards of reputed external certifying agencies and accreditation bodies like National Accreditation Board for Testing and Calibration (NABL), Directorate General of Civil Aviation (DGCA), Directorate General of Aeronautical Quality Assurance (DGAQA), Centre for Military Airworthiness and Certification (CEMILAC), International Organisation for Standardization (ISO) etc. The refinery laboratories continued to perform very well in the international laboratory proficiency testing scheme run by Shell Global with more than 90% rating. BPCL Mumbai Refinery won the Indian Merchants Chamber – Ramakrishna Bajaj National Quality Award (RBNQA) – 2009, the highest recognition in the manufacturing category, for the third consecutive year. RBNQA is one of the most prestigious quality and business excellence awards modelled on the world famous Malcolm Baldrige National Quality Award in the United States of America. High safety standards were maintained during the year at the refineries leading to good all round safety performance. The Occupational Health and Safety System at both the refineries are certified to OHSAS 18001:2007 standards. Kochi refinery continued its stellar performance in safety management this year too and reached the milestone of
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17 million man-hours without any lost time accident. Mumbai refinery reached the 4 million man-hours mark and achieved a 32% reduction in total number of first aid and minor injuries as compared to the previous year. In order to enhance the mechanical integrity and reliability of static equipment, both refineries have completed implementation of Phase I of the Asset Integrity Management System (AIMS) involving systematic scheduling & monitoring of inspection activities, improved analysis of inspection data, generation of equipment health records etc. through a state-of-the-art software solution. The refineries have now embarked on Phase II of the project consisting of Risk Based Inspection (RBI), an initiative to prioritise plant inspection based on the associated risks (probability and consequence of failure) and schedule maintenance activities accordingly. On the environmental conservation front, the replacement of liquid fuels with RLNG in Mumbai refinery has contributed to the reduction of CO2 and SO2 emission from the refinery. The refinery also achieved recycling of around 1200 MT/ day of effluent water to the Cooling Water System, thus saving equivalent quantity of precious fresh water. More than 7000 M3 of sludge, generated mostly from crude oil tank bottom cleaning, was treated successfully at the refineries using efficient techniques including BLABO technology recovering valuable oil before residual treatment. New rainwater harvesting facilities were commissioned at Mumbai refinery with catchment potential of 15000 M3 of water. A Biogas plant based on technology developed by Bhabha Atomic Research Centre, with a capacity to treat 1000 Kg/day canteen waste was installed at Kochi Refinery. In tune with BPCL’s philosophy of harnessing the human resource potential, various learning and development initiatives were organized at the refineries. These included functional programmes, strategy workshops, people management skills and on-the-job training. More than 4000 employees benefited through such training programmes during the year. A series of leadership skill development workshops were also conducted for the officers. In addition to in-house programmes, staff were also sent for training programmes organized by premier institutions in India to keep them abreast of the global trends as well as to provide them with the opportunity of collaborative learning with senior executives of other organizations. Social welfare and development has been at the core of BPCL’s corporate social responsibility philosophy. The company’s efforts have been to bring about qualitative changes in the lives of the surrounding community through well planned & coordinated social welfare initiatives. During the year, BPCL initiated a number of major community programmes such as rejuvenation of
Thannerchal fresh water lake at Irimpanam, housing scheme for the poor in the neighbouring Panchayats at Kochi, vocational guidance courses and medical services at Mahul and Karjat villages near Mumbai. In its continuous endeavour to ensure quality education, programmes such as donation of scholarships and utilities for poor students, extending capability exploration and enhancement programmes for talented poor children and setting up of one-teacher schools in remote tribal settlements of Kerala were undertaken. Child guidance clinics providing counselling on scholastic problems, behavioural patterns and coping with stress for students on a one-to-one basis and in groups were arranged regularly at schools near Mumbai Refinery. For enhancing community safety and security, traffic signal systems at the busy junction of Vyttila, Kochi were renovated, a training scheme for State Fire & Rescue Service in handling hazardous chemicals was started and a quick reaction armed vehicle to counter terrorism was donated. BPCL has also joined hands with Cochin Heritage Zone Conservation Society under the District Administration in its effort to conserving the heritage sites at Kochi. RETAIL The Retail segment of the oil market in India saw sales volume grow by 9.3% in 2009-10. The sales volume of only the public sector marketing companies grew by 7.8% over the year 2008-09. The year 2009-10 saw the resumption of retail operations by the private oil marketing companies, who had scaled down operations in the previous year, owing to their inability to absorb the high level of under-recoveries on the sale of MS and HSD. BPCL ended the year with a retail sales volume of 17.21 MMT as compared to 16.16 MMT in the year 2008-09. BPCL’s sales volume of MS in 2009-10 stood at 3.56 MMT as compared to 3.22 MMT in the previous year reflecting a growth of 10.69%. Although the total volume of MS has increased, the trend of decline in the sales of branded fuel continued with sales of ‘Speed’ going down by 42% over the previous year. The sale of ‘Speed’ in 2009-10 was 355.7 TMT as against 610.5 TMT in the previous year. The continuing decline in the sales volumes of branded fuel can be attributed to the difference in the basis of taxation as compared to unbranded petrol, leading to very high price differentials. BPCL ended the year 2009-10 with a sales volume of 11.92 MMT of HSD reflecting a growth of 6% over the volume of 11.24 MMT recorded in 2008-09. As in the case of MS, there was a sharp decline in the sales of branded HSD ‘Hi Speed Diesel’ with sales declining from 782.37 TMT in 2008-09 to 274.07 TMT in the current year. Annual Report 2009-2010
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BPCL commissioned 304 new retail outlets during the year. The public sector oil companies together commissioned 1557 outlets as compared to 116 outlets commissioned by the private players. The emphasis on site quality in the urban markets and strategic expansion on highways paid off handsomely. In the Highway sector, the throughput per outlet for One Stop Truck Stop (OSTS) outlets has reached 811 KL per month showing a growth of 14.7% and that of Highway Star outlets has reached 400 KL per month. The qualitative aspect of the retail network continued to make it stand apart from other industry members with overall throughput per RO for BPCL at 214 KL, which is 21% higher than other industry members. Throughput of OSTS was less during 2009-10 as compared to 2008-09, due to commissioning of new OSTS and supply related issues during the first half of the year. BPCL has ambitious plans of commissioning over 800 new outlets in 2010- 11. The sales volumes of CNG and Auto LPG increased as compared to the previous year. During the year 2009-10, CNG sales volume stood at 177.02 TMT, representing a growth of 16.63% over the volume of 151.78 TMT achieved in the previous year. Similarly, the sales of Auto LPG showed a marginal increase from 53.72 TMT in 2008-09 to 57.78 TMT in the current year. During the year, 21 CNG stations and 6 Auto LPG stations were added to BPCL’s network. The emphasis during the year was on enhancing customer enablement through a Customer Acquisition Programme using business models for MS and HSD. It aimed at acquiring customers outside the outlet, revival of dormant customers and enrolling more customers to SmartFleet and Petro Cards. Sales campaigns were organized to build relationships with the dealers and customers. Special attention was paid to outlets which had been lagging behind and registering negative sales growth. These measures have contributed significantly to increasing sales volumes. The throughput handled by Logistics during 2009-10 was 44.17 Million KL, an increase of 15.6% over the throughput of 38.2 Million KL during 2008-09. The thrust during the year was on achieving better Inventory control and this led to a reduction in the working capital to the tune of over Rs. 900 crores. The Vehicle Tracking System now covers the entire fleet of 6000 tank lorries used for delivering MS and HSD to the retail outlets. The volume of rail movements crossed 39.5 MMT during 2009-10 which is the highest achieved in a single year. Efficient operations resulted in the reduction in operating costs and operating losses. The “Pure for Sure” (PFS) network was further expanded and a total of 7091 retail outlets are now certified under the PFS banner. Over 84% of the retail outlet network now consistently delivers superior value to the customers.
On the Retail Automation front, the total number of outlets covered under automation has reached 2266, which is the highest in the oil industry. BPCL has launched the Financial Inclusion program for the Small Distance Commercial Vehicle (SDCV) customers on 13th July, 2010 in the presence of the Honourable Finance Minister, Mr. Pranab Mukherjee. BPCL has joined hands with Corporation Bank and UTI Asset Management Company in this initiative. The programme seeks to help BPCL’s dealers to build a strong relationship with the customers, many of whom have a great need for financial inclusion. BPCL’s select Retail Outlet dealers will work as Business Correspondents of Corporation Bank to facilitate branchless banking to the trucking customers through biometric smart card based technology. The customers will be offered a basic savings account involving small cash deposits and withdrawals, recurring deposit, micro credit, micro pension, micro insurance and health insurance. Micro credit to eligible customers will be given at normal banking rates. BPCL is the first and the only oil company in India so far to offer Financial Inclusion services through its Retail Outlets in Mangalore and Patna territories, where pilots were launched. The PetroBonus Program was the first of its kind to be introduced in India with the launch of Petro Card. The 10th anniversary of the launch was celebrated on 29th September, 2009. During the year, the “Petro Card” base grew by 62,575 customers to reach 1.02 million and the SmartFleet base grew to 1.14 million with the enrolment of 98,640 vehicles during the year. Keeping pace with the increasing penetration of credit and debit cards in various consumer segments, the business entered into strategic payment facilitating alliances with HDFC Bank for increased customer convenience and to drive their respective customer bases to BPCL outlets. This has grown into a 2.16 million strong membership base clocking about 1 lakh transactions every day at BPCL outlets across the country. BPCL’s customer loyalty programmes continued to scale new heights by achieving sales of over Rs.10,000 crores reflecting a growth of 19.5% in volume terms. The customer acquisition strategy adopted and the focus on getting new telecom customers has contributed significantly in achieving these numbers. During the year, the Allied Retail Business grew by 18% with a turnover of Rs. 359 crores making it not only the largest non-fuel revenue generator in the oil industry, but also one of the leading retail networks in the country offering a basket of services ranging from C-stores and Quick Service Restaurants, to financial and travel related services. The network of 235 In & Out stores is by far the largest organized convenience retailing proposition in the country and recorded a sales turnover of Rs.146 crores. As part of the alliance management strategy, 332 ATMs
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from multiple banks are currently operating at BPCL outlets. The alliance initiative with Western Union Money Transfer continues to do well. A pilot project for selling Motor Vehicle Insurance policies through the retail network has been initiated. The In & Out e-Traveller - the e-ticketing/ e-booking facility for rail, air and hotel accommodation is presently available at 190 outlets. INDUSTRIAL AND COMMERCIAL Even as the economic revival commenced, the year 2009-10 saw the Industrial & Commercial (I&C) business face numerous challenges like increasing trend of crude oil and product prices, large scale import of products by traders and end users, aggressive selling of products by private marketing companies and improved availability of gas. After the creation of a new business unit to handle Gas, I&C business achieved a volume of 5.6 MMT in 2009-10. The increased availability of gas in the country and priority allocation to the power and fertilizer sectors has affected the sale of liquid fuels like Naphtha and LSHS, which has seen a marked reduction of around 21% and 24% respectively in volume terms during 2009-10. The business continued its focus on Bitumen marketing in deficit markets, which resulted in BPCL achieving the highest growth in packed Bitumen sales of 4.76% even as the public sector oil companies saw a decline of 9.3%. BPCL also recorded the highest growth in the sale of products like SBP and MTO. The business has entered the international bunkering segment with the commencement of the 380 cst fuel oil bunkering sales at Mumbai Port during the year. With the inauguration of bunkering facilities at the JNPT port in May 2010 and the commissioning of similar facilities in Kochi in July 2010, the bunkering initiative is poised to grow in the coming years. Efforts were continued to achieve speedy collection of customer dues to ensure better cash flow management. The collections from customers through channels like Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) reached a level of Rs.12,000 crores during the year 2009-10. At present, over 60% of the total turnover of the business is being collected through these platforms. Having been able to successfully withstand the fierce competition and challenging market conditions, BPCL is gearing up to face fresh challenges by devising appropriate strategies for re-aligning and positioning itself in high consumption centres and unrepresented markets. GAS BPCL was one of the first movers in the emerging gas market in India by becoming one of the promoters of Petronet LNG Limited (PLL). BPCL is one of the marketers
of LNG which is made available from the PLL terminal at Dahej. BPCL also has a share of 40% in the upcoming LNG terminal of PLL at Kochi. BPCL is also a pioneer in setting up City Gas Distribution (CGD) networks in India and has promoted four Joint Venture Companies in this area. With a view to have greater focus, gas marketing, which was earlier a part of the I&C Business, has been made as a separate business from 2009. During the year 2009-10, the total gas volume handled was 820 TMT as against 866 TMT in the previous year. The decrease in volume is on account of the completion of the contract for supply of RLNG to Ratnagiri Gas Power Private Limited in September 2009 after the allocation of the indigenously produced gas to them. Apart from the 710 TMT of sales to consumers, 110 TMT of gas was supplied to Mumbai refinery. BPCL was the first public sector refinery to start drawing from the KG D6 gas allocation from February 2010. BPCL presently has a firm allocation of 0.26 mmscmd and fall back allocation of 0.31 mmscmd of RIL D6 gas for use at Mumbai refinery. A Gas Sale Agreement has also been signed by BPCL along with other offtakers, with National Thermal Power Corporation Limited for supply of RLNG for a period of 20 years to their Kayamkulam plant, with BPCL having a share of 0.4 MMTPA. LUBRICANTS The Lubricants business, which was the first to be decontrolled in the oil sector, is also one of the most competitive. Given that the Indian economy is expected to deliver healthy GDP growth rates, the Lubricants business offers immense potential for growth. BPCL has inherent strengths including a strong geographical presence across the country, Research & Development competency enabling continuous product upgrading, own source of Group II+ base oil at Mumbai, pan India presence in terms of distributor network and young and energetic workforce committed to achieving excellent performance. At the same time, there are inherent threats like increased competition from re-refiners offering local brands of lubricants and the continuous phasing out of two stroke engines. Given this background, the Lubricants business delivered a sales volume of 231.12 TMT in 2009-10 as compared to 203.22 TMT in the previous year representing a growth of 13.73% over the previous year. The finished lubricants volume grew by 23% during the year. Both the Reseller channel (Retail & Bazaar) and Direct channels grew by over 20%. In the retail channel, focus remained on generating secondary sales at the outlet. Initiatives like MAK QUIK and One Day Wonder improved visibility of the brand and offered a value proposition to customers. A value added service was created by offering authorized Hero Honda Annual Report 2009-2010
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service stations under the brand ‘City Works’. As at 31st March, 2010 there are 160 City Works operating at various locations across the country. The Bazaar channel has assumed great importance and BPCL has identified high potential markets and remained aggressive in those markets to achieve deeper penetration. BPCL’s MAK Lubricants are now available across the country at more that 23,000 retail counters apart from small mechanic shops and authorized service stations. New products like MAK Boat XP MAK Chakda were launched during the year. , BPCL has expanded its customer base in the Direct market across segments with specific focus on key growth sectors in India. The full range of products are on offer from normal applications like Engine oils to Hydraulic, Cutting, Marine and very specialized products for applications in Defence and Railways. During the year, products were launched for specific applications like MAK Steel for steel plant applications, MAK Amocam Plus and superior Industrial Gear Oils. On the exports front, BPCL entered the Bangladesh and Sharjah markets during the year. Considering the importance of the Original Equipment Manufacturers’ (OEM) segment, there was a special focus on OEM business and BPCL entered into two new alliances which saw the introduction of Escorts 4 stroke Bike Engine oil and TATA Passenger Car Motor oils. Given that the per capita consumption of lubes in Asia is 1/6th of some of the western countries, this category has a promising future in the Indian market. Barring the recent economic slowdown, the projections for the automotive sector remain strong and this will help the lubes sector to remain on the growth path. However, the future volume growth would be impacted by the use of better quality, long drain lubes thus increasing the replacement cycle for lubes. In the short term, intense competition can be expected and success of a product would largely depend on how well it is positioned, branded and distributed. LPG The year 2009-10 was an eventful year for the LPG Business. While the international price of LPG has been vacillating, the domestic LPG consumers were by and large insulated from those fluctuations. Although BPCL’s profitability and liquidity have been adversely impacted, the demand of genuine customers was fully met while ensuring increased efforts to avoid leakage of subsidized LPG to the non-domestic segment. BPCL’s total LPG sales for 2009-10 stood at 3235.82 TMT giving it a market share of 25.8%. LPG sales volume grew by 6.68% as compared to the previous year when the sales volume was 3032.9 TMT. With the addition of 1.9 million new customers during the year, ‘Bharatgas’ is present in approximately 28 million households as on
31st March, 2010. The customers are serviced through a network of 2187 LPG distributorships. In terms of LPG bottling infrastructure, BPCL has 49 LPG Bottling Plants with a rated capacity of 2472 TMTPA. The total LPG bottling during the year 2009-10 was 2936 TMT, representing a capacity utilization of 107%. BPCL has also connected 48,533 households as on 1.4.2010 through the LPG Reticulated System or ‘Piped LP Gas system’ including 10,332 households who were enrolled in 2009-10. In the commercial packed segment, where the product is sold at market determined prices, BPCL’s volumes registered a growth of 26.44%. BPCL has commenced refill booking through SMS and IVRS system. The refill booking through SMS has been introduced at all state capital markets and metros. Refill booking only through SMS/IVRS has been taken up as a pilot for the Delhi market. During 2009-10, the ‘Beyond LPG’ initiative registered a turnover of Rs.700 crores representing a 59% growth over the previous year. BPCL’s efforts are directed at enrolling more distributors into the programme so that a larger section of the consumers could benefit from the value proposition. Bharat Metal Cutting Gas (BMCG), which was developed by BPCL to replace the conventional Acetylene, has come to be accepted as an ideal product for the metal cutting and brazing applications in the industrial sector. The product has gained tremendous popularity and confidence amongst the industrial users, primarily because of its performance efficiency and low cost vis-à-vis Acetylene. Continued refinement of this product is on and IIT, Roorkee has developed new nozzles which could further improve the cutting performance of BMCG. During the year 2009-10, 6323 MT of BMCG has been sold to the industrial sector, registering a growth of 33% over the volumes achieved in 2008-09. As part of the initiative to market BMCG overseas, BPCL has formed strategic alliances in the Middle East. With over 189 customers in Saudi Arabia and more than 50 customers in Oman, the product has been well received. Technical demonstrations were held in the United Arab Emirates and the product was launched in the Emirates of Fujairah, Sharjah, Dubai and Ras Al Khaimah. BPCL continues to accord the highest priority to HSSE initiatives. A number of initiatives are being pursued in this area with particular focus on leading a healthy life and injury free workplace. Several measures have been taken to ensure real time safety assessment of LPG plants with a view to identify and take corrective measures without delay. To meet market challenges and ever rising customer expectations, effective steps were undertaken to upgrade the skills and capabilities of field staff through focused Training and Development plans. During the year, e-learning
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Bharat Petroleum Corporation Limited
modules on BMCG, benchmarking and safety in LPG plants have been developed and launched through the LPG knowledge portal - “Bharatgas University”. AVIATION The Indian aviation sector has been passing through some tough times in the last two years, on account of the high prices of aviation turbine fuel and the effects of the economic slowdown. However, there were signs of passenger traffic increasing in the later part of the financial year and consequently, the industry sales volume of ATF which had declined in 2008-09, reflected a growth of 3% in 2009-10. During the year, BPCL had initially lost market share, mostly in the domestic segment, which was made up by acquiring new business from international airlines. Consequently, BPCL ended the year 2009-10 with a sales volume of 925 TMT, which represented a nominal growth of 0.91% over the previous year. During the year, BPCL commissioned ATF fuelling facilities in seven new airports. BPCL currently has a presence in 30 airports across India. The focus was on reducing the level of inventory holding, which has come down to 9 days from 19 days as at the end of the previous year. BPCL also commissioned the Hydrant Fuelling System at Gwalior Airport, which is the first of its kind at any Defence Airport. With domestic airlines facing severe liquidity constraints, BPCL’s working capital increased on account of higher outstandings from these customers. HUMAN RESOURCES It is BPCL’s continued endeavour to enhance its growth through the effective development of its human resources. As on 31st March 2010, BPCL had 13898 employees on its rolls. In the recent past, a combination of demographic factors, market forces and forays into new businesses has brought in a new urgency for the need to cultivate a workforce that offers true competitive advantage. Several learning processes and initiatives have been designed and delivered keeping this in view. In order to enable people at various levels to take up leadership roles in the future, a number of customised assessment processes and training programmes were introduced, keeping in mind business priorities and key skills required for critical roles. Further, to enable the resolution of the ongoing challenge of aligning business goals with individual goals, a series of workshops on “Strategic Performance Excellence” covering a large number of executives, are being conducted. Using the existing Balanced Scorecard framework, these workshops enable executives to appreciate business strategy, discover appropriate measures, take accountability and understand and respect interdependencies. Continuing its journey as a ‘Learning Organisation’, BPCL is in the process of creating its second generation cadre of
Internal Coaches equipped with the knowledge, skills and tools of Organisation Learning technology. These coaches will work with teams and help them in dealing with change/ crafting change for themselves and develop individual and collective capacity to reach goals. In an effort to take learning beyond training rooms, an innovative Case Study Challenge ‘Socratix’ was launched for employees to develop strategic insights and organizational vision. An “E-learning portal” was recently launched to reach out to over 4500 employees at several locations across the country, to provide them opportunities to enhance their soft skills as well as technical skills. Over the years, employees have been motivated to generate more ideas with a view to engage their creative minds to achieve excellence and enhance their learning process. The ‘IDEAS’ platform is one such initiative to recognize and promote creativity at the workplace. This participative tool has helped to promote employee commitment and involvement, besides improving efficiency derived from the ideas contributed by them. In 2009 a total of 272 entries were received under “Creative Stroke” for ideas that have been successfully implemented and 567 entries under Mind’s Eye Category for ideas that may have huge potential in terms of business benefits, but have not found the right platform for implementation. A total of 35 entries were adjudged winners under the various categories, in recognition of the contribution made by the participants to enhancing the organization’s effectiveness. Another milestone in strengthening the human resource management systems is the migration of the Performance Management System (PMS) into the SAP platform. The migration of PMS in SAP will bring about positive changes, such as enhanced accountability across the spectrum, discipline in terms of timely completion of the PMS and transparency in the end to end appraisal process. It is also envisaged that this should bring in sharper focus on performance culture in the organisation. Leveraging technology to further strengthen the quality of services provided to the internal customer by human resources is another core area of focus for BPCL. A module called “My Portal” is a one-stop dashboard available to every employee in the organization, wherein transactions related to leave, travels and tours, approvals, salary and offcycle payments and a host of other HR/Administration related activities are uploaded. By providing world class systems to make HR services smoother, faster, accountable and more effective, BPCL has taken another step to enhance its performance driven culture. Apart from providing opportunities to employees within the organization, BPCL also endeavours to promote excellence in higher education of meritorious students Annual Report 2009-2010
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through the BPCL scholarships scheme for higher studies. During the year 2009-10, 29 students going abroad for pursuing higher studies were provided financial support through this scheme. Employee Satisfaction Enhancement (ESE) Cell is a unique and innovative initiative taken by BPCL in its endeavour to make BPCL “A Great Place to Work”. The objective of the ESE Cell is to lay down a framework for prompt redressal of genuine grievances of all the employees of the Corporation. One of its focus areas is to reach out to the maximum number of employees in a proactive manner to listen to them, to understand their issues and concerns and resolve them. BPCL recognizes that unless adequately and promptly resolved, these issues would result in lower productivity and a demoralized work force. The Employee Assistance Programme - ESE Roshni was carried forward during the year. Through this programme, counselling services are provided for management staff and their family members by professional counsellors. More than 1100 management staff have taken advantage of the programme, appearing for online self assessment tests, reading self developmental articles and going for counselling. The ESE cell also conducted sessions on Yoga / Pranayam, team building exercises etc. These measures and initiatives undertaken by ESE Cell have reinforced BPCL as a caring and employee friendly organization and immensely contributed in enhancement of overall satisfaction and wellbeing of its employees. INTEGRATED INFORMATION SYSTEMS Information Technology remains one of BPCL’s strengths. BPCL has continued its efforts to leverage information technology with a view to achieve greater efficiencies in all its operations. A number of strategic initiatives were launched during the year in different areas. The product exchange arrangement with other oil companies is an important part of the sales and distribution process. With a view to leverage the technology for mutual benefit, BPCL has put in place a B2B system with IOC. The two companies have exchange transactions at over 100 locations across the country and the value of the transactions exceeds Rs. 40,000 crores annually. The settlement of these transactions involves considerable reconciliation efforts. The technology backbone in the two companies was leveraged and a seamless integration of the systems was achieved across the two companies covering logistics, operations and finance functions. The time and effort taken for reconciliation has reduced significantly in both the companies. It is planned to extend the solution to cover exchange transactions with other oil companies. The implementation of the “Access Control” module of the Governance Risk & Compliance (GRC) solution of SAP
R/3 was completed in all businesses. This is an important part of the overall risk mitigation mechanism. The solution will enable ease of user access provisioning, transparency and the availability of audit trail. This will also facilitate the synchronization of the Manual of Authorities with the SAP system to define access privileges and ensure segregation of duties. As part of the Business Intelligence (BI) system, information dashboards have been made available to the role holders in all businesses and for the senior management team. The system has many user friendly features and being role based, provides all the information needed for taking effective business decisions. The travel management module of SAP R/3 was made operational from 1st September 2009. A robust platform is now in place for managing the travel processes efficiently with budgetary controls and integration of the vendor settlement process. By extending part of the process to travel agents, the back end HR processes have been streamlined and simplified. The Indian GAAP (Generally Accepted Accounting Principles) is proposed to be converged with IFRS (International Financial Reporting Standards) from the financial year starting 1st April 2011. The “New General Ledger” solution in SAP R/3 addresses the requirements for the above transition and BPCL has migrated to this solution with effect from 1st April 2010. During the year, a major effort was undertaken to standardize the service procurement process in the system. This was initiated with a view to ensure correct accounting, better compliance with tax laws and to secure proper adherence to provisions relating to deduction of tax at source. The new process has since been rolled out across all businesses and entities. The security systems, both at the external and internal peripheries, have been upgraded with new tools and solutions to secure the environment from external threats. The Symantec endpoint security solution implementation has been completed and rolled out across the organization. Another major initiative undertaken was the implementation of the RSA Two Factor Authentication system for ensuring safe and secure access of the systems by end users. During the year, BPCL’s network was upgraded to Multi Protocol Label Switching (MPLS) involving close to 180 locations. This has helped the implementation of new applications systems besides improving the network uptime and bandwidths. Improved connectivity was also established through alternate routes to the existing 16 MBPS link connecting the Corporate Data Centre at Mumbai to the Integrated Data Centre at Noida near Delhi through a 45 MBPS link. A state-of-the-art e-mail archival system has been implemented to safeguard important
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Bharat Petroleum Corporation Limited
business information and to comply with the requirements relating to retention of data. For the fourth time in succession, the ERP Competency Centre has been awarded the CCOE (Customer Centre of Excellence) certification from SAP This certification is . valid for 2 years. HEALTH, SAFETY, SECURITY & ENVIRONMENT BPCL continued to adopt a holistic approach on Workplace Health, Safety, Security and Environment as prime areas with a view to achieve sustainable performance. The Regional Health, Safety, Security & Environment (HSSE) Councils played leading roles in terms of employee engagements through active participation and sharing best practices across businesses and entities. Special emphasis was given to training programmes with a thrust on reinforcing safety culture across BPCL. In this direction, several training programmes and workshops covering workplace health, workplace security & surveillance, water harvesting at locations, safety & safe driving training to transporters’ crew were arranged regularly at locations. During the safety audits at the locations, the importance of using the Personal Protective Equipments (PPEs) by all at the workplace was highlighted to ensure safe operations. Workplace Security remained a key concern for the entire sales network in general and oil & gas storage locations in particular. Locations were operating under the frequent security alerts raised from time to time even as they kept the supply and distribution chain uninterrupted. Security preparedness and response was ensured at all locations across the country. A unique workshop on ‘Workplace Security & Surveillance’ was designed in close co-ordination with the State Police / CISF experts and rolled out to cover vital locations. BPCL published the 3rd Corporate Sustainability Report for the year 2008-09 with the theme ‘Responsible Development’. This report was as per GRI-G3 norms and it is a matter of pride that the report was rated A+ by the third party assurance provider, M/s. DNV. This is the first Corporate Sustainability Report to be assured in India as per Standard: AA1000 AS 2008 version. INTERNATIONAL TRADE AND RISK MANAGEMENT Crude oil prices moved from their lows of USD 45 per barrel at the beginning of the financial year to around USD 80 per barrel at the end of the financial year 2009-10. This was mainly on account of optimism in the market following the global financial recovery. Unlike the earlier years, the general trend of sweet crude oil grades (Brent) commanding premium over sour (Dubai) grades, the year 2009-10 saw Dubai prices commanding premium over the Brent price. This was mainly due to regional variation like reduced demand in the United States, strong demand
in India and China, production cut by OPEC countries and stability in countries like Nigeria resulting in increased production of low sulphur crude oil. In order to take advantage of the prevailing low Brent-Dubai differential, BPCL carried out suitable changes in its procurement strategy by changing the crude oil mix of its refineries. During the year, the average price of Brent Crude Oil reduced by about 18% from USD 84.45 per barrel in 2008-09 to USD 69.62 per barrel in 2009-10. Further, the sweet / sour (Dated Brent / Dubai) difference reduced substantially from USD 1.6 per barrel in 2008-09 to USD 0.05 per barrel in 2009-10. During the year, BPCL imported 14.40 MMT of crude oil as compared to 12.70 MMT in 2008-09. In value terms, the cost of imported crude oil on Free on Board (FOB) basis amounted to USD 7560 million (Rs.35,419 crores) as compared to USD 7961 million (Rs.36,114 crores) in 2008-09. The average price stood at USD 70.4 per barrel as compared to USD 85.3 per barrel in the previous year. The ratio of “Term to Spot” purchase of imported crude oil was 62:38 which was lower than the 85:15 ratio in 2008-09, mainly due to the cut in production by OPEC. For procurement of spot cargo, BPCL sought better terms and conditions with the suppliers, expanded the vendor base, added new grades of crude oil and opened up new avenues for procurement of crude oil from floating storage. On the products front, BPCL imported 1588 TMT of HSD, 33 TMT of SKO, 211 TMT of MS, 228 TMT of LPG to meet the shortfall in supply from domestic sources. BPCL also imported 48 TMT of Reformate as blendstock during the year 2009-10. During the year, BPCL exported 2698.91 TMT of refined products. This was higher than the level of 1381.88 TMT exported during the previous year. Export of Fuel Oil increased from 664.29 TMT in 2008-09 to 982.58 TMT during 2009-10. Export of naphtha increased from 703.45 TMT in 2008-09 to 1341.45 TMT during 2009-10. During the year, BPCL also exported 352.39 TMT of High Sulphur Gas oil. In recognition of its export performance, Director General of Foreign Trade recognised BPCL as a “Premier Trading House”. This was an improvement over the earlier recognition status as a “Three Star Export House”. In order to ensure regular transportation from the foreign ports to its refineries, BPCL entered into a Contract of Affreightment (COA) with Shipping Corporation of India (SCI) for upliftment of 6 MMT per annum of imported crude oil for a period of three years. On the same lines, a COA is signed with SCI for upliftment of 2.35 MMT per annum of Mumbai High Crude for Kochi Refinery. Further, to ensure fixed cost of freight and take advantage of a depressed freight market, BPCL has taken two Afframax size vessels (80000 tonnage) on time charter. Strategies Annual Report 2009-2010
39
on optimal parcel size were worked out in order to bring down freight cost and inventory holding cost. A thorough examination of the existing terms and conditions of COA was carried out. These steps have contributed in reducing freight cost. Considering the high volatility in the prices of crude oil and petroleum products, hedging of refinery margins continued to remain an important focus area. Besides hedging the refinery margin, BPCL has undertaken hedging the price of platinum required for Kochi Refinery’s modernisation plan. With this hedging, BPCL achieved the distinction of being the first company in the Indian Oil Industry to cover exposure on the precious metal. BPCL added yet another feather in its cap by becoming the first company to undertake hedging of freight rate exposures. BPCL continues to be a front runner in the Industry with its expertise in Risk Management and is now a widely respected name by a number of players in the international oil market. The Trading and Risk Management (TRM) Board articulated the risk appetite of the Corporation. The Audit Committee of the Board also reviewed the hedging activities. The Risk Management Committee (RMC) continued to provide direction and guidance besides carrying out regular review of hedging positions. Regular review of credit exposure of counterparties was undertaken. Credit ratings of the counterparties were analysed and internal credit limits adjusted to incorporate any change in their credit ratings. New counterparties were enrolled with a view to diversify the credit risk and obtain competitive quotes. RESEARCH & DEVELOPMENT BPCL continued its focus on Research & Development activities at the Corporate R&D centre at Greater Noida in Uttar Pradesh, Product & Application Centre, Sewree, Mumbai and the R&D Centre at Kochi Refinery. R&D forms the backbone for Lubricants Business, to achieve a higher growth and better profitability through development of new formulations and alternate formulations for the existing Lube & Grease products. During the year, new products developed include Passenger Car Engine Oil for a major Original Equipment Manufacturer, Fully Synthetic Gear Oil, customer specific Metal Working Fluid, High Performance Grease etc. These would bring a number of business benefits in terms of improving BPCL’s market share, making available better quality products, reduce input costs etc. The Corporate R&D Centre filed five Indian and five foreign patent applications to protect the intellectual property that resulted from innovative research. As part of its new initiatives, BPCL continued its research collaborations with a number of leading research institutes. These include
collaborations with Indian Institute of Science, Bangalore, Osmania University, Hyderabad, Tamil Nadu Agricultural University, Coimbatore, IIT, Roorkee, IIT, Madras and Institute of Plasma Research, Gandhinagar. BPCL had taken up three projects with the Indian Institute of Science, Bangalore on cutting oils, adsorption of natural gas using nano technology and photo voltaic cells using new materials like copper, indium, gallium, sulphur, zinc. While the first two were started in May 2008, the third project was started in May 2009. The project on cutting oils was undertaken after it was found that the stability of soluble cutting oils was poor leading to complaints from customers. During the course of research, BPCL and the Institute have developed a machine that can measure friction at the point of contact. BPCL is in the process of obtaining a patent for the same and putting it into commercial use. There are challenges to be overcome before the product can be commercialized. Work is currently on with regard to the other two projects on improved methods of storage of gas and the next generation of solar cells. BPCL is planning to undertake further research projects with the Indian Institute of Sciences in areas like residue upgradation for producing value added products, alternate fuels, treatment of effluents, hydrogen production using solar energy etc. EXPLORATION AND PRODUCTION OF CRUDE OIL AND GAS Bharat PetroResources Limited (BPRL) was incorporated on 17th October, 2006 as a wholly owned subsidiary of BPCL to focus on exploration and production activities. Till date, BPRL has participating interests (PI) in 26 exploration blocks, in India and abroad (of which 9 blocks are in India and 17 are abroad - in 6 countries), with PI levels varying from 10% to 40%. The countries (besides India), where BPRL has blocks are Australia, Brazil, East Timor, Indonesia, Mozambique and the United Kingdom. All these blocks are in various stages of exploration, and BPRL’s acreage in all these blocks is about 81,000 sq km, of which approx 91% is offshore acreage. All the above interests are held either directly by BPRL, or through its Joint Ventures / wholly owned subsidiaries. BPRL, through its wholly owned subsidiary company, Bharat PetroResources JPDA Limited (BPR-JPDA LTD), has a PI of 20% in Block-JPDA 06-103-East Timor in the Joint Petroleum Development Area between Australia and East Timor. IBV Brazil Petroleo Limitada, a joint venture company where BPCL and Videocon Industries Limited each have a 50% share of the capital, has PI in 10 blocks in Brazil. Further, BPRL has incorporated a wholly owned subsidiary
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Bharat Petroleum Corporation Limited
company, BPRL International BV, which in turn, has incorporated BPRL Ventures BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia BV as wholly owned subsidiary companies for undertaking exploration activities in various countries. BPRL Ventures Mozambique BV has PI in a block in Mozambique, and BPRL Ventures Indonesia BV holds PI in a block in Indonesia. While the previous year was focussed on acquisition of exploration acreages, the current year predominantly was the year of consolidation with streamlining of operations in Brazil, moving ahead decisively on the Indian and overseas work programme, and venturing into the unexplored virgin basin of Mozambique. Also, PI in a block in the Nunukan basin in Indonesia was acquired during the year 2009-10, through the farming in process. The year also saw the announcement of 2 world class discoveries, one each in Mozambique and Brazil. The award of Joint Operatorship with Hindustan Oil Exploration Corporation Ltd. (HOEC) in the Rajasthan block during the NELP VII bid round was another milestone for BPRL. Looking ahead, BPRL is focused upon consolidation of its portfolio, while at the same time, keeping an eye open for potentially good opportunities. Constant updation and augmentation of the technical data base and in-house capabilities are also being actively undertaken. AWARDS AND RECOGNITION BPCL was conferred with the prestigious FE EVI (Financial Express & Emergent Ventures India) Green Business Leaders Award for the year 2009-10. The award recognizes the excellent green initiatives towards climate change. Team FE EVI, along with knowledge partner Indian School of Business, Hyderabad had conceptualised a unique model to award deserving companies in India from the ‘FE 500’ list. The selection criterion for the awards involved a study of 80 Indian businesses and evaluation of their performance over an extended period of time. Selection was also based on a company’s initiatives towards becoming a ‘Green Company’. BPCL has been awarded for understanding Climate Change to cut down the greenhouse gas (GHG) emissions and taking necessary steps to find cost effective mitigation solutions. BPCL received the Best Cash Management Deal for Electronic Receipt Solution instituted by the Asset Magazine, Hong Kong, a well respected finance magazine. The Asset Triple A transaction banking award is the industry’s most prestigious award for banking, finance, treasury and the capital markets. This award was in recognition of BPCL having introduced RTGS/NEFT collection with full integration with SAP through BNP Paribas Bank for the realization of money from the
customers, which has led to reduction of interest cost, bank charges, credit exposure, saving of man-hours relating to dealing with physical instruments and hassle free operations for the customers. BPCL was awarded the “Fleet Enabler of the Year” in The Apollo-CV Awards 2010. Apollo Tyres Limited, in association with CV magazine, announced the first set of dedicated awards for the commercial vehicle segment in India. A unique feature of these awards was that, apart from recognizing commercial vehicle and ancillary manufacturers, fleet operators too were acknowledged for their contribution to the industry. The BPCL brand has climbed up three notches to the sixth place, bettering its valuation to US $ 2.62 billion, according to the valuation of India’s Top 50 Most Valuable Brands by M/s. Brand Finance. BPCL has reinforced its standing in the energy industry by ranking 97th globally, 15th in Asia and 5th in Refining and Marketing among the Asian companies, as per Platt’s Top 250 Global Energy Companies 2009 list. The Bharatgas brand has been recognized as Business Superbrand 2009, the ranking given to exceptional brands on the criteria of market dominance, longevity, goodwill, customer loyalty and market acceptance. BPCL won the Readers Digest Most Trusted Brand Award in the Gold category for the third year in succession. The Association of Business Communicators of India (ABCI) recognized the company by selecting the ‘MAK online viral’ for the Gold Award. The external magazine – Journeys - lifted the Silver Award and the CSR campaign & Corporate Website won the Bronze Awards. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY BPCL has a system of internal controls to ensure optimum utilization and protection of resources, IT security, speedy and accurate reporting of financial transactions and compliance with applicable laws and regulations, as also internal policies and procedures. For this purpose, the company has formulated a clearly defined organization structure, authority limits and internal guidelines, rules for all operating units and service entities. ERP Solution and Business Information Warehouse systems have further enhanced the internal control mechanism. BPCL has an Internal Audit department consisting of experts from various functions, which supplements the review of key business processes and controls through regular audits. Audit reports, significant risk area assessment and adequacy of internal controls are also periodically reviewed by the Audit Committee through meetings held with Management, Internal Audit and the Statutory Auditors. Annual Report 2009-2010
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ANNEXURE TO THE DIRECTORS’ REPORT ANNEXURE A
Efforts made by BPCL in regard to Conservation of Energy, Technology Absorption, Foreign Exchange Earnings & Outgo, which are required to be given under Section 217 (1)(e) of the Companies Act,1956, are as under : A. CONSERVATION OF ENERGY (i) Energy conservation measures taken and additional investment/proposals for conservation of energy: Energy conservation efforts received continuous focus, both in terms of improvement in operations/ maintenance as well as development of new projects. Continuous monitoring of fuel consumption and hydrocarbon loss is undertaken using sophisticated instruments and data acquisition system. An elaborate energy accounting system and Management Information System is an important feature of BPCL Mumbai and Kochi Refineries operation. As a part of Oil & Gas Conservation Fortnight 2010, M/s. CHT had organised a detailed “Furnace Efficiency & Insulation Effectiveness” survey for BPCL Refineries along with external experts. In addition, various awareness programs on the Oil Conservation theme were conducted, both inside & outside the refineries, including free PUC check up for vehicles. (ii) Additional investments & proposals, if any, being implemented for & impact of the measures for reduction of consumption of energy & consequential impact on the cost of production of goods. Mumbai Refinery The following energy conservation and loss control measures were adopted during the year 2009-10 which have resulted in significant fuel savings : • High emissivity ceramic coating was applied to process heater tubes and refractory walls of the new Crude Unit and Vacuum Unit furnaces (F 101 & 102) during March 2009 shutdown, to achieve better heat absorption in the radiant section and fuel saving. • Special type insulation was installed on bare hot tubes of the NHGU furnace. • Foam / chemical cleaning of air fin coolers in the new Crude Unit complex and C3C4 Unit to improve performance. • “Chemical decontamination” technique was adopted for the first time in the refinery during turnaround. This helps in improved heat exchanger cleaning and better decontamination for carrying out plant jobs. • During turnaround, services of the combustion technology expert from M/s Hamworthy Combustion Global Solutions was obtained, to get suggestions for adopting the best practices leading to improved efficiency of the furnaces. • Replacement of air pre-heater in CDU 2 furnace for improved heat recovery. • Installation of Step-less control in the Make-up-Gas Compressor (MUG) of the Hydrocracker Unit to reduce power consumption. • Modification in LOBS plant to warm up feed pump – fuel saving by reducing furnace load. • Processing of the hydrogen rich Catalytic Reformer Unit (CRU) off gas in the Hydrocracker Unit PSA system and new Hydrogen Unit to reduce overall Naphtha consumption for hydrogen generation. • “Dry ice blast” cleaning of the convection section of heaters to improve efficiency. • Stopping of Naphtha fuel pumps in CPP – LNG replacing Naphtha fuel in Gas turbines. • Chemical cleaning of HVU heater process tubes during shutdown to improve heat absorption. • Impellor trimming of VDU pump for power saving. • Use of energy saving CFL lamps. • Energy saving device/torroidal core transformers for energy saving in lighting circuits. • Installation of Capacitor banks to maximize power factor • A comprehensive survey on the “Instrument Air Supply System” was carried out to identify and rectify instrument air leaks. • A survey of “Fuel oil line insulation effectiveness” was carried out to improve the fuel oil temperature for better viscosity at burners. • Maximisation of crude throughput in modern highly energy efficient Integrated Crude & Vacuum Unit.
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Bharat Petroleum Corporation Limited
• Antifoulant chemical injection in all Crude & Vacuum units. • Injection of fire side chemical additive in HVU / CRU Heater. • Regular cleaning of preheat exchangers of process units. • Reduction of slops by tighter operational control. • Continuous monitoring & control of all parameters of Furnaces & Boilers. • Continuous monitoring & control of flare. • Regular steam Insulation & steam leak surveys. • Replacement of Insulation for various Steam Headers. • Replacement of leaky steam traps & regular attending to steam leaks Energy conservation and loss control measures planned for implementation in future years: BPCL Mumbai Refinery is implementing / planning to implement various energy conservation and loss control projects as given below: • Processing of CDU 2 LR in energy efficient VDU which will result in energy saving as well as yield improvement. • Provision of Variable Speed Drives for CDU NB2A Heater FD fan & CDU B1Heater ID Fan. • Extension of “Chemical Decontamination” technology for other units during turnaround. • Air fuel ratio controller in DHDS charge heater. • APH replacement in CMU F01/F02, CDU B1 & NB2A furnaces. • Trial run of on line chemical injection in select furnaces for improving heat absorption. • On line chemical cleaning of radiation tubes of select furnaces. • Stopping of Naphtha feed pump in Old Hydrogen unit – 100% LNG feed replacing Naphtha. • Antifoulant chemical injection treatment to prevent crude side fouling in exchangers. • Phase wise replacement of steam headers insulation. During the year, Mumbai refinery was awarded the first prize for having achieved the best “Specific Energy Consumption” for FY 2007-08 among refineries under the category of Composite Energy index ? 5 by Center For high Technology (MoP&NG). Kochi Refinery The following energy conservation and loss control measures were adopted during the year 2009-10, resulting in significant fuel savings: • Commissioning of HP to MP steam turbine for cooling water pump in DHDS. • LP steam extraction from recycle gas compressor in DHDS. • DEA flow optimization in fuel gas Amine Absorption Unit. • Cascade control for reboilers in Aromatic Recovery Unit. • Automatic Combustion Control for DHDS charge heater. • LP steam air pre-heater for crude charge heaters. • FRP blades for air-fin fans in crude unit. • Stopping of one feed water pump of boiler UB8/9. • Variable Speed Drives on-site trial runs conducted for 16 pumps in Kochi Refinery. • Energy Audit on Air conditioning systems conducted. • Functioning of ENCON Clubs in Schools & Colleges revitalized with the number of ENCON Clubs increasing from 25 to 50. BPCL Kochi Refinery is implementing / planning to implement various energy conservation and loss control projects as given below: • Optimization of pump drives through VFD installation in 15 drives • Implementation of automatic air fuel ratio based combustion control for heaters EH1 and CH223 • Installation of LP steam air pre-heaters in DDH1 and CH 223 Annual Report 2009-2010
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Condensate recovery from LP steam APH in heaters CH1A/B, CH 21/22 and CH 223 Replacement of sour water pump (SWP-5) with lower capacity pump CP-102. Recovering condensate from YE 101 (Biturox feed pre-heater) Step less control system in DHDS make up gas compressor Use of anti-foulant in crude pre-heat circuit to maintain pre-heat at SOR conditions Modification of pre-heat circuit for enabling locating one of the CE 6 exchangers downstream of Pre fractionator in case of crudes with high residue • Pre-heat train optimization in CDU-1 along with vacuum column modification • Change stripping steam in CDU-II from MP to LP by installing MP to LP turbo drive for compressor/ pumps (15 TPH steam) • Routing of leak-off steam from seals of boilers UB8 / 9 auxiliary turbines to de-aerator • Optimization of air conditioning systems in the refinery • Replacement of low efficiency crude charge heaters CH-1 A/B and kerosene charge heater KH-1B with high efficiency heaters The following Energy & Environment awards were received by Kochi Refinery during the year 2009-10. Sl. No 1 Year 2009 Award State Pollution Control Award – 2009, Excellence Award Kerala State Energy Conservation Award, Commendation Certificate Authority Kerala State Pollution Control Board Energy Management Centre, Kerala Category For outstanding achievement in pollution control For commendable achievements in Energy Conservation and Management
• • • • • •
2
2009
B.
Impact of the measures for reduction of consumption of energy & consequential impact on the cost of production of goods : Fuel savings as a result of the energy conservation measures implemented in the refineries during the year 2009-10 correspond to the total savings potential of more than 10700 tonnes of fuel oil equivalent (provisional). (iii) Details regarding total energy consumption and energy consumption per unit of production etc. are given in the prescribed Form A annexed hereto. TECHNOLOGY ABSORPTION The Refineries implemented the following projects to obtain the benefits of the latest technological developments and advances: Mumbai Refinery In line with the action plan for meeting the auto fuel quality upgrade of part production of Euro IV quality Diesel by April 2010, the DHDS unit was revamped from 1.4 MMTPA to 2.0 MMTPA based on the catalyst and technology supplied by M/s Haldor Topsoe. A new 2350 MT/D CC Gasoline Splitter Unit, designed by M/s EIL, was installed to separate the high sulphur heavy component from the Catalytic Cracked Gasoline to make it suitable for producing Euro-IV MS. Kochi Refinery Propylene unit with a capacity of 50000TPA for producing chemical grade propylene with a purity of 95% by weight was commissioned in August 2009. UP203 D Cooling Water pump in DHDS was converted from motor driven into turbine (HP to MP) driven.. Crude distillation unit II capacity was increased to 9.5 MMTPA from 7.5 MMTPA. A new Naphtha splitter unit (NSU II) was added to CDU II as a feed preparation unit for CCR. Details regarding the efforts made in technology absorption as per the prescribed Form B are annexed hereto. Bharat Petroleum Corporation Limited
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C.
FOREIGN EXCHANGE EARNINGS / OUTGO (i) Activities related to exports; initiatives taken to increase exports; development of new export markets for products and services; and export plans : Crude Oil Imports Crude oil prices moved from their low of USD 45 per barrel at the beginning of the financial year to around USD 80/bbl at the end of the financial year 2009-10. This was mainly on account of optimism in the market following global financial recovery. Unlike the earlier years and the general trend of sweet crude oil grades (Brent) commanding premium over sour (Dubai) grades, the year 2009-10 saw Dubai prices commanding premium over Brent price. This was mainly due to regional variation like reduced demand in the United States, strong demand in India and China, production cut by OPEC countries and stability in Nigeria resulting in increased production of low sulphur crude oil. In order to take advantage of the prevailing low Brent-Dubai differential, BPCL carried out suitable changes in strategy in procurement of crude oil by changing the crude oil mix of its refineries. The average price of Dated Brent Crude Oil reduced by about 18% during the year from $ 84.45/bbl in 2008-09 to $ 69.62/bbl in 2009-10. Further, the sweet / sour (Dated Brent / Dubai) difference reduced substantially from $ 1.6/bbl in 2008-09 to $ 0.05/bbl in 2009-10. During the year, BPCL imported 14.40 MMT of crude oil as compared to 12.70 MMT in 2008-09. In value terms, the cost of imported crude oil on FOB basis amounted to USD 7560 million (Rs.35419 crores) as compared to USD 7961 million (Rs.36114 crores) in 2008-09. The average price stood at USD 70.4 per barrel as compared to USD 85.3 per barrel in the previous year. The ratio of “Term to Spot” purchase of imported crude oil was 62:38 lower as compared to 85:15 in 2008-09 mainly due to production cut by OPEC. For procurement of spot cargo, BPCL sought better terms and conditions with the suppliers, expanded the vendor base, added new grades of crude oil and opened up new avenues for procurement of crude oil from floating storage. All these steps have yielded substantial saving to the Corporation. Further, BPCL also facilitated procurement of 0.5 MMT Arab Mix crude oil for its joint venture refinery, Bharat Oman Refineries Ltd. (BORL) for initial start-up and commissioning activities. Product Import and Export On the products front, BPCL imported 1588 TMT of HSD, 33 TMT of SKO, 211 TMT of MS, 228 TMT of LPG to meet the shortfall in supply from domestic sources and 48 TMT of Reformate as blendstock during the year 2009-10. During the year, BPCL exported 2698.91 TMT of refined products. This was higher than the level of 1381.88 TMT exported during the previous year. Export of Fuel Oil increased from 664.29 TMT in 2008-09 to 982.58 TMT during 2009-10. Export of naphtha increased from 703.45 TMT in 2008-09 to 1341.45 TMT during 2009-10. During the year, BPCL also exported 352.39 TMT of High Sulphur Gas oil. The foreign exchange earnings from these exports amounted to USD 1442 million (Rs.6,733 crores) as against USD 757 million (Rs.3,362 crores) during the previous year. In recognition of its export performance, Director General of Foreign Trade awarded a recognition certificate to BPCL as a “Premier Trading House”. This was an improvement over the earlier recognition status as a “Three Star Export House”. ii) The details of foreign exchange earnings & outgo are given below :Rs. Crores Earnings in Foreign Exchange - includes receipt of Rs. 1,636.56 crores (previous year Rs. 1,732.59 crores) in Indian currency out of the repatriable funds of foreign airline customers and Rs.12.18 crores (previous year Rs. 8.44 crores) of INR exports to Nepal and Bhutan. - Includes Rs. Nil (previous year Rs. 353.78 crores) on CFR basis. Foreign Exchange Outgo - on account of purchase of Raw Materials, Capital Goods, Chemicals, Catalysts, Spare Parts, International Trading Activities. 2009-10 10,301.35 2008-09 6,567.42
43,505.35
45,261.07
Annual Report 2009-2010
45
1. A.
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY MUMBAI REFINERY Power & Fuel Consumption 2009 - 10 2008-09 1. Electricity a) Purchased Units (Million KWH) 33.43 43.28 Total Amount (Rs.Crores) 20.12 29.00 Rate/Unit (Rs./KWH) 6.02 6.70 b) Own Generation Through Steam Turbine/ Generator Units (Million KWH) 511.37 503.78 Units (KWH) per Ton of Fuel 3,229.49 3,037.73 Cost/Unit (Rs./KWH) 4.50 6.25 2. Coal Nil Nil 3. Furnace Oil/Liquid Fuel LSHS Qty - MT 255,596 260,416 Total amount (Rs. Crores) 536.43 575.49 Avg. Rate (Rs./Unit) 20,987.37 22,098.86 IBP-60 Qty - MT 24,322 42,822 Total amount (Rs. Crores) 77.60 137.59 Avg. Rate (Rs./Unit) 31,905.09 32,131.41 4. Others / Internal Generation Bombay High Associated Gas (BHAG) Qty - (MT) 13026 229 Total amount (Rs. Crores) 14.66 0.26 Avg. Rate (Rs./Unit) 11,256.74 11,225.16 Regassified Liquid Natural Gas (RLNG) Qty - (MT) 19,527 Total amount (Rs. Crores) 32.61 Avg. Rate (Rs./Unit) 16,699.68 Internal Fuel : Refinery Gas Qty - (MT) 104,918 125,691 Total amount (Rs. Crores) 220.19 277.76 Avg. Rate (Rs./Unit) 20,987.37 22,098.86 PSA Off Gas Qty - (MT) 102,662 100,375 Total amount (Rs. Crores) 38.01 39.13 Avg. Rate (Rs./Unit) 3,702.40 3,898.48 FCC Units Coke Qty - MT 79,043 87,405 Total amount (Rs. Crores) 165.89 193.16 Avg. Rate (Rs./Unit) 20,987.37 22,098.86 Notes: 1. Decrease in power purchased cost is mainly due to higher power generation in GTs & lower power import. 2. Cost per unit of Power Purchased has decreased due to lower purchase of power from M/s TATA Power. 3. Cost per unit of power generated in CPP has decreased due to decrease in fuel cost (LNG consumption) & depreciation. Unit Stds. if any * 2009 - 10 2008 - 09 11,436,521 Production of Petroleum products MT 11,809,624 Electricity KWH/MT 46.13 47.84 LSHS / IBP-60 Kg/MT 23.70 26.51 Gas (Excluding CPP) Kg/MT 20.33 19.79 FCC Units Coke Kg/MT 6.69 7.64 * No fixed consumption parameter can be attributed to a particular product as the product pattern of the Refinery is governed by supply / demand scenario of products and Govt. directives. It is also a function of quantity / type of crude processed, planned shutdown of processing units for maintenance / inspection and severity of operations of processing units which varies widely. Bharat Petroleum Corporation Limited Energy consumption per unit of production
FORM A
B.
46
2. A)
KOCHI REFINERY 2009-10 Power and Fuel Consumption : 1) Electricity a) Purchased : Units (Million KWH) 70.81 Total amount (Rs.Crores) 28.41 Rate/Unit (Rs./KWH) 4.01 b) Own Generation i) Through Gas Turbine generation in CPP (Million KWH) 130.18 Units (KWH) per kg of fuel oil/gas 2.87 Cost/Unit (Rs./KWH) 5.42 ii) Through steam Turbine Generation (Million KWH) 68.34 Cost/Unit (Rs./KWH) 7.12 2) FCC coke for steam generation : Quantity (tonnes) 72,020 Total Cost (Rs.Crores) 160.67 Average rate (Rs./MT) 22,309 3) LSHS : Quantity (tonnes) 248,153 Total Cost (Rs.Crores) 553.61 Average rate (Rs./MT) 22,309 4) DHDS Naphtha : Quantity (tonnes) 41,481 Total Cost (Rs.Crores) 106.04 Average rate (Rs./MT) 25,563 5) Others (Refinery Fuel Gas) : (Excluding fuel used for Power Generation) Quantity (tonnes) 79,924 Total Cost (Rs.Crores) 178.31 Average rate (Rs./MT) 22,309 Notes : 1. Fuel for CPP consisted of Intermediates and Refinery Fuel Gas. 2. The purchased power is net of export to KSEB. 3. Cost of FCC coke, LSHS, Intermediates, Refinery Fuel Gas etc. are at average cost. Energy consumption per unit of production Production of Petroleum products Electricity Unit Stds. if any * MT KWH/MT 2009 - 10 7,388,894 35.29 2008-09
39.56 21.19 5.36 145.83 2.88 5.56 73.76 6.60 67,030 134.54 20,071 243,866 489.46 20,071 38,173 97.53 25,549
83,221 167.03 20,071
B.
2008 - 09 7,192,203 34.81
FCC Coke Kg/MT 9.75 9.32 LSHS Kg/MT 33.58 33.91 DHDS Naphtha and Refinery fuel gas Kg/MT 16.43 16.88 * No fixed consumption parameter can be attributed to a particular product as the product pattern of the Refinery is governed by supply/demand scenario of products and Government directives. It is also a function of quantity/type of crude processed, planned shutdown of processing units for maintenance/inspection and severity of operations of processing units, which varies widely. Annual Report 2009-2010
47
FORM B
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION RESEARCH & DEVELOPMENT (R&D) 1. Specific areas in which R&D has been carried out by the Company : i) Catalytic Processes ii) Development of Catalysts and Catalyst additives iii) Development of fuel additives/blending schemes iv) Detailed Crude Evaluations and Crude compatibility studies v) Development of nanomaterials for on-board gas storage and other applications vi) Development of Process scheme for synthetic lubricants vii) Modeling and Simulation of refinery processes viii) Corrosion and fouling ix) Advanced Tech support to Refinery & Marketing Operations x) Alternate fuels – Bio-ethanol, bio-diesel, hydrogen xi) Alternate energy devices – new generation solar PV cells xii) Long life Diesel Engine Oil for heavy commercial vehicles. xiii) Passenger Car Engine Oil for latest models. xiv) Bio-degradable Cutting Oil xv) High Performance Greases xvi) Defence specific grade lubricants xvii) Alternate lube formulations for existing grades Benefits derived as a result of the above R&D : i) Optimum catalysts and additives were selected / recommended for KR and MR FCC plants, resulting in improved yields/ product quality. ii) LPG Sweetening Catalyst jointly developed by BPCL and IIP Dehradun being used at Mumbai Refinery in the , FCC units has resulted in cost saving and better performance. iii) Cost effective CO promoter catalyst developed in-house has been in use at FCC unit of KR. An Indian Patent has been filed for protecting IPR for this innovation. iv) In-house developed BMCG product being commercially produced and marketed in India & overseas has resulted in substantial benefit to the Corporation. v) A cost effective route for producing MS-97 has been developed and commercialized at BPCL installations resulting in substantial savings. vi) Commercial trials were conducted successfully for the in-house developed corrosion inhibitor for ethanol-MS blend, which is expected to save costs. vii) Detailed crude evaluations aided in enhancing value realization and enlarging the crude basket. Crude blend compatibility studies helped in processing opportunity crudes. viii) Developed a model based on the physical properties using Aspen Plus to minimize quality giveaways in Fuel Oil (FO) production resulting in substantial benefits to the Corporation. ix) Energy Optimization Studies conducted for enhanced crude pre-heat heat recovery through pinch analysis resulted in reduced fuel consumption in MR. x) (a) Implementation of selected antifoulant with optimal dosage in MR crude-pre-heat trains resulted in improved heat recovery. (b) Implementation of selected demulsifier in MR CDU Units resulted in improved desalting and reduced overhead corrosion. (c) Studies on Mumbai-Manmad-Bijwasan (MMB) pipeline corrosion resulted in developing an in-house monitoring system for reducing the corrosion. Bharat Petroleum Corporation Limited
2.
48
xi)
3.
4.
Long life Diesel Engine Oil for heavy commercial vehicles - extends the drain period of engine oil for the latest high performance vehicles, besides increasing our share in this segment. xii) Passenger Car Engine Oil for the latest models –provides an opportunity to increase our market share in this segment. xiii) Bio-degradable Cutting Oil –protects the environment, besides providing viable option to customers xiv) High Performance Grease –helps us to increase our market share in the Steel manufacturing segment, besides providing a viable alternative to customer. xv) Defence specific grades –provide an indigenous alternative to Defence xvi) Alternate formulation for existing grades –helps in reducing the input cost, besides providing flexibility in operation. Future Plans i) Development of process scheme for the production of bio-fuels such as ethanol & bio-butanol and biolubricants. ii) Intensifying and enlargement of activities in the area of Refinery processes and resid upgradation. iii) Development of catalyst/additive for refining processes iv) Development of new process technologies using the additive approach for improving the product quality v) Enlargement of crude basket and identification of opportunity crudes and crude blends vi) Controlling Corrosion and fouling in Refinery units vii) Value added products/ solvents from the Refinery streams viii) Modelling and simulation of Refinery processes ix) Coal to Resid Technologies x) Alternate Fuels & Energy Devices such as bio-diesel, algal biofuels, hydrogen and solar PV cells. Developing the following grades / products : i) Diesel Engine Oil meeting the latest international specifications ii) Transmission Oil OEM specific iii) Metal Working Fluid iv) Synthetic Gear Oil v) Synthetic Refrigeration Compressor Oil vi) Defence specific grades Expenditure on R&D during 2009-10 (Rs. in Crores) Value Capital Expenditure Revenue / Recurring Expenditure Total Total R&D Expenditure as a % of total turnover 9.31 16.33 25.64 Negligible
Annual Report 2009-2010
49
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION A) MUMBAI REFINERY 1. Efforts, in brief, made towards technology absorption, adaptation and innovation The Refinery has undertaken the following projects to obtain the benefits of the latest technological developments and advances: A. In line with an action plan for meeting the auto fuel quality upgrade of part production of Euro IV quality Diesel by April 2010, the DHDS unit was revamped from a capacity of 1.4 MMTPA to 2.0 MMTPA as per the revamp design supplied by M/s Haldor Topsoe. B. A new 2350 MT/D CC Gasoline Splitter Unit, designed by M/s EIL, was installed to split the combined gasoline streams produced by the two Catalytic Cracking Units in the refinery into light and heavy components. The unit splits the feed stream into low sulphur Olefin rich lighter components (top & middle cuts) suitable for producing Euro III/IV MS and a bottom high sulphur heavy stream which is blended into HSD. 2. Benefits derived as a result of the above efforts, e.g. product improvement, cost reduction, product development, import substitution, etc. A. With the increase in the diesel desulphurization capacity, the HSD product mix was upgraded from BS-II/Euro-III to Euro-III/IV as per the requirements of the auto fuel policy of the Government of India. B. This has enabled production of Euro-IV MS from the refinery. 3. In case of imported technology (imported during last five years reckoned from the beginning of the financial year), following information may be furnished: (a) Technology imported: Technology DHDS Reactor catalyst change to new generation HDS catalyst TK 576 BRIM supplied by M/s Haldor Topsoe, Denmark in December 2007. Naphtha HDS catalyst was the latest Catalyst from M/s. Haldor Topsoe DHDS unit revamp from 1.4 to 2.0 MMTPA on technology and catalyst TK 576 BRIM supplied by M/s Haldor Topsoe, Denmark in January 2010. Year of import 2007 2007 2010
B) 1.
(b) Has Technology been fully absorbed? Yes. (c) If not fully absorbed, areas where this has not taken place, reasons therefore and future plans of action: Not applicable. KOCHI REFINERY Efforts, in brief, made towards technology absorption, adaptation and innovation The Refinery has implemented the following projects to obtain the benefits of the latest technological developments and advances during 2009-10 : a. Propylene Recovery Unit Propylene unit with a capacity of 50000TPA for producing chemical grade propylene with a purity of 95% by weight was commissioned in August 2009. b. Commissioning of high pressure (HP) to medium pressure (MP) steam turbine for UP203 D Cooling Water pump in DHDS. Cooling Water pump in DHDS (UP203 D) was converted from motor driven into turbine (HP to MP) driven thus utilizing available HP steam. c. CDU II Revamp Crude Distillation Unit II capacity was increased from 3 MMTPA to 5 MMTPA as a part of the Capacity Expansion & Modernisation Project Phase II (CEMP-II). A new heater was installed as Vac column feed heater and the existing Vac heater was utilized as balancing heater for crude distillation column. A prefractionator tower was added for debottlenecking the crude distillation column at increased capacity.
50
Bharat Petroleum Corporation Limited
The desalter in CDU II was modified for increased capacity during CDU II revamp based on technology supplied by M/s Natco, UK. d. Naphtha Splitter Unit. A new Naphtha Splitter Unit (NSU II) was added to CDU II as feed preparation unit for CCR. The technology was provided by M/s UOP USA and engineering and construction was by M/s EIL. NSU II will be taking , Naphtha feed from the Crude Distillation Unit II.
2.
3.
Benefits derived as a result of the above efforts, e.g. product improvement, cost reduction, product development, import substitution, etc. a. Propylene Recovery Unit A new product viz., Chemical Grade Propylene (95% purity) was added to the product slate. This is expected to improve refinery profitability. b. Commissioning of high pressure (HP) to medium pressure (MP) steam turbine for UP203 D Cooling Water pump in DHDS. HP to MP steam makeup through pressure reducing station (PRDS) was reduced from 25 TPH to 10 TPH. Conversion of the pump from motor driven to turbine driven resulted in a power saving of 255KW (approximate annual benefit of Rs 0.9 Crores). c. CDU II Revamp The revamp increased the crude unit capacity of the refinery from 7.5 MMTPA to 9.5 MMTPA. Along with other units being installed under CEMP-II project, this unit will enable production of required quantities of Euro III and Euro IV specification fuels apart from improving availability of all other products. d. Naphtha Splitter Unit This unit will prepare feed stream for the CCR Unit from CDU II Naphtha and is an essential requirement. In case of imported technology (imported during last five years reckoned from the beginning of the financial year), following information may be furnished: (a) Technology Imported: Technology DHDS Reactor catalyst change to new generation HDS catalyst supplied by M/s. Axens, France in December 2006 to produce Low Sulfur Diesel for meeting the Euro III Diesel demand. SPM system capable of receiving VLCCs by M/s. Blue Water Energy Services, Netherlands. BITUROX Unit technology supplied by M/s. Porner, Austria, capable of producing four different grades (VG-10/VG-20/VG-30 and VG-40) of Bitumen was commissioned during June 2008. Along with the Biturox Unit an incinerator, a scrubber and a wet air oxidation system were installed to convert Sulphides to Sulphates. NSU II – Naphtha splitter Unit as part of CDU II by M/s. UOP USA. , Desalter – CDU-II Unit Desalter revamp by M/s. Natco, UK. Year of import 2006
2007 2008
2009 2009
(b) Has Technology been fully absorbed? Yes. (c) If not fully absorbed, areas where this has not taken place, reasons therefore and future plans of action: Not applicable.
Annual Report 2009-2010
51
ANNEXURE TO THE DIRECTORS’ REPORT ANNEXURE B
Report on Corporate Governance
1) Company’s philosophy on Code of Governance Bharat Petroleum Corporation Limited’s corporate philosophy on Corporate Governance has been to ensure fairness to the Stakeholders through transparency, full disclosures, empowerment of employees and collective decision making. 2) Board of Directors As per the Articles of Association of the Company, the number of Directors shall not be less than three and more than sixteen. As on 31st March 2010, the BPCL Board comprised 5 Whole-time (Executive) Directors including Chairman & Managing Director, 2 Part-time (Ex-Officio) Directors and 5 Part-time (Independent) Directors. For nomination of additional 2 Part-time (Independent) Directors as required under revised Clause 49 of the Listing Agreement, the Company has taken up the matter with the Government of India. During the year, all meetings of the Board and the Annual General Meeting were chaired by the Chairman & Managing Director. None of the Non-Executive Directors of BPCL had any pecuniary relationship / transaction with the Company during the year. The Directors neither held membership of more than 10 Board Committees nor Chairmanships of more than 5 Committees (as specified in Clause 49 of the Listing Agreement and Guidelines on Corporate Governance for Central Public Sector Enterprises issued by Department of Public Enterprises) across all the companies in which they were Directors. The required information as indicated in Annexure IA to Clause 49 of the Listing Agreement and Annex IV to Guidelines on Corporate Governance for Central Public Sector Enterprises were made available to the Board of Directors. Details regarding the Board Meetings; Annual General Meeting; Directors’ attendance thereat, Directorships and Committee positions held by the Directors are as under : Board Meetings Five Board Meetings were held during the financial year on the following dates: 29th May 2009 28th July 2009 8th Sep 2009 29th Oct 2009 28th Jan 2010
The Board has reviewed the compliance of all laws applicable to the Company. The Board has adopted a Code of Conduct for the Directors and also for the Senior Management of the Company and the same has been posted on the website of the Company. There is a system in the organization of affirming compliance with Corporate Governance by the Board Members and Senior Management Personnel of the Company.
52
Bharat Petroleum Corporation Limited
Particulars of Directors including their attendance at the Board /Shareholders’ Meetings during the financial year 2009-10 Academic Qualifications Details of Directorships held in other Companies Memberships held in Committees as specified under Clause 49 of the Listing Agreement Audit Committee Member • Petronet LNG Ltd. • Bharat PetroResources Ltd.
Names of the Directors
Whole-time Directors B.Tech. (Elect.) M.B.A.
Shri A. Sinha Chairman & Managing Director
Attendance out of 5 Board Meetings held during the year and percentage thereof % No. of Meetings Attended 5 100
Attendance at the last Annual General Meeting Attended
Shri S. Radhakrishnan Director (Marketing)
B.Tech. (Mech). M.B.A.
5
100
Attended
Shri S. K.Joshi Director (Finance)
A.C.A. M.B.A.
5
100
Attended
Chairman • Numaligarh Refinery Ltd.. • Bharat Oman Refineries Ltd. • Bharat Renewable Energy Ltd. • Matrix Bharat Marine Services Pte Ltd. Director • Petronet LNG Ltd. • Bharat PetroResources Ltd. Chairman • Indraprastha Gas Ltd. Director • Numaligarh Refinery Ltd. • Sabarmati Gas Ltd. • Bharat Stars Services Pvt. Ltd. • Matrix Bharat Marine Services Pte Ltd. • Oil Industry Board Draught Relief Trust (Trustee) Director • Numaligarh Refinery Ltd. • Bharat PetroResources Ltd. • Bharat PetroResources JPDA Ltd. • Bharat Oman Refineries Ltd. • Bharat Stars Services Pvt. Ltd. Attended
Annual Report 2009-2010 B.Tech. (Mech) 5 100 5 100
Shri R. K.Singh Director (Refineries)
Audit Committee Member • Bharat PetroResources Ltd. • Numaligarh Refinery Ltd. Investors Grievance Committee Member • Bharat Petroleum Corpn. Ltd. • Bharat Oman Refineries Ltd. Audit Committee Member • Numaligarh Refinery Ltd. • Bharat PetroResources Ltd.
Shri S Mohan B.E.(Hons) Mech. Director (Human Resources) M.B.A
Attended
Director • Numaligarh Refinery Ltd. • Bharat Oman Refineries Ltd. • Bharat PetroResources Ltd. • Premier Oil Cachar BV, Chairman • Petronet India Ltd. • Petronet CCK Ltd.
53
54
Academic Qualifications I.A.S. Postgraduate in Economics M Phil., M.P .A. 1* 100 Did not Attend Director • Kinfra Firm Videopark Ltd. Did not Attend Chairman • Transformers and Electricals Kerala Ltd. • Kerala Minerals & Metals Ltd. • Steel Industrial Forgings Ltd. • Malabar Cements Ltd. • Kerala State Elect. Devp Corpn. Ltd. Director • Apollo Tyres Ltd. • Hindustan Newsprint Ltd. • Kinesco Power & Utility Pvt. Ltd. • Premier Tyres Ltd. • Kerala State Industrial Dev.Corpn. • Infrastructure Kerala Ltd. • Indian Rare Earths Ltd. • Al Barakha Financial Services Ltd. 100 Attended Director • Bharat Oman Refineries Ltd. Audit Committee Chairman • Bharat Petroleum Corpn. Ltd. • Bharat Oman Refineries Ltd. Investors Grievance Committee Chairman • Bharat Petroleum Corpn. Ltd. Attendance out of 5 Board Attendance Details of Directorships held in Meetings held during the at the last other Companies year and percentage thereof Annual General Meeting No of Meetings % Attended 2 40 Did not Attend Director • Indian Oil Corporation Ltd. • Hindustan Petroleum Corporation Ltd. Memberships held in Committees as specified under Clause 49 of the Listing Agreement I.A.S. Postgraduate in Chemistry I.A.S Postgraduate in Political Science & International Relations 2* 50 5
Names of the Directors
Bharat Petroleum Corporation Limited
Non-Executive Directors (a) Part-time (Ex-officio) Shri P .K.Sinha Addl. Secretary & Financial Advisor, Ministry of Petroleum & Natural Gas Shri P Kurian ** .H. Secretary, (Investment Promotion), Govt. of Kerala Shri T. Balakrishnan # Addtitional Chief Secretary, Industries & Commerce, Govt.of Kerala
(b) Part-time (Independent) Prof. A.H.Kalro+ B.Tech (Hons), (Elect), M.S., Ph.D (Industrial Engg),
* percentage computed by considering the meetings attended with the total meetings held during his tenure (** Ceased to be a Director w.e.f 15.06.2009) (# Ceased to be a Director w.e.f 29.06.2010) (+Ceased to be a Director w.e.f 28.1.2010)
Names of the Directors
Academic Qualifications
Attendance out of 5 Board Meetings held during the year and percentage thereof %
Attendance at the last Annual General Meeting
Details of Directorships held in other Companies
Memberships held in Committees as specified under Clause 49 of the Listing Agreement
Non Executive Directors (b) Part-time (Independent) 100 Attended
Prof. N. Venkiteswaran
No of Meetings Attended B.A.Economics, 5 A.C.A.
Audit Committee Chairman • Bharat Petroleum Corpon. Ltd.
Ms. Rama Bijapurkar #
B.Sc (Hons.) M.B.A.
2
40
Did not Attend
Audit Committee Member • Mahindra Holidays & Resorts India Ltd. • Mahindra & Mahindra Financial Services Ltd.
Prof. S. K. Barua
M. Tech. Doctorate in Management
4
80
Attended
Director • Dalton Capital Advisors India Pvt. Ltd. • Asit C Mehta Investment Intermediates Ltd. • Virgo Engineers Ltd. Chairperson • CRISIL Risk & Infrastructure Solutions Ltd. Director • Godrej Consumer Products Ltd. • CRISIL Ltd. • AXIS Bank Ltd. • Mahindra Holidays & Resorts India Ltd. • Mahindra & Mahindra Financial Services Ltd. • ICICI Prudential Life Insurance Co. Ltd. • Ambit Holdings Pvt Ltd. Director • Coal India Ltd. • Paras Pharmaceuticals Ltd. • Securities Trading Corporation of India Ltd. • Torrent Power Ltd.
Audit Committee Member • Coal India Ltd. • Paras Pharmaceuticals Ltd. • Sec. Trading Corpn of India Ltd. • Torrent Power Ltd. • Bharat Petroleum Corpon. Ltd. Audit Committee Member • Bharat Petroleum Corpon. Ltd.
Shri I. P S. Anand . 1* 100
NA
Annual Report 2009-2010 B.A.(Hons) (Econ) M.A. (Econ) B.A., LLM 1* 100 NA
Shri Haresh M. Jagtiani
Director • Legalpundits International Services Ltd.
Audit Committee Member • Bharat Petroleum Corpon. Ltd.
* percentage computed by considering the meetings attended with the total meetings held during his tenure (# resigned w.e.f 30.06.2010)
55
3)
Audit Committee BPCL took the initiative to introduce Corporate Governance in the organisation during the year 1996 itself, by constituting an Audit Compliance Committee. The said Committee was reconstituted and renamed as Audit Committee in the year 2000 and the role, powers and functions of the Audit Committee were specified and approved by the Board. As on 31st March 2010, the Audit Committee comprises four Part-time (Independent) Directors. The quorum for the meetings of the Committee is two members. Prof. N Venkiteswaran is the Chairman of the Committee and Prof. S.K.Barua, Shri I P S Anand and Shri Haresh M Jagtiani are the present Members of the Committee. The members possess the requisite knowledge of Finance & Accounting for effective functioning of the Audit Committee. Prof A H Kalro ceased to be a member of the Audit Committee on resignation from the Board w.e.f 28th Jan 2010. Shri I P S Anand and Shri Haresh M Jagtiani, who were appointed as Directors w.e.f 28th Jan 2010 were inducted as Members of the Audit Committee. The Company Secretary acts as the Secretary to the Audit Committee. Director (Finance) is a permanent invitee at the meetings of the Committee and Executive Director (Audit) is actively involved with the meetings of the Audit Committee. They attend and participate at the said meetings. In addition, the other Whole-time Directors also attend the meetings. The Statutory Auditors and Cost Auditors also attend and participate at the meetings, on invitation. The terms of reference of the Audit Committee cover all matters specified in Clause 49 of the Listing Agreement with the Stock Exchanges read with Section 292A of the Companies Act, 1956 and Guidelines on Corporate Governance for Central Public Sector Enterprises. The role and responsibilities of the Committee include the following: 1) 2) 3) 4) Overseeing the Company’s financial reporting process and disclosure of its financial information to ensure that the financial statements are correct, sufficient and credible. Recommending to the Board the fixation of audit fees. Approval of payment to Statutory Auditors for any other services rendered by them. Reviewing, with the Management, the financial statements before submission to the Board for approval, with particular reference to: a) b) c) d) e) f) g) 5) 6) 7) Matters required to be included in the Directors’ Responsibility Statement to be included in the Board’s Report in terms of clause (2AA) of Section 217 of the Companies Act, 1956 Changes, if any, in accounting policies and practices and reasons for the same Major accounting entries involving estimates based on the exercise of judgement by Management Significant adjustments made in the financial statements arising out of audit findings Compliance with listing and other legal requirements relating to financial statements Disclosure of any related party transactions Qualifications in the draft audit report.
Reviewing, with the Management, the quarterly financial statements before submission to the Board for approval. Reviewing, with the Management, performance of the Statutory and Internal Auditors, adequacy of the internal control systems. Reviewing the adequacy of the Internal Audit function, if any, including the structure of the Internal Audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit. Discussing with the Internal Auditors any significant findings and follow up thereon. Reviewing the findings of any internal investigations by the Internal Auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.
8) 9)
56
Bharat Petroleum Corporation Limited
10) Discussing with the Statutory Auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern. 11) Looking into the reasons for substantial defaults in the payment to the Depositors, Debenture Holders, Shareholders (in case of non-payment of declared dividends) and Creditors. 12) Defining the significant related party transactions 13) Carrying out any other function as mentioned in the DPE Guidelines and ‘Terms of reference’ of the Audit Committee Nine meetings of the Audit Committee were held during the financial year on the following dates: 5th May 2009 29th Oct 2009 29th May 2009 5th Jan 2010 28th Jul 2009 27th Jan 2010 25th Aug 2009 18th Mar 2010 24th Sep 2009
Attendance at the Audit Committee Meetings : Names of the members Prof. A.H.Kalro, Chairman (upto 27.1.2010) Prof.N. Venkiteswaran, Chairman (w.e.f 28.1.2010) Prof. S.K.Barua, Member Shri I. P S. Anand, Member . Shri H. M. Jagtiani, Member No of meetings attended 8* 9 8 1* 1* % 100 100 90 100 100 Attendance at the Last Annual General Meeting Attended Attended Attended N.A N.A
* percentage computed by considering the meetings attended with the total meetings held during his tenure The Committee, at its meetings held on 28th Jul 2009, 29th Oct 2009 and 27th Jan 2010 reviewed the Quarterly / Half Yearly / Year to date Financial Statements as on 30th June 2009, 30th September 2009 and 31st December 2009 respectively. Further, Annual Financial Statements as on 31st March 2010 were reviewed by the Committee at its meeting held on 27th May 2010, before the same were submitted to the Board for approval. BPCL has presently three unlisted Indian subsidiary companies i.e. Numaligarh Refinery Ltd (NRL), Bharat PetroResources Ltd (BPRL) and Bharat PetroResources JPDA Ltd (Wholly owned subsidiary of BPRL) and four Foreign Subsidiaries i.e. BPRL International BV (subsidiary of BPRL), BPRL Venture BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia B.V (subsidiaries of BPRL International BV). These Subsidiary Companies do not fall under the category of ‘material non listed Indian subsidiary’ as indicated in Clause 49 III of the Listing Agreement and DPE Guidelines on Corporate Governance. The Financial Statements of the Subsidiary Companies including investments made, if any, are reviewed by the Audit Committee / Board. The performance of the Subsidiary Companies and the minutes of their Board meetings are discussed at the Board meetings of the Company. Any significant transactions or arrangement entered into by the Subsidiary Companies are also reported to the Board of Directors of the Company. BPRL International B.V. and BPRL Ventures B.V were formed in March 2008 and BPRL Ventures Mozambique B.V. in July 2008 and BPRL Ventures Indonesia B.V, in August 2009 in the Netherlands. 4) Remuneration Committee BPCL has a Remuneration Committee to formulate and review policies related to remuneration / perquisites / incentives within the parameters of Guidelines issued by the Government of India. Presently the Remuneration Committee comprises three Independent Directors, Prof. S. K. Barua, Chairman and Prof.Venkiteswaran, Smt. Rama Bijapurkar (since ceased to be a Director) and one Part-time (Official) Director, Shri P K. Sinha as . Members with Director (HR) and Director (Finance) being Invitees. During the financial year 2009-10 one meeting was held on 18.9.2009. Annual Report 2009-2010
57
4A) Remuneration to Directors BPCL being a Government Company, appointment and remuneration of Whole-time Directors are determined by the Government through the Ministry of Petroleum & Natural Gas. The Part-time (Ex officio) Directors do not receive any remuneration from the Company. The Part-time (Independent) Directors received sitting fees of Rs.20,000 for each Board/Audit Committee meeting attended by them and Rs. 10,000 for each of the other Committee meetings during the year 2009-10. a) Details of remuneration paid / payable to the Whole-time Directors during the financial year 2009-10 are as follows :Names of Directors All elements of remuneration Details of fixed component packages of the Directors. i.e. and performance linked salary, benefits, bonus, pension etc. incentives Rs. 3,278,168 Fixed Compensation Rs. 2,292,214 /PI / PLIS Rs. 958,325/Recoverable Advance (Rs. 270,000) Fixed Compensation Rs.1,906,676/PI / PLIS Rs.641,153/Recoverable Advance (Rs. 270,000) Fixed Compensation Rs.2,050,393/PI / PLIS Rs.660,973/Recoverable Advance (Rs. 270,000) Fixed Compensation Rs.2,087,105/PI / PLIS Rs.660,973/Recoverable Advance (Rs. 270,000) Fixed Compensation Rs.2,137,789/PI / PLIS Rs. 4,08,843/Recoverable Advance (Rs. 270,000) Other Benefits
Shri Ashok Sinha
Rs. 297,629
Shri S. Radhakrishnan Rs. 2,828,796 Director (Marketing)
Rs.550,967
Shri S.K.Joshi Director (Finance)
Rs. 2,928,335
Rs.486,969
Shri R.K.Singh Director (Refineries)
Rs. 3,391,095
Rs.913,017
Shri S Mohan Director (Human Resources)
Rs. 2,460,090
Rs.183,458
PI : Productivity Incentive PLIS : Performance Linked Incentive Scheme Service Contracts : Five years which is renewable for further similar periods. Notice period : Three months BPCL has not introduced any Stock Options Scheme. None of the Non-Executive Directors hold any share in BPCL. During the year, the Part-time (Independent) Directors received sitting fees for attending the meetings of the Board / Committees as follows: Name of Director Prof. A.H.Kalro (up to 28.01.2010) Prof. N.Venkiteswaran Prof. S.K.Barua Smt R. Bijapurkar Shri I P S Anand (w.e.f. 28.01.2010) Shri H M Jagtiani (w.e.f. 28.01.2010) Amount (Rs.) 3,10,000 3,00,000 2,80,000 50,000 40,000 40,000
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Bharat Petroleum Corporation Limited
5)
Investors’ Grievance Committee The Committee comprising Prof. N.Venkiteswaran as Chairman, and Shri S. K. Joshi, Director (Finance) as member, monitors the Shareholders’ / Investors’ complaints and redressal of their grievances. Prof. A.H.Kalro ceased to be Chairman of the Committee on resignation from the Board with effect from 28.1.2010 and Prof. N.Venkiteswaran, was inducted as Chairman of the Investors’ Grievance Committee. The Committee, at its meeting held on 5th Jan 2010, reviewed the services rendered to the Shareholders / Investors including response to complaints / communications and expressed its satisfaction on the performance of the Investor Relations Department of the Company. The Company Secretary acts as the Compliance Officer for matters related to investor relations. During the year, 10 complaints were received from investors through SEBI, NSE which were attended to and resolved on priority basis. All valid share transfer requests received during the year were duly processed and approved within the stipulated period of 30 days. There was no share transfer request in physical form pending as on 31st March 2010.
6)
Annual General Meetings during the last three years The details of these meetings are given below. Date and Time of the Meeting 54th Annual General Meeting 19th September 2007 at 10.30 a.m. Venue Y.B. Chavan Auditorium Yeshwantrao Chavan Pratishthan, General Jagannath Bhosale Marg, Mumbai 400 021 Y.B. Chavan Auditorium Yeshwantrao Chavan Pratishthan, General Jagannath Bhosale Marg, Mumbai 400 021 Rama Watumull Auditorium Kishinchand Chellaram (K.C.) College, 124, Dinshaw Wacha Road, Churchgate, Mumbai-400 020
55th Annual General Meeting
22nd September 2008 at 10.30 a.m.
56th Annual General Meeting
8th September 2009 at 10.30 a.m.
During the year 2008-09, in accordance with Section 192A of the Companies Act, 1956, read with Companies (Passing of Resolution by Postal Ballot) Rules, 2001, Postal Ballot Notice dated 7th July, 2008 containing Special Resolution for amendment of Object Clause of the Company’s Memorandum of Association by inclusion of certain new Objects under Section 17(1) of the Act and for commencement of new business under Section 149(2A) of the Act, was circulated to the Shareholders of the Company. The Company appointed Shri B.V.Dholakia, a Practising Company Secretary, M/s Dholakia & Associates, Mumbai, as Scrutinizer for conducting the Postal Ballot process. Out of a total of 4042 ballots received for 250947095 number of equity shares, 539 ballots for 83173 equity shares representing 0.03 % were invalid, 3446 ballots for 250856139 equity shares representing 99.97 % of votes received, voted in favour of the resolution, 57 ballots for 7783 shares representing 0.00 % dissented to the resolution. The Special Resolution was accordingly passed by the requisite majority. The result of the Postal Ballot was announced on 22nd August 2008. The procedure prescribed under Section 192A of the Companies Act, 1956 read with the Companies (Passing of the Resolution by Postal Ballot) Rules, 2001 has been followed for the Postal Ballot conducted during the year for the resolution mentioned above. The Special Resolution for fixation of the remuneration of the Statutory Auditors was approved by the Shareholders at the Annual General Meeting held on 18th December 2006. No special resolution requiring a postal ballot was proposed last year. No special resolution requiring a postal ballot is being proposed for the ensuing AGM.
Annual Report 2009-2010
59
7)
Brief Resumes of Directors seeking appointment / re-appointment a) Shri S. K. Joshi Shri S. K. Joshi, Director (Finance), is a member of the Institute of Chartered Accountants of India and M.B.A. from the University of Hull, United Kingdom. Prior to his appointment as Director (F), he was responsible for the overall fund management, risk management, corporate accounts and budgeting. He was also closely associated with key initiatives undertaken by the Company including implementation of SAP and drawing up of the Corporate Credit Policy and Commodity Risk Management Policy. Besides, Shri Joshi was closely associated with key initiatives impacting the Oil Industry in India. He was a member of the Study Group formed for the purpose of preparing a Long Term Perspective Plan for the Oil Industry in India which had come out with the report titled ‘Hydrocarbon Perspective:2010 – Meeting the Challenges. He was awarded the ‘Business Today Best CFO’ under the category “Best CFO in a PSU”. for the year 2008-09. In addition to BPCL, he also holds the position of Director in Numaligarh Refinery Ltd., Bharat Oman Refineries Ltd, Bharat PetroResources Ltd., Bharat PetroResources JPDA Ltd. and Bharat Stars Services Pvt. Ltd. Shri S.K.Joshi was appointed as Director (Finance) on 8th March 2006. He is liable to retire by rotation at the ensuing AGM and being eligible, offers himself for re-appointment. b) Shri R.K.Singh Shri R.K.Singh, Director (Refineries) is a Mechanical Engineer and has held various assignments, both in the Refinery and Marketing divisions. He has attended a Management Development Programme at IIM, Ahmedabad, Materials Management Programme at ASCI, Hyderabad and Logistics Management Course at University of Tenesse in U.S.A. He has also headed a group constituted for transfer of technology of LPG equipment from Denmark / Italy and he was closely associated with the World LPG Association as an active member of their subcommittees. In addition to BPCL, he also holds the position of Director in Numaligarh Refinery Ltd., Bharat Oman Refineries Ltd. and Bharat PetroResources Ltd. Shri R. K. Singh was appointed as Director (Refineries) on 8th March 2006. He is liable to retire by rotation at the ensuing AGM and being eligible, offers himself for re-appointment. c) Shri I. P S. Anand . Shri I.P Anand has had nearly four decades of professional experience in various key positions in the .S. Government of India, including as Development Commissioner, Special Economic Zone (SEZ), Noida (Ministry of Commerce) and General Manager on the Indian Railways (Ministry of Railways). Shri Anand holds Graduate and Masters degrees in Economics from St. Stephen’s College, Delhi University. His educational qualifications also include visiting H.H. Humphrey Fellow, Massachusetts Institute of Technology (USA) and Strategic Management Programme, Manchester Business School (UK). He has also been involved in the Arbitration process as Sole Arbitrator and is a Fellow of the Indian Council of Arbitration. Besides, he is also a Fellow of Chartered Institute of Logistics & Transport and Founding Member, Centre for Transport Research and Management (CTRAM). Shri I. P S. Anand was appointed as Additional Director w.e.f. 28.1.2010 by the Board of Directors. Being an . Additional Director, he holds office up to the date of the Annual General Meeting. The Company has received a notice under section 257 of the Companies Act, 1956 from a Member proposing his name as Director of the Company. d) Shri Haresh M. Jagtiani Shri Haresh M. Jagtiani is a Master of Law and founder of the firm, M/s. Haresh Jagtiani & Asssociates. He has been practising as a lawyer and was designated as a Senior Advocate. He is primarily a litigator who appears regularly before the Supreme Court of India and the High Court of Bombay. He has appeared in various international arbitrations.
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Bharat Petroleum Corporation Limited
He holds directorship in Legalpundits International Services Pvt. Ltd and is also a member of the Board of Trustees of the ING Savings Trust. Shri Haresh M Jagtiani was appointed as Additional Director w.e.f. 28.1.2010 by the Board of Directors. Being an Additional Director, he holds office up to the date of the Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956 from a Member proposing his name as Director of the Company. e) Shri Alkesh Kumar Sharma Shri Alkesh Kumar Sharma, Secretary (Investment Promotion), Government of Kerala, is a senior IAS officer. In addition to being on the Board of BPCL, he also holds Directorship in other companies including Kerala State Industrial Development Corporation Ltd, Geojit BNP Paribas Financial Services Ltd, Brahmos Aerospace Thiruvananthapuram Ltd, Infrastructures Kerala Ltd, Indian Rare Earths Ltd Kerala Minerals & Metals Ltd, etc., Shri Alkesh Kumar Sharma was appointed as Additional Director w.e.f. 30.6.2010 by the Board of Directors. Being an Additional Director, he holds office up to the date of the Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956, from a Member proposing his name as Director of the Company. f) Prof. N. Venkiteswaran Prof. N. Venkiteswaran is a Chartered Accountant, Gold medallist in the postgraduate management accountancy examination conducted by ICAI and Graduate in Economics from the Madurai (Kamarja) University. Presently, he is a Professor in Indian Institute of Management, Ahmedabad. He has extensive experience of about 18 years in the finance, accounting and business planning functions in well known companies. He is also a Director on the Boards of Dalton Capital Advisors India Pvt Ltd., Asit C. Mehta Investment Intermediates Ltd. and Virgo Engineers Ltd. Prof. N. Venkiteswaran was reappointed on the Board w.e.f. 16.7.2010 by the Board of Directors. The Company has received a notice under Section 257 of the Companies Act, 1956 from a Member proposing his name as Director of the Company. 8) Disclosures and Compliance Except where the Company has incurred expenses on behalf of joint ventures as co-promoter and the same are recoverable from the joint venture companies, there were no transactions of material nature that may have potential conflict with the interests of the Company at large. The details of ‘Related Party Disclosures’ are shown in Notes forming part of Accounts. BPCL has been adhering to the provisions of the laws and guidelines of regulatory authorities including SEBI, and covenants in the agreements with the Stock Exchanges and Depositories. There was no instance of noncompliance of any provisions of law, guidelines from regulatory authorities and matters related to capital markets during the last three years except as stated in the following paragraph: The Company has complied with all mandatory requirements of Clause 49 of the Listing Agreement and DPE Guidelines on Corporate Governance except provisions relating to the composition of the Board of Directors with respect to the number of Independent Directors, for which the Government of India is taking necessary action, as BPCL is a Government Company. There are no items of expenditure in the books of accounts, which are not for the purpose of Business. Further no expenses were incurred which were personal in nature and incurred for the Board of Directors and Top Management. Administrative & Office expenses and Financial expenses constitute 0.52% and 0.76% of the total expenses respectively for the financial year 2009-10. The Company has fulfilled the following non-mandatory requirements as prescribed in Annexure I D to Clause 49 of the Listing Agreements with the Stock Exchanges : a) Independent Directors appointed by the Government of India have initial tenure not exceeding 3 years. No Independent Director has served in aggregate a period of nine years, on the Board of a Company. Annual Report 2009-2010
61
b) c)
The Company has adopted requirements with regard to sending of quarterly / half yearly financial results to the Shareholders of the Company. The Statutory Financial Statements of the Company are unqualified.
The Chairman & Managing Director and the Director (Finance) have certified to the Board in accordance with Clause 49 V of the Listing Agreement and DPE Guidelines on Corporate Governance pertaining to CEO / CFO Certification for the Financial Year 2009-10. The Company has also laid down a Risk Management Policy and procedures thereof for periodically informing the Board Members about the risk assessment and procedures for minimizing risks. BPCL nominates Directors for relevant training programmes / seminars conducted by reputed Institutions / SCOPE. Further, strategy workshops are held to deliberate strategic issues, policy decisions etc. BPCL has also framed the Whistle Blower policy. 9) Code of Conduct, Procedure and Disclosures for Prevention of Insider Trading and Code of Corporate Disclosure Practices Pursuant to the requirements of SEBI (Prohibition of Insider Trading) Regulations, 1992 as amended, the Company has adopted a ‘Code of Conduct, Procedure and Disclosures for Prevention of Insider Trading in the Securities of Bharat Petroleum Corporation Limited’ and ‘Code of Corporate Disclosure Practices’. The Company Secretary has been appointed as the Compliance Officer for implementation of the said Codes. 10) Means of Communication of Financial performance In order to give wider publicity and to reach the Shareholders and other investing public across the nation, the halfyearly and quarterly results were published in various editions of leading newspapers having wide circulation such as The Economic Times, The Times of India, etc. Reports on Limited Review of the Financial Results for the quarters ended 30th June 2009, 30th September 2009, 31st December 2009 were obtained from the Auditors of the Company and filed with the Stock Exchanges. The Financial Statements for the first quarter ended June 2009, half year ended September 2009 and third quarter ended December 2009, were sent to all Shareholders at their registered addresses. Periodical financial performance of the Company is also displayed on the website of the Company at www.bharatpetroleum.in and on Corporate Filing and Dissemination System www.corpfiling.co.in website as per the provisions of the Listing Agreement. 11) Management Discussion & Analysis Report A detailed chapter on Management Discussion & Analysis is attached to the Directors’ Report. 12) Investors’ Service Centre BPCL’s Investors’ Service Centre (ISC), by Data Software Research Co. Pvt. Ltd., our Share Transfer Agent, has been functional at the registered office of the Company at the following address: Data Software Research Co. Pvt. Ltd. (DSRC) C/o. Bharat Petroleum Corporation Ltd. Bharat Bhavan No.1, Ground Floor, Ballard Estate, Mumbai 400 001 Tel. No. 022 – 22713170 Fax. No. 022 – 2271 3688 Email : [email protected] This centre has been effectively catering to the needs of the Shareholders / Investors located in western region. It coordinates with DSRC based at Chennai and facilitates our efficient investor complaint redressal mechanism. For any assistance/information on share related matters such as transfer / transmission of shares, issue of duplicate share certificates, dividend etc., or for redressal of any grievance in this regard, Shareholders / Investors located in western region may get in touch with ISC at the above address. Further, BPCL has designated an exclusive e-mail ID : [email protected] for the purpose of communication from Shareholders including investor complaints.
62
Bharat Petroleum Corporation Limited
13) General Shareholders’ Information SEBI has included BPCL shares for compulsory trading in dematerialised form. Annual General Meeting Date, Time and Venue Financial Calendar Friday, the 24th September 2010, at 10.30 a.m. at Rama Watumull Auditorium at Kishinchand Chellaram College, 124, Dinshaw Wacha Road, Churchgate, Mumbai-400 020 BPCL follows the financial year from April to March. The Unaudited Results/ Audited Results for the four quarters were taken on record by the Board and published on the following dates : Quarter Date of Board Date of Publication Ended Meeting Apr-Jun 2009 28th Jul, 2009 29th Jul, 2009 Jul -Sep 2009 29th Oct, 2009 30th Oct, 2009 Oct-Dec 2009 28th Jan, 2010 29th Jan, 2010 Audited Results 27th May, 2010 28th May, 2010 for the year 2009-10 The Board has recommended dividend @ Rs. 14 per share of Rs. 10 each for consideration of the Shareholders at the ensuing Annual General Meeting. If approved by the Shareholders, the same will be paid on or before 4.10.2010. Monday, 13th September 2010 to Friday, 24th September 2010, both days inclusive, for the purpose of determining the names of Shareholders / Beneficial Owners who would be entitled for dividend. The Company’s shares are listed on the following Stock Exchanges: Name of Stock Exchange Bombay Stock Exchange Ltd Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 002. National Stock Exchange of India Ltd Exchange Plaza, 5th Floor, Bandra Kurla Complex, Bandra (E), Mumbai 400 051. Security Code/Symbol 500547
Dividend and Payment Date
Date of Book Closure
Listing on Stock Exchanges & Security Code
BPCL
The Listing Fees have been paid for the year 2010-11 to both the above Exchanges. ISIN Number For National Securities INE029A01011 Depository Ltd (NSDL) & Central Depository Services India Ltd (CDSL) for equity shares Market Price Data : High, Low during each month in the last financial year Performance in comparison to broad based indices i.e. BSE100 Registrar and Transfer Agents Please see Annexure I Please see Annexure II Shri H.Krishnamoorthy, General Manager (Operations), Data Software Research Co. Pvt. Ltd. ‘Sree Sovereign Complex’, 22, 4th Cross Street Trustpuram, Kodambakkam, Chennai, Tamil Nadu - 600 024 Ph: +91-44-2483 3738 / 2483 4487 Fax: 91-44-2483 4636 Email : [email protected] Annual Report 2009-2010
63
Share Transfer System
A Committee comprising two Whole-time Directors considers the requests for transfer / transmission of shares, dematerialisaton of shares etc. A Committee comprising four Directors i.e. two Whole-Time Directors and two Part-time Directors considers request for issue of share certificates. Transfers in physical form are registered after ascertaining objections, if any, from the transferors; and no valid transfer applications are kept pending beyond the stipulated period of thirty days. Requests for dematerialization of shares are processed and confirmation is given to the respective depositories viz. NSDL and CDSL within 15 days. Shareholder 1) 2) 3) 4) 5) 6) 7) 8) 9) Government of India Government of Kerala BPCL Trust for Investments in Shares Unit Trust of India Life Insurance Corporation of India Other Financial Institutions/Banks/Mutual Funds Foreign Institutional Investors Private Corporate Bodies Non Resident Indians/Overseas Corporate Bodies No. of. Shares % of Held Holding 198,600,060 3,111,111 33,728,737 4,339,441 38,207,372 27,986,771 28,828,302 15,812,256 306,477 1,302,462 9,319,135 361,542,124 54.93 0.86 9.33 1.20 10.57 7.74 7.97 4.37 0.09 0.36 2.58 100.00
Distribution of shareholding as on 31st March 2010
10) Employees 11) Indian Public TOTAL
Distribution of shareholding on number of shares held by Shareholders and shareholding pattern are given in Annexure III. Dematerialization of shares and liquidity After merger of KRL with BPCL, out of the shares held by the Shareholders other than the Government of India, Government of Kerala, BPCL Trust for Investment in Shares, 98.96% are held in dematerialised form as on 31st March, 2010. The Company has not issued any GDRs /ADRs/ Warrants etc. Plant Locations Mumbai Refinery Kochi Refinery Lubricant Plants : : : Bharat Petroleum Corporation Limited Mahul, Mumbai 400 074 Bharat Petroleum Corporation Limited Ambalamugal, Kochi 682 302 Bharat Petroleum Corporation Limited Wadilube Installation, Mallet Road, Mumbai – 400 009 Bharat Petroleum Corporation Limited 24, Parganas, Budge – Budge 743 319 Bharat Petroleum Corporation Limited 35, Vaidyanatha Mudali street, Tondiarpet, Chennai-600 081.
64
Bharat Petroleum Corporation Limited
Address for Correspondence
The Secretarial Department Bharat Petroleum Corporation Ltd Bharat Bhavan No.I, Currimbhoy Road, Ballard Estate, Mumbai, Maharashtra - 400 001. Tel No. 022 – 2271 3170 / 2271 3435 Fax No. 022 – 22713688 Email : [email protected]
General Manager (Operations), Data Software Research Co. Pvt. Ltd. ‘Sree Sovereign Complex’, 22, 4th Cross Street, Trustpuram, Kodambakkam, Chennai, Tamil Nadu - 600024 Ph: +91-44-24833738 / 24834487 Fax: 91-44-2483 4636 Email : [email protected]
Annexure I
BPCL MARKET PRICE DATA
Month(s) (April 2009 March 2010) Bombay Stock Exchange Ltd High (Rs. per share) 398.00 515.90 492.00 494.95 535.00 600.00 575.80 595.80 648.00 658.00 613.00 566.80 Low (Rs. per share) 361.35 348.70 407.00 426.55 460.00 506.55 488.20 498.25 582.05 527.50 545.00 502.00 Monthly Volume (No. of Shares) 1254135 4608484 4174726 3613848 2825239 3559235 1940422 2061042 1960486 1890807 3176433 2867102 National Stock Exchange of India Ltd High (Rs. per share) 399.35 516.40 492.00 499.00 544.35 601.20 576.00 596.20 645.50 657.60 613.00 571.00 Low (Rs. per share) 361.35 348.60 408.00 415.90 455.50 507.00 481.80 497.50 581.40 527.05 544.80 502.25 Monthly Volume (No. of Shares) 11113083 24601213 23746060 15930224 15847200 17141050 11024352 11566465 11852866 12216050 15228306 13787841
April May June July August September October November December January February March
MARKET CAPITALISATION / SHARES TRADED DURING 1ST APRIL 2009 TO 31ST MARCH 2010
BSE No. of Shares traded No. of Shares Highest Share Price (Rs.) Lowest Share Price (Rs.) Closing Share price as on 31st March 2010 Market Capitalisation as on 31st March 2010 (Rs. in Crores) 33931959 361542124 (on 4.1.2010) 658.00 (on 11.5.2009) 348.70 516.70 18681 NSE 184054710 361542124 (on 4.1.2010) 657.60 (on 11.5.2009) 348.60 518.05 18730
Annual Report 2009-2010
65
Annexure II
Annexure III
DISTRIBUTION OF SHAREHOLDING AS ON 31 MARCH 2010 No. of Equity Shares held No. of Shareholders UPTO 5000 84983 5001 TO 10000 124 10001 TO 50000 170 50001 TO 100000 49 100001 TO 500000 86 500001 TO 1000000 20 1000001 TO 2000000 17 2000001 TO 3000000 4 3000001 and above 7 TOTAL 85460
st
No. of Shares 10261279 913515 3826456 3587941 20478508 14139084 22740886 9620320 275974135 361542124
% of Total 2.84 0.25 1.06 0.99 5.67 3.91 6.29 2.66 76.33 100.00
66
Bharat Petroleum Corporation Limited
VOLUNTARY GUIDELINES 2009 OF MINISTRY OF CORPORATE AFFAIRS BPCL being a Central Public Sector Enterprise (CPSE), some of the good practices enunciated in the Guidelines are in place while others are under consideration for implementation to help in achieving the highest standards of Corporate Governance. Board of Directors Being a CPSE, Government of India appoints / nominates the Chairman and Managing Director, Functional Directors and other Part-Time Directors as per its Guidelines on the composition of Board of CPSEs. BPCL issues a formal letter informing induction into the Board along with the Annual Report, Insider Code, Code of Conduct, Disclosure Forms etc. Independent Directors do interact with the Management as and when required. BPCL being a CPSE, remuneration is decided by the Govt. of India and it has a clearly laid down remuneration policy and performance related packages. Part-time non-official Directors are paid only sitting fees as per the provisions of the Companies Act, 1956. Responsibilities of the Board Suitable familiarization process, methods for skills enrichment and quality decision making are in place for Directors. The Company has laid down an Enterprise Risk Management Policy and Procedures. Systems are in place to ensure compliance with laws. Audit Committee of Board The constitution, enabling powers and role and responsibilities of the Audit Committee are as enumerated and being followed. Auditors / Secretarial Audit / Whistle Blower Being a CPSE, Auditors are appointed by the Comptroller and Auditor General of India and they are rotated periodically by C&AG. The Audit Committee discusses with the Statutory Auditors about the Scope of Audit. Clarity exists for a proper and accountable audit. BPCL has a well established independent Internal Audit department headed by a senior management personnel. Secretarial Audit by a Competent professional is under consideration for implementation. BPCL has already framed a Whistle Blower Policy.
Annual Report 2009-2010
67
AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE
To The Members of Bharat Petroleum Corporation Limited We have examined the compliance of conditions of Corporate Governance by Bharat Petroleum Corporation Limited for the year ended 31st March, 2010, as stipulated in Clause 49 of the Listing Agreement of the said Company with Stock Exchanges. The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to a review of the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the mandatory requirements of Corporate Governance as stipulated in Clause 49 of the above mentioned Listing Agreement except for non-compliance of Clause 49 (I) (A) (ii) relating to the number of Independent Directors on the Board of Directors of the Company. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company. For and on behalf of B.K.KHARE & CO. FR No: 105102W Sd/Padmini Khare Kaicker Partner Membership No: 44784 Dated : 10th August, 2010 For and on behalf of K.VARGHESE & CO. FR No:004525S Sd/K.Varghese Partner Membership No: 20674
AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE
To The Members of Bharat Petroleum Corporation Limited We have examined the compliance of conditions of Corporate Governance by Bharat Petroleum Corporation Limited for the year ended 31st March, 2010, as stipulated in Guidelines on Corporate Governance for Central Public Sector Enterprises 2010 (the Guidelines) issued by Department of Public Enterprises of Ministry of Heavy Industries and Public Enterprises, Government of India. The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to a review of the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the requirements of Corporate Governance as stipulated in the Guidelines except for non-compliance of Clause 3.1.4 relating to the number of Independent Directors on the Board of Directors of the Company. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company. For and on behalf of B.K.KHARE & CO. FR No: 105102W Sd/Padmini Khare Kaicker Partner Membership No: 44784 Dated : 10th August, 2010 For and on behalf of K.VARGHESE & CO. FR No:004525S Sd/K.Varghese Partner Membership No: 20674
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Bharat Petroleum Corporation Limited
ANNEXURE TO THE DIRECTORS’ REPORT ANNEXURE C
Particulars of Employees under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 for the year ended 31st March 2010 Employed for part of the financial year and in receipt of remuneration of more than Rs.2 lakhs per month
Sr. Name No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 Agarwal D K Aggarwal Anoop Kumar Ankush B Damgude Arumuganainar S Arun Inba Kumar E B N Srinivasan Babu Mammen Bag Dilip Kumar Basheer Ahmed S I Baveja G S Bhaskaran Pillai P Bhatkar Mangesh Bhutkonwar Alois C D Mhatre Chandekar S T Chandramohan S Charles Paul Charles S M Charvethia T S Chhetri Lalsingh Garibdas Damodaran C K Dandekar P A Das Dilip Kumar Das Manoranjan David C M Deshbhratar Vn Dhadke A N Dharmalingam Karuppan Dr Dalvi G.Shenbagam Gachkal R M Gangadharan K K George Varghese Ghosh Debasish Girish Kumar Gohil Trikam K Golatkar D V Gopalan Nair N K Gopinathan M K Gujral G S Gurnani N R Hoshiar Singh Hukam Singh J Anthony Dassan Jagadeesh R Jagadesh R Jana J Johnykutty K C Jose Jaya (Ms) K P Jayaram Kadam S G Kakaria Kuldeep B Kanchwalla S F Kanjilal S Kannan S Karunakaran M K Kaul M K Khetale Balkrishna T Krishna Varier P K Kurian M L Yadav Reddy L. D. Manjhi Lad Chandrakant Gangaji Lalji Ram M M Farooqui Majhi Jagannath Mallick P K Mathew P D Mathur S N Misra Budhadeo Mohamed Rizwan Ah Mohan R Qualification B.Sc. (Engg), P.G. Dip. B.E. B.Sc. B.Sc. B.Tech. SSC SSC HSC M.Sc. B.E. SSC B.Com. 9th Std 9th Std B.Sc., B.E. B.Sc,ACA Diploma, P.G. Diploma HSC B.E. HSC SSC B.E. B.A. 9th Std SSC B.E. M.Sc. B.A. Below 7th Std. SSC B.E. SSC SSC B.Com. B.E. 11th Std HSC SSC SSC Diploma in Mgt,B.Sc. B.E. B.A. SSC SSC B.Tech, M.B.A. Diploma,B.E. B.E. HSC B.A. 9th Std B.Com. B.Sc,M.A. Diploma,B.E. B.E,P.G Diploma P.G Diploma,B.E. Diploma B.E,B.A. 9th Std SSC SSC HSC SSC 11th Std SSC HSC 8th Std B.E. Diploma in Engg ACA,ACS,B.Com. SSC B.Tech. B.Com,M.Com. Age 52 49 54 60 28 49 60 60 60 60 60 46 60 60 44 53 46 60 60 60 60 60 60 60 60 26 60 60 59 60 36 60 60 48 28 55 54 60 60 52 60 44 60 60 39 35 32 60 56 60 60 60 60 54 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 30 53 Date of Experience commencement of (No. of employment years) Manager, LPG Reticulated System, HQ 04-05-1981 30 DGM Engg-Mum Manmad Manglia Extn Proj 18.06.1984 27 C/H Craftsman 28.02.1980 30 Regional Ethanol Manager, South 21-05-1980 37 Senior Engineer (OM & S) 24.04.2006 4 Operator I (Field) 17.10.1988 21 Senior HEO/Mechanic 07.01.1985 25 Technician I (Boiler) 20.03.1984 26 Sr. Manager Installation, Karur 29-05-1980 37 GM (Health, Safety & Environment) 23.12.1982 39 Leading Fireman (FAS/PHO) 24.11.1986 23 Sales Assistant Lubricants 12.12.1994 15 Security Guard (P) 13.08.1986 24 Cook III 01.04.1993 17 Manager (F&S) 23.04.1991 19 GM (Finance) Refinery 11-11-1983 28 Senior Manager(MES) 01.07.1992 18 Senior HEO/Mechanic 17.05.1977 33 DGM (Advisory Services) 28.05.1984 36 Sales Assistant (Lubricants) 03.06.1988 40 Operator-A(S&OM) 15.02.1985 25 GM (P & AD) Lubes 03.08.1988 39 Assistant I 12.12.1985 24 Security Naik(P) 17.05.1984 26 Store Keeper 07.01.1985 25 Sr. Maint. Officer (Mech)-ARU 01.03.2006 4 Manager (Marketing Corporate) 02-06-1980 37 Sr Manager Incharge Chennai DU 11-05-1981 39 GO (Services) 01.04.1993 17 Security Guard I 11.07.1988 41 Dy. Manager (E&C) 11.08.1997 13 Operator-A (S&OM) 01.12.1988 21 Security Sergeant-VII 04.10.1984 26 Dy. Manager Railway Claims (Retail) 06.09.1983 30 Senior Engineer (OM & S) 03.04.2006 4 Superintendent 03.01.1978 32 Sr. Process Officer (CDU) 17.09.1979 31 General Clerk 12.01.1987 23 Driver (HV)-VI 20.07.1983 27 TM (Indl), Ahmedabad 01-09-1982 30 DGM On Deput To BORL Mumbai 02.07.1982 38 Assistant I 15.06.1992 26 Operator (P)(Field) 12.03.1990 20 H.F.C II 02.06.1986 40 Senior Engineer (Manufacturing) 01.10.1999 10 Sr. Manufacturing Engineer On Deptn 01.10.1999 10 Sr Officer Process(FCCU) 05.08.2002 8 Operator-B(S&OM) 04.11.1985 24 Secretary 17.04.1984 35 Security Guard I 21.08.1989 41 Dy. Manager (Ops) I/C, Verna Depot 05-05-1981 36 Manager, Mathura DU 14-05-1986 37 DGM (Procurement & Contract Services) 23.04.1984 37 Chief Manager (P&Cs) 31-12-1985 31 DGM (P & CS) 25.01.1990 20 Security Sergeant-V 14.10.1993 17 GM (Engg. & Advisory Services) 29.09.1986 39 H.F.C II 30.10.1984 41 Manager (Maintenance) 17.08.1971 38 Senior Leading Fireman 24.02.1986 24 Operator (P) (Field) 02.05.1986 40 Attendant (P)(Services) 01.07.1991 40 Assistant II 01.12.1978 39 H.V.D (P) 28.11.1980 31 Fire Opr. C/H 31.10.1980 29 Security Guard (P) 01.09.1986 24 Chief Manager Real Estate 28.06.1982 28 Operator-A(S&OM) 01.04.1984 26 General Manager 05-06-1984 39 L.V.D. (P) 27.04.1981 29 Sr. Officer Aromatics 05.08.2002 8 Manager In-Charge, Chennai DU 10.08.1984 35 Designation / Nature of Duties Total Remuneration Rs. 2644961.92 2148193.77 2216805.00 2528607.28 816725.00 1031341.00 561047.00 1045172.00 2262634.30 4163124.00 634328.00 594514.00 828208.00 388933.00 983734.00 2410829.92 1005910.00 1357564.00 4452965.00 891539.00 408031.00 2994023.00 1345821.00 1021783.00 804678.00 714492.00 3368873.05 2564831.12 813795.00 787764.00 867104.00 967962.00 1127974.00 2805217.00 661539.00 1648032.00 2428613.00 832504.00 556282.00 2759828.27 3827005.00 517941.00 769796.00 376717.00 826866.00 981132.00 966526.00 1409384.00 1838208.00 454213.00 1597656.25 2637094.34 3842367.00 2403486.02 2217172.00 324740.00 4519194.00 843910.00 2065384.00 1206867.00 435355.00 1036492.00 1185960.00 339434.00 1165871.00 1031989.00 2170306.00 859364.00 2660613.28 835049.00 546631.00 2921093.00 Particulars of Last Employment NBC Bearing NFL The Indian Standard Metal Co. Ltd. Indian Posts & Telegraph The Tuticorin Co-operative Bank Ltd. Indian Army Joint Electrical Works Telecommunication BHEL Indian Air Force
DCM Tata Oil Mills Company Bristol Boat Ltd. Fertilizer Corporation Corps of Signal Indian Army BM Thakkar & CO Damodar Valley Corporation Indian Army Services Indian Army SE & MT Wing Indian Navy Indian Army Indian Army Indian Air Force Tega India
Indian Army Naval Armament Depot Greaves Foseco EIL General Reserve Engineer Force Air Force Tata Chemicals Ltd. Enviro Care Systems Indian Navy Food & Nutrition Board Army Air India Super Parts (P) Ltd. Richardson & Cruddas Hindustan Petrolium Coramandal Fert Ltd. Indian Army FCI / RCF Indian Army Indian Navy Indian Army Comm. & Techni. Training Institute Ganesh Steel NTPC Civil Defence Mobile Column Indian Army Services IFFCO Indian Air Force AWHO Indian Army Services Pallava Engineering Works
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69
Sr. Name No. 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 Mohanan Chettiar V Mohanan M M Mohanan P K More Dnyandev Atmaram Muthuselvan P Naik G R Nandakumaran K Nanthur Neena A (Ms) Naphade Devidas Shivaram Narendra Prakash Singh Narsale Indrasen B Nirmala D Pachaimuthu A Pappachan P V Parkash Chander Patil P G Paul Rajat Kanti Peter Purti Pramanick Paresh Chandra Prasad Prabhu Lal Prem Kumar M Punit Gupta Purnima Wadhwani Radhakrishnan G Radhakrishnan K Rajalingam M Rajappan Nair P N Ram Avtar Ram Murare Gautam Ramakrishnan M Raman Sreedharan Nair Ramesh P Abnawe Rao S N Ratan Ajay Ray Ranjan Sadasivan Nair R Sadat Kamjibhai Jodaji Sardar Nemai Chand Sarkar A R Sathrajith P R S B Shelke Sebastian K P Sengupta Amitabha Shaik Ahmed Basha Shaiksab Sham Singh Shankaranarayanan T N Siddiqui M A Singh Tejinder Sivaprasad P P Sn Poojari Sreedharan P Srinivasa Rao N Srivastava P L Subrajit Kumar Sudhir Kumar Vishnoi Suresh Kumar K S Suresh M Surve Jagdish Narayan Suryaprakasa Rao M Suyambu A Tejasvi B L Thomas K J Trina Majumder Udai Singh Ujjawal Kumar Upadhyay A Vaidehi J Vasanth N Veeriah Baskaran Velayudhan P M Venu T Venugopalan K P Vijayan P R Viswakumar N Waghela Chandrakantkrishn Yogendraprasad P Pandey
Qualification SSC SSC B.Sc. 7th Std P.G Diploma,B.E. Diploma Diploma in Engg 11th Std 9th Std B.Tech. 8th Std B.A,B.Com. SSC SSC B.A,M.B.A. B.A. B.Com. B.Sc(Engg) HSC NCTVT Certificate,B.A. Diploma in Mgt,B.Sc. B.E. ACA,ACS M.Sc,B.Com. SSC SSC SSC, NCTVT Certificate 7th Std B.A. Diploma in Engg. SSC Dip. in Engg,NCTVT Certi. B.Sc,L.L.B. P.G Diploma,B.E. B.Sc. SSC SSC 7th Std B.Tech. 8th Std 9th Std SSC P.G Diploma,M.A. SSC 7th Std SSC B.Com. M.Sc,Ph.D. B.Sc,B.E,P.G Diploma P.G Diploma,M.B.A. Below 7th Std. SSC B.E. B.E. B.Tech. NCTVT Certificate,B.A. Diploma,B.Sc. B.Tech. 9th Std pass SSC 11th Std B.E. Diploma in Engg ACA,B.Com (Honours) 7th Std B.Tech. Dip. in Engg,P.G Diploma M.B.A,Bach of Mass Media B.E. B.Tech. Diploma in Engg B.A,M.A. M.A. SSC B.Com.,FCS,LLB,Dip (FRM) B.Sc. 9th Std
Age 60 58 59 60 46 60 60 60 60 28 60 60 60 60 60 54 60 60 60 53 48 36 28 45 60 60 60 52 60 60 60 60 60 46 47 60 60 60 60 60 60 60 60 60 60 60 50 60 60 41 58 60 30 60 28 57 45 35 60 60 60 60 60 29 60 26 60 27 37 38 60 45 60 60 60 51 59
Designation / Nature of Duties Security Sergeant-VI Security Sergeant-VI Senior Engineer (Manufacturing) Security Guard (P) Territory Manager (Retail) Manager (Estates) Operator-A (Utilities) Assistant Manager - (Hindi) Security Guard (P) Executive Aviation Technician I(Blending) Liaison Assistant Operator (P) (Field) Purchase Assistant Mgr (AVN) Dy Manager - Operations (Retail) Manager DSB-WB & NE, Kolkata Chief Manager(Maintenance) Tallyman I Operator (P)(Field) Station Manager - Chennai-AFS Dy. Manager - Engineering (Retail) Assistant Manager, Finance (Lubes) NR Territory Manager (Retail), Bhopal Leading Fireman Operator (P) (Field) Senior M/M Craftsman Attendant.I(Services) Superintendent Operator-A L.V.D(P) C/H Craftsman Sr Ops Officer(TDU) Sr. Manager Const. (Pipeline) AM (Indl), Kolkata Leading Fireman H.V.D I Operator (P)(Field) GM (Materials) Operator (P) (Field) GO (Services) Manager(OM & S) GM ( HR ) Mumbai Refinery Operator (P) (Aviation) Operator (P)(Field) Technician I (Retail) Network Manager, Highway Retailing, RHQ ED (R & D) DGM (E&P),West Manager R&D Cook General Craftsman (HEO/Mech) Assistant Manager Sales (Retail) Chief Manager Asst.Manager (Sales) - Moradabad Technician I (Retail) Engineer (Manufacturing) Deputy Manager (Manufacturing) Security Naik H.V.D (P) Technician(P) (Retail) Sr. Manager (MMPL) Project Senior Leading Fireman Assistant Manager Accounts (Lubes) Operator I (Field) Executive, P & AD Lubes Sr. Manager Audit-Ref Assistant Manager, Brand & Pr Dy. Manager - Sales (Retail) Senior Engineer (OM & S) Operator-A (Utilities) Dy. Manager - Sales (Retail) Sr. Manager (Ben Admin) Technician I (Elec) Company Secretary Lab.Analyst I Uti.Opr.
Date of Experience commencement of (No. of employment years) 05.05.1987 23 06.05.1991 19 04.05.1981 29 30.06.1987 41 02.02.1987 25 01.03.1977 33 03.10.1984 26 12-09-1973 39 14.07.1986 40 08.05.2006 7 01.03.1978 40 20.11.1990 20 01.12.1980 28 24.05.1968 42 13-03-1978 44 25.07.1979 31 16-05-1983 27 28.11.1985 24 08.03.1984 26 19.03.1982 28 02.02.1987 24 05.08.1996 14 03.12.2004 5 20.04.1987 23 24.02.1986 24 02.08.1982 27 27.09.1982 28 09.09.1987 25 03.10.1983 31 12.01.1987 23 01.07.1986 41 19.06.1979 31 28.02.1980 30 03.02.1987 23 02.02.1987 23 08.04.1985 25 12.09.1986 24 05.10.1983 27 03-01-1983 39 02.04.1979 31 01.04.1993 17 09.05.1973 37 20-03-1989 35 01.06.1985 41 16.10.1979 31 01.02.1989 40 12-10-1981 30 16.11.1990 19 04-04-1983 37 25.04.1996 14 01.04.1993 17 04.03.1985 25 03.10.2002 8 05.11.1985 39 01.06.2005 5 01.03.1983 34 16.10.1986 26 15.04.1999 11 22.08.1984 42 30.04.1979 30 12.03.1979 31 14-05-1981 30 24.02.1986 24 16.10.2006 3 06.10.1987 25 19.06.2006 4 04.05.1987 23 19.06.2006 4 17.06.1996 15 01.10.1999 10 12.01.1987 23 03.07.1989 24 15.01.1979 41 18.08.1986 39 05.04.1982 28 09.06.1988 29 14.12.1984 25
Total Remuneration Rs. 669039.00 891818.00 1571886.00 641840.00 780480.00 3026867.00 886323.00 1073556.05 854871.00 352876.00 690208.00 814181.00 562607.00 595381.00 2491859.66 2182716.00 3458284.85 2137977.00 1361117.00 607338.00 2943513.83 463739.00 1148381.00 1456402.00 825821.00 1104000.00 1090799.00 959684.00 1439335.00 422312.00 987470.00 1686613.00 1915742.00 2399796.00 1570556.00 342731.00 858646.00 841262.00 6495838.95 959919.00 355503.00 1619426.00 3639147.94 687936.00 1054981.00 831733.00 1052570.75 4051920.00 2593791.47 1268196.00 631612.00 571546.00 627218.00 2065308.00 369496.00 1079173.00 1157686.00 1243216.00 1322460.00 754844.00 1477318.00 2091777.58 591685.00 295538.00 376678.00 482220.00 2682380.00 339508.00 907876.00 667765.00 1023210.00 1620189.00 3021436.15 823501.00 3768427.00 1074504.00 1974816.00
Particulars of Last Employment Indian Air Force Indian Army Bombay Ring Travellers Ltd. TWAD Contractor Bharat Refineries Ltd. Indian Air Force Cention Indu. Alliance Ltd. Ministry of Defence NPTC Ltd Reunion Engineering CRECCS Ltd CDA Navy Union Bank of India BEML Corporation Bank
Indian Army Madras Atomic Power Plant Kadambini Editorial Shah Carpet co. Ltd. Indian Air Force Indian Army Mazagaon Dock Ltd. United Carbon India Limited Indian Navy Neeka Tube Ltd. L&T Kerala Inland Navigation Corp. KBAI Co-Op Soc. Ltd Calcutta Chemicals Army (Artillery) Molives of India Ltd. H'bad Invest & Fin Consult GSFC Fertilizer Thapar Intrafor Co. Grasim Industries Indian Army FCI Bharat Steel Tubes Ltd. Indian Army PWD Electrical Indian Air Force Corps of Signals
Indian Organic TANFAC Inds Indian Air Force Impex Indian Air Force Indian Air Force Directorate of General Stores
70
Bharat Petroleum Corporation Limited
Employed throughout the financial year and in receipt of remuneration of more than Rs.24 lakhs
Sr Name No. 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 Agarwal Sudhir K Agrawal M D Agrawal S K Agrawal S K Agrawal Shriniwas Agrawal V K Ahluwalia Anil Ahmed F K Ahuja Naresh Kumar Ahuja R K Ajit Kumar Ajith Kumar K Akut J R Amar Bahadur Singh Amudharaj M Anand Shakti Kumar Anand V Anandasundaresan P Ananthakrishnan G Anil Kumar B Anish Batra Anjaneyulu K Anurag Deepak Appa Rao K Apte Y V Arunachalam K Ashok Simon Atul Kumar Babar T D Babu Joseph Bahl Sunil Baiju P Alex Bains Sunil K Bajpai P K Bakshi Rajiv Balasubramanian P Balasubramanian R Balraj S Banerjee Siddhartha Bansal A K Barve R S Basant Udai Basil Benjamin A J Behera R Bhakta S Bharadwaj V K Bhardwaj R M Bhargava P S Bhargava S Bhaskaran D Bhat J K Bhate S V Bhatnagar P P Bhatt S K Bhattacharya S B Bhattacharyya A K Bhowmick P K Bhowmik Shiba Prasad Bhushan Bharat Biswajit Mandal Braganza J A Bunger S P C V R Chennakeshava Rao Chakkravarthy S D Chakraborty B Chakrapani T A Chand Anit Kumar Chanda Partha Chanda Sujit Kumar Chandran M Chandy K P Chattopadhyay D K Chaturvedi R Chawla M M Cherian M K Cherian V G Qualification B.E,M.Tech M.Sc B.Com,M.M.S B.Com., L.L.B, AICWA M.E,B.Sc(Engg) B.E. Diploma, B.Sc. B.A. B.Sc. B.E. M.Sc,M.A. B.Tech,M.B.A. Diploma in Mgt.,M.B.A. B.E L.L.B,M.A. M.Sc. B.Com., M.B.A. B.Sc,M.Sc. Diploma,ACA, B.Com. B.Sc,M.Sc. M.A,M.A. Diploma in Mgt,B.Tech. B.E. B.Sc B.E,M.F.M B.E. B.E. B.E. NCTVT Certi.,Old SSLC M.B.A,B.Sc(Engg). M.B.A,B.Sc(Engg) B.Tech. P.G Diploma,B.E. B.A,M.A. ACA P.G Diploma,ACA B.Com. HSC, NCTVT Certificate P.G Diploma,B.Sc. B.Com., L.L.B. Diploma in Mgt,B.Com. B.Sc,L.L.B. B.Sc(Engg)., M.B.A M.Sc. B.Sc. Diploma in Mgt,B.Sc L.L.B,M.A. B.E,B.E,M.E. B.E. B. Sc, Diploma (Engg) B.Tech,MMM. B.Tech. Diploma, M.C.A. M.A. L.L.B,AICWA B.Sc(Engg) B.E B.E. B.Com. B.Sc. Diploma, B.Sc. Diploma in Mgt,B.Tech. B.Tech,M.F.M. Diploma in Mgt,B.Sc B.E. B.Sc. M.Sc,M.A.M. B.E B.Com. M.Sc. B.E. B.E. Dipl. in Mgt,B.Sc,M.A. B.Tech. B.Sc(Engg). B.Sc. Age 51 56 49 51 51 60 49 50 56 50 52 47 51 46 50 55 50 54 50 53 53 51 56 52 49 45 51 54 56 50 52 47 46 57 50 53 54 53 55 58 55 50 52 52 51 55 47 58 50 56 49 50 51 52 55 57 46 43 52 47 57 59 53 59 55 47 51 56 53 57 54 51 56 53 52 58 Date of Experience Total commencement of (No. of years) Remuneration employment Rs. Chief Manager Ops (Retail), Jnpt - Uran 01-07-1981 29 2761278.28 DGM (IS Ref) 17-08-1981 32 2515653.27 Team Leader (Pricing & Commercial) 02-09-1983 27 2513519.90 GM (Legal) 29.12.1983 29 2871214.88 Project Leader, E&P - North 04.02.1985 29 2513195.59 Sr. Vice President - BORL 20.02.1984 37 2930671.64 Chief Manager Fleet Services (Retail),West 06.08.1984 26 2708040.61 Chief Manager, Base Oil Marketing, HQ 10-06-1981 29 2863442.11 TM (LPG) 10-01-1983 36 2669968.25 Chief Manager (E & P)- HQ 04.02.1985 29 2810429.00 Joint Director, PCRA - Delhi 29-09-1981 29 2702791.78 Senior Manager BORL 12.01.1989 21 2530193.47 GM (IIS Technology) 05-06-1981 31 2858504.80 Senior Manager(Project) 01.03.1993 17 2576244.24 Sr Manager Ops. (Retail), Sewree Instl. 02.03.1987 23 2595309.97 Sr.Installation Manager 06-05-1981 30 2636215.38 DGM (Sales) Retail South 01-09-1982 28 2826015.82 General Manager (Sales) I&C, Mumbai 12-05-1980 31 2545267.85 Chief Finance Manager (Refinery Project) 05-10-1987 26 2588753.34 DGM (IIS) Infrastructure, Co 10-11-1980 29 2714721.11 Aviation Manager - North & East 02.07.1984 31 2782833.78 Sr. Manager (HRS), Corporate 17.07.1986 27 2427850.03 ED (Logistics) Retail, Mumbai 11-10-1982 35 3306458.49 Manager Operations (Retail) 15-12-1983 31 2459475.95 On Deputation to BORL Bina 22.02.1982 29 2513280.26 Senior Manager(Project) 20.06.1989 21 2864445.79 DGM 01.08.1985 25 2829044.87 Team Leader Tech Servs. & HSSE (Aviation)HQ 13-05-1981 30 3137571.38 Dy Manager (TDU) 20.06.1979 31 2534933.73 Chief Manager(Project) 04.10.1984 26 2608639.20 DGM Logistics (LPG) HQ 17-11-1980 29 2801135.99 Manager (Construction Group) Calicut 16.02.1987 24 2528494.44 Manager ( Business Development) Gas 06.04.1987 23 2488682.43 Sr. Manager (Vigilance) 01-09-1982 32 2931535.22 Deputation to PNGRB 01-09-1987 24 2760341.60 GM (Corporate Finance) 10.06.1985 33 3115277.76 Team Member - IIS-ERP 26-11-1979 33 2518919.75 Sr. Manager Business Devpt (Indl),Spl Products 17.09.1979 31 2607808.16 Regional LPG Manager, North 28.04.1986 34 3085149.08 ED (Gas) 01-12-1983 39 2791049.54 Chief Manager, Audit 08.06.1978 35 2552813.74 Sr. Manager, ARB (Retail)- North 01-09-1982 28 2419629.27 Chief Manager (Shift) 01.02.1985 25 2753941.51 Team Member, ERP CC 01-09-1982 30 2495660.14 Manager, CSSC (SDCV)& Qsro-North 01-06-1981 33 2430104.86 Chief Operations Manager 05.05.1986 34 2426002.42 Sr.Manager - PPAC Delhi 06.04.1987 23 2752799.47 ED (Planning) 10-03-1978 36 3029289.58 DGM, Supply Chain Optimization 10.09.1984 28 2635459.83 DGM (E&As) Incharge 14.03.1984 33 2430725.35 Sr Manager (IT) 02.03.1987 26 2640694.46 Executive Assistant To Director -R 14.01.1982 28 2671959.97 Sr. Manager (IIS), CO 18-01-1982 28 3208788.59 Senior Manager Operations I/C (Retail) 28-04-1981 29 2514913.60 GM (Aviation) 06-07-1981 34 2629576.11 Sr Manager Engg Construction (E&P) 01-09-1982 31 2428618.35 Sr. Manager (P&Cs) 16.12.1987 22 2421850.08 T.C. (LPG) Allahabad 03.09.1990 20 2467263.42 Deputy Manager - Operations (Retail) 18.03.1980 33 2477440.75 Manager Operations I/C (Retail) 02.03.1987 23 2523676.30 DGM (IS Services) 20-12-1978 37 2551297.07 Sr.Manager HSSE (Retail), North 27.11.1984 35 2597564.14 Manager Operations (Retail) 18.06.1984 27 2506577.85 Chief Manager In-Charge (Lubricants) 05-06-1981 38 2621825.62 Chief Manager - Materials (E&P) 17-12-1981 29 2515452.64 Territory Co-Ordinator, Chennai LPG 02.03.1987 26 2436420.61 Sr. Manager (Retail Mis), HQ 11-05-1981 30 2845082.55 Chief Manager Infra. Logistics (Retail) 05-10-1983 32 2418186.69 Deputy Manager Operations I/C (Retail) 25.11.1983 26 2476870.24 Sr Manager HSSE (LPG) South 01-09-1982 30 2800014.70 Regional LPG Mgr South 16.12.1985 30 2759705.86 Manager Construction [Retail], Kolkata 01-09-1982 29 2623518.72 RM (Lubes) North 16-06-1980 30 3094922.18 GM (Pipeline Projects) E&P 13-02-1978 33 2999781.32 Senior Manager(E&C) 14.06.1985 25 2530772.56 Sr Manager Quality Control 09.10.1978 32 2530054.35 Designation / Nature of Duties Particulars of last employment
BSA College Cartech Udyog Sharma & Associates FCI Industrial Containers Delhi Telephone Shyam Lal & Son Telco Tata Pharma Ltd A.S. Tatari A.M. Jain College Duphar Interfram Ltd. Clutch Auto Ltd NTPC BHEL AP Travel & Tourists Steel Tubes of India Dewas Hindustan Aluminium
KC John, Silpiarch Bhagirath Gramin Bank Voltas Ltd. Sri Ram Enterprises Co-optex International Bitumen Product IBP Co Ltd The Kohinoor Mills Co. Ltd. Orissa University Saral Travels Hindustan Lever Gen Engg Works, Sriram Fertilizers Union Carbide (I) Ltd. Savita Chemicals
RBI CLW, Chittaranjan All India Radio Premier Automobiles Punjab Agro Industries N V Rattaia & C Carborundum Universal State Bank of Hyderabad Ghosh Bose & AS S.R. Govt. HR. Hindustan Lever Jayashree Chemicals J.K. Synthetics
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71
Sr Name No. 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 Chiramal J P Chogle Sujata N (Ms) Chopade Kisan Wasudeo Damien Gracious K D Dana P K Das A Das Bhaskar Das Gautam Das Munshi Ashim Ranjan Das Prabir Das Samir Kumar Dasgupta N Dass Amar Datta B K Datta Tapan David C D'costa C (Ms) Debabrata Das Debnath Ashutosh Dekate R G Desai S S Deshmukh Ravindra V Dev Raj Dewan Sunil Dey S K Dharmaraj Ashok S K Dilip Kumar L Dinaker J Dinesh Chandran P Diwakar K K Dogra A K Donadkar R J D'souza Juliet (Ms) Dsouza R P Duggal Vijay Dutta Ashim Kumar Dutta Munish Elizabeth Jain (Ms) Francis Placidus K G Gadekar B R Ganesh P G Gangan V V Gangopadhyay S S Ganguly Debashis Ganguly G C Ganguly Jayanta Gathoo S P Gawai N P Gayen P K George Paul George S D George T George Thomas Ghalsasi R R Ghan S P Gharat S P Gharat V N Ghorpade P V Ghosal Shantanu Ghosh Pallav Ghosh Subir K Girish Kumar U V (Dr) Goel S K Gonsalves A Gopakumar P R Gopinathan R Gopu K B Gore U M Govadia M N (Ms) Govind M (Ms) Govinda Rajan N Govindarajan M P Goyal Pardeep Gupta A K Gupta A K Gupta Ashok Kumar Gupta H P Gupta K K
Qualification B.Com. B.A,L.L.B. B.E,M.Tech. B.Sc.(Engg)., AICWA B.Tech,M.Tech P.G Diploma,B.Sc. P.G Diploma,B.Tech B.E. Diploma in Mgt,M.Sc. Diploma,B.Sc. B.Sc. B.E P.G Diploma Diploma in Engg,B.E. B.E,M.B.A. B.Sc,M.Sc. P Diploma,B.A (Honours) .G B.Com., AICWA B.Sc,M.Sc. M.A,M.B.A. B.E B.Sc,B.E. B.Tech,M.B.A. B.E. B.Tech B.A. Diploma in Mgt,M.A. AICWA,ACA B.Sc(Engg). B.E. B.Sc,M.B.A. B.Tech. B.A. Diploma in Mgt,B.Sc. ACA,B.Com. P.G Diploma,B.Sc(Engg) Dip. in Mgt, P.G Dip., B.E. Diploma in Mgt,B.A. B.Sc,M.B.B.S. P.G. Diploma, B.E. B.Sc (Engg) B.Com,B.A,M.B.A. B.Tech B.E. P.G Diploma,B.E. B.Com. B.Com., M.A.(PM&IR) B.Sc, M.Pharm. B.E. M.B.A,B.Sc(Engg). B.Com. P.G. Diploma,B.Tech B.Sc. (Engg), M.B.A. Diploma in Mgt,B.E. P.G Diploma,B.Tech B.Sc. Diploma in Mgt, B.Com. Diploma in Mgt,B.Sc, BGL. B.Tech. B.A,M.B.A. Diploma in Mgt,B.Sc. M.Sc,Ph.D Diploma in Mgt,B.E. ITI Certificate B.Sc(Engg) AICWA Diploma in Engg. B.A B.A, Diploma B.A. B.E,M.B.A Diploma,P.G Diploma P.G Diploma,B.E. B.Tech,M.Tech Diploma, B.E. M.Sc,B.Sc(Engg) B.Tech. B.Sc,M.Sc.
Age 53 50 38 52 58 56 52 45 57 47 52 58 52 54 57 58 56 46 52 54 52 47 57 58 57 51 57 51 52 45 47 58 60 55 46 54 42 58 50 53 51 55 53 46 49 60 53 51 53 53 50 53 51 47 57 58 56 55 42 58 56 56 57 54 55 59 53 54 52 52 51 56 43 56 55 52 55 54
Designation / Nature of Duties Sr Manager Dealer Selection Board DGM HR (Retail) Dy Manager Ops (MOT) MMPL Chief Manager(Project) DGM (Audit) - Mumbai DGM On Deputation To BORL, Bina Business Informations Manager (Lubes) HQ Manager Engg. (Automation), Noida Chief Manager [HRS], East Sr. Manager Aviation Operations, Delhi Sr. Manager (Supplies), RHQ DGM Ops & HSSE (LPG), HQ Manager(Aviation)-Delhi AFS ED (Supply Chain Optimization) DGM (Vigilance), CO Manager (Marketing Services) Bangalore Regional LPG Manager - West Manager Finance(Shared Services), East Sr Manager Qlty Assurance (Lubes), East Sr. Manager Ops. (Retail), Kandla Instln. DGM (Admin) CO Territory Manager (LPG), Uran Proj Leader NR, Noida Project Facilitator, WR Team Member, ERP CC TM (LPG), Cherlapalli Sr. Manager (Hindi), CO GM Finance (International Trade) Chief Manager (Manufacture) Manager (Ops) Manager Shift Operations Delhi AFS Chief Process Manager (Train-3) Secretary - ED (IT) On Deputation to Matrix Bharat Marine Services DGM Commercial (CGD) Director (Commercial) Central UP Gas JV Dy Manager(Estates) Team Leader HR (Aviation) Senior Medical Office Sr Manager (ROU & Safety), MMBPL, Mumbai Chief Manager (Manufacture) Sr. Manager (IS Refy Sys) Sr. Manager Ops. & HSSE (LPG), West Co-Facilitator, Kolkata E&P Manager Materials, East Sr Manager Mktg Services (Lubes) ED (HRS) Co-Ordinator (Aviation), West Sr. Manager (CPO) DGM (Prod Desp) Sr. Finance Manager (Shared Services) - West Chief Manager (Planning), Co Sr. Manager ESE (Kochi) Chief Manager(Mech)- CCR Project Chief Manager Logistics & HSSE (I&C), HQ Manager (Estates) Ch Mgr HR (Comp.& Benefits), CO Territory Coordinator (Retail), Mumbai Manager Engineering, Kolkata E&P GM (Retail) East Senior Manager Procurement (Retail) DGM IT & BI (RHQ) DGM (Manufacturing) Dy Manager E&C (Design) Chief Engineering Manager - North Chief Manager (Intern) Deputy Manager(Maint.) Chief Manager (IT) Sr Mgr. Brand Promotion & Campaigns,Retail HQ Dy.Manager (Shared Services), West DGM (E&P) South GM (HR) Kochi Refinery Sr.Manager (Retail Engineering)-North DGM (Infrastructure Planning & Devpt.) RHQ Chief Manager (Internal Safety Audit) DGM (RNP & RE) RHQ Territory Manager [Retail], Delhi ED (Retail) In-Charge
Date of Experience Total commencement of (No. of years) Remuneration employment Rs. 02-11-1981 29 2558925.72 22-12-1983 28 2503749.04 28.12.1995 14 2639070.93 14.09.1983 27 2521720.78 10-06-1980 30 2637064.43 21.09.1984 26 2566043.03 07-06-1983 27 2487308.74 06.04.1987 23 2547175.25 04-06-1986 34 2700776.28 16.02.1987 23 2677928.58 17.09.1984 26 2573033.53 04-09-1986 34 2423661.35 24-04-1981 29 2860931.66 01.04.1980 30 3386015.49 02-06-1986 33 2842125.86 02-07-1980 36 2855808.61 30-06-1980 35 2548988.56 17.04.1995 21 2546112.85 29.08.1984 28 2827923.64 03.09.1984 31 2638204.62 02.09.1983 30 2532142.18 22.02.1988 22 3110025.49 05.09.1984 31 2804811.58 23-06-1986 36 2505653.82 20-05-1981 33 2405222.87 14-03-1983 28 2487346.73 01-09-1982 29 2683811.27 02.05.1985 31 2920038.29 14.09.1983 27 3107530.99 03.02.1987 23 2460367.45 03.02.1987 23 2600010.72 01.10.1992 33 2440334.02 23-01-1978 32 3372465.47 01-09-1982 36 2568301.53 22-07-1987 24 2750756.17 26-06-1981 32 3076829.84 02.07.1990 20 3032445.18 03-03-1975 36 2811931.90 15.12.1994 15 2468034.92 02.02.1987 23 2486330.86 09.05.1985 25 2468062.40 25.10.1977 33 2535468.09 23.07.1984 29 2409186.90 01.08.1988 22 2606750.33 11.09.1985 25 2598807.97 23-06-1986 28 4612025.13 10.10.1986 31 2885811.74 27-04-1983 28 2409010.16 03.02.1987 23 2920770.23 14.09.1983 27 2640845.64 09-09-1981 29 2486487.24 05.06.1984 30 2480508.47 01.12.1984 25 2415634.79 03.07.1985 25 2602899.82 05-01-1984 34 2420165.01 10.11.1976 33 2493975.16 12.02.1980 36 2621058.14 06-10-1981 34 2496499.81 03.09.1990 20 2727517.97 30-11-1983 34 2664696.92 10-07-1981 30 2790803.13 18-01-1982 28 2607723.47 21.05.1992 34 2550450.53 06.10.1986 30 2511910.43 12-05-1980 31 2411998.13 17.07.1972 38 2773776.20 01.02.1979 31 2673436.65 14-03-1983 30 2416931.79 25-02-1980 31 2523976.66 13-10-1980 31 3098446.85 21-09-1983 29 5353029.02 12.07.1979 34 2746188.66 01.08.1988 22 2894974.66 03-01-1979 33 2728659.68 16.08.1979 31 2580845.68 01-09-1982 28 2555701.54 04.11.1985 31 2606181.83 23-01-1979 33 3146862.66
Particulars of last employment The Catholic Bank Larsen & Toubro
Tyre Corpn. of India HFC Godrej Boyce Mfg. Sr Project Officer Blue Star Ltd. SAIL Calcutta University New India Assurance Const Engg Corporation DDA Essar Construction Indian Turpentine Complete Export Food Corpn. of India PK Mitra & Co
Deepak Fertilizers Ltd. Member Audit Kumar Chaudhury J.K. Industries Ciba-Geigy N.V.P. Medical Centre
Godrej Soaps Ltd Bajaj Electricals NTPC Ravinder Motors HPCL Dunlop (I) Ltd Chinai Comm Co Ashok Engg The Bombay Textiles IOC National Fertilzers Ltd. Chemtex Engg of India Ltd. Kerala State Warehouse Dena Bank HPCL Industrial Cables Brittania Industries Groundnut Extra Chemicals Engineering Indian Oil Corp. Flowmore Pvt.Ltd.
72
Bharat Petroleum Corporation Limited
Sr Name No. 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 Gupta R Gupta R M Gupta Sanjiv K Gurbuxani Prakash Gurumurthy K Hajela S K Harinarayana V Hira A Iyengar Pradeep K Iyer C J Jacob V Jadhav A Y Jaidka S K Jain C K Jain Mukesh Kumar Jain Parvesh K Jain S M Jain Sudhir K Jalali S N James J Jawaharlal V Jayan K K Jayan M P Jha Nand Kishore Jironekar J S John Minu Mathew Johny K T Joshi Devendra Joshi Mukul Joshi S K Joshi S M Joshi U N Kadam S B Kailash Nath Kakade H B Kakurla R M Kalaiselvan G Kamble D B Kandarkar Bs Kannan S Katware Prashant S Kaushik A K Kearney D A Khan R Irfan Ali Khandare T P Kharche V R Khurana M C Kirolikar H Koley Pankaj Kumar Kotian Purushothama J Krishan Gopal Krishna Sankar R S Krishnamurti S Krishnan A L Krishnan S R Krishnaswamy A Kulkarni Nitin Kulkarni S V Kumar Amrendra Kumar Arun Kumar Bhuvnesh Kumar Dhirendra Kumar Dinesh Kumar Manoj Kumar P V Kumar Pankaj Kumar Rakesh Kumar Sumant Kumaraswamy P Kurian P Alapatt Kute M L Lakshminarasimhan R Lal Ramji Laxman T Limaye A G Madhia H K Mahendiran A
Qualification Diploma, B.Com B.Sc, M.B.A(Engg) B.Tech B.Com,ACA. AICWA,ACA Diploma in Engg B.E. B.E. B.Com B.Tech. B.Sc. Diploma in Mgt,B.A B.Sc. M.Tech,P.G Diploma,M.A. Diploma in Mgt,ACS M.Sc B.E. P.G Diploma,B.Tech B.E. B.Sc,B.Tech. P.G Diploma,L.L.B. M.A,Ph.D. P.G Diploma,P.G Diploma B.Sc(Engg). Diploma in Mgt,B.A. B.Sc.(Engg) Diploma in Engg Diploma,B.A. B.Tech,M.B.A. B.Com., M.B.A,ACA Diploma in Engg,B.E. B.E. B.E,M.A.M. B.E. B.Tech Diploma,B.E. P.G Diploma,B.E Diploma,B.Tech. B.Sc. M.Sc. B.E. Diploma, P.G Diploma P.G Diploma,B.Sc. B.A B.Tech. B.E,M.B.A. B.A. B.Sc,L.L.B. Dipl. in Mgt,B.Sc(Engg) AICWA B.Sc. NCTVT Certi.,Diploma B.Sc B.Sc Diploma in Mgt,B.E. Diploma, B.Sc. B.Sc,M.Sc. FCS, AICWA,CAIIB Diploma, B.Sc(Engg). Diploma in Mgt,B.E. B.Sc,M.Sc. B.Tech M.Tech B.E,M.B.A. B.Sc,L.L.B. AICWA,ACA,, B.E. B.E B.E. B.Tech,M.E. B.E. Diploma,B.Sc. B.A,M.A. Diploma in Engg,B.Sc. Diploma,B.Sc B.A. B.E.
Age 55 58 49 56 48 53 52 55 48 51 49 58 52 56 56 46 60 54 53 49 55 55 50 47 51 58 49 44 46 59 48 57 54 46 54 58 54 51 48 53 47 51 52 54 52 51 52 54 54 49 55 52 57 51 52 51 50 53 48 59 47 51 58 43 53 44 59 53 53 48 56 50 55 60 56 55 44
Date of Experience Total commencement of (No. of years) Remuneration employment Rs. Ch. Mgr. Promotion & Merchandising (Lubes) 01-02-1979 33 2400269.29 ED (LPG) 12-10-1982 35 3399016.58 Sr. Manager Const Group, Jaipur 02.07.1984 28 2407171.71 DGM (Finance) 15-05-1981 32 2860654.10 DGM (Finance) 16-07-1987 23 2469746.48 Sr Manager Maint (M&C) 20.08.1987 32 2406567.11 Chief Manager (Vigilance), CO 20.01.1982 30 2478898.20 Executive Chairman, PII 15-02-1978 32 2859357.47 Sr. Manager Mktg Servs (Indl), Mumbai 16.10.1987 30 2411085.26 DGM (Technical) 03.12.1984 25 2494523.53 Aviation Manager In-Charge, West 01-09-1982 28 2544603.47 Sr. Manager (Admin), CO 10.04.1978 34 2424109.35 Sr. Installation Manager 29-04-1981 32 3112392.78 DGM (BORL) 14.10.1983 33 2789080.87 Chief Manager Legal - Mumbai 22-06-1981 36 2545180.89 Manager QC 16.02.1987 25 2401814.13 DGM (E&C),Refinery 08.07.1988 38 2687895.34 Sr. Manager Engg Pol - Noida 06-05-1981 30 2432887.30 Chief Maint. Manager(SP) 06.07.1990 20 2566979.49 AM (Indl), Kayamkulam 16.02.1987 23 2661326.80 Sr. Manager - Legal, North 07-09-1981 32 2468497.02 DGM 19.11.1991 19 2466560.62 Senior Manager 01.12.1984 25 2627527.71 Manager Tech Services (Indus) - North 01.08.1988 22 2635228.81 Dy Manager Operations (LPG) 13.09.1984 26 2755581.62 GM (Tech.) 20.12.1982 27 2654760.83 Chief Manager (Projects) 19.10.1982 27 2427482.18 Manager (HR Serv.) 02.05.1994 23 2575400.47 Sr Manager (Business Plan)-NR 01.04.1985 25 2544276.27 Director (Finance) 13-02-1978 38 2928334.80 Sr.Manager Process (CDU Train I & II) 17.06.1986 27 2416967.67 Managing Director (BORL) 20-05-1982 36 3072239.64 Chief Manager (Fire & Safety) 01.03.1982 30 2653092.10 Territory Mgr (LPG), Indore 16.02.1987 24 2455374.47 Chief Manager (Workplace Security), HSSE 01-07-1981 29 2430802.33 Sr. Manager Admin & Monitoring, Mumbai 30-12-1981 33 2695805.17 DGM, ERP CC 13-10-1982 30 3195961.51 Chief Process Manager(SP) 10.07.1990 20 2929063.75 Sr Ops Officer (CCU) 20.02.1984 26 2486753.30 Area Marketing Manager (Kerala) 16-05-1980 30 2418428.66 Sr Manager RNP & RE, West 20.04.1987 23 2600440.48 GM (IS -Infrastructure & Services) 22-06-1981 29 2759158.74 AM (Indl), Chennai 09-05-1980 30 2406950.80 DGM (Logistics) Retail 21-04-1982 29 2482134.93 Project Leader VBPL, Rajkot Camp Office 19.11.1984 27 2578901.62 Plant Manager (Lubes), Wadilube 21-05-1982 30 2484928.59 Ch. Manager (Regnl LPG Coord) - North 16-11-1981 29 2533937.00 Sr. Manager, Public Relations, CO 01-10-1981 32 2521925.93 Manager Tech Servs (Indl)-East 01.08.1985 29 2405674.68 Assistant Manager Ops., Lubes 20.09.1983 28 2626673.93 Sr.Manager In-Charge , Sewree Instln. 16-05-1983 28 2789324.50 Sr Manager (Ben.Admin) 24.08.1984 26 2501170.93 ED (Corporate Affairs) 15-12-1982 37 3875488.95 Territory Manager (Retail) Bangalore 01-09-1982 28 2436083.20 Chief Manager (E&C) 11.11.1983 26 2677118.86 DGM (Strategy) 16-04-1980 30 2548023.79 Business Development Manager (Lubes), East 02.07.1984 28 2796211.16 Company Secretary 07.02.1984 33 2410960.91 Plant Manager (Lubricants) 02.03.1987 23 2508591.53 Sr. Vice President (Project), BORL 13.08.1982 38 2724468.80 Sr.Manager, Highway Retailing-North 16.02.1987 23 2426115.91 DGM (Sales) Retail 17-10-1983 29 2891793.25 DGM (Engg.), Bdt, Noida 01-06-1981 30 2956584.48 Territory Manager (Retail), Bareilly 03.09.1991 19 2524816.23 GM (International Trade) 01-09-1982 31 2595574.92 Chief Manager Finance (Retail), HQ 27.05.1991 24 2592823.10 Ch Manager-U.P.T/F(Jvr) 16.08.1982 35 2429103.77 AMM, Chandigarh 01-09-1982 30 2406077.58 DGM ( RMP ) 08.10.1979 31 3020079.21 Senior Manager (Projects) 01.06.1989 21 3083298.91 DGM (Work Place Health & Safety), HSSE 01-09-1986 29 2515018.09 Sr Manager Process (DHDS Complex) 27.07.1981 29 2409531.04 Manager, IGIA T-2 18.07.1984 34 2489403.33 DGM (P&CS) 18.05.1981 29 2532809.18 Manager On Deputation To BORL 18.09.1978 34 2404113.44 Manager (Hindi Cell) - Noida 14-03-1983 35 2507576.23 Deputy Manager / Man 16.06.1993 17 2635306.69
Designation / Nature of Duties
Particulars of last employment Computronic Ind Macneil & Magor Dewanchand & Co Kaul & Associates G M Ballarpur Machinery Mfg C Central Railways New Customs Office Phinon Exports NPCC Ltd Delhi Tourisum DAV College National Organic The Printers HO Hindustan Insectcides Ltd. Postal Department CUSAT
Power Gas (I) P Ltd Western Railway TIFR ICB Pvt. Ltd. Mukund Iron & Steel Kirloskar Pnuematic M.M.M.Engg College Bajaj Auto Ltd Tamilnadu Electricity Board Indian Oil, Mathura Refinery
Exports India Ltd Mazagaon Dock Ltd Maharashtra State Ele. Board D&H Secheron Electrodes TRF Inderjit Proprietory Directorate of Agriculture IBP
Diners Club (I) Pvt. Ltd. Bank of India EIL EMD India Ltd. Gwalior Rayon Off.Of The Accountant General P Tandon & Co. EIL Hindustan Aluminium Kirloskar Pneumatics NHPC IOC Sudarshan Chemicals Madia Oil Co. Neyveli Lignite Corp.
Annual Report 2009-2010
73
Sr Name No. 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 Maheshwari S D Malik Deepak Malik Sudhir K Mallick P K Mallick Sudip Manchanda Rishi D Mandan B B Mane D K Manohar Rao N Manwatkar A G Marcus Jacob Mathukutty Cyriac Mathur D N Mathur J K Mathur S K Mathur S P Mazumdar Indrajit Mehra R K Mehta Ashok Meyyappan Soodamani Mishra Bibhudutta Misra Nagendra Misra Prithvi Bardhan Misra R Mittal M K Mohan M J (Capt) Mohan R Mohan Ram B Mohan S Menon Mohandas P Mohanlal A Mukerji Gautam Mukerji P K Mukherjee A Mukherjee S N Mukherjee Subhasis Murthy P L N Murugaiyan R Nagar S Nagarajan S Nagarajan V Naidu Theresa (Ms) Nair R R Nair Suresh K Namboodiri K P S Nandakumar E Nandakumar V Nandi A K Nangia M Narayanan C Narayanan K Narayanan K B Narayanan R Natarajan V Natekar R P Nayar Pushp Kumar Nedunchezhian M Neeliyath B Negi Chanda (Ms) Negi K B S Nigam Kamal Krishan Nikhilesh Ranjan Maitra Ninan C S Ombeer Oza J M Padmakar K Padmanabhan P Painter V K Pakrashi R Pal S K Panda R K Pandey U S Panjwani V Paranjape H S Parmar M S Patel A C Pathak Vikram
Qualification B.Com., ACA, B.Sc(Engg) B.Sc(Engg) B.Sc,M.S.W. B.Sc,B.Sc. P.G Diploma,M.Sc. B.Tech B.E,P.G Diploma B.E. B.Tech. M.B.A,B.Sc(Engg). B.Sc (Engg) P.G Diploma,B.Com B.Sc,M.Sc. B.Sc(Engg) B.Sc,B.E. B.Com,M.M.S B.Tech,Diploma B.A,B.Com. B.Com., ACA, M.A. M.A., L.L.B. M.Sc. B.Sc,M.Sc. B.Tech. B.Sc B.Sc. B.Sc,M.A. M.Tech. Dip.(Mgt),B.Sc,B.L,M.A B.E,M.Sc. M.Com. Diploma ,B.Sc(Engg) B.E. Diploma, AMIE B.Com,M.Com,AICWA,ACA B.E. B.E,L.L.B,M.B.A. Diploma in Engg,B.Sc. B.Sc. B.Sc,M.Sc. B.Com, ACA, B.Sc,L.L.B. B.Sc(Engg) Diploma in Mgt,B.Sc. B.Sc(Engg), M.B.A, B.E. ITI,Dip(Mgt) B.Sc,B.Sc. B.Sc(Engg) B.Sc(Engg), M.Tech. M.Sc. B.Sc. P.G Diploma,M.Sc. P.G Dipl.,AICWA,M.Com B.Sc,M.B.A. M.A Diploma in Engg. B.Sc,M.B.A. B.Sc,B.Tech Dipl. in Mgt, P Dipl.,M.Com. .G B.Com. M.Tech. B.Sc,B.E. B.Sc,M.B.A. B.Sc,M.A(PM&IR) B.Tech. Diploma ,B.E B.Sc. B.E. Diploma in Mgt,B.Sc. Diploma in Mgt,B.Sc,M.E. B.Tech. ACA,B.Com M.Sc. B.Sc,M.Sc. B.E,B.E.
Age 53 50 54 51 52 58 54 58 52 52 52 52 54 58 58 58 50 55 52 52 48 53 53 54 49 60 57 45 49 52 50 52 56 40 59 46 56 42 47 53 50 45 51 50 58 58 52 53 52 51 50 51 50 53 48 40 52 58 36 60 49 58 51 48 54 49 53 55 58 58 53 56 46 53 53 59 42
Date of Experience Total commencement of (No. of years) Remuneration employment Rs. DGM - Finance (E&P), HQ 06.02.1984 29 2922082.01 Chief Manager (Engg.) 04.02.1985 27 2668381.64 TM (Indl), Mumbai 20-05-1981 32 2589836.50 Chief Manager (HRS) South 05-05-1982 29 2584080.59 DGM Logistics (Retail), East 01-09-1982 29 2639879.23 DGM (HRD) 01-09-1982 32 2530707.79 Chief Manager (Vigilance), CO 01-05-1981 29 2495468.25 Head HSSE Entity 24-02-1978 35 2656943.54 DGM Ops. (MMBPL) 01-09-1982 28 2646943.26 Dy Manager Ops (VBPL), Vadinar 21.12.1990 19 2520358.00 Chief Manager (Advisory) 04.10.1984 26 2575998.15 Chief Manager (Energy & Environment) 02.11.1983 26 2415646.33 DGM (Coordination) 16-06-1980 33 2839780.73 Manager Dealer Selection Board 29-05-1980 36 2605409.70 GM (Ret.) North 23-02-1984 35 2995937.56 ED (Engg. & Projects) 21-08-1978 34 2757011.05 Chief Manager Business Dev (Indl), HQ 07-11-1983 26 2427280.95 ED (International Trade) 25-05-1981 36 2855100.73 Ch Manager (Coordination) NHAI 01-09-1982 31 2546688.58 Chief Manager (Taxation), CO 03-08-1987 27 2507351.91 National Model Manager SDCV, NR 02.03.1987 26 3053667.15 DGM (Special Duties) 29-04-1981 29 2888060.19 Deputy Manager Operations I/C (Retail) 18.05.1982 28 2472821.09 Marketing Manager - Aviation 27-05-1980 30 2852840.14 Procurement Leader (CPO), Grp-2 01.04.1985 25 2880946.77 Vice President (Admn. Coord. & Liaison) 28-04-1986 37 3130018.67 Chief Manager Marketing Co-Ord (LPG), West 01-02-1979 35 2735815.96 Senior Manager(R&P) 03.04.1990 20 2586787.56 Chief Manager (Shift Admn.) 03.12.1990 19 2731389.80 Sr Manager (Legal)South 12-04-1982 30 2402368.18 Chief Manager (Projects) 25.08.1984 26 2667738.62 Adviser (Mktg) 18-05-1981 29 2751320.10 Chief Manager Distribution, South 30-05-1980 33 2606417.52 Manager (CDU) 16.08.1994 16 2546006.33 Chief Manager Safety 06.08.1984 38 2538136.78 Sr Manager Finance [Retail], East 01.12.1989 24 2442245.96 Deputy General Manager (Maintenance) 19.09.1983 33 2513231.08 Dy Manager (Projects) 01.01.1992 18 2481379.89 Station Manager - Delhi AFS 30.05.1984 26 3256933.77 Manager Qlty. Assurance Lab (Lubes) 04-07-1984 33 2563341.12 In-Charge Bina Despatch Terminal, Bina 01-09-1982 28 2462587.67 Chief Finance Manager Incharge (I&C), HQ 18.10.1989 22 2505440.45 Deputy General Manager (HRS) West 04.03.1991 29 2777592.19 Chief Manager SCM (Lubes), Sewree 05.11.1984 27 2776321.33 DGM (Retail) 19-05-1980 35 2560196.53 ED (Kochi Refinery) 12.08.1983 27 3066877.56 Chief Manager(E&C) 01.08.1985 25 2554586.56 Manager Logistics (Lubricants) 18.08.1987 30 2659265.06 Sr.Mgr (Ben.Admin) - North 02.07.1984 29 2909568.48 Ch. Manager, Construction,I/C, BKPL, Kota 12.11.1984 29 3153064.58 Chief Manager(P&CS) 18.04.1985 25 2794837.31 GM (ERP - CC) 18-01-1982 28 2601162.26 Team Member (ERP CC) 10-01-1983 27 2660822.11 Chief Manager, Business Information, LPG CO 10-11-1980 29 2419794.47 GM (Corporate Treasury) 02.05.1985 26 2835944.78 Sr. Manager Reseller (Lubes) HQ 01.04.1991 19 2585071.88 Chief Manager Operations, South 14-03-1983 27 2490996.57 Sr Manager (LNG) 26-10-1981 38 2483658.24 Deputy Manager - Finance (Lubes), NR 05.08.1996 14 2507928.32 Deputy General Manager (Engg.) 25-04-1983 36 2527885.74 Deputy Manager (Finance) Retail North 26.04.1984 30 2409757.23 Manager Operations I/C (Retail) 23.08.1982 28 2490085.66 Chief Manager (Common) 14.09.1983 27 2951005.95 Sr. Manager 02.03.1987 23 2707946.93 DGM - Business Development (LPG) 01-09-1982 29 2686561.71 DGM Corporate HRS 02.07.1984 26 2704996.95 GM (Technical) 01.10.1981 28 2812482.36 Chief Manager (Vigilance) Refinery 30-12-1985 28 2509192.27 TM (Indl), Kolkata 02-06-1986 34 2599479.54 Chief Manager HSSE (Retail), East 18-01-1979 33 2457264.95 DGM Sales (Retail), West 01-09-1982 28 2496805.43 DGM (Business Development) 10-03-1978 34 2548890.25 Sr Manager (IT) 16.12.1987 22 2665645.59 DGM (Finance) 12-12-1983 30 2615995.66 Chief Manager NHAI Coordination, Delhi 19-05-1981 29 2543287.05 Manager Qlty.Assurance, P&AD (Lubes) Sewree 17-10-1977 33 2489076.15 Dy. Manager, (Fleet Sales) 03.09.1990 20 2466395.70
Designation / Nature of Duties
Particulars of last employment CGR & Associate Vijay Rewal Associates Lakshmi Precision Hukumchand Jute Mills Ltd Sansid Polbro Overseas Commun. Bajaj Auto Ltd Hind Organic Chemicals S.J.C.E. Bongaigaon Refinery Bombay Oxygen Co. All India Radio IBP Flow More Pvt. Indian Oil Corp. Dabur Y.R. Shetty & C Reserve Bank of India
Canara Bank ILAC Ltd Lubrizol India Ltd, Suraj Electricals Gwalior Rayons Indian Oil Corp. Usha Sewing Machine Madras Fertilizers Ponds India Ltd Rallies India Ltd. Hindustan Cable Mechelonic Engineers Indian P&T Department Bokaro Steel Plant Calcutta Ele. Supply Corpn. Ltd. Reliance Textiles ACC Ltd.
Kinetic Engg. Ltd. Mizoram Polytech Bharat Heavy Electricals Inalsa Pvt Ltd. Kurji Holy Family Hospital XLO India Ltd Engineers India Modi Industries W.B. State Electricity Board Krishna Water S Shaw Wallace Co
74
Bharat Petroleum Corporation Limited
Sr Name No. 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 533 534 Patke M S Paul George Paul Pradip Peethambaran T Pendse Shakuntala P (Ms) Pimpale Mb Pius Mathew Prabhakar N Prabhakaran M V Prabhakaran T S Prabhu Venkatesh Prabhune A C Pradeep Kumar T Prakash K Prakash Rao M S Prakash S Prasad Clemence Prasad K Panicker Prasad M George Prasad R N Prasad V S Pugazhendhi V Puri Rajiv Pushpendra R. Srinivasan Radhakrishna Pillai G Radhakrishnan M Radhakrishnan S Raghunathan P K Raj Mohan S Rajashekar K Rajeev Jaiswal Rajeeve B Rajeshirke Rs Ram Mohan Ram Singh Rama Prasad B V Ramachandran G (Ms) Ramachandran R Ramadorai N Ramakrishnan M S Ramakrishnan N. Raman V S Raman V V Ramanakumar A Ramanan J P S Ramaswamy Rajamani Ramesh S Rana Basudev Ranganath R Ranjan V Rao V N Raorane M R Raut N D Ravi K Ravi K Ravi K Ravi Kumar K P Ravi V Ravichandran J Ravindran C Ravindran C P Ravindran K N Ravitej P V Rayar S Reddy D M Reddy P S Rehil M C Riyazuddin K M Ronald Noronha Roy Bose Sumita (Ms) Roy Soumesh Sabu Jose Sabu Koshy Sagar Madhu (Ms) Saha S Saini D K
Qualification P.G Diploma,B.E. M.B.A,B.Sc(Engg) B.E. B.E. ACA,B.Com Diploma ,B.E. FCA,B.Com. M.Sc. Diploma ,B.A B.Sc(Engg). AICWA,FCA B.E. M.Sc,M.B.A. B.Tech. B.Sc,M.Sc. M.Sc,M.A.M. M.B.A,B.Com. M.B.A,B.Sc(Engg). P.G Diploma,B.A. B.E. B.Sc(Engg). B.E. Diploma, B.Sc,M.B.A P.G Diploma,M.Sc. B.Sc. B.Sc(Engg). B.Sc. P.G Diploma,B.Tech. B.Sc,B.Tech P.G Diploma B.E. B.Sc(Engg) M.Tech,M.B.A. B.Sc. M.Tech AICWA,ACS Diploma in Engg,B.E. Diploma ,B.Sc(Engg). B.Tech. B.Sc Diploma ,B.Sc. ACA,B.Com. B.E B.Com, ACA, ICWA B.Sc,MMM B.Sc,M.A ACA,ACS B.Sc. B.Sc(Engg) Diploma ,B.Sc. B.A,M.M.M. B.E. M.Sc B.Tech. Dipl. in Mgt,P.G Dipl. SSC, Diploma in Engg. B.E. Dip(Eng),PG Dip., AMIE P.G Diploma,B.Sc B.A,ACA B.E. B.A. B.Sc(Engg). B.Tech. B.E. B.A,M.L.S. Diploma in Mgt,M.Sc B.Sc,M.A. P.G Diploma, AICWA B.Tech,B.Sc. ACA,B.Com. Diploma in Mgt,M.A. B.E,M.B.A. M.B.A,B.Sc(Engg). Diploma ,M.A. B.E,Diploma in Engg. Diploma in Mgt,B.Sc.
Age 49 53 56 47 44 49 52 50 50 58 49 50 50 51 49 54 51 51 60 52 49 49 46 51 54 52 58 59 53 54 44 36 51 51 57 53 60 54 50 55 51 46 53 51 49 53 47 52 58 51 49 60 54 51 51 56 46 50 49 56 55 60 59 45 60 58 57 57 51 53 57 58 52 49 53 37 59
Designation / Nature of Duties Head OEM (Lubes), HQ GM (Sales) Retail HQ Manager Operations [Retail], East Area Marketing Manager, Chennai Sr. Finance Manager (Pricing & Insurance), CO Chief Manager (Estates & Admin) Chief Finance Manager Territory Manager (Retail) Mumbai Chief Manager (HRS) - North Director & Chief COO Chief Finance Manager (Shared Services), HQ Chief Process Manager (PP) Manager(Quality Control) Project Leader, Gummidipoondi Project Sr Mgr (IS Current & Transition Systems),CO Team Member-IIS-ERP Deputy Manager General Manager (Ops.) Chief Manager (HR) Entities Manager, Import Facilities, JNPT Sr.Manager Engineering (MMMMPL) Noida Chief Manager (Shift Admn) Sr.Manager Lubricants Channel (Retail) - Nr Sr. Manager (IIS Services) North Sr. Manager Logistics, LPG West DGM Sr Mgr. Business Devpt. (Beyond LPG) South Director ( Marketing ) TM (Indl) Chennai Chief Manager(P&CS) Sr Manager (CCR Project) Territory Manager (LPG) Chief Manager(Estate) Sr Ops Officer (S&B) Sr. Manager Highway Retailing, North ED (Finance) Special Duties (On Lien) Sr Manager Utilities Inspection DGM On Deputation To BORL GM On Special Assignment To BORL Chief Manager Compliance (Mktg. Corporate) Chief Manager (IIS Applications), Sewree Chief Finance Manager (CPO), Sewree Territory Manager, Trivandrum LPG DGM Finance (Mgmt. Accounts), CO Territory Manager (LPG) Sr Manager Distribution, South Executive Ass.To C&MD, Mumbai ED (Lubes) G.M.(Highway Retailing), RHQ G M Finance (Retail) HQ Coordinator Business Information (Avn) DGM Logistics LPG CO Manager (LPG) Chief Manager (Corrosion) DGM (Procurement & Contract Services) Manager (Manufacturing) Senior Manager (Maintenance) Manager (Maintenance) Sr Finance Manager, Retail HQ Executive Director (Refineries Finance) Chief Proj. Manager (RMP) Senior Manager (Projects) GM (Projects) Chief Manager (S&B) DGM (Project Technical) ED (I&C) Chief Manager (Supplies), Retail Logistics DGM Logistics (Retail) - North Sr Finance Mgr (IT) Chief Mgr. Pr&Brand Executive Director ( Audit ) DGM HR (LPG) - HQ Chief Manager (Maintenance) Senior Manager BORL DGM (ESE) CO Dy Manager Ops (Utilities) Ch. Manager Dealer Training - North
Date of Experience Total commencement of (No. of years) Remuneration employment Rs. 09.07.1984 27 2542538.98 23-11-1981 31 2573479.41 07-05-1980 31 2435511.80 01.01.1987 23 2433521.44 20.05.1991 21 2422062.43 17.08.1983 28 2592002.43 08.05.1987 23 2429217.37 01-09-1982 28 2679934.65 01-09-1982 28 2493183.85 01.10.1976 34 2585358.59 03-08-1987 26 2460878.42 03.12.1984 25 2706351.31 01.07.1984 26 2537024.87 20.08.1984 28 2560385.70 22-09-1986 26 3049187.39 01-09-1982 30 2747402.61 05.06.1987 23 2699848.27 11.10.1984 25 2840958.18 01.10.1979 30 2568938.90 05.11.1984 28 2611109.09 06.04.1987 23 2459303.74 01.08.1985 25 2442536.22 16.02.1987 24 2431292.16 01-11-1983 28 3431732.17 30-09-1981 29 2481452.86 14.09.1983 27 2660726.21 04-09-1978 35 2585405.99 15-07-1977 37 2828795.54 01-09-1982 30 2526415.20 02.11.1983 26 2589231.28 01.09.1989 21 2503666.32 17.06.1996 16 2417819.53 28.12.1983 26 2502635.02 16.04.1984 27 2493899.43 09-06-1980 34 2613455.01 19-12-1983 29 3727813.18 21.01.1987 38 2594171.18 01.04.1980 30 2694433.01 01.12.1983 26 3104350.99 28-04-1986 34 2456515.57 24-06-1980 30 2455664.62 16.10.1989 28 2690085.09 01.09.1982 28 2411555.75 16.04.1987 25 2415749.33 16.02.1987 26 2610996.06 10-01-1983 27 2546343.18 28-09-1987 24 2604764.36 09-06-1980 30 3068218.32 04-05-1983 35 2726114.76 26.08.1985 27 2702849.16 02.07.1984 26 2475545.00 06-06-1980 40 2648999.66 12.02.1979 31 2401366.96 01.01.1982 28 2520764.98 12.08.1983 29 2495202.73 01.04.1979 31 2526506.29 01.06.1989 21 2554870.85 17.08.1982 28 2771268.52 21-09-1983 29 2413730.10 03-09-1979 35 2974795.17 07.11.1985 24 2524907.00 17.10.1977 32 2537847.83 01.10.1976 34 2962210.76 16.12.1987 22 2501289.51 10.10.1983 26 4199025.31 14.07.1986 31 3052990.26 01-09-1982 31 2408185.70 07.05.1986 33 2484866.76 01-09-1982 28 2571573.07 08.01.1997 30 2761994.46 03-09-1979 38 2509685.82 17-07-1986 35 2724558.49 04.10.1984 26 2482680.81 21.12.1990 19 2654564.20 31-03-1983 32 2578832.82 16.08.1995 15 2573303.41 02-05-1980 36 3121487.88
Particulars of last employment Escorts Ltd Hindustan Paper Meteoke (I) Pvt Infin Consultants Maharashtra Water S S Board KSIDC, Trivandrum
Dodsal Pvt Ltd I.I.T., Madras IIPS, Deonar,Bo K.N.R. Kutty Toc H Public School Simplex Concret M.M. Bhagat & Co International Data Processing Ltd. Calico Mills L&T Southern Indl.Polymers Pvt. Ltd Usha Martin Ind Century Textile DST And SCRC Alloy Steel Plant Bharat Heavy Plant S.G. Phamaceuticals Jaysinth Dyeche Fraser & Ross Dalmia Dairy Kalyaniwalla & Mistry Bharat Pumps Price Water Hou National Dairy Ceat Tyres
Divisional Engg Fraser & Ram Dodsal Pvt. Ltd. Hindustan Insectides Fact Standard Batter Mcdowell & Co. Pharmed Pvt. Lt IOC Mookerjee Biswas HFC Ltd.Haldia Hindustan Paper Corpn. Indian Standard Crotech System
Annual Report 2009-2010
75
Sr Name No. 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 578 579 580 581 582 583 584 585 586 587 588 589 590 591 592 593 594 595 596 597 598 599 600 601 602 603 604 605 606 607 608 609 610 Saitu C Sakalker A K Saksena B P Samanta A B Sanzgiri Dipti (Ms.) Sanzgiri G M Sarangdhar A G Sarkar Samir Ranjan Sarnobat S Sasikala. I Saxena P K Seetharaman Mohan Sengottaiyan P Seshadri K V Seth A K Shah A R Shah J S Shankar Abhay Shankaran K S Shanmugam O Sharma Ashok Kumar Sharma Pramod Sharma R K Sharma Rajeev Sharma Rameshwar K Sharma S C Sharma Sharad Kant Sharma V B Shastri Padam Lal Shenoy K V Shinde R T Shingrut A R Shrivastava Sudhir K Shukla N Shunmugam S Shyam Radhey Siddhartha B R Sikdar Prabal Sikka Rajiv Simon George M T Singh Arun Kumar Singh Brij Pal Singh C P Singh Manmohan Singh R K Singh R P Singh Ravi Pratap Singh Satyapal Singh Shashi K Singh Shyam Nandan Singh Tejpal Singh V K Singhal R K Sinha Ashok Sinha Bijay Kumar Sivakumar K Sokhi J S Solanki Narendra Singh Somaiya K Soman C K Somanath T Somasekhar S Somasundaram R Somaya M M Sonawane V D Sreedevi B Sreekumar P N Srikanth S Srinivas Rao I Sriniva N G Sriramesh Kumar N Srivastava Anil Srivastava P C Subba Reddy Uppuluru V Subhash Chander Dua Subramanian H
Qualification
Age
Designation / Nature of Duties Chief Manager Lubes Channel (Retail) South Sr. Manager (Environment Projects), HSSE Mgr In-Charge-Kota Depot Sr. Manager (Int. Audit), Mumbai Refinery ED (HRD) Chief Maint. Manager (Planning) Mgr. (IS Refy Sys) Manager Quality Assurance Lab (Lubes) South Chief Product Despatches Manager Executive Director (Vigilance) Territory Manager(LPG), Loni Director (HR) Chief Manager(OM&S) ED (Mumbai Refinery) Chief Manager, (Coordination) Chief Manager (CCR Project) DGM (Talent Management) Sr. Mgr Engg (Instrumentation), Noida DGM ( Site Security ) Manager Ops, Devangonthi Depot Chief Manager Bus. Dev. (I&C), HQ GM (Coord) And Executive Assistant To C&Md Ch Maint Manager (Instr) Chief Manager Bus. Dev. (LPG) HQ. TC - Operations (LPG) Manager(Ops) I/C GM Sales ( LPG ) HQ Chief Manager, Pipeline Projects Manager Materials Co-Ord. (E&P), West GM (Retail) Southern Region Team Member (ERP CC), Sewree DGM HR (Compensation & Benefits) Sr Manager (IT) Sr.Manager Elect.(E&C) Sr Manager HSSE(LPG)South Manager Distribution - North AM (Indl) Nellore Sr Manager Mktg Coordn (Indl), Bhopal AMM (Retail), Orissa Chief Manager (Fire & Safety) Chief Procurement Officer GM (Operations) Retail Sr Manager Installaton, Mughalsarai Director (Commercial) - Indraprastha Gas Ltd. Director (Refineries) Manager Chief Engg. Manager, West Station Manager Jaipur AFS Sr. Manager (Mkt. Corp.), CO Retail Fleet Service Manager, North Sr Manager (ESE) - North Sr Ops Officer (Prod Desp) Sr. Mgr. Construction (Retail) - North C & MD Sr. Mgr., Infrastructure Planning & Devpt.- NR DGM Audit GM (Retail Initiatives) RHQ Manager Institutional Sales Chief Manager Transport (South) DGM GM - Talent Management Chief Manager (Indust.) AMM (Retail)-WB & NE DGM (Brand & PR) Chief Manager Distribution (Retail), West Senior Manager (Benefits & Admn.) Senior Manager (Info. Systems) TM (Retail) Chennai GM (LNG Marketing) CFM (Retail) South Sr Mgr Inst. Sales&Key Accounts (Lubes) Territory Manager (LPG) - Udaipur GM (Retail) West Mgr Mktg. Coord (Indl) Bangalore Manager Coco, BP-44, Gurgaon Dy Manager - LPG
B.Com,M.Com. 52 B.E. 55 B.E 52 B.E. 50 ACA,B.Com. 50 B.E. 50 Diploma in Mgt,B.Sc. 51 B.Sc,M.Sc,M.C.A. 51 B.E. 57 M.Sc., MBA 50 B.Sc,B.E,BDC 48 B.E,M.B.A. 59 P.G Diploma,B.E. 47 B.E. 59 M.Sc 60 B.E. 49 B.E,M.A. 49 B.Sc,M.Sc. 49 M.Sc,P.G Diploma 54 11th Std 52 B.E. 50 M.Sc. 52 NCTVT Certificate,B.Sc. 56 M.Sc. 52 B.E. 43 B.Sc,M.Sc. 53 Diploma in Mgt,B.Sc. 51 B.E. 53 B.A. 52 Diploma ,B.Sc 54 B.Sc. 45 B.Sc,M.L.W. 58 Diploma ,B.E. 47 Diploma ,B.E. 46 B.E,M.Tech 52 B.Sc,B.Pharm. 54 B.Sc. 55 B.Com. 49 B.Tech. 46 B.Sc(Engg). 55 B.Sc(Engg) 48 B.Sc(Engg),B.Sc (Honours) 55 B.Sc 54 B.Sc(Engg) 54 B.Tech. 57 B.Tech. 56 B.Sc. 49 B.E. 41 B.Sc,M.Sc. 47 M.Sc. 51 B.A. 57 M.Sc. 50 B.Sc(Engg) 53 P.G Diploma,B.Tech. 58 B.Sc,B.Sc(Engg) 57 AICWA,ACA,B.Com. 50 P.G Diploma,B.Tech. 57 M.Com. 50 B.Sc. 54 M.Tech,M.B.A. 53 B.Sc,M.Sc. 57 M.Tech,M.B.A. 52 B.Sc,M.B.A. 51 B.Sc. 51 M.Sc,B.Sc. 55 P.G Diploma,B.Sc,M.B.A. 58 P.G Diploma,M.B.A. 54 P.G Diploma,B.E. 45 Diploma in Mgt,M.Sc. 51 P.G Diploma,M.Com. 58 B.Sc,M.B.A. 49 B.E. 49 B.E,B.Com. 54 B.Sc. 49 P.G Diploma,B.A. 58 B.Com. 48
Date of Experience Total commencement of (No. of years) Remuneration employment Rs. 16-05-1983 29 2519224.34 01-03-1978 34 2745820.35 16.12.1985 28 2431230.66 02.09.1983 27 2412146.20 01-12-1983 27 3002719.86 01.12.1983 26 2468740.17 27.07.1981 29 2478621.56 19-09-1983 27 2548438.96 27.12.1976 33 2678429.69 03-02-2007 24 4207851.19 02.02.1987 23 2401573.90 03-01-1983 37 2460089.84 03.05.1989 21 2422882.78 12.12.1990 35 3076819.12 15-10-1982 38 2403046.01 13.12.1983 26 2440105.34 05.11.1984 27 2557179.41 01.01.1987 23 2479462.83 12-05-1981 30 2709721.93 13-05-1981 29 2506255.08 16.12.1985 26 2585703.57 18-01-1982 30 2999548.03 28.04.1980 32 2841535.57 10-01-1983 31 2650431.50 03.09.1990 20 2465680.49 01-09-1982 28 2482135.04 26-06-1980 30 2725612.35 01-09-1982 29 2559161.43 02.02.1988 31 2910085.91 01-09-1982 33 2697357.02 04.07.1988 24 2617249.73 04.11.1986 32 2770587.10 04.02.1985 27 2562303.21 28.10.1985 26 2473560.72 01-09-1982 28 2471481.89 02-05-1983 31 3135125.00 16-05-1983 27 2765804.00 01.01.1987 23 2576839.32 19.09.1988 22 2453137.24 01.08.1982 28 2434353.76 01.04.1985 25 2997175.75 15-02-1978 32 2697152.28 01-09-1982 33 2417830.76 15-02-1978 33 2659594.99 20.06.1978 34 3391094.69 03.06.1985 25 2656480.31 04.02.1985 25 2675979.00 23.12.1996 13 2436696.63 02.03.1987 23 2669566.76 06.04.1987 23 2836099.54 20-04-1981 29 2610667.93 24.11.1983 26 2611327.07 10-01-1983 31 2711276.93 01-08-1977 37 3278168.27 01-09-1982 31 2417911.08 31-07-1987 26 2714481.05 15-06-1981 32 2451805.27 01-06-1981 29 2877458.28 15-05-1981 32 2465547.67 14.09.1983 27 2980867.38 21-05-1980 30 2795900.17 01.12.1984 25 2572458.78 10-01-1983 28 2602319.39 09-03-1987 31 2738490.35 10-01-1983 33 2676837.63 06.07.1978 32 2776827.73 01.06.1979 31 2564244.11 16.02.1987 23 2427434.13 01-09-1982 28 2572884.66 19-06-1981 36 3159350.22 02.02.1987 23 2463901.30 02.03.1987 24 2414983.58 13-02-1978 32 2523114.50 01-09-1982 29 2452489.18 06-08-1982 34 2415770.33 18.03.1986 24 2402089.16
Particulars of last employment Sipcot Jyoti Ltd., Delhi Automobil Sarah S Engineer
ITSC, Additional Bench BHEL Aramco Karnatka Consumer Prod. Ltd. Gannon Dunkerle Gordon Woodroff Pvt. Ltd Texmaco Ltd. M.A.S. Services Taylor India LIC Central Bank of India Govt. Engg College Associated Cements Richardson Hindustan Charico Color Cards Deepak Fertilizers Gen.Electrodes Larsen & Toubro Swastik Pharma Central Water Commission
Delhi Telephone Leader Engg Works Hindalco PWD
NEI Ltd. International Comp. Pvt. Ltd. Tata Iron & Steeel Bharat Heavy Electricals Godrej & Boyce Cordite Factory Vikram Sarabhai Space Centre Indo National Ltd Mahindra & Mahindra Central Testing Maharani College
Ford, Rhodes Parles & Co. Indian Rayon Co Ravindra Enterprises Dainik Veer Prattap
76
Bharat Petroleum Corporation Limited
Sr Name No. 611 612 613 614 615 616 617 618 619 620 621 622 623 624 625 626 627 628 629 630 631 632 633 634 635 636 637 638 639 640 641 642 643 644 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 661 662 663 664 665 666 667 668 669 670 671 672 673 674 675 676 677 678 Subramanian K H Subramanniam S Subramoni Iyer M R Sundaram P L Sundaran V Sunderajan S S Sunil Chaudhary Suresh John Suresh P K Suresh V Sureshkumar K Swaminathan R Talwadkar N S Tandon G G Tandon S K Tandon V N Taneja M K Tankkar V S Teltumbde A B Thampi P K Thirunavukkarasu S Thomas Chacko Thomas J K Thomas Zachariah Thombare N M Thussu K L Tilwanker A Tipnis K U Tiwari B K Tomy Mathews Tripathi Y P Trivedi K A Tupe R B Unnikrishnan A Upadhyay U C Vaidya B N Vaidya P H Vairamohan M Varadarajan S Varghese P G Vartak V Y Vasantha Kumar P K Vasudev G (Dr) Vedagiri J Venkatesan K Venkatesan S P Venkateswaran S Iyer Venugopal T Venugopala Kurup V Verma A P Vijayagopal N Vijayakar P J Vijayakumar S Vijayan C S Viswanathan K Viswanathan M Viswanathan P S Visweswaran S R Vyawahare A D Wadhawan R Wadhwa V D Wankhede G S Warrier R E Watts L K Widhani Monica (Ms) Yadav H S Yash Pal Zafar Ali S
Qualification B.Sc,M.Sc. Diploma ,M.B.A B.Tech. B.Sc. B.A,M.B.A, Diploma ,B.Tech. B.E B.E,M.B.A. ACA,B.Com. B.E. M.A,B.Sc,M.A. B.Com SSC, NCTVT Certificate B.E,L.L.B. B.Sc,M.B.A. B.Sc,M.A. B.E Diploma in Mgt,B.Sc. BE,Ph.D,P.G Diploma B.Sc(Engg). B.E. M.B.A,B.Sc(Engg). M.A. B.Sc (Engg), Diploma B.Sc. B.E. B.E,MMM M.Sc. B.E,M.Tech,M.A. B.Tech. B.Com. Diploma in Mgt,M.Sc. B.Sc,B.E. B.Tech. P.G Diploma,M.Sc. M.Sc. B.Sc. Dipl. in Engg,P.G Dipl. ACA, AICWA. B.Sc(Engg). M.Sc. B.Sc,M.B.A. M.Sc,Ph.D. B.Tech,AICWA B.Com. P.G Diploma,M.A,M Phil. AICWA,B.Com. B.E. M.Tech. Diploma in Mgt,L.L.B,M.A ACA,B.Com. M.Sc. B.Sc,L.L.B. B.Sc,M.Sc. B.Sc(Engg). Diploma, B.Tech. M.Sc,Ph.D. B.Sc(Engg). Diploma ,B.Tech. B.E. NCTVT Certificate,B.A. B.E. B.Sc,L.L.B,BGL. B.A. B.Sc,ACA B.E,M.Tech M.Sc. B.Sc,M.A.
Age 57 56 46 49 56 51 51 47 54 48 59 52 55 58 55 54 46 54 60 52 47 58 55 57 60 59 55 54 60 55 55 50 54 52 51 56 57 54 54 53 50 54 59 49 52 52 56 41 51 48 49 52 53 53 49 59 56 50 42 51 49 56 59 50 51 59 59 59
Designation / Nature of Duties Regional Manager (Lubes) South Manager (Safety & FI) Chief Manager (Manufacturing) Sr Manager Cherlapalli Site Manager (Personnel) DGM On Deputation To BORL Manager On Deputation to CHT, Delhi Chief Manager (Shift) DGM Chief Process Tech Manager Manager Operations Chief Logistics Manager (Retail) South Dy Manager (LPG) DGM (Utilities) Manager (Audit) Chief Manager (Mktg Services) Project Leader - (Retail/LPG) E & P, North Sr. Manager Lubes Channel (Retail), West Managing Director - Petronet India Ltd DGM Manager DGM Territory Co-Ordinator, Ernakulam Advisor (Projects) At NRL Chief Manager (IIS Services) Director (Commercial), Mngl Sr. Manager Engg. (E&P), West Sr Manager (MOT) DGM (Occupational Health Safety) General Manager (Operations) Chief Manager -Sabarmati Gas Ltd Chief Manager (IT) Sr. Maint.Manager (Instr) DGM Chief Manager (HR) - Lubes Manager Qlty. Assurance Lab (Lubes), Sewree Manager Shift Ops-Mumbai Sr. Manager (Audit), Mumbai ED Corporate Finance Senior Manager (Advisory) Strategy Manager Ops.&HSSE (Lubes), Sewree Regional Facilitator, Bangalore DGM (QCC) Chief LPG Equipment Procurement Mgr, Sewree Sr Finance Manager (SS) South Dy Manager Tondiarpet Installation HRS-South Team Member (ERP) Manager (Design Engin.) DGM Sr Manager CSSC(SDCV) South Chief Finance Manager Chief Manager LPG Regional Co-Ordination, South General Manager (P&A) Chief Manager (QC) South Senior Manager Chief Manager (Energy & Enviromnent) Chief Manager (Research) Senior Manager(P&CS) Sr. Manager (Env Control) Ch Manager Inspection Manager Maint.(M&C) GM (Operations), MMPL Sr Manager (Refinery Co-Ord) KRL Sr.Manager(GuestRelations)-HRS(Admn)-North GM (Urban Retailing) DGM (City Gas Projects, Gujarat) E&P Noida Chief Mgr. (Aviation) - Operations Chief Manager (Liason) - Retail, Noida
Date of Experience Total commencement of (No. of years) Remuneration employment Rs. 10-01-1983 33 2635557.88 03.02.1992 18 2418691.80 03.05.1989 21 2993672.82 17.03.1987 23 2594909.69 30.08.1983 27 2520936.50 15.09.1983 28 2902630.05 20-10-1986 23 2706370.87 20.05.1989 21 2978382.16 21.05.1984 26 2733711.60 01.01.1986 26 2891832.13 16-05-1983 27 2484806.64 28-05-1980 30 2413311.54 20.06.1979 31 2421165.97 22.08.1988 22 2677188.12 25-05-1981 35 2672581.07 22-11-1982 27 2591610.68 02.03.1987 23 2410057.97 17.01.1979 34 2575392.62 11-04-1983 38 3180338.99 14.09.1983 27 2694625.24 09.01.1987 23 2427366.72 11.04.1983 27 2784401.25 14.03.1984 34 2885568.55 14.07.1983 32 2675500.56 04-06-1981 36 2509986.78 24.09.1985 38 2717620.94 01-09-1982 31 2540223.44 15.12.1983 29 2445326.58 27-06-1986 36 3197462.75 01.03.1979 31 2597413.26 08-06-1981 34 2602254.34 17-12-1981 29 2706423.19 19.05.1992 30 2575902.61 14.09.1983 27 2455697.86 02.07.1984 29 2703489.92 03.11.1982 32 2459554.92 05.03.1979 32 2611769.36 16.12.1985 33 2475378.83 26.12.1983 30 2814256.46 01.01.1991 19 2544075.33 23-07-1984 27 2609477.16 01-09-1982 28 2468288.45 11-05-1981 30 2640103.59 18.06.1984 26 2714018.83 04.09.1978 32 2451407.38 08-09-1982 28 2454001.50 01.02.1980 30 2677134.13 01.12.1993 16 2555303.88 04.10.1984 26 2655231.91 02.03.1987 23 2473490.06 16.03.1987 23 2757043.83 01-09-1982 30 2463768.26 16.02.1995 15 2845805.08 21-05-1980 30 2726725.51 20.05.1986 24 2612405.89 24.05.1982 28 2465172.18 19.04.2001 29 2450128.59 01.08.1985 25 2729404.31 17.09.1990 20 2510746.74 17.09.1984 30 2563647.41 06.09.1982 28 2535476.96 07-12-1982 34 2813482.43 05-10-1981 34 2631290.67 21-09-1987 31 2798049.58 02.05.1985 25 3264085.77 25-10-1982 36 2602285.76 02-05-1981 35 2631927.82 01.02.1991 38 2622100.23
Particulars of last employment Madras Telephones NTPC/SSTPS Rubber Board Dunlop
Saurashtra Chemicals
Feddels Loyal Corp Dempo Steamship Khandelwal Ferr. Alloys Cominco Binani Zinc Ltd. Union Carbide India Ltd. Union Carbide India Ltd. Indian Post & Telegraph Tata Consultancy Vijay Tanks & Vessels Pvt. Ltd. HPCL TELCO The Ahmd.Mfg & Calico Hindustan Organic Chemicals Sawrajay Sandes Universal Silic Sub Reg Emplyme Air India IAEC Boilers BRPL ILAC, Chemicals South India (A) Corpn. IIT
Grasim Industries
Chikkaiar Navekar College
CRBL Synthetics & Chemicals Ltd Shipping Corpn Office of The MAB/DCA(WR) Bank of Baroda Tata Consultancy All India Radio P & NG
Notes : 1. The remuneration includes, apart from regular salary, Company’s contribution to Provident & Pension Funds, medical expenses. 2. There is no employee who is in receipt of remuneration in excess of that drawn by Chairman & Managing Director / Whole-time Director / Manager and holds not less than 2% of the equity shares of the Company. 3. The above employees are not related to any Director.
Annual Report 2009-2010
77
78
ANNEXURE TO THE DIRECTORS’ REPORT ANNEXURE D
ANNUAL STATEMENT SHOWING THE REPRESENTATION OF SCHEDULED CASTES (SC), SCHEDULED TRIBES (ST) AND OTHER BACKWARD CLASSES (OBC) AS ON 1st JANUARY, 2010 AND NUMBER OF APPOINTMENTS MADE DURING THE CALENDAR YEAR 2009
NAME: BHARAT PETROLEUM CORPORATION LTD. Number of Employees (As on 1.1.2010) SCs 2 782 493 540 494 149 252 10 1 -204 356 54 5 2 28 6 187 224 ----269 413 173 31 11 22 22 74 143 -3 4 5 6 7 8 9 10 STs OBCs Total SCs STs OBC Total SCs 11 1 9 11 -By Direct Recruitment By Promotion STs 12 -2 1 -Total 13 2* 5+ 2@ -Number of appointments made during the calendar year 2009 By Other Methods SCs 14 ----STs 15 1 ---OBCs 16 -----
Bharat Petroleum Corporation Limited 55 2339 812 1249 237 30 3 4 --37 -13 -56 -239 -21 -3 -9 ---1
Groups
Total
1
Group-A
4781
Group-B
3427
Group-C
3319
Group-D (Excluding Safai Karamcharis)
2392
Group-D (Safai Karamcharis)
---
Total
13974
* 2 Sportspersons recruited in Management - Group 'A' (entry level)
+
2 Sportspersons recruited in Group 'B' & 3 Sportspersons promoted within Group 'B' (Non-Management)
@
2 Sportspersons promoted within Group 'C' (Non-Management)
ANNUAL STATEMENT SHOWING THE REPRESENTATION OF SCHEDULED CASTES (SC), SCHEDULED TRIBES (ST) AND OTHER BACKWARD CLASSES (OBC) IN VARIOUS GROUP 'A' SERVICES AS ON 1ST JANUARY, 2010 AND NUMBER OF APPOINTMENTS MADE IN THE SERVICE IN VARIOUS GRADES DURING THE CALENDAR YEAR 2009
NAME : BHARAT PETROLEUM CORPORATION LTD. Number of Appointments made during the calendar year 2009 By Direct Recruitment Total 6 171 2 173 31 11 22 1 22 30 11 22 22 1 1 7 8 9 10 11 SCs STs OBCs Total SCs STs 12 By Promotion By Other Methods Total 13 2* 2 SCs 14 STs 15 1 1
Pay Scales (in rupees) SCs 3 174 199 190 137 57 16 6 1 2 0 0 782 269 413 0 0 0 0 0 0 1 0 0 0 2 0 13 2 37 8 72 76 87 155 57 172 4 5 STs OBCs
Representation of SCs/STs/OBCs (As on 01.01.2010)
Total
1
2
24900-50500
1005
29100-54500
1225
32900-58000
1005
36600-62000
666
43200-66000
481
51300-73000
221
51300-73000
104
51300-73000
47
62000-80000
22
75000-100000
4
80000-125000
1
Annual Report 2009-2010
TOTAL
4781
* 2 Sportspersons recruited in Management - Group "A" (Entry level)
79
80
Direct Recruitment - 2009 No. of Vacancies Reserved OH 5 6 7 8 9 10 11 12 13 14 VH HH OH Total VH HH OH VH HH OH 15 No. of Appointments made No. of Vacancies Reserved PROMOTION - 2009 No. of Appointments made Total 16 VH 17 HH 18 OH 19 HH 4 2 4 7 6 19 159 2 2 3 237 30 10 1 2 35 1 54 1 69 25 2 2 2 173 22 74 143 239 1 1 1 1
ANNUAL STATEMENT SHOWING THE REPRESENTATION OF THE PERSONS WITH DISABILITIES AS ON 1ST JANUARY, 2010 AND DIRECT RECRUITMENT/PROMOTION DURING THE CALENDAR YEAR 2009
NAME : BHARAT PETROLEUM CORPORATION LTD.
GROUP
Number of Employees (As on 01.01.2010)
Bharat Petroleum Corporation Limited
TOTAL
VH
1
2
3
"A"
4781
4
"B"
3427
7
"C"
3319
14
"D/DS"
2447
6
TOTAL
13974
31
(i) VH stands for Visually Handicapped (persons suffering from blindness or low vision)
(ii) HH stands for Hearing Handicapped (persons suffering from hearing impairment)
(iii) OH stands for Orthopaedically Handicapped (persons suffering from locomotor disability or cerebral palsy)
There is no reservation for persons with disabilities in case of promotion to Group A and B posts. However, persons with disabilities can be promoted to such posts, provided the concerned post is identified suitable for persons with disabilities.
There are no promotions within Group "D".
ANNEXURE TO THE DIRECTORS’ REPORT ANNEXURE E ADDENDUM COMMENTS OF THE COMPTROLLER & AUDITOR GENERAL OF INDIA
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619 (4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF BHARAT PETROLEUM CORPORATION LIMITED FOR THE YEAR ENDED 31 MARCH, 2010 The preparation of financial statements of Bharat Petroleum Corporation Limited for the year ended 31 March, 2010 in accordance with the financial reporting framework prescribed under the Companies Act, 1956 is the responsibility of the management of the company. The statutory auditors appointed by the Comptroller and Auditor General of India under Section 619 (2) of the Companies Act, 1956 are responsible for expressing opinion on these financial statements under Section 227 of the Companies Act, 1956 based on independent audit in accordance with the auditing assurance standards prescribed by their professional body the Institute of Chartered Accountants of India. This is stated to have been done by them vide their Audit Report dated 27 May, 2010. I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under Section 619 (3) (b) of the Companies Act, 1956 of the financial statements of Bharat Petroleum Corporation Limited for the year ended 31 March, 2010. On the basis of my audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to Statutory Auditors’ report under Section 619 (4) of the Companies Act, 1956. For and on the behalf of the Comptroller and Auditor General of India Sd/SARIT JAFA Principal Director of Commercial Audit & ex-officio Member, Audit Board II, Mumbai Place : Mumbai Date : 25th June, 2010
Annual Report 2009-2010
81
PERFORMANCE PROFILE
2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-011999-00 1. Crude Oil Processed (000 Tonnes) Imported Indigenous TOTAL 2. Production Quantity (000 KL) Light Distillates % Middle Distillates % Heavy Ends % 3. Fuel and Loss as % of Crude Processed 4. Aromatics Production (MT) Benzene Toluene 5. Market Sales (MMT) 6. Lubricants Production (MT) 7. Market Participation % 8. Marketing Network Installations Depots Aviation Service Stations Total Tankages (Million KL) Retail Outlets LPG Bottling Plants LPG Distributors LPG Customers (No. Million) 9. Manpower (Nos.) 10. Sales and Earnings (Figures in Rs. Crores) i) Sales and Other Income * 127884 130118 113936 102428 82935 63343 52983 47584 42560 47153 35891 12 129 30 3.40 8692 49 2187 28.3 13900 12 120 23 3.33 8402 49 2117 26.6 14016 12 126 22 3.32 8251 48 2137 25.25 14006 12 121 21 3.27 7537 48 2129 23.51 13970 12 121 20 3.01 7332 45 2123 22.24 13876 12 123 19 3.05 6426 44 2061 21.32 12029 12 129 19 3.08 5530 42 1922 19.43 12434 17 153 19 3.13 4854 40 1828 16.99 12494 19 171 19 3.23 4711 40 1729 15.28 12586 19 164 19 2.94 4562 38 1421 13.80 19 146 19 2.88 4489 32 1345 11.40 57742 23265 27.70 79653 28375 27.16 88313 103585 26336 25.79 39544 23.45 61335 43051 21.63 44243 10042 21.03 43178 12759 20.37 69798 20013 19.86 56360 16610 19.15 99875 21.5 75293 76351 16344 19569 19.35 18.68 14126 6281 20407 24449 32.80 52.88 14.32 5.9 13143 6802 19945 22820 30.46 53.67 15.87 6.6 13904 7042 20946 23960 30.73 54.13 15.14 6.6 13465 6317 19782 22154 28.20 53.55 18.25 6.6 11584 5653 17,237 19795 31.97 50.43 17.60 6.7 5093 4045 9138 10314 31.35 49.89 18.76 5.9 4543 4214 8757 10210 33.27 49.13 17.60 5.7 3230 5481 8711 10291 34.32 50.73 14.95 5.6 3587 5183 8770 10355 33.51 50.45 16.04 5.6 2743 5919 8662 2546 6323 8869
10348 10643 34.74 49.43 15.83 5.4 32.69 53.45 13.86 4.9
209301 151788 161957 116337 100461 106287 101245 112730 22.38 22.7 22.7 22.6 22.4 21.9 22.1 22.0
96624 100396 21.4 20.7
12670 12638
ii) Gross Profit before Depreciation, Interest & Tax iii) Depreciation iv) Interest v) Profit before Tax vi) Tax vii) Excess / (Short) provision for Taxation in earlier years written back/provided for viii) Profit after Tax # 4619 1242 1011 2366 824 (4) 1538 4246 1076 2166 1004 261 (7) 736 4368 1098 673 2597 1010 (7) 1581 4204 904 533 2768 955 (7) 1806 1423 768 247 407 117 1 292 2092 596 140 1356 427 37 966 3302 561 105 2636 928 (13) 1695 2720 481 246 1994 728 (15) 1250 2114 481 307 1327 491 14 850 2033 665 256 1113 293 13 833 1738 615 185 937 233 (2) 702
* Figures from 1986-87 includes Sales to Other Oil Companies. # After adjusting prior period tax.
82
Bharat Petroleum Corporation Limited
1998-99 1997-981996-971995-961994-951993-94 1992-93 1991-921990-911989-901988-89 1987-881986-871985-861984-851980-81
1976
1731 7205 8936 10861 34.85 53.90 11.25 4.5
1222 6720 7942 9648 34.47 54.29 11.24 4.8
1486 6108 7594 8986 32.54 55.23 12.23 4.8
1110 6240 7350 8816 33.27 54.74 11.99 5.6
1891 5491 7382 8788 32.29 54.62 13.09 5.4
2610 4596 7206 8644 31.20 53.59 15.21 4.7
2685 4550 7235 8653 31.49 53.88 14.63 4.2
2062 4900 6962 8372 32.29 54.95 12.76 4.2
1397 5514 6911 8329 30.87 55.70 13.43 4.5
1008 6024 7032 8525 31.09 57.07 11.84 4.5
623 5535 6158 7367 29.29 60.12 10.59 5.6
1204 5352 6556 7858 27.83 59.38 12.79 5.6
105 5467 5572 6667 27.78 60.39 11.83 5.8
67 6311 6378 7574 28.08 59.35 12.57 6.2
175 5279 5454 6619 25.75 54.36 19.89 4.5
1268 3603 4871 5769 22.22 55.66 22.12 4.9
3596 159 3755 4312 19.97 55.93 24.10 5.7
70496 57169 81533 60575 16990 18664 20689 17.50 16.37 15.76
57511 22037 56612 69564 68426 56499 59624 45928 18603 7047 12.10 11070 11.41 9048 10877 10.71 10.38 8843 10.18 7494 9.31 8414 8.56 4948 7.93
20112 4455 7.57
7.05
5.29
3.63
13182 13437 14.78 13.23
102684 86951 69164 67876 66681 20.6 20.5 20.4 20.3 20.2
74154 82911 95091 87459 94672 92725 84691 74763 20.0 19.5 18.8 18.9 18.9 18.7 18.5 18.3
72414 69425 60813 40939 18.7 18.3 17.2 15.3
16 131 16 2.72 4423 27 1200 9.11
16 128 15 2.3 4407 21 1179 8.03
16 131 16 1.81 4373 19 1146 6.93
16 122 16 1.62 4312 18 1062 6.02
16 118 16 1.57 4214 16 948 5.37
16 117 14 1.52 4090 16 866 4.78
14 98 14 1.37 4040 15 816 4.35 11167
12 94 13 1.17 4005 15 793 4.05
10 83 13 1.01 3965 15 767 3.77
10 78 13 0.91 3894 15 740 3.61
10 69 12 0.87 3822 14 704 3.31
9 69 11 0.74 3741 8 651 3.03
9 65 9 0.75 3663 4 616 2.70 9397
8 62 8 0.67 3567 2 518 2.32 8321
8 60 8 0.66 3486 2 409 1.96 7894
7 57 3 0.66 3311 154 0.59 5808
5 61 2 0.61 3183 90 0.49 4847
12264 12094 11704 11499
11207 11299
11158 11029 10616 10578 10203
25830 20919 18156 15023 13386
11520 10235
8883
7395
6082
5476
5080
4488
3165
2664
1512
673
1557 404 175 978 277 5 706
1214 382 112 720 187 (11) 521
977 226 82 670 237 (25) 408
910 218 39 653 267 386
762 260 44 458 169 3 292
546 137 47 362 147 2 218
474 143 38 292 122 170
403 103 44 256 107 149
349 96 37 216 88 128
301 103 31 167 44 123
242 79 33 130 26 104
190 64 34 93 15 78
184 82 34 69 8 60
177 78 31 69 8 61
93 53 19 21 7 14
39 13 4 23 13 10
10 2 2 6 4 2
Annual Report 2009-2010
83
PERFORMANCE PROFILE — (CONTD.)
2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-011999-00 11. What the Company Owned (Rs. Crores) i) Gross Fixed Assets (including Capital Work-in-Progress) 27930 16187 19954 24560 14003 20536 22268 12735 15445 20310 11833 10652 18545 11086 7783 14017 8349 2890 12566 7454 1908 10935 6366 2414 9722 5602 2943 8824 5166 3071 7630 4592 1496
ii) Net Fixed Assets (including Capital Work-in-Progress) iii) Net Current Assets (including Investments and Advance for Investments) Total Assets Net (ii + iii) 12. What the Company Owed (Rs. Crores) i) Share Capital
36141
34539
28180
22485
18869
11239
9362
8780
8545
8237
6088
362 12725 13087 22195 859 36141 1,897 10085 10301
362 11766 12128 21172 1239 34539 1282 10447 6567
362 11315 11677 15022 1481 28180 2636 8024 7440
362 9912 10273 10829 1383 22485 2218 7955 5585
362 8778 9139 8374 1356 18869 1061 4781 4287
300 6088 6388 3882 969 11239 1282 4877 1945
300 5550 5850 2690 822 9362 1740 5774 1320
300 4447 4747 3286 747 8780 1276 5203 1191
300 3697 3997 3849 699 8545 1100 4372 655
300 3779 4079 4158 8237 1231 4145 870
150 3345 3495 2593 6088 1089 3693 573
ii) Reserves and Surplus iii) Net Worth ( i +ii ) iv) Borrowings v) Deferred Tax Liability (net) Total Funds Employed (iii + iv + v) 13. Internal Generation (Rs. Crores) 14. Value Added (Rs. Crores) 15. Earnings in Foreign Exchange (Rs. Crores) 16. Ratios i) Gross Profit before Depreciation, Interest & Tax as % age of Sales and Other Income
3.5 12.2 425.3
2.9 6.2 203.6
3.5 14.4 437.2
3.9 18.6 499.4
1.7 3.2 80.7
3.3 15.8 321.9
6.1 32.0 564.9
5.6 28.6 416.7
5.3 21.0 283.3
4.4 22.0 277.5
5.2 21.5 467.8
ii) Profit after Tax as % age of average Net Worth iii) Profit after Tax as % age of Share Capital iv) Average Net Worth as % age of Share Capital v) Gross Profit before Depreciation, Interest & Tax as % age of Capital Employed vi) Profit before Tax as % age of Capital Employed vii) Profit After Tax as % age of Capital Employed (ROCE) viii) Debt Equity Ratio 17. Earnings per Share (Rupees)# 18. Book Value per Share (Rupees)
3487.1 3292.4 3036.0 2685.0 2527.8 2039.7 1766.2
1457.5 1346.1
1262.4 2172.2
13.7 7.0 4.6 1.70 42.53
13.1 3.1 2.3 1.75 20.36
15.9 9.5 5.8 1.29 43.72
19.4 12.8 8.3 1.05 49.94
8.0 2.3 1.6 0.92 8.07
21.2 13.7 9.8 0.61 32.19
41.5 33.1 21.3 0.46 56.49
34.8 25.5 16.0 0.69 41.67
26.1 16.4 10.5 0.96 28.33
26.7 14.6 10.9 1.02 27.76*
31.1 16.8 12.5 0.7 46.78
361.97 335.48 323.01 284.19 252.79 212.95 194.99 158.25 133.25135.98 @ 232.98
# After adjusting prior period tax * Issue of Bonus Shares in the ratio 1:1. ** Issue of Bonus Shares in the ratio 2:1. @ On Post-Bonus Capital Note : The figures for the years 2005-06 and onwards are merged figures including estwhile KRL.
84
Bharat Petroleum Corporation Limited
1998-99 1997-981996-971995-961994-951993-94 1992-93 1991-921990-911989-901988-89 1987-881986-871985-861984-851980-81
1976
6223 3789 900
5046 3005 983
3949 2276 1170
3250 1794 462
2791 1546 258
2369 1374 184
2057 1193 84
1753 1024 124
1523 894 114
1325 787 80
1122 683 31
955 599 14
752 428 90
601 360 109
495 329 58
96 47 87
46 23 26
4689
3988
3446
2256
1804
1558
1277
1148
1008
867
714
613
518
469
387
134
49
150 2872 3022 1667 4689 899 3002 299
150 2374 2524 1464 3988 823 2445 357
150 1935 2085 1361 3446 578 2077 417
150 1582 1732 524 2256 554 1956 361
150 1246 1396 408 1804 503 1562 272
50 1102 1152 406 1558 338 926 236
50 901 951 326 1277 297 889 204
50 748 798 350 1148 237 786 160
50 614 664 344 1008 214 682 197
50 496 546 321 867 215 481 136
28 406 433 281 714 186 499 120
28 307 335 278 613 136 387 110
28 206 234 284 518 143 341 116
28 150 178 291 469 135 292 103
17 104 120 267 387 65 224 88
15 50 64 70 134 21 101 1
15 19 34 15 49 3 28 2
7.1 25.5 470.7
10.1 22.6 347.6
9.1 21.4 271.7
9.6 24.7 257.2
9.3 22.9 194.8
8.4 20.7 435.1
7.8 19.5 340.1
7.0 20.3 296.9
6.6 21.1 255.6
6.1 25.0 245.1
5.5 28.4 391.7
4.7 26.7 273.0
5.2 29.3 216.7 738.9
7.5 41.2 220.2 534.3
4.3 12.1 83.3 689.8
3.2 17.4 71.8 412.4
1.8 6.7 11.5 170.9
1848.5 1536.2 1272.2 1042.4
849.2 2103.1 1748.5 1461.5 1210.2
979.8 1379.7 1021.5
38.5 24.2 17.4 0.6 47.07
34.0 20.1 14.6 0.6 34.76
33.0 22.6 13.8 0.7 27.17
45.9 33.0 19.5 0.3
50.6 30.4 19.4 0.3
43.1 28.6 17.2 0.4 43.51
47.8 29.5 17.2 0.3 34.02
44.1 28.0 16.3 0.4 29.69
46.5 28.7 17.0 0.5 25.56
45.5 25.2 18.5 0.6 24.51
44.3 23.8 19.9 0.6 37.45
48.4 23.7 19.4 0.8 28.01
51.1 19.0 16.7 1.2 21.71 84.04
49.0 19.0 16.9 1.6 22.01 63.74
37.5 8.4 5.6 2.2 6.07 52.23
33.5 19.7 8.9 1.1 4.68 27.97
21.8 12.6 3.5 0.4 0.72 14.56
25.72 19.48**
201.45 168.25 139.00 115.45 93.04 @ 230.42 190.21 159.49 132.80 109.24 155.69 120.23
Annual Report 2009-2010
85
SOURCES AND APPLICATION OF FUNDS
2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99
SOURCES OF FUNDS OWN Profit after Tax* Capital Grants received/ (Reversed) (Net of amortisation) Adjustment on account of Transitional Provisions Depreciation Investment Shareholders' Investment Deferred Tax Provision BORROWINGS Loans (net) LPG Deposits Decrease in Working Capital Adjustment on account of Deletion/ Re-classification, etc. 1,024 411 16 6,149 237 2,432 38 4,193 232 38 7,218 2,456 154 1,382 4 6,884 3,715 150 7 5,040 1,192 170 17 3,388 238 138 3 2,841 183 114 6 2,312 198 862 6 2,496 1,565 385 14 3,443 925 345 3 2,614 203 168 2 1,994 1,538 1,247 4,577 (380) 736 1,084 (242) 1,581 (36) 1,099 111 1,806 (1) 1,056 27 292 3 771 102 966 596 300 147 1,695 562 129 76 1,250 478 233 48 850 483 97 833 646 702 616 23 706 401 514 -
8,433 10,434
APPLICATION OF FUNDS Capital Expenditure Dividend Tax on distributed profits Repayment of Loans (net) Investment Increase in Working Capital 3,447 506 73 4,407 2,389 253 32 7,760 2,039 145 9 2,023 3,002 7,218 1,808 579 92 4,405 6,884 2,009 90 13 2,788 140 5,040 1,509 375 52 1,452 3,388 1,653 525 67 596 2,841 1,249 450 50 563 2,312 924 330 310 932 2,496 1,235 225 23 864 1,096 3,443 1,422 188 41 963 2,614 1,186 188 21 599 1,994
8,433 10,434 *After adjusting prior period tax
Note: The figures for the years 2005-06 and onwards are merged figures including erstwhile KRL.
86
Bharat Petroleum Corporation Limited
1997-98 1996-97 1995-96 1994-95 1993-94 1992-93 1991-92 1990-91 1989-90 1988-89 1987-88 1986-87 1985-86 1984-85 1980-81
1976
(Rs. Crores)
521 384 -
408 225 -
386 218 76 -
292 260 -
218 136 -
170 143 -
149 103 -
128 96 -
123 103 -
104 87 -
78 63 -
60 86 -
61 77 -
14 53 -
10 13 -
2 2 17 -
104 247 774 3 2,033
836 120 2 1,591
117 97 5 899
2 79 4 637
80 52 1 487
26 54 4 397
6 37 1 296
22 18 264
40 28 3 297
3 21 2 217
22 55 1 219
28 174
24 33 3 198
75 26 168
62 1 86
12 1 (8) 26
1,115 75 8 835 2,033
709 49 5 79 749 1,591
472 49 378 899
435 49 92 61 637
319 16 72 80 487
316 17 25 39 397
234 15 7 40 296
203 10 27 24 264
210 10 2 75 297
173 6 1 37 217
207 6 6 219
154 4 7 9 174
110 4 84 198
154 2 1 11 168
23 2 61 86
2 2 22 26
Annual Report 2009-2010
87
SALES VOLUME ('000 MT)
2009-10 Sales Market Share (%) Light Distillates : Naphtha LPG (Bulk & Packed) Motor Spirit Special Boiling Point Spirit/ Hexane Benzene Toluene Polypropylene Feedstock Regassified - LNG Others Sub Total Middle Distillates : Aviation Turbine Fuel Superior Kerosene Oil High Speed Diesel Light Diesel Oil Mineral Turpentine Oil Others Sub Total Others : Furnace Oil Low Sulphur Heavy Stock Bitumen Lubricants Others Sub Total Grand Total 1,450 447 627 231 64 2,819 27,700 22.67 18.7 18.0 14.4 18.7 14.9 1,644 591 680 203 76 3,194 27,159 22.62 21.1 18.6 15.0 20.1 16.6 1,745 600 653 232 80 3,310 25,786 22.66 21.6 18.5 14.6 20.5 1,923 585 490 133 77 3,208 23,452 22.63 23.6 17.5 12.8 14.6 1,944 753 480 116 54 3,347 21,630 22.37 23.7 19.3 13.8 13.0 16,035 15,308 14,287 12,671 11,137 925 1,646 13,298 59 107 20.3 17.2 24.2 12.8 56.5 917 1,599 12,630 78 84 21.0 16.8 24.6 14.2 53.2 959 1,637 11,482 107 102 21.1 17.0 24.7 16.1 55.1 880 1,643 9,922 113 113 21.9 17.1 24.4 15.7 59.9 680 1,626 8,551 156 124 20.6 16.9 23.5 18.7 61.9 897 3,236 3,575 39 60 24 71 710 234 8,846 28.9 25.9 28.4 34.9 84.3 97.9 1,129 3,033 3,229 34 73 27 62 866 204 8,657 20.6 26.2 28.9 29.5 88.3 97.4 1,022 2,933 2,914 32 87 27 62 905 207 8,189 20.8 26.4 29.5 26.6 87.4 91.0 1,136 2,734 2,635 35 101 40 46 679 167 7,573 22.2 26.3 29.9 27.2 98.5 89.4 1,307 2,586 2,475 36 59 44 38 479 122 7,146 25.4 26.1 30.0 17.5 88.5 92.6 2008-09 Sales Market Share (%) 2007-08 Sales Market Share (%) 2006-07 Sales Market Share (%) 2005-06 Sales Market Share (%)
Note 1: Market Share is based on Sales Volumes of Public Sector Oil Companies. Note 2: The figures for the years 2005-06 and onwards are merged figures including erstwhile KRL.
88
Bharat Petroleum Corporation Limited
PRODUCTION ('000 MT)
2009-10 Light Distillates : Naphtha LPG Motor Spirit Special Boiling Point Spirit/Hexane Benzene Toluene Polypropylene Feedstock/ Propylene Others Sub Total Middle Distillates: Aviation Turbine Fuel Superior Kerosene Oil High Speed Diesel Light Diesel Oil Mineral Turpentine Oil Lube Oil Base Stock Sub Total Heavy Ends : Furnace Oil Low Sulphur Heavy Stock Sulphur Bitumen Others Sub Total Grand Total 2263 431 65 578 3337 19199 2254 593 78 661 15 3600 18629 2360 574 81 622 11 3648 19570 3993 18472 3402 16084 2871 569 71 481 2209 706 48 439 1062 1235 7816 58 110 185 10466 981 996 7805 84 84 155 10104 984 1403 7960 109 98 154 10708 706 1745 6939 151 115 105 9762 536 1551 5785 165 128 0 8165 2262 873 2069 39 57 23 72 1 5396 1821 818 2081 33 80 28 62 1 4924 2057 890 2054 33 88 26 63 3 5214 1810 822 1856 37 104 40 46 3 4718 1957 739 1632 44 61 43 38 3 4517 2008-09 2007-08 2006-07 2005-06
Lubricants Production (MT)
2009-10 209301 2008-09 151788 2007-08 161957 2006-07 116337 2005-06 100461
Quantity of LPG Filled in Cylinders (MT)
2009-10 2946073 2008-09 2760136 2007-08 2657199 2006-07 2468571 2005-06 2349675
Note: The figures for the years 2005-06 and onwards are merged figures including erstwhile KRL.
Annual Report 2009-2010
89
HOW VALUE IS GENERATED
Rs. Crores 2009-10 Value of Production (Refinery) Less : Direct Materials Consumed Added Value Marketing Operations Value added by Manufacturing & Trading Operations Add : Other Income and prior period items 55,153 (50,825) 4,328 5,453 9,781 2,185 11,966 2008-09 63,982 (53,893) 10,089 116 10,205 1,495 11,700
Total Value Generated
HOW VALUE IS DISTRIBUTED
2009-10 1. OPERATIONS Operating & Service Costs 2. EMPLOYEES' BENEFITS Salaries, Wages & Bonus Other Benefits 3. PROVIDERS OF CAPITAL Interest on Borrowings Dividend 4. INCOME TAX 5. RE-INVESTMENT IN BUSINESS Depreciation Deferred Tax Retained Profit 1,242 (303) 959 1,898 1,076 (242) 451 1,011 579 1,590 828 2,166 285 1,606 535 2,141 1,026 859 5,509
Rs. Crores 2008-09
5,811
1,885
2,451 268
1,285
Total Value Distributed
11,966
11,700
90
Bharat Petroleum Corporation Limited
AUDITORS’ REPORT TO THE MEMBERS OF BHARAT PETROLEUM CORPORATION LIMITED
1. We have audited the attached Balance Sheet of BHARAT PETROLEUM CORPORATION LIMITED as at 31st March 2010 and the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Auditing & Assurance Standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Companies (Auditor’s Report) Order, 2003 (‘the Order’), issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. Further to our comments in the Annexure referred to in paragraph (3) above, we report that: a) b) c) d) e) f) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of the books. The Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of account. In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement comply with the Accounting Standards referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956. Disclosure in terms of clause (g) of Sub-Section (1) of Section 274 of the Companies Act, 1956 is not required as per Notification No. GSR 829(E) dated October 21, 2003 issued by the Department of Company Affairs. Without qualifying our opinion, we invite attention to: i) Note No. 9 of Schedule X – Notes to Accounts, regarding impairment of assets wherein, being technical matters subject to uncertainty we have relied on the estimates and assumptions made by the Company in arriving at recoverable value of assets, based on desired margins. Recovery of overdue amount of Rs. 278.54 crores from a party in whose case arbitration award has been passed and consent terms agreed between the parties have been filed with the Honourable Bombay High Court. We have relied on the Company’s representation that the dues are recoverable as per consent terms and hence no provision is considered necessary.
2.
3.
4.
ii)
g)
In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the notes thereon give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i) ii) iii) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010; in the case of the Profit and Loss Account, of the profit for the year ended on that date; and in the case of Cash Flow Statement, of the cash flows for the year ended on that date. For and on behalf of K.VARGHESE & CO. FR No:004525S Sd/K.Varghese Partner Membership No: 20674
For and on behalf of B.K.KHARE & CO. FR No: 105102W Sd/Padmini Khare Kaicker Partner Membership No: 44784 Place : Mumbai Dated : May 27, 2010
Annual Report 2009-2010
91
ANNEXURE TO THE AUDITORS’ REPORT
Referred to in Paragraph (3) of our report of even date on the accounts of BHARAT PETROLEUM CORPORATION LIMITED for the year ended 31st March 2010. (i) In respect of fixed assets a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets except in respect of items like pipes, valves, meters, instruments and other similar items peculiar to a continuous process plants. b) The Company has carried out physical verification of fixed assets, other than LPG cylinders with customers, in accordance with the verification programme and the frequency of verification is reasonable. According to information and explanations given to us, no material discrepancies have been reported on such verification. c) In our opinion, the disposals of fixed assets during the year are not of a significant value so as to affect the going concern assumption. (ii) In respect of inventories: a) The inventories of finished goods, stores, spares parts and raw materials, except those lying with third parties and in transit, have been verified by the management at reasonable intervals. In respect of inventories lying with third parties, these have been confirmed by them and the inventory in transit has been verified with subsequent receipts. b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management were generally reasonable and adequate in relation to the size of the company and the nature of its business. c) In our opinion and according to the information and explanations given to us, the company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification as compared to the records of inventories. (iii) Based on the audit procedures applied by us and according to the information and explanations given to us, the company has not granted or taken any loans, secured or unsecured to / from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Therefore, the provisions of Sub-clause (b) to (d), (f) and (g) of sub-para (iii) of para 4 of the Order are not applicable. (iv) In our opinion and according to the information and explanations given to us, having regard to the explanation that some of the items purchased are of a special nature and suitable alternative sources do not exist for obtaining comparable quotations, there is an adequate internal control procedure commensurate with the size of the Company and the nature of its business, for the purchase of inventories and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in the internal control system.
92
Bharat Petroleum Corporation Limited
(v)
In respect of transactions entered in the register maintained under Section 301 of the Companies Act, 1956: a) In our opinion and according to the information and explanation given to us, there were no transactions exceeding the value of Rs. five lakhs in case of any party that need to be entered in the Register maintained in pursuance of Section 301 of the Companies Act, 1956. b) As there are no transactions exceeding the value of Rs. five lakhs in case of any party that need to be entered in the Register maintained pursuant to Section 301 of the Companies Act, 1956, sub-clause (b) of sub-para (v) of Para 4 of the Order regarding reasonability of price at which such transactions have been entered is not applicable.
(vi)
In our opinion and according to the information and explanation given to us, the company has complied with the directives issued by the Reserve Bank of India, the provision of Section 58A and 58AA of the Companies Act, 1956 and the rules framed thereunder.
(vii) In our opinion, the company has an adequate internal audit system commensurate with the size and the nature of its business. (viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed records have been kept and maintained. We have not made a detailed examination of these records. (ix) According to the information and explanations given to us, in respect of statutory and other dues: a) According to the records of the Company, the company has been generally regular in depositing undisputed statutory dues including Provident fund, Investor Education and Protection Fund, Employees’ State Insurance Fund, Income tax, Sales tax, Wealth tax, Service tax, Custom duty, Excise duty, cess and any other statutory dues, with appropriate authorities during the year. According to the information and explanations given to us, no undisputed amounts payable in respect of Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty and Excise Duty were outstanding, at the year end for a period of more than six months from the date they became payable. b) The details of disputed dues of sales tax, income tax, customs duty, wealth tax, service tax, excise duty, cess, which have not been deposited, are given in Annexure I. (x) The company does not have any accumulated losses at the end of the financial year. The Company has not incurred any cash losses during the financial year covered by our audit and in the immediately preceding financial year. (xi) According to the information and explanations given to us and based on the documents and records produced before us, the Company has not defaulted in repayment of dues to Financial Institutions / Banks. (xii) According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares and other securities. Annual Report 2009-2010
93
(xiii) In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi/ mutual benefit fund/ societies. (xiv) (a) The Company does not deal or trade in shares, securities, debentures and other investments. (b) The shares, securities, debentures and other investments are held by the Company in its own name except to the extent of the exemption granted under Section 49 of the Companies Act, 1956. (xv) The Company has given guarantees for loans taken by others from banks or financial institutions, aggregating to Rs. 887.43 crore where the terms and conditions, according to the information and explanations given to us, and in our opinion, are not prima facie prejudicial to the interests of the Company. (xvi) In our opinion, the term loans obtained during the year, prima facie, have been applied for the purpose for which the loans were raised. (xvii) According to the information and explanations given to us, based on an overall examination of the Balance Sheet and Cash Flows of the Company, we report that the Company has not utilized funds raised on short-term basis for long-term investment. (xviii) The Company has not made any preferential allotment of shares to parties covered in the register maintained under Section 301 of the Companies Act, 1956. (xix) The Company has created security / charge on the debentures issued during the year. (xx) The Company has not raised any money through a public issue during the year. (xxi) As presented to us by the management and based on our examination in the normal course of audit, no material frauds on or by the Company have been noticed or reported during the year.
For and on behalf of B.K.KHARE & CO. FR No: 105102W Sd/Padmini Khare Kaicker Partner Membership No: 44784 Place : Mumbai Date : May 27, 2010
For and on behalf of K.VARGHESE & CO. FR No: 004525S Sd/K.Varghese Partner Membership No: 20674
94
Bharat Petroleum Corporation Limited
CONSOLIDATED SUMMARY
Annexure 1
(Amount in Rs. Crores) Nature of Statute / Nature of Dues Period Block High Court Forum where Dispute is pending Appellate Tribunal* 53.87 8.35 62.23 0.07 0.20 66.25 703.76 253.27 1,023.54 0.32 6.39 349.87 107.68 48.62 512.87 0.22 0.48 5.51 6.21 0.51 0.51 1,605.37 Appellate Authority** 0.06 0.50 0.04 0.61 0.16 0.21 714.99 600.63 76.08 1,392.06 1.35 1.35 1,394.02 Adjudicating Joint Authority*** Secretary, MOF 0.39 0.78 1.17 1.42 143.74 100.08 245.24 27.30 68.01 83.53 176.12 28.33 383.29 629.70 0.11 0.11 0.11 Board of Revenue 13.36 13.36 13.36 Grand Total
Customs Act, 1962 (Customs Duty Including Penalty & Interest, wherever applicable) Customs Duty Total (a) Central Excise Act, 1944 (Excise Duty Including Penalty & Interest, wherever applicable)
1995 to 2000 2000 to 2005 2005 to 2009
22.37 22.37
76.25 8.75 0.78 85.77 0.07 0.26 68.16 847.61 353.40 1,269.50 0.04 29.47 87.56 1,165.67 1,213.57 161.58 2,657.88 6.95 2.09 5.51 14.56 0.51 0.51 4,028.22
1985 to 1990 1990 to 1995 1995 to 2000 2000 to 2005 2005 to 2009
-
Excise Duty Total (b) Sales Tax/ VAT Legislations (Sales Tax Including Penalty & Interest, wherever applicable) 1980 to 1985 1985 to 1990 1990 to 1995 1995 to 2000 2000 to 2005 2005 to 2009 Sales Tax Total (c) Income Tax Act, 1961 (Income Tax including Penalty & Interest, wherever applicable) Income Tax Total (d) Finance Act, 1994 (Service Tax) Service Tax Total (e) Grand Total (a+b+c+d+e) * 2000 to 2005 1990 to 1995 1995 to 2000 2000 to 2005
0.04 1.70 12.95 3.93 329.14 8.55 356.30 6.73 0.26 6.99 385.66
Appellate Tribunal includes Sales Tax Tribunal, CESTAT and ITAT.
** Appellate Authority includes Commissioner Appeals, Assistant Commissioner Appeals, Deputy Commissioner Appeals, Joint Commissioner Appeals and Deputy Commissioner Commercial Taxes Appeals. *** Adjudicating Authority includes Collector of Sales Tax, Sales Tax Officer and Deputy Commissioner Sales Tax , Joint / Deputy / Additional Commissioner of Commercial Taxes
Annual Report 2009-2010
95
BALANCE SHEET AS AT 31ST MARCH, 2010
SCHEDULE I. SOURCES OF FUNDS 1. Shareholders' funds : Share Capital Reserves and Surplus 2. Loan funds : Secured Loans Unsecured Loans 3. Deferred tax liability (net) TOTAL II. APPLICATION OF FUNDS 1. Fixed Assets : Gross block Less : Depreciation and amortisation Net block Capital work-in-progress 2. Investments 3. Advance for Investments 4. Current assets, loans and advances : Inventories Sundry debtors Cash and bank balances Other current assets Loans and advances Less : Current liabilities and provisions : Liabilities Provisions Net current assets TOTAL Statement of Significant Accounting Policies and Notes forming part of Accounts For and on behalf of the Board of Directors Sd/ASHOK SINHA Chairman and Managing Director Sd/S. K. JOSHI Director (Finance) Place : Mumbai Dated : 27th May, 2010 Sd/S. V. KULKARNI Company Secretary D 25,412.52 (11,743.17) 13,669.35 2,517.75 16,187.10 12,201.32 1,300.01 12,028.86 2,662.68 342.36 3,785.69 4,764.34 23,583.93 14,550.56 2,580.59 17,131.15 6,452.78 36,141.21 X As per our attached report of even date For and on behalf of For and on behalf of B. K. KHARE & CO. K. VARGHESE & CO. Chartered Accountants Chartered Accountants FR No: 105102W FR No: 004525S Sd/Sd/PADMINI KHARE KAICKER K. VARGHESE Partner Partner Membership No. 44784 Membership No. 20674 22,522.33 (10,556.54) 11,965.79 2,037.48 14,003.27 16,715.19 1,363.19 6,823.92 1,425.67 441.55 3,094.51 3,502.77 15,288.42 11,118.87 1,712.44 12,831.31 2,457.11 34,538.76 Rs. Crores 31/03/2009 Rs. Crores
A B C
361.54 12,725.17 13,086.71 10,443.87 11,751.33 22,195.20 859.30 36,141.21
361.54 11,766.57 12,128.11 3,661.60 17,509.81 21,171.41 1,239.24 34,538.76
E F FA G H I J K L M
96
Bharat Petroleum Corporation Limited
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2010
SCHEDULE N O P Rs. Crores 131,499.72 (9,223.77) 122,275.95 2,240.24 3,989.85 128,506.04 63,078.89 50,592.45 133.17 217.40 1,841.56 2,585.47 79.52 237.12 2,141.12 1,010.95 2,924.59 1,242.32 126,084.56 2,421.48 (55.43) 2,366.05 1,127.00 (303.25) 4.68 1,537.62 (700.00) 76.37 913.99 506.16 72.77 578.93 154.00 181.06 42.53 42.53 X As per our attached report of even date For and on behalf of For and on behalf of B. K. KHARE & CO. K. VARGHESE & CO. Chartered Accountants Chartered Accountants FR No: 105102W FR No: 004525S Sd/Sd/PADMINI KHARE KAICKER K. VARGHESE Partner Partner Membership No. 44784 Membership No. 20674 2008-09 Rs. Crores 145,392.07 (10,154.37) 135,237.70 1,508.74 (1,575.88) 135,170.56 67,867.81 53,936.93 107.51 (10.49) 1,174.76 2,426.14 79.04 67.17 1,884.88 2,166.37 3,377.34 1,075.53 134,152.99 1,017.57 (13.46) 1,004.11 490.00 13.25 (242.13) 7.09 735.90 (300.00) # 435.90 253.08 31.45 284.53 75.00 76.37 20.35 20.35
INCOME Sale of products, crude oil and related income Less: Excise Duty Paid Miscellaneous income Increase/(Decrease) in Inventory TOTAL EXPENDITURE Purchase of products and crude oil for resale Raw materials consumed Packages consumed Excise Duty on Inventory differential Other duties, taxes etc. and other charges applicable to products Transportation Consumption of stores, spares and materials Power and Fuel Employees' remuneration and other benefits Interest Other operating and administration expenses Depreciation and amortisation TOTAL Profit Prior period income/(expenses) net Profit before tax Provision for Taxation - Current Tax - Fringe Benefit Tax - Deferred Tax Asset - Net - Short provision for Taxation in earlier years provided for Profit after tax Transfer from / (to) Debenture Redemption Reserve Balance brought forward Disposable Profit Appropriations: Proposed dividend Corporate Dividend Tax on proposed dividend Transfer to General Reserve Balance Carried to Balance Sheet # Rs. 10,000.00 Earnings per Share - Rs. - Basic - Diluted Statement of Significant Accounting Policies and Notes forming part of Accounts For and on behalf of the Board of Directors Sd/ASHOK SINHA Chairman and Managing Director Sd/S. K. JOSHI Director (Finance) Place : Mumbai Dated : 27th May, 2010 Sd/S. V. KULKARNI Company Secretary
Q
R S T U V
W
Annual Report 2009-2010
97
SCHEDULE ‘A’ — SHARE CAPITAL
31/03/2009 Rs. Crores Authorised 450,000,000 equity shares of Rs.10 each 450.00 450.00 Issued, subscribed and paid-up 361,542,124 (previous year 361,542,124) equity shares of Rs.10 each fully paid-up * Total Share Application Money Suspense Account Total 361.54 361.54 # 361.54 361.54 361.54 # 361.54 450.00 450.00 Rs. Crores
* Includes : i) 22,950,000 equity shares of Rs. 10 each on which Rs. 7.20 per share was paid in cash and were converted into fully paid by capitalisation of Capital Reserve. ii) 277,000,000 equity shares of Rs. 10 each allotted as fully paid bonus shares by capitalisation of Capital Reserve and General Reserve. iii) 61,542,124 equity shares of Rs. 10 each issued as fully paid-up to the Shareholders of erstwhile Kochi Refineries Limited as per the Scheme of Amalgamation. # Value Rs. 21,000
SCHEDULE ‘B’ — RESERVES AND SURPLUS
31/03/2009 Rs. Crores Capital Reserve As per last Balance Sheet (Less) : Amortisation of Capital Grant Debenture Redemption Reserve As per Last Balance Sheet Add:Transfer from Profit & Loss Account 300.00 700.00 1,000.00 General Reserve As per last Balance Sheet Add : Transfer from Profit & Loss Account Surplus as per Profit & Loss Account Total 11,375.26 154.00 11,529.26 181.06 12,725.17 11,300.26 75.00 11,375.26 76.37 11,766.57 300.00 300.00 14.94 (0.09) 14.85 15.03 (0.09) 14.94 Rs. Crores
98
Bharat Petroleum Corporation Limited
SCHEDULE ‘C’— LOAN FUNDS
Rs. Crores Secured Loans Debentures 10.35% Secured Non-Convertible debenture 2010 (refer note 3 (a) of Schedule 'X'-B) [Due for repayment within one year Rs. 1000 crores (previous year Rs. NIL)] 7.73% Secured Non-Convertible debenture 2012 (refer note 3 (b) of Schedule 'X'-B) Banks Working Capital Loans/Cash Credit (Secured in favour of the participating banks ranking pari passu inter-alia by hypothecation of raw materials, finished goods, stock- in- process, book debts, stores, components and spares and all movables both present and future) Interest accrued and due Term Loan [Due for repayment within one year Rs. 1200.00 crores (previous year Rs. NIL)] [Secured by pledge of 6.35% Oil Marketing Companies GOI Special Bonds 2024 of Rs. 3000 crores] Collateralised Borrowing and Lending Obligation (CBLO) through Clearing Corporation of India Limited [Secured by Oil Marketing Companies GOI Special Bonds 2024 of Rs. 1400 crores (previous year Oil Marketing Companies GOI Special Bonds 2023 of Rs. 1300.00 crores)] Unsecured Loans Fixed deposits [Due for repayment within one year Rs. 0.24 crores (previous year Rs. 3.01 crores)] Short Term (From Banks) Rupee Loans Foreign Currency Loans Syndicated Loans from various banks (repayable in foreign currency) [Due for repayment within one year Rs. NIL (previous year Rs. 606.07 crores)] Others Oil Industry Development Board [Due for repayment within one year Rs. 126.63 crores (previous year Rs. 203.13 crores)] Total 0.24 3.45 1,000.00 1,000.00 31/03/2009 Rs. Crores
1,000.00
-
6,714.15
2,497.70
29.72 1,200.00
13.90 -
500.00
150.00
10,443.87
3,661.60
3,300.00 6,274.24 1,255.48
12,855.00 2,060.25 1,829.61
921.37
761.50
11,751.33 22,195.20
17,509.81 21,171.41
Annual Report 2009-2010
99
100
Rs. Crores
SCHEDULE ‘D’ – FIXED ASSETS
GROSS BLOCK DEPRECIATION AND AMORTISATION NET BLOCK
PARTICULARS
AS AT 01-04-2009
ADDITIONS
AS AT 31-03-2010
UPTO 31-03-2009
2009-10
UPTO 31-03-2010
AS AT 31-03-2010
AS AT 31-03-2009
Bharat Petroleum Corporation Limited
(2) 389.77 102.44 3,972.56 221.99 6,581.00 3,948.97 168.65 152.01 1,416.02 3,799.12 1,686.29 83.51 22,522.33 21,500.93 2,966.28 1,118.57 76.09 97.17 25,412.52 22,522.33 10,556.54 9,532.26 353.06 288.51 27.23 8.16 23.10 4,144.02 1,951.70 110.74 3,799.12 767.09 42.37 353.06 114.46 12.05 1,246.90 1,083.61 102.73 2.56 1,516.19 346.53 68.56 2.29 8.16 22.85 60.27 59.33 412.80 4,144.02 858.70 54.42 11,743.17 10,556.54 56.20 63.25 268.79 41.03 820.13 909.32 15.13 20.90 1.08 1.79 5.16 2.75 26.21 0.69 1.93 2.66 444.89 163.90 4,236.19 260.27 7,374.92 4,857.60 181.85 170.25 17.01 523.26 111.47 2,921.79 1,870.44 73.48 83.98 2.20 82.70 10.84 322.67 256.04 11.24 13.08 0.27 1.80 2.61 14.08 4.47 1.71 2.03 18.94 604.16 119.70 3,230.38 2,122.01 83.01 95.03 (3) (5) (6) (7) (9) (10) 444.89 144.96 3,632.03 140.57 4,144.54 2,735.59 98.84 75.22 1,103.39 1,093.00 56.32 13,669.35 11,965.79
DEDUCTIONS ON ACCOUNT OF RETIREMENT / RECLASSIFICATIONS (4)
DEDUCTIONS ON ACCOUNT OF RETIREMENT / RECLASSIFICATIONS (8)
(11) 389.77 85.43 3,449.30 110.52 3,659.21 2,078.53 95.17 68.03 1,069.49 919.20 41.14 11,965.79 11,968.67
(1) 1. LAND (a) Freehold (b) Leasehold 2. BUILDINGS 3. RAILWAY SIDINGS 4. PLANT and MACHINERY 5. TANKS and PIPELINES 6. FURNITURE and FITTINGS 7. VEHICLES 8. OTHER ASSETS (a) Dispensing Pumps (b) LPG Cylinders and Allied Equipment (c) Sundries 9. INTANGIBLE ASSETS (refer note 18 of Schedule 'X'-B) TOTAL PREVIOUS YEAR (2008-09)
NOTES: 1) Land : a) Freehold land includes Rs. 32.07 Crores (previous year Rs. 31.73 Crores) with more than 99 years lease period. b) Freehold land includes Rs. 137.16 Crores (previous year Rs. 88.05 Crores) capitalised at various locations for which conveyance deeds are yet to be executed and/or mutation is pending. c) Includes the following which though in the possession of Corporation, the lease deeds are yet to be registered: i) Land acquired on lease for a period exceeding 99 years Rs. 0.91 Crores (previous year Rs. 0.91 Crores). ii) Other leasehold land - Gross Block Rs. 46.14 Crores (previous year Rs. 0.60 Crores), Net Block Rs. 45.88 Crores (previous year Rs. 0.48 Crores). d) Freehold land includes Rs. 2.13 Crores (previous year Rs. 2.13 Crores) which is in the process of being surrendered to Competent Authority. 2) Buildings include : a) Ownership flats of Rs. 48.16 Crores (previous year Rs. 47.92 Crores) in proposed / existing co-operative societies and others. b) Residential flats and office complex which are in possession of the Corporation and in respect of which the lease deeds are yet to be registered: Gross Block Rs. 30.31 Crores (previous year Rs. 30.87 Crores), Net Block Rs. 27.80 Crores (previous year Rs. 28.72 Crores). 3) Land, Plant & Machinery, Tanks & Pipelines, Railway Sidings and Buildings jointly owned in varying extent with other Oil Companies / Railways : Gross Block Rs.192.35 Crores (previous year Rs. 192.41 Crores), Cumulative Depreciation
Rs. 86.18 Crores (previous year Rs.77.67 Crores), Net Block Rs.106.17 Crores (previous year Rs.114.75 Crores). 4) Buildings, Plant & Machinery and Sundries includes Rs. 14.25 Crores (previous year Rs. 14.25 Crores) towards assets, ownership of which does not vest with the Corporation. This amount is amortised over a period of five years. The amount charged off as depreciation for the current period is Rs. 1.20 Crores (previous year Rs. 1.87 Crores). 5) Deduction from Gross Block (column 4) includes : a) Write back of excess capitalisation of Rs. 11.93 Crores (previous year Rs. 42.99 Crores). b) Deletions during the period Rs. 64.16 Crores (previous year Rs. 54.18 Crores). 6) Depreciation for the period (column 7) includes : a) Charged to Profit & Loss account Rs. 1246.18 Crores (previous year Rs. 1,082.25 Crores). b) Charged to Prior Period expenses Rs. 0.72 Crores (previous year Rs. 1.36 Crores). 7) Deductions from depreciation (column 8) includes withdrawal of depreciation : a) On excess capitalisation Rs. 3.49 Crores (previous year Rs. 3.50 Crores). b) On deletion during the period Rs. 56.04 Crores (previous year Rs. 48.77 Crores). c) On reclassification of assets Rs. 0.36 Crores (previous year Rs. 3.22 Crores) d) Credited to Prior Period Rs. 0.38 Crores (previous year Rs. 3.84 Crores) 8) Gross Block includes Rs. 20.55 Crores (previous year Rs. 6.62 Crores) towards assets which are identified as held for disposal during the period in respect of which additional depreciation of Rs. 6.06 Crores (previous year Rs. 4.13 Crores) has been provided to recognise the expected loss on disposal.
SCHEDULE ‘E’— CAPITAL WORK–IN–PROGRESS
31/03/2009 Rs. Crores Capital work-in-progress (at cost) Work-in-progress Capital Advances (Unsecured, Considered good) Capital stores including lying with contractors Capital goods in transit Intangible assets pending amortisation (refer note 18 of Schedule 'X'-B) Construction period expenses 31/03/2009 Opening balance Add: Expenditure during the year Establishment charges Interest Others 33.94 76.74 27.37 195.18 Less: Allocated to assets capitalised during the year Closing balance Total (92.34) 21.51 14.02 8.75 62.33 (5.20) 57.13 18.05 2,035.97 141.75 201.22 33.35 2.62 1,559.37 116.04 285.96 13.02 5.96 Rs. Crores
102.84 2,517.75
57.13 2,037.48
Annual Report 2009-2010
101
SCHEDULE ‘F’ — INVESTMENTS
Face Value No. Rs. Crores Book Value 31/03/2009 Rs. Crores Rs. Crores
1 2 3 4 5 6 7 8 9 10 11 12 13
CURRENT (Current Investments are valued at lower of cost or fair market value) IN GOVERNMENT SECURITIES NON TRADE - QUOTED 6.35% Oil Marketing Companies GOI Special Bonds 2024 ** 6.90% Oil Marketing Companies GOI Special Bonds 2026 7.00% Oil Marketing Companies GOI Special Bonds 2012 7.59% Oil Marketing Companies GOI Special Bonds 2015 7.61% Oil Marketing Companies GOI Special Bonds 2015 7.95% Oil Marketing Companies GOI Special Bonds 2025 8.00% Oil Marketing Companies GOI Special Bonds 2026 8.01% Oil Marketing Companies GOI Special Bonds 2023 8.13% Oil Marketing Companies GOI Special Bonds 2021 8.20% Oil Marketing Companies GOI Special Bonds 2023 8.20% Oil Marketing Companies GOI Special Bonds 2024* 8.40% Oil Marketing Companies GOI Special Bonds 2025 8.40% Oil Marketing Companies GOI Special Bonds 2026 Less : Provision for dimunition in value of investment in 6.35% Oil Marketing Companies GOI Special Bonds 2024 in 6.90% Oil Marketing Companies GOI Special Bonds 2026 in 7.95% Oil Marketing Companies GOI Special Bonds 2025 in 8.00% Oil Marketing Companies GOI Special Bonds 2026 in 8.20% Oil Marketing Companies GOI Special Bonds 2024
3,099.96 4,986.71 3.39 2.31 0.81 80.63 559.32 758.76 1,748.78 -
@ 3,099.96 @ 4,986.71 3.39 2.31 0.81 80.63 559.32 758.76 1,748.78 11,240.67 (493.68) (592.82) (2.53) (11.65) (16.32) (1,117.00) 10,123.67
1,605.80 330.00 3.39 2.31 0.81 695.63 2,144.32 16.00 2.80 2,860.76 1.03 1.92 2.87 7,667.64 (252.92) (23.08) (12.03) (288.03) 7,379.61
*
**
Kept as Collateral Security with Clearing Corporation of India Limited for borrowing in CBLO (face value of Rs. 1400 crores) Kept as Security with State Bank of India against Term loans (face value of Rs. 3000 crores) LONG TERM IN GOVERNMENT SECURITIES NON TRADE - QUOTED 6.35% Oil Marketing Companies GOI Special Bonds 2024 @ 6.90% Oil Marketing Companies GOI Special Bonds 2026 @ Deposited with Local Authorities 7 % Loan 2009 7 1/2 % Loan 2010 8 % Loan 2011 0.02 *** 0.02 # 0.02 3,099.96 4,986.71 0.02 0.02 # 8,086.71
1 2 3
# Rs 22,327.65 *** Rs. 20,000.00 @ Refer note 8 of Schedule 'X'-B
102
Bharat Petroleum Corporation Limited
SCHEDULE ‘F’ — INVESTMENTS (CONTD.)
No. IN SHARES, DEBENTURES AND BONDS TRADE - QUOTED Equity Shares of Rs.10 each (fully paid up) of Petronet LNG Limited Equity Shares of Rs.10 each (fully paid up) of Indraprastha Gas Limited Equity Shares of Rs.10 each (fully paid up) of Oil India Limited TRADE - UNQUOTED Equity Shares of Rs.10 each (fully paid up) of Bharat Oman Refineries Limited Equity Shares of Rs.10 each (fully paid up) of Petronet India Limited Equity Shares of Rs.10 each (fully paid up) of Cochin International Airport Limited Equity Shares of Rs.10 each (fully paid up) of Petronet CCK Limited Equity Shares of Rs.10 each (fully paid up) of Petronet CI Limited Equity Shares of Rs.10 each (fully paid up) of Petroleum Infrastructure Limited Equity Shares of Rs.10 each (fully paid up) of Central UP Gas Limited Equity Shares of Rs.10 each (fully paid up) of Sabarmati Gas Limited Equity Shares of Rs.10 each (fully paid up) of Maharashtra Natural Gas Limited Equity Shares of Rs.10 each (fully paid up) of Bharat Stars Services Pvt. Ltd Equity Shares of Rs.10 each (fully paid up) of Bharat Renewable Energy Limited Equity Shares of Premier Oil Cachar B.V. Face value of Euro 453.78 each (fully paid up) Equity Shares of Delhi Aviation Fuel Facility Private Limited Face value of Rs 10 each (fully paid up) Equity Shares of Matrix Bharat Marine Services Pte. Ltd. Face value USD1 each (fully paid up) 6% Optional Conver tible Debenture of Rs.100000 each (fully paid up) of Sabarmati Gas Limited Less: Provision for dimunition in value of investment in Petroleum Infrastructure Limited in Petronet CI Limited in Petronet India Limited in Petronet CCK Limited Face Value Rs. Crores 93.75 31.50 5.35 75.50 16.00 10.50 49.00 1.58 7.50 13.50 5.00 22.49 10.00 1.00 # Book Value 31/03/2009 Rs. Crores Rs. Crores 98.75 31.50 561.76 75.50 16.00 10.50 49.00 1.58 7.50 13.50 19.96 22.49 10.00 1.00 # 98.75 31.50 75.50 16.00 10.50 49.00 1.58 7.50 13.50 0.01 0.01 5.00 1.00 0.10 -
1 2 3 1 2 3 4 5 7 8 9 10 11 12 13 14
93,750,000 (93,750,000) 31,500,080 (31,500,080) 5,350,110 75,500,000 (75,500,000) 16,000,000 (16,000,000) 10,500,000 (10,500,000) 49,000,000 (49,000,000) 1,584,000 (1,584,000) 7,500,000 (7,500,000) 13,500,000 (13,500,000) 5,000,000 (12,500) 22,487,500 (12,500) 10,000,000 (5,000,000) 1,000,000 (1,000,000) (40) 3,700 2,000,000 (2,000,000) 2,000 -
15
8.41
8.41
8.41
16
20.00
20.00 947.45 (7.50) (1.58) (16.00) (23.50) (48.58) 898.87
318.36 (7.50) (1.58) (16.00) (23.50) (48.58) 269.78
#
Value Rs 37,000.00
Annual Report 2009-2010
103
SCHEDULE ‘F’— INVESTMENTS (CONTD.)
No. NON TRADE - UNQUOTED Debentures (Irredeemable - Fully Paid up) - 5 % debentures of East India Clinic Limited Ordinary Shares (Fully paid up) of Sindhu Resettlement Corporation Limited Shares of Kochi Refineries Employees Consumer Co-operative Society Limited (Fully paid up) IN SUBSIDIARY COMPANIES UNQUOTED Equity Shares of Rs.10 each (fully paid up) of Numaligarh Refinery Limited Equity Shares of Rs.10 each (fully paid up) of Bharat PetroResources Limited IN ASSOCIATION OF PERSONS NON TRADE - UNQUOTED Capital Contribution in Petroleum India International Share in accumulated surplus of Petroleum India International as at 31st March 2010 (31st March 2009) Member Companies ### Bharat Petroleum Corporation Limited Bongaigaon Refinery & Petrochemicals Limited Engineers India Limited Hindustan Petroleum Corporation Limited Indian Oil Corporation Limited Indian Petrochemicals Corporation Limited Chennai Petroleum Corporation Limited Oil and Natural Gas Corporation Limited Oil India Limited Total Face Value Rs. Crores 1 (1) 6 (6) 500 (500) 0.01 # ## Book Value 31/03/2009 Rs. Crores Rs. Crores 0.01 # ## 0.01 0.01 # ## 0.01
1 2 3
1 2
453,545,998 (453,545,998) 702,552,610 (502,552,610)
453.55 702.55
453.55 702.55 1,156.10 10.00 12.65 22.65
453.55 502.55 956.10 10.00 12.98 22.98
12,201.32
16,715.19
# Value Rs. 19000 ## Value Rs. 5000 ### The total capital of AOP is Rs. 55.00 crores of which share of Bharat Petroleum Corporation Limited and Indian Oil Corporation Limited is Rs.10.00 crores each and other members have equal share of Rs. 5.00 crores each. Aggregate value of Unquoted Securities Rs.1,385.62 Crores (Rs. 1118.63 Crores). Aggregate value of Quoted Securities Rs. 10,815.70 Crores (Rs. 15,596.57 Crores). Market value of Quoted Securities Rs. 12,137.83 Crores (Rs. 15,338.25 Crores). Investment made and sold during the year 8.20% Oil Marketing Companies GOI Special Bonds 2024 No. Face Value Rs. Crores 316,500 316.50 Cost Rs. Crores 316.50
104
Bharat Petroleum Corporation Limited
SCHEDULE ‘FA’ — ADVANCE FOR INVESTMENTS
31/03/2009 Rs. Crores Rs. Crores
SHARE APPLICATION MONEY/ADVANCE TOWARDS EQUITY PENDING ALLOTMENT Maharashtra Natural Gas Limited Sabarmati Gas Limited Bharat Oman Refineries Limited 0.01 1,300.00 22.49 40.70 1,300.00
Total
1,300.01
1,363.19
SCHEDULE ‘G’ — INVENTORIES
31/03/2009 Rs. Crores Rs. Crores
Stores and spares [including in transit Rs. 1.02 crores (previous year Rs. 0.76 crores)]
168.09
181.46
Raw materials [including in transit Rs. 807.72 crores (previous year Rs. 547.71 crores)]
2,745.99
1,519.63
Stock in process
723.18
485.52
Finished products [including in transit Rs. 139.82 crores (previous year Rs. 78.40 crores)]
8,383.49
4,631.30
Packages
8.11
6.01
Total
12,028.86
6,823.92
Annual Report 2009-2010
105
SCHEDULE ‘H’ - SUNDRY DEBTORS
(Unsecured, Considered good unless otherwise stated) 31/03/2009 Rs. Crores Debts outstanding for over six months : Considered good * Considered doubtful Other debts Less : Provision for doubtful debts Total * Includes Rs. 25.81 crores (previous year Rs. 19.86 crores) which are secured. 170.44 250.11 420.55 2,492.24 2,912.79 (250.11) 2,662.68 198.60 183.64 382.24 1,227.07 1,609.31 (183.64) 1,425.67 Rs. Crores
SCHEDULE ‘I’ — CASH AND BANK BALANCES
31/03/2009 Rs. Crores Cash on Hand [Includes drafts and cheques on hand of Rs.80.56 crores (previous year Rs. 108.00 crores)] With Scheduled banks : In current accounts In deposit accounts * Remittances in transit Total 243.04 0.93 0.07 342.36 314.46 0.93 1.67 441.55 98.32 Rs. Crores 124.49
* Includes deposit of Rs. 0.80 crores (previous year Rs. 0.80 crores) that have been pledged / deposited with local authorities.
SCHEDULE ‘J’ - OTHER CURRENT ASSETS
31/03/2009 Rs. Crores Interest accrued on investments Interest accrued on bank deposits Subsidy / Oil Marketing Companies GOI Special Bonds Receivable (refer note 2 of Schedule 'X'-B) Deferred premium (foreign exchange forward contract) Others (refer note 4 of Schedule 'X'-B) Total 90.29 659.10 3,785.69 123.22 659.10 3,094.51 142.02 0.02 2,894.26 Rs. Crores 246.89 0.02 2,065.28
106
Bharat Petroleum Corporation Limited
SCHEDULE ‘K’ — LOANS AND ADVANCES
(Unsecured, Considered good unless otherwise stated) Rs. Crores Loans (Secured) : To companies Considered doubtful Less: Provision for doubtful loans To staff * Material given on Loan Less : Deposits Received Loans : To Subsidiaries Considered good To companies Considered good Considered doubtful Less: Provision for doubtful loans To others Interest accrued on Loans Advances: Advances Recoverable in cash, or in kind or for value to be received Advances considered doubtful Less : Provision for doubtful advances Dues from Petroleum Planning & Analysis Cell - Government of India Due from Subsidiaries Claims : Considered good Considered doubtful Less : Provision for doubtful claims Advance Income Tax ( Net of provision for taxation) Deposits : With Customs/Excise/Port Trust etc. Others** Considered doubtful Less: Provision for doubtful deposits Total 31/03/2009 Rs. Crores
0.10 (0.10) 623.20 0.46 (0.46) 623.20
0.10 (0.10) 632.46 0.46 (0.46) 632.46
327.00 2,870.17 2.81 (2.81) 45.00 44.88 3,287.05 180.84 3.99 (3.99) 180.84 29.10 1.63 346.35 62.01 (62.01) 346.35 130.79 83.89 81.49 165.38 165.38 4,764.34
95.00 1,658.53 2.81 (2.81) 40.75 33.63 1,827.91 272.47 4.27 (4.27) 272.47 29.91 3.27 356.08 55.65 (55.65) 356.08 194.42 104.42 81.83 186.25 186.25 3,502.77
* Includes : Dues from Officers : Rs. 3.97 crores (previous year Rs. 4.44 crores) Maximum balances : Rs. 5.34 crores (previous year Rs. 6.11 crores) Dues from Directors : Rs. 0.15 crores (previous year Rs. 0.01 crores) Maximum balances : Rs. 0.16 crores (previous year Rs. 0.08 crores) ** Includes Rs.4.55 crores(previous year Rs. 5.81 crores) alongwith interest of Rs. 4.19 crores (previous year Rs. 5.73 crores) deposited as per court order in Land Compensation cases for which appeals are pending. Annual Report 2009-2010
107
SCHEDULE ‘L’ — LIABILITIES
Rs. Crores Current Liabilities : Sundry creditors Total outstanding dues of micro and small enterprises (refer note 10 of Schedule 'X'-B) Total outstanding dues of creditors other than micro and small enterprises Due to Subsidiaries Deposits from Customers Deposits for Containers Unclaimed Dividend * Unclaimed Deposits * Unclaimed Interest on Deposits * Other liabilities Interest on loans (accrued but not due ) Total 0.72 8,359.25 99.72 25.81 3,755.66 3.11 0.28 0.09 2,212.07 93.85 14,550.56 0.73 6,213.85 131.12 19.64 3,343.98 3.18 0.37 0.21 1,342.10 63.69 11,118.87 31/03/2009 Rs. Crores
* No amount is due at the end of the year for credit to Investors Education and Protection Fund.
SCHEDULE ‘M’ - PROVISIONS
Rs. Crores Provision for Taxation (Net of Tax paid) Proposed dividend Corporate Dividend Tax on proposed dividend Provision for employee / retirement benefits Total 759.78 506.16 72.77 1,241.88 2,580.59 31/03/2009 Rs. Crores 493.72 253.08 31.45 934.19 1,712.44
SCHEDULE ‘N’ - SALE OF PRODUCTS
2008-09 Rs. Crores Sales Subsidy on LPG (Domestic) & SKO (PDS) (As per the existing scheme of the Government of India) Subsidy/ Oil Marketing Companies GOI Special Bonds (refer note 2 of Schedule 'X'-B) Total 131,499.72 145,392.07 5,265.03 16,216.38 125,643.84 590.85 Rs. Crores 128,609.48 566.21
108
Bharat Petroleum Corporation Limited
SCHEDULE ‘O’ — MISCELLANEOUS INCOME
Rs. Crores Interest on bank deposits and others * Tax deducted at source - Rs. 33.17 crores ( previous year Rs. 21.47 crores) Income from Investments NON TRADE Current - Interest on Oil Marketing Companies GOI Special Bonds Long Term - Interest on Oil Marketing Companies GOI Special Bonds TRADE Dividend from subsidiaries from others Income from AOP (Petroleum India International) Total Income from Investments Write back of liabilities no longer required (net) Profit on sale/write off of fixed assets (net) Foreign Exchange fluctuations (net) Other income # Tax deducted at source -Rs.8.35 crores (previous year Rs. 6.24 crores) Total 289.17 2008-09 Rs. Crores 160.13
354.66 512.38 867.04 68.03 40.24 0.04 108.31 975.35 4.07 556.53 415.12 2,240.24
422.96 108.35 531.31 90.71 27.84 1.24 119.79 651.10 17.58 679.93 1,508.74
* Includes interest received from Income Tax authorities Rs. 1.34 crores (previous year Rs. 10.85 crores). # Includes amortisation of capital grants Rs. 0.09 crores (previous year Rs. 0.09 crores).
SCHEDULE ‘P’ - INCREASE/(DECREASE) IN INVENTORY
Rs. Crores 31/03/2009 Value of closing stock of Finished goods Stock in process Less : Value of opening stock of Finished goods Stock in process Total 8,383.49 723.18 4,631.30 485.52 9,106.67 5,116.82 2008-09 Rs. Crores
4,631.30 485.52
6,126.78 565.92 5,116.82 3,989.85 6,692.70 (1,575.88)
SCHEDULE ‘Q’ - RAW MATERIALS CONSUMED
Opening Stock Add : Purchases Less: Closing Stock Total Rs. Crores 1,519.63 51,818.81 (2,745.99) 50,592.45 2008-09 Rs. Crores 3,757.88 51,698.68 (1,519.63) 53,936.93
Annual Report 2009-2010
109
SCHEDULE ‘R’ — CONSUMPTION OF STORES, SPARES AND MATERIALS
Rs. Crores 244.55 (165.03) 79.52 2008-09 Rs. Crores 218.38 (139.34) 79.04
Stores, spares and materials Less : Charged to other revenue accounts Total
SCHEDULE ‘S’ - POWER AND FUEL
2008-09 Rs. Crores Power and Fuel Less: Consumption of fuel out of own production Total 2,523.83 (2,286.71) 237.12 Rs. Crores 2,800.30 (2,733.13) 67.17
SCHEDULE ‘T’ - EMPLOYEES’ REMUNERATION AND OTHER BENEFITS
2008-09 Rs. Crores Salaries and wages (refer note 7 of Schedule 'X'-B) Contribution to provident fund Contribution to gratuity fund Contribution to other funds Welfare expenses Total 1,605.53 99.79 100.89 18.08 316.83 2,141.12 Rs. Crores 1,026.27 65.21 211.73 9.71 571.96 1,884.88
SCHEDULE ‘U’ - INTEREST
2008-09 Rs. Crores On Debentures On Fixed Loans Others Total 140.35 146.58 724.02 1,010.95 Rs. Crores 31.76 292.39 1,842.22 2,166.37
110
Bharat Petroleum Corporation Limited
SCHEDULE ‘V’ — OTHER OPERATING AND ADMINISTRATION EXPENSES
Rs. Crores Repairs and maintenance : Machinery Building Others 384.72 26.53 82.34 493.59 27.78 226.01 33.30 0.27 131.83 0.01 6.01 72.56 828.98 221.07 108.51 98.81 24.24 651.62 2,924.59 2008-09 Rs. Crores 347.09 23.67 90.20 460.96 25.82 122.39 32.93 0.02 0.28 127.75 0.02 12.17 4.17 (30.02) 515.42 1.77 95.87 109.66 26.11 1,302.73 569.29 3,377.34
Insurance Rent Rates and taxes Charities and donations Remuneration to auditors Utilities Write off : Bad debts and Claims Others Provision for : Doubtful debts and advances Dimunition in value of investments Loss on sale of current Investments Loss on sale / write off of fixed assets (net) Charges paid to other oil companies Travelling and conveyance Telephone, Telex, Cables, Postage etc. Foreign Exchange fluctuations (net) Other expenses Total
SCHEDULE ‘W’ - PRIOR PERIOD INCOME/(EXPENSES) (NET)
Sale of products Miscellaneous Income Purchase of product for resale Duties, taxes etc. and other product charges Transportation Consumption of stores, spares and materials Power and Fuel Rent, Rates & Taxes Employees' remuneration and other benefits Other operating and administration expenses Interest Depreciation Interest income Total Rs. Crores 17.01 4.22 10.26 (2.71) 1.63 (0.83) (0.07) (2.68) (72.00) (8.07) (1.94) (0.34) 0.09 (55.43) 2008-09 Rs. Crores (12.93) 1.59 1.11 0.94 (6.19) 0.99 (1.38) (1.47) (6.98) 8.38 2.48 (13.46)
Annual Report 2009-2010
111
SCHEDULE ‘X’— STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2010
A. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
1. BASIS FOR PREPARATION The financial statements are prepared under historical cost convention to comply in all material aspects with the mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules 2006 and the provisions of the Companies Act, 1956, adopting accrual system of accounting unless otherwise stated. USE OF ESTIMATES The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual amounts and estimates are recognised in the period in which they materialise. FIXED ASSETS 3.1 3.2. LAND Land acquired on lease where period of lease exceeds 99 years is treated as freehold. FIXED ASSETS OTHER THAN LAND 3.2.1. 3.2.2. 3.2.3. 3.3. Fixed Assets are stated at cost of acquisition (including incidental expenses) less accumulated depreciation. Expenditure on assets, other than plant and machinery, LPG cylinders and pressure regulators, not exceeding Rs.1,000 per item is charged to revenue. Machinery spares that are specific to a fixed asset are capitalised along with the fixed asset. Replacement of such spares is charged to revenue.
2.
3.
EXPENDITURE DURING CONSTRUCTION PERIOD Direct expenses including borrowing cost incurred during construction period on capital projects are capitalised. Indirect expenses of the project group which are allocated to projects costing Rs. 5 crores and above are also capitalised. Crop compensation expenses incurred in the process of laying pipelines are capitalised.
3.4.
INTANGIBLE ASSETS 3.4.1. 3.4.2. Cost of right of way that is perennial in nature is not amortised. Expenditure incurred for creating/acquiring other intangible assets of Rs. 0.50 crores and above, from which future economic benefits will flow over a period of time, is amortised over the estimated useful life of the asset or five years, whichever is lower, from the time the intangible asset starts providing the economic benefit. In other cases, the expenditure is charged to revenue in the year the expenditure is incurred.
3.4.3. 4.
IMPAIRMENT OF ASSETS The values of fixed assets in respect of Cash Generating Units are reviewed by the management for impairment at each Balance Sheet date if events or circumstances indicate that the carrying values may not be recoverable. If the carrying value is more than the net selling price of the asset or present value, the difference is recognized as an impairment loss. BORROWING COSTS Borrowing costs attributable to acquisition, construction or production of qualifying asset are capitalised as part of the cost of that asset, till the month in which the asset is ready for use. Other borrowing costs are recognised as an expense in the period in which these are incurred. DEPRECIATION 6.1. Depreciation on fixed assets is provided under the straight line method, at rates prescribed under Schedule XIV to the Companies Act, 1956, except in following cases: 6.1.1. Premium paid for acquiring leasehold land for lease period not exceeding 99 years, is amortised over the period of lease. 6.1.2. LPG cylinders, pressure regulators and other fixed assets costing not more than Rs 5,000 each are depreciated @ 100 percent in the year of capitalisation. Bharat Petroleum Corporation Limited
5.
6.
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SCHEDULE ‘X’ — (CONTD.)
6.1.3. 6.1.4. Assets not owned by the Corporation are amortised over a period of five years from the year of capitalisation. Computer equipments and peripherals, and mobile phones are depreciated over a period of four years. Furniture provided at the residence of management staff is depreciated over a period of seven years.
6.2. 7.
Depreciation is charged on addition / deletion on pro-rata monthly basis including the month of addition / deletion. Current investments are valued at lower of cost or fair market value. Long-term investments are valued at cost. Provision for diminution is made to recognise a decline, other than of temporary nature, in the value of such investments. Raw material and Intermediates are valued at cost or net realisable value whichever is lower. Cost is determined as follows: 8.1.1. 8.1.2. Raw materials on weighted average cost. Purchased raw materials in transit are carried at cost. Intermediate Stocks at raw material cost plus cost of conversion.
INVESTMENTS 7.1. 7.2.
8.
INVENTORY 8.1.
8.2. 8.3. 8.4. 9. 9.1.
Finished products are valued at weighted average cost or at net realisable value, whichever is lower. Stores are valued at weighted average cost. Obsolete stores are valued at Re. Nil. Slow moving stores/ other materials identified as surplus and no longer usable are valued at Re. Nil. Packages are valued at weighted average cost or at net realisable value, whichever is lower. Sales are net of trade discounts and include, inter alia, excise / customs duties / claim from Petroleum Planning and Analysis Cell, Government of India and other elements allowed by the Government from time to time Claims/Surrenders including subsidy on LPG and SKO on/to Petroleum Planning and Analysis Cell, Government of India are booked on `in principle acceptance’ thereof on the basis of available instructions/clarifications subject to final adjustments after necessary audit, as stipulated. Adjustments if any, on completion of audit are recognised. Other claims are booked when there is a reasonable certainty of recovery. Claims are reviewed on a periodical basis and if recovery is uncertain, provision is made in the accounts. Income from sale of scrap is accounted for on realisation.
REVENUE RECOGNITION
9.2.
9.3. 9.4.
10. CLASSIFICATION OF INCOME/EXPENSES 10.1. Expenditure on Research, other than capital expenditure, is charged to revenue in the year in which the expenditure is incurred. 10.2. Income/expenditure upto Rs. 0.05 crore in each case pertaining to prior years is charged to the current year. 10.3. Prepaid expenses upto Rs. 0.05 crore in each case, are charged to revenue as and when incurred. 10.4. Deposits placed with Government agencies/ local authorities which are perennial in nature are charged to revenue in the year of payment. 11. EMPLOYEE BENEFITS 11.1. Contributions to Provident Fund for the year are recognised in the Profit & Loss Account. 11.2. The liability towards gratuity, leave encashment, post retirement benefits and other long term benefits are provided for in the accounts based on actuarial valuation as at the end of the year. To determine the present value of the defined benefit obligations and the current and past service costs, the Projected Unit Credit Method is used. Actuarial gains and losses are recognised in the Profit & Loss Account as income or expense. Annual Report 2009-2010
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SCHEDULE ‘X’ — (CONTD.)
12. DUTIES ON BONDED STOCKS 12.1. 12.2. Customs duty on Raw materials/Finished goods lying in bond are provided for at the applicable rates except where liability to pay duty is transferred to consignee. Excise duty on finished stocks lying in bond is provided for, at the assessable value applicable at each of the locations at maximum rates based on end use.
13. FOREIGN CURRENCY & DERIVATIVE TRANSACTIONS 13.1. 13.2. 13.3. Transactions in foreign currency are accounted at the exchange rate prevailing on the date of transaction. Monetary items denominated in foreign currency are converted at exchange rates prevailing on the date of Balance Sheet. Foreign Exchange differences arising at the time of translation or settlement are recognised as income or expense in the Profit & Loss Account either under foreign exchange fluctuations or interest as the case may be. Premium/discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the Profit & Loss Account. 13.4. Gains / losses arising on settlement of Derivative transactions entered into by the Corporation to manage the commodity price risk and exposures on account of fluctuations in interest rates and foreign exchange are recognised in the Profit & Loss Account. Provision for losses in respect of outstanding contracts as on balance sheet date is made based on mark to market valuations of such contracts.
14. GOVERNMENT GRANTS 14.1. In case of depreciable assets, the cost of the asset is shown at gross value and grant thereon is taken to Capital Reserve as deferred income, which is recognised in the Profit & Loss Account over the useful life of the asset. Government grants of the nature of promoters’ contributions are credited to Capital Reserve and treated as part of Shareholders’ Funds.
14.2.
15. PROVISIONS, CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS 15.1. Provision is recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Corporation. Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs.0.05 crores in each case. Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand.
15.2.
15.3. 15.4.
16. TAXES ON INCOME 16.1. 16.2. 16.3. Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961. Deferred tax on account of timing difference between taxable and accounting income is provided using the tax rates and tax laws enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are not recognised unless, in the management judgement there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.
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Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONTD.)
B. NOTES FORMING PART OF ACCOUNTS
1) In respect of sharing of under-recoveries on sensitive petroleum products viz. MS, HSD, LPG (Domestic) and SKO (PDS), as advised by the Ministry of Petroleum & Natural Gas, a part of the under-recovery suffered by the Corporation during the year was compensated by ONGC and GAIL by offering discount on price of Crude Oil, SKO and LPG purchased from them. Accordingly, the Corporation has accounted the discount as follows: a) b) 2) Rs.2,927.27 crores (previous year Rs. 6,709.94 crores) discount on crude oil purchased from ONGC has been adjusted against raw material cost; and Rs. 702.57 crores (previous year Rs. 846.50 crores) discounts on SKO and LPG purchased from ONGC/GAIL has been adjusted against “Purchase of products and crude oil for resale”.
In lieu of the under-recoveries on sale of petroleum products during 2009-10, based on the approval of Government of India, the Corporation has accounted for the subsidy amounting to Rs.5,265.03 crores as income (previous year Rs.16,216.38 crores of Oil Marketing Companies GOI Special Bonds were accounted as Income). Out of the above, an amount of Rs.2,894.26 crores (previous year Oil Marketing Companies GOI Special Bonds amounting to Rs.2,065.28 crores) receivable as on 31st March 2010 from Government of India is shown as Other Current Assets in Schedule J. Debentures: a) The Corporation had allotted redeemable non-convertible 10.35% Debentures of face value of Rs.1,000 crores on 12th December 2008. These are secured by English mortgage, on first pari passu charge basis, by way of a Registered Debenture Trust Deed over the fixed assets of the Company, viz., a Flat at Mumbai and the Plant and Machinery in respect of Hydrocracker Unit and Aromatic Recovery Unit of the Mumbai Refinery. In order to maintain the security cover of 1.25 times, all future immovable properties including Land, Plant & Machinery and Fixtures & Fittings shall be a part of the Premises and Plant & Machinery which are mortgaged. These Debentures are redeemable at par on 11th June 2010. The Corporation has allotted redeemable non-convertible 7.73% Debentures of face value of Rs.1,000 crores on 12th October 2009. These are secured by first legal mortgage in English form by way of a Registered Debenture Trust Deed over the fixed assets of the Company, viz., a Flat at Mumbai and the Plant & Machinery in respect of Refinery Modernisation Project Crude Distillation Unit / Vacuum Distillation Unit, Catalytic Cracking Unit, Fluid Catalytic Cracking Unit, Diesel Hydro Desulphurisation Unit and Naptha Hydro Desulphurisation Unit of the Mumbai Refinery. In order to maintain the security cover of 1.25 times, all future immovable properties including Land, Plant & Machinery and Fixtures & Fittings shall be a part of the Premises and Plant & Machinery which are mortgaged. These Debentures are redeemable at par on 9th October 2012.
3)
b)
4)
As per the scheme of Amalgamation of the erstwhile Kochi Refineries Limited with the Corporation approved by the Government of India, 33,728,738 equity shares of the Corporation were allotted (in lieu of the shares held by the Corporation in the erstwhile Kochi Refineries Limited) to a trust for the benefit of the Corporation in the financial year 2006-07. Accordingly the cost of the original investment of Rs. 659.10 crores is reflected as ‘Others’ in Schedule ‘J’ - Other Current Assets. The income distributed by the trust during the year 2009-10 amounting to Rs. 23.61 crores (previous year Rs. 13.49 crores) has been included in ‘Other income’ in Schedule ‘O’ – Miscellaneous Income. One shareholder of erstwhile KRL has challenged the amalgamation before Delhi High Court, which is pending adjudication.
5) 6) 7)
Provision for taxation in the Profit & Loss Account includes Rs.1.50 crores (previous year Rs. 1.40 crores) towards wealth tax. The Corporation has numerous transactions with other oil companies, which are reconciled on an ongoing basis and subject to confirmation. Adjustments, if any, arising therefrom are not likely to be material on settlement. The Corporation has made a provision of Rs.463 crores (previous year Rs.114 crores for management staff) towards balance liability on revision in emoluments of management staff and pending pay-revision of non-management staff on an estimated basis. Further, this has been considered for making provision at the year end for employee benefits based on actuarial valuations. Annual Report 2009-2010
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SCHEDULE ‘X’ — (CONTD.)
8) The Corporation has reclassified the entire portfolio of long term investments in 6.35% Oil Marketing Companies GOI Special Bonds 2024 – Rs.3,099.96 crores and 6.90% Oil Marketing Companies GOI Special Bonds 2026 – Rs.4,986.71 crores to current investments during the year, considering the future funds requirement. Accordingly an amount of Rs. 1086.50 crores has been provided for the diminution in value of these investments based on mark to market as on 31.3.2010. Impairment of Assets Determination as to whether and how much an asset is impaired involve Management estimates of highly uncertain matters such as international prices of crude oil and products, duty structure and Government policies. It is assumed that suitable mechanism would be in place, in line with earlier/ current year(s), to provide compensation towards under-recoveries of margin, if any, on account of sale of sensitive petroleum products in subsequent years. Hence, future cash flows have been worked out based on the desired margins for deciding on impairment of related Cash Generating Units. No impairment is therefore considered as at 31st March 2010. 10) To the extent, the Corporation has received intimation from the “suppliers” regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, the details are provided as under for the year 2009-10: Rs. Crores 31.03.10 (i) (ii) (iii) Principal amount remaining unpaid as on 31 March
st
9)
31.03.09 0.73 -
0.72 -
Interest due thereon remaining unpaid as on 31st March Interest paid by the Corporation in terms of Section 16 of the Micro, Small And Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during the period Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the period) but without adding the interest specified under the Micro, Small And Medium Enterprises Development Act, 2006 Interest accrued and remaining unpaid as at 31st March Interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise
(iv)
-
-
(v) (vi)
-
-
11) Disclosure as per requirements of Accounting Standard 15 - “Employee Benefits” : Gratuity: The Company has a defined benefit gratuity plan managed by a trust. The contribution based upon actuarial valuation is paid to a trust which is invested as per investment pattern prescribed by the Government in plan assets. Gratuity is paid to the Staff member who has put in a minimum qualifying period of 5 years of continuous service on superannuation, resignation, termination or to his nominee on death. Leave Encashment: The Employees are entitled to accumulate Earned Leave and Sick Leave, which can be availed during the service period. Employees are also allowed to encash the accumulated earned leave during the service period. Further, the accumulated earned leave and sick leave can be encashed by the employees on superannuation, resignation, and termination or by nominee on death. Other Defined Benefits: These are (a) Post Retirement Medical Scheme benefit to employees, spouse, dependent children and dependent parents. (b) Medical benefits carry forward entitlements (c) Pension/ex-gratia scheme to the retired employees who are entitled to receive the monthly pension / ex-gratia for life; (d) Death in service / Permanent disablement given to employee, the spouse of the employee, provided the deceased’s family/disabled employee deposits retirement dues such as PF, Gratuity, Leave encashment payable to them with the Corporation; and (e) Resettlement allowance paid to employees to permanently settle down at a place other than the location of last posting at the time of retirement.
116
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONTD.)
Rs.Crores Post Retirement Burmah Shell Pension Medical - Non Funded - Non Funded Ex-gratia scheme Non Funded
Disclosures as per requirements of Accounting Standard 15 continued :
Gratuity - Funded Leave Encashment Non Funded
a) Reconciliation of balances of Defined Benefit Obligations. 2009-10 469.34 37.49 18.38 (8.08) 68.84 585.97 2008-09 235.54 20.00 21.95 104.07 (8.28) 96.06 469.34 2009-10 323.86 23.60 19.31 (77.34) 203.40 492.83 2008-09 280.79 23.00 29.20 (34.25) 25.12 323.86 2009-10 265.29 21.00 16.80 (10.84) 14.77 307.02 2008-09 118.55 10.00 12.20 (10.64) 135.18 265.29 2009-10 61.55 4.35 (10.81) 11.82 66.91 2008-09 61.08 4.00 (10.61) 7.08 61.55
Defined Obligations at the beginning of the year Interest Cost Current Service Cost Past service cost Benefits paid Actuarial (Gains)/ Losses on obligations Defined Obligations at the end of the year
Death / Permanent disablement Non Funded 2009-10 2008-09 10.45 8.95 0.66 1.00 (3.92) (3.17) 0.23 3.67 7.42 10.45 Re-settlement Allowance - Non Funded 2009-10 2008-09 4.78 4.77 0.44 0.47 0.95 1.08 (0.02) (0.01) (1.42) (1.53) 4.73 4.78
2009-10 235.70 18.65 14.75 (19.53) (7.52) 242.05
2008-09 234.10 (7.95) 9.55 235.70
b) Reconciliation of balances of Fair Value of Plan Assets in respect of Gratuity Fund Fair Value at the beginning of the year Expected Return Acturial gains/ (losses) Actual Return on Plan assets Contribution by employer Benefits paid Fair Value of Plan Assets at the end of the year 257.41 24.56 (0.74) 23.82 53.65 (8.08) 326.80 259.17 211.93 492.83 323.86 307.02 265.29 66.91 61.55 7.42 225.86 18.51 11.64 30.15 9.68 (8.28) 257.41
c) Amount recognised in Balance sheet (a-b)
10.45
4.73
4.78
242.05
235.70
d) Amount recognised in P & L Account 18.38 37.49 (24.56) 69.58 100.89 211.93 246.31 77.32 52.57 84.42 203.40 25.12 14.77 (18.51) 135.18 157.38 11.82 16.17 7.08 11.08 0.23 0.89 3.67 4.67 (1.42) (0.03) (1.53) 0.02 (7.52) 25.88 9.55 243.65 20.00 23.60 23.00 21.00 104.07 10.00 21.95 19.31 29.20 16.80 12.20 4.35 4.00 0.66 1.00 0.95 0.44 1.08 0.47 14.75 18.65 234.10 -
Current Service Cost
Past Service cost
Interest Cost
Expected Return on Plan Asssets
Actuarial (Gains)/ Losses
Expenses for the period
e) Major Actuarial Assumptions 8.25% 7.00% 8.00% 8.00% 4.00% 7.00% 7.75% 8.25% 7.75% 4.00% 8.25% 6.00% 7.75% 6.00% 8.25% 7.75% 8.25% 7.75% 8.25% 7.75% 8.25% 7.75% -
Discount Rate
Salary Escalation/ Inflation
Expected Return on Plan assets
Notes :
i) The estimates for future salary increases, considered in acturial valuation, take into account inflation, seniority, promotion and other relevant factors
Annual Report 2009-2010
31.3.2010 31.3.2009 % % 32.06 30.28 29.77 47.20 0.21 6.12 15.20 32.06 7.11 100.00 100.00
ii) The expected return on plan assets is based on market expectation, at the beginning of the period, for returns over the entire life of the related obligation g) As per our best estimate, Rs.70.27 crores is expected to be paid to the Gratuity Fund as contribution in year 2010-11 h) Effect of Increase/ Decrease of 1% in assumed medical cost trend to the Post Retirement Medical liability : 31.3.2010 31.3.2009 Change in Liability for : 1% increase in Discount Rate (26.86) (23.21) Change in Service Cost for : 1% increase in Discount Rate (1.37) (0.99) Change in Liability for : 1% decrease in Discount rate 29.60 25.57 Change in Service cost for :1% decrease in Discount rate 1.65 1.20
f) Investment pattern for Gratuity Fund as on Category of Asset Government of India Asset Corporate Bonds Special deposit Scheme State Government Others Total
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SCHEDULE ‘X’ — (CONTD.)
12) Related Party Disclosures as per Accounting Standard 18 Names of the Related parties : Indraprastha Gas Limited Petronet India Limited Petronet CCK Limited Petronet CI Limited Petronet LNG Limited Bharat Oman Refineries Limited Petroleum Infrastructure Limited Petroleum India International Maharashtra Natural Gas Limited Central UP Gas Limited Sabarmati Gas Limited Bharat Stars Services Private Limited Premier Oil Cachar B.V. Bharat Renewable Energy Limited Matrix Bharat Marine Services Pte. Ltd. Delhi Aviation Fuel Facility Private Limited VB (Brazil) Petroleo Private Ltda. Rs.crores 2009-10 a. b. c. d. e. f. g. h. i. Purchase of goods Sale of goods Rendering of Services Receiving of Services Interest Income Dividend Received Investments and Advance for Investments Loans and advances Outstandings at period end – Receivables – Payables Management Contracts (Employees on deputation) Lease Rentals : 1,448.95 1,883.23 20.63 52.84 210.00 29.48 25.00 1,239.39 3,042.23 56.13 5.25 0.29 2008-09 1,394.24 513.07 4.53 47.44 49.56 27.84 414.00 1,557.84 1,742.46 119.61 10.24 0.27
Nature of Transactions
j. k.
Key Management Personnel (Whole time Directors)
M/s. Ashok Sinha (Chairman & Managing Director), S. Mohan (Director Human Resources) S. Radhakrishnan (Director Marketing), S. K. Joshi (Director Finance) R. K. Singh (Director Refineries)
Details of remuneration to Directors are given in note 22 of Notes to Accounts. 13) Earnings per share Profit / (Loss) after Tax Weighted average number of shares outstanding during the year Basic earnings per share Diluted earnings per share Rs. Crores Crore nos. Rs. Rs. 2009-10 1537.62 36.15 42.53 42.53 2008-09 735.90 36.15 20.35 20.35
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Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONTD.)
14) Deferred Tax Liability As per the requirement of the Accounting Standard 22 - “Accounting for Taxes on Income” the net deferred tax asset credited to Profit and Loss Account during the year is Rs.303.25 crores - excluding Rs.76.69 crores credited as part of earlier year adjustment. (previous year net deferred tax liability credited Rs. 242.13 crores). The period end position is given below: Rs. Crores 31-03-2010 DEFERRED TAX LIABILITY: Depreciation DEFERRED TAX ASSET: Disallowance u/s 43B of the Income tax Act, 1961 including employee benefits. Provisions for mark to market for investments & loans, doubtful debts, claims, etc. Total Deferred Tax Asset Net Deferred Tax Liability 539.59 504.59 1044.18 859.30 365.94 257.63 623.57 1,239.24 1903.48 1,862.81 31-03-2009
15) In compliance with AS – 27 ‘Financial Reporting of Interests in Joint Ventures’, the required information is as under: a) Jointly controlled entities: Country of Incorporation Percentage of ownership interest as on 31.03.2010 Indraprastha Gas Limited Petronet India Limited Petronet CCK Limited Petronet CI Limited (#) Petronet LNG Limited Bharat Oman Refineries Limited Petroleum Infrastructure Limited (#) Central UP Gas Limited Maharashtra Natural Gas Limited Sabarmati Gas Limited Bharat Stars Services Private Limited Premier Oil Cachar B.V. @ Bharat Renewable Energy Limited Matrix Bharat Marine Services Pte. Ltd. Delhi Aviation Fuel Facility Pvt. Ltd. # Company under liquidation India India India India India India India India India India India Netherlands India Singapore India @ Shares sold during the year 22.50 16.00 49.00 11.00 12.50 50.00 50.00 22.50 22.50 25.00 50.00 33.33 50.00 37.00 31.03.2009 22.50 16.00 49.00 11.00 12.50 50.00 50.00 22.50 22.50 25.00 50.00 50.00 33.33 50.00 -
Bharat PetroResources Limited, a 100% subsidiary of the Corporation, holds 50% equity in VB (Brazil) Petroleo Private Ltda., a joint venture company incorporated in Brazil. Annual Report 2009-2010
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SCHEDULE ‘X’ — (CONTD.)
b) In respect of jointly controlled entities, the Corporation’s share of assets, liabilities, income, expenditure, contingent liabilities and capital commitments compiled on the basis of unaudited / audited financial statements received from these joint ventures are as follows: (Rs. Crores) 31.03.2010 (i) Assets - Long Term Assets - Investments - Current Assets (ii) Liabilities - Loans (Secured & Unsecured) - Current Liabilities and Provisions - Deferred Tax (iii) (iv) (v) (vi) Income Expenses Contingent Liabilities Capital Commitments 5,237.71 672.26 49.03 2,755.91 2,698.51 433.99 1,664.94 3,326.95 435.75 40.42 1,501.85 1,397.55 100.10 2,580.94 5,461.99 451.86 1,332.40 3,888.06 115.85 1,013.23 31.03.2009
16) Segment Reporting: The Corporation operates in a single segment - Refinery and Marketing activities, i.e, Downstream petroleum sector. Considering the nature of business and operation, there is no reportable segment (business and/or geographical) in accordance with the requirements of Accounting Standard 17. 17) Disclosure as required by Clause 32 of Listing Agreement Rs. Crores Balance as on 31.03.2010 a) Loans and advances in the nature of loans to subsidiary company - Bharat PetroResources Limited b) c) Loans and advances in the nature of loans to associates Loans and advances in the nature of loans where there is i) No repayment schedule or repayment beyond 7 years - Petronet CCK Limited ii) No interest or interest below Section 372A of Companies Act d) Loans and advances in the nature of loans to firms/ companies in which directors are interested - Bharat Oman Refineries Limited e) Investment by the loanee in the shares of BPCL and its subsidiary company 2,810.10 1,608.26 2,810.10 1,608.26 60.07 50.27 60.07 50.27 327.00 95.00 350.00 95.00 31.03.2009 Maximum amount outstanding during the period 2009-10 2008-09
120
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONTD.)
18. INTANGIBLE ASSETS In accordance with Accounting Standard 26 , details of Intangible Assets recognised and amortised during the year are given below: a) Intangible assets - being amortised
Rs. Crores
USEFUL LIFE (NO. OF MONTHS) AS AT ADDITIONS DELETIONS/ 01-04-2009 RECLASSIFICATION (3) 18.63 11.86 1.18 13.80 1.50 36.54 83.51 80.62 2.89 83.51 27.23 110.74 42.37 31.60 3.14 39.68 23.55 1.50 1.27 0.23 7.78 12.05 10.77 15.80 29.60 5.78 3.52 1.18 0.25 0.30 11.86 11.52 0.22 8.29 26.92 (4) (5) (6) (7) (8) (9) (10) 11.74 0.55 9.30 1.50 31.33 54.42 42.37 AS AT 31-03-2010 UPTO 31-03-2009 THIS YEAR DELETIONS/ RECLASSIFICATION GROSS AMOUNT AMORTISATION NET AMOUNT UPTO AS AT AS AT 31-03-2010 31-03-2010 31-03-2009 (11) 26.92 0.12 0.63 20.30 8.35 56.32 41.14 (12) 18.63 0.34 0.93 8.02 0.23 12.99 41.14 49.02
PARTICULARS
(1) Perennial 36 48 60 60 60
(2)
1. RIGHT OF WAY
2. SOFTWARE
3. SOFTWARE
4. SOFTWARE
5. DEVELOPMENT RIGHTS
6. PROCESS LICENSE
TOTAL
PREVIOUS YEAR
b) Intangible Assets- pending amortisation*
USEFUL LIFE (NO. OF MONTHS) AS AT ADDITIONS 01-04-2009 (3) 5.96 5.96 5.96 2.53 2.53 (4) (5) 5.87 5.87 CAPITALISATIONS GROSS AMOUNT AS AT 31-03-2010 (6) 2.62 2.62 5.96 UPTO 31-03-2009 (7) AMORTISATION THIS YEAR (8) DELETIONS/ RECLASSIFICATION (9) -
Rs. Crores
NET AMOUNT UPTO AS AT AS AT 31-03-2010 31-03-2010 31-03-2009 (10) (11) 2.62 2.62 5.96 (12) 5.96 5.96 -
PARTICULARS
(1)
(2)
1. SOFTWARE
TOTAL
PREVIOUS YEAR
Annual Report 2009-2010
* To be amortised from the time the Intangible Asset starts providing economic benefits Note: There are no internally generated Intangible Assets
121
SCHEDULE ‘X’ — (CONTD.)
19. 19.1 19.2 Capital Commitments and Contingent Liabilities : Capital Commitments : Estimated amount of contracts remaining to be executed on capital account and not provided for 1,300.53 2,697.81 Contingent Liabilities : (a) In respect of taxation 59.88 45.30 (b) Other Matters : i) Surety bonds executed on behalf of other oil companies for excise/customs duties for which BPCL has signed as surety 195.30 166.33 ii) Claims against the Corporation not acknowledged as debts : (a) Excise and customs matters 1,190.86 253.84 (b) Sales tax matters 2,668.30 2,412.98 (c) Others * 263.12 285.25 These include Rs.751.55 crores (previous year Rs. 668.14 crores) against which the Corporation has a recourse for recovery and Rs.29.42 crores (previous year Rs. 30.80 crores) on capital account. * In respect of lands acquired, land owners have claimed higher compensation before various Authorities/ Courts, which are yet to be settled. The estimated contingent liability of Rs. 54.63 crores (previous year Rs. 54.42 crores) in such cases is included above. iii) Claims on account of wages, bonus/ex-gratia payments in respect of pending court cases. 4.55 1.10 iv) Guarantees given on behalf of Subsidiaries/JV's 3,700.43 611.00 20.1 Foreign Exchange losses amounting to Rs.37.42 crores (previous year Rs. 194.58 crores) are regarded as adjustment to Interest cost and debited to Interest expenditure. 20.2 The deferred premium amounting to Rs.90.29 crores (previous year Rs. 123.21 crores) in respect of forward exchange contract will be recognised in the Profit and Loss Account of one or more subsequent accounting periods. 21.1 The Corporation has on the Balance Sheet date, outstanding forward contracts amounting to USD 816.95 million (previous year USD 424.33 million) to hedge the foreign currency exposure towards loans; this includes USD 55 million (previous year USD 107.50 million) in respect of long term loans. The Corporation does not generally hedge the risks on account of foreign currency exposure for the payment of crude oil. Following are the unhedged foreign currency exposures as on 31.03.2010: 31/03/2009 Exposure Type USD Million USD Million Imports 649.63 323.90 Buyers Credit Loan (Short Term) 628.00 55.00 ECB (Long Term) 170.00 200.00 Export Debtors 163.87 25.74 21.2 The Corporation has on the Balance Sheet date the following outstanding derivatives for hedging purposes: Instrument Description Quantity OTC Swap Spread between Petroleum Products and Crude Oil 3.35 million barrels OTC Swap Spread between Dated Brent Crude and Dubai Crude Oil 0.30 million barrels For the year 2009-10, the Corporation has provided for losses on Mark-to-Market basis for outstanding derivatives in accordance with the principle of prudence and other applicable guidelines. Accordingly, Rs. 8.05 crores (previous year Rs. 3.96 crores) has been provided for losses on the above outstanding derivatives. Managerial Remuneration : 2008-09 Rs. Crores Rs. Crores Salary and allowances 0.76 0.54 Contributions to Provident Fund and other funds 0.10 0.09 Other benefits 0.63 0.68 1.49 1.31 Remuneration to Auditors (net of service tax) : (a) (b) Audit fees Fees for other services-certification. Rs. Crores 0.16 0.11 0.27 2008-09 Rs. Crores 0.16 0.12 0.28 Rs. Crores 31/03/2009 Rs. Crores
20.
21.
22.
23.
122
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONTD.)
24. Licensed Capacity, Installed Capacity (as certified by the Management) and actual production in respect of goods manufactured : Licensed Capacity (a) Fuel refinery (i) In million metric tonnes p.a. NA (NA) (ii) Production in kilolitres (KL) Light distillates Middle distillates Others (b) Aromatics (in MT) (i) Benzene * (ii) Toluene * (iii) Mixed Aromatic Solvent (c) MTBE in M.T. # (d) New Solvent Unit (i) Solvent (SBP 55-115) in M.T. (ii) Solvent (Food Grade Hexane) in M.T. (e) Poly Proplyene Feedstock in M.T. (f) Lubricants in M.T. (g) Lube Oil Base Stock (LOBS) in M.T. (h) Sulphur in M.T. (i) (j) Natural Rubber Modified Bitumen in M.T. Bitumen Emulsion (Single Shift) in M.T. 185,500 (185,500) 67,600 (67,600) 15,000 (15,000) NA (NA) NA (NA) NA (NA) NA (NA) NA (NA) NA (NA) NA (NA) NA (NA) 50,000 (50,000) 5,000 (5,000) 65,000 (65,000) 10,000 (10,000) 5,000 (5,000) 6,500 (6,500) 14,000 (14,000)
Installed Capacity 21.50 @ (19.50) 192,900 (192,900) 73,100 (73,100) 15,000 (15,000) 30,000 (30,000) 40,000 (40,000) 25,000 (25,000) 60,000 (60,000) 153,400 (153,400) 180,000 (180,000) 117,667 (117,667) 65,000 (65,000) 27,600 (27,600) 1,500 (1,500) 50,000 (15,000) 8,820 (8,820) 5,000 (5,000) 2,500 (2,500) 1,000 (1,000)
Actual Production 20.41 (19.95) 7,663,743 (6,951,676) 12,675,269 (12,247,355) 3,397,265 (3,621,216) 57,742 (79,653) 23,265 (28,375) 28,095 (26,009) 8,325 (2,861) 23,451 (23,220) 63,593 (61,924) 209,301 (151,788) 185,452 (155,084) 64,637 (77,697) 4,775 (1,398) 4,535 (3,884) 8,239 6,658 (6,644) 991 (1,512) -
(k) Diesel Additive (Single Shift) in M.T. (l) Propylene in M.T.
(m) Petroleum Hydrocarbon Solvent in M.T.
Poly Iso Butene in M.T. (o) Cable Jelly (Poly Isobutene Unit) in M.T. (p) Others (Poly Isobutene Unit) in M.T.
@ The installed capacity of Kochi Refinery has been enhanced by 2 MMTPA to 9.5 MMTPA in July 2009. * For Kochi Refinery, the combined capacity of Benzene and Toluene is 99200 MT as against the individual capacity of 87200 MT and 50000 MT respectively, . # MTBE is used for own manufacture of Motor Spirit. Annual Report 2009-2010
123
SCHEDULE ‘X’ — (CONTD.)
25. Raw materials consumed : Quantity KL Crude Oil Base oil Additive Ethanol Reformate Others 41,675 (24,879) 22,540 (62,765) MT 20,375,545 (19,960,287) 13,023 (9,948) 23,069 10,746 (10,435) Value Rs. Crores 50,064.15 (53,493.67) 155.06 (118.62) 179.01 (125.06) 57.20 (165.77) 98.83 38.20 (33.81) 50,592.45 (53,936.93) 26. Finished goods purchased, sold and stocked : Petroleum Products Light Distillates Middle Distillates Others Aromatics (a) Benzene (b) Toluene Lubricants Others (Grocery) 6,299 (3,414) 2,526 (679) 29,065 (40,231) 14.32 (14.92) 7.88 (2.84) 170.00 (190.68) 0.08 (0.15) 4,631.30 (6,126.78) 2,287 (2,657) 13.88 (13.92) 62,199.97 (67,947.07) Opening Stock Quantity Value MT Rs. Crores 534,932 1,671.62 (592,548) 1,012,042 (985,902) 205,608 (225,774) (2,398.23) 2,434.27 (3,070.13) 333.13 (449.83) Purchases Quantity Value MT Rs. Crores 6,218,172 21,758.86 (5,543,678) 12,240,136 (10,898,893) 373,932 (205,225) (20,403.81) 39,555.59 (47,065.44) 871.64 (463.90)
124
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONTD.)
Sales Petroleum Products Light Distillates Middle Distillates Others Aromatics (a) Benzene (b) Toluene Lubricants Others (Grocery) 59,582 (76,750) 23,861 (26,526) 231,121 (211,183) 278.10 (377.66) 107.44 (137.12) 1,882.07 (1,825.54) 125,297.93 (129,175.69) 4,430 (6,299) 1,929 (2,526) 44,278 (29,065) 22.29 (14.32) 9.00 (7.88) 232.19 (170.00) 0.04 (0.08) 8,383.49 (4,631.30) Quantity MT 11,455,039 (10,436,558) 22,079,974 (20,859,169) 3,702,024 (3,791,011) Value Rs. Crores 41,946.30 (40,323.15) 72,035.23 (76,613.09) 9,048.79 (9,899.13) Closing Stock Quantity MT 622,423 (534,932) 1,507,978 (1,012,042) 186,752 (205,608) Value Rs. Crores 2,694.23 (1,671.62) 4,933.96 (2,434.27) 491.78 (333.13)
(a) Purchases exclude inter product transfers. (b) Purchases exclude crude oil purchased for resale (Rs. 947.69 crores). (c) Purchases of petroleum products exclude payments to third parties for processing fees Rs.25.22 crores (previous year Rs. 25.74 crores) but include own consumption and samples Rs.93.99 crores (previous year Rs. 104.99 crores). (d) Sales exclude subsidy/ Oil Marketing Companies GOI Special Bonds worth Rs. 5265.03 crores (previous year Rs. 16,216.38 crores) issued by Government of India and Sale of Crude Oil worth Rs. 936.71 crores (previous year - Rs. Nil) 27. Value of imports calculated on C.I.F. basis : (a) Raw Materials (including Crude Oil) (b) Capital goods (c) Components and spare parts (including packages, chemicals and catalysts) 28. Expenditure in foreign currency (on cash basis) : (a) (b) (c) (d) (e) Purchase of products Professional Consultancy Fees Royalty Interest Other matters Rs. Crores 5,620.63 4.29 12.35 63.25 931.20 Rs. Crores 36,397.79 322.15 153.69 2008-09 Rs. Crores 37,825.24 142.57 57.24 2008-09 Rs. Crores 5,867.24 12.39 6.21 185.59 1,164.59
Annual Report 2009-2010
125
SCHEDULE ‘X’ — (CONTD.)
29. Value of raw materials, stores/spare parts and components including packages, chemicals & catalysts consumed (on derived basis) : Imported Indigenous Total Rs. Crores % Rs. Crores % Rs. Crores Crude Oil 36,344.81 72.60 13,719.34 27.40 50,064.15 (39,184.20) (73.25) (14,309.47) (26.75) (53,493.67) Base Oil Additive Ethanol Reformate Others Stores/Spare parts and Components (including packages, chemicals & catalysts) 30. Earnings in foreign exchange : 0.03 (18.38) 12.21 (6.25) 98.83 7.87 (17.32) 73.48 (59.46) 0.02 (15.50) 6.82 (5.00) 100.00 20.60 (51.21) 19.45 (18.25) 155.03 (100.24) 166.80 (118.80) 57.20 (165.77) 30.33 (16.50) 304.23 (266.43) 99.98 (84.50) 93.18 (95.00) 100.00 (100.00) 79.40 (48.79) 80.55 (81.75) 155.06 (118.62) 179.01 (125.06) 57.20 (165.77) 98.83 38.20 (33.81) 377.71 (325.89)
2008-09 Rs. Crores Rs. Crores Exports on FOB basis # 10,301.35 6,213.64 Exports on CFR basis 353.78 # Includes receipt of Rs. 1636.56 crores (previous year Rs. 1,732.59 crores) in Indian currency out of the repatriable funds of foreign airline customers and Rs. 12.18 crores (previous year Rs. 8.44 crores) of INR exports to Nepal and Bhutan. 2008-09 Rs. Crores 2.29 0.52 6.75 1.14 2008-09 Rs. Crores 0.81 2.73 2.66 2008-09 Rs. Crores 22.56 7.68 2008-09 Rs. Crores 10,446.75
31. Expenditure on social overheads : (a) Expenditure on township [net of recovery Rs. 0.89 crores (previous year Rs. 0.96 crores)] (b) Medical facilities over and above statutory requirements (c) Social and cultural activities (d) Depreciation on capital assets 32. Profit and Loss Account includes expenditure on : (a) Entertainment (b) Public relations and publicity (c) Remuneration to staff employed for public relations work 33. Research and development (a) Revenue expenditure (b) Capital expenditure Rs. Crores 27.86 6.92 Rs. Crores 10,084.53 Rs. Crores 0.82 2.30 3.14 Rs. Crores 4.06 0.52 15.36 1.09
34. Value Added
126
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONTD.)
35. STATUTORY INFORMATION PURSUANT TO PART – IV OF SCHEDULE – VI TO THE COMPANIES ACT, 1956 BALANCE SHEET ABSTRACT AND COMPANIES GENERAL BUSINESS PROFILE I. Registration Details Registration No. Balance Sheet Date II. 8931/TA/III 0F 1952 – 53 3 1 Date 0 3 Month 2 0 1 0 Year Right Issue N I N I L L Private Placement State Code 1 1
Capital raised during the year (Rs. Crores) Public Issue N I N I L L Bonus Issue
III
Position of Mobilisation and Deployment of Funds (Rs. Crores ) Total Liabilities 5 3 2 7 2 . 3 6 Sources of Funds : (excluding deferred tax liability) Paid–up Capital 3 6 1 . 5 4 # Secured Loans 1 0 4 4 3 . 8 7
Total Assets 5 3 2 7 2 . 3 6 Reserves & Surplus 1 2 7 2 5 . 1 7 Unsecured Loans 1 1 7 5 1 . 3 3
#
Including Share Application Money Suspense Rs. 21,000 Application of Funds : Net Fixed Assets 1 6 1 8 7 . 1 0 * Net Current Assets 6 4 5 2 . 7 8 Accumulated losses N I L Investments 1 3 5 0 1 . 3 3 Misc. Expenditure N I L
*Includes Capital work–in–progress
IV.
Performance of Company (Rs. crores) Turnover 1 3 3 7 3 9 . 9 6 + – Profit/Loss Before Tax + 2 3 6 6 . 0 5 Earning per Share in Rs. 4 2 . 5 3 * Includes miscellaneous income + * Total Expenditure 1 3 1 3 7 3 . 9 1 + – Profit/Loss After Tax 1 5 3 7 . 6 2 Dividend rate % 1 4 0
Annual Report 2009-2010
127
SCHEDULE ‘X’ — (CONTD.)
V. Generic Names of Three Principal Products/Services of Company (as per monetary terms) Item Code No. (ITC Code) Product Description Item Code No. (ITC Code) Product Description Item Code No. (ITC Code) Product Description 2 7 1 0 PETROLEUM PRODUCTS 2 9 0 2 BENZENE 2 7 1 0 LUBRICANTS
Note : ITC code of products as per Indian Trade Classification based on harmonised commodity description and coding system by Ministry of Commerce, Directorate General of Commercial Intelligence & Statistics. 36. Figures of the previous year have been regrouped wherever necessary, to conform to current year presentation. Signature to Schedules `A’ to `X’ For and on behalf of the Board of Directors Sd/– ASHOK SINHA Chairman and Managing Director
Sd/– S. K. JOSHI Director (Finance) Place : Mumbai Dated : 27th May, 2010
Sd/– S. V. KULKARNI Company Secretary
128
Bharat Petroleum Corporation Limited
CASH FLOW STATEMENT
For the year ended 31st March Notes A Cash Flow from Operating Activities Net Profit Before tax and prior period items 2,421.48 1,017.57 2010 Rs. Crores 2009 Rs. Crores
Adjustments for : Depreciation Interest Foreign Exchange Fluctuations (Profit) / Loss on Sale of fixed assets (Profit) / Loss on Sale of investments Income from Investments Dividend Received Other Non-Cash items Note 4 Note 3 1,242.32 1,010.95 (274.04) (4.07) 221.07 (1,156.25) (108.27) 919.58 1,075.53 2,166.37 631.25 1.77 515.42 (692.68) (118.55) (31.33)
Operating Profit before Working Capital Changes
4,272.77
4,565.35
(Invested in)/Generated from : Trade Receivables Other Receivables Inventory Current Liabilities & Payables (1,309.58) (2,121.25) (5,210.95) 3,787.63 178.80 130.66 3,767.75 (2,018.72)
Cash generated from Operations
(581.38)
6,623.84
Direct Taxes paid
(878.68)
(395.56)
Cash flow before prior period items
(1,460.06)
6,228.28
Prior Period Items Non-Cash items
(55.43) 0.34
(13.46) (2.48)
Net Cash from Operating Activities
(1,515.15)
6,212.34
Annual Report 2009-2010
129
CASH FLOW STATEMENT — (CONTD.)
For the year ended 31st March Notes B Net Cash Flow from Investing Activities Purchase of fixed assets Sale of fixed assets (Investment)/Sale of Investment in Joint Venture Companies Sabarmati Gas Ltd. Premier Oil Cachar B.V. Bharat Stars Services Pvt. Ltd. Maharashtra Natural Gas Ltd. Delhi Aviation Fuel Facility Private Ltd. VI eTrans Pvt. Ltd. Bharat Renewable Energy Ltd. Matrix Bharat Marine Services Pte. Ltd. (Investment)/Sale of Investment in Subsidiaries Bharat Petro Resources Ltd. Advance for Investments Purchase of Investments Sale of Investments Income from Investment Dividend Received (200.00) (2,563.87) 6,358.22 1,261.12 108.27 1,538.43 (402.99) (18,523.13) 10,691.55 546.96 118.55 (9,908.75) (39.95) 0.10 (5.00) (22.48) # (1.60) 0.01 (1.00) (8.41) (3,369.81) 11.83 (2,332.33) 3.64 2010 Rs. Crores 2009 Rs. Crores
C
Net Cash Flow from Financing Activities Long term Borrowings Repayment of loans Interest paid Dividend Paid Corporate Dividend Tax Realised gains of exchange differences on foreign currency loans Net Cash Flow from Financing Activities 2,210.38 (286.43) (1,041.83) (253.15) (31.45) 54.57 652.09 675.37 1,469.00 (1,186.30) (2,182.13) (144.62) (9.16) (232.11) (2,285.32) (5,981.73)
D
Net Increase / (Decrease) in Cash and Cash equivalents (A+B+C) # Value Rs 37,000.00
130
Bharat Petroleum Corporation Limited
CASH FLOW STATEMENT — (CONTD.)
Cash and Cash equivalents as at 31st March Notes Cash in Hand Cash at Bank Cash in transit Cash Credit from scheduled banks CBLOs Unsecured loans from scheduled banks / ICDs / CPs 2009 Rs. Crores 124.49 315.39 1.67 (2,497.70) (150.00) (14,915.25) (17,121.40) Cash and Cash equivalents as at 31st March Cash in Hand Cash at Bank Cash in transit Cash Credit from scheduled banks CBLOs Unsecured loans from scheduled banks / ICDs / CPs Net change in Cash and Cash equivalents 2010 98.32 243.97 0.07 (6,714.15) (500.00) (9,574.24) (16,446.03) 675.37 2008 Rs. Crores 395.84 565.75 (930.12) (1,000.00) (10,171.14) (11,139.67) 2009 124.49 315.39 1.67 (2,497.70) (150.00) (14,915.25) (17,121.40) (5,981.73)
Explanatory notes to Cash Flow Statement 1. The Cash Flow Statement is prepared in accordance with the format prescribed by Securities and Exchange Board of India and as per Accounting Standard 3 as notified by the Central Government. 2. In Part-A of the Cash Flow Statement, figures in brackets indicate deductions made from the Net Profit for deriving the net cash flow from operating activities. In Part-B and Part-C, figures in brackets indicate cash outflows. 3. The net profit / loss arising due to conversion of current assets / current liabilities, receivable / payable in foreign currency is furnished under the head “Foreign Exchange Fluctuations”. 4. “Other Non-Cash items” include excess provisions written back, foreign exchange adjustments, diminution in value of investment, amortisation of Capital grant, Bad debts and materials written off and miscellaneous adjustments not affecting cash flow. 5. Figures of the previous year have been regrouped wherever necessary, to conform to current year’s presentation.
For and on behalf of the Board of Directors Sd/ASHOK SINHA Chairman and Managing Director
Place : Mumbai Dated : 27th May, 2010
As per our attached report of even date For and on behalf of For and on behalf of B. K. KHARE & CO. K. VARGHESE & CO. Chartered Accountants Chartered Accountants FR No: 105102W FR No: 004525S Sd/Sd/PADMINI KHARE KAICKER K. VARGHESE Partner Partner Membership No. 44784 Membership No. 20674
Annual Report 2009-2010
131
CONSOLIDATED FINANCIAL STATEMENTS OF BHARAT PETROLEUM CORPORATION LIMITED
132
Bharat Petroleum Corporation Limited
AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENTS
To The Board of Directors of Bharat Petroleum Corporation Limited 1. We have audited the attached Consolidated Balance Sheet of Bharat Petroleum Corporation Limited and its subsidiaries and its joint ventures as at March 31, 2010 and also the Consolidated Profit & Loss Account and Consolidated Cash Flow Statement for the year ended on that date annexed thereto. These consolidated financial statements are the responsibility of Bharat Petroleum Corporation Limited’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Auditing and Assurance Standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not audit the financial statements of the subsidiaries and joint ventures, whose financial statements reflect the Group’s share of total assets of Rs.14,822.98 crores as at March 31, 2010 and the Group’s share of total revenues of Rs.17,214.07 crores and net cash outflows amounting to Rs.530.07 crores for the year ended on that date as considered in the consolidated financial statements. These financial statements have been audited by other auditors whose reports have been furnished to us and our opinion, insofar as it relates to the amounts included in respect of these subsidiaries and joint ventures, is based solely on the report of the other auditors. We have relied on the unaudited financial statements of four joint ventures, which reflect the Group’s share of total assets of Rs.103.72 crores as at March 31, 2010 and the Group’s share of total revenues of Rs.86.96 crores and net cash inflows amounting to Rs.9.10 crores for the year ended on that date as considered in the consolidated financial statements. We have neither carried out an audit or a review in respect of these financial statements. We report that consolidated financial statements have been prepared by the management of Bharat Petroleum Corporation Limited in accordance with the requirements of Accounting Standard (AS) 21 – Consolidated Financial Statements and Accounting Standard (AS) 27- “Financial Reporting of Interests in Joint Ventures”, notified by the Central Government. Without qualifying our opinion, we draw attention to: a. Note No. 9 of Schedule X, in respect of impairment of assets wherein, being technical matters subject to uncertainty we have relied on the estimates and assumptions made by the Company in arriving at recoverable value of assets, based on desired margins. b. Recovery of overdue amount of Rs.278.54 crores from a party in whose case arbitration award has been passed and consent terms agreed between the parties have been filed with the Hon’ble Bombay High Court. We have relied on the Company’s representation that the dues are recoverable as per consent terms and hence no provision is considered necessary. Based on our audit and on the consideration of the separate audit reports of the other auditors on separate financial statements and on the other financial information of the components and to the best of our information and the explanations given to us, we are of the opinion that the attached consolidated financial statements, give a true and fair view in conformity with the accounting principles generally accepted in India: i) in case of the Consolidated Balance Sheet, of the consolidated state of affairs of Bharat Petroleum Corporation Limited, its subsidiaries, and its interests in joint ventures as at March 31, 2010; ii) in case of the Consolidated Profit and Loss Account, of the consolidated results of operations of Bharat Petroleum Corporation Limited, its subsidiaries, and its interests in joint ventures for the year ended on that date; and iii) in case of the Consolidated Cash Flow Statement, of the consolidated cash flows of Bharat Petroleum Corporation Limited, its subsidiaries, and its interests in joint ventures for the year ended on that date. For and on behalf of K.VARGHESE AND CO. FR No:004525S Sd/K.Varghese Partner Membership No: 20674
2.
3.
4.
5.
6.
7.
For and on behalf of B.K.KHARE AND CO. FR No: 105102W Sd/Padmini Khare Kaicker Partner Membership No: 44784 Mumbai Dated: May 27, 2010
Annual Report 2009-2010
133
CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2010
I. SOURCES OF FUNDS 1. Shareholders' funds : Share Capital Reserves and Surplus 2. Minority Interest : Share Capital Reserves and Surplus Loan funds : Secured Loans Unsecured Loans C SCHEDULE A B Rs. Crores 361.54 13,781.40 14,142.94 282.09 657.48 939.57 13,514.68 13,177.40 26,692.08 1,147.70 42,922.29 385.45 30,202.29 (13,452.36) 16,749.93 7,821.67 24,571.60 11,289.57 642.71 14,109.23 2,600.87 728.43 3,801.19 3,646.78 24,886.50 16,091.68 2,765.16 18,856.84 6,029.66 3.30 42,922.29 31/03/2009 Rs. Crores 361.54 12,949.68 13,311.22 282.09 619.36 901.45 6,681.34 17,557.82 24,239.16 1,525.65 39,977.48 385.45 26,354.57 (12,048.34) 14,306.23 6,172.65 20,478.88 15,698.54 701.46 7,870.59 1,505.85 1,348.56 3,102.56 2,978.24 16,805.80 12,275.06 1,820.89 14,095.95 2,709.85 3.30 39,977.48
3.
II.
Deferred tax liability (net) TOTAL APPLICATION OF FUNDS 1. Goodwill (on consolidation) 2. Fixed Assets : Gross block Less : Depreciation and amortisation Net block Capital work-in-progress 3. 4. 5. Investments Advance for Investments Current assets, loans and advances : Inventories Sundry debtors Cash and bank balances Other current assets Loans and advances Less : Current liabilities and provisions : Liabilities Provisions Net current assets
4.
D
E F FA G H I J K L M
Miscellaneous Expenditure to the extent not written off or adjusted TOTAL Statement of Significant Accounting Policies and Notes forming part of Accounts For and on behalf of the Board of Directors Sd/ASHOK SINHA Chairman and Managing Director
6.
Place : Mumbai Dated : 27th May, 2010
X As per our attached report of even date For and on behalf of For and on behalf of B. K. KHARE & CO. K. VARGHESE & CO. Chartered Accountants Chartered Accountants FR No: 105102W FR No: 004525S Sd/Sd/PADMINI KHARE KAICKER K. VARGHESE Partner Partner Membership No. 44784 Membership No. 20674
134
Bharat Petroleum Corporation Limited
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2010
Rs. Crores SCHEDULE INCOME Sale of products,crude oil & related income Less: Excise Duty Paid Miscellaneous income Increase/(Decrease) in Inventory TOTAL EXPENDITURE Purchase of products and crude oil for resale Raw materials consumed Packages consumed Excise Duty on Inventory differential Other Duties, taxes etc. and other charges applicable to products Transportation Consumption of stores, spares and materials Power and Fuel Employees' remuneration and other benefits Interest Other operating and administration expenses Depreciation and amortisation Miscellaneous Expenditure written off TOTAL Profit Prior period income/(expenses) net Profit before tax Provision for Taxation - Current Tax - Fringe Benefit Tax - Deferred Tax Asset (Net) - Short provision for Taxation in earlier years provided for Profit after tax Minority Interest Net Income of the Group Transfer from / (to) Debenture Redemption Reserve Balance brought forward Disposable Profit Appropriations: Proposed dividend Corporate Dividend Tax on proposed dividend Transfer to General Reserve Balance Carried to Balance Sheet Earnings per Share - Rs. - Basic - Diluted Statement of Significant Accounting Policies and Notes forming part of Accounts N 133,749.10 (9,932.38) 123,816.72 2,365.20 5,103.10 131,285.02 56,766.73 58,319.99 133.17 234.05 1,952.76 2,704.80 93.00 244.83 2,252.15 1,124.66 3,164.47 1,444.56 128,435.17 2,849.85 (77.72) 2,772.13 1,324.75 (301.27) 28.67 1,719.98 87.62 1,632.36 (700.00) 144.83 1,164.81 548.48 96.51 644.99 260.65 259.17 45.15 45.15 X 2008-09 Rs. Crores 147,336.82 (10,779.70) 136,557.12 1,435.78 (1,549.24) 136,443.66 60,119.92 61,895.03 107.51 (13.15) 1,318.50 2,471.96 116.12 73.64 1,981.30 2,404.32 3,560.35 1,261.71 3.38 135,300.59 1,143.07 (8.50) 1,134.57 674.06 14.40 (285.11) 7.09 724.13 90.37 633.76 (300.00) 262.74 686.87 295.40 54.96 350.36 191.68 144.83 17.53 17.53
O P
Q
R S T U V
W
For and on behalf of the Board of Directors Sd/ASHOK SINHA Chairman and Managing Director
Place : Mumbai Dated : 27th May, 2010
As per our attached report of even date For and on behalf of For and on behalf of B. K. KHARE & CO. K. VARGHESE & CO. Chartered Accountants Chartered Accountants FR No: 105102W FR No: 004525S Sd/Sd/PADMINI KHARE KAICKER K. VARGHESE Partner Partner Membership No. 44784 Membership No. 20674
Annual Report 2009-2010
135
SCHEDULE ‘A’ — SHARE CAPITAL (CONSOLIDATED)
Rs. Crores Authorised 450,000,000 equity shares of Rs.10 each Issued, subscribed and paid-up 361,542,124 (previous year 361,542,124) equity shares of Rs.10 each fully paid-up Total Share Application Money Suspense Account Total # Value Rs. 21,000 450.00 450.00 361.54 361.54 # 361.54 31/03/2009 Rs. Crores 450.00 450.00 361.54 361.54 # 361.54
SCHEDULE ‘B’ — RESERVES AND SURPLUS (CONSOLIDATED)
Rs. Crores 1. Capital Reserve As per last Balance Sheet Less : Amortisation of Capital Grant Capital Reserve on acquisition of subsidiaries Debenture Redemption Reserve As per last Balance Sheet Add: Transfer from Profit & Loss Account Foreign Currency Translation Reserve General Reserve As per last Balance Sheet Add : Transfer from Profit & Loss Account Surplus as per Profit & Loss Account Sub-total (1+2+3+4+5+6) Less: Minority Interest Share of interest in Joint Ventures General Reserve Surplus as per Profit & Loss Account Securities Premium Foreign Currency Translation Reserve Total 53.29 (0.09) 53.20 66.45 66.45 300.00 700.00 1,000.00 (142.55) 12,890.27 253.40 13,143.67 18.80 14,139.57 657.48 13,482.09 33.57 240.37 24.41 0.96 299.31 13,781.40 31/03/2009 Rs. Crores 53.38 (0.09) 53.29 66.45 66.45 300.00 300.00 72.48 12,708.72 181.55 12,890.27 (73.97) 13,308.52 619.36 12,689.16 26.04 218.80 14.43 1.25 260.52 12,949.68
2. 3.
4. 5.
6.
7.
136
Bharat Petroleum Corporation Limited
SCHEDULE ‘C’ — LOAN FUNDS (CONSOLIDATED)
Rs. Crores 31/03/2009 Rs. Crores
Secured Loans Debentures 10.35% Secured Non-Convertible debenture 2010 (refer note 3 (a) of Schedule 'X'-B) [Due for repayment within one year Rs. 1,000 crores (previous year NIL)] 7.73% Secured Non-Convertible debenture 2012 (refer note 3 (b) of Schedule 'X'-B) Banks Working Capital Loans/Cash Credit (Secured in favour of the participating banks ranking pari passu inter-alia by hypothecation of raw materials, finished goods, stock-in-process, book debts, stores, components and spares and all movables both present and future) Interest accrued and due Term Loan [Due for repayment within one year Rs. 1,200 crores (previous year NIL)] [Secured by pledge of 6.35% Oil Marketing Companies GOI Special Bonds 2024 of Rs. 3000 crores] Collateralised Borrowing and Lending Obligation (CBLO) through Clearing Corporation of India Ltd. [Secured by Oil Marketing Companies GOI Special Bonds of Rs. 1,400 crores (previous year Rs. 1,300 crores)] Share of interest in Joint Ventures Unsecured Loans Fixed deposits [Due for repayment within one year Rs. 0.24 crores (previous year Rs.3.01 crores)] Short Term (From Banks) Rupee Loans Foreign Currency Loans Syndicated Loans from various banks (repayable in foreign currency) [Due for repayment within one year Rs. Nil (previous year Rs. 606.07 crores)] Others Oil Industry Development Board [Due for repayment within one year Rs 134.61 crores (previous year Rs. 211.11 crores)] Share of interest in Joint Ventures Total
1,000.00
1,000.00
1,000.00
-
6,881.72
2,500.08
29.72 1,728.55
13.90 535.92
500.00
150.00
11,139.99 2,374.69 13,514.68 0.24
4,199.90 2,481.44 6,681.34 3.45
3,300.19 6,274.24 1,255.48
12,855.14 2,060.25 1,829.61
961.26
809.37
11,791.41 1,385.99 13,177.40 26,692.08
17,557.82 17,557.82 24,239.16
Annual Report 2009-2010
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138
Rs. Crores
SCHEDULE 'D' - FIXED ASSETS (CONSOLIDATED)
PARTICULARS
AS AT 01-04-2009
AS AT 31-03-2010
UPTO 31-03-2010
NET BLOCK AS AT AS AT 31-03-2010 31-03-2009
(2) 417.99 104.33 4,351.28 252.56 8,944.20 4,138.38 175.67 169.11 1,436.40 3,799.12 1,743.90 95.00 25,627.94 726.63 26,354.57 24,562.77 627.66 25,190.43 3) 3,182.53 743.18 3,925.71 1,163.72 99.13 1,262.85 77.50 0.50 78.00 98.55 0.16 98.71 28,732.97 1,469.32 30,202.29 25,627.94 726.63 26,354.57 11,840.08 208.26 12,048.34 10,670.65 168.17 10,838.82 1,401.32 64.08 1,465.40 1,229.98 40.14 1,270.12 353.06 325.87 28.08 8.16 24.36 4,144.02 2,045.41 123.08 3,799.12 797.21 49.56 353.06 121.77 14.36 103.88 2.56 1,537.72 348.73 69.56 2.28 8.16 23.58 61.02 0.35 61.37 60.55 0.05 60.60 416.01 4,144.02 895.40 63.92 13,180.38 271.98 13,452.36 11,840.08 208.26 12,048.34 56.20 63.25 327.90 58.47 878.56 944.38 16.26 26.62 1.07 1.79 5.16 2.75 26.21 0.69 1.97 2.78 473.12 165.79 4,674.02 308.28 9,796.55 5,082.07 189.96 192.95 17.15 570.42 123.80 3,917.08 2,040.57 77.30 99.14 2.27 92.80 12.99 447.11 261.87 11.82 13.71 0.27 1.80 2.61 14.08 4.47 1.74 2.03 19.15 661.42 134.18 4,350.11 2,297.97 87.38 110.82
GROSS BLOCK ADDITIONS DEDUCTIONS ON ACCOUNT OF RETIREMENT / RECLASSIFICATIONS (3) (4) (5) (9) (10) 473.12 146.64 4,012.60 174.10 5,446.44 2,784.10 102.58 82.13 1,121.71 1,150.01 59.16 15,552.59 1,197.34 16,749.93 13,787.86 518.37 14,306.23
DEPRECIATION AND AMORTISATION UPTO THIS YEAR DEDUCTIONS 31-03-2009 ON ACCOUNT OF RETIREMENT / RECLASSIFICATIONS (6) (7) (8)
(11) 417.99 87.18 3,780.86 128.76 5,027.12 2,097.81 98.37 69.97 1,087.67 946.69 45.44 13,787.86 518.37 14,306.23 13,892.12 459.50 14,351.62
Bharat Petroleum Corporation Limited
4) 5) 6)
1.
(1) LAND (a) Freehold (b) Leasehold 2. BUILDINGS 3. RAILWAY SIDINGS 4. PLANT and MACHINERY 5. TANKS and PIPELINES 6. FURNITURE and FITTINGS 7. VEHICLES 8. OTHER ASSETS (a) Dispensing Pumps (b) LPG Cylinders and Allied Equipment (c) Sundries 9. INTANGIBLE ASSETS (refer note 20 of Schedule 'X' B) TOTAL Share of interest in Joint Ventures GRAND TOTAL Total 2008-09 Share of interest in Joint Ventures Grand Total 2008-09
NOTES : 1) Land:a) Freehold land of the group includes Rs. 149.10 crores (previous year Rs. 99.07 crores) for which conveyance deed / registration / execution of title deeds / mutation are pending. b) Leasehold land of the group includes gross block Rs. Nil crores (previous year Rs. 1.51 crores) which though in possession, the lease deeds are yet to be registered. c) Freehold land of BPCL includes land costing Rs. 2.13 crores (previous year Rs. 2.13 crores) which is in the process of being surrendered to competent authority. 2) Buildings pertaining to BPCL include:a) Ownership flats of Rs.48.16 crores (previous year Rs. 47.92 crores) in proposed / existing co-operative societies. b) Residential flats and office complex which are in possession of BPCL and in respect of which the lease deeds are yet to be registered: - Gross Block Rs. 30.31 crores (previous year Rs. 30.87 crores), Net Block Rs. 27.80 crores (previous year Rs. 28.72 crores).
Land, Plant & Machinery, Tanks & Pipelines, Railway Sidings and Buildings jointly owned by BPCL in varying extent with other Oil Companies / Railways :- Gross Block Rs. 192.35 crores (previous year Rs. 192.41 crores), Cumulative Depreciation Rs. 86.18 crores (previous year Rs. 77.67 crores), Net Block Rs. 106.17 crores (previous year Rs. 114.74 crores). Buildings, Plant & Machinery and Sundries includes Rs.19.71 crores (previous year Rs. 19.71 crores) towards assets, ownership of which does not vest with the group. This amount has been amortised over a period of five years. The amount charged off as depreciation for the current year is Rs. 1.51 crores (previous year Rs. 1.92 crores). Gross Block of the group includes Rs.20.55 crores (previous year Rs. 6.62 crores) towards assets which are identified as held for disposal during the year in respect of which additional depreciation of Rs. 6.06 crores (previous year Rs. 4.13 crores) has been provided to recognise the expected loss on disposal. Interest in Joint Venture includes Rs. 1.49 crores (previous year Rs. 1.49 crores) towards land obtained under perpetual lease for which the lease agreement is not yet executed.
SCHEDULE ‘E’ — CAPITAL WORK-IN-PROGRESS (CONSOLIDATED)
31/03/2009 Rs. Crores Capital work-in-progress (at Cost) Work-in-progress Capital Advances (Unsecured, Considered good ) Capital Stores including lying with contractors Capital goods in transit Intangible assets pending amortisation (refer note 21 of Schedule 'X'-B) Construction period expenses Opening balance Add : Expenditure during the year Establishment charges Interest Depreciation Others Less: Allocated to assets capitalised during the year Closing balance Share of interest in Joint Ventures Total 37.26 76.78 27.41 207.71 (95.95) 111.76 4,139.42 7,821.67 24.77 14.02 0.69 9.18 72.14 (5.87) 66.27 3,672.43 6,172.65 66.26 23.48 3,168.91 151.75 213.26 33.95 2.62 1,989.73 125.08 299.64 13.54 5.96 Rs. Crores
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SCHEDULE ‘F’ — INVESTMENTS (CONSOLIDATED)
Rs. Crores CURRENT (Current Investments are valued at lower of cost or fair market value) IN GOVERNMENT SECURITIES NON TRADE - QUOTED @ Less : Provision for dimunition in value of investment LONG TERM IN GOVERNMENT SECURITIES NON TRADE - QUOTED @ IN SHARES, DEBENTURES AND BONDS TRADE - UNQUOTED Less : Provision for dimunition in value of investment IN SHARES, DEBENTURES AND BONDS TRADE - QUOTED NON TRADE - UNQUOTED IN ASSOCIATION OF PERSONS NON TRADE - UNQUOTED Capital Contribution in Petroleum India International Share in accumulated surplus of Petroleum India International Share of interest in Joint Ventures - UNQUOTED ** Total 31/03/2009 Rs. Crores
11,240.67 (1,117.00) 10,123.67
7,667.64 (288.03) 7,379.61
64.33 64.33 99.47 (25.08) 74.39 561.76 0.01 0.01
8,151.02 8,151.02 63.25 (25.08) 38.17 0.01 0.01
10.00 12.65 10,846.81 442.76 11,289.57
10.00 12.98 15,591.79 106.75 15,698.54
@ Refer note 8 of Schedule 'X'-B ** Includes investment made by Petronet LNG of 67,715,000 equity shares of Rs. 10 each in Adani Petronet (Dahej) Port Pvt. Ltd. under lock in for a period of 5 years from the date of commercial operation of the investee company.
SCHEDULE ‘FA’ — ADVANCE FOR INVESTMENTS (CONSOLIDATED)
Rs. Crores Share Application Money / Advance towards equity pending allotment Total 642.71 642.71 31/03/2009 Rs. Crores 701.46 701.46
140
Bharat Petroleum Corporation Limited
SCHEDULE ‘G’ — INVENTORIES (CONSOLIDATED)
Rs. Crores 264.08 31/03/2009 Rs. Crores 270.17
Stores and spares [Including in transit Rs.15.87 Crores (previous year Rs. 8.23 Crores)] Raw materials [Including in transit Rs.807.72 Crores (previous year Rs. 547.71 Crores)] Stock in process Finished products [Including in transit Rs.139.82 Crores (previous year Rs. 78.40 Crores)] Packages
2,895.54
1,730.39
838.40 9,559.72
572.36 5,218.11
8.11 13,565.85 543.38 14,109.23
6.01 7,797.04 73.55 7,870.59
Share of interest in Joint Ventures Total
SCHEDULE ‘H’ - SUNDRY DEBTORS (CONSOLIDATED)
(Unsecured, Considered good unless otherwise stated) 31/03/2009 Rs. Crores Debts outstanding for over six months : Considered good * Considered doubtful 181.55 250.32 431.87 Other debts Less : Provision for doubtful debts 2,335.41 2,767.28 (250.32) 2,516.96 Share of interest in Joint Ventures Total * Includes Rs. 25.81 crores (previous year Rs. 19.86 crores) which are secured. 83.91 2,600.87 198.60 183.97 382.57 1,216.69 1,599.26 (183.97) 1,415.29 90.56 1,505.85 Rs. Crores
Annual Report 2009-2010
141
SCHEDULE ‘I’ — CASH AND BANK BALANCES (CONSOLIDATED)
31/03/2009 Rs. Crores Cash on Hand [Includes drafts and cheques on hand of Rs. 82 crores (previous year Rs.108 crores)] With Scheduled banks : In current accounts In deposit accounts * Bank Balances outside India: In current accounts Remittances in transit 7.50 0.07 501.47 Share of interest in Joint Ventures Total 226.96 728.43 0.79 1.67 741.28 607.28 1,348.56 393.30 1.04 323.05 290.93 99.56 Rs. Crores 124.84
* Includes deposit of Rs. 0.80 crores (previous year Rs. 0.80 crores) that have been pledged / deposited with local authorities.
SCHEDULE ‘J’ — OTHER CURRENT ASSETS (CONSOLIDATED)
31/03/2009 Rs. Crores Interest accrued on investments Interest accrued on bank deposits Subsidy/Oil Marketing Companies GOI Special Bonds Receivable (refer note 2 of Schedule 'X'-B) Deferred premium (foreign exchange forward contract) Others (refer note 4 of Schedule 'X'-B) Share of interest in Joint Ventures Total 90.29 659.83 3,790.84 10.35 3,801.19 123.22 659.10 3,096.28 6.28 3,102.56 142.30 4.16 2,894.26 Rs. Crores 247.17 1.51 2,065.28
142
Bharat Petroleum Corporation Limited
SCHEDULE ‘K’ - LOANS AND ADVANCES (CONSOLIDATED)
(Unsecured, Considered good unless otherwise stated) Rs. Crores Loans (Secured) : To companies Considered doubtful Less
rovision for doubtful loans To staff Material given on Loan Less : Deposits Received Loans: To companies Considered good Considered doubtful Lessrovision for doubtful loans To others Interest accrued on loans Advances: Advances recoverable in cash, or in kind or for value to be received Advances considered doubtful Less : Provision for doubtful advances 31/03/2009 Rs. Crores
0.10 (0.10) 656.68 0.46 (0.46) 656.68
0.10 (0.10) 660.15 0.46 (0.46) 660.15
1,435.74 2.81 (2.81) 45.00 22.55 1,503.29 271.58 4.51 (4.51) 271.58 29.10
829.77 2.81 (2.81) 40.75 16.88 887.40 354.69 4.99 (4.99) 354.69 29.91
Dues from Petroleum Planning & Analysis Cell - Government of India Claims : Considered good Considered doubtful Less : Provision for doubtful claims
355.76 65.07 (65.07) 355.76 161.53
365.05 58.71 (58.71) 365.05 200.76
Advance Income Tax ( Net of provision for taxation) Deposits : With Customs/Excise/Port Trust etc. Others
105.61 93.71 199.32 3,177.26 469.52 3,646.78
126.37 91.05 217.42 2,715.38 262.86 2,978.24
Share of interest in Joint Ventures Total
Annual Report 2009-2010
143
SCHEDULE ‘L’ — LIABILITIES (CONSOLIDATED)
Rs. Crores Current Liabilities : Sundry creditors Total outstanding dues of micro and small enterprises Total outstanding dues of creditors other than micro and small enterprises Deposits from Customers Deposits for Containers Unclaimed Dividend * Unclaimed Deposits * Unclaimed Interest on Deposits * Other liabilities Interest on loans (accrued but not due) Share of interest in Joint Ventures Total 31/03/2009 Rs. Crores
1.35 9,095.56 25.81 3,755.66 3.11 0.28 0.09 2,558.68 93.96 15,534.50 557.18 16,091.68
0.73 6,733.68 22.99 3,343.98 3.18 0.37 0.21 1,722.97 63.69 11,891.80 383.26 12,275.06
* No amount is due at the end of the year for credit to Investors Education and Protection Fund.
SCHEDULE ‘M’ — PROVISIONS (CONSOLIDATED)
Rs. Crores 822.28 548.48 91.52 1,294.05 2,756.33 8.83 2,765.16 31/03/2009 Rs. Crores 493.72 295.40 50.20 974.74 1,814.06 6.83 1,820.89
Provision for Taxation (Net of Tax paid) Proposed dividend * Corporate Dividend Tax on proposed dividend Provision for employee / retirement benefits Share of interest in Joint Ventures Total
* Includes Rs. 42.32 crores (previous year Rs. 42.32 crores) being the share of Minority Interest in the proposed dividend of Numaligarh Refinery Limited.
SCHEDULE ‘N’ — SALE OF PRODUCTS (CONSOLIDATED)
Rs. Crores 125,839.56 590.85 5,265.03 131,695.44 2,053.66 133,749.10 2008-09 Rs. Crores 129,246.01 566.21 16,216.38 146,028.60 1,308.22 147,336.82
Sales Subsidy on LPG (Domestic) & SKO (PDS) (As per the existing scheme of the Government Of India) Subsidy/Oil Marketing Companies GOI Special Bonds (refer note 2 of Schedule 'X'-B) Share of interest in Joint Ventures Total
144
Bharat Petroleum Corporation Limited
SCHEDULE ‘O’ — MISCELLANEOUS INCOME (CONSOLIDATED)
Rs. Crores 289.21 2008-09 Rs. Crores 188.42
Interest on bank deposits and others * Tax deducted at source - Rs.33.17 crores ( previous year Rs. 21.47 crores) Income from Investments Current Interest on Oil Marketing Companies GOI Special Bonds Interest - Others Dividend Long Term Interest Dividend Income from AOP (Petroleum India International) Profit on sale/write off of fixed assets (net) Write back of liabilities no longer required (net) Foreign Exchange fluctuations (net) Other income # Share of interest in Joint Ventures Total
316.24 448.55 10.76 0.04 775.59 4.07 556.87 444.38 2,070.12 295.08 2,365.20
422.96 9.73 2.01 89.87 0.84 1.24 526.65 17.58 680.73 1,413.38 22.40 1,435.78
* Includes interest received from Income tax authorities Rs.1.34 crores (previous year Rs. 10.85 crores) # Includes amortisation of capital grants Rs.0.09 Crores (previous year Rs. 0.09 Crores)
SCHEDULE ‘P’ — INCREASE/(DECREASE) IN INVENTORY (CONSOLIDATED)
Rs. Crores Value of closing stock of Finished goods Stock in process Less : Value of opening stock of Finished goods Stock in process Share of interest in Joint Ventures Total 9,559.72 838.40 10,398.12 5,218.12 572.36 5,790.48 4,607.64 495.46 5,103.10 2008-09 Rs. Crores 5,218.12 572.36 5,790.48 6,660.33 679.55 7,339.88 (1,549.40) 0.16 (1,549.24)
SCHEDULE ‘Q’ - RAW MATERIALS CONSUMED (CONSOLIDATED)
Opening Stock Add : Purchases Less: Closing Stock Share of interest in Joint Ventures Total Rs. Crores 1,730.39 58,277.04 (2,895.54) 57,111.89 1,208.10 58,319.99 2008-09 Rs. Crores 3,943.19 58,760.20 (1,730.39) 60,973.00 922.03 61,895.03
Annual Report 2009-2010
145
SCHEDULE ‘R’ — CONSUMPTION OF STORES, SPARES AND MATERIALS (CONSOLIDATED)
Stores, spares and materials Less : Charged to other revenue accounts Share of interest in Joint Ventures Total Rs. Crores 272.16 (180.07) 92.09 0.91 93.00 2008-09 Rs. Crores 278.05 (162.74) 115.31 0.81 116.12
SCHEDULE ‘S’ — POWER AND FUEL (CONSOLIDATED)
Rs. Crores 2,744.23 (2,507.08) 237.15 7.68 244.83 2008-09 Rs. Crores 2,996.59 (2,929.39) 67.20 6.44 73.64
Power and Fuel Less: Consumption of fuel out of own production Share of interest in Joint Ventures Total
SCHEDULE ‘T’ — EMPLOYEES’ REMUNERATION AND OTHER BENEFITS (CONSOLIDATED)
Salaries and wages (refer note 7 of Schedule 'X'-B) Contribution to provident fund Contribution to gratuity fund Contribution to other funds Welfare expenses Rs. Crores 1,686.56 106.21 101.47 18.08 333.34 2,245.66 6.49 2,252.15 2008-09 Rs. Crores 1,093.32 68.69 216.10 9.71 583.63 1,971.45 9.85 1,981.30
Share of interest in Joint Ventures Total
SCHEDULE ‘U’ — INTEREST (CONSOLIDATED)
On Debentures On Fixed Loans Others Share of interest in Joint Ventures Total Rs. Crores 142.37 148.58 802.95 1,093.90 30.76 1,124.66 2008-09 Rs. Crores 31.76 295.65 1,874.10 2,201.51 202.81 2,404.32
146
Bharat Petroleum Corporation Limited
SCHEDULE ‘V’ — OTHER OPERATING AND ADMINISTRATION EXPENSES (CONSOLIDATED)
Rs. Crores Repairs and maintenance : Machinery Building Others Insurance Rent Rates and taxes Charities and donations Remuneration to auditors Utilities Write off : Bad debts and Claims Others Provision for : Doubtful debts and advances Diminution in value of investments Loss on sale of current Investments Loss on sale / write off of Fixed Assets(net) Charges paid to other oil companies Travelling and conveyance Telephone, Telex, Cables, Postage etc. Foreign Exchange fluctuations (net) Other expenses Share of interest in Joint Ventures Total 405.17 26.98 111.03 543.18 33.04 231.47 33.79 5.42 0.48 134.21 0.01 6.01 72.24 828.98 221.07 0.39 108.51 110.49 25.12 756.19 3,110.60 53.87 3,164.47 2008-09 Rs. Crores 382.85 23.95 120.76 527.56 29.89 128.00 33.32 4.25 0.31 129.77 0.02 12.29 4.17 (33.88) 515.42 1.83 95.87 120.60 27.02 1,300.02 615.44 3,511.90 48.45 3,560.35
SCHEDULE ‘W’ - PRIOR PERIOD INCOME/(EXPENSES) (NET) (CONSOLIDATED)
Sale of products Miscellaneous Income Purchase of product for resale Raw Materials Consumed Duties taxes etc. and other product charges Transportation Consumption of stores spares and materials Rent, Rates & Taxes Employees' remuneration and other benefits Other operating and administration expenses Interest Interest income Depreciation Share of interest in Joint Ventures Total Rs. Crores 17.01 4.22 10.26 8.14 (2.71) 1.63 0.86 (2.68) (72.00) (9.49) (1.94) 0.09 (0.60) (47.21) (30.51) (77.72) 2008-09 Rs. Crores (12.93) 1.59 1.11 1.78 0.94 (6.19) 0.99 (1.38) (1.47) (6.61) 8.38 5.29 (8.50) (8.50)
Annual Report 2009-2010
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SCHEDULE ‘X’ — STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2010 (CONSOLIDATED)
A. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
1. BASIS OF CONSOLIDATION: The Consolidated Financial Statements relate to Bharat Petroleum Corporation Limited (“the Company” or “BPCL”), its subsidiary companies and the interest of the Company in joint ventures, in the form of jointly controlled entities. (a) Basis of accounting: (i) The Financial Statements of the subsidiary companies and the joint venture companies (JVCs) used in the preparation of the Consolidated Financial Statements are drawn upto the same reporting date as that of the Company i.e. 31st March, 2010 except for Matrix Bharat Marine Services Pte. Ltd., VB (Brazil) Petroleo Private Ltda and IBV (Brazil) Petroleo Ltda. whose accounts are drawn for the period ended 31st December 2009. (ii) The Consolidated Financial Statements have been prepared in accordance with the mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules 2006 and generally accepted accounting principles. (b) Principles of Consolidation: The Consolidated Financial Statements have been prepared on the following basis
i) The Financial Statements of the Company and its subsidiary companies (which are not in the nature of joint ventures) have been consolidated on a line–by-line basis by adding together the book values of like items of assets, liabilities, income and expenses. The intra group balances and intra group transactions and unrealised profits or losses resulting from intra group transactions are fully eliminated. (ii) The Consolidated Financial Statements include the interest of the Company in JVCs, which has been accounted for using the proportionate consolidation method of accounting and reporting whereby the Company’s share of each of the assets, liabilities, income and expenses of a jointly controlled entity is considered as separate line items in the Consolidated Financial Statements. (iii) The share of equity in the subsidiary company (NRL) as on the date of investment, being in excess of the cost of investment of the Company, the difference is recognised as “Capital Reserve on Acquisition of Subsidiaries” and shown under the head “Reserves and Surplus” in the Consolidated Financial Statements. The share of equity in the subsidiary company (BPRL International B.V.) as on the date of investment, being less than the cost of investment of BPRL, the difference is recognised as “Goodwill on Consolidation”. (iv) Minority interest in the Net Asset of consolidated subsidiaries consists of the amount of equity attributable to the minority shareholders as on the dates on which investments are made by the Company in the subsidiary companies and further movements in their share in the equity subsequent to the dates of investments as stated above. (c) The subsidiary companies and the JVCs which are included in consolidation and the percentage of ownership interest therein of the Company as on 31st March 2010 are as under : Percentage of ownership interest as on 31/03/2010 31/03/2009 Subsidiaries Numaligarh Refinery Limited (NRL) Bharat PetroResources Limited (BPRL) Bharat PetroResources JPDA Limited (Note i) BPRL International BV (Note i) BPRL Ventures BV (Note ii) BPRL Ventures Mozambique BV (Note ii) BPRL Ventures Indonesia BV (Note ii) 61.65 100.00 100.00 100.00 100.00 100.00 100.00 61.65 100.00 100.00 100.00 100.00 100.00 Country of Incorporation
India India India Netherlands Netherlands Netherlands Netherlands
148
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
Percentage of ownership interest as on 31/03/2010 31/03/2009 Joint Venture Companies (JVC) Indraprastha Gas Limited Petronet CCK Limited Petronet LNG Limited Bharat Oman Refineries Limited (BORL) Central UP Gas Limited Maharashtra Natural Gas Limited Sabarmati Gas Limited Bharat Stars Services Private Limited Bharat Renewable Energy Limited Matrix Bharat Marine Services Pte Ltd. Delhi Aviation Fuel Facility Pvt. Ltd 22.50 49.00 12.50 50.00 22.50 22.50 25.00 50.00 33.33 50.00 37.00 22.50 49.00 12.50 50.00 22.50 22.50 25.00 50.00 33.33 50.00 – Country of Incorporation
India India India India India India India India India Singapore India
2.
Notes: (i) Bharat PetroResources JPDA Limited and BPRL International BV are 100% subsidiaries of BPRL. (ii) BPRL Ventures BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia BV are wholly owned subsidiaries of BPRL International BV. (iii) In addition to the above, BPRL holds 50% equity in joint venture company VB (Brazil) Petroleo Private Ltda. VB (Brazil) Petroleo Private Ltda. has a wholly owned subsidiary company IBV (Brazil) Petroleo Ltda. VB (Brazil) Petroleo Private Ltda. and IBV (Brazil) Petroleo Ltda are incorporated in Brazil. (iv) Proportionate consolidation in respect of Investment in Petronet India Limited, Petronet CI Limited and Petroleum Infrastructure Limited have not been considered in the preparation of Consolidated Financial Statements as the Management has provided for full diminution in the value of Investment. (v) The accounts of Central UP Gas Limited, Sabarmati Gas Limited, Bharat Renewable Energy Limited and Maharashtra Natural Gas Limited are yet to be audited and hence the unaudited accounts have been considered for the purpose of preparation of Consolidated Financial Statements. (vi) BPCL ownership in Central UP Gas Limited has been considered at 22.50% as per the Joint Venture Agreement. The actual percentage of Share Capital as on 31st March 2010 held by BPCL is marginally higher. The management is of the opinion that it is a temporary phase and the other joint venture partner will contribute their share of the equity capital as per the Joint Venture Agreement. This excess contribution by BPCL in the Equity Share Capital amounting to Rs. 0.34 crores (previous year Rs. 0.68 crores) is included in “Advances Recoverable in cash or in kind or for value to be received” - Schedule K. BPCL ownership in Maharashtra Natural Gas Limited has been considered at 22.50% as per the Joint Venture Agreement. The actual percentage of Share Capital as on 31st March 2010 held by BPCL is marginally higher. The management is of the opinion that it is a temporary phase and the other joint venture partner will contribute their share of the equity capital as per the Joint Venture Agreement. This excess contribution by BPCL in the Equity Share Capital amounting to Rs. 1.12 crores (previous year Rs. Nil) is included in “Advances Recoverable in cash or in kind or for value to be received” - Schedule K. BASIS FOR PREPARATION The financial statements are prepared under historical cost convention to comply in all material aspects with the mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules 2006 and the provisions of the Companies Act, 1956, adopting accrual system of accounting unless otherwise stated. Annual Report 2009-2010
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SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
3. USE OF ESTIMATES The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual amounts and estimates are recognised in the period in which they materialise. FIXED ASSETS 4.1 LAND Land acquired on lease where period of lease exceeds 99 years is treated as freehold. 4.2 FIXED ASSETS OTHER THAN LAND 4.2.1 Fixed Assets are stated at cost of acquisition (including incidental expenses) less accumulated depreciation. 4.2.2 Expenditure on assets, other than plant and machinery, LPG cylinders and pressure regulators, not exceeding Rs.1,000 per item is charged to revenue. 4.2.3 Machinery spares that are specific to a fixed asset are capitalised along with the fixed asset. Replacement of such spares is charged to revenue. 4.3 EXPENDITURE DURING CONSTRUCTION PERIOD Direct expenses including borrowing cost incurred during construction period on capital projects are capitalised. Indirect expenses of the project group which are allocated to projects costing Rs. 5 crores and above are also capitalised. Crop compensation expenses incurred in the process of laying pipelines are capitalised. 4.4 INTANGIBLE ASSETS 4.4.1 Cost of right of way that is perennial in nature are not amortised. 4.4.2 Expenditure incurred for creating/acquiring other intangible assets of Rs. 0.50 crores and above, from which future economic benefits will flow over a period of time, is amortised over the estimated useful life of the asset or five years, whichever is lower, from the time the intangible asset starts providing the economic benefit. 4.4.3 In other cases, the expenditure is charged to revenue in the year the expenditure is incurred. 4.4.4 Expenditure incurred on intangible assets is capitalised and amortised over a period of 5 years by Indraprastha Gas Limited, Central UP Gas Limited and over 3 years in case of Petronet LNG Limited. IMPAIRMENT OF ASSETS The values of fixed assets in respect of Cash Generating Units are reviewed by the management for impairment at each Balance Sheet date if events or circumstances indicate that the carrying values may not be recoverable. If the carrying value is more than the net selling price of the asset or present value, the difference is recognized as an impairment loss. BORROWING COSTS Borrowing costs attributable to acquisition, construction or production of qualifying asset are capitalised as part of the cost of that asset, till the month in which the asset is ready for use. Other borrowing costs are recognised as an expense in the period in which these are incurred. DEPRECIATION 7.1 Depreciation on fixed assets is provided under the straight line method, at rates prescribed under Schedule XIV to the Companies Act, 1956, except in following cases: 7.1.1 Premium paid for acquiring leasehold land for lease period not exceeding 99 years, is amortised over the period of lease. 7.1.2 LPG cylinders, pressure regulators and other fixed assets costing not more than Rs 5,000 each are depreciated @ 100 percent in the year of capitalisation. 7.1.3 Assets not owned by the Corporation are amortised over a period of five years from the year of capitalisation. 7.1.4 Computer equipments and peripherals, and mobile phones are depreciated over a period of four years. Furniture provided at the residence of management staff is depreciated over a period of seven years. Bharat Petroleum Corporation Limited
4.
5.
6.
7.
150
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
7.2 Indraprastha Gas Limited - Depreciation in case of the following assets has been provided using the straight line method over the useful life of the assets: (a) Mother compressors, Online compressors and Booster compressors – 7 years (b) Bunkhouses – 5 years (c) Signages - 10 years Bharat Stars Services Private Limited - Depreciation has been provided under written down value method and assets upto gross value of Rs. 10,000 are depreciated at 100%. Depreciation is provided at full year basis on additions upto 30th September and at 50% on assets after 30th September. Maharashtra Natural Gas Limited: Depreciation in case of the following assets has been provided using the straight line method over the useful life of the assets: (a) Mother compressors, Online compressors and Booster compressors – 7 years (b) Computer and Mobile Phones- 4 years Bharat Renewable Energy Limited - Depreciation has been provided under written down value method. Depreciation is charged on addition / deletion on pro-rata monthly basis including the month of addition / deletion.
7.3
7.4
7.5 7.6 8.
INVESTMENTS 8.1 Current investments are valued at lower of cost or fair market value. 8.2 Long-term investments are valued at cost. Provision for diminution is made to recognise a decline, other than of temporary nature, in the value of such investments. INVENTORY 9.1 Raw material and Intermediates are valued at cost or net realisable value whichever is lower. Cost is determined as follows: 9.1.1 Raw materials on weighted average cost. Purchased raw materials in transit are carried at cost. 9.1.2 Intermediate Stocks at raw material cost plus cost of conversion. 9.2 Finished products are valued at weighted average cost or at net realisable value, whichever is lower. In case of Indraprastha Gas Limited, Maharashtra Natural Gas Limited and Central UP Gas Limited the cost is determined on first-in-first-out basis. In case of Matrix Bharat Marine Services Pte. Ltd. inventories are valued at fair value less cost to sell. 9.3 Stores are valued at weighted average cost except in case of Maharashtra Natural Gas Limited and Petronet CCK Limited where the valuation is on the basis of first-in-first-out. Obsolete stores are valued at Re. Nil. Slow moving stores/ other materials identified as surplus and no longer usable are valued at Re. Nil. 9.4 Packages are valued at weighted average cost or at net realisable value, whichever is lower.
9.
10. REVENUE RECOGNITION 10.1 Sales are net of trade discounts and include, inter alia, excise / customs duties / claim from Petroleum Planning and Analysis Cell, Government of India and other elements allowed by the Government from time to time. 10.2 Claims/Surrenders including subsidy on LPG and SKO on/to Petroleum Planning and Analysis Cell, Government of India are booked on `in principle acceptance’ thereof on the basis of available instructions/ clarifications subject to final adjustments after necessary audit, as stipulated. Adjustments if any, on completion of audit are recognised. 10.3 Revenue on sale of PNG is recognised based on consumption by the customer and revenue on sale of CNG is recognised on sale of gas to customers from CNG stations. 10.4 Revenue from transportation of products is recognised on the basis of actual quantites transported and received at the receiving terminals. 10.5 Other claims are booked when there is a reasonable certainty of recovery. Claims are reviewed on a periodical basis and if recovery is uncertain, provision is made in the accounts. 10.6 Income from sale of scrap is accounted for on realisation. Annual Report 2009-2010
151
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
11. CLASSIFICATION OF INCOME/EXPENSES 11.1 Expenditure on Research, other than capital expenditure, is charged to revenue in the year the expenditure is incurred. 11.2 Income/expenditure upto Rs. 0.05 crores in each case pertaining to prior years is charged to the current year by the parent company Bharat Petroleum Corporation Limited and Numaligarh Refinery Limited. No such policy exists in other group companies. 11.3 Prepaid expenses upto Rs. 0.05 crores in each case, are charged to revenue as and when incurred by the parent company Bharat Petroleum Corporation Limited and Numaligarh Refinery Limited and upto Rs.10,000 by Bharat PetroResources Limited. No such policy exists in other group companies. 11.4 Deposits placed with Government agencies/ local authorities which are perennial in nature are charged to revenue in the year of payment except in case of Petronet LNG Limited, Petronet CCK Limited, Central UP Gas Limited, Sabarmati Gas Limited, Delhi Aviation Fuel Facility Private Limited and Bharat Stars Services Private Limited wherein no such policy exists. 12. EMPLOYEE BENEFITS 12.1 Contributions to Provident Fund for the year are recognised in the Profit & Loss Account. 12.2 The liability towards gratuity, leave encashment, post retirement benefits and other long term benefits are provided for in the accounts based on actuarial valuation as at the end of the year. To determine the present value of the defined benefit obligations and the current and past service costs, the Projected Unit Credit Method is used. Actuarial gains and losses are recognised in the Profit and Loss Account as income or expense. 13. DUTIES ON BONDED STOCKS 13.1 Customs duty on Raw materials/Finished goods lying in bond are provided for at the applicable rates except where liability to pay duty is transferred to consignee. 13.2 Excise duty on Finished stocks lying in bond is provided for, at the assessable value applicable at each of the locations at maximum rates based on end use. 14. FOREIGN CURRENCY & DERIVATIVE TRANSACTIONS 14.1 Transactions in foreign currency are accounted at the exchange rate prevailing on the date of transaction. 14.2 Monetary items denominated in foreign currency are converted at exchange rates prevailing on the date of Balance Sheet. 14.3 Foreign Exchange differences arising at the time of translation or settlement are recognised as income or expense in the Profit & Loss Account either under foreign exchange fluctuation or interest as the case may be. Premium/discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the Profit & Loss account. 14.4 All the subsidiaries and joint ventures incorporated outside India are considered to be “non integral foreign operations” in terms of Accounting Standard 11 “The Effects of Changes in Foreign Exchange Rates”. Consequently, the assets and liabilities, both monetary and non-monetary of such subsidiaries and joint ventures have been translated at the closing rates. Income and expense items of the non-integral foreign operation are translated at average exchange rate prevailing during the period. 14.5 Gains / losses arising on settlement of Derivative transactions entered into by the Corporation to manage the commodity price risk and exposures on account of fluctuations in interest rates and foreign exchange are recognised in the Profit and Loss Account. Provision for losses in respect of outstanding contracts as on balance sheet date is made based on mark to market valuations of such contracts. 15. GOVERNMENT GRANTS 15.1 In case of depreciable assets, the cost of the asset is shown at gross value and grant thereon is taken to Capital Reserve as deferred income, which is recognised in the Profit and Loss Account over the useful life of the asset. 15.2 Government grants of the nature of promoters’ contributions are credited to Capital Reserve and treated as part of Shareholders’ Funds.
152
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
16. PROVISIONS, CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS 16.1 Provision is recognised when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. 16.2 Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Corporation. 16.3 Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs. 0.05 crores by Bharat Petroleum Corporation Limited and Numaligarh Refinery Limited and Rs. 100,000 by Bharat PetroResources Limited, Central UP Gas Limited and Petronet LNG Limited. No such policy exists in other group companies. 16.4 Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand. 17. TAXES ON INCOME 17.1 Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961. 17.2 Deferred tax on account of timing difference between taxable and accounting income is provided using the tax rates and tax laws enacted or substantively enacted by the Balance Sheet date. 17.3 Deferred tax assets are not recognised unless, in the management judgement there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised. 18. OIL & GAS EXPLORATION ACTIVITIES 18.1 BPRL follows the “Full Cost Method” of accounting for its oil and natural gas exploration and production activities. Accordingly, all acquisition, exploration and development costs are treated as capital work-inprogress and are accumulated in a cost centre. The cost centre is not normally smaller than a country except where warranted by major difference in economic, fiscal or other factors in the country. When any well in a cost centre is ready to commence commercial production, these costs are capitalised from capital work-in-progress to the gross block of assets regardless of whether or not the results of specific costs are successful. Depletion is charged on all capitalised costs according to the unit of production method. 18.2 Surrender of field / disposal of participation interest If BPRL were to surrender a field, the accumulated acquisition, exploration and development costs in respect of such a field are deemed to be fully depreciated. If the remainder of the wells in the cost centre continue to produce oil or gas, gain or loss is recognised only when the last well in the cost centre ceases to produce and the entire cost centre is abandoned. Also, in the event BPRL assigns or farms out the whole or any part of its participating interest, the corresponding carrying value of the capitalised amount is adjusted against the consideration and the net amount is credited or, as the case may be, is charged to the Profit and Loss Account in the year in which BPRL’s participating interest is assigned or farmed out. 18.3 Depletion Depletion charge is calculated on the capitalised cost according to the unit of production method. The depreciation charge or the unit of production (UOP) charge for all costs within a cost centre is calculated by multiplying the UOP rate with the production for the period. The unit of production rate is arrived at by dividing the depreciation base of the cost centre by the Proved Oil and Gas Reserves. The depreciation base of a cost centre includes gross block of the cost centre, estimated future development expenditure and estimated site restoration expenditure and is reduced by the accumulated depreciation and accumulated impairment charge of the cost centre. The estimates of proved reserves used are based on the latest technical assessment available with BPRL. 19. MISCELLANEOUS EXPENDITURE Share-issue expenses of Bharat Oman Refineries Limited would be written-off in the year the company commences commercial production. Other preliminary / pre-incorporation expenses of JVCs / subsidiaries is charged to Profit and Loss Account. Annual Report 2009-2010
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SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
B. NOTES FORMING PART OF ACCOUNTS
1. In respect of sharing of under-recoveries on sensitive petroleum products viz. MS, HSD, LPG (Domestic) and SKO (PDS), as advised by the Ministry of Petroleum & Natural Gas, a part of the under-recovery suffered by BPCL during the year was compensated by ONGC and GAIL by offering discount on price of Crude Oil, SKO and LPG purchased from them. Accordingly, BPCL has accounted the discount as follows: a) Rs.2,927.27 crores (previous year Rs. 6,709.94 crores) discount on crude oil purchased from ONGC has been adjusted against raw material cost; and b) Rs. 702.57 crores (previous year Rs. 846.50 crores) discounts on SKO and LPG purchased from ONGC/GAIL has been adjusted against “Purchase of products and crude oil for resale”. In lieu of the under-recoveries on sale of petroleum products during 2009-10, based on the approval of Government of India, BPCL has accounted for the subsidy amounting to Rs.5,265.03 crores (previous year Rs.16,216.38 crores of Oil Marketing Companies GOI Special Bonds were accounted). Out of the above an amount of Rs.2,894.26 crores (previous year Oil Marketing Companies GOI Special Bonds amounting to Rs.2065.28 crores) receivable as on 31st March 2010 from Government of India is shown as Other Current Assets in Schedule J. Debentures: a. BPCL had allotted redeemable non-convertible 10.35% Debentures of face value of Rs.1,000 crores on 12th December 2008. These are secured by English mortgage, on first pari passu charge basis, by way of a Registered Debenture Trust Deed over the fixed assets of the Company, viz., a Flat at Mumbai and the Plant and Machinery in respect of Hydrocracker Unit and Aromatic Recovery Unit of the Mumbai Refinery. In order to maintain the security cover of 1.25 times, all future immovable properties including Land, Plant & Machinery and Fixtures & Fittings shall be a part of the Premises and Plant & Machinery which are mortgaged. These Debentures are redeemable at par on 11th June 2010. b. BPCL has allotted redeemable non-convertible 7.73% Debentures of face value of Rs.1,000 crores on 12th October 2009. These are secured by first legal mortgage in English form by way of a Registered Debenture Trust Deed over the fixed assets of the Company, viz., a Flat at Mumbai and the Plant and Machinery in respect of Refinery Modernisation Project Crude Distillation Unit / Vacuum Distillation Unit, Catalytic Cracking Unit, Fluid Catalytic Cracking Unit, Diesel Hydro Desulphurisation Unit and Naptha Hydro Desulphurisation Unit of the Mumbai Refinery. In order to maintain the security cover of 1.25 times, all future immovable properties including Land, Plant & Machinery and Fixtures & Fittings shall be a part of the Premises and Plant & Machinery which are mortgaged. These Debentures are redeemable at par on 9th October 2012. As per the scheme of Amalgamation of the erstwhile Kochi Refineries Limited with BPCL approved by the Government of India, 3,37,28,738 equity shares of BPCL were allotted (in lieu of the shares held by BPCL in the erstwhile Kochi Refineries Limited) to a trust for the benefit of BPCL in the financial year 2006-07. Accordingly the cost of the original investment of Rs.659.10 crores is reflected as ‘Others’ in Schedule ‘J ’ - Other Current Assets. The income distributed by the trust during the year 2009-10 amounting to Rs. 23.61 crores (previous year Rs. 13.49 crores) has been included in ‘Other income’ in Schedule ‘O’ – Miscellaneous Income. One shareholder of erstwhile KRL has challenged the amalgamation before Delhi High Court, which is pending adjudication. Provision for taxation in the Profit and Loss Account includes Rs.1.86 crores (previous year Rs. 1.68 crores) towards wealth tax. BPCL and Numaligarh Refinery Limited have numerous transactions with other oil companies, which are reconciled on an ongoing basis and are subject to confirmation. Adjustments, if any, arising therefrom are not likely to be material. BPCL has made a provision of Rs.463 crores (previous year Rs.114 crores for management staff) towards balance liability on revision in emoluments of management staff and pending pay-revision of all non-management staff on an estimated basis. Further consequential increase in actuarial valuations has been effected. BPCL has reclassified the entire portfolio of long term investments in 6.35% Oil Marketing Companies GOI Special Bonds 2024 – Rs.3,099.96 crores and 6.90% Oil Marketing Companies GOI Special Bonds 2026 – Rs.4,986.71 crores to current investments during the year, considering the future funds requirement. Accordingly an amount of Rs. 1,086.50 crores has been provided for the diminution in value of these investments based on mark to market as on 31.3.2010.
2.
3.
4.
5. 6. 7.
8.
154
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
9. Impairment of Assets Determination as to whether and how much an asset is impaired involve Management estimates of highly uncertain matters such as international prices of crude oil and products, duty structure and Government policies. It is assumed that suitable mechanism would be in place, in line with earlier/ current year(s), to provide compensation towards under-recoveries of margin, if any, on account of sale of sensitive petroleum products in subsequent years. Hence, future cash flows have been worked out based on the desired margins for deciding on impairment of related Cash Generating Units. No impairment is therefore considered as at 31st March 2010.
10. Related Party Disclosures as per Accounting Standard 18 i) Key Management Personnel (Whole Time Directors) M/s. Ashok Sinha (Chairman & Managing Director), S. Mohan (Director HR) , S. Radhakrishnan (Director Marketing), S. K. Joshi (Director Finance), R. K. Singh (Director Refineries)
ii) Remuneration to key management personnel: Rs. 1.49 crores (previous year Rs. 1.31 crores). 11. Earnings per share 2009-10 Profit after Tax Weighted average shares outstanding during the year Basic earnings per share Diluted earnings per share Rs. Crores Crore nos. Rs. Rs. 1,632.36 36.15 45.15 45.15 2008-09 633.76 36.15 17.53 17.53
12. Deferred Tax Liability As per the requirement of the Accounting Standard 22 - “Accounting for Taxes on Income” the net deferred tax liability credited to Profit during the year is Rs. 301.27 crores excluding Rs.76.69 crores credited as part of earlier year adjustment.(previous year deferred tax asset debited Rs. 285.11 crores). The year end position of Deferred Tax Liability and Assets is given below : Rs. Crores DEFERRED TAX LIABILITY Depreciation Share of Interest in Joint Ventures Total DEFERRED TAX ASSETS Disallowances u/s 43B of Income Tax Act,1961 Provisions for doubtful debts, claims, employee benefits, etc. Share of Interest in Joint Ventures Total Net Deferred Tax Liability 2,228.32 49.74 2,278.06 611.73 517.92 0.71 1,130.36 1,147.70 31/03/2009 Rs. Crores 2,194.59 40.91 2,235.50 451.63 257.73 0.49 709.85 1,525.65
In the absence of virtual certainty regarding sufficient future profits required for taking credit, deferred tax asset has not been recognised in respect of unabsorbed depreciation / business losses of Bharat PetroResources Limited and Petronet CCK Limited.
Annual Report 2009-2010
155
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
13. In compliance with Accounting Standard - 17, "Segment Reporting" issued by the Institute of Chartered Accountants of India, the segment information is as under: I The group is engaged in the following business segments: a) Downstream petroleum i.e. Refining and Marketing of Petroleum Products b) Exploration and Production of Hydrocarbons Segments have been identified taking into account the nature of activities and the nature of risks and returns. II There are no geographical segments. III Segment-wise details are as follows: (Rs. Crores) Year ended 31st March 2010 Year ended 31st March 2009 Downstream E&P Total Downstream E&P Total Petroleum Petroleum Revenue External Revenue # 125,116.22 0.90 125,117.12 137,277.83 - 137,277.83 Inter Segment Revenue Total Revenue 125,116.22 0.90 125,117.12 137,277.83 - 137,277.83 Result Segment Results 3,955.38 (73.34) 3,882.04 3,326.67 (21.31) 3,305.36 Unallocated Corporate Expenses Operating profit 3,955.38 (73.34) 3,882.04 3,326.67 (21.31) 3,305.36 Add: Interest / Dividend Income 1,064.80 715.07 Less: Interest Expenditure 1,124.66 2,404.32 Loss on sale of Current Investments 221.07 515.42 Diminution in value of Investments 828.98 (33.88) Income Tax (including Deferred Tax) 1,052.15 410.44 Profit after Tax 1,719.98 724.13 Other Information Segment Assets 48,268.40 1,397.23 49,665.63 35,795.54 1,014.73 36,810.27 Unallocated Corporate Assets 12,113.50 17,263.16 Total Assets 61,779.13 54,073.43 Segment Liabilities 15,999.62 92.06 16,091.68 12,238.14 36.92 12,275.06 Unallocated Corporate Liabilities 30,604.94 27,585.70 Total Liabilities 46,696.62 39,860.76 Capital Expenditure 5,195.95 378.78 5,574.73 4,556.28 437.87 4,994.15 Depreciation/ Amortisation 1,444.18 0.38 1,444.56 1,261.47 0.24 1,261.71 Non-cash expenses other than 1.37 2.01 3.38 depreciation # Segment Revenue comprises of Turnover (net of excise duties), Subsidy received from the Government of India and other income (excluding dividend, interest income and investment income). 14. Miscellaneous Expenditure (to the extent not written-off) Pre-incorporation / Share Issue Expenses Less: Written off during the year Share of Interest in Joint Ventures Total Rs. Crores 3.30 3.30 31/03/2009 Rs. Crores 2.02 2.02 3.30 3.30
156
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
15. As indicated in Significant Accounting Policies, certain accounting policies of JVCs towards Depreciation, Inventory Valuation, Employee Benefits and Classification of Income/ Expenses are not in line with that followed by BPCL. However, considering the nature of transactions and amounts involved, the impact is not expected to be material had the accounting policy of BPCL been followed. 16. Capital Reserve on acqusition of subsidiaries includes Rs. 61.65 crores being the share of the group out of grant of Rs. 100 crores received by Numaligarh Refinery Limited from the Government of India during the project period. 17. In respect of certain Subsidiaries and JVCs, the following notes to accounts are disclosed: Numaligarh Refinery Limited a) Pending finalization of the Crude Oil Sales Agreement (COSA) purchases of Crude Oil from Oil India Limited (OIL) and Oil and Natural Gas Corporation Limited (ONGC) have been accounted for as per the Benchmark price of crude oil in the financial year 2009-10 in line with FY 2008-09. Further, as per directive of the Ministry of Petroleum and Natural Gas (MOP&NG), an amount of Rs.259.94 crores (previous year Rs.282.99 crores) has been provided and charged to the cost of crude towards Sales Tax and Pipeline Transportation Charges payable to OIL/ONGC for the financial year 2009-10. To augment crude availability of the four refineries in Assam, Ravva crude is brought in to IOCL Bongaigaon Refinery and the transportation cost and other incidentals thereof is to be shared by all four refineries as per the directive of MOP&NG. NRL’s share of the transportation cost and other incidentals thereof has been included in the crude price and is also considered for valuation of the closing stock. Transportation cost for the Haldia-Barauni Crude Pipeline is being provided as per tariff rates prescribed by Ministry vide letter dated 28th May 2008. b) An amount of Rs. 194.53 crores towards Assam Entry Tax for the period November 2006 to May 2008, though provided in the books of NRL, is disputed against which NRL has filed a Writ Petition (Civil) before the Hon’ble Supreme Court of India. Based on the Writ Petition, the Court had directed the Assessing Authority to assess the liability for the aforesaid period. Assessing Authority had assessed the liability at Rs.194.53 crores. The Court vide interim Order dated 04.02.2010 has directed NRL to pay under protest a sum of Rs.50 crores. Accordingly NRL has deposited Rs.50 crores under protest. c) An amount of Rs.111.20 crores (previous year Rs. 143.10 crores) has been charged to Profit & Loss Account towards under-recovery of CST on petroleum products. d) Provision towards Pay revision of Management Staff amounting to Rs.4.71 crores (previous year Rs.17.53 crores) is made in accordance with the Pay Revision Committee’s recommendation as per guidelines received from Department of Public Enterprises. e) Pending finalisation of Long Term Settlement in respect of revision of wages of workmen, provision has been made to the extent of Rs.20.99 crores (previous year Rs.3.18 crores) on estimated basis. f) The pension scheme of the company is under finalisation in line with the guideline issued by Department of Public Enterprises vide Office Memorandums dtd.26.11.2008 and 02.04.2009. Pending finalisation of the scheme a sum of Rs.5.73 crores (previous year Rs.NIL) has been charged to Profit and Loss account. Bharat PetroResources Limited g) BPRL along-with an Indian partner (equal share) has acquired IBV Brazil Petroleo Ltda erstwhile Encana Brazil Petroleo Ltda, a subsidiary of Encana Canada holding participating interest in 4 exploratory concessions in Brazil in the previous financial year. Funding for this acquisition (BPRL’s share) has been done partly by BPRL through Equity and partly through loan taken by BPRL Ventures B.V. (100% stepdown subsidiary of BPRL). This loan is obtained from Standard Chartered Bank, London. The shares (Quotas) of Joint Venture (VB Brazil Petroleo Ltda.) and BPRL Ventures B.V. (100% subsidiary of BPRL International B.V.) have been pledged as collateral for obtaining loan from Standard Chartered Bank. h) The shareholders of VB (Brazil) Petroleo Ltda acknowledge that if at any time after the Purchase Agreement effective date there is a commercial discovery then the shareholders shall, in ten business days after such commercial discovery, pay to the vendors US$ 10 million. Unless and until a commercial discovery occurs, the shareholders have no obligation to make any payment. On September 30, 2008 it was announced a pre-salt discovery at the Wahoo prospect offshore Brazil in the Campos Basin. The 1-APL-1-ESS well is located on block BM-C-30 in approximately 4,650 feet of water approximately 25 miles southeast and syncline separated from Petrobras’ previously announced Annual Report 2009-2010
157
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
pre-salt discoveries at the giant Jubarte field. Preliminary results at Wahoo, based on wireline logs, indicate at least 195 feet of net pay with similar characteristics to the nearby Jubarte 1-ESS-103A well, which is Brazil’s first producing pre-salt field having recently achieved reported initial rates of approximately 18,000 barrels per day of light oil. The discovery notification was sent to the Brazilian National Petroleum Agency (ANP). i) The financial statements of BPRL International BV are drawn for the 15 months ended 31st March , 2010. j) In case of blocks located outside India, the reporting period is generally different. Also, in case of blocks located in India, the financial statements of the jointly controlled assets for the period ending 31st March 2010 are not available as at the date of finalisation of accounts. Therefore, unaudited financial/ billing statements for the year ended 31st December 2009 are being used for the purpose of reporting share of interest in jointly controlled assets for blocks in India and outside India. Bharat Oman Refineries Limited k) Interest earned, on mobilization advances given to contractors for capital projects, aggregating to Rs. 7.3 crores (previous year Rs. 6.8 crores) has been adjusted against the value of the projects under “Capital work-in-progress”. l) As per the terms of the Memorandum of Understanding entered between the Company and Government of Madhya Pradesh, in lieu of cost of government land that has been transferred to the Company, the Company has to allot equity shares worth Rs.269,000,000 to Government of Madhya Pradesh, at a price not more than the price at which the shares have been allotted to the promoters. As the shares have not been allotted to the Government of Madhya Pradesh as at 31st March 2010, this amount has been disclosed as “Share Application Money”. m) Based on the opinion of the Expert Advisory Committee of the Institute of Chartered Accountants of India, taken by BORL during the year, in respect of accounting of foreign exchange variation, the company has drawn up “Profit and Loss Account” for the year even though BORL has not commenced commercial operations, at its refinery at Bina, Madhya Pradesh. Accordingly, a. Expenses and Incomes not relating to the project, which hitherto were accounted for as “Pre-operative expenditure pending capitalization”, have now been transferred to “Profit and Loss Account” as prior period expenses/incomes. b. Expenses and Incomes relating to the project are classified as “Pre-operative expenditure pending capitalization”. Petronet LNG Limited n) Petronet LNG Limited has an option to claim deduction under Section 80IA of the Income Tax Act, 1961 in respect of Power Generation and Port Undertaking and also under Section 80IB in respect of its Regasification Undertaking. However, provision for income-tax has been made without considering the aforesaid deductions. The company will review the option at the time of filing its income tax return. o) Customs duty on import of Project material / equipment has been assessed provisionally (current and previous years) and additional liability, if any, on this account will be prepared on final assessment. Central UP Gas Limited p) CUGL had been sanctioned term loan facility of Rs. 65 crores against the charge on immovable and movable assets, both present and future, of the Company by commercial banks, though during the year the Company has not availed or utilized the facility. Bharat Renewable Energy Limited q) BREL has entered into a 15 year buyback agreement with farmers / Gram Panchayats for purchase of Jatropha seeds, to be planted in 28856 acres (approx.) (previous year 945.21 acres) of wasteland under ‘Jeevan Jyoti Paryojana Scheme’ of UP State Government. The Jatropha Seeds purchase price will be at the Minimum Support Price declared by the Government of UP or at 20% value of the retail price of Biodiesel, whichever is higher. Out of the above, plantation has been done in 750 acres during the year. Matrix Bharat Marine Services Pte. Ltd. r) Matrix Bharat Marine Services Pte. Ltd. was incorporated on 20th May 2008. The company follows the calendar year as its accounting period and hence accounts are prepared for the period ending 31st December 2009.
158
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
Delhi Aviation Fuel Facility Private Limited s) Delhi Aviation Fuel Facility Private Limited was incorporated on 11th August, 2009 and the first accounts have been prepared for the period ended March 31, 2010. t) Delhi Aviation Fuel Facility Private Limited is in the process of setting up a project “Aviation Fuel Facility” at Indira Gandhi International Airport, New Delhi. 18. The following Oil and Gas blocks are held by Bharat PetroResources Limited / its subsidiaries and joint ventures: Name Company Country Participating Interest of the Group NELP – IV 31.3.2010 31.3.2009 KG/DWN/2002/1 BPRL India 10.00% 10.00% MN/DWN/2002/1 BPRL India 10.00% 10.00% CY/ONN/2002/2 BPRL India 40.00% 40.00% NELP – VI KG/DWN/2004/2 BPRL India 10.00% 10.00% KG/DWN/2004/5 BPRL India 10.00% 10.00% CY/ONN/2004/1 BPRL India 20.00% 20.00% CY/ONN/2004/2 BPRL India 20.00% 20.00% RJ/ONN/2004/1 BPRL India 11.11% (a) 11.11% NELP – VII RJ/ONN/2005/1 BPRL India 25.00% (b) 25.00% Blocks outside India Block No 56 BPRL Oman 12.50% (c) 12.50% WA/388/P BPRL Australia 14.00% 14.00% AC/P32 BPRL Australia 20.00% 20.00% 48/1b & 2c – North Sea BPRL U.K. 25.00% 25.00% JPDA 06-103 BPR JPDA Australia / Timor 20.00% (d) 25.00% Sergipe and Alagoas SEAL-M-349 IBV (Brazil) Petroleo Ltda. Brazil 40.00% 40.00% SEAL-M-426 IBV (Brazil) Petroleo Ltda. Brazil 40.00% 40.00% SEAL-M-497 IBV (Brazil) Petroleo Ltda. Brazil 40.00% 40.00% SEAL-M-569 IBV (Brazil) Petroleo Ltda. Brazil 40.00% 40.00% Espirito Santo ES-24-588 IBV (Brazil) Petroleo Ltda. Brazil 30.00% 30.00% ES-24-661 IBV (Brazil) Petroleo Ltda. Brazil 30.00% 30.00% ES-24-663 IBV (Brazil) Petroleo Ltda. Brazil 30.00% 30.00% Campos C-M-30-101 IBV (Brazil) Petroleo Ltda. Brazil 25.00% 25.00% Portiguar POT-16-663 IBV (Brazil) Petroleo Ltda. Brazil 20.00% 20.00% POT-16-760 IBV (Brazil) Petroleo Ltda. Brazil 20.00% 20.00% Mozambique Rovuma Basin BPRL Ventures Mozambique B.V. Mozambique 10.00% 10.00% Nunukan PSC, Tarakan Basin BPRL Ventures Indonesia B.V. Indonesia 12.50% (a) The deed of assignment for Oil and Gas Block RJ/ONN/2004/1 has not been executed in the name of BPRL for which application is pending with Management Committee and Directorate General of Hydrocarbons (DGH). (b) The Board of Directors of BPRL at its meeting held on 19th January, 2010 has resolved to increase its Participating Interest in RJ-ONN-2005/1 Block under NELP VII from existing 25% upto 37.5%. Based on Operating Committee resolution dated 24th March, 2010 it was agreed that BPRL, Hindustan Oil Exploration Company Limited and IMC Limited will share equally the participating interest of defaulting party in accordance with the provisions of PSC and JOA. Accordingly, Participating Interest of BPRL would be 33.33% subject to approval from Directorate General of Hydrocarbons and Ministry of Petroleum & Natural Gas. Annual Report 2009-2010
159
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
(c) As per Board resolution of BPRL, expenditure incurred in Block Oman 56 has been charged off / written off during the year. Any expenditure incurred in future for completing the formalities relating to relinquishment of block will also be charged off as and when incurred. (d) During the year, BPR JPDA has farmed out 5% Participating Interest in the Block to Pan Pacific Petroleum (PPP). The Board of Directors of BPR JPDA at its meeting held on 2nd September, 2009 have approved the farm-out. Farm out agreement dated 25.09.09 has been signed. In accordance with the agreement, BPR JPDA has received total Farm-out consideration of USD 2,750,000, which includes USD 950,000 as reimbursement of past cost incurred up to 31st July, 2009 and USD 1,800,000 pertaining to Carry (3.33%) accordingly CWIP has been reduced. Net Amount of Capital Work in Progress as on 31st March, 2010 is Rs. 79.69 crores. 19. Interests in Joint Ventures The Group’s interest in Joint Ventures, accounted for using proportionate consolidation are: (Rs. in Crores) As at 31/03/2010 I ASSETS 1. Fixed Assets - Gross Block - Less: Depreciation - Net Block 2. 3. 4. Capital work-in-progress Investments Current Assets, Loans and Advances a) Inventories b) Sundry Debtors c) Cash and Bank Balances d) Other Current Assets e) Loans & Advances 5. II 1. 2. Miscellaneous Expenditure to the extent not written off or adjusted Shareholders Funds – Reserves & Surplus Loan Fund a) Secured Funds b) Unsecured Funds 3. 4. Deferred Tax – Liability Current Liabilities & Provisions a) Liabilities b) Provisions 557.18 8.83 383.26 6.83 2,374.69 1,385.99 49.03 2,481.44 40.42 LIABILITIES 299.31 260.52 543.38 83.91 226.96 10.35 469.52 3.30 73.55 90.56 607.28 6.28 262.86 3.30 1,469.32 271.98 1,197.34 4,139.42 442.76 726.63 208.26 518.37 3,672.43 106.75 As at 31/03/2009
160
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
(Rs. in Crores) 2009-10 III INCOME 1. Sales and related income Excise Duty 2. 3. IV 1. 2. 3. 4. 5. 6. 7. 8. 9. Miscellaneous Income Increase/(Decrease) in Inventory Purchase of Products for Resale Raw Material Consumed Consumption of stores, spares and materials Power and Fuel Employees’ remuneration and other benefits Interest Other operating and administration expenses Depreciation / Amortisation Miscellaneous Expenditure Written off 2,053.66 (34.86) 2,018.80 295.08 495.46 317.37 1,208.10 0.91 7.68 6.49 30.76 53.87 48.22 (30.51) 1,166.45 46.50 8.58 19.35 1,092.02 As at 31/03/2010 V OTHER MATTERS 1. 2. Contingent Liabilities Capital Commitments 433.99 1,664.94 100.10 2,580.94 1,308.22 (28.81) 1,279.41 22.40 0.16 57.57 922.03 0.81 6.44 9.85 202.81 48.45 37.98 1.37 (14.66) 54.23 0.25 0.66 (69.80) (Rs. in Crores) As at 31/03/2009 2008-09
EXPENSES
10. Prior Period Income/ (Expenses) (Net) 11. Profit before Taxation 12 Provision for Taxation a) Current Tax b) Fringe Benefit Tax c) Deferred Tax (Net) d) Short / (Excess) provision for Taxation in earlier years provided for 13. Profit after Taxation
Annual Report 2009-2010
161
162
Rs. Crores USEFUL LIFE (NO. OF MONTHS) (2) Perennial 36 48 60 60 60 95.00 10.78 105.78 91.06 10.62 101.68 4.10 – 0.16 – 3.94 – 95.00 10.78 105.78 257.12 – 362.90 229.04 – 239.82 1.25 50.81 36.64 0.84 37.48 28.08 – 123.09 49.56 38.05 3.14 – 41.19 24.38 1.50 – – 1.50 1.27 0.23 7.78 14.36 8.22 22.58 12.92 0.41 13.33 23.78 16.65 – 40.43 12.14 5.83 1.18 – – 1.18 0.25 0.30 11.86 – – 11.86 11.52 0.22 18.63 8.29 – 26.92 – – – – – – – – – – – – – – (3) (4) (5) (6) (7) (8) (9) (10) – 11.74 0.55 17.97 1.50 32.16 63.92 9.47 73.39 49.56 1.25 50.81 AS AT ADDITIONS DELETIONS/ 01-04RECLASSI2009 FICATION AS AT 31-032010 UPTO THIS YEAR 31-032009 DELETIONS/ RECLASSIFICATION UPTO 31-032010 GROSS AMOUNT AMORTISATION NET AMOUNT AS AT 31-032010 (11) 26.92 0.12 0.63 22.46 – 9.03 59.17 230.35 289.51 45.44 9.53 54.97 AS AT 31-032009 (12) 18.63 0.34 0.93 11.64 0.23 13.67 45.44 9.53 54.97 54.42 9.78 64.20 Rs. Crores GROSS AMOUNT AS AT ADDITIONS CAPITALISA01-04TIONS 2009 AS AT 31-032010 AMORTISATION UPTO THIS YEAR 31-032009 DELETIONS/ RECLASSIFICATION UPTO 31-032010 NET AMOUNT AS AT 31-032010 AS AT 31-032009 USEFUL LIFE (NO. OF MONTHS) (2) (3) 5.96 5.96
–
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
20. INTANGIBLE ASSETS In accordance with Accounting Standard 26 , details of Intangible Assets recognised and amortised during the year are given below: a) Intangible assets - being amortised
PARTICULARS
(1)
1.RIGHT OF WAY
2.SOFTWARE
Bharat Petroleum Corporation Limited
(4) 2.53 2.53
5.96
3.SOFTWARE
4.SOFTWARE
5.DEVELOPMENT RIGHTS
6. PROCESS LICENSE
TOTAL
Share of Interest in Joint Venture
Grand Total
Previous Year
Share of Interest in Joint Venture 2008-09
Grand Total 2008-09
b) Intangible Assets- pending amortisation*
PARTICULARS
(1)
(5) 5.87 5.87
–
(6) 2.62 2.62
5.96
(7) – –
–
(8) – –
–
(9) – –
–
(10) – –
–
(11) 2.62 2.62
5.96
(12) 5.96 5.96
–
1. SOFTWARE
TOTAL
Previous Year
* To be amortised from the time the Intangible Asset starts providing economic benefits Note: There are no internally generated Intangible Assets
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
31/03/2009 21. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES : Rs. Crores 21.1 Capital Commitments : Estimated amount of contracts remaining to be executed on capital account and not provided for Share of interest in Joint Ventures Total 21.2 Contingent Liabilities : (a) In respect of taxation (b) Other Matters : i) Surety bonds executed on behalf of other oil companies for excise/ customs duties for which BPCL has signed as surety ii) Claims against the Corporation not acknowledged as debts : Excise and customs matters Sales tax matters Others* These include Rs. 751.55 crores (previous year Rs. 668.14 crores) against which the Corporation has a recourse for recovery and Rs. 29.41 crores (previous year Rs. 30.80 crores) on capital account. * In respect of lands acquired, land owners have claimed higher compensation before various Authorities / Courts, which are yet to be settled. The estimated contingent liability of Rs.54.63 crores (previous year Rs. 54.42 crores) in such cases is included above. iii) Claims on account of wages, bonus/ex-gratia payments in respect of pending court cases. iv) Guarantees given on behalf of Subsidiaries/JV’s (c) Share of interest in Joint Ventures (a) (b) (c) 1,190.86 2,668.30 585.58 253.84 2,412.98 471.78 Rs. Crores
2,432.45 1,664.94 4,097.39
3,433.64 2,580.94 6,014.57
286.06
291.51
195.30
166.33
4.55 3,786.18 433.99
1.10 696.75 63.20
22. 22.1 Foreign exchange losses amounting to Rs. 37.42 crores including Rs. Nil pertaining to share of interest in joint ventures (previous year Rs. 375.58 crores including Rs.181 crores pertaining to share of interest in joint ventures) are regarded as adjustment to Interest cost and debited to Interest expenditure. 22.2 The deferred premium amounting to Rs. 90.29 crores including Rs. Nil pertaining to share of interest in joint ventures (previous year Rs.123.21 Crores including Rs. Nil pertaining to share of interest in joint ventures) in respect of forward exchange contract will be recognised in the Profit and Loss Account of one or more subseqent accounting periods. 23. Figures have been regrouped wherever necessary.
Annual Report 2009-2010
163
CASH FLOW STATEMENT (CONSOLIDATED)
For the year ended 31st March Notes A Cash Flow from Operating Activities Net Profit Before tax and prior period items Adjustments for : Depreciation Interest Foreign Exchange Fluctuations (Profit) / Loss on Sale of fixed assets (Profit) / Loss on Sale of investments Income from Investments Dividend Received Other Non-Cash items Interest Income Operating Profit before Working Capital Changes Note 3 1,444.56 1,124.66 (274.51) (3.55) 221.07 (1,181.08) (13.29) 932.59 (0.43) 5,099.87 1,261.70 2,387.82 631.45 1.70 515.42 (745.86) (2.85) (37.59) (4.05) 5,150.81 2,849.85 1,143.07 2010 Rs. Crores 2009 Rs. Crores
(Invested in) / Generated from :
Trade Receivables Other receivables Inventory Current Liabilities & Payables (1,244.06) (742.56) (6,257.77) 4,013.74 480.55 792.40 3,644.69 (2,471.97)
Cash generated from Operations
869.22
7,596.48
Direct Taxes paid
(1,046.86)
(567.65)
Cash flow before prior period items
(177.64)
7,028.83
Prior Period Items Non Cash Items
(47.21) 0.60
(8.50) (2.48)
Net Cash from Operating Activities
(224.25)
7,017.85
164
Bharat Petroleum Corporation Limited
CASH FLOW STATEMENT (CONSOLIDATED)(CONTD.)
For the year ended 31st March Notes B Net Cash Flow from Investing Activities Purchase of fixed assets Adjustment for retirement/reclassification of Fixed Assets Sale of fixed assets Adjustments to Pre Operating Expenses (5,176.99) 11.95 (16.87) (4,485.08) (2.82) 3.79 (79.08) 2010 Rs. Crores 2009 Rs. Crores
(Investment)/Sale of Investment in JVC's Premier Oil Cachar BV Sabarmati Gas Ltd. Maharashtra Natural Gas Ltd. Bharat Star Services Private Ltd. Delhi Aviation Fuel Facility Private Ltd. VI eTrans Private Ltd. Bharat Renewable Energy Ltd. Matrix Bharat Marine Services Pte Ltd. DNP Ltd. Brahmaputra Cracker Polymer Ltd.
Investment in Subsidiary Companies Bharat PetroResources Ltd. Advance for Investments Purchase of Investment Sale of Investments Income from Investment Dividend Received Interest Received Net Cash Flow on Investing Activities C Net Cash Flow on Financing Activities Equity Investment Long term Borrowings Repayment of loans Interest paid Dividend Paid Corporate Dividend Tax Exchange difference on forward contracts Net Cash Flow on Financing Activities D # Net Increase / (Decrease) in Cash and Cash equivalents (A+B+C) Value Rs.37,000
0.10 (39.95) (22.48) (5.00) # -
(1.60) 0.01 (1.00) (8.41) (24.16) (28.29)
(200.00) (3,785.02) 7,243.42 1,193.40 13.29 4.03 (780.12)
(400.38) (20,235.70) 11,853.61 585.66 2.85 4.05 (12,816.56)
234.95 3,145.08 (337.09) (1,372.21) (297.65) (52.99) (160.52) 1,159.58 155.21
613.33 3,445.57 (1,229.92) (2,343.94) (203.22) (36.55) (159.63) 85.64 (5,713.07)
Annual Report 2009-2010
165
CASH FLOW STATEMENT (CONSOLIDATED)(CONTD.)
For the year ended 31st March Notes Cash and Cash equivalents as at 31st March Cash in Hand Cash at Bank Cash in transit Cash Credit from scheduled banks CBLOs Unsecured loans from scheduled banks / ICDs / CPs Cash & Cash Equivalents on A/c of acquisition of Business of IBV (Brazil) Petroleo Ltda. by VB Brazil Petroleo Pvt Ltda. 2010 Rs. Crores 2009 124.92 1,220.72 2.00 (2,497.70) (150.00) (14,915.25) 0.00 (16,215.31) Cash and Cash equivalents as at 31st March Cash in Hand Cash at Bank Cash in transit Cash Credit from scheduled banks Unsecured loans from scheduled banks / ICDs / CPs CBLOs Net change in Cash and Cash equivalents 2010 98.88 628.26 1.29 (6,714.29) (9,574.24) (500.00) (16,060.10) 155.21 2009 Rs. Crores 2008 396.20 1,183.34 9.18 (930.12) (1,000.00) (10,171.14) 10.30 (10,502.24) 2009 124.92 1,220.72 2.00 (2,497.70) (14,915.25) (150.00) (16,215.31) (5,713.07)
Explanatory Notes to Cash Flow Statement 1 The Cash Flow Statement is prepared in accordance with the format prescribed by Securities and Exchange Board of India and as per Accounting Standard 3 as notified by the Central Government. 2 In Part-A of the Cash Flow Statement, figures in brackets indicate deductions made from the Net Profit for deriving the net cash flow from operating activities. In Part-B and Part-C, figures in brackets indicate cash outflows. 3 The net profit / loss arising due to conversion of current assets / current liabilities / receivable / payable in foreign currency is furnished under the head "Foreign Exchange Fluctuations" . 4 “Other Non-Cash items” include excess provisions written back, foreign exchange adjustments, diminution in value of investment, transfer to Capital reserve, Bad debts and materials written off and miscellaneous adjustments not affecting cash flow. 5 Figures of the previous year have been regrouped wherever necessary, to conform to current year's presentation. For and on behalf of the Board of Directors Sd/ASHOK SINHA Chairman and Managing Director As per our attached report of even date For and on behalf of For and on behalf of B. K. KHARE & CO. K. VARGHESE & CO. Chartered Accountants Chartered Accountants FR No: 105102W FR No: 004525S Sd/Sd/PADMINI KHARE KAICKER K. VARGHESE Partner Partner Membership No. 44784 Membership No. 20674
Place : Mumbai Dated : 27th May, 2010
166
Bharat Petroleum Corporation Limited
ANNEXURE TO THE DIRECTORS’ REPORT ANNEXURE F
Rs. Crores
STATEMENT PURSUANT TO EXEMPTION RECEIVED UNDER SECTION 212(8) OF THE COMPANIES ACT, 1956 RELATING TO SUBSIDIARY COMPANIES
Extent Reporting Capital Reserves of Currency holding Total Total Assets Liabilities Investment Turnover (except in case of Subsidiary Company) 118.20 566.63 0.00 (66.33) (24.77) (29.02) (3.07) (35.72) 0.32 7,874.09 358.11 129.63 228.48 (35.72) (3.39) (66.33) (24.77) (29.02) Profit / Provision Profit / Proposed Country of for tax (Loss) Dividend Incorporation (Loss) after tax before tax 110.34 India - India - India - Netherlands - Netherlands - Netherlands - Netherlands
Sr. Name of the Subsidiary Company No.
1 100% 100% 100% 100% 100% 100% USD 189.27 (29.16) * 160.39 0.27 USD 455.11 (59.85) * 924.03 528.77 USD 11.39 (0.14) * 11.35 0.09 USD 656.93 (90.18) * 567.12 0.37 INR 0.05 (5.40) * 111.41 116.76 INR 702.55 (58.03) * 974.79 330.26
Numaligarh Refinery Limited
61.65%
INR 735.63
1,714.41
4,206.26 1,756.22
2
Bharat PetroResources Limited
3
Bharat PetroResources JPDA Limited
4
BPRL International B.V.
5
BPRL Ventures Indonesia BV
6
BPRL Ventures B.V.
7
BPRL Ventures Mozambique B.V.
*
Represents negative Reserves.
Notes:
(i)
Numaligarh Refinery Limited and Bharat PetroResources Limited are direct subsidiaries of Bharat Petroleum Corporation Limited.
(ii)
Bharat PetroResources JPDA Limited, and BPRL International B.V. are subsidiaries of Bharat PetroResources Limited.
(iii) BPRL Ventures BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia BV are wholly owned subsidiaries of BPRL International BV
(iv) The first accounts of BPRL Ventures Indonesia BV is prepared for the period 21st August 2009 to 31st March 2010.
(v)
The financial statements of BPRL International BV are drawn for the 15 months ended 31st March, 2010
(vi) Indian Rupees (INR) equivalent of the figures of subsidiary companies whose Repor ting Currency is US Dollar (USD) is based on exchange rates as on 31st March 2010. (USD 1 = INR 45.14).
Annual Report 2009-2010
167
168
Financial Year ending of the Subsidiary Companies 2 3 4 No. of shares held as on 31.3.2010 Extent of holding by holding company 31.3.2010 100% 100% 100% 100% (26.36) (70.60) (3.39) (2.00) (24.03) (35.35) (35.72) (21.31) 61.65% The net aggregate amount of the Subsidiary Company's Profit/(Loss) so far as it concerns the members of the Holding Company and not dealt with in the accounts of the Holding Company (Except to the extent dealt within Col.7 & 8) 5 6 For the Financial For the Previous Financial Year ended Years since it became a 31.3.2010 Subsidiary Company (Rs. In Crores) (Rs. In Crores) 143.08 1,047.51 The net aggregate amount of the Subsidiary Company's Profit/(Loss) so far as it concerns the members of the Holding Company and dealt with in the accounts of the Holding Company. 7 8 For the Financial For the Previous Financial Year ended Years since it became a 31.3.2010 Subsidiar y Company (Rs. In Crores) (Rs. In Crores) 68.03 472.75 31.3.2010 (Refer Note 1) 31.3.2010 (Refer Note 1) 31.3.2010 (Refer Note 2 & 3) 31.3.2010 (Refer Note 2) 31.3.2010 (Refer Note 2) 31.3.2010 (Refer Note 2) 1860027 shares of Euro 1 each fully paid up 100% 30593078 shares of Euro 1 each fully paid up 100% (30.88) (0.16) 453545998 shares of Rs.10/each fully paid up 702552610 shares of Rs.10/each fully paid up 49940 shares of Rs.10/each fully paid up 106880846 shares of Euro 1 each fully paid up 74135411 shares of Euro 1 each fully paid up (0.15) -
STATEMENT REGARDING SUBSIDIARY COMPANIES PURSUANT TO SECTION 212(1)(e) OF THE COMPANIES ACT,1956
Name of the Subsidiary Companies
1
1.
Bharat Petroleum Corporation Limited Sd/S.K.Joshi Director(Finance) Sd/S.V.Kulkarni Company Secretary
2.
3.
4.
5.
6.
7.
Numaligarh Refinery Ltd (NRL) (w.e.f. 31.3.2001) Bharat PetroResources Ltd. (BPRL) (w.e.f. 17.10.2006) Bharat PetroResources JPDA Ltd. (w.e.f. 28.10.2006) (subsidiary of BPRL) BPRL International BV (w.e.f. 26.3.2008) (subsidiary of BPRL) BPRL Ventures BV (w.e.f. 26.3.2008) (subsidiary of BPRL International BV) BPRL Ventures Mozambique BV (w.e.f. 23.7.2008) (subsidiary of BPRL International BV) BPRL Ventures Indonesia BV (w.e.f. 21.8.2009) (subsidiary of BPRL International BV)
Notes : 1. 2. 3.
In addition to the shares held by holding company, six individuals, who are nominees of BPCL, each hold ten shares of Rs.10 each of the Company. In respect of BPRL International BV, BPRL Ventures BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia BV the figures are converted from USD to Indian Currency. Loss of BPRL International BV is consolidated loss i.e. including losses of BPRL Ventures BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia BV.
For and on behalf of the Board of Directors
Sd/Ashok Sinha Chairman & Managing Director
Place : Mumbai Date : 27th May, 2010
energising lives
Expanding Horizons for a Brighter Future
energising lives
doc_836000710.pdf
The report for the financial year 2009 - 2010 of BPCL.
energising lives
A N N U A L R EP O R T 2009- 2010
Exploring Opportunities
We are committed to expanding our horizons, synergizing efforts to attain excellence and enhance value for our stakeholders. With an inspiring vision as our lodestar, we continually adapt to change, devising novel strategies to succeed in a global environment. We strive to continuously surpass the diverse expectations of our customers, leveraging technology and our enthusiastic workforce to evolve innovative solutions to achieve our desired goals. Energizing lives continues to remain central to all our endeavours. We focus on sustainable development with great importance accorded to social responsibility, health, safety, security and environmental care. We also transcend boundaries in our search for renewable energies, leading to a greener and cleaner future.
BPCL …. leaving footprints of excellence.
Chairman’s Letter
Dear Shareowners, I would like to inform you that I will be laying down of?ce on 18th August, 2010 on the expiry of my term as Chairman & Managing Director. I, therefore, will not have the privilege of addressing you at the forthcoming Annual General Meeting to be held in September. Over the last 33 years, I have had the honour of being a part of the Bharat Petroleum family and leading the Organisation as the Chairman & Managing Director since August, 2005. As we enter a new decade, BPCL is poised to spread its wings and become one of the leading energy companies. These are exciting times for India and BPCL is well placed to make a signi?cant contribution in meeting the growing energy needs of the country. It is an opportune time for a change of guard and for a new Captain to take charge and elevate BPCL to an even higher plane in terms of performance and achievement. BPCL has evolved from being an oil re?ning and marketing entity to a group having a presence, not only across the country but in several parts of the world. BPCL has been amongst the ?rst in India to embrace cutting edge technology in key areas of operations and introduce products and services aimed at meeting existing and emerging needs of the consumer. It is little wonder then that the BPCL brand enjoys one of the highest valuations in the country. During the last ?ve years, there have been many major achievements. The processing capacity of Kochi Re?nery has been expanded from 7.5 MMTPA to 9.5 MMTPA. The grass roots re?nery at Bina costing Rs. 11,397 crores, the biggest project ever to be undertaken by BPCL, is ready to be commissioned. With this, the group’s annual re?ning capacity will exceed 30 MMT and will give BPCL access to its own source of products across the country. Growth in market volumes has kept pace with the increase in re?ning capacity. Entry into the upstream sector of Exploration and Production has gathered pace, with BPCL having a presence in six countries across ?ve continents. Results have been very encouraging with the announcement of two discoveries of oil and gas in Brazil and Mozambique respectively. The foray into gas and alternate sources of energy has been progressing smoothly. The focus on Research & Development will yield results in the days to come. The BPCL group is therefore, well poised to reach the next level in terms of growth and expansion. The recent past has easily been one of the most challenging periods. The global economy has been experiencing an upheaval, the likes of which have not been witnessed for a very long time. The Indian oil industry has had to grapple with the problem of volatile crude oil prices, rising under-recoveries on the sale of four key petroleum products, severe liquidity constraints and rising costs of borrowings. At the same time, it had to ful?ll its responsibility of meeting the growing energy needs of the country. It is gratifying to note that the challenging external environment has not been an impediment to BPCL achieving the goals that it had set for itself. Overcoming adverse conditions and delivering excellence has been BPCL’s forte. This has been possible owing to the composition of its DNA. BPCL considers ‘Innovation’ as the key philosophy driving the business. This has enabled BPCL to have the ?rst mover advantage in terms of introducing novel offerings to meet the emerging customer needs. It has also enabled the Organisation to look at out-of-the-box solutions and process improvements when confronted with the effects of the economic
downturn. The ability to innovate ?ows from the inherent trait of the company to deal with ‘Change.’ In today’s dynamic and volatile environment, managing change is very important to sustain and improve pro?tability and growth. BPCL also thrives on ‘Collaboration,’ both within and outside the organization, thereby facilitating the leveraging of mutual strengths. We have successfully partnered with some of the leading companies, particularly in the upstream sector. Within the organization also, cross-functional teams are at the forefront in all the major initiatives that are undertaken. This work environment has been extremely conducive for achieving excellence. Finally, the ‘Leadership’ talent developed within the company is one of BPCL’s core strengths. The challenging internal work environment has facilitated the development of a strong pool of leaders. This has not only enabled the development of the next level of leaders, but has also helped in evolving managers with an entrepreneurial spirit. These are unique features which have enabled BPCL to not only cope with challenges, but also emerge stronger. As the economy grows, opportunities are only going to increase. It is important to make calculated moves in the areas of Exploration & Production, Green Power, Research & Development, Customer Responsiveness and Capacity Building. Even as I prepare to lay down of?ce, BPCL is preparing its action plan for the coming years. The entire Organisation, starting with the Board, has been involved in articulating the goals for the next ?ve years till 2015 under Project DreamPlan. Having led the BPCL team and having seen the employees perform from close quarters, I am con?dent of BPCL’s abilities to achieve its ambitious goals in the years ahead. I have been extremely fortunate to work with a committed group of people who have a passion for excellence. The results achieved can be attributed solely to the untiring efforts of every member of the BPCL team. The cooperation and guidance provided
by my colleagues on the Board was invaluable. Your unstinting support in all our endeavours was crucial in its success, for which I will remain eternally grateful. I have no doubt that the coming days will see BPCL scaling greater heights as it continues with its mission of energising lives. I truly see BPCL becoming the most admired Global Energy Company, innovatively leveraging people and technology. Warm regards, ASHOK SINHA Chairman & Managing Director
Board of Directors
Chairman & Managing Director
ASHOK SINHA
S. RADHAKRISHNAN
Director (Marketing)
Director (Finance)
S. K. JOSHI
Director (Re?neries)
R. K. SINGH
Addl. Secretary & Financial Advisor, Ministry of Petroleum & Natural Gas
P. K. SINHA
Additional Chief Secretary,(I&C) Government of Kerala (up to 29.6.2010)
T. BALAKRISHNAN
ALKESH KUMAR SHARMA
Secretary (IP), Government of Kerala (w.e.f. 30.6.2010)
S. K. BARUA
Director
RAMA BIJAPURKAR
Director (up to 30.6.2010)
I. P. S. ANAND
Director (w.e.f. 28.1.2010)
Bankers
State Bank of India Union Bank of India Corporation Bank Bank of India State Bank of Patiala Central Bank of India Deutsche Bank Standard Chartered Bank ABN AMRO Bank N.V. ICICI Bank HDFC Bank Ltd. State Bank of Travancore Indian Bank Industrial Development Bank of India Ltd. BNP Paribas Calyon Bank
Director (Human Resources)
S. MOHAN
Auditors
B. K. Khare & Co. K. Varghese & Co.
Director (up to 28.1.2010)
A. H. KALRO
N. VENKITESWARAN
Director
Share Transfer Agents
Data Software Research Co. Pvt. Ltd. 22, Sree Sovereign Complex, 4th Cross Street, Trustpuram, Kodambakkam, Chennai 600 024
Registered Office
HARESH M. JAGTIANI
Director (w.e.f. 28.1.2010)
Bharat Bhavan 4&6 Currimbhoy Road, Ballard Estate, Mumbai 400 001
S. V. KULKARNI
Company Secretary
Group Performance Highlights
Contents
Chairman’s Letter Board of Directors Bankers, Auditors, Share Transfer Agents and Registered Of?ce Group Performance Highlights Management Team Notice to Shareholders Directors’ Report Management Discussion & Analysis Report 2 4 5
6 8 10 16 28 81 82 91 96 129 132
Sales turnover at Rs. 133,749.10 crores Crude throughput at 23.03 MMT Market Sales including exports at 30.76 MMT Net pro?t at Rs. 1,719.98 crores Oil and Gas discoveries abroad show promise Innovating continuously across the entire value chain
Comments of C & AG Performance Pro?le Auditors’ Report Balance Sheet and Pro?t & Loss Account Cash Flow Statement Consolidated Financial Statements
Mr. S. Mohan, Director (Human Resources), Mr. S. Radhakrishnan, Director (Marketing), Mr. Ashok Sinha, Chairman & Managing Director, Mr. S. K. Joshi, Director (Finance) and Mr. R. K. Singh, Director (Re?neries).
Ms. I. Sasikala Mr. A.K. Bansal Mr. Anurag Deepak Mr. B.K. Datta Mr. D.M. Reddy Ms. Dipti Sanzgiri Mr. E. Nandakumar Mr. J. Ravichandran Mr. K.K. Gupta Mr. K.V. Seshadri Mr. P.S. Bhargava Mr. R.K. Mehra Mr. R.M. Gupta Mr. S. Krishnamurti Mr. S.P. Gathoo Mr. S. P. Mathur Mr. S. Ramesh Ms. Sumita Bose Roy Mr. S. Varadarajan Mr. A.K. Kaushik Mr. Basudev Rana Mr. Brij Pal Singh Mr. George Paul Mr. G.S. Wankhede Mr. I. Srinivas Rao Mr. J. Dinaker Mr. John Minu Mathew Mr. J.R. Akut Mr. J.S. Sokhi Mr. K.B. Narayanan Mr. K. N. Ravindran
Chief Vigilance Officer Executive Director (Gas) Executive Director Logistics (Retail), Mumbai Executive Director (Supply Chain Optimization) Executive Director (Industrial & Commercial) Executive Director (Human Resources Development) Executive Director, Kochi Refinery Executive Director (Refineries Finance) Executive Director (Retail) In-charge Executive Director, Mumbai Refinery Executive Director (Planning) Executive Director (International Trade) Executive Director (LPG) Executive Director (Corporate Affairs) Executive Director (Human Resources Services) Executive Director (Engineering & Projects) Executive Director (Lubes) Executive Director (Audit) Executive Director (Corporate Finance) General Manager (IS - Infrastructure & Services) General Manager (Highway Retailing), Retail HQ General Manager (Operations), Retail General Manager (Sales) Retail HQ General Manager (Operations), MMBPL General Manager (LNG Marketing) General Manager Finance (International Trade) General Manager (Technical), Kochi Refinery General Manager (IIS Technology) General Manager (Retail Initiatives), Retail HQ General Manager (ERP - CC) General Manager (Projects), Kochi Refinery
Mr. K.P. Chandy Mr. K.V. Shenoy Mr. M.M. Chawla Mr. M.M. Somaya Mr. M.P. Govindarajan Ms. Monica Widhani Mr. N.S. Ramu Mr. P. Balasubramanian Mr. P. C. Srivastava Mr. Pallav Ghosh Mr. P. Padmanabhan Mr. Pramod Sharma Mr. Prasad K. Panicker Mr. P.V. Kumar Mr. R.P. Natekar Mr. R. Ranganath Mr. S.B. Bhattacharya Mr. S.K. Agrawal Mr. S.K. Mathur Mr. Sharad K. Sharma Mr. S. Vijayakumar Mr. Tapan Datta Mr. Tomy Mathews Mr. T. Somanath Dr. U.V. Girish Kumar Mr. V. Anand Mr. Vinod Giri Mr. Arun Kumar Singh Mr. D.K. Mane Dr. G. Vasudev Ms. Madhu Sagar
Regional LPG Manager, South General Manager (Retail) In-charge, South General Manager (Pipeline Projects), E&P General Manager (Brand & Public Relations) General Manager (Human Resources), Kochi Refinery General Manager (Urban Retailing) General Manager (Retail), South General Manager (Corporate Finance) General Manager (Retail), West General Manager (Retail), East General Manager (Technical), Mumbai Refinery General Manager (Coordination) General Manager (Operations), Mumbai Refinery General Manager (International Trade) General Manager (Corporate Treasury) General Manager Finance (Retail) HQ General Manager (Aviation) General Manager (Legal) General Manager (Retail), North General Manager Sales (LPG) HQ General Manager (Human Resources), Mumbai Refinery General Manager (Vigilance), CO General Manager (Operations), Kochi Refinery General Manager – Talent Management General Manager (IT & BI), Retail HQ General Manager (Sales), Retail South General Manager (Marketing Corporate) Chief Procurement Officer Head (Health, Safety, Security & Environment) Entity Dy. General Manager (Quality Control Cell) Dy. General Manager (Employee Satisfaction Enhancement), CO Company Secretary
Management Team
Mr. P. Anandasundaresan General Manager (Sales) I&C, Mumbai
Mr. S.V. Kulkarni
Annual Report 2009-2010
9
NOTICE TO THE SHAREHOLDERS
Notice is hereby given that the 57th Annual General Meeting of the Shareholders of Bharat Petroleum Corporation Limited will be held in the Rama Watumull Auditorium at Kishinchand Chellaram College (K.C College), 124, Dinshaw Wacha Road, Churchgate, Mumbai-400 020, on Friday, the 24th September, 2010, at 10.30 a.m. to transact the following Ordinary and Special Business: A. Ordinary Business 1. To receive, consider and adopt the Audited Profit & Loss Account for the year ended 31st March, 2010, the Balance Sheet as at that date and the Reports of the Board of Directors and the Statutory Auditors and the Comments of the Comptroller & Auditor General of India thereon. 2. To declare dividend. 3. To appoint a Director in place of Shri S. K. Joshi, Director, who retires by rotation in pursuance of Section 256 of the Companies Act, 1956. Shri S. K. Joshi, being eligible, offers himself for re-appointment. 4. To appoint a Director in place of Shri R. K. Singh, Director who retires by rotation in pursuance of Section 256 of the Companies Act, 1956. Shri R. K. Singh, being eligible, offers himself for re-appointment. 5. To fix the remuneration of the Statutory Auditors. To consider and, if thought fit, to pass the following Resolution, with or without modifications, as an Ordinary Resolution: “RESOLVED that pursuant to the provisions of Section 224(8)(aa) and other applicable provisions, if any, of the Companies Act, 1956, remuneration of the Single / Joint Statutory Auditors as appointed by the Comptroller & Auditor General of India (C&AG) under Section 619(2) of the said Act, be and is hereby approved at Rs. 20,00,000, to be shared in case of joint auditors, plus payment of actual reasonable travelling and out of pocket expenses and service tax as applicable, for the year 2010-11 and also for subsequent years.” B. Special Business 6. Appointment of Director To consider and, if thought fit, to pass the following Resolution, with or without modifications, as an Ordinary Resolution: “RESOLVED that pursuant to Section 257 and other applicable provisions, if any, of the Companies Act, 1956 Shri I. P S. Anand be and is hereby appointed as Director of the Company.” . 7. Appointment of Director To consider and, if thought fit, to pass the following Resolution, with or without modifications, as an Ordinary Resolution: “RESOLVED that pursuant to Section 257 and other applicable provisions, if any, of the Companies Act, 1956 Shri Haresh M. Jagtiani be and is hereby appointed as Director of the Company.” 8. Appointment of Director To consider and, if thought fit, to pass the following Resolution, with or without modifications, as an Ordinary Resolution: “RESOLVED that pursuant to Section 257 and other applicable provisions, if any, of the Companies Act, 1956 Shri Alkesh Kumar Sharma, Secretary, Investment Promotion, Government of Kerala be and is hereby appointed as Director of the Company.”
10
Bharat Petroleum Corporation Limited
9. Appointment of Director To consider and, if thought fit, to pass the following Resolution, with or without modifications, as an Ordinary Resolution: “RESOLVED that pursuant to Section 257 and other applicable provisions, if any, of the Companies Act, 1956 Shri N. Venkiteswaran be and is hereby appointed as Director of the Company.” By order of the Board of Directors Sd/(S. V. Kulkarni) Company Secretary Registered Office : Bharat Bhavan, 4 & 6 Currimbhoy Road, Ballard Estate, Mumbai - 400 001. Date: 10th August, 2010 Notes : 1. Explanatory statement under Section 173 of the Companies Act, 1956, in respect of the items of Special Business is annexed hereto. 2. A MEMB ER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY OR PROXIES TO ATTEND AND VOTE INSTEAD OF HIMSELF AND SUCH PROXY NEED NOT BE A MEMBER. PROXIES, IN ORDER TO BE EFFECTIVE, SHOULD BE DULY COMPLETED & AFFIXED WITH REVENUE STAMP AND BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THAN FORTY EIGHT HOURS BEFORE COMMENCEMENT OF THE MEETING. 3. The Share Transfer Books of the Company will remain closed from Monday, 13th September, 2010 to Friday, 24th September, 2010 (both days inclusive), for the purpose of payment of dividend on equity shares for the year ended 31st March, 2010, if declared at the Annual General Meeting as under: a) To all Beneficial Owners in respect of shares held in electronic form as per the data to be made available by NSDL/CDSL as at the close of the last working day on or before 12th September, 2010. b) To all Members in respect of shares held in physical form after giving effect to transfer in respect of valid share transfer requests lodged with the Share Transfer Agent viz. Data Software Research Co. Pvt. Ltd. on or before 12th September, 2010. 4. The unclaimed dividends of BPCL and erstwhile Kochi Refineries Limited (KRL) for the financial years upto 1993-94 had been transferred by the Companies to the General Revenue Account of the Central Government, which can be claimed by the Shareholders from the Office of the Registrar of Companies at Mumbai and Kochi, respectively. 5. (a) Pursuant to Section 205A(5) and Section 205C of the Companies Act, 1956, any amount of dividend remaining unpaid or unclaimed for a period of seven years from the date of its transfer to the Unpaid Dividend Account of the Company is required to be transferred to the Investor Education & Protection Fund established by the Central Government. Accordingly, the unclaimed dividends for the financial years ended 31st March, 1995 to 31st March, 2002 of BPCL and erstwhile KRL, and also unclaimed amount of interim dividend for the financial year 31st March, 2003 in respect of BPCL had been transferred to the said Fund and no claim shall lie against the said Fund, or the Company, for the amount of dividends so transferred. (b) Shareholders of BPCL who have not yet encashed their Final dividend warrant(s) for the financial year ended 31st March, 2003 or dividend warrants(s) for any subsequent financial years are requested to make their claims to the Share Transfer Agent of the Company or to the Registered Office of the Company. With regard to unclaimed amount of dividend for the financial year ended 31st March, 2003 and for subsequent financial years of erstwhile KRL, the claims can be made to the Share Transfer Agent of the Company. It may be noted that the unclaimed amount of final dividend for the financial year ended 31st March, 2003 becomes due for transfer to the Investor Education and Protection Fund on 14.8.2010 in respect of erstwhile KRL and 23.9.2010 in respect of BPCL. Annual Report 2009-2010
11
EXPLANATORY STATEMENT Annexed to the Notice convening the 57th Annual General Meeting to be held on Friday, the 24th September, 2010. Item No. 6 Appointment of Director Shri I. P S. Anand was appointed as Additional Director of Bharat Petroleum Corporation Ltd. effective 28.1.2010. . Being an Additional Director, he holds office up to the date of the ensuing Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956 from a Member proposing the name of Shri I. P S. . Anand as Director of the Company. A brief resume of Shri I. P S. Anand, as required under Clause 49(IV)(G) of the Listing . Agreement, is provided separately in the Corporate Governance Report enclosed to the Directors’ Report. Shri I. P S. . Anand does not hold any share in the Company as on the date of appointment. The Directors recommend appointment of Shri I. P S. Anand as Director of the Company. . Except Shri I. P S. Anand, no other Director is interested in the Resolution. . Item No. 7 Appointment of Director Shri Haresh M. Jagtiani was appointed as Additional Director of Bharat Petroleum Corporation Ltd effective 28.1.2010. Being an Additional Director, he holds office up to the date of the ensuing Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956 from a Member proposing the name of Shri Haresh M. Jagtiani as Director of the Company. A brief resume of Shri Haresh M. Jagtiani, as required under Clause 49(IV)(G) of the Listing Agreement, is provided separately in the Corporate Governance Report enclosed to the Directors’ Report. Shri Haresh M. Jagtiani does not hold any share in the Company as on the date of appointment. The Directors recommend appointment of Shri Haresh M. Jagtiani as Director of the Company. Except Shri Haresh M. Jagtiani, no other Director is interested in the Resolution. Item No. 8 Appointment of Director Shri Alkesh Kumar Sharma was appointed as Additional Director of Bharat Petroleum Corporation Ltd effective 30.6.2010. Being an Additional Director, he holds office up to the date of the ensuing Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956 from a Member proposing the name of Shri Alkesh Kumar Sharma as Director of the Company. A brief resume of Shri Alkesh Kumar Sharma, as required under Clause 49(IV)(G) of the Listing Agreement, is provided separately in the Corporate Governance Report enclosed to the Directors’ Report. Shri Alkesh Kumar Sharma does not hold any share in the Company as on the date of appointment. The Directors recommend appointment of Shri Alkesh Kumar Sharma as Director of the Company. Except Shri Alkesh Kumar Sharma, no other Director is interested in the Resolution. Item No. 9 Appointment of Director Prof. N. Venkiteswaran was appointed as Director of Bharat Petroleum Corporation Ltd. effective 16.7.2010. He holds office up to the date of the ensuing Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956 from a Member proposing the name of Prof. N. Venkiteswaran as Director of the Company. A brief resume of Prof. N. Venkiteswaran, as required under Clause 49(IV)(G) of the Listing Agreement, is provided separately in the Corporate Governance Report enclosed to the Directors’ Report. Prof. N. Venkiteswaran does not hold any share in the Company as on the date of appointment. The Directors recommend appointment of Prof. N. Venkiteswaran as Director of the Company. Except Prof. N. Venkiteswaran, no other Director is interested in the Resolution. By order of the Board of Directors Sd/(S. V. Kulkarni) Company Secretary Registered Office : Bharat Bhavan, 4 & 6 Currimbhoy Road, Ballard Estate, Mumbai 400001 Date : 10th August, 2010
12
Bharat Petroleum Corporation Limited
Note : The figures for the years 2005-06 and onwards are merged figures including erstwhile KRL.
Annual Report 2009-2010
13
Note : The figures for the years 2005-06 and onwards are merged figures including erstwhile KRL.
14
Bharat Petroleum Corporation Limited
Annual Report 2009-2010
15
Directors’ Report
The Directors take pleasure in presenting their Report on the performance of Bharat Petroleum Corporation Limited (BPCL) for the year ended 31st March, 2010. PERFORMANCE OVERVIEW Group Performance The aggregate Refinery throughput at BPCL’s Refineries at Mumbai and Kochi and that of its subsidiary company, Numaligarh Refinery Limited (NRL) in 2009-10 was 23.03 Million Metric Tonnes (MMT) as compared to 22.20 MMT in 2008-09. The BPCL Group ended the year with market sales of 28.06 MMT as compared to 27.45 MMT in the previous year. The group’s exports of petroleum products during the year stood at 2.70 MMT as against 1.38 MMT in 2008-09. The financial year saw the group achieve a sales turnover of Rs. 133,749.10 crores, as compared to Rs. 147,336.82 crores recorded in 2008-09. The Profit after Tax stood at Rs. 1,719.98 crores in 2009-10 as against Rs. 724.13 crores in the previous year. After setting off the minority interest, the Group earnings per share increased to Rs. 45.15 in the current year from Rs. 17.53 in 2008-09.
CONSOLIDATED GROUP RESULTS 2009-10 Physical Performance Crude Throughput (MMT) Market Sales (MMT) 23.03 28.06 22.20 27.45 2008-09
Financial Performance Sales / Income from Operations Less: Excise Duty Paid Net Sales / Income from Operations Gross Profit Interest Depreciation & amortization Profit before tax Provision for taxation – Current Profit after Current Tax Provision for Fringe Benefit Tax Provision for taxation – Deferred Short provision for Taxation in earlier years provided for Net Profit Minority Interest Net Income of the group attributable to BPCL Group Earnings per share attributable to BPCL (Rs.) 133,749.10 (9,932.38) 123,816.72 5,341.35 1,124.66 1,444.56 2,772.13 1,324.75 1,447.38 (301.27) 28.67 1,719.98 87.62 1,632.36 45.15
Rs. in Crores 147,336.82 (10,779.70) 136,557.12 4,800.60 2,404.32 1,261.71 1,134.57 674.06 460.51 14.40 (285.11) 7.09 724.13 90.37 633.76 17.53
16
Bharat Petroleum Corporation Limited
Company Performance During the year 2009-10, the crude throughput at BPCL’s refineries at Mumbai and Kochi was 20.41 MMT as against the level of 19.94 MMT achieved in 2008-09. The market sales of the company increased from 27.16 MMT in 2008-09 to 27.70 MMT in 2009-10.
FINANCIAL HIGHLIGHTS Rs. in Crores 2009-10 Sales Turnover – Gross Gross Profit before Depreciation, Interest and Tax Interest Depreciation & amortization Profit before tax Provision for Taxation – Current Provision for Fringe Benefit Tax Provision for Taxation – Deferred Short provision for taxation in earlier years provided for Net Profit Balance brought forward Amount available for disposal # Rs. 10,000 The Directors propose to appropriate this amount as under: Towards Dividend: Final (proposed) Dividend Towards Corporate Dividend Tax For transfer to Debenture Redemption Reserve For transfer to General Reserve Balance carried to Balance Sheet Summarized Cash Flow Statement : Cash Flows: Inflow/(Outflow) from operations Inflow/(Outflow) from investing activities Inflow/(Outflow) from financing activities Net increase/(decrease) in cash & cash equivalents
BPCL’s sales turnover for 2009-10 stood at Rs. 131,499.72 crores, reflecting a reduction of 9.55% over the previous year’s turnover of Rs. 145,392.07 crores. However, the sales in volume terms increased from 27.16 MMT in 2008-09 to 27.70 MMT in 2009-10, registering an increase of 1.99%. The profit before tax for the year increased by 132.65% over the preceding year to reach a level of Rs. 2,366.05 crores as compared to Rs. 1,004.11 crores in 2008-09. After providing for tax, (including deferred tax and fringe benefit tax) of Rs. 828.43 crores as against Rs. 268.21 crores during the last year, the profit after tax
2008-09 145,392.07 4,246.01 2,166.37 1,075.53 1,004.11 490.00 13.25 (242.13) 7.09 735.90 # 735.90
131,499.72 4,619.32 1,010.95 1,242.32 2,366.05 1,127.00 (303.25) 4.68 1,537.62 76.37 1,613.99
506.16 72.77 700.00 154.00 181.06
253.08 31.45 300.00 75.00 76.37
(1,515.15) 1,538.43 652.09 675.37
6,212.34 (9,908.75) (2,285.32) (5,981.73)
for the year stood at Rs. 1,537.62 crores, showing an increase of 108.94% over the level of Rs. 735.90 crores recorded in 2008-09. The Board of Directors has recommended a dividend of 140% (Rs. 14 per share) for the year on the paid-up share capital of Rs.361.54 crores which will absorb a sum of Rs. 578.93 crores out of the profit after tax inclusive of Rs. 72.77 crores for Corporate Dividend Tax on distributed profits. BPCL’s net worth as on 31st March, 2010 stands at Rs. 13,086.71 crores, as compared to Rs. 12,128.11 crores as at the end of the previous year.
Annual Report 2009-2010
17
The earnings per share amounted to Rs. 42.53 in 2009-10 as compared to Rs. 20.35 in 2008-09. Internal cash generation during the year were higher at Rs. 1,898.10 crores as against Rs. 1,282.29 crores in 2008-09. BPCL’s contribution to the exchequer by way of taxes and duties during 2009-10 amounted to Rs. 26,685.75 crores as against Rs.25,331.78 crores in the previous financial year. Borrowings from banks decreased from Rs. 19,242.56 crores as at 31st March, 2009 to Rs. 18,743.87 crores at the close of the current financial year. The Collateralized Borrowing and Lending Obligation (CBLO) through Clearing Corporation of India Limited amounted to Rs. 500 crores as at the end of the year as compared to Rs. 150 crores at the end of the previous year. Loans from Oil Industry Development Board increased to Rs. 921.37 crores as at 31st March, 2010 as compared to Rs. 761.50 crores at the end of the previous year. Debentures worth Rs. 1,000 crores were issued during the year and remained outstanding as on 31st March 2010 in addition to the debentures of Rs. 1,000 crores issued in 2008-09. Public deposits as at 31st March 2010 stood at Rs. 0.24 crores as compared to Rs. 3.45 crores at the end of the previous year. The amount of deposits, matured but unclaimed, at the end of the year was Rs. 0.15 crores, which pertains to 35 depositors. The total Capital Expenditure during the year 2009-10 amounted to Rs. 3,446.55 crores as compared to Rs. 2,389.34 crores during the year 2008-09. The Comptroller and Auditor General of India (C&AG) has no comment upon or supplement to the Statutory Auditors’ Report on the Accounts for the year ended 31st March, 2010. The letter from C&AG is annexed as Annexure E. REFINERIES MUMBAI REFINERY During the year 2009-10, Mumbai Refinery with an installed capacity of 12 MMTPA, processed 12.52 MMT of crude oil as against 12.26 MMT processed in 2008-09. Notwithstanding the turnarounds in some major units during the year, the refinery achieved a capacity utilization of 104% as compared to 102% in the previous year. The refinery achieved its highest ever production of several products including Liquefied Petroleum Gas (LPG), Methyl Tertiary Butyl Ether (MTBE), Aviation Turbine Fuel (ATF) and Lube Base Oils. The refinery also commenced the production of Euro IV quality Motor Spirit (MS) and High Speed Diesel (HSD) from February 2010. During the year, the refinery processed the Nigerian crude oil - Agbami for the first time. The gross refining margin (GRM) for the year stood at USD 1.78 per barrel as compared to USD 4.48 per barrel in 2008-09. This has translated into an overall gross margin of Rs. 792.63 crores for the year as compared to Rs. 1,892.28 crores in 2008-09. The reduction in the GRM was mainly due to volatility in the international prices of crude oil and finished products and unfavorable crude-product spreads.
KOCHI REFINERY: Kochi Refinery recorded a throughput of 7.89 MMT in 2009-10 as compared to 7.68 MMT achieved in 2008-09. The capacity utilization of the refinery stood at 105% as compared to 102.4% in the previous year. This was achieved despite a major shutdown undertaken in connection with the capacity expansion of the refinery. The refinery also processed the Agbami crude oil for the first time. The refinery achieved its highest level of production of ATF and packed Bitumen during the year. The gross refining margin for the year 2009-10 was USD 4.87 per barrel as against USD 6.28 per barrel in the previous year. This translated into an overall gross margin of Rs. 1,366.63 crores for the year as compared to Rs. 1,658.78 crores in 2008-09. The details of the performance of the Refineries, their activities and future plans are discussed in the Management Discussion and Analysis Report (MD&A). MERGER OF KRL WITH BPCL As informed in the last year’s Report, merger of the erstwhile Kochi Refineries Limited (KRL) with BPCL under Sections 391 to 394 of the Companies Act 1956 had been completed, following receipt of the Order dated 18th August, 2006 issued by the Ministry of Company Affairs, New Delhi. One of the Shareholders of the erstwhile KRL had filed a Writ Petition in the Delhi High Court challenging the merger, and the same is pending as on date. MARKETING During the year 2009-10, BPCL’s market sales volume touched a level of 27.70 MMT as compared to 27.16 MMT in the previous year. This represented a growth rate of 1.99% over the previous year. BPCL’s market share amongst the public sector oil companies stood at 22.38% as at 31st March, 2010 as compared to 22.62% as at the end of the previous year. A detailed discussion of the performance of the Marketing function is given in the MD&A. PROJECTS Central India Refinery Project Bharat Oman Refineries Limited (BORL), a company promoted by BPCL, is setting up a 6 MMTPA capacity grass roots Refinery at Bina in Madhya Pradesh. Oman Oil Company Limited (OOC) is partnering BPCL in this project. The refinery is being set up along with crude oil import facilities consisting of a Single Point Mooring (SPM) system and Crude Oil Storage Terminal (COT) at Vadinar and cross-country crude oil pipeline from Vadinar to Bina. The project is estimated to have an as-built capital cost of Rs.11,397 crores which will be funded with a debt equity ratio of 1.6:1. BORL has an authorized share capital of Rs. 7,000 crores. BPCL and OOC had invested Rs. 75.5 crores each in the equity share capital of BORL. BPCL, with the approval of
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the Government of India, decided to enhance its equity contribution in the equity of BORL to the extent of 50%. OOC agreed to make an additional investment of Rs. 1,219.67 crores in 81.31 crores equity shares at a premium of Rs. 5 per share for which the Investors Rights Agreement (IRA) was signed between BPCL, OOC and BORL in November 2009. The agreed investment has been brought in and OOC was allotted 81.31 crores equity shares in May 2010. As on 31st March, 2010, BPCL had contributed a sum of Rs. 1,300 crores towards subscribing for shares in BORL. An amount of Rs. 813.11 crores from this was converted into 81.31 crores equity shares at par and allotted to BPCL in May 2010. The balance amount of Rs. 486.89 crores was converted into 48.69 crore warrants representing the right to subscribe to 48.69 crore equity shares of Rs. 10 each. BPCL has also made additional investment of Rs. 448.79 crores against which it was allotted 29.92 crore warrants, which will be entitled for equal number of equity shares of Rs. 10 each at a later date. Till the time the total equity of BORL is tied up, BPCL and OOC will hold 50% shares each in BORL. On a future date, BPCL and OOC will be holding about 49% and 26% respectively in the fully diluted equity of BORL. The refinery is slated to commence commercial production in the current year. The crude oil receipt facilities at Vadinar and crude oil tankages & intermediate product tankages at the refinery site have been commissioned. The Vadinar – Bina crude oil pipeline has been commissioned and crude oil has been received in the refinery tanks. The Crude Distillation Unit was commissioned on 29th June, 2010. The cumulative capital expenditure as on 30th June, 2010 amounted to Rs. 9,938 crores. The total commitments made up to that date was Rs. 11,012 crores. Bina Product Despatch Terminal The Bina Product Despatch Terminal is designed to facilitate the marketing of products from the new refinery at Bina. The dispatch terminal was completed with a tankage of 4.45 lakh kilolitres for storing white oils, 10 bay road loading gantry and single spur rail loading gantry for white oils, 6 x 1400 MT LPG mounded storage, 4 bays road loading gantry for LPG, and other associated infrastructural facilities, adjacent to the Bina refinery. The terminal facilities are mechanically complete. Receipt and road dispatch facilities for LPG and SKO have been commissioned. The balance commissioning will be synchronized with the commissioning of the Bina Refinery. The approved cost of the project is Rs. 639.11 crores and the cumulative expenditure as on 30th June, 2010 stood at Rs. 565.33 crores. Bina Kota Product Pipeline The project, with an approved cost of Rs. 405.82 crores, involved the laying of an 18” (45.72 cm) dia, 257 km long cross-country product pipeline from Bina to Kota, to facilitate the economic evacuation of MS, HSD, Superior Kerosene Oil (SKO) and ATF from the new refinery at Bina.
The pipeline is designed for an initial throughput of 2.8 MMTPA and will be connected to the existing multi-product Mumbai-Manmad-Manglya-Piyala-Bijwasan pipeline at Kota to facilitate distribution of products from the Bina refinery to the markets in northern India. The pipeline is mechanically complete and will be commissioned on receiving products from the Bina Refinery. The cumulative expenditure on the project as on 30th June, 2010 stood at Rs. 358.29 crores. Capacity Expansion cum Modernization Project (CEMP) – Phase II at Kochi Refinery The project was undertaken to put up facilities for production of auto fuels i.e. MS and HSD conforming to Euro III /IV equivalent norms along with modernization and capacity expansion of the refinery from 7.5 MMTPA to 9.5 MMTPA. The approved cost of the project is Rs. 3,941 crores. The capacity expansion of the refinery was completed in July 2009 and the balance facilities are expected to be completed by October 2010. The overall physical progress of the project is 96.10 % as on 30th June 2010 and the total expenditure as on that date stood at Rs. 2,731.93 crores. Fuels Quality Upgrade Project at Mumbai Refinery The project costing Rs. 390 crores was undertaken to make plant modifications at the Mumbai refinery for improving quality of MS and HSD to meet the Euro IV equivalent norms. The capacity of the Diesel Hydrodesulphurization Unit has been enhanced from 1.4 MMTPA to 2 MMTPA and a new FCC Gasoline Splitter at the Refinery was erected. The project has been completed and the units commissioned in January 2010. Continuous Catalytic Regeneration Reformer (CCR) Facilities and Hydrocracker Revamp The project is being undertaken to increase the production of Euro IV grade MS and HSD at Mumbai Refinery. This involves revamping of the Hydrocracker Unit to increase the capacity from 1.75 MMTPA to 2.0 MMTPA and setting up of a 0.9 MMTPA capacity Continuous Catalytic Regeneration (CCR) Reformer Unit at a cost of Rs. 825 crores. The project is scheduled for completion by December 2011. As on 30th June, 2010, the project has achieved physical progress of 19.67 %. The cumulative expenditure as on that date was Rs. 62.54 crores and the total commitment has exceeded Rs. 211.05 crores. LPG Import Facilities at JNPT with Strategic Storage at Uran The project is being undertaken to develop LPG import facilities at Jawaharlal Nehru Port Trust (JNPT) including installation of marine unloading arms and associated facilities; laying of 12” (30.48 cm) pipeline from JNPT to Uran LPG plant and development of refrigerated storage at Uran. The approved cost of the project is Rs.304.40 crores.
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The project has achieved an overall progress of 65.6% as on 30th June, 2010 and is scheduled for completion in December 2010. The cumulative expenditure as on 30th June, 2010 stood at Rs. 111.39 crores. Strategic Storage for LPG Strategic storage for LPG, at a total cost of Rs. 193 crores, is being provided by putting 23 mounded storage vessels at 12 different locations. These were re-designed after standardization of size and capacity, cost optimization and vessel fabrication. The work at locations is expected to be completed by December, 2010. RESEARCH & DEVELOPMENT (R&D) Research and development (R&D) is an integral part of BPCL’s strategy for achieving sustainable growth and profitability. To enhance R&D capabilities, BPCL is continuously strengthening the infrastructure and manpower resources at its Corporate R&D Centre, Greater Noida, Uttar Pradesh as well as at its Product & Application Development Centre, Sewree, Mumbai and the R&D Centre at Kochi Refinery. BPCL’s initiatives in the area of R&D are discussed separately in the MD&A. Further, the areas covered under R&D and the benefits derived from R&D activities are detailed in Form B of Annexure A to the Directors’ Report. NON-CONVENTIONAL ENERGY INITIATIVES BPCL has placed strong emphasis on the development of non-conventional/ renewable sources of energy. A number of initiatives have been undertaken in tapping non-conventional energy sources like bio-diesel, wind energy, solar energy and fuel cells in order to develop alternate sources of energy. BPCL has focused on promoting green fuels with a view to protect the environment by reducing pollution and dependency on imported fuels. Tracts of unproductive, barren and non cultivable fallow land are being used for the growth of Jatropha and Karanj plants. The plantations would contribute towards environment protection, prevention of soil erosion and provide feedstock for manufacturing bio-diesel. BPCL has promoted Bharat Renewable Energy Limited, a joint venture company with the objective of entering the Bio-diesel Value Chain in the state of Uttar Pradesh. “Project Triple One” has been launched with the aim of cultivating one million acres (404686.3 hectares) of wasteland, creating one million jobs and producing one million tonnes of Bio-diesel from the plantation to replace diesel over the next 10 years. BPCL has been one of the first energy companies to successfully generate power through windmills. Windmills with a capacity of 5 MW (four windmills of 1.25 MW each) in the hilly range of Kappatguda in Karnataka are currently in operation and the power produced by them is being sold to Karnataka State Electricity grid. BPCL has plans to make further investments in windmills in the states of Rajasthan, Maharashtra, Gujarat and Madhya Pradesh.
Work is going on for the setting up of a 1 MW capacity grid connected solar farm at BPCL’s LPG bottling plant in Lalru in the state of Punjab. As the power generated from the plant is proposed to be sold to the Punjab State Electricity Board, BPCL has signed a Power Purchase Agreement with the Board. The farm which will be spread across an area of 4 acres (1.62 hectares) has been conceived to avail of carbon emission credits under the Kyoto protocol. A 5 KVA solar cum wind power generator has been commissioned at one of BPCL’s Company Owned Company Operated (COCO) Retail Outlets near Kolkata. A 5 KVA solar power generator has also been installed at a COCO Outlet at Bangalore. INDUSTRIAL RELATIONS The overall Industrial Relations climate remained peaceful throughout the year. All organizational and employee related issues were handled with a collaborative approach and regular communication was ensured to all employees on all important issues affecting them and the Organisation. Discussions have been initiated with the Unions for signing a fresh wage settlement with them. FULFILLMENT OF SOCIAL OBLIGATIONS BPCL views Corporate Social Responsibility (CSR) as one of its core commitments to society at large. With BPCL committing 2% of the net profit of the previous financial year towards CSR, focus was placed on building a robust internal system for not only undertaking CSR projects, but also on effective management of the projects and evaluation of the outcome. ‘Education’ and ‘Water Conservation’ were the two core thrust areas although health, community development and environment conservation also remain important. For the first time, targets were set in the area of CSR in the Memorandum of Understanding that BPCL signs every year with the Ministry of Petroleum & Natural Gas. A target of making 4 villages ‘drought free’ through rainwater harvesting and also undertaking Computer Assisted Learning Programmes for 2500 children in 11 Zilla Parishad schools near Uran in Raigad Dist, Maharashtra has been agreed upon. These targets have been achieved and BPCL is now in constant communication with officials of the education department on sustaining the project, which can help in undertaking similar projects in the coming days. BPCL has also partnered with the NGO Pratham in rolling out a districtwide Education Enhance Programme in the districts of Nandurbar in Maharashtra and Sagar in Madhya Pradesh. Through this programme, BPCL plans to reach out to more than 1200 schools in both the districts, with an aim to ensure that every child in the district from class I to IV is able to read and write. BPCL is also supporting a programme to provide vocational guidance for the unemployed youth in these districts. Apart from ensuring the successful implementation of the CSR projects, staff members were encouraged to join in the CSR efforts. The CSR projects received enthusiastic support
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from employee volunteers, who in their personal time, contributed towards water conservation projects, and also in teaching children from the lower socio-economic strata. The employees put in around 1921 volunteering hours. One of BPCL’s employees has also accepted a two year assignment with an organization “Teach For India”, in which he is teaching the children from the lower socio-economic strata, in a municipal school. Several projects, which were being supported in remote rural and tribal areas, were socially audited on their impact for the first time, and the recommendations, which mostly dwelled on making beneficiaries self-reliant and empowering communities, have been acted upon. PROMOTION OF SPORTS BPCL sportspersons continued to excel in the national as well as international sports arena in several disciplines. Saina Nehwal reached a career high ranking of World no. 2 among ladies after winning the India Open GP Gold and the Singapore Super Series events. Saina went on to retain her title at the Indonesia Super Series event, which she had won in 2009 also. She was awarded the Padma Shri and Arjuna awards by the Government of India. Recently, she was named as the recipient of the Rajiv Gandhi Khel Ratna award which is the highest recognition accorded to an Indian sportsperson. Jwala Gutta won the Yonex Chinese Taipei Grand Prix Badminton tournament in the mixed doubles event. In Table Tennis, Poulomi Ghatak, who received the Arjuna Award, won a record 4 titles in the National Championships. In Chess, S. Kidambi became the fourth player from BPCL to earn the Grand Master norm. Joby Mathew won the Gold Medal in the World Arm Wrestling championships. BPCL continues to contribute significantly to the Indian contingents in various sporting disciplines. BPCL was awarded the newly instituted “Excellence in Sports” trophy for its contribution in the field of sports. BPCL also bagged the II Runners-up “Presidents Trophy” based on the points obtained in various Petroleum Sports Promotion Board (PSPB) tournaments conducted during the year. RESERVATION AND OTHER WELFARE MEASURES FOR SCHEDULED CASTES/SCHEDULED TRIBES/ OTHER BACKWARD CLASSES AND PERSONS WITH DISABILITIES BPCL has been following in letter and spirit, the Presidential Directives and other Guidelines issued from time to time by the Ministry of Petroleum & Natural Gas, Ministry of Social Justice & Empowerment and the Department of Public Enterprises relating to reservations / concessions for Scheduled Castes / Scheduled Tribes / Other Backward Classes. Adequate monitoring mechanisms have been put in place for sustained and effective compliance uniformly across the Corporation. Rosters are maintained as per the Directives and are regularly inspected by the Liaison Officer of the Corporation as well as the Liaison Officer of the Ministry of Petroleum & Natural Gas, to ensure proper compliance of the Directives.
Students belonging to Scheduled Castes / Scheduled Tribes and those who are economically backward are encouraged by being awarded scholarships for pursuing courses at Industrial Training Institutes (ITI) & secondary school education up to graduation level. BPCL also complies with provisions under “The Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation), Act 1995” relating to providing employment opportunities and concessions for persons with disabilities. Special recruitment drives were conducted to fulfill the obligations in line with the provisions of employment opportunities. Details relating to representation/appointment of Scheduled Castes / Scheduled Tribes / Other Backward Classes and Persons with Disabilities are enclosed as Annexure D. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY The Official Language Implementation Committees (OLIC) continue to function at the Corporate and Regional offices, Refineries and major locations in order to implement various provisions of the Official Language Act and Rules across the company. Keeping in view the Annual Programme issued by the Government of India, these Committees meet on a quarterly basis and take decisions with regard to implementation of Hindi and review the progress made. Several Hindi workshops were conducted. The Parliamentary Committee on Official Languages visited three locations while Corporate Hindi Cell inspected Kochi and Mumbai Refineries and three marketing locations. Rajyabhasha Vibhag of the Ministry of Home Affairs carried out inspections at two locations. All these Committees expressed their appreciation of the efforts taken by the Corporation. The Hindi software “ISM V5 Office” was procured and installed in all offices of BPCL. “Hindi Software Training” programmes are also conducted in the Regional Offices and Refineries. An attractive Incentive Scheme is in vogue to further enhance Official Language implementation. Initiative has been taken to implement an e-library for Hindi books on the Corporate Intralink. CITIZENS’ CHARTER Citizens’ Charter – a tool for ensuring transparency in educating and communicating with the customers about their rights, apart from various infrastructure / services being available for the customers, is always in the forefront of all activities of the Company. Efforts are made to enhance customer service levels. The Grievance Redressal Mechanism was taken care of with well established systems at various consumer contact points. Besides, BPCL has sought to leverage technology by making available a feedback module in its website which the customer can have access to. An Internet based online Grievance Redressal Mechanism (Centralised Public Grievance Redress and Monitoring System) is helping in speedy redressal of grievances. BPCL has
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disposed off 231 grievances online during the year. BPCL has started toll free numbers so that customers can call from anywhere in the country for registration of complaints. The Right to Information Act 2005 has been implemented in BPCL. People across the organization are familiar with the Act and BPCL has a unique single window concept for all replies under the Act. During the period ending 31st March, 2010, BPCL has received 1753 requests for information and only 67 cases were referred to the Chief Information Commissioner, New Delhi for review. No strictures have been passed against BPCL since the inception of the Act in 2005. VIGILANCE Corporate Vigilance in the Company has played a proactive role and initiated implementation of several system improvements and brought about simplification of procedures for achieving the best possible use of resources and for facilitating effective and speedy decision making in a transparent manner. Vigilance Awareness Week was inaugurated by Justice B. Srikrishna and was observed from 3rd to 7th November, 2009 at all locations throughout the country. A Vendor Interaction Programme was organized at Kochi Refinery covering 90 vendors during Vigilance Awareness Week and issues raised were deliberated by the senior management. Such vendor meets have highlighted the company’s commitment to transparency and enabled the company to get feedback on the issues faced by vendors, improving interaction levels as well as contributing to confidence building and generation of greater levels of trust among all stakeholders. Under the aegis of Vigilance, an Integrity Club was started in Kochi Refinery School, which has received an excellent response. More than 114 training workshops/seminars involving 1800 participants were held with the objective of enhancing Vigilance Awareness among the employees/vendors. Workshops on Dealerships / Distributorships were conducted at all regions covering 139 participants. As part of preventive vigilance activities, inspections including surprise inspections were done at 467 Retail Outlets, 161 LPG Distributorships and 167 locations including depots and installations. Based on the outcome of such inspections, preventive/administrative actions and system improvements were initiated. To increase transparency in interface with vendors, contractors, suppliers and service providers, the coverage of tenders hosted on the corporate website has been increased to include tenders of Original Equipment Manufacturers and Proprietary items also. The Integrity Pact has been implemented for all tenders with value in excess of Rupees one crore.
SUBSIDIARY COMPANIES Numaligarh Refinery Limited (NRL) NRL was incorporated in 1993 with an authorized capital of Rs. 1,000 crores. It is a Mini Ratna company (Category I) and has a 3 MMTPA refinery at Numaligarh in Assam. BPCL holds 61.65% of the paid up equity in NRL as on 31st March, 2010. The refinery processed 2.62 MMT of crude oil during the year 2009-10 as compared to 2.25 MMT processed in the previous year. As on 31st March, 2010, the Refinery completed 8 years and 1 month of Lost Time Accident (LTA) free operations (equivalent to 1.40 crores man-hours) since the date of the last LTA. NRL achieved a turnover of Rs.7,874.09 crores for the financial year ending 31st March, 2010 which is lower than the turnover of Rs. 8,853.35 crores in 2008-09. The company’s profit after tax for the year stood at Rs.232.08 crores, as against profit after tax of Rs.235.64 crores in the previous year. The earnings per share (EPS) for the year 2009-10 amounted to Rs. 3.15 as against Rs. 3.20 in 2008-09. The Board of Directors of NRL have maintained the dividend by recommending a payout of Rs. 1.50 per share of Rs. 10 each. NRL had a net worth of Rs.2,450.04 crores and a book value of Rs.33.30 per share as at 31st March, 2010. Bharat PetroResources Limited (BPRL) BPRL was incorporated on 17th October, 2006 as a wholly owned subsidiary company of BPCL, with the objective of implementing BPCL’s plans in the upstream exploration and production sector. The company has an authorized capital of Rs.1,000 crores. As on 31st March, 2010, the subscribed share capital of BPRL was Rs. 702.55 crores. The exploration and production activities of BPRL and its subsidiary companies extend to 26 exploration blocks where they hold participating interests (PI). Of this, 9 blocks are in India and 17 are abroad. Besides India, BPRL has blocks in Australia, Brazil, East Timor, Indonesia, Mozambique and the United Kingdom. BPRL’s total acreage in all these blocks is around 81,000 sq.km, of which approx. 91% is offshore acreage. These blocks are in various stages of exploration. During the year 2009-10, significant level of exploration activities were undertaken, particularly in Brazil and Mozambique. M/s. Anadarko Petroleum Corporation (Anadarko), the Operator of the offshore block in Brazil, has announced that the ‘Wahoo-1’ well in block BM-C-30 in the Campos Basin flowed at a test rate of approx. 7500 barrels per day of crude oil and approx. 4 million ft3 (0.11 million m3) per day of associated natural gas. The ‘Windjammer’ well drilled during the first quarter of 2010 in Rovuma Basin, in the deep water offshore Mozambique, encountered huge quantities of gas in the wildcat well. The drilling of the balance wells in Mozambique is continuing. BPRL had formed a wholly owned subsidiary company, Bharat PetroResources JPDA Limited (BPR-JPDA LTD) through which it holds a participating interest of 20% in
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Block-JPDA 06-103-East Timor in the Joint Petroleum Development Area between Australia and East Timor. Further, BPRL has incorporated a wholly owned subsidiary company, BPRL International BV, Netherlands which in turn, has incorporated three wholly owned subsidiary companies viz. BPRL Ventures BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia BV, for undertaking exploration activities in various countries. BPRL Ventures BV has 50% stake in IBV (Brazil) Petroleo Limitada, which has participating interests ranging from 20% to 40% in 10 blocks in Brazil. BPRL Ventures Mozambique BV has participating interest of 10% in a block in Mozambique, and BPRL Ventures Indonesia BV holds participating interest of 12.50% in a block in Indonesia. BPRL earned income of Rs.0.42 crores for the financial year ending 31st March, 2010 and had a loss of Rs.35.72 crores as compared to an income of Rs.4.87 crores and loss of Rs.13.93 crores for the financial year ending 31st March, 2009. Annual Accounts of the Subsidiary Companies In view of the dispensation granted by the Central Government under Section 212 (8) of the Companies Act, 1956, copies of the Balance Sheet, Profit and Loss Account, Directors’ Report and the Auditors’ Report of the Subsidiary Companies are not attached to the Balance Sheet of the Company. In compliance with the conditions of the dispensation, the Consolidated Financial Statements have been presented in the Annual Report and financial information of the Company’s subsidiaries, as required, is disclosed in the Annual Report as Annexure F to the Directors’ Report for information. The Audited Annual Accounts of the Subsidiary Companies and related detailed information are open for inspection by any Member at BPCL’s Registered Office. Further, BPCL would make available / furnish these documents, on request, to any of its Members and the said documents would also be posted on BPCL’s website. JOINT VENTURE COMPANIES Petronet LNG Limited (PLL) PLL was formed in April, 1998 for importing LNG and setting up LNG terminals with facilities like jetty, storage, regasification etc. to supply natural gas to various industries in the country. The company was incorporated with an authorized share capital of Rs 1,200.00 crores. PLL was promoted by four public sector companies viz. BPCL, Indian Oil Corporation Limited (IOC), Oil & Natural Gas Corporation Limited (ONGC) & GAIL (India) Limited (GAIL). Each of the promoters holds 12.50% of the equity capital of PLL. The balance equity was raised over a period of time with Gaz de France having a 10% equity stake and Asian Development Bank holding 5.20% of the equity. The balance 34.80% is held by the public after the company had made an initial public offering in March, 2004. BPCL’s equity investment in PLL currently stands at Rs.98.75 crores. As at 31st March, 2010, PLL had a net worth of Rs.2,234.86 crores with a book value of Rs. 29.80 per share.
The expansion of the regasification capacity at Dahej from 5 MMPTA to 10 MMTPA was commissioned in July 2009. The capacity is being further expanded to 12.50 MMTPA. The work on the green field terminal at Kochi has already commenced and the terminal is likely to be commissioned by December 2011. PLL recorded a sales turnover of Rs. 10,602.94 crores in the financial year ending as on 31st March, 2010 as compared to Rs.8,428.70 crores recorded in 2008-09. The net profit for the year stood at Rs. 404.50 crores as compared to Rs.518.44 crores achieved in the previous year. Consequently, the EPS has declined from Rs. 6.91 in 2008-09 to Rs. 5.39 in 2009-10. PLL has maintained the dividend of 17.50% for the financial year 2009-10. Indraprastha Gas Limited (IGL) IGL, a Joint Venture Company with GAIL, was set up in December, 1998 with an authorized share capital of Rs. 220 crores for implementing the project for supply of Compressed Natural Gas (CNG) to the household and automobile sectors in Delhi. BPCL invested Rs.31.50 crores in IGL for a 22.50% stake in its equity. IGL has commissioned over 241 CNG Stations which supply the environment friendly fuel to more than 3,50,000 vehicles. IGL has more than 1,70,000 domestic PNG Customers and over 373 commercial customers in Delhi. The company is also extending its business to the towns of Greater Noida and Ghaziabad. IGL registered a turnover of Rs. 1,213.13 crores and a profit after tax of Rs. 215.49 crores for the financial year ending as on 31st March, 2010 as compared to a turnover of Rs.962.14 crores and a profit after tax of Rs.172.47 crores during the previous year. IGL has declared a dividend of Rs. 4.50 per share against a dividend of Rs. 4.00 per share in the previous year. IGL’s net worth was Rs. 825.48 crores with a book value of Rs.58.93 per share as at 31st March, 2010. The shares of the company are listed on the Stock Exchange, Mumbai and National Stock Exchange of India limited. Sabarmati Gas Limited (SGL) SGL, a Joint Venture Company promoted by BPCL and Gujarat State Petroleum Corporation (GSPC) was incorporated on 6th June 2006 with an authorized capital of Rs.100 crores for implementing the City Gas distribution project for supply of CNG to the household and automobile sectors in the city of Gandhinagar, Mehsana and Sabarkantha Districts of Gujarat. Both the promoters have a stake of 25% each in the equity capital of SGL and the balance has been subscribed to by financial institutions. SGL has set up 13 CNG stations. SGL has achieved a turnover of Rs.297.91 crores and profit after tax of Rs. 27.72 crores for the financial year ending 31st March, 2010 against a turnover of Rs.260.45 crores and a Profit after tax of Rs.18.12 crores in the previous year. The company has proposed to maintain dividend on equity shares at the rate of 15% for the financial year ending 31st March, 2010.
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Central UP Gas Limited (CUGL) CUGL is a Joint Venture Company set up in March, 2005 with GAIL as the other partner, for implementing the project for supply of CNG to the household, industrial and automobile sectors in Kanpur and Bareilly in Uttar Pradesh. The company was incorporated with an authorized share capital of Rs. 60 crores. The joint venture partners have each invested Rs.15 crores in the joint venture, with each partner having an equity stake of 25% in the company. The balance equity share capital has been subscribed to by financial institutions including Asian Development Bank (ADB), Infrastructure Development Finance Company Limited (IDFC) and Infrastructure Leasing & Financial Services Limited (IL&FS). CUGL has set up 9 CNG stations. The company has commenced its PNG operations. CUGL has achieved a turnover of Rs. 42.42 crores and profit of Rs. 7.19 crores for the financial year ending 31st March, 2010 as compared to turnover of Rs.35.64 crores and a profit of Rs.7.88 crores in the previous year. The EPS for the year stood at Rs. 1.26 as against Rs. 1.39 in 2008-09. The Board of Directors has recommended the payment of dividend at 3.50%, the same as last year. Maharashtra Natural Gas Limited (MNGL) MNGL was set up on 13th January, 2006 as a Joint Venture Company with GAIL for implementing the project for supply of CNG to the household and automobile sectors in Pune and its nearby areas. The company was incorporated with an authorized share capital of Rs. 100 crores. BPCL and GAIL have invested Rs. 22.50 crores each in MNGL’s equity capital. The Maharashtra Government will hold a 5% stake in the company. MNGL has completed its financial closure by inducting IDFC, ILFS and Axis Bank as shareholders. The Company has set up 13 CNG stations till 31st March, 2010. MNGL has achieved a turnover of Rs. 10.92 crores for the financial year ending 31st March, 2010 and loss of Rs. 1.56 crores for the year as against a turnover of Rs.1.48 crores and a loss of Rs.3.68 crores for the period 7th October, 2008 to 31st March , 2009. Bharat Stars Services Private Limited (BSSPL) BSSPL, a Joint Venture Company promoted by BPCL and ST Airport Pte Limited, Singapore was incorporated on 13th September, 2007 with an authorized capital of Rs.10 crores for providing into plane fuelling services at the new Bengaluru International Airport. The authorized share capital of BSSPL was subsequently enhanced to Rs. 20 crores. The two promoters have each subscribed to 50% of the equity capital of BSSPL and BPCL’s present investment stands at Rs.10 crores. The company, which commenced its operations at the new international airport in Bengaluru from May, 2008, has recently been issued the Letter of Award for implementing into plane fuelling services at the new T3 Terminal at Delhi International Airport. A new company Bharat Stars Services (Delhi) Private Limited is
being formed for undertaking operations in Delhi. The company is also planning to enter Calicut Airport and other nearby airports and intends to set up Fixed Base Operations to augment its revenues. BSSPL has achieved a turnover of Rs.2.90 crores for the financial year ending 31st March, 2010 and profit of Rs.0.64 crores as against a turnover of Rs.1.19 crores and a loss of Rs.0.33 crores in the previous year Bharat Renewable Energy Limited (BREL) BREL was incorporated on 17th June, 2008 for undertaking the production, procurement, cultivation and plantation of horticulture crops such as Karanj, Jatropha and Pongamia, trading, research and development and management of all crops and plantation including Biofuels in the state of Uttar Pradesh, with an authorized capital of Rs.30 crores. The company has been promoted by BPCL with Nandan Biomatrix Limited, Hyderabad and Shapoorji Pallonji Company Limited through their affiliate. Each of the partners will have an equal stake in the equity capital of the joint venture. The project envisages plantation of Jatropha in 1 million acres (404686.3 hectares) of marginal land which has the potential of generating employment / self employment for 1 million people and producing 1 million tonnes of Bio-diesel with an investment of Rs. 2,200 crores over the next 10-15 years. The Government of Uttar Pradesh has approved the project under ‘Jeevan Jyoti,’ a scheme of the Government which has the benefit of release of funds under the Mahatma Gandhi National Rural Employment Guarantee (MGNREG) scheme. BREL has identified 60,438 acres (24,459 hectares) of wasteland for plantation. Efforts are also being made to source saplings of Jatropha under the aegis of Bio Tech Park, Lucknow through approved nurseries and franchisees. Work is on for getting necessary approvals for the identified land and in preparing the land for plantation. BREL has earned miscellaneous income of Rs.0.08 crores for the financial year ending 31st March, 2010 and incurred loss of Rs.1.44 crores as against a miscellaneous income of Rs.0.05 crores and a loss of Rs.0.24 crores in the previous year. Matrix Bharat Marine Services Pte Limited (MBMS) MBMS is a Joint Venture Company incorporated in Singapore on 20th May, 2008 for carrying on the bunkering business and supply of marine lubricants in the Singapore market as well as international bunkering including expanding into Asian and Middle East markets. The company has been promoted by BPCL and Matrix Marine Fuels L.P USA, an affialiate of the Mabanaft group of companies, Hamburg, Germany. The authorised capital of the company is USD 4 million, which is equivalent to about Rs.20 crores. Both the partners have contributed equally to the share capital. Matrix Marine Fuels L.P USA has subsequently transferred their share and interest in the joint venture in favour of Matrix Marine Fuels Pte Limited, Singapore, another affiliate of the Mabanaft group.
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Bharat Petroleum Corporation Limited
The company has begun the ex-pipe bunkering operations in August, 2008. The company will also undertake development of international bunkering facilities at Indian ports, risk management including hedging activities, inventory management, and quality blending and freight optimization by utilizing the back haulage of time charter vessels for importing petroleum products in India. MBMS has achieved a turnover of USD 229.84 million and loss of USD 0.65 million for the financial year ending on 31st December, 2009 as compared to a turnover of USD 67.99 million and loss of USD 0.13 million for the year ending on 31st December, 2008. Petronet India Limited (PIL) BPCL has 16% equity participation with an investment of Rs.16 crores in PIL which was formed as a non-government financial holding company to give impetus to the development of pipeline networks throughout the country. PIL had facilitated pipeline access on a common carrier principle, through joint ventures for the pipelines put up by them viz Vadinar-Kandla, Kochi-Coimbatore-Karur and Mangalore-Hassan-Bangalore. PIL registered income of Rs. 0.41 crores and a net loss of Rs. 0.94 crores for the financial year ending 31st March, 2010 as against income of Rs. 0.52 crores and a net loss of Rs.27.06 crores (including provision for diminution of long term investment) in the previous year. The new pipeline policy announced by the Government of India some time back has affected the future of the company as interested companies are permitted to undertake pipeline projects and PIL does not have any new projects in hand. As such, promoters and other investors in PIL have reached a conclusion that continuation of PIL would not be viable. Accordingly, the winding up process has been initiated and the process of divesting PIL’s 26% equity in the 3 Joint Venture Companies promoted by it is in progress. The Board of Directors of BPCL, in its meeting held in December 2006, accepted PIL’s offer to buy its 26% stake in the equity of Petronet CCK Limited where BPCL already holds 49% of the paid up share capital. This is awaiting receipt of approval of the Government of India. Petronet CCK Limited (PCCKL) BPCL has invested a sum of Rs. 49 crores for a 49% stake in the equity capital of PCCKL, a Joint Venture promoted with PIL with an authorized share capital of Rs.135 crores. The company owns the 292 km long multi-product Kochi-Karur pipeline from BPCL’s installation at Irimpanam to Karur for transportation of MS, HSD and SKO. The pipeline commenced commercial operations from September 2002. The pumping volume during the year 2009-10 amounted to 1.72 MMT as against 1.57 MMT in the previous year. PCCKL registered a turnover of Rs.45.82 crores and net profit of Rs.4.40 crores for the financial year ending 31st March, 2010 as compared to a turnover of
Rs.45.70 crores and loss of Rs.3.25 crores in the previous year. BPCL has initiated steps subject to completion of all formalities to purchase the 26% equity share of PIL in PCCKL. Delhi Aviation Fuel Facility Pvt.Ltd A new Joint Venture Company, Delhi Aviation Fuel Facility Private Limited, has been promoted by BPCL, IOCL and Delhi International Airport Limited (DIAL) for implementing Aviation Fuel Facility for the new T3 Terminal at Delhi International Airport, New Delhi. BPCL and IOCL will subscribe to 37% of the share capital of the joint venture while the balance will be held by DIAL. BPCL’s onsite assets at the Delhi Airport will be transferred to the joint venture. Valuation of the assets is being done to determine the consideration for the transfer. The company has commenced operations from July 2010. CONSERVATION OF ENERGY, TECHNOLOGICAL ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO The details regarding energy conservation, technology absorption and foreign exchange used and earned as required by Section 217(1)(e) of the Companies Act, 1956, are given in Annexure A. MEMORANDUM OF UNDERSTANDING WITH MINISTRY OF PETROLEUM & NATURAL GAS BPCL for the twenty-first successive year has entered into a Memorandum of Understanding (MOU) for the year 2010-11 with the Ministry of Petroleum & Natural Gas. BPCL has been achieving an “Excellent” performance rating since 1990-91. BPCL also has the distinction of winning the Prime Minister’s MOU Award for ‘Excellence in Performance’ for 1998-99, 2000-01, 2002-03 and 2006-07. BPCL was bestowed with the Prime Minister’s MOU Award for ‘Excellence in Performance’ for 2006-07 in October 2009. PARTICULARS 217(2A) OF EMPLOYEES UNDER SECTION
Information required under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, is enclosed as Annexure C. CORPORATE GOVERNANCE As required under Clause 49 of the Listing Agreement and Department of Public Enterprises (DPE) Guidelines, the Report on Corporate Governance, together with the Auditors’ Certificate on compliance of Corporate Governance, is annexed as Annexure B. The Report also indicates the extent of BPCL’s compliance of the Corporate Governance Voluntary Guidelines, 2009. The forward looking statements made in the ‘Management Discussion and Analysis’ are based on certain assumptions and expectations of future events. The Directors cannot guarantee that these assumptions are accurate or these expectations will materialize.
Annual Report 2009-2010
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DIRECTORS’ RESPONSIBILITY STATEMENT Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors of BPCL confirm that: 1. In the preparation of the Annual Accounts, all the applicable Accounting Standards have been followed along with proper explanation relating to material departures. 2. The Company has selected such Accounting Policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the State of Affairs of the Company as on 31st March 2010 and of the Profit and Loss Account of the Company for the year ended on that date. 3. The Company has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. 4. These Accounts have been prepared on a going concern basis. DIRECTORS Prof. A.H. Kalro resigned from the Board with effect from 28th January, 2010. The Directors have placed on record their appreciation of the valuable contributions made and guidance given by him for the development and progress of the Company’s business. Shri I.P .S. Anand and Shri Haresh M. Jagtiani were appointed as Additional Directors with effect from 28th January, 2010. Being Additional Directors, they hold office up to the date of the Annual General Meeting. The Company has received notices under Section 257 of the Companies Act, 1956 from Members proposing their name for appointment as Directors at the ensuing Annual General Meeting. Shri T. Balakrishnan, Additional Chief Secretary, (I&C), Government of Kerala resigned from the Board w.e.f 29.6.2010 and the Directors have placed on record their appreciation of the valuable contributions made and guidance given by him for the development and progress of the Company’s business. Shri Alkesh Kumar Sharma, Secretary (IP), Government of Kerala was appointed as Additional Director on the Board w.e.f 30.6.2010. Being Additional Director, he holds office up to the date of the Annual General Meeting. The Company has received notice under Section 257 of the Companies Act, 1956 from a Member proposing his name for appointment as Director at the ensuing Annual General Meeting. Smt. Rama Bijapurkar has tendered her resignation from the Board on 30.6.2010. The Directors have placed on record their appreciation of the valuable contributions made and guidance given by her for the development and progress of the Company’s business.
Prof. N. Venkiteswaran was reappointed on the Board w.e.f 16.7.2010. The Company has received notice under Section 257 of the Companies Act, 1956 from a Member proposing his name for appointment as Director at the ensuing Annual General Meeting. Shri Ashok Sinha, Chairman & Managing Director has communicated to the Ministry of Petroleum & Natural Gas that he would be demitting office on the completion of his term of 5 years on 18th August, 2010. Shri S.K. Joshi and Shri R.K. Singh, Directors, will retire by rotation at the ensuing Annual General Meeting as per the provisions of Section 256 of the Companies Act, 1956, and being eligible, offer themselves for re-appointment as Directors at the said Meeting. As required under the Corporate Governance Code, brief bio-data of the above Directors who are appointed / reappointed at the Annual General Meeting are provided in the Corporate Governance Report. STATUTORY AUDITORS M/s.B.K. Khare & Co., Chartered Accountants, Mumbai and K. Varghese & Co., Chartered Accountants, Kochi, were appointed as Statutory Auditors for the year 2009-10, by the Comptroller & Auditor General of India (C&AG), under the provisions of Section 619 (2) of the Companies Act, 1956. They will hold office till the ensuing Annual General Meeting. The said firms have also been appointed as the Statutory Auditors for the financial year 2010-11 by the C&AG. ACKNOWLEDGEMENTS The Directors wish to place on record their warm appreciation of the dedication and untiring efforts put in by BPCL’s employees, without which the company would not have been able to achieve its goals and targets. The Directors appreciate the support and patronage of BPCL’s valued customers and are confident that the bond will strengthen further in the coming days. The Directors acknowledge the assistance, guidance and support received from the various Ministries of the Government of India, particularly from the Ministry of Petroleum & Natural Gas, which has been of immense help in enabling BPCL to function efficiently. The Directors thank BPCL’s dealers, distributors, contractors and suppliers for their unstinting support and cooperation. The Directors also convey their sincere thanks to each and every shareowner of BPCL for their continued support. For and on behalf of the Board of Directors Sd/Mumbai Date:10th August, 2010 Ashok Sinha Chairman & Managing Director
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Bharat Petroleum Corporation Limited
Annual Report 2009-2010
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Management Discussion & Analysis Report
ECONOMIC DEVELOPMENTS After the global economic meltdown, the year 2009-10 saw signs of recovery, especially in countries like India and China. During the year, nations and corporations across the world were focused on trying to adjust and come to terms with the new business paradigm. There is a growing realisation that with economies being so interdependent, potential shocks are truly global, although the degree of impact may vary depending on the local conditions. The economic disruptions of the previous year continued to impact countries for a major part of the financial year. As economies were shrinking consequent to the slowdown, there was a sharp decline in the global demand for oil. The Indian economy was one of the few bright spots with Gross Domestic Product (GDP) estimated to have grown at 7.4% during the year with the fourth quarter of the year seeing a growth of 8.6%. As industrial production across the biggest economies declined, the volume of global trade saw a substantial reduction. Towards the end of the financial year, there were signs of new crisis cropping up in the European Union, with countries like Greece, Portugal and Spain facing problems caused by the high levels of borrowings. Even as rating agencies were downgrading bonds of several countries, Governments initiated measures to contain the ensuing damage. The year was witness to a sharp fall in the global refining margins. At the same time, the crude oil prices recovered considerably as compared to the previous year. While the initial months of the year saw oil prices rise to around USD 70 per barrel, the subsequent period saw prices being range bound before closing at around USD 80 per barrel in March 2010. Given the concerns around growth in demand for oil and the comfortable supply position, there was no sharp rise in crude oil prices. The economic crisis in Europe has had some impact on the international oil prices, which declined to some extent in May 2010 before starting to creep up once again. The Indian economy continued to show resilience and grow notwithstanding the general adverse conditions. At the same time, it could not achieve growth rates in excess of 9% which had been achieved consistently before the slowdown set in. Although the stock markets recovered, risk aversion amongst investors was evident, which was reflected in the Bharat Petroleum Corporation Limited
tepid response, particularly from the retail segment to the Initial Public Offerings (IPO) and Follow up Offerings of Indian companies. Even the offerings by the public sector undertakings, as part of the divestment plans of the Government, did not generate the enthusiasm levels seen before the economic crisis. However, the Foreign Institutional Investors continued to be optimistic of the India growth story. The Indian rupee appreciated during the year which had an impact on the export sector as well as on major imports like crude oil. Agriculture, which remains a major segment of the Indian economy, was affected by the lack of sufficient rains in many parts of the country. Despite this, the sector recorded a marginal growth in 2009-10. Inflationary pressures started impacting the economy. The rise in the price indices remains a cause for concern and there are expectations of the Reserve Bank of India (RBI) hiking key interest rates as it tries to rein in inflation. The RBI has also commenced the process of gradually withdrawing measures that it had introduced in its efforts to help industry tackle the economic downturn. TRENDS IN THE OIL & GAS SECTOR During 2008-09, oil prices had reached record levels before retreating sharply. The fall in global demand consequent to the economic downturn contributed to the fall in the prices. The International Energy Agency had in April 2010 estimated the global demand for oil in calendar year 2009 to be of the order of 84.9 Million Barrels per day (MBPD) representing a decline of 1.3 MBPD over the previous year. This decline could be attributed to the fall in demand in Organisation for Economic Co-operation & Development (OECD) countries. The Organisation of Petroleum Exporting Countries (OPEC) had in response to these developments, put in place production cuts and had tried to ensure high levels of compliance. As a result, oil prices started recovering although they did not go back to the record levels reached in 2008-09. The benchmark Brent crude touched a high of USD 80.5 per barrel and a low of USD 46.5 per barrel during 2009-10. Demand for crude oil and prices thereof were helped by strong demand from countries like China. Oil prices continued to remain above USD 80 per barrel before declining to some extent on account of the crisis in Europe. Oil prices are expected to be influenced by the pace of the economic recovery in the developed countries. Even though there was a sharp fall in the demand for oil as compared to the previous year on account of the decline in demand in Europe and North America, strong demand in countries like China and India ensured that the overall fall was contained. As per the Oil Market Report issued by the International Energy Agency in July 2010, the world oil demand in 2010 is expected to be around 86.50 MBPD,
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which could increase to 87.8 MBPD in 2011. This increase in demand is expected to be driven by the sustained growth in demand from non-OECD countries. The year 2008-09 had seen a compression in the light-heavy crude and product differentials with the Brent-Dubai differential down to USD 1.6 per barrel. The trend continued in 2009-10 and the average differential for the year was negligible. The decline in the differentials can be attributed to reduction in the production of heavy crude oil. Although the differential between Brent and Dubai crude reappeared in April 2010, the position has changed significantly in May 2010 when the differential became negative. At present, there is modest differential between light and heavy crude and this is expected to continue during the remaining period of 2010-11. Even as demand for crude oil shows signs of improving, OPEC countries which had cut back production to arrest the slide of prices can be expected to increase output gradually to meet the rising demand. At the same time, prices are not expected to move downwards significantly. However, the uncertainties plaguing the global economy could have an impact on the crude oil prices, as was seen recently when crude oil prices declined in response to the Greek debt crisis. As in the case of crude oil, the average prices of key petroleum products in 2009-10 were lower than the prices in 2008-09. This has brought some respite to countries which are dependent on imports for meeting their requirements of petroleum products. Demand for gasoline in key markets like United States of America has remained flat on account of high unemployment rate and changes in consumer spending habits. Demand is expected to grow once the global economy recovers fully. Demand for diesel also fell significantly in 2009 on account of the economic slowdown. This was offset to some extent by higher demand for heating during the winter. As the global economies recover, demand for diesel should increase significantly. The aviation sector was one of the worst hit in the economic downturn and consequently, demand for ATF has suffered. Demand for ATF is also expected to increase in line with the overall economic recovery. INDIAN PETROLEUM SECTOR The year 2008-09 saw the GDP grow at around 6.7% over the previous year. This was in contrast to the previous few years when the growth was sustained at above 9% levels. Although the Indian economy was amongst the few in the world to remain on the growth path, the GDP grew only at 7.4% in 2009-10. With the monsoon being deficient in large parts of the country, agriculture was impacted and lack of growth in this sector affected the overall growth rate. However, the Industry has shown strong signs of rebound while the services sector is slowly recovering. As
per the provisional figures released by the Petroleum Planning & Analysis Cell in the Ministry of Petroleum & Natural Gas, consumption of petroleum products in the country in 2009-10 was of the order of 138.2 MMT, which represented an increase of 3.44% over the previous year when the demand stood at 133.60 MMT. The growth rate was in line with the rate of increase in consumption in 2008-09. Even as demand for transportation fuels like MS and HSD has grown over the previous year, the two products reflect different growth trends. While demand for MS has grown by 14% as compared to 9% in 2008-09, the growth in Diesel demand at 9% is around the same level as in the previous year. The demand for LPG has increased by around 6.3%. The previous year had seen demand for ATF fall on account of the slowdown in the Aviation sector. This trend was reversed in the current year with demand for ATF increasing by 4.6%. However, the consumption of Naphtha has declined significantly during the year. The growth in Bitumen consumption has been sustained and there has been an increase in demand for Lubricants reflecting the improvement in industrial activity. During the year under review, the cost of the Indian basket of crude oil averaged around USD 70 per barrel as compared to an average cost of USD 85.3 in the previous year. The reduction in the cost of the Indian basket of crude oil was a welcome relief to the oil marketing companies who have had to bear the burden of underrecoveries on account of selling MS, HSD, SKO and domestic LPG at prices which were below the cost. Although the average price of the Indian basket of crude oil was lower, there was a sharp rise in the quantum of crude oil imports. As compared to the imports of 128.16 MMT of crude oil in 2008-09, the quantum of crude oil imported in 2009-10 stood at 159.26 MMT. However, the foreign exchange outgo on crude oil imports in 2009-10 at USD 80 billion did not differ significantly from the level of USD 77 billion in 2008-09. This can be attributed to the lower level of crude oil prices as compared to the earlier year and also on account of the appreciation of the rupee against the dollar. The international prices had shown signs of firming with average prices during the period April 2010 to July 2010 being higher than the average price in 2009-10. However, with concerns centred on the economies in Europe, a sustained rise in prices is not expected in the near future. While the increase in the country’s refining capacity has meant rising volumes of crude oil imports, it has also led to a reduction in the import of petroleum products. The quantum of product imports declined to 14.66 MMT in 2009-10 from a level of 18.29 MMT in the previous year. Consequently, there has been a significant reduction in the Annual Report 2009-2010
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foreign exchange outgo on product imports from USD 13.5 billion to around USD 7 billion in the current year. At the same time, India’s exports of finished products have increased from 37 MMT in 2008-09 to touch a level of 51 MMT in the current year. However, the total exports realisation in foreign exchange of USD 31 billion was not significantly higher than the amount of USD 27 billion realised in 2008-09, mainly on account of the lower prices in the international market. The volatile crude oil prices in 2008-09 had imposed an enormous strain on the finances of the public sector oil marketing companies. Although the volatility reduced during the year, the marketing companies continued to suffer from significant amounts of under-recoveries, which was impacting their liquidity position and leading to increased levels of borrowings. The Government of India therefore allowed prices of petrol and diesel to be hiked by Rs. 4 per litre and Rs. 2 per litre respectively in July 2009. In the Union Budget presented to Parliament in February 2010, the central excise duty and customs duty in respect of petrol and diesel were increased and this impact was passed on to consumers. Apart from this, there were no revisions in the prices of the four sensitive petroleum products during the year. The under-recoveries on the sale of petrol and diesel were compensated by the upstream oil companies by way of discount on the crude oil purchased by the refining companies. In the previous years, the Government had issued bonds to the oil marketing companies to compensate for the losses suffered on sale of SKO and domestic LPG. During the current year, there was a change in the mechanism adopted by the Government, when it decided to provide cash instead of bonds as compensation against the underrecoveries on the sale of SKO and domestic LPG. Although this will help in improving the financial situation of the downstream oil marketing companies, the reimbursement from the Government was only partial and BPCL had to absorb an amount of around Rs. 1200 crores. In February 2010, the Expert Group on ‘A Viable and Sustainable System of Pricing of Petroleum Products,’ headed by Mr. Kirit Parikh, submitted its report to the Government of India. The report recommends the permitting of free market pricing for petrol and diesel and the raising of the administered prices for domestic LPG and kerosene. The Government had constituted an Empowered Group of Ministers (EGM) headed by the Union Finance Minister to decide on the recommendations of the expert group. The EGM at its meeting held on June 25, 2010 took the decision to immediately free petrol from pricing controls. The EGM also decided that decontrol would also be extended to diesel pricing in due course of time. Consequently, retail selling price of petrol has been increased by Rs. 3.50 per litre. In the case of diesel, retail
selling price has been increased initially by Rs. 2 per litre. The EGM also decided to increase the retail selling price of a 14.2 kg domestic LPG cylinder by Rs. 35 and that of kerosene by Rs. 3 per litre. These decisions will bring significant relief to the public sector oil marketing companies by reducing the quantum of under-recoveries besides improving their cash flows. Further, the decision on decontrol of prices of petrol and diesel will impact demand and will lead to enhanced competition from private sector oil companies. India’s domestic production of finished products is considerably higher than the domestic demand. The domestic crude oil processing in 2009-10 stood at 186.6 MMT as compared to 157.1 MMT in the previous year. With additional capacities expected to come on stream in the coming days, India will continue to remain long on refining capacity. With the expected entry of the major private players following the decontrol of pricing of petrol and diesel, public sector oil marketing companies will face serious competition. At the same time, the global economic scene continues to remain an area of concern. Any crisis that may erupt on account of past excesses would have a major impact on commodity prices and demand. The coming days therefore, are likely to be challenging while offering immense opportunities for growth. OPPORTUNITIES AND THREATS India’s GDP is expected to grow at a healthy rate in the coming years. As energy demand grows, oil and gas companies will have a major role to play in meeting the rising demand. At the same time, enormous challenges lie ahead. As the country is largely dependent on imported crude oil, the price volatility will be a major concern. The decontrol of pricing of auto fuels will significantly enhance the level of competition as a consequence of private oil companies resuming their marketing operations. At the same time, if the under-recoveries continue on products like SKO and LPG, the public sector marketing companies could face constraints on the liquidity front. The product specifications for MS and HSD have become more stringent with effect from April 1, 2010, and a road map has been laid down for these specifications to become effective across the country. Oil companies have to ensure adequate supplies of products meeting the specifications. Although refineries have geared up to meet the new requirements, there are logistic challenges involved in handling and moving products of different specifications. The refineries in Mumbai and Kochi are in a position to make available the products and the commissioning of the refinery at Bina will further strengthen BPCL position in this regard. ’s The capacity of the Kochi refinery has been expanded and the new grass roots refinery at Bina is slated for
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Bharat Petroleum Corporation Limited
commissioning during the year 2010-11. The BPCL group including Numaligarh Refinery Limited will have a combined refining capacity of 30.5 MMTPA. The geographical distribution of the refineries will enable BPCL to have access to its own source of supply in markets across the country. The new grass roots refinery at Bina in Madhya Pradesh, which is being set up by Bharat Oman Refineries Limited (BORL), a joint venture company promoted by BPCL, will be commissioned in 2010-11. Although the company has not been able to go ahead with its proposed Initial Public Offering of shares, the joint venture partner, Oman Oil Company (OOC) made fresh investments by subscribing to further shares of BORL at a premium. With BPCL having already made available sufficient funds, the progress of the project was maintained. Unlike the previous year, refining margins during the year were under pressure. However, things are expected to improve in the coming days. The narrowing of the spread between heavy and light crude has to an extent negated the benefit arising out of the ability to process heavier crude oils and achieve better margins. The retail fuels market continues to offer immense potential for growth and profitability. With the economy doing well, the higher levels of disposable incomes and enhanced aspirations of people have led to automobile companies recording significant sales growth. This in turn, offers opportunities for oil marketing companies to grow in terms of volume. With the Government having decided to decontrol prices of these fuels, public sector oil marketing companies would no longer have to bear the burden of the under-recoveries which had been impacting their operations in the last few years. At the same time, the degree of competition is expected to go up with the major private players coming back into the market. The overall demand is also likely to be affected based on the movements in the prices. There will also be challenges in terms of ensuring site security of the outlets. BPCL remains confident of facing these challenges and growing in the market. The LPG business continues to be impacted by the burden of under-recoveries on the sale of domestic LPG. Although the decision of the Government of India to provide cash in lieu of the under-recoveries in 2009-10 was welcome, the fact remains that a part of the burden had to be borne by BPCL, as the entire quantum of under- recoveries was not reimbursed. Further, there is no clarity on the mechanism that will be adopted during the year 2010-11 and at current levels, the marketing companies continue to sell domestic LPG at prices which are lower than the costs. With the recent increase in the price of a domestic LPG cylinder, the burden of under-recoveries will be mitigated to some
extent. The Government of India has ambitious plans of giving a big push for making available LPG in rural areas. This will offer significant potential to the oil companies for enhancing their sales volumes. BPCL also continues to strive for maximising value through increased sales of commercial LPG where prices are decontrolled. The Industrial & Commercial business continues to operate in a highly competitive environment. With the increased availability of gas in the country, the sales of products like Furnace Oil, Naphtha and LSHS have been impacted. The business has focused on increasing the sale of Bitumen, particularly in markets with good potential and high margin special products like MTO, SBP and Hexane. The business has also carried forward its plans of entering the international bunkering market with the commencement of bunkering sales at Mumbai Port. The first exclusive International Bunkering Terminal of BPCL was inaugurated in JNPT Port in May 2010. The launch of similar facilities in Cochin Port in July 2010 will further boost this initiative. This will remain an extremely challenging business in the days to come and the overall economic and industrial growth will hold the key for the growth of the business. BPCL was one of the first entrants in the emerging gas business. With the increased domestic availability, the gas business was hived off from Industrial and Commercial and a separate SBU was created. This will help bring the required focus and enable BPCL to move forward with its plans. Having access to the distribution infrastructure is critical in the gas business. BPCL is looking at joining hands with other companies for submitting bids for new pipelines to be put up in different parts of the country. The Lubricants sector has seen an uptrend in line with the overall economic recovery. Although there are a large number of players in the market, the business expects to hold its own in the days to come by leveraging its strengths in terms of availability of base oil, tie-ups with some of the leading automotive companies and focusing on Research & Development to offer better products to customers. The Indian aviation scene is characterised by domestic airlines having serious cash flow problems which are posing major challenges to the oil marketing companies. Consequently, the oil companies are grappling with the issue of high levels of outstanding dues from their airline customers. At the same time there is intense competition for retaining and acquiring customers. BPCL was successful in sustaining its sales volumes by retaining most of its existing customers and acquiring new customers, especially foreign airlines from other companies. BPCL’s wholly owned subsidiary company, Bharat PetroResources Limited has taken rapid strides in the field of exploration & production. As on date, it has got Annual Report 2009-2010
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participating interests in 26 blocks spread across different countries including India. Discoveries have already been announced in two blocks in Brazil and Mozambique. These hold immense promise. At the same time, the business will involve considerable investments during the exploration and development phases. BPCL remains confident that its efforts will bear fruit in the coming years. The business environment remains very challenging. At the same time, the growing economy offers immense potential for oil companies. The Government’s move to decontrol prices of MS and HSD will benefit oil companies by helping them to implement their capital expenditure plans and rein in their interest costs. Although competition will increase, companies like BPCL, with their traditional strengths in the market are expected to keep growing. Also, the mechanisms put in place during the period of economic slowdown will stand the company in good stead. BPCL is therefore confident of not only facing the competition, but also remaining on the fast track for growth. PERFORMANCE The performance of the various Strategic Business Units (SBUs) and Entities is discussed in detail in the following paras. REFINERIES BPCL achieved a combined refining throughput of 20.41 MMT in 2009-10 as compared to 19.95 MMT in the previous year. During the year, the refining capacity at Kochi refinery was increased from 7.5 MMTPA to 9.5 MMTPA. At Mumbai Refinery, facilities for upgrading the quality of MS and HSD were put up and the refinery commenced production of the Euro IV grades well in time to meet the requirements under the Government’s auto fuel policy. Despite the major shutdown of key units for revamp and turnaround activities, both refineries managed to achieve capacity utilisation in excess of 100%. The Mumbai refinery recorded its highest ever production of C3, LPG, ATF, Lube Oil Base Stock and 380 cst Fuel Oil. Kochi refinery achieved its highest ever production of ATF and packed Bitumen during the year. The gross refining margin (GRM) during the year for Mumbai refinery was USD 1.78 per barrel as compared to USD 4.48 per barrel in 2008-09 while for Kochi refinery, the GRM for the year was USD 4.87 per barrel as against USD 6.27 per barrel in 2008-09. The reduction in GRM in the two refineries can be attributed to the unfavourable crack spreads during the year, as reflected in the fall of the Singapore Dubai cracking margin from USD 5.8 per barrel in 2008-09 to USD 3.5 per barrel in 2009-10. During the year, several measures were taken to achieve better refining margins. Substitution of Naphtha as feed
and fuel by Regasified LNG (RLNG), recovery of hydrogen from CRU offgas and production of light lube fractions were some of the improvement measures undertaken in the Mumbai refinery. Similarly, the implementation of Integrated Refinery Business Improvement Program (IRBIP) proposals at Kochi refinery was completed during the year, with a net benefit from implementation of 17 proposals of approximately USD 17.95 million which translated to a benefit of 32.05 cents per barrel. Kochi refinery has also implemented a state-of-the-art integrated Manufacturing Execution System consisting of software solutions for Planning, Scheduling, Blending, Production management and Laboratory Information management which is helping to streamline the processes and improve decision making. The refineries have brought about significant improvements in their day-to-day operations through quality circles and six sigma clubs. The quality circles which span almost all major functional areas were exposed to industry best practices through training programmes, industry visits and competitions. Mumbai Refinery’s Quality Control Team won the “Par Excellence Award” – the highest category award – in the National Convention of Quality Circle Forum of India (QCFI) held at Bangalore in December 2009. Three Circles (Power & Utility / Manufacturing / Maintenance) won the Excellence Award at the same convention. The refinery quality assurance systems strived to achieve highest quality standards through meeting the requirements/ standards of reputed external certifying agencies and accreditation bodies like National Accreditation Board for Testing and Calibration (NABL), Directorate General of Civil Aviation (DGCA), Directorate General of Aeronautical Quality Assurance (DGAQA), Centre for Military Airworthiness and Certification (CEMILAC), International Organisation for Standardization (ISO) etc. The refinery laboratories continued to perform very well in the international laboratory proficiency testing scheme run by Shell Global with more than 90% rating. BPCL Mumbai Refinery won the Indian Merchants Chamber – Ramakrishna Bajaj National Quality Award (RBNQA) – 2009, the highest recognition in the manufacturing category, for the third consecutive year. RBNQA is one of the most prestigious quality and business excellence awards modelled on the world famous Malcolm Baldrige National Quality Award in the United States of America. High safety standards were maintained during the year at the refineries leading to good all round safety performance. The Occupational Health and Safety System at both the refineries are certified to OHSAS 18001:2007 standards. Kochi refinery continued its stellar performance in safety management this year too and reached the milestone of
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17 million man-hours without any lost time accident. Mumbai refinery reached the 4 million man-hours mark and achieved a 32% reduction in total number of first aid and minor injuries as compared to the previous year. In order to enhance the mechanical integrity and reliability of static equipment, both refineries have completed implementation of Phase I of the Asset Integrity Management System (AIMS) involving systematic scheduling & monitoring of inspection activities, improved analysis of inspection data, generation of equipment health records etc. through a state-of-the-art software solution. The refineries have now embarked on Phase II of the project consisting of Risk Based Inspection (RBI), an initiative to prioritise plant inspection based on the associated risks (probability and consequence of failure) and schedule maintenance activities accordingly. On the environmental conservation front, the replacement of liquid fuels with RLNG in Mumbai refinery has contributed to the reduction of CO2 and SO2 emission from the refinery. The refinery also achieved recycling of around 1200 MT/ day of effluent water to the Cooling Water System, thus saving equivalent quantity of precious fresh water. More than 7000 M3 of sludge, generated mostly from crude oil tank bottom cleaning, was treated successfully at the refineries using efficient techniques including BLABO technology recovering valuable oil before residual treatment. New rainwater harvesting facilities were commissioned at Mumbai refinery with catchment potential of 15000 M3 of water. A Biogas plant based on technology developed by Bhabha Atomic Research Centre, with a capacity to treat 1000 Kg/day canteen waste was installed at Kochi Refinery. In tune with BPCL’s philosophy of harnessing the human resource potential, various learning and development initiatives were organized at the refineries. These included functional programmes, strategy workshops, people management skills and on-the-job training. More than 4000 employees benefited through such training programmes during the year. A series of leadership skill development workshops were also conducted for the officers. In addition to in-house programmes, staff were also sent for training programmes organized by premier institutions in India to keep them abreast of the global trends as well as to provide them with the opportunity of collaborative learning with senior executives of other organizations. Social welfare and development has been at the core of BPCL’s corporate social responsibility philosophy. The company’s efforts have been to bring about qualitative changes in the lives of the surrounding community through well planned & coordinated social welfare initiatives. During the year, BPCL initiated a number of major community programmes such as rejuvenation of
Thannerchal fresh water lake at Irimpanam, housing scheme for the poor in the neighbouring Panchayats at Kochi, vocational guidance courses and medical services at Mahul and Karjat villages near Mumbai. In its continuous endeavour to ensure quality education, programmes such as donation of scholarships and utilities for poor students, extending capability exploration and enhancement programmes for talented poor children and setting up of one-teacher schools in remote tribal settlements of Kerala were undertaken. Child guidance clinics providing counselling on scholastic problems, behavioural patterns and coping with stress for students on a one-to-one basis and in groups were arranged regularly at schools near Mumbai Refinery. For enhancing community safety and security, traffic signal systems at the busy junction of Vyttila, Kochi were renovated, a training scheme for State Fire & Rescue Service in handling hazardous chemicals was started and a quick reaction armed vehicle to counter terrorism was donated. BPCL has also joined hands with Cochin Heritage Zone Conservation Society under the District Administration in its effort to conserving the heritage sites at Kochi. RETAIL The Retail segment of the oil market in India saw sales volume grow by 9.3% in 2009-10. The sales volume of only the public sector marketing companies grew by 7.8% over the year 2008-09. The year 2009-10 saw the resumption of retail operations by the private oil marketing companies, who had scaled down operations in the previous year, owing to their inability to absorb the high level of under-recoveries on the sale of MS and HSD. BPCL ended the year with a retail sales volume of 17.21 MMT as compared to 16.16 MMT in the year 2008-09. BPCL’s sales volume of MS in 2009-10 stood at 3.56 MMT as compared to 3.22 MMT in the previous year reflecting a growth of 10.69%. Although the total volume of MS has increased, the trend of decline in the sales of branded fuel continued with sales of ‘Speed’ going down by 42% over the previous year. The sale of ‘Speed’ in 2009-10 was 355.7 TMT as against 610.5 TMT in the previous year. The continuing decline in the sales volumes of branded fuel can be attributed to the difference in the basis of taxation as compared to unbranded petrol, leading to very high price differentials. BPCL ended the year 2009-10 with a sales volume of 11.92 MMT of HSD reflecting a growth of 6% over the volume of 11.24 MMT recorded in 2008-09. As in the case of MS, there was a sharp decline in the sales of branded HSD ‘Hi Speed Diesel’ with sales declining from 782.37 TMT in 2008-09 to 274.07 TMT in the current year. Annual Report 2009-2010
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BPCL commissioned 304 new retail outlets during the year. The public sector oil companies together commissioned 1557 outlets as compared to 116 outlets commissioned by the private players. The emphasis on site quality in the urban markets and strategic expansion on highways paid off handsomely. In the Highway sector, the throughput per outlet for One Stop Truck Stop (OSTS) outlets has reached 811 KL per month showing a growth of 14.7% and that of Highway Star outlets has reached 400 KL per month. The qualitative aspect of the retail network continued to make it stand apart from other industry members with overall throughput per RO for BPCL at 214 KL, which is 21% higher than other industry members. Throughput of OSTS was less during 2009-10 as compared to 2008-09, due to commissioning of new OSTS and supply related issues during the first half of the year. BPCL has ambitious plans of commissioning over 800 new outlets in 2010- 11. The sales volumes of CNG and Auto LPG increased as compared to the previous year. During the year 2009-10, CNG sales volume stood at 177.02 TMT, representing a growth of 16.63% over the volume of 151.78 TMT achieved in the previous year. Similarly, the sales of Auto LPG showed a marginal increase from 53.72 TMT in 2008-09 to 57.78 TMT in the current year. During the year, 21 CNG stations and 6 Auto LPG stations were added to BPCL’s network. The emphasis during the year was on enhancing customer enablement through a Customer Acquisition Programme using business models for MS and HSD. It aimed at acquiring customers outside the outlet, revival of dormant customers and enrolling more customers to SmartFleet and Petro Cards. Sales campaigns were organized to build relationships with the dealers and customers. Special attention was paid to outlets which had been lagging behind and registering negative sales growth. These measures have contributed significantly to increasing sales volumes. The throughput handled by Logistics during 2009-10 was 44.17 Million KL, an increase of 15.6% over the throughput of 38.2 Million KL during 2008-09. The thrust during the year was on achieving better Inventory control and this led to a reduction in the working capital to the tune of over Rs. 900 crores. The Vehicle Tracking System now covers the entire fleet of 6000 tank lorries used for delivering MS and HSD to the retail outlets. The volume of rail movements crossed 39.5 MMT during 2009-10 which is the highest achieved in a single year. Efficient operations resulted in the reduction in operating costs and operating losses. The “Pure for Sure” (PFS) network was further expanded and a total of 7091 retail outlets are now certified under the PFS banner. Over 84% of the retail outlet network now consistently delivers superior value to the customers.
On the Retail Automation front, the total number of outlets covered under automation has reached 2266, which is the highest in the oil industry. BPCL has launched the Financial Inclusion program for the Small Distance Commercial Vehicle (SDCV) customers on 13th July, 2010 in the presence of the Honourable Finance Minister, Mr. Pranab Mukherjee. BPCL has joined hands with Corporation Bank and UTI Asset Management Company in this initiative. The programme seeks to help BPCL’s dealers to build a strong relationship with the customers, many of whom have a great need for financial inclusion. BPCL’s select Retail Outlet dealers will work as Business Correspondents of Corporation Bank to facilitate branchless banking to the trucking customers through biometric smart card based technology. The customers will be offered a basic savings account involving small cash deposits and withdrawals, recurring deposit, micro credit, micro pension, micro insurance and health insurance. Micro credit to eligible customers will be given at normal banking rates. BPCL is the first and the only oil company in India so far to offer Financial Inclusion services through its Retail Outlets in Mangalore and Patna territories, where pilots were launched. The PetroBonus Program was the first of its kind to be introduced in India with the launch of Petro Card. The 10th anniversary of the launch was celebrated on 29th September, 2009. During the year, the “Petro Card” base grew by 62,575 customers to reach 1.02 million and the SmartFleet base grew to 1.14 million with the enrolment of 98,640 vehicles during the year. Keeping pace with the increasing penetration of credit and debit cards in various consumer segments, the business entered into strategic payment facilitating alliances with HDFC Bank for increased customer convenience and to drive their respective customer bases to BPCL outlets. This has grown into a 2.16 million strong membership base clocking about 1 lakh transactions every day at BPCL outlets across the country. BPCL’s customer loyalty programmes continued to scale new heights by achieving sales of over Rs.10,000 crores reflecting a growth of 19.5% in volume terms. The customer acquisition strategy adopted and the focus on getting new telecom customers has contributed significantly in achieving these numbers. During the year, the Allied Retail Business grew by 18% with a turnover of Rs. 359 crores making it not only the largest non-fuel revenue generator in the oil industry, but also one of the leading retail networks in the country offering a basket of services ranging from C-stores and Quick Service Restaurants, to financial and travel related services. The network of 235 In & Out stores is by far the largest organized convenience retailing proposition in the country and recorded a sales turnover of Rs.146 crores. As part of the alliance management strategy, 332 ATMs
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from multiple banks are currently operating at BPCL outlets. The alliance initiative with Western Union Money Transfer continues to do well. A pilot project for selling Motor Vehicle Insurance policies through the retail network has been initiated. The In & Out e-Traveller - the e-ticketing/ e-booking facility for rail, air and hotel accommodation is presently available at 190 outlets. INDUSTRIAL AND COMMERCIAL Even as the economic revival commenced, the year 2009-10 saw the Industrial & Commercial (I&C) business face numerous challenges like increasing trend of crude oil and product prices, large scale import of products by traders and end users, aggressive selling of products by private marketing companies and improved availability of gas. After the creation of a new business unit to handle Gas, I&C business achieved a volume of 5.6 MMT in 2009-10. The increased availability of gas in the country and priority allocation to the power and fertilizer sectors has affected the sale of liquid fuels like Naphtha and LSHS, which has seen a marked reduction of around 21% and 24% respectively in volume terms during 2009-10. The business continued its focus on Bitumen marketing in deficit markets, which resulted in BPCL achieving the highest growth in packed Bitumen sales of 4.76% even as the public sector oil companies saw a decline of 9.3%. BPCL also recorded the highest growth in the sale of products like SBP and MTO. The business has entered the international bunkering segment with the commencement of the 380 cst fuel oil bunkering sales at Mumbai Port during the year. With the inauguration of bunkering facilities at the JNPT port in May 2010 and the commissioning of similar facilities in Kochi in July 2010, the bunkering initiative is poised to grow in the coming years. Efforts were continued to achieve speedy collection of customer dues to ensure better cash flow management. The collections from customers through channels like Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) reached a level of Rs.12,000 crores during the year 2009-10. At present, over 60% of the total turnover of the business is being collected through these platforms. Having been able to successfully withstand the fierce competition and challenging market conditions, BPCL is gearing up to face fresh challenges by devising appropriate strategies for re-aligning and positioning itself in high consumption centres and unrepresented markets. GAS BPCL was one of the first movers in the emerging gas market in India by becoming one of the promoters of Petronet LNG Limited (PLL). BPCL is one of the marketers
of LNG which is made available from the PLL terminal at Dahej. BPCL also has a share of 40% in the upcoming LNG terminal of PLL at Kochi. BPCL is also a pioneer in setting up City Gas Distribution (CGD) networks in India and has promoted four Joint Venture Companies in this area. With a view to have greater focus, gas marketing, which was earlier a part of the I&C Business, has been made as a separate business from 2009. During the year 2009-10, the total gas volume handled was 820 TMT as against 866 TMT in the previous year. The decrease in volume is on account of the completion of the contract for supply of RLNG to Ratnagiri Gas Power Private Limited in September 2009 after the allocation of the indigenously produced gas to them. Apart from the 710 TMT of sales to consumers, 110 TMT of gas was supplied to Mumbai refinery. BPCL was the first public sector refinery to start drawing from the KG D6 gas allocation from February 2010. BPCL presently has a firm allocation of 0.26 mmscmd and fall back allocation of 0.31 mmscmd of RIL D6 gas for use at Mumbai refinery. A Gas Sale Agreement has also been signed by BPCL along with other offtakers, with National Thermal Power Corporation Limited for supply of RLNG for a period of 20 years to their Kayamkulam plant, with BPCL having a share of 0.4 MMTPA. LUBRICANTS The Lubricants business, which was the first to be decontrolled in the oil sector, is also one of the most competitive. Given that the Indian economy is expected to deliver healthy GDP growth rates, the Lubricants business offers immense potential for growth. BPCL has inherent strengths including a strong geographical presence across the country, Research & Development competency enabling continuous product upgrading, own source of Group II+ base oil at Mumbai, pan India presence in terms of distributor network and young and energetic workforce committed to achieving excellent performance. At the same time, there are inherent threats like increased competition from re-refiners offering local brands of lubricants and the continuous phasing out of two stroke engines. Given this background, the Lubricants business delivered a sales volume of 231.12 TMT in 2009-10 as compared to 203.22 TMT in the previous year representing a growth of 13.73% over the previous year. The finished lubricants volume grew by 23% during the year. Both the Reseller channel (Retail & Bazaar) and Direct channels grew by over 20%. In the retail channel, focus remained on generating secondary sales at the outlet. Initiatives like MAK QUIK and One Day Wonder improved visibility of the brand and offered a value proposition to customers. A value added service was created by offering authorized Hero Honda Annual Report 2009-2010
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service stations under the brand ‘City Works’. As at 31st March, 2010 there are 160 City Works operating at various locations across the country. The Bazaar channel has assumed great importance and BPCL has identified high potential markets and remained aggressive in those markets to achieve deeper penetration. BPCL’s MAK Lubricants are now available across the country at more that 23,000 retail counters apart from small mechanic shops and authorized service stations. New products like MAK Boat XP MAK Chakda were launched during the year. , BPCL has expanded its customer base in the Direct market across segments with specific focus on key growth sectors in India. The full range of products are on offer from normal applications like Engine oils to Hydraulic, Cutting, Marine and very specialized products for applications in Defence and Railways. During the year, products were launched for specific applications like MAK Steel for steel plant applications, MAK Amocam Plus and superior Industrial Gear Oils. On the exports front, BPCL entered the Bangladesh and Sharjah markets during the year. Considering the importance of the Original Equipment Manufacturers’ (OEM) segment, there was a special focus on OEM business and BPCL entered into two new alliances which saw the introduction of Escorts 4 stroke Bike Engine oil and TATA Passenger Car Motor oils. Given that the per capita consumption of lubes in Asia is 1/6th of some of the western countries, this category has a promising future in the Indian market. Barring the recent economic slowdown, the projections for the automotive sector remain strong and this will help the lubes sector to remain on the growth path. However, the future volume growth would be impacted by the use of better quality, long drain lubes thus increasing the replacement cycle for lubes. In the short term, intense competition can be expected and success of a product would largely depend on how well it is positioned, branded and distributed. LPG The year 2009-10 was an eventful year for the LPG Business. While the international price of LPG has been vacillating, the domestic LPG consumers were by and large insulated from those fluctuations. Although BPCL’s profitability and liquidity have been adversely impacted, the demand of genuine customers was fully met while ensuring increased efforts to avoid leakage of subsidized LPG to the non-domestic segment. BPCL’s total LPG sales for 2009-10 stood at 3235.82 TMT giving it a market share of 25.8%. LPG sales volume grew by 6.68% as compared to the previous year when the sales volume was 3032.9 TMT. With the addition of 1.9 million new customers during the year, ‘Bharatgas’ is present in approximately 28 million households as on
31st March, 2010. The customers are serviced through a network of 2187 LPG distributorships. In terms of LPG bottling infrastructure, BPCL has 49 LPG Bottling Plants with a rated capacity of 2472 TMTPA. The total LPG bottling during the year 2009-10 was 2936 TMT, representing a capacity utilization of 107%. BPCL has also connected 48,533 households as on 1.4.2010 through the LPG Reticulated System or ‘Piped LP Gas system’ including 10,332 households who were enrolled in 2009-10. In the commercial packed segment, where the product is sold at market determined prices, BPCL’s volumes registered a growth of 26.44%. BPCL has commenced refill booking through SMS and IVRS system. The refill booking through SMS has been introduced at all state capital markets and metros. Refill booking only through SMS/IVRS has been taken up as a pilot for the Delhi market. During 2009-10, the ‘Beyond LPG’ initiative registered a turnover of Rs.700 crores representing a 59% growth over the previous year. BPCL’s efforts are directed at enrolling more distributors into the programme so that a larger section of the consumers could benefit from the value proposition. Bharat Metal Cutting Gas (BMCG), which was developed by BPCL to replace the conventional Acetylene, has come to be accepted as an ideal product for the metal cutting and brazing applications in the industrial sector. The product has gained tremendous popularity and confidence amongst the industrial users, primarily because of its performance efficiency and low cost vis-à-vis Acetylene. Continued refinement of this product is on and IIT, Roorkee has developed new nozzles which could further improve the cutting performance of BMCG. During the year 2009-10, 6323 MT of BMCG has been sold to the industrial sector, registering a growth of 33% over the volumes achieved in 2008-09. As part of the initiative to market BMCG overseas, BPCL has formed strategic alliances in the Middle East. With over 189 customers in Saudi Arabia and more than 50 customers in Oman, the product has been well received. Technical demonstrations were held in the United Arab Emirates and the product was launched in the Emirates of Fujairah, Sharjah, Dubai and Ras Al Khaimah. BPCL continues to accord the highest priority to HSSE initiatives. A number of initiatives are being pursued in this area with particular focus on leading a healthy life and injury free workplace. Several measures have been taken to ensure real time safety assessment of LPG plants with a view to identify and take corrective measures without delay. To meet market challenges and ever rising customer expectations, effective steps were undertaken to upgrade the skills and capabilities of field staff through focused Training and Development plans. During the year, e-learning
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Bharat Petroleum Corporation Limited
modules on BMCG, benchmarking and safety in LPG plants have been developed and launched through the LPG knowledge portal - “Bharatgas University”. AVIATION The Indian aviation sector has been passing through some tough times in the last two years, on account of the high prices of aviation turbine fuel and the effects of the economic slowdown. However, there were signs of passenger traffic increasing in the later part of the financial year and consequently, the industry sales volume of ATF which had declined in 2008-09, reflected a growth of 3% in 2009-10. During the year, BPCL had initially lost market share, mostly in the domestic segment, which was made up by acquiring new business from international airlines. Consequently, BPCL ended the year 2009-10 with a sales volume of 925 TMT, which represented a nominal growth of 0.91% over the previous year. During the year, BPCL commissioned ATF fuelling facilities in seven new airports. BPCL currently has a presence in 30 airports across India. The focus was on reducing the level of inventory holding, which has come down to 9 days from 19 days as at the end of the previous year. BPCL also commissioned the Hydrant Fuelling System at Gwalior Airport, which is the first of its kind at any Defence Airport. With domestic airlines facing severe liquidity constraints, BPCL’s working capital increased on account of higher outstandings from these customers. HUMAN RESOURCES It is BPCL’s continued endeavour to enhance its growth through the effective development of its human resources. As on 31st March 2010, BPCL had 13898 employees on its rolls. In the recent past, a combination of demographic factors, market forces and forays into new businesses has brought in a new urgency for the need to cultivate a workforce that offers true competitive advantage. Several learning processes and initiatives have been designed and delivered keeping this in view. In order to enable people at various levels to take up leadership roles in the future, a number of customised assessment processes and training programmes were introduced, keeping in mind business priorities and key skills required for critical roles. Further, to enable the resolution of the ongoing challenge of aligning business goals with individual goals, a series of workshops on “Strategic Performance Excellence” covering a large number of executives, are being conducted. Using the existing Balanced Scorecard framework, these workshops enable executives to appreciate business strategy, discover appropriate measures, take accountability and understand and respect interdependencies. Continuing its journey as a ‘Learning Organisation’, BPCL is in the process of creating its second generation cadre of
Internal Coaches equipped with the knowledge, skills and tools of Organisation Learning technology. These coaches will work with teams and help them in dealing with change/ crafting change for themselves and develop individual and collective capacity to reach goals. In an effort to take learning beyond training rooms, an innovative Case Study Challenge ‘Socratix’ was launched for employees to develop strategic insights and organizational vision. An “E-learning portal” was recently launched to reach out to over 4500 employees at several locations across the country, to provide them opportunities to enhance their soft skills as well as technical skills. Over the years, employees have been motivated to generate more ideas with a view to engage their creative minds to achieve excellence and enhance their learning process. The ‘IDEAS’ platform is one such initiative to recognize and promote creativity at the workplace. This participative tool has helped to promote employee commitment and involvement, besides improving efficiency derived from the ideas contributed by them. In 2009 a total of 272 entries were received under “Creative Stroke” for ideas that have been successfully implemented and 567 entries under Mind’s Eye Category for ideas that may have huge potential in terms of business benefits, but have not found the right platform for implementation. A total of 35 entries were adjudged winners under the various categories, in recognition of the contribution made by the participants to enhancing the organization’s effectiveness. Another milestone in strengthening the human resource management systems is the migration of the Performance Management System (PMS) into the SAP platform. The migration of PMS in SAP will bring about positive changes, such as enhanced accountability across the spectrum, discipline in terms of timely completion of the PMS and transparency in the end to end appraisal process. It is also envisaged that this should bring in sharper focus on performance culture in the organisation. Leveraging technology to further strengthen the quality of services provided to the internal customer by human resources is another core area of focus for BPCL. A module called “My Portal” is a one-stop dashboard available to every employee in the organization, wherein transactions related to leave, travels and tours, approvals, salary and offcycle payments and a host of other HR/Administration related activities are uploaded. By providing world class systems to make HR services smoother, faster, accountable and more effective, BPCL has taken another step to enhance its performance driven culture. Apart from providing opportunities to employees within the organization, BPCL also endeavours to promote excellence in higher education of meritorious students Annual Report 2009-2010
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through the BPCL scholarships scheme for higher studies. During the year 2009-10, 29 students going abroad for pursuing higher studies were provided financial support through this scheme. Employee Satisfaction Enhancement (ESE) Cell is a unique and innovative initiative taken by BPCL in its endeavour to make BPCL “A Great Place to Work”. The objective of the ESE Cell is to lay down a framework for prompt redressal of genuine grievances of all the employees of the Corporation. One of its focus areas is to reach out to the maximum number of employees in a proactive manner to listen to them, to understand their issues and concerns and resolve them. BPCL recognizes that unless adequately and promptly resolved, these issues would result in lower productivity and a demoralized work force. The Employee Assistance Programme - ESE Roshni was carried forward during the year. Through this programme, counselling services are provided for management staff and their family members by professional counsellors. More than 1100 management staff have taken advantage of the programme, appearing for online self assessment tests, reading self developmental articles and going for counselling. The ESE cell also conducted sessions on Yoga / Pranayam, team building exercises etc. These measures and initiatives undertaken by ESE Cell have reinforced BPCL as a caring and employee friendly organization and immensely contributed in enhancement of overall satisfaction and wellbeing of its employees. INTEGRATED INFORMATION SYSTEMS Information Technology remains one of BPCL’s strengths. BPCL has continued its efforts to leverage information technology with a view to achieve greater efficiencies in all its operations. A number of strategic initiatives were launched during the year in different areas. The product exchange arrangement with other oil companies is an important part of the sales and distribution process. With a view to leverage the technology for mutual benefit, BPCL has put in place a B2B system with IOC. The two companies have exchange transactions at over 100 locations across the country and the value of the transactions exceeds Rs. 40,000 crores annually. The settlement of these transactions involves considerable reconciliation efforts. The technology backbone in the two companies was leveraged and a seamless integration of the systems was achieved across the two companies covering logistics, operations and finance functions. The time and effort taken for reconciliation has reduced significantly in both the companies. It is planned to extend the solution to cover exchange transactions with other oil companies. The implementation of the “Access Control” module of the Governance Risk & Compliance (GRC) solution of SAP
R/3 was completed in all businesses. This is an important part of the overall risk mitigation mechanism. The solution will enable ease of user access provisioning, transparency and the availability of audit trail. This will also facilitate the synchronization of the Manual of Authorities with the SAP system to define access privileges and ensure segregation of duties. As part of the Business Intelligence (BI) system, information dashboards have been made available to the role holders in all businesses and for the senior management team. The system has many user friendly features and being role based, provides all the information needed for taking effective business decisions. The travel management module of SAP R/3 was made operational from 1st September 2009. A robust platform is now in place for managing the travel processes efficiently with budgetary controls and integration of the vendor settlement process. By extending part of the process to travel agents, the back end HR processes have been streamlined and simplified. The Indian GAAP (Generally Accepted Accounting Principles) is proposed to be converged with IFRS (International Financial Reporting Standards) from the financial year starting 1st April 2011. The “New General Ledger” solution in SAP R/3 addresses the requirements for the above transition and BPCL has migrated to this solution with effect from 1st April 2010. During the year, a major effort was undertaken to standardize the service procurement process in the system. This was initiated with a view to ensure correct accounting, better compliance with tax laws and to secure proper adherence to provisions relating to deduction of tax at source. The new process has since been rolled out across all businesses and entities. The security systems, both at the external and internal peripheries, have been upgraded with new tools and solutions to secure the environment from external threats. The Symantec endpoint security solution implementation has been completed and rolled out across the organization. Another major initiative undertaken was the implementation of the RSA Two Factor Authentication system for ensuring safe and secure access of the systems by end users. During the year, BPCL’s network was upgraded to Multi Protocol Label Switching (MPLS) involving close to 180 locations. This has helped the implementation of new applications systems besides improving the network uptime and bandwidths. Improved connectivity was also established through alternate routes to the existing 16 MBPS link connecting the Corporate Data Centre at Mumbai to the Integrated Data Centre at Noida near Delhi through a 45 MBPS link. A state-of-the-art e-mail archival system has been implemented to safeguard important
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Bharat Petroleum Corporation Limited
business information and to comply with the requirements relating to retention of data. For the fourth time in succession, the ERP Competency Centre has been awarded the CCOE (Customer Centre of Excellence) certification from SAP This certification is . valid for 2 years. HEALTH, SAFETY, SECURITY & ENVIRONMENT BPCL continued to adopt a holistic approach on Workplace Health, Safety, Security and Environment as prime areas with a view to achieve sustainable performance. The Regional Health, Safety, Security & Environment (HSSE) Councils played leading roles in terms of employee engagements through active participation and sharing best practices across businesses and entities. Special emphasis was given to training programmes with a thrust on reinforcing safety culture across BPCL. In this direction, several training programmes and workshops covering workplace health, workplace security & surveillance, water harvesting at locations, safety & safe driving training to transporters’ crew were arranged regularly at locations. During the safety audits at the locations, the importance of using the Personal Protective Equipments (PPEs) by all at the workplace was highlighted to ensure safe operations. Workplace Security remained a key concern for the entire sales network in general and oil & gas storage locations in particular. Locations were operating under the frequent security alerts raised from time to time even as they kept the supply and distribution chain uninterrupted. Security preparedness and response was ensured at all locations across the country. A unique workshop on ‘Workplace Security & Surveillance’ was designed in close co-ordination with the State Police / CISF experts and rolled out to cover vital locations. BPCL published the 3rd Corporate Sustainability Report for the year 2008-09 with the theme ‘Responsible Development’. This report was as per GRI-G3 norms and it is a matter of pride that the report was rated A+ by the third party assurance provider, M/s. DNV. This is the first Corporate Sustainability Report to be assured in India as per Standard: AA1000 AS 2008 version. INTERNATIONAL TRADE AND RISK MANAGEMENT Crude oil prices moved from their lows of USD 45 per barrel at the beginning of the financial year to around USD 80 per barrel at the end of the financial year 2009-10. This was mainly on account of optimism in the market following the global financial recovery. Unlike the earlier years, the general trend of sweet crude oil grades (Brent) commanding premium over sour (Dubai) grades, the year 2009-10 saw Dubai prices commanding premium over the Brent price. This was mainly due to regional variation like reduced demand in the United States, strong demand
in India and China, production cut by OPEC countries and stability in countries like Nigeria resulting in increased production of low sulphur crude oil. In order to take advantage of the prevailing low Brent-Dubai differential, BPCL carried out suitable changes in its procurement strategy by changing the crude oil mix of its refineries. During the year, the average price of Brent Crude Oil reduced by about 18% from USD 84.45 per barrel in 2008-09 to USD 69.62 per barrel in 2009-10. Further, the sweet / sour (Dated Brent / Dubai) difference reduced substantially from USD 1.6 per barrel in 2008-09 to USD 0.05 per barrel in 2009-10. During the year, BPCL imported 14.40 MMT of crude oil as compared to 12.70 MMT in 2008-09. In value terms, the cost of imported crude oil on Free on Board (FOB) basis amounted to USD 7560 million (Rs.35,419 crores) as compared to USD 7961 million (Rs.36,114 crores) in 2008-09. The average price stood at USD 70.4 per barrel as compared to USD 85.3 per barrel in the previous year. The ratio of “Term to Spot” purchase of imported crude oil was 62:38 which was lower than the 85:15 ratio in 2008-09, mainly due to the cut in production by OPEC. For procurement of spot cargo, BPCL sought better terms and conditions with the suppliers, expanded the vendor base, added new grades of crude oil and opened up new avenues for procurement of crude oil from floating storage. On the products front, BPCL imported 1588 TMT of HSD, 33 TMT of SKO, 211 TMT of MS, 228 TMT of LPG to meet the shortfall in supply from domestic sources. BPCL also imported 48 TMT of Reformate as blendstock during the year 2009-10. During the year, BPCL exported 2698.91 TMT of refined products. This was higher than the level of 1381.88 TMT exported during the previous year. Export of Fuel Oil increased from 664.29 TMT in 2008-09 to 982.58 TMT during 2009-10. Export of naphtha increased from 703.45 TMT in 2008-09 to 1341.45 TMT during 2009-10. During the year, BPCL also exported 352.39 TMT of High Sulphur Gas oil. In recognition of its export performance, Director General of Foreign Trade recognised BPCL as a “Premier Trading House”. This was an improvement over the earlier recognition status as a “Three Star Export House”. In order to ensure regular transportation from the foreign ports to its refineries, BPCL entered into a Contract of Affreightment (COA) with Shipping Corporation of India (SCI) for upliftment of 6 MMT per annum of imported crude oil for a period of three years. On the same lines, a COA is signed with SCI for upliftment of 2.35 MMT per annum of Mumbai High Crude for Kochi Refinery. Further, to ensure fixed cost of freight and take advantage of a depressed freight market, BPCL has taken two Afframax size vessels (80000 tonnage) on time charter. Strategies Annual Report 2009-2010
39
on optimal parcel size were worked out in order to bring down freight cost and inventory holding cost. A thorough examination of the existing terms and conditions of COA was carried out. These steps have contributed in reducing freight cost. Considering the high volatility in the prices of crude oil and petroleum products, hedging of refinery margins continued to remain an important focus area. Besides hedging the refinery margin, BPCL has undertaken hedging the price of platinum required for Kochi Refinery’s modernisation plan. With this hedging, BPCL achieved the distinction of being the first company in the Indian Oil Industry to cover exposure on the precious metal. BPCL added yet another feather in its cap by becoming the first company to undertake hedging of freight rate exposures. BPCL continues to be a front runner in the Industry with its expertise in Risk Management and is now a widely respected name by a number of players in the international oil market. The Trading and Risk Management (TRM) Board articulated the risk appetite of the Corporation. The Audit Committee of the Board also reviewed the hedging activities. The Risk Management Committee (RMC) continued to provide direction and guidance besides carrying out regular review of hedging positions. Regular review of credit exposure of counterparties was undertaken. Credit ratings of the counterparties were analysed and internal credit limits adjusted to incorporate any change in their credit ratings. New counterparties were enrolled with a view to diversify the credit risk and obtain competitive quotes. RESEARCH & DEVELOPMENT BPCL continued its focus on Research & Development activities at the Corporate R&D centre at Greater Noida in Uttar Pradesh, Product & Application Centre, Sewree, Mumbai and the R&D Centre at Kochi Refinery. R&D forms the backbone for Lubricants Business, to achieve a higher growth and better profitability through development of new formulations and alternate formulations for the existing Lube & Grease products. During the year, new products developed include Passenger Car Engine Oil for a major Original Equipment Manufacturer, Fully Synthetic Gear Oil, customer specific Metal Working Fluid, High Performance Grease etc. These would bring a number of business benefits in terms of improving BPCL’s market share, making available better quality products, reduce input costs etc. The Corporate R&D Centre filed five Indian and five foreign patent applications to protect the intellectual property that resulted from innovative research. As part of its new initiatives, BPCL continued its research collaborations with a number of leading research institutes. These include
collaborations with Indian Institute of Science, Bangalore, Osmania University, Hyderabad, Tamil Nadu Agricultural University, Coimbatore, IIT, Roorkee, IIT, Madras and Institute of Plasma Research, Gandhinagar. BPCL had taken up three projects with the Indian Institute of Science, Bangalore on cutting oils, adsorption of natural gas using nano technology and photo voltaic cells using new materials like copper, indium, gallium, sulphur, zinc. While the first two were started in May 2008, the third project was started in May 2009. The project on cutting oils was undertaken after it was found that the stability of soluble cutting oils was poor leading to complaints from customers. During the course of research, BPCL and the Institute have developed a machine that can measure friction at the point of contact. BPCL is in the process of obtaining a patent for the same and putting it into commercial use. There are challenges to be overcome before the product can be commercialized. Work is currently on with regard to the other two projects on improved methods of storage of gas and the next generation of solar cells. BPCL is planning to undertake further research projects with the Indian Institute of Sciences in areas like residue upgradation for producing value added products, alternate fuels, treatment of effluents, hydrogen production using solar energy etc. EXPLORATION AND PRODUCTION OF CRUDE OIL AND GAS Bharat PetroResources Limited (BPRL) was incorporated on 17th October, 2006 as a wholly owned subsidiary of BPCL to focus on exploration and production activities. Till date, BPRL has participating interests (PI) in 26 exploration blocks, in India and abroad (of which 9 blocks are in India and 17 are abroad - in 6 countries), with PI levels varying from 10% to 40%. The countries (besides India), where BPRL has blocks are Australia, Brazil, East Timor, Indonesia, Mozambique and the United Kingdom. All these blocks are in various stages of exploration, and BPRL’s acreage in all these blocks is about 81,000 sq km, of which approx 91% is offshore acreage. All the above interests are held either directly by BPRL, or through its Joint Ventures / wholly owned subsidiaries. BPRL, through its wholly owned subsidiary company, Bharat PetroResources JPDA Limited (BPR-JPDA LTD), has a PI of 20% in Block-JPDA 06-103-East Timor in the Joint Petroleum Development Area between Australia and East Timor. IBV Brazil Petroleo Limitada, a joint venture company where BPCL and Videocon Industries Limited each have a 50% share of the capital, has PI in 10 blocks in Brazil. Further, BPRL has incorporated a wholly owned subsidiary
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Bharat Petroleum Corporation Limited
company, BPRL International BV, which in turn, has incorporated BPRL Ventures BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia BV as wholly owned subsidiary companies for undertaking exploration activities in various countries. BPRL Ventures Mozambique BV has PI in a block in Mozambique, and BPRL Ventures Indonesia BV holds PI in a block in Indonesia. While the previous year was focussed on acquisition of exploration acreages, the current year predominantly was the year of consolidation with streamlining of operations in Brazil, moving ahead decisively on the Indian and overseas work programme, and venturing into the unexplored virgin basin of Mozambique. Also, PI in a block in the Nunukan basin in Indonesia was acquired during the year 2009-10, through the farming in process. The year also saw the announcement of 2 world class discoveries, one each in Mozambique and Brazil. The award of Joint Operatorship with Hindustan Oil Exploration Corporation Ltd. (HOEC) in the Rajasthan block during the NELP VII bid round was another milestone for BPRL. Looking ahead, BPRL is focused upon consolidation of its portfolio, while at the same time, keeping an eye open for potentially good opportunities. Constant updation and augmentation of the technical data base and in-house capabilities are also being actively undertaken. AWARDS AND RECOGNITION BPCL was conferred with the prestigious FE EVI (Financial Express & Emergent Ventures India) Green Business Leaders Award for the year 2009-10. The award recognizes the excellent green initiatives towards climate change. Team FE EVI, along with knowledge partner Indian School of Business, Hyderabad had conceptualised a unique model to award deserving companies in India from the ‘FE 500’ list. The selection criterion for the awards involved a study of 80 Indian businesses and evaluation of their performance over an extended period of time. Selection was also based on a company’s initiatives towards becoming a ‘Green Company’. BPCL has been awarded for understanding Climate Change to cut down the greenhouse gas (GHG) emissions and taking necessary steps to find cost effective mitigation solutions. BPCL received the Best Cash Management Deal for Electronic Receipt Solution instituted by the Asset Magazine, Hong Kong, a well respected finance magazine. The Asset Triple A transaction banking award is the industry’s most prestigious award for banking, finance, treasury and the capital markets. This award was in recognition of BPCL having introduced RTGS/NEFT collection with full integration with SAP through BNP Paribas Bank for the realization of money from the
customers, which has led to reduction of interest cost, bank charges, credit exposure, saving of man-hours relating to dealing with physical instruments and hassle free operations for the customers. BPCL was awarded the “Fleet Enabler of the Year” in The Apollo-CV Awards 2010. Apollo Tyres Limited, in association with CV magazine, announced the first set of dedicated awards for the commercial vehicle segment in India. A unique feature of these awards was that, apart from recognizing commercial vehicle and ancillary manufacturers, fleet operators too were acknowledged for their contribution to the industry. The BPCL brand has climbed up three notches to the sixth place, bettering its valuation to US $ 2.62 billion, according to the valuation of India’s Top 50 Most Valuable Brands by M/s. Brand Finance. BPCL has reinforced its standing in the energy industry by ranking 97th globally, 15th in Asia and 5th in Refining and Marketing among the Asian companies, as per Platt’s Top 250 Global Energy Companies 2009 list. The Bharatgas brand has been recognized as Business Superbrand 2009, the ranking given to exceptional brands on the criteria of market dominance, longevity, goodwill, customer loyalty and market acceptance. BPCL won the Readers Digest Most Trusted Brand Award in the Gold category for the third year in succession. The Association of Business Communicators of India (ABCI) recognized the company by selecting the ‘MAK online viral’ for the Gold Award. The external magazine – Journeys - lifted the Silver Award and the CSR campaign & Corporate Website won the Bronze Awards. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY BPCL has a system of internal controls to ensure optimum utilization and protection of resources, IT security, speedy and accurate reporting of financial transactions and compliance with applicable laws and regulations, as also internal policies and procedures. For this purpose, the company has formulated a clearly defined organization structure, authority limits and internal guidelines, rules for all operating units and service entities. ERP Solution and Business Information Warehouse systems have further enhanced the internal control mechanism. BPCL has an Internal Audit department consisting of experts from various functions, which supplements the review of key business processes and controls through regular audits. Audit reports, significant risk area assessment and adequacy of internal controls are also periodically reviewed by the Audit Committee through meetings held with Management, Internal Audit and the Statutory Auditors. Annual Report 2009-2010
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ANNEXURE TO THE DIRECTORS’ REPORT ANNEXURE A
Efforts made by BPCL in regard to Conservation of Energy, Technology Absorption, Foreign Exchange Earnings & Outgo, which are required to be given under Section 217 (1)(e) of the Companies Act,1956, are as under : A. CONSERVATION OF ENERGY (i) Energy conservation measures taken and additional investment/proposals for conservation of energy: Energy conservation efforts received continuous focus, both in terms of improvement in operations/ maintenance as well as development of new projects. Continuous monitoring of fuel consumption and hydrocarbon loss is undertaken using sophisticated instruments and data acquisition system. An elaborate energy accounting system and Management Information System is an important feature of BPCL Mumbai and Kochi Refineries operation. As a part of Oil & Gas Conservation Fortnight 2010, M/s. CHT had organised a detailed “Furnace Efficiency & Insulation Effectiveness” survey for BPCL Refineries along with external experts. In addition, various awareness programs on the Oil Conservation theme were conducted, both inside & outside the refineries, including free PUC check up for vehicles. (ii) Additional investments & proposals, if any, being implemented for & impact of the measures for reduction of consumption of energy & consequential impact on the cost of production of goods. Mumbai Refinery The following energy conservation and loss control measures were adopted during the year 2009-10 which have resulted in significant fuel savings : • High emissivity ceramic coating was applied to process heater tubes and refractory walls of the new Crude Unit and Vacuum Unit furnaces (F 101 & 102) during March 2009 shutdown, to achieve better heat absorption in the radiant section and fuel saving. • Special type insulation was installed on bare hot tubes of the NHGU furnace. • Foam / chemical cleaning of air fin coolers in the new Crude Unit complex and C3C4 Unit to improve performance. • “Chemical decontamination” technique was adopted for the first time in the refinery during turnaround. This helps in improved heat exchanger cleaning and better decontamination for carrying out plant jobs. • During turnaround, services of the combustion technology expert from M/s Hamworthy Combustion Global Solutions was obtained, to get suggestions for adopting the best practices leading to improved efficiency of the furnaces. • Replacement of air pre-heater in CDU 2 furnace for improved heat recovery. • Installation of Step-less control in the Make-up-Gas Compressor (MUG) of the Hydrocracker Unit to reduce power consumption. • Modification in LOBS plant to warm up feed pump – fuel saving by reducing furnace load. • Processing of the hydrogen rich Catalytic Reformer Unit (CRU) off gas in the Hydrocracker Unit PSA system and new Hydrogen Unit to reduce overall Naphtha consumption for hydrogen generation. • “Dry ice blast” cleaning of the convection section of heaters to improve efficiency. • Stopping of Naphtha fuel pumps in CPP – LNG replacing Naphtha fuel in Gas turbines. • Chemical cleaning of HVU heater process tubes during shutdown to improve heat absorption. • Impellor trimming of VDU pump for power saving. • Use of energy saving CFL lamps. • Energy saving device/torroidal core transformers for energy saving in lighting circuits. • Installation of Capacitor banks to maximize power factor • A comprehensive survey on the “Instrument Air Supply System” was carried out to identify and rectify instrument air leaks. • A survey of “Fuel oil line insulation effectiveness” was carried out to improve the fuel oil temperature for better viscosity at burners. • Maximisation of crude throughput in modern highly energy efficient Integrated Crude & Vacuum Unit.
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Bharat Petroleum Corporation Limited
• Antifoulant chemical injection in all Crude & Vacuum units. • Injection of fire side chemical additive in HVU / CRU Heater. • Regular cleaning of preheat exchangers of process units. • Reduction of slops by tighter operational control. • Continuous monitoring & control of all parameters of Furnaces & Boilers. • Continuous monitoring & control of flare. • Regular steam Insulation & steam leak surveys. • Replacement of Insulation for various Steam Headers. • Replacement of leaky steam traps & regular attending to steam leaks Energy conservation and loss control measures planned for implementation in future years: BPCL Mumbai Refinery is implementing / planning to implement various energy conservation and loss control projects as given below: • Processing of CDU 2 LR in energy efficient VDU which will result in energy saving as well as yield improvement. • Provision of Variable Speed Drives for CDU NB2A Heater FD fan & CDU B1Heater ID Fan. • Extension of “Chemical Decontamination” technology for other units during turnaround. • Air fuel ratio controller in DHDS charge heater. • APH replacement in CMU F01/F02, CDU B1 & NB2A furnaces. • Trial run of on line chemical injection in select furnaces for improving heat absorption. • On line chemical cleaning of radiation tubes of select furnaces. • Stopping of Naphtha feed pump in Old Hydrogen unit – 100% LNG feed replacing Naphtha. • Antifoulant chemical injection treatment to prevent crude side fouling in exchangers. • Phase wise replacement of steam headers insulation. During the year, Mumbai refinery was awarded the first prize for having achieved the best “Specific Energy Consumption” for FY 2007-08 among refineries under the category of Composite Energy index ? 5 by Center For high Technology (MoP&NG). Kochi Refinery The following energy conservation and loss control measures were adopted during the year 2009-10, resulting in significant fuel savings: • Commissioning of HP to MP steam turbine for cooling water pump in DHDS. • LP steam extraction from recycle gas compressor in DHDS. • DEA flow optimization in fuel gas Amine Absorption Unit. • Cascade control for reboilers in Aromatic Recovery Unit. • Automatic Combustion Control for DHDS charge heater. • LP steam air pre-heater for crude charge heaters. • FRP blades for air-fin fans in crude unit. • Stopping of one feed water pump of boiler UB8/9. • Variable Speed Drives on-site trial runs conducted for 16 pumps in Kochi Refinery. • Energy Audit on Air conditioning systems conducted. • Functioning of ENCON Clubs in Schools & Colleges revitalized with the number of ENCON Clubs increasing from 25 to 50. BPCL Kochi Refinery is implementing / planning to implement various energy conservation and loss control projects as given below: • Optimization of pump drives through VFD installation in 15 drives • Implementation of automatic air fuel ratio based combustion control for heaters EH1 and CH223 • Installation of LP steam air pre-heaters in DDH1 and CH 223 Annual Report 2009-2010
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Condensate recovery from LP steam APH in heaters CH1A/B, CH 21/22 and CH 223 Replacement of sour water pump (SWP-5) with lower capacity pump CP-102. Recovering condensate from YE 101 (Biturox feed pre-heater) Step less control system in DHDS make up gas compressor Use of anti-foulant in crude pre-heat circuit to maintain pre-heat at SOR conditions Modification of pre-heat circuit for enabling locating one of the CE 6 exchangers downstream of Pre fractionator in case of crudes with high residue • Pre-heat train optimization in CDU-1 along with vacuum column modification • Change stripping steam in CDU-II from MP to LP by installing MP to LP turbo drive for compressor/ pumps (15 TPH steam) • Routing of leak-off steam from seals of boilers UB8 / 9 auxiliary turbines to de-aerator • Optimization of air conditioning systems in the refinery • Replacement of low efficiency crude charge heaters CH-1 A/B and kerosene charge heater KH-1B with high efficiency heaters The following Energy & Environment awards were received by Kochi Refinery during the year 2009-10. Sl. No 1 Year 2009 Award State Pollution Control Award – 2009, Excellence Award Kerala State Energy Conservation Award, Commendation Certificate Authority Kerala State Pollution Control Board Energy Management Centre, Kerala Category For outstanding achievement in pollution control For commendable achievements in Energy Conservation and Management
• • • • • •
2
2009
B.
Impact of the measures for reduction of consumption of energy & consequential impact on the cost of production of goods : Fuel savings as a result of the energy conservation measures implemented in the refineries during the year 2009-10 correspond to the total savings potential of more than 10700 tonnes of fuel oil equivalent (provisional). (iii) Details regarding total energy consumption and energy consumption per unit of production etc. are given in the prescribed Form A annexed hereto. TECHNOLOGY ABSORPTION The Refineries implemented the following projects to obtain the benefits of the latest technological developments and advances: Mumbai Refinery In line with the action plan for meeting the auto fuel quality upgrade of part production of Euro IV quality Diesel by April 2010, the DHDS unit was revamped from 1.4 MMTPA to 2.0 MMTPA based on the catalyst and technology supplied by M/s Haldor Topsoe. A new 2350 MT/D CC Gasoline Splitter Unit, designed by M/s EIL, was installed to separate the high sulphur heavy component from the Catalytic Cracked Gasoline to make it suitable for producing Euro-IV MS. Kochi Refinery Propylene unit with a capacity of 50000TPA for producing chemical grade propylene with a purity of 95% by weight was commissioned in August 2009. UP203 D Cooling Water pump in DHDS was converted from motor driven into turbine (HP to MP) driven.. Crude distillation unit II capacity was increased to 9.5 MMTPA from 7.5 MMTPA. A new Naphtha splitter unit (NSU II) was added to CDU II as a feed preparation unit for CCR. Details regarding the efforts made in technology absorption as per the prescribed Form B are annexed hereto. Bharat Petroleum Corporation Limited
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C.
FOREIGN EXCHANGE EARNINGS / OUTGO (i) Activities related to exports; initiatives taken to increase exports; development of new export markets for products and services; and export plans : Crude Oil Imports Crude oil prices moved from their low of USD 45 per barrel at the beginning of the financial year to around USD 80/bbl at the end of the financial year 2009-10. This was mainly on account of optimism in the market following global financial recovery. Unlike the earlier years and the general trend of sweet crude oil grades (Brent) commanding premium over sour (Dubai) grades, the year 2009-10 saw Dubai prices commanding premium over Brent price. This was mainly due to regional variation like reduced demand in the United States, strong demand in India and China, production cut by OPEC countries and stability in Nigeria resulting in increased production of low sulphur crude oil. In order to take advantage of the prevailing low Brent-Dubai differential, BPCL carried out suitable changes in strategy in procurement of crude oil by changing the crude oil mix of its refineries. The average price of Dated Brent Crude Oil reduced by about 18% during the year from $ 84.45/bbl in 2008-09 to $ 69.62/bbl in 2009-10. Further, the sweet / sour (Dated Brent / Dubai) difference reduced substantially from $ 1.6/bbl in 2008-09 to $ 0.05/bbl in 2009-10. During the year, BPCL imported 14.40 MMT of crude oil as compared to 12.70 MMT in 2008-09. In value terms, the cost of imported crude oil on FOB basis amounted to USD 7560 million (Rs.35419 crores) as compared to USD 7961 million (Rs.36114 crores) in 2008-09. The average price stood at USD 70.4 per barrel as compared to USD 85.3 per barrel in the previous year. The ratio of “Term to Spot” purchase of imported crude oil was 62:38 lower as compared to 85:15 in 2008-09 mainly due to production cut by OPEC. For procurement of spot cargo, BPCL sought better terms and conditions with the suppliers, expanded the vendor base, added new grades of crude oil and opened up new avenues for procurement of crude oil from floating storage. All these steps have yielded substantial saving to the Corporation. Further, BPCL also facilitated procurement of 0.5 MMT Arab Mix crude oil for its joint venture refinery, Bharat Oman Refineries Ltd. (BORL) for initial start-up and commissioning activities. Product Import and Export On the products front, BPCL imported 1588 TMT of HSD, 33 TMT of SKO, 211 TMT of MS, 228 TMT of LPG to meet the shortfall in supply from domestic sources and 48 TMT of Reformate as blendstock during the year 2009-10. During the year, BPCL exported 2698.91 TMT of refined products. This was higher than the level of 1381.88 TMT exported during the previous year. Export of Fuel Oil increased from 664.29 TMT in 2008-09 to 982.58 TMT during 2009-10. Export of naphtha increased from 703.45 TMT in 2008-09 to 1341.45 TMT during 2009-10. During the year, BPCL also exported 352.39 TMT of High Sulphur Gas oil. The foreign exchange earnings from these exports amounted to USD 1442 million (Rs.6,733 crores) as against USD 757 million (Rs.3,362 crores) during the previous year. In recognition of its export performance, Director General of Foreign Trade awarded a recognition certificate to BPCL as a “Premier Trading House”. This was an improvement over the earlier recognition status as a “Three Star Export House”. ii) The details of foreign exchange earnings & outgo are given below :Rs. Crores Earnings in Foreign Exchange - includes receipt of Rs. 1,636.56 crores (previous year Rs. 1,732.59 crores) in Indian currency out of the repatriable funds of foreign airline customers and Rs.12.18 crores (previous year Rs. 8.44 crores) of INR exports to Nepal and Bhutan. - Includes Rs. Nil (previous year Rs. 353.78 crores) on CFR basis. Foreign Exchange Outgo - on account of purchase of Raw Materials, Capital Goods, Chemicals, Catalysts, Spare Parts, International Trading Activities. 2009-10 10,301.35 2008-09 6,567.42
43,505.35
45,261.07
Annual Report 2009-2010
45
1. A.
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY MUMBAI REFINERY Power & Fuel Consumption 2009 - 10 2008-09 1. Electricity a) Purchased Units (Million KWH) 33.43 43.28 Total Amount (Rs.Crores) 20.12 29.00 Rate/Unit (Rs./KWH) 6.02 6.70 b) Own Generation Through Steam Turbine/ Generator Units (Million KWH) 511.37 503.78 Units (KWH) per Ton of Fuel 3,229.49 3,037.73 Cost/Unit (Rs./KWH) 4.50 6.25 2. Coal Nil Nil 3. Furnace Oil/Liquid Fuel LSHS Qty - MT 255,596 260,416 Total amount (Rs. Crores) 536.43 575.49 Avg. Rate (Rs./Unit) 20,987.37 22,098.86 IBP-60 Qty - MT 24,322 42,822 Total amount (Rs. Crores) 77.60 137.59 Avg. Rate (Rs./Unit) 31,905.09 32,131.41 4. Others / Internal Generation Bombay High Associated Gas (BHAG) Qty - (MT) 13026 229 Total amount (Rs. Crores) 14.66 0.26 Avg. Rate (Rs./Unit) 11,256.74 11,225.16 Regassified Liquid Natural Gas (RLNG) Qty - (MT) 19,527 Total amount (Rs. Crores) 32.61 Avg. Rate (Rs./Unit) 16,699.68 Internal Fuel : Refinery Gas Qty - (MT) 104,918 125,691 Total amount (Rs. Crores) 220.19 277.76 Avg. Rate (Rs./Unit) 20,987.37 22,098.86 PSA Off Gas Qty - (MT) 102,662 100,375 Total amount (Rs. Crores) 38.01 39.13 Avg. Rate (Rs./Unit) 3,702.40 3,898.48 FCC Units Coke Qty - MT 79,043 87,405 Total amount (Rs. Crores) 165.89 193.16 Avg. Rate (Rs./Unit) 20,987.37 22,098.86 Notes: 1. Decrease in power purchased cost is mainly due to higher power generation in GTs & lower power import. 2. Cost per unit of Power Purchased has decreased due to lower purchase of power from M/s TATA Power. 3. Cost per unit of power generated in CPP has decreased due to decrease in fuel cost (LNG consumption) & depreciation. Unit Stds. if any * 2009 - 10 2008 - 09 11,436,521 Production of Petroleum products MT 11,809,624 Electricity KWH/MT 46.13 47.84 LSHS / IBP-60 Kg/MT 23.70 26.51 Gas (Excluding CPP) Kg/MT 20.33 19.79 FCC Units Coke Kg/MT 6.69 7.64 * No fixed consumption parameter can be attributed to a particular product as the product pattern of the Refinery is governed by supply / demand scenario of products and Govt. directives. It is also a function of quantity / type of crude processed, planned shutdown of processing units for maintenance / inspection and severity of operations of processing units which varies widely. Bharat Petroleum Corporation Limited Energy consumption per unit of production
FORM A
B.
46
2. A)
KOCHI REFINERY 2009-10 Power and Fuel Consumption : 1) Electricity a) Purchased : Units (Million KWH) 70.81 Total amount (Rs.Crores) 28.41 Rate/Unit (Rs./KWH) 4.01 b) Own Generation i) Through Gas Turbine generation in CPP (Million KWH) 130.18 Units (KWH) per kg of fuel oil/gas 2.87 Cost/Unit (Rs./KWH) 5.42 ii) Through steam Turbine Generation (Million KWH) 68.34 Cost/Unit (Rs./KWH) 7.12 2) FCC coke for steam generation : Quantity (tonnes) 72,020 Total Cost (Rs.Crores) 160.67 Average rate (Rs./MT) 22,309 3) LSHS : Quantity (tonnes) 248,153 Total Cost (Rs.Crores) 553.61 Average rate (Rs./MT) 22,309 4) DHDS Naphtha : Quantity (tonnes) 41,481 Total Cost (Rs.Crores) 106.04 Average rate (Rs./MT) 25,563 5) Others (Refinery Fuel Gas) : (Excluding fuel used for Power Generation) Quantity (tonnes) 79,924 Total Cost (Rs.Crores) 178.31 Average rate (Rs./MT) 22,309 Notes : 1. Fuel for CPP consisted of Intermediates and Refinery Fuel Gas. 2. The purchased power is net of export to KSEB. 3. Cost of FCC coke, LSHS, Intermediates, Refinery Fuel Gas etc. are at average cost. Energy consumption per unit of production Production of Petroleum products Electricity Unit Stds. if any * MT KWH/MT 2009 - 10 7,388,894 35.29 2008-09
39.56 21.19 5.36 145.83 2.88 5.56 73.76 6.60 67,030 134.54 20,071 243,866 489.46 20,071 38,173 97.53 25,549
83,221 167.03 20,071
B.
2008 - 09 7,192,203 34.81
FCC Coke Kg/MT 9.75 9.32 LSHS Kg/MT 33.58 33.91 DHDS Naphtha and Refinery fuel gas Kg/MT 16.43 16.88 * No fixed consumption parameter can be attributed to a particular product as the product pattern of the Refinery is governed by supply/demand scenario of products and Government directives. It is also a function of quantity/type of crude processed, planned shutdown of processing units for maintenance/inspection and severity of operations of processing units, which varies widely. Annual Report 2009-2010
47
FORM B
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION RESEARCH & DEVELOPMENT (R&D) 1. Specific areas in which R&D has been carried out by the Company : i) Catalytic Processes ii) Development of Catalysts and Catalyst additives iii) Development of fuel additives/blending schemes iv) Detailed Crude Evaluations and Crude compatibility studies v) Development of nanomaterials for on-board gas storage and other applications vi) Development of Process scheme for synthetic lubricants vii) Modeling and Simulation of refinery processes viii) Corrosion and fouling ix) Advanced Tech support to Refinery & Marketing Operations x) Alternate fuels – Bio-ethanol, bio-diesel, hydrogen xi) Alternate energy devices – new generation solar PV cells xii) Long life Diesel Engine Oil for heavy commercial vehicles. xiii) Passenger Car Engine Oil for latest models. xiv) Bio-degradable Cutting Oil xv) High Performance Greases xvi) Defence specific grade lubricants xvii) Alternate lube formulations for existing grades Benefits derived as a result of the above R&D : i) Optimum catalysts and additives were selected / recommended for KR and MR FCC plants, resulting in improved yields/ product quality. ii) LPG Sweetening Catalyst jointly developed by BPCL and IIP Dehradun being used at Mumbai Refinery in the , FCC units has resulted in cost saving and better performance. iii) Cost effective CO promoter catalyst developed in-house has been in use at FCC unit of KR. An Indian Patent has been filed for protecting IPR for this innovation. iv) In-house developed BMCG product being commercially produced and marketed in India & overseas has resulted in substantial benefit to the Corporation. v) A cost effective route for producing MS-97 has been developed and commercialized at BPCL installations resulting in substantial savings. vi) Commercial trials were conducted successfully for the in-house developed corrosion inhibitor for ethanol-MS blend, which is expected to save costs. vii) Detailed crude evaluations aided in enhancing value realization and enlarging the crude basket. Crude blend compatibility studies helped in processing opportunity crudes. viii) Developed a model based on the physical properties using Aspen Plus to minimize quality giveaways in Fuel Oil (FO) production resulting in substantial benefits to the Corporation. ix) Energy Optimization Studies conducted for enhanced crude pre-heat heat recovery through pinch analysis resulted in reduced fuel consumption in MR. x) (a) Implementation of selected antifoulant with optimal dosage in MR crude-pre-heat trains resulted in improved heat recovery. (b) Implementation of selected demulsifier in MR CDU Units resulted in improved desalting and reduced overhead corrosion. (c) Studies on Mumbai-Manmad-Bijwasan (MMB) pipeline corrosion resulted in developing an in-house monitoring system for reducing the corrosion. Bharat Petroleum Corporation Limited
2.
48
xi)
3.
4.
Long life Diesel Engine Oil for heavy commercial vehicles - extends the drain period of engine oil for the latest high performance vehicles, besides increasing our share in this segment. xii) Passenger Car Engine Oil for the latest models –provides an opportunity to increase our market share in this segment. xiii) Bio-degradable Cutting Oil –protects the environment, besides providing viable option to customers xiv) High Performance Grease –helps us to increase our market share in the Steel manufacturing segment, besides providing a viable alternative to customer. xv) Defence specific grades –provide an indigenous alternative to Defence xvi) Alternate formulation for existing grades –helps in reducing the input cost, besides providing flexibility in operation. Future Plans i) Development of process scheme for the production of bio-fuels such as ethanol & bio-butanol and biolubricants. ii) Intensifying and enlargement of activities in the area of Refinery processes and resid upgradation. iii) Development of catalyst/additive for refining processes iv) Development of new process technologies using the additive approach for improving the product quality v) Enlargement of crude basket and identification of opportunity crudes and crude blends vi) Controlling Corrosion and fouling in Refinery units vii) Value added products/ solvents from the Refinery streams viii) Modelling and simulation of Refinery processes ix) Coal to Resid Technologies x) Alternate Fuels & Energy Devices such as bio-diesel, algal biofuels, hydrogen and solar PV cells. Developing the following grades / products : i) Diesel Engine Oil meeting the latest international specifications ii) Transmission Oil OEM specific iii) Metal Working Fluid iv) Synthetic Gear Oil v) Synthetic Refrigeration Compressor Oil vi) Defence specific grades Expenditure on R&D during 2009-10 (Rs. in Crores) Value Capital Expenditure Revenue / Recurring Expenditure Total Total R&D Expenditure as a % of total turnover 9.31 16.33 25.64 Negligible
Annual Report 2009-2010
49
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION A) MUMBAI REFINERY 1. Efforts, in brief, made towards technology absorption, adaptation and innovation The Refinery has undertaken the following projects to obtain the benefits of the latest technological developments and advances: A. In line with an action plan for meeting the auto fuel quality upgrade of part production of Euro IV quality Diesel by April 2010, the DHDS unit was revamped from a capacity of 1.4 MMTPA to 2.0 MMTPA as per the revamp design supplied by M/s Haldor Topsoe. B. A new 2350 MT/D CC Gasoline Splitter Unit, designed by M/s EIL, was installed to split the combined gasoline streams produced by the two Catalytic Cracking Units in the refinery into light and heavy components. The unit splits the feed stream into low sulphur Olefin rich lighter components (top & middle cuts) suitable for producing Euro III/IV MS and a bottom high sulphur heavy stream which is blended into HSD. 2. Benefits derived as a result of the above efforts, e.g. product improvement, cost reduction, product development, import substitution, etc. A. With the increase in the diesel desulphurization capacity, the HSD product mix was upgraded from BS-II/Euro-III to Euro-III/IV as per the requirements of the auto fuel policy of the Government of India. B. This has enabled production of Euro-IV MS from the refinery. 3. In case of imported technology (imported during last five years reckoned from the beginning of the financial year), following information may be furnished: (a) Technology imported: Technology DHDS Reactor catalyst change to new generation HDS catalyst TK 576 BRIM supplied by M/s Haldor Topsoe, Denmark in December 2007. Naphtha HDS catalyst was the latest Catalyst from M/s. Haldor Topsoe DHDS unit revamp from 1.4 to 2.0 MMTPA on technology and catalyst TK 576 BRIM supplied by M/s Haldor Topsoe, Denmark in January 2010. Year of import 2007 2007 2010
B) 1.
(b) Has Technology been fully absorbed? Yes. (c) If not fully absorbed, areas where this has not taken place, reasons therefore and future plans of action: Not applicable. KOCHI REFINERY Efforts, in brief, made towards technology absorption, adaptation and innovation The Refinery has implemented the following projects to obtain the benefits of the latest technological developments and advances during 2009-10 : a. Propylene Recovery Unit Propylene unit with a capacity of 50000TPA for producing chemical grade propylene with a purity of 95% by weight was commissioned in August 2009. b. Commissioning of high pressure (HP) to medium pressure (MP) steam turbine for UP203 D Cooling Water pump in DHDS. Cooling Water pump in DHDS (UP203 D) was converted from motor driven into turbine (HP to MP) driven thus utilizing available HP steam. c. CDU II Revamp Crude Distillation Unit II capacity was increased from 3 MMTPA to 5 MMTPA as a part of the Capacity Expansion & Modernisation Project Phase II (CEMP-II). A new heater was installed as Vac column feed heater and the existing Vac heater was utilized as balancing heater for crude distillation column. A prefractionator tower was added for debottlenecking the crude distillation column at increased capacity.
50
Bharat Petroleum Corporation Limited
The desalter in CDU II was modified for increased capacity during CDU II revamp based on technology supplied by M/s Natco, UK. d. Naphtha Splitter Unit. A new Naphtha Splitter Unit (NSU II) was added to CDU II as feed preparation unit for CCR. The technology was provided by M/s UOP USA and engineering and construction was by M/s EIL. NSU II will be taking , Naphtha feed from the Crude Distillation Unit II.
2.
3.
Benefits derived as a result of the above efforts, e.g. product improvement, cost reduction, product development, import substitution, etc. a. Propylene Recovery Unit A new product viz., Chemical Grade Propylene (95% purity) was added to the product slate. This is expected to improve refinery profitability. b. Commissioning of high pressure (HP) to medium pressure (MP) steam turbine for UP203 D Cooling Water pump in DHDS. HP to MP steam makeup through pressure reducing station (PRDS) was reduced from 25 TPH to 10 TPH. Conversion of the pump from motor driven to turbine driven resulted in a power saving of 255KW (approximate annual benefit of Rs 0.9 Crores). c. CDU II Revamp The revamp increased the crude unit capacity of the refinery from 7.5 MMTPA to 9.5 MMTPA. Along with other units being installed under CEMP-II project, this unit will enable production of required quantities of Euro III and Euro IV specification fuels apart from improving availability of all other products. d. Naphtha Splitter Unit This unit will prepare feed stream for the CCR Unit from CDU II Naphtha and is an essential requirement. In case of imported technology (imported during last five years reckoned from the beginning of the financial year), following information may be furnished: (a) Technology Imported: Technology DHDS Reactor catalyst change to new generation HDS catalyst supplied by M/s. Axens, France in December 2006 to produce Low Sulfur Diesel for meeting the Euro III Diesel demand. SPM system capable of receiving VLCCs by M/s. Blue Water Energy Services, Netherlands. BITUROX Unit technology supplied by M/s. Porner, Austria, capable of producing four different grades (VG-10/VG-20/VG-30 and VG-40) of Bitumen was commissioned during June 2008. Along with the Biturox Unit an incinerator, a scrubber and a wet air oxidation system were installed to convert Sulphides to Sulphates. NSU II – Naphtha splitter Unit as part of CDU II by M/s. UOP USA. , Desalter – CDU-II Unit Desalter revamp by M/s. Natco, UK. Year of import 2006
2007 2008
2009 2009
(b) Has Technology been fully absorbed? Yes. (c) If not fully absorbed, areas where this has not taken place, reasons therefore and future plans of action: Not applicable.
Annual Report 2009-2010
51
ANNEXURE TO THE DIRECTORS’ REPORT ANNEXURE B
Report on Corporate Governance
1) Company’s philosophy on Code of Governance Bharat Petroleum Corporation Limited’s corporate philosophy on Corporate Governance has been to ensure fairness to the Stakeholders through transparency, full disclosures, empowerment of employees and collective decision making. 2) Board of Directors As per the Articles of Association of the Company, the number of Directors shall not be less than three and more than sixteen. As on 31st March 2010, the BPCL Board comprised 5 Whole-time (Executive) Directors including Chairman & Managing Director, 2 Part-time (Ex-Officio) Directors and 5 Part-time (Independent) Directors. For nomination of additional 2 Part-time (Independent) Directors as required under revised Clause 49 of the Listing Agreement, the Company has taken up the matter with the Government of India. During the year, all meetings of the Board and the Annual General Meeting were chaired by the Chairman & Managing Director. None of the Non-Executive Directors of BPCL had any pecuniary relationship / transaction with the Company during the year. The Directors neither held membership of more than 10 Board Committees nor Chairmanships of more than 5 Committees (as specified in Clause 49 of the Listing Agreement and Guidelines on Corporate Governance for Central Public Sector Enterprises issued by Department of Public Enterprises) across all the companies in which they were Directors. The required information as indicated in Annexure IA to Clause 49 of the Listing Agreement and Annex IV to Guidelines on Corporate Governance for Central Public Sector Enterprises were made available to the Board of Directors. Details regarding the Board Meetings; Annual General Meeting; Directors’ attendance thereat, Directorships and Committee positions held by the Directors are as under : Board Meetings Five Board Meetings were held during the financial year on the following dates: 29th May 2009 28th July 2009 8th Sep 2009 29th Oct 2009 28th Jan 2010
The Board has reviewed the compliance of all laws applicable to the Company. The Board has adopted a Code of Conduct for the Directors and also for the Senior Management of the Company and the same has been posted on the website of the Company. There is a system in the organization of affirming compliance with Corporate Governance by the Board Members and Senior Management Personnel of the Company.
52
Bharat Petroleum Corporation Limited
Particulars of Directors including their attendance at the Board /Shareholders’ Meetings during the financial year 2009-10 Academic Qualifications Details of Directorships held in other Companies Memberships held in Committees as specified under Clause 49 of the Listing Agreement Audit Committee Member • Petronet LNG Ltd. • Bharat PetroResources Ltd.
Names of the Directors
Whole-time Directors B.Tech. (Elect.) M.B.A.
Shri A. Sinha Chairman & Managing Director
Attendance out of 5 Board Meetings held during the year and percentage thereof % No. of Meetings Attended 5 100
Attendance at the last Annual General Meeting Attended
Shri S. Radhakrishnan Director (Marketing)
B.Tech. (Mech). M.B.A.
5
100
Attended
Shri S. K.Joshi Director (Finance)
A.C.A. M.B.A.
5
100
Attended
Chairman • Numaligarh Refinery Ltd.. • Bharat Oman Refineries Ltd. • Bharat Renewable Energy Ltd. • Matrix Bharat Marine Services Pte Ltd. Director • Petronet LNG Ltd. • Bharat PetroResources Ltd. Chairman • Indraprastha Gas Ltd. Director • Numaligarh Refinery Ltd. • Sabarmati Gas Ltd. • Bharat Stars Services Pvt. Ltd. • Matrix Bharat Marine Services Pte Ltd. • Oil Industry Board Draught Relief Trust (Trustee) Director • Numaligarh Refinery Ltd. • Bharat PetroResources Ltd. • Bharat PetroResources JPDA Ltd. • Bharat Oman Refineries Ltd. • Bharat Stars Services Pvt. Ltd. Attended
Annual Report 2009-2010 B.Tech. (Mech) 5 100 5 100
Shri R. K.Singh Director (Refineries)
Audit Committee Member • Bharat PetroResources Ltd. • Numaligarh Refinery Ltd. Investors Grievance Committee Member • Bharat Petroleum Corpn. Ltd. • Bharat Oman Refineries Ltd. Audit Committee Member • Numaligarh Refinery Ltd. • Bharat PetroResources Ltd.
Shri S Mohan B.E.(Hons) Mech. Director (Human Resources) M.B.A
Attended
Director • Numaligarh Refinery Ltd. • Bharat Oman Refineries Ltd. • Bharat PetroResources Ltd. • Premier Oil Cachar BV, Chairman • Petronet India Ltd. • Petronet CCK Ltd.
53
54
Academic Qualifications I.A.S. Postgraduate in Economics M Phil., M.P .A. 1* 100 Did not Attend Director • Kinfra Firm Videopark Ltd. Did not Attend Chairman • Transformers and Electricals Kerala Ltd. • Kerala Minerals & Metals Ltd. • Steel Industrial Forgings Ltd. • Malabar Cements Ltd. • Kerala State Elect. Devp Corpn. Ltd. Director • Apollo Tyres Ltd. • Hindustan Newsprint Ltd. • Kinesco Power & Utility Pvt. Ltd. • Premier Tyres Ltd. • Kerala State Industrial Dev.Corpn. • Infrastructure Kerala Ltd. • Indian Rare Earths Ltd. • Al Barakha Financial Services Ltd. 100 Attended Director • Bharat Oman Refineries Ltd. Audit Committee Chairman • Bharat Petroleum Corpn. Ltd. • Bharat Oman Refineries Ltd. Investors Grievance Committee Chairman • Bharat Petroleum Corpn. Ltd. Attendance out of 5 Board Attendance Details of Directorships held in Meetings held during the at the last other Companies year and percentage thereof Annual General Meeting No of Meetings % Attended 2 40 Did not Attend Director • Indian Oil Corporation Ltd. • Hindustan Petroleum Corporation Ltd. Memberships held in Committees as specified under Clause 49 of the Listing Agreement I.A.S. Postgraduate in Chemistry I.A.S Postgraduate in Political Science & International Relations 2* 50 5
Names of the Directors
Bharat Petroleum Corporation Limited
Non-Executive Directors (a) Part-time (Ex-officio) Shri P .K.Sinha Addl. Secretary & Financial Advisor, Ministry of Petroleum & Natural Gas Shri P Kurian ** .H. Secretary, (Investment Promotion), Govt. of Kerala Shri T. Balakrishnan # Addtitional Chief Secretary, Industries & Commerce, Govt.of Kerala
(b) Part-time (Independent) Prof. A.H.Kalro+ B.Tech (Hons), (Elect), M.S., Ph.D (Industrial Engg),
* percentage computed by considering the meetings attended with the total meetings held during his tenure (** Ceased to be a Director w.e.f 15.06.2009) (# Ceased to be a Director w.e.f 29.06.2010) (+Ceased to be a Director w.e.f 28.1.2010)
Names of the Directors
Academic Qualifications
Attendance out of 5 Board Meetings held during the year and percentage thereof %
Attendance at the last Annual General Meeting
Details of Directorships held in other Companies
Memberships held in Committees as specified under Clause 49 of the Listing Agreement
Non Executive Directors (b) Part-time (Independent) 100 Attended
Prof. N. Venkiteswaran
No of Meetings Attended B.A.Economics, 5 A.C.A.
Audit Committee Chairman • Bharat Petroleum Corpon. Ltd.
Ms. Rama Bijapurkar #
B.Sc (Hons.) M.B.A.
2
40
Did not Attend
Audit Committee Member • Mahindra Holidays & Resorts India Ltd. • Mahindra & Mahindra Financial Services Ltd.
Prof. S. K. Barua
M. Tech. Doctorate in Management
4
80
Attended
Director • Dalton Capital Advisors India Pvt. Ltd. • Asit C Mehta Investment Intermediates Ltd. • Virgo Engineers Ltd. Chairperson • CRISIL Risk & Infrastructure Solutions Ltd. Director • Godrej Consumer Products Ltd. • CRISIL Ltd. • AXIS Bank Ltd. • Mahindra Holidays & Resorts India Ltd. • Mahindra & Mahindra Financial Services Ltd. • ICICI Prudential Life Insurance Co. Ltd. • Ambit Holdings Pvt Ltd. Director • Coal India Ltd. • Paras Pharmaceuticals Ltd. • Securities Trading Corporation of India Ltd. • Torrent Power Ltd.
Audit Committee Member • Coal India Ltd. • Paras Pharmaceuticals Ltd. • Sec. Trading Corpn of India Ltd. • Torrent Power Ltd. • Bharat Petroleum Corpon. Ltd. Audit Committee Member • Bharat Petroleum Corpon. Ltd.
Shri I. P S. Anand . 1* 100
NA
Annual Report 2009-2010 B.A.(Hons) (Econ) M.A. (Econ) B.A., LLM 1* 100 NA
Shri Haresh M. Jagtiani
Director • Legalpundits International Services Ltd.
Audit Committee Member • Bharat Petroleum Corpon. Ltd.
* percentage computed by considering the meetings attended with the total meetings held during his tenure (# resigned w.e.f 30.06.2010)
55
3)
Audit Committee BPCL took the initiative to introduce Corporate Governance in the organisation during the year 1996 itself, by constituting an Audit Compliance Committee. The said Committee was reconstituted and renamed as Audit Committee in the year 2000 and the role, powers and functions of the Audit Committee were specified and approved by the Board. As on 31st March 2010, the Audit Committee comprises four Part-time (Independent) Directors. The quorum for the meetings of the Committee is two members. Prof. N Venkiteswaran is the Chairman of the Committee and Prof. S.K.Barua, Shri I P S Anand and Shri Haresh M Jagtiani are the present Members of the Committee. The members possess the requisite knowledge of Finance & Accounting for effective functioning of the Audit Committee. Prof A H Kalro ceased to be a member of the Audit Committee on resignation from the Board w.e.f 28th Jan 2010. Shri I P S Anand and Shri Haresh M Jagtiani, who were appointed as Directors w.e.f 28th Jan 2010 were inducted as Members of the Audit Committee. The Company Secretary acts as the Secretary to the Audit Committee. Director (Finance) is a permanent invitee at the meetings of the Committee and Executive Director (Audit) is actively involved with the meetings of the Audit Committee. They attend and participate at the said meetings. In addition, the other Whole-time Directors also attend the meetings. The Statutory Auditors and Cost Auditors also attend and participate at the meetings, on invitation. The terms of reference of the Audit Committee cover all matters specified in Clause 49 of the Listing Agreement with the Stock Exchanges read with Section 292A of the Companies Act, 1956 and Guidelines on Corporate Governance for Central Public Sector Enterprises. The role and responsibilities of the Committee include the following: 1) 2) 3) 4) Overseeing the Company’s financial reporting process and disclosure of its financial information to ensure that the financial statements are correct, sufficient and credible. Recommending to the Board the fixation of audit fees. Approval of payment to Statutory Auditors for any other services rendered by them. Reviewing, with the Management, the financial statements before submission to the Board for approval, with particular reference to: a) b) c) d) e) f) g) 5) 6) 7) Matters required to be included in the Directors’ Responsibility Statement to be included in the Board’s Report in terms of clause (2AA) of Section 217 of the Companies Act, 1956 Changes, if any, in accounting policies and practices and reasons for the same Major accounting entries involving estimates based on the exercise of judgement by Management Significant adjustments made in the financial statements arising out of audit findings Compliance with listing and other legal requirements relating to financial statements Disclosure of any related party transactions Qualifications in the draft audit report.
Reviewing, with the Management, the quarterly financial statements before submission to the Board for approval. Reviewing, with the Management, performance of the Statutory and Internal Auditors, adequacy of the internal control systems. Reviewing the adequacy of the Internal Audit function, if any, including the structure of the Internal Audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit. Discussing with the Internal Auditors any significant findings and follow up thereon. Reviewing the findings of any internal investigations by the Internal Auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.
8) 9)
56
Bharat Petroleum Corporation Limited
10) Discussing with the Statutory Auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern. 11) Looking into the reasons for substantial defaults in the payment to the Depositors, Debenture Holders, Shareholders (in case of non-payment of declared dividends) and Creditors. 12) Defining the significant related party transactions 13) Carrying out any other function as mentioned in the DPE Guidelines and ‘Terms of reference’ of the Audit Committee Nine meetings of the Audit Committee were held during the financial year on the following dates: 5th May 2009 29th Oct 2009 29th May 2009 5th Jan 2010 28th Jul 2009 27th Jan 2010 25th Aug 2009 18th Mar 2010 24th Sep 2009
Attendance at the Audit Committee Meetings : Names of the members Prof. A.H.Kalro, Chairman (upto 27.1.2010) Prof.N. Venkiteswaran, Chairman (w.e.f 28.1.2010) Prof. S.K.Barua, Member Shri I. P S. Anand, Member . Shri H. M. Jagtiani, Member No of meetings attended 8* 9 8 1* 1* % 100 100 90 100 100 Attendance at the Last Annual General Meeting Attended Attended Attended N.A N.A
* percentage computed by considering the meetings attended with the total meetings held during his tenure The Committee, at its meetings held on 28th Jul 2009, 29th Oct 2009 and 27th Jan 2010 reviewed the Quarterly / Half Yearly / Year to date Financial Statements as on 30th June 2009, 30th September 2009 and 31st December 2009 respectively. Further, Annual Financial Statements as on 31st March 2010 were reviewed by the Committee at its meeting held on 27th May 2010, before the same were submitted to the Board for approval. BPCL has presently three unlisted Indian subsidiary companies i.e. Numaligarh Refinery Ltd (NRL), Bharat PetroResources Ltd (BPRL) and Bharat PetroResources JPDA Ltd (Wholly owned subsidiary of BPRL) and four Foreign Subsidiaries i.e. BPRL International BV (subsidiary of BPRL), BPRL Venture BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia B.V (subsidiaries of BPRL International BV). These Subsidiary Companies do not fall under the category of ‘material non listed Indian subsidiary’ as indicated in Clause 49 III of the Listing Agreement and DPE Guidelines on Corporate Governance. The Financial Statements of the Subsidiary Companies including investments made, if any, are reviewed by the Audit Committee / Board. The performance of the Subsidiary Companies and the minutes of their Board meetings are discussed at the Board meetings of the Company. Any significant transactions or arrangement entered into by the Subsidiary Companies are also reported to the Board of Directors of the Company. BPRL International B.V. and BPRL Ventures B.V were formed in March 2008 and BPRL Ventures Mozambique B.V. in July 2008 and BPRL Ventures Indonesia B.V, in August 2009 in the Netherlands. 4) Remuneration Committee BPCL has a Remuneration Committee to formulate and review policies related to remuneration / perquisites / incentives within the parameters of Guidelines issued by the Government of India. Presently the Remuneration Committee comprises three Independent Directors, Prof. S. K. Barua, Chairman and Prof.Venkiteswaran, Smt. Rama Bijapurkar (since ceased to be a Director) and one Part-time (Official) Director, Shri P K. Sinha as . Members with Director (HR) and Director (Finance) being Invitees. During the financial year 2009-10 one meeting was held on 18.9.2009. Annual Report 2009-2010
57
4A) Remuneration to Directors BPCL being a Government Company, appointment and remuneration of Whole-time Directors are determined by the Government through the Ministry of Petroleum & Natural Gas. The Part-time (Ex officio) Directors do not receive any remuneration from the Company. The Part-time (Independent) Directors received sitting fees of Rs.20,000 for each Board/Audit Committee meeting attended by them and Rs. 10,000 for each of the other Committee meetings during the year 2009-10. a) Details of remuneration paid / payable to the Whole-time Directors during the financial year 2009-10 are as follows :Names of Directors All elements of remuneration Details of fixed component packages of the Directors. i.e. and performance linked salary, benefits, bonus, pension etc. incentives Rs. 3,278,168 Fixed Compensation Rs. 2,292,214 /PI / PLIS Rs. 958,325/Recoverable Advance (Rs. 270,000) Fixed Compensation Rs.1,906,676/PI / PLIS Rs.641,153/Recoverable Advance (Rs. 270,000) Fixed Compensation Rs.2,050,393/PI / PLIS Rs.660,973/Recoverable Advance (Rs. 270,000) Fixed Compensation Rs.2,087,105/PI / PLIS Rs.660,973/Recoverable Advance (Rs. 270,000) Fixed Compensation Rs.2,137,789/PI / PLIS Rs. 4,08,843/Recoverable Advance (Rs. 270,000) Other Benefits
Shri Ashok Sinha
Rs. 297,629
Shri S. Radhakrishnan Rs. 2,828,796 Director (Marketing)
Rs.550,967
Shri S.K.Joshi Director (Finance)
Rs. 2,928,335
Rs.486,969
Shri R.K.Singh Director (Refineries)
Rs. 3,391,095
Rs.913,017
Shri S Mohan Director (Human Resources)
Rs. 2,460,090
Rs.183,458
PI : Productivity Incentive PLIS : Performance Linked Incentive Scheme Service Contracts : Five years which is renewable for further similar periods. Notice period : Three months BPCL has not introduced any Stock Options Scheme. None of the Non-Executive Directors hold any share in BPCL. During the year, the Part-time (Independent) Directors received sitting fees for attending the meetings of the Board / Committees as follows: Name of Director Prof. A.H.Kalro (up to 28.01.2010) Prof. N.Venkiteswaran Prof. S.K.Barua Smt R. Bijapurkar Shri I P S Anand (w.e.f. 28.01.2010) Shri H M Jagtiani (w.e.f. 28.01.2010) Amount (Rs.) 3,10,000 3,00,000 2,80,000 50,000 40,000 40,000
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Bharat Petroleum Corporation Limited
5)
Investors’ Grievance Committee The Committee comprising Prof. N.Venkiteswaran as Chairman, and Shri S. K. Joshi, Director (Finance) as member, monitors the Shareholders’ / Investors’ complaints and redressal of their grievances. Prof. A.H.Kalro ceased to be Chairman of the Committee on resignation from the Board with effect from 28.1.2010 and Prof. N.Venkiteswaran, was inducted as Chairman of the Investors’ Grievance Committee. The Committee, at its meeting held on 5th Jan 2010, reviewed the services rendered to the Shareholders / Investors including response to complaints / communications and expressed its satisfaction on the performance of the Investor Relations Department of the Company. The Company Secretary acts as the Compliance Officer for matters related to investor relations. During the year, 10 complaints were received from investors through SEBI, NSE which were attended to and resolved on priority basis. All valid share transfer requests received during the year were duly processed and approved within the stipulated period of 30 days. There was no share transfer request in physical form pending as on 31st March 2010.
6)
Annual General Meetings during the last three years The details of these meetings are given below. Date and Time of the Meeting 54th Annual General Meeting 19th September 2007 at 10.30 a.m. Venue Y.B. Chavan Auditorium Yeshwantrao Chavan Pratishthan, General Jagannath Bhosale Marg, Mumbai 400 021 Y.B. Chavan Auditorium Yeshwantrao Chavan Pratishthan, General Jagannath Bhosale Marg, Mumbai 400 021 Rama Watumull Auditorium Kishinchand Chellaram (K.C.) College, 124, Dinshaw Wacha Road, Churchgate, Mumbai-400 020
55th Annual General Meeting
22nd September 2008 at 10.30 a.m.
56th Annual General Meeting
8th September 2009 at 10.30 a.m.
During the year 2008-09, in accordance with Section 192A of the Companies Act, 1956, read with Companies (Passing of Resolution by Postal Ballot) Rules, 2001, Postal Ballot Notice dated 7th July, 2008 containing Special Resolution for amendment of Object Clause of the Company’s Memorandum of Association by inclusion of certain new Objects under Section 17(1) of the Act and for commencement of new business under Section 149(2A) of the Act, was circulated to the Shareholders of the Company. The Company appointed Shri B.V.Dholakia, a Practising Company Secretary, M/s Dholakia & Associates, Mumbai, as Scrutinizer for conducting the Postal Ballot process. Out of a total of 4042 ballots received for 250947095 number of equity shares, 539 ballots for 83173 equity shares representing 0.03 % were invalid, 3446 ballots for 250856139 equity shares representing 99.97 % of votes received, voted in favour of the resolution, 57 ballots for 7783 shares representing 0.00 % dissented to the resolution. The Special Resolution was accordingly passed by the requisite majority. The result of the Postal Ballot was announced on 22nd August 2008. The procedure prescribed under Section 192A of the Companies Act, 1956 read with the Companies (Passing of the Resolution by Postal Ballot) Rules, 2001 has been followed for the Postal Ballot conducted during the year for the resolution mentioned above. The Special Resolution for fixation of the remuneration of the Statutory Auditors was approved by the Shareholders at the Annual General Meeting held on 18th December 2006. No special resolution requiring a postal ballot was proposed last year. No special resolution requiring a postal ballot is being proposed for the ensuing AGM.
Annual Report 2009-2010
59
7)
Brief Resumes of Directors seeking appointment / re-appointment a) Shri S. K. Joshi Shri S. K. Joshi, Director (Finance), is a member of the Institute of Chartered Accountants of India and M.B.A. from the University of Hull, United Kingdom. Prior to his appointment as Director (F), he was responsible for the overall fund management, risk management, corporate accounts and budgeting. He was also closely associated with key initiatives undertaken by the Company including implementation of SAP and drawing up of the Corporate Credit Policy and Commodity Risk Management Policy. Besides, Shri Joshi was closely associated with key initiatives impacting the Oil Industry in India. He was a member of the Study Group formed for the purpose of preparing a Long Term Perspective Plan for the Oil Industry in India which had come out with the report titled ‘Hydrocarbon Perspective:2010 – Meeting the Challenges. He was awarded the ‘Business Today Best CFO’ under the category “Best CFO in a PSU”. for the year 2008-09. In addition to BPCL, he also holds the position of Director in Numaligarh Refinery Ltd., Bharat Oman Refineries Ltd, Bharat PetroResources Ltd., Bharat PetroResources JPDA Ltd. and Bharat Stars Services Pvt. Ltd. Shri S.K.Joshi was appointed as Director (Finance) on 8th March 2006. He is liable to retire by rotation at the ensuing AGM and being eligible, offers himself for re-appointment. b) Shri R.K.Singh Shri R.K.Singh, Director (Refineries) is a Mechanical Engineer and has held various assignments, both in the Refinery and Marketing divisions. He has attended a Management Development Programme at IIM, Ahmedabad, Materials Management Programme at ASCI, Hyderabad and Logistics Management Course at University of Tenesse in U.S.A. He has also headed a group constituted for transfer of technology of LPG equipment from Denmark / Italy and he was closely associated with the World LPG Association as an active member of their subcommittees. In addition to BPCL, he also holds the position of Director in Numaligarh Refinery Ltd., Bharat Oman Refineries Ltd. and Bharat PetroResources Ltd. Shri R. K. Singh was appointed as Director (Refineries) on 8th March 2006. He is liable to retire by rotation at the ensuing AGM and being eligible, offers himself for re-appointment. c) Shri I. P S. Anand . Shri I.P Anand has had nearly four decades of professional experience in various key positions in the .S. Government of India, including as Development Commissioner, Special Economic Zone (SEZ), Noida (Ministry of Commerce) and General Manager on the Indian Railways (Ministry of Railways). Shri Anand holds Graduate and Masters degrees in Economics from St. Stephen’s College, Delhi University. His educational qualifications also include visiting H.H. Humphrey Fellow, Massachusetts Institute of Technology (USA) and Strategic Management Programme, Manchester Business School (UK). He has also been involved in the Arbitration process as Sole Arbitrator and is a Fellow of the Indian Council of Arbitration. Besides, he is also a Fellow of Chartered Institute of Logistics & Transport and Founding Member, Centre for Transport Research and Management (CTRAM). Shri I. P S. Anand was appointed as Additional Director w.e.f. 28.1.2010 by the Board of Directors. Being an . Additional Director, he holds office up to the date of the Annual General Meeting. The Company has received a notice under section 257 of the Companies Act, 1956 from a Member proposing his name as Director of the Company. d) Shri Haresh M. Jagtiani Shri Haresh M. Jagtiani is a Master of Law and founder of the firm, M/s. Haresh Jagtiani & Asssociates. He has been practising as a lawyer and was designated as a Senior Advocate. He is primarily a litigator who appears regularly before the Supreme Court of India and the High Court of Bombay. He has appeared in various international arbitrations.
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Bharat Petroleum Corporation Limited
He holds directorship in Legalpundits International Services Pvt. Ltd and is also a member of the Board of Trustees of the ING Savings Trust. Shri Haresh M Jagtiani was appointed as Additional Director w.e.f. 28.1.2010 by the Board of Directors. Being an Additional Director, he holds office up to the date of the Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956 from a Member proposing his name as Director of the Company. e) Shri Alkesh Kumar Sharma Shri Alkesh Kumar Sharma, Secretary (Investment Promotion), Government of Kerala, is a senior IAS officer. In addition to being on the Board of BPCL, he also holds Directorship in other companies including Kerala State Industrial Development Corporation Ltd, Geojit BNP Paribas Financial Services Ltd, Brahmos Aerospace Thiruvananthapuram Ltd, Infrastructures Kerala Ltd, Indian Rare Earths Ltd Kerala Minerals & Metals Ltd, etc., Shri Alkesh Kumar Sharma was appointed as Additional Director w.e.f. 30.6.2010 by the Board of Directors. Being an Additional Director, he holds office up to the date of the Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956, from a Member proposing his name as Director of the Company. f) Prof. N. Venkiteswaran Prof. N. Venkiteswaran is a Chartered Accountant, Gold medallist in the postgraduate management accountancy examination conducted by ICAI and Graduate in Economics from the Madurai (Kamarja) University. Presently, he is a Professor in Indian Institute of Management, Ahmedabad. He has extensive experience of about 18 years in the finance, accounting and business planning functions in well known companies. He is also a Director on the Boards of Dalton Capital Advisors India Pvt Ltd., Asit C. Mehta Investment Intermediates Ltd. and Virgo Engineers Ltd. Prof. N. Venkiteswaran was reappointed on the Board w.e.f. 16.7.2010 by the Board of Directors. The Company has received a notice under Section 257 of the Companies Act, 1956 from a Member proposing his name as Director of the Company. 8) Disclosures and Compliance Except where the Company has incurred expenses on behalf of joint ventures as co-promoter and the same are recoverable from the joint venture companies, there were no transactions of material nature that may have potential conflict with the interests of the Company at large. The details of ‘Related Party Disclosures’ are shown in Notes forming part of Accounts. BPCL has been adhering to the provisions of the laws and guidelines of regulatory authorities including SEBI, and covenants in the agreements with the Stock Exchanges and Depositories. There was no instance of noncompliance of any provisions of law, guidelines from regulatory authorities and matters related to capital markets during the last three years except as stated in the following paragraph: The Company has complied with all mandatory requirements of Clause 49 of the Listing Agreement and DPE Guidelines on Corporate Governance except provisions relating to the composition of the Board of Directors with respect to the number of Independent Directors, for which the Government of India is taking necessary action, as BPCL is a Government Company. There are no items of expenditure in the books of accounts, which are not for the purpose of Business. Further no expenses were incurred which were personal in nature and incurred for the Board of Directors and Top Management. Administrative & Office expenses and Financial expenses constitute 0.52% and 0.76% of the total expenses respectively for the financial year 2009-10. The Company has fulfilled the following non-mandatory requirements as prescribed in Annexure I D to Clause 49 of the Listing Agreements with the Stock Exchanges : a) Independent Directors appointed by the Government of India have initial tenure not exceeding 3 years. No Independent Director has served in aggregate a period of nine years, on the Board of a Company. Annual Report 2009-2010
61
b) c)
The Company has adopted requirements with regard to sending of quarterly / half yearly financial results to the Shareholders of the Company. The Statutory Financial Statements of the Company are unqualified.
The Chairman & Managing Director and the Director (Finance) have certified to the Board in accordance with Clause 49 V of the Listing Agreement and DPE Guidelines on Corporate Governance pertaining to CEO / CFO Certification for the Financial Year 2009-10. The Company has also laid down a Risk Management Policy and procedures thereof for periodically informing the Board Members about the risk assessment and procedures for minimizing risks. BPCL nominates Directors for relevant training programmes / seminars conducted by reputed Institutions / SCOPE. Further, strategy workshops are held to deliberate strategic issues, policy decisions etc. BPCL has also framed the Whistle Blower policy. 9) Code of Conduct, Procedure and Disclosures for Prevention of Insider Trading and Code of Corporate Disclosure Practices Pursuant to the requirements of SEBI (Prohibition of Insider Trading) Regulations, 1992 as amended, the Company has adopted a ‘Code of Conduct, Procedure and Disclosures for Prevention of Insider Trading in the Securities of Bharat Petroleum Corporation Limited’ and ‘Code of Corporate Disclosure Practices’. The Company Secretary has been appointed as the Compliance Officer for implementation of the said Codes. 10) Means of Communication of Financial performance In order to give wider publicity and to reach the Shareholders and other investing public across the nation, the halfyearly and quarterly results were published in various editions of leading newspapers having wide circulation such as The Economic Times, The Times of India, etc. Reports on Limited Review of the Financial Results for the quarters ended 30th June 2009, 30th September 2009, 31st December 2009 were obtained from the Auditors of the Company and filed with the Stock Exchanges. The Financial Statements for the first quarter ended June 2009, half year ended September 2009 and third quarter ended December 2009, were sent to all Shareholders at their registered addresses. Periodical financial performance of the Company is also displayed on the website of the Company at www.bharatpetroleum.in and on Corporate Filing and Dissemination System www.corpfiling.co.in website as per the provisions of the Listing Agreement. 11) Management Discussion & Analysis Report A detailed chapter on Management Discussion & Analysis is attached to the Directors’ Report. 12) Investors’ Service Centre BPCL’s Investors’ Service Centre (ISC), by Data Software Research Co. Pvt. Ltd., our Share Transfer Agent, has been functional at the registered office of the Company at the following address: Data Software Research Co. Pvt. Ltd. (DSRC) C/o. Bharat Petroleum Corporation Ltd. Bharat Bhavan No.1, Ground Floor, Ballard Estate, Mumbai 400 001 Tel. No. 022 – 22713170 Fax. No. 022 – 2271 3688 Email : [email protected] This centre has been effectively catering to the needs of the Shareholders / Investors located in western region. It coordinates with DSRC based at Chennai and facilitates our efficient investor complaint redressal mechanism. For any assistance/information on share related matters such as transfer / transmission of shares, issue of duplicate share certificates, dividend etc., or for redressal of any grievance in this regard, Shareholders / Investors located in western region may get in touch with ISC at the above address. Further, BPCL has designated an exclusive e-mail ID : [email protected] for the purpose of communication from Shareholders including investor complaints.
62
Bharat Petroleum Corporation Limited
13) General Shareholders’ Information SEBI has included BPCL shares for compulsory trading in dematerialised form. Annual General Meeting Date, Time and Venue Financial Calendar Friday, the 24th September 2010, at 10.30 a.m. at Rama Watumull Auditorium at Kishinchand Chellaram College, 124, Dinshaw Wacha Road, Churchgate, Mumbai-400 020 BPCL follows the financial year from April to March. The Unaudited Results/ Audited Results for the four quarters were taken on record by the Board and published on the following dates : Quarter Date of Board Date of Publication Ended Meeting Apr-Jun 2009 28th Jul, 2009 29th Jul, 2009 Jul -Sep 2009 29th Oct, 2009 30th Oct, 2009 Oct-Dec 2009 28th Jan, 2010 29th Jan, 2010 Audited Results 27th May, 2010 28th May, 2010 for the year 2009-10 The Board has recommended dividend @ Rs. 14 per share of Rs. 10 each for consideration of the Shareholders at the ensuing Annual General Meeting. If approved by the Shareholders, the same will be paid on or before 4.10.2010. Monday, 13th September 2010 to Friday, 24th September 2010, both days inclusive, for the purpose of determining the names of Shareholders / Beneficial Owners who would be entitled for dividend. The Company’s shares are listed on the following Stock Exchanges: Name of Stock Exchange Bombay Stock Exchange Ltd Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 002. National Stock Exchange of India Ltd Exchange Plaza, 5th Floor, Bandra Kurla Complex, Bandra (E), Mumbai 400 051. Security Code/Symbol 500547
Dividend and Payment Date
Date of Book Closure
Listing on Stock Exchanges & Security Code
BPCL
The Listing Fees have been paid for the year 2010-11 to both the above Exchanges. ISIN Number For National Securities INE029A01011 Depository Ltd (NSDL) & Central Depository Services India Ltd (CDSL) for equity shares Market Price Data : High, Low during each month in the last financial year Performance in comparison to broad based indices i.e. BSE100 Registrar and Transfer Agents Please see Annexure I Please see Annexure II Shri H.Krishnamoorthy, General Manager (Operations), Data Software Research Co. Pvt. Ltd. ‘Sree Sovereign Complex’, 22, 4th Cross Street Trustpuram, Kodambakkam, Chennai, Tamil Nadu - 600 024 Ph: +91-44-2483 3738 / 2483 4487 Fax: 91-44-2483 4636 Email : [email protected] Annual Report 2009-2010
63
Share Transfer System
A Committee comprising two Whole-time Directors considers the requests for transfer / transmission of shares, dematerialisaton of shares etc. A Committee comprising four Directors i.e. two Whole-Time Directors and two Part-time Directors considers request for issue of share certificates. Transfers in physical form are registered after ascertaining objections, if any, from the transferors; and no valid transfer applications are kept pending beyond the stipulated period of thirty days. Requests for dematerialization of shares are processed and confirmation is given to the respective depositories viz. NSDL and CDSL within 15 days. Shareholder 1) 2) 3) 4) 5) 6) 7) 8) 9) Government of India Government of Kerala BPCL Trust for Investments in Shares Unit Trust of India Life Insurance Corporation of India Other Financial Institutions/Banks/Mutual Funds Foreign Institutional Investors Private Corporate Bodies Non Resident Indians/Overseas Corporate Bodies No. of. Shares % of Held Holding 198,600,060 3,111,111 33,728,737 4,339,441 38,207,372 27,986,771 28,828,302 15,812,256 306,477 1,302,462 9,319,135 361,542,124 54.93 0.86 9.33 1.20 10.57 7.74 7.97 4.37 0.09 0.36 2.58 100.00
Distribution of shareholding as on 31st March 2010
10) Employees 11) Indian Public TOTAL
Distribution of shareholding on number of shares held by Shareholders and shareholding pattern are given in Annexure III. Dematerialization of shares and liquidity After merger of KRL with BPCL, out of the shares held by the Shareholders other than the Government of India, Government of Kerala, BPCL Trust for Investment in Shares, 98.96% are held in dematerialised form as on 31st March, 2010. The Company has not issued any GDRs /ADRs/ Warrants etc. Plant Locations Mumbai Refinery Kochi Refinery Lubricant Plants : : : Bharat Petroleum Corporation Limited Mahul, Mumbai 400 074 Bharat Petroleum Corporation Limited Ambalamugal, Kochi 682 302 Bharat Petroleum Corporation Limited Wadilube Installation, Mallet Road, Mumbai – 400 009 Bharat Petroleum Corporation Limited 24, Parganas, Budge – Budge 743 319 Bharat Petroleum Corporation Limited 35, Vaidyanatha Mudali street, Tondiarpet, Chennai-600 081.
64
Bharat Petroleum Corporation Limited
Address for Correspondence
The Secretarial Department Bharat Petroleum Corporation Ltd Bharat Bhavan No.I, Currimbhoy Road, Ballard Estate, Mumbai, Maharashtra - 400 001. Tel No. 022 – 2271 3170 / 2271 3435 Fax No. 022 – 22713688 Email : [email protected]
General Manager (Operations), Data Software Research Co. Pvt. Ltd. ‘Sree Sovereign Complex’, 22, 4th Cross Street, Trustpuram, Kodambakkam, Chennai, Tamil Nadu - 600024 Ph: +91-44-24833738 / 24834487 Fax: 91-44-2483 4636 Email : [email protected]
Annexure I
BPCL MARKET PRICE DATA
Month(s) (April 2009 March 2010) Bombay Stock Exchange Ltd High (Rs. per share) 398.00 515.90 492.00 494.95 535.00 600.00 575.80 595.80 648.00 658.00 613.00 566.80 Low (Rs. per share) 361.35 348.70 407.00 426.55 460.00 506.55 488.20 498.25 582.05 527.50 545.00 502.00 Monthly Volume (No. of Shares) 1254135 4608484 4174726 3613848 2825239 3559235 1940422 2061042 1960486 1890807 3176433 2867102 National Stock Exchange of India Ltd High (Rs. per share) 399.35 516.40 492.00 499.00 544.35 601.20 576.00 596.20 645.50 657.60 613.00 571.00 Low (Rs. per share) 361.35 348.60 408.00 415.90 455.50 507.00 481.80 497.50 581.40 527.05 544.80 502.25 Monthly Volume (No. of Shares) 11113083 24601213 23746060 15930224 15847200 17141050 11024352 11566465 11852866 12216050 15228306 13787841
April May June July August September October November December January February March
MARKET CAPITALISATION / SHARES TRADED DURING 1ST APRIL 2009 TO 31ST MARCH 2010
BSE No. of Shares traded No. of Shares Highest Share Price (Rs.) Lowest Share Price (Rs.) Closing Share price as on 31st March 2010 Market Capitalisation as on 31st March 2010 (Rs. in Crores) 33931959 361542124 (on 4.1.2010) 658.00 (on 11.5.2009) 348.70 516.70 18681 NSE 184054710 361542124 (on 4.1.2010) 657.60 (on 11.5.2009) 348.60 518.05 18730
Annual Report 2009-2010
65
Annexure II
Annexure III
DISTRIBUTION OF SHAREHOLDING AS ON 31 MARCH 2010 No. of Equity Shares held No. of Shareholders UPTO 5000 84983 5001 TO 10000 124 10001 TO 50000 170 50001 TO 100000 49 100001 TO 500000 86 500001 TO 1000000 20 1000001 TO 2000000 17 2000001 TO 3000000 4 3000001 and above 7 TOTAL 85460
st
No. of Shares 10261279 913515 3826456 3587941 20478508 14139084 22740886 9620320 275974135 361542124
% of Total 2.84 0.25 1.06 0.99 5.67 3.91 6.29 2.66 76.33 100.00
66
Bharat Petroleum Corporation Limited
VOLUNTARY GUIDELINES 2009 OF MINISTRY OF CORPORATE AFFAIRS BPCL being a Central Public Sector Enterprise (CPSE), some of the good practices enunciated in the Guidelines are in place while others are under consideration for implementation to help in achieving the highest standards of Corporate Governance. Board of Directors Being a CPSE, Government of India appoints / nominates the Chairman and Managing Director, Functional Directors and other Part-Time Directors as per its Guidelines on the composition of Board of CPSEs. BPCL issues a formal letter informing induction into the Board along with the Annual Report, Insider Code, Code of Conduct, Disclosure Forms etc. Independent Directors do interact with the Management as and when required. BPCL being a CPSE, remuneration is decided by the Govt. of India and it has a clearly laid down remuneration policy and performance related packages. Part-time non-official Directors are paid only sitting fees as per the provisions of the Companies Act, 1956. Responsibilities of the Board Suitable familiarization process, methods for skills enrichment and quality decision making are in place for Directors. The Company has laid down an Enterprise Risk Management Policy and Procedures. Systems are in place to ensure compliance with laws. Audit Committee of Board The constitution, enabling powers and role and responsibilities of the Audit Committee are as enumerated and being followed. Auditors / Secretarial Audit / Whistle Blower Being a CPSE, Auditors are appointed by the Comptroller and Auditor General of India and they are rotated periodically by C&AG. The Audit Committee discusses with the Statutory Auditors about the Scope of Audit. Clarity exists for a proper and accountable audit. BPCL has a well established independent Internal Audit department headed by a senior management personnel. Secretarial Audit by a Competent professional is under consideration for implementation. BPCL has already framed a Whistle Blower Policy.
Annual Report 2009-2010
67
AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE
To The Members of Bharat Petroleum Corporation Limited We have examined the compliance of conditions of Corporate Governance by Bharat Petroleum Corporation Limited for the year ended 31st March, 2010, as stipulated in Clause 49 of the Listing Agreement of the said Company with Stock Exchanges. The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to a review of the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the mandatory requirements of Corporate Governance as stipulated in Clause 49 of the above mentioned Listing Agreement except for non-compliance of Clause 49 (I) (A) (ii) relating to the number of Independent Directors on the Board of Directors of the Company. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company. For and on behalf of B.K.KHARE & CO. FR No: 105102W Sd/Padmini Khare Kaicker Partner Membership No: 44784 Dated : 10th August, 2010 For and on behalf of K.VARGHESE & CO. FR No:004525S Sd/K.Varghese Partner Membership No: 20674
AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE
To The Members of Bharat Petroleum Corporation Limited We have examined the compliance of conditions of Corporate Governance by Bharat Petroleum Corporation Limited for the year ended 31st March, 2010, as stipulated in Guidelines on Corporate Governance for Central Public Sector Enterprises 2010 (the Guidelines) issued by Department of Public Enterprises of Ministry of Heavy Industries and Public Enterprises, Government of India. The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to a review of the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the requirements of Corporate Governance as stipulated in the Guidelines except for non-compliance of Clause 3.1.4 relating to the number of Independent Directors on the Board of Directors of the Company. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company. For and on behalf of B.K.KHARE & CO. FR No: 105102W Sd/Padmini Khare Kaicker Partner Membership No: 44784 Dated : 10th August, 2010 For and on behalf of K.VARGHESE & CO. FR No:004525S Sd/K.Varghese Partner Membership No: 20674
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Bharat Petroleum Corporation Limited
ANNEXURE TO THE DIRECTORS’ REPORT ANNEXURE C
Particulars of Employees under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 for the year ended 31st March 2010 Employed for part of the financial year and in receipt of remuneration of more than Rs.2 lakhs per month
Sr. Name No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 Agarwal D K Aggarwal Anoop Kumar Ankush B Damgude Arumuganainar S Arun Inba Kumar E B N Srinivasan Babu Mammen Bag Dilip Kumar Basheer Ahmed S I Baveja G S Bhaskaran Pillai P Bhatkar Mangesh Bhutkonwar Alois C D Mhatre Chandekar S T Chandramohan S Charles Paul Charles S M Charvethia T S Chhetri Lalsingh Garibdas Damodaran C K Dandekar P A Das Dilip Kumar Das Manoranjan David C M Deshbhratar Vn Dhadke A N Dharmalingam Karuppan Dr Dalvi G.Shenbagam Gachkal R M Gangadharan K K George Varghese Ghosh Debasish Girish Kumar Gohil Trikam K Golatkar D V Gopalan Nair N K Gopinathan M K Gujral G S Gurnani N R Hoshiar Singh Hukam Singh J Anthony Dassan Jagadeesh R Jagadesh R Jana J Johnykutty K C Jose Jaya (Ms) K P Jayaram Kadam S G Kakaria Kuldeep B Kanchwalla S F Kanjilal S Kannan S Karunakaran M K Kaul M K Khetale Balkrishna T Krishna Varier P K Kurian M L Yadav Reddy L. D. Manjhi Lad Chandrakant Gangaji Lalji Ram M M Farooqui Majhi Jagannath Mallick P K Mathew P D Mathur S N Misra Budhadeo Mohamed Rizwan Ah Mohan R Qualification B.Sc. (Engg), P.G. Dip. B.E. B.Sc. B.Sc. B.Tech. SSC SSC HSC M.Sc. B.E. SSC B.Com. 9th Std 9th Std B.Sc., B.E. B.Sc,ACA Diploma, P.G. Diploma HSC B.E. HSC SSC B.E. B.A. 9th Std SSC B.E. M.Sc. B.A. Below 7th Std. SSC B.E. SSC SSC B.Com. B.E. 11th Std HSC SSC SSC Diploma in Mgt,B.Sc. B.E. B.A. SSC SSC B.Tech, M.B.A. Diploma,B.E. B.E. HSC B.A. 9th Std B.Com. B.Sc,M.A. Diploma,B.E. B.E,P.G Diploma P.G Diploma,B.E. Diploma B.E,B.A. 9th Std SSC SSC HSC SSC 11th Std SSC HSC 8th Std B.E. Diploma in Engg ACA,ACS,B.Com. SSC B.Tech. B.Com,M.Com. Age 52 49 54 60 28 49 60 60 60 60 60 46 60 60 44 53 46 60 60 60 60 60 60 60 60 26 60 60 59 60 36 60 60 48 28 55 54 60 60 52 60 44 60 60 39 35 32 60 56 60 60 60 60 54 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 30 53 Date of Experience commencement of (No. of employment years) Manager, LPG Reticulated System, HQ 04-05-1981 30 DGM Engg-Mum Manmad Manglia Extn Proj 18.06.1984 27 C/H Craftsman 28.02.1980 30 Regional Ethanol Manager, South 21-05-1980 37 Senior Engineer (OM & S) 24.04.2006 4 Operator I (Field) 17.10.1988 21 Senior HEO/Mechanic 07.01.1985 25 Technician I (Boiler) 20.03.1984 26 Sr. Manager Installation, Karur 29-05-1980 37 GM (Health, Safety & Environment) 23.12.1982 39 Leading Fireman (FAS/PHO) 24.11.1986 23 Sales Assistant Lubricants 12.12.1994 15 Security Guard (P) 13.08.1986 24 Cook III 01.04.1993 17 Manager (F&S) 23.04.1991 19 GM (Finance) Refinery 11-11-1983 28 Senior Manager(MES) 01.07.1992 18 Senior HEO/Mechanic 17.05.1977 33 DGM (Advisory Services) 28.05.1984 36 Sales Assistant (Lubricants) 03.06.1988 40 Operator-A(S&OM) 15.02.1985 25 GM (P & AD) Lubes 03.08.1988 39 Assistant I 12.12.1985 24 Security Naik(P) 17.05.1984 26 Store Keeper 07.01.1985 25 Sr. Maint. Officer (Mech)-ARU 01.03.2006 4 Manager (Marketing Corporate) 02-06-1980 37 Sr Manager Incharge Chennai DU 11-05-1981 39 GO (Services) 01.04.1993 17 Security Guard I 11.07.1988 41 Dy. Manager (E&C) 11.08.1997 13 Operator-A (S&OM) 01.12.1988 21 Security Sergeant-VII 04.10.1984 26 Dy. Manager Railway Claims (Retail) 06.09.1983 30 Senior Engineer (OM & S) 03.04.2006 4 Superintendent 03.01.1978 32 Sr. Process Officer (CDU) 17.09.1979 31 General Clerk 12.01.1987 23 Driver (HV)-VI 20.07.1983 27 TM (Indl), Ahmedabad 01-09-1982 30 DGM On Deput To BORL Mumbai 02.07.1982 38 Assistant I 15.06.1992 26 Operator (P)(Field) 12.03.1990 20 H.F.C II 02.06.1986 40 Senior Engineer (Manufacturing) 01.10.1999 10 Sr. Manufacturing Engineer On Deptn 01.10.1999 10 Sr Officer Process(FCCU) 05.08.2002 8 Operator-B(S&OM) 04.11.1985 24 Secretary 17.04.1984 35 Security Guard I 21.08.1989 41 Dy. Manager (Ops) I/C, Verna Depot 05-05-1981 36 Manager, Mathura DU 14-05-1986 37 DGM (Procurement & Contract Services) 23.04.1984 37 Chief Manager (P&Cs) 31-12-1985 31 DGM (P & CS) 25.01.1990 20 Security Sergeant-V 14.10.1993 17 GM (Engg. & Advisory Services) 29.09.1986 39 H.F.C II 30.10.1984 41 Manager (Maintenance) 17.08.1971 38 Senior Leading Fireman 24.02.1986 24 Operator (P) (Field) 02.05.1986 40 Attendant (P)(Services) 01.07.1991 40 Assistant II 01.12.1978 39 H.V.D (P) 28.11.1980 31 Fire Opr. C/H 31.10.1980 29 Security Guard (P) 01.09.1986 24 Chief Manager Real Estate 28.06.1982 28 Operator-A(S&OM) 01.04.1984 26 General Manager 05-06-1984 39 L.V.D. (P) 27.04.1981 29 Sr. Officer Aromatics 05.08.2002 8 Manager In-Charge, Chennai DU 10.08.1984 35 Designation / Nature of Duties Total Remuneration Rs. 2644961.92 2148193.77 2216805.00 2528607.28 816725.00 1031341.00 561047.00 1045172.00 2262634.30 4163124.00 634328.00 594514.00 828208.00 388933.00 983734.00 2410829.92 1005910.00 1357564.00 4452965.00 891539.00 408031.00 2994023.00 1345821.00 1021783.00 804678.00 714492.00 3368873.05 2564831.12 813795.00 787764.00 867104.00 967962.00 1127974.00 2805217.00 661539.00 1648032.00 2428613.00 832504.00 556282.00 2759828.27 3827005.00 517941.00 769796.00 376717.00 826866.00 981132.00 966526.00 1409384.00 1838208.00 454213.00 1597656.25 2637094.34 3842367.00 2403486.02 2217172.00 324740.00 4519194.00 843910.00 2065384.00 1206867.00 435355.00 1036492.00 1185960.00 339434.00 1165871.00 1031989.00 2170306.00 859364.00 2660613.28 835049.00 546631.00 2921093.00 Particulars of Last Employment NBC Bearing NFL The Indian Standard Metal Co. Ltd. Indian Posts & Telegraph The Tuticorin Co-operative Bank Ltd. Indian Army Joint Electrical Works Telecommunication BHEL Indian Air Force
DCM Tata Oil Mills Company Bristol Boat Ltd. Fertilizer Corporation Corps of Signal Indian Army BM Thakkar & CO Damodar Valley Corporation Indian Army Services Indian Army SE & MT Wing Indian Navy Indian Army Indian Army Indian Air Force Tega India
Indian Army Naval Armament Depot Greaves Foseco EIL General Reserve Engineer Force Air Force Tata Chemicals Ltd. Enviro Care Systems Indian Navy Food & Nutrition Board Army Air India Super Parts (P) Ltd. Richardson & Cruddas Hindustan Petrolium Coramandal Fert Ltd. Indian Army FCI / RCF Indian Army Indian Navy Indian Army Comm. & Techni. Training Institute Ganesh Steel NTPC Civil Defence Mobile Column Indian Army Services IFFCO Indian Air Force AWHO Indian Army Services Pallava Engineering Works
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69
Sr. Name No. 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 Mohanan Chettiar V Mohanan M M Mohanan P K More Dnyandev Atmaram Muthuselvan P Naik G R Nandakumaran K Nanthur Neena A (Ms) Naphade Devidas Shivaram Narendra Prakash Singh Narsale Indrasen B Nirmala D Pachaimuthu A Pappachan P V Parkash Chander Patil P G Paul Rajat Kanti Peter Purti Pramanick Paresh Chandra Prasad Prabhu Lal Prem Kumar M Punit Gupta Purnima Wadhwani Radhakrishnan G Radhakrishnan K Rajalingam M Rajappan Nair P N Ram Avtar Ram Murare Gautam Ramakrishnan M Raman Sreedharan Nair Ramesh P Abnawe Rao S N Ratan Ajay Ray Ranjan Sadasivan Nair R Sadat Kamjibhai Jodaji Sardar Nemai Chand Sarkar A R Sathrajith P R S B Shelke Sebastian K P Sengupta Amitabha Shaik Ahmed Basha Shaiksab Sham Singh Shankaranarayanan T N Siddiqui M A Singh Tejinder Sivaprasad P P Sn Poojari Sreedharan P Srinivasa Rao N Srivastava P L Subrajit Kumar Sudhir Kumar Vishnoi Suresh Kumar K S Suresh M Surve Jagdish Narayan Suryaprakasa Rao M Suyambu A Tejasvi B L Thomas K J Trina Majumder Udai Singh Ujjawal Kumar Upadhyay A Vaidehi J Vasanth N Veeriah Baskaran Velayudhan P M Venu T Venugopalan K P Vijayan P R Viswakumar N Waghela Chandrakantkrishn Yogendraprasad P Pandey
Qualification SSC SSC B.Sc. 7th Std P.G Diploma,B.E. Diploma Diploma in Engg 11th Std 9th Std B.Tech. 8th Std B.A,B.Com. SSC SSC B.A,M.B.A. B.A. B.Com. B.Sc(Engg) HSC NCTVT Certificate,B.A. Diploma in Mgt,B.Sc. B.E. ACA,ACS M.Sc,B.Com. SSC SSC SSC, NCTVT Certificate 7th Std B.A. Diploma in Engg. SSC Dip. in Engg,NCTVT Certi. B.Sc,L.L.B. P.G Diploma,B.E. B.Sc. SSC SSC 7th Std B.Tech. 8th Std 9th Std SSC P.G Diploma,M.A. SSC 7th Std SSC B.Com. M.Sc,Ph.D. B.Sc,B.E,P.G Diploma P.G Diploma,M.B.A. Below 7th Std. SSC B.E. B.E. B.Tech. NCTVT Certificate,B.A. Diploma,B.Sc. B.Tech. 9th Std pass SSC 11th Std B.E. Diploma in Engg ACA,B.Com (Honours) 7th Std B.Tech. Dip. in Engg,P.G Diploma M.B.A,Bach of Mass Media B.E. B.Tech. Diploma in Engg B.A,M.A. M.A. SSC B.Com.,FCS,LLB,Dip (FRM) B.Sc. 9th Std
Age 60 58 59 60 46 60 60 60 60 28 60 60 60 60 60 54 60 60 60 53 48 36 28 45 60 60 60 52 60 60 60 60 60 46 47 60 60 60 60 60 60 60 60 60 60 60 50 60 60 41 58 60 30 60 28 57 45 35 60 60 60 60 60 29 60 26 60 27 37 38 60 45 60 60 60 51 59
Designation / Nature of Duties Security Sergeant-VI Security Sergeant-VI Senior Engineer (Manufacturing) Security Guard (P) Territory Manager (Retail) Manager (Estates) Operator-A (Utilities) Assistant Manager - (Hindi) Security Guard (P) Executive Aviation Technician I(Blending) Liaison Assistant Operator (P) (Field) Purchase Assistant Mgr (AVN) Dy Manager - Operations (Retail) Manager DSB-WB & NE, Kolkata Chief Manager(Maintenance) Tallyman I Operator (P)(Field) Station Manager - Chennai-AFS Dy. Manager - Engineering (Retail) Assistant Manager, Finance (Lubes) NR Territory Manager (Retail), Bhopal Leading Fireman Operator (P) (Field) Senior M/M Craftsman Attendant.I(Services) Superintendent Operator-A L.V.D(P) C/H Craftsman Sr Ops Officer(TDU) Sr. Manager Const. (Pipeline) AM (Indl), Kolkata Leading Fireman H.V.D I Operator (P)(Field) GM (Materials) Operator (P) (Field) GO (Services) Manager(OM & S) GM ( HR ) Mumbai Refinery Operator (P) (Aviation) Operator (P)(Field) Technician I (Retail) Network Manager, Highway Retailing, RHQ ED (R & D) DGM (E&P),West Manager R&D Cook General Craftsman (HEO/Mech) Assistant Manager Sales (Retail) Chief Manager Asst.Manager (Sales) - Moradabad Technician I (Retail) Engineer (Manufacturing) Deputy Manager (Manufacturing) Security Naik H.V.D (P) Technician(P) (Retail) Sr. Manager (MMPL) Project Senior Leading Fireman Assistant Manager Accounts (Lubes) Operator I (Field) Executive, P & AD Lubes Sr. Manager Audit-Ref Assistant Manager, Brand & Pr Dy. Manager - Sales (Retail) Senior Engineer (OM & S) Operator-A (Utilities) Dy. Manager - Sales (Retail) Sr. Manager (Ben Admin) Technician I (Elec) Company Secretary Lab.Analyst I Uti.Opr.
Date of Experience commencement of (No. of employment years) 05.05.1987 23 06.05.1991 19 04.05.1981 29 30.06.1987 41 02.02.1987 25 01.03.1977 33 03.10.1984 26 12-09-1973 39 14.07.1986 40 08.05.2006 7 01.03.1978 40 20.11.1990 20 01.12.1980 28 24.05.1968 42 13-03-1978 44 25.07.1979 31 16-05-1983 27 28.11.1985 24 08.03.1984 26 19.03.1982 28 02.02.1987 24 05.08.1996 14 03.12.2004 5 20.04.1987 23 24.02.1986 24 02.08.1982 27 27.09.1982 28 09.09.1987 25 03.10.1983 31 12.01.1987 23 01.07.1986 41 19.06.1979 31 28.02.1980 30 03.02.1987 23 02.02.1987 23 08.04.1985 25 12.09.1986 24 05.10.1983 27 03-01-1983 39 02.04.1979 31 01.04.1993 17 09.05.1973 37 20-03-1989 35 01.06.1985 41 16.10.1979 31 01.02.1989 40 12-10-1981 30 16.11.1990 19 04-04-1983 37 25.04.1996 14 01.04.1993 17 04.03.1985 25 03.10.2002 8 05.11.1985 39 01.06.2005 5 01.03.1983 34 16.10.1986 26 15.04.1999 11 22.08.1984 42 30.04.1979 30 12.03.1979 31 14-05-1981 30 24.02.1986 24 16.10.2006 3 06.10.1987 25 19.06.2006 4 04.05.1987 23 19.06.2006 4 17.06.1996 15 01.10.1999 10 12.01.1987 23 03.07.1989 24 15.01.1979 41 18.08.1986 39 05.04.1982 28 09.06.1988 29 14.12.1984 25
Total Remuneration Rs. 669039.00 891818.00 1571886.00 641840.00 780480.00 3026867.00 886323.00 1073556.05 854871.00 352876.00 690208.00 814181.00 562607.00 595381.00 2491859.66 2182716.00 3458284.85 2137977.00 1361117.00 607338.00 2943513.83 463739.00 1148381.00 1456402.00 825821.00 1104000.00 1090799.00 959684.00 1439335.00 422312.00 987470.00 1686613.00 1915742.00 2399796.00 1570556.00 342731.00 858646.00 841262.00 6495838.95 959919.00 355503.00 1619426.00 3639147.94 687936.00 1054981.00 831733.00 1052570.75 4051920.00 2593791.47 1268196.00 631612.00 571546.00 627218.00 2065308.00 369496.00 1079173.00 1157686.00 1243216.00 1322460.00 754844.00 1477318.00 2091777.58 591685.00 295538.00 376678.00 482220.00 2682380.00 339508.00 907876.00 667765.00 1023210.00 1620189.00 3021436.15 823501.00 3768427.00 1074504.00 1974816.00
Particulars of Last Employment Indian Air Force Indian Army Bombay Ring Travellers Ltd. TWAD Contractor Bharat Refineries Ltd. Indian Air Force Cention Indu. Alliance Ltd. Ministry of Defence NPTC Ltd Reunion Engineering CRECCS Ltd CDA Navy Union Bank of India BEML Corporation Bank
Indian Army Madras Atomic Power Plant Kadambini Editorial Shah Carpet co. Ltd. Indian Air Force Indian Army Mazagaon Dock Ltd. United Carbon India Limited Indian Navy Neeka Tube Ltd. L&T Kerala Inland Navigation Corp. KBAI Co-Op Soc. Ltd Calcutta Chemicals Army (Artillery) Molives of India Ltd. H'bad Invest & Fin Consult GSFC Fertilizer Thapar Intrafor Co. Grasim Industries Indian Army FCI Bharat Steel Tubes Ltd. Indian Army PWD Electrical Indian Air Force Corps of Signals
Indian Organic TANFAC Inds Indian Air Force Impex Indian Air Force Indian Air Force Directorate of General Stores
70
Bharat Petroleum Corporation Limited
Employed throughout the financial year and in receipt of remuneration of more than Rs.24 lakhs
Sr Name No. 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 Agarwal Sudhir K Agrawal M D Agrawal S K Agrawal S K Agrawal Shriniwas Agrawal V K Ahluwalia Anil Ahmed F K Ahuja Naresh Kumar Ahuja R K Ajit Kumar Ajith Kumar K Akut J R Amar Bahadur Singh Amudharaj M Anand Shakti Kumar Anand V Anandasundaresan P Ananthakrishnan G Anil Kumar B Anish Batra Anjaneyulu K Anurag Deepak Appa Rao K Apte Y V Arunachalam K Ashok Simon Atul Kumar Babar T D Babu Joseph Bahl Sunil Baiju P Alex Bains Sunil K Bajpai P K Bakshi Rajiv Balasubramanian P Balasubramanian R Balraj S Banerjee Siddhartha Bansal A K Barve R S Basant Udai Basil Benjamin A J Behera R Bhakta S Bharadwaj V K Bhardwaj R M Bhargava P S Bhargava S Bhaskaran D Bhat J K Bhate S V Bhatnagar P P Bhatt S K Bhattacharya S B Bhattacharyya A K Bhowmick P K Bhowmik Shiba Prasad Bhushan Bharat Biswajit Mandal Braganza J A Bunger S P C V R Chennakeshava Rao Chakkravarthy S D Chakraborty B Chakrapani T A Chand Anit Kumar Chanda Partha Chanda Sujit Kumar Chandran M Chandy K P Chattopadhyay D K Chaturvedi R Chawla M M Cherian M K Cherian V G Qualification B.E,M.Tech M.Sc B.Com,M.M.S B.Com., L.L.B, AICWA M.E,B.Sc(Engg) B.E. Diploma, B.Sc. B.A. B.Sc. B.E. M.Sc,M.A. B.Tech,M.B.A. Diploma in Mgt.,M.B.A. B.E L.L.B,M.A. M.Sc. B.Com., M.B.A. B.Sc,M.Sc. Diploma,ACA, B.Com. B.Sc,M.Sc. M.A,M.A. Diploma in Mgt,B.Tech. B.E. B.Sc B.E,M.F.M B.E. B.E. B.E. NCTVT Certi.,Old SSLC M.B.A,B.Sc(Engg). M.B.A,B.Sc(Engg) B.Tech. P.G Diploma,B.E. B.A,M.A. ACA P.G Diploma,ACA B.Com. HSC, NCTVT Certificate P.G Diploma,B.Sc. B.Com., L.L.B. Diploma in Mgt,B.Com. B.Sc,L.L.B. B.Sc(Engg)., M.B.A M.Sc. B.Sc. Diploma in Mgt,B.Sc L.L.B,M.A. B.E,B.E,M.E. B.E. B. Sc, Diploma (Engg) B.Tech,MMM. B.Tech. Diploma, M.C.A. M.A. L.L.B,AICWA B.Sc(Engg) B.E B.E. B.Com. B.Sc. Diploma, B.Sc. Diploma in Mgt,B.Tech. B.Tech,M.F.M. Diploma in Mgt,B.Sc B.E. B.Sc. M.Sc,M.A.M. B.E B.Com. M.Sc. B.E. B.E. Dipl. in Mgt,B.Sc,M.A. B.Tech. B.Sc(Engg). B.Sc. Age 51 56 49 51 51 60 49 50 56 50 52 47 51 46 50 55 50 54 50 53 53 51 56 52 49 45 51 54 56 50 52 47 46 57 50 53 54 53 55 58 55 50 52 52 51 55 47 58 50 56 49 50 51 52 55 57 46 43 52 47 57 59 53 59 55 47 51 56 53 57 54 51 56 53 52 58 Date of Experience Total commencement of (No. of years) Remuneration employment Rs. Chief Manager Ops (Retail), Jnpt - Uran 01-07-1981 29 2761278.28 DGM (IS Ref) 17-08-1981 32 2515653.27 Team Leader (Pricing & Commercial) 02-09-1983 27 2513519.90 GM (Legal) 29.12.1983 29 2871214.88 Project Leader, E&P - North 04.02.1985 29 2513195.59 Sr. Vice President - BORL 20.02.1984 37 2930671.64 Chief Manager Fleet Services (Retail),West 06.08.1984 26 2708040.61 Chief Manager, Base Oil Marketing, HQ 10-06-1981 29 2863442.11 TM (LPG) 10-01-1983 36 2669968.25 Chief Manager (E & P)- HQ 04.02.1985 29 2810429.00 Joint Director, PCRA - Delhi 29-09-1981 29 2702791.78 Senior Manager BORL 12.01.1989 21 2530193.47 GM (IIS Technology) 05-06-1981 31 2858504.80 Senior Manager(Project) 01.03.1993 17 2576244.24 Sr Manager Ops. (Retail), Sewree Instl. 02.03.1987 23 2595309.97 Sr.Installation Manager 06-05-1981 30 2636215.38 DGM (Sales) Retail South 01-09-1982 28 2826015.82 General Manager (Sales) I&C, Mumbai 12-05-1980 31 2545267.85 Chief Finance Manager (Refinery Project) 05-10-1987 26 2588753.34 DGM (IIS) Infrastructure, Co 10-11-1980 29 2714721.11 Aviation Manager - North & East 02.07.1984 31 2782833.78 Sr. Manager (HRS), Corporate 17.07.1986 27 2427850.03 ED (Logistics) Retail, Mumbai 11-10-1982 35 3306458.49 Manager Operations (Retail) 15-12-1983 31 2459475.95 On Deputation to BORL Bina 22.02.1982 29 2513280.26 Senior Manager(Project) 20.06.1989 21 2864445.79 DGM 01.08.1985 25 2829044.87 Team Leader Tech Servs. & HSSE (Aviation)HQ 13-05-1981 30 3137571.38 Dy Manager (TDU) 20.06.1979 31 2534933.73 Chief Manager(Project) 04.10.1984 26 2608639.20 DGM Logistics (LPG) HQ 17-11-1980 29 2801135.99 Manager (Construction Group) Calicut 16.02.1987 24 2528494.44 Manager ( Business Development) Gas 06.04.1987 23 2488682.43 Sr. Manager (Vigilance) 01-09-1982 32 2931535.22 Deputation to PNGRB 01-09-1987 24 2760341.60 GM (Corporate Finance) 10.06.1985 33 3115277.76 Team Member - IIS-ERP 26-11-1979 33 2518919.75 Sr. Manager Business Devpt (Indl),Spl Products 17.09.1979 31 2607808.16 Regional LPG Manager, North 28.04.1986 34 3085149.08 ED (Gas) 01-12-1983 39 2791049.54 Chief Manager, Audit 08.06.1978 35 2552813.74 Sr. Manager, ARB (Retail)- North 01-09-1982 28 2419629.27 Chief Manager (Shift) 01.02.1985 25 2753941.51 Team Member, ERP CC 01-09-1982 30 2495660.14 Manager, CSSC (SDCV)& Qsro-North 01-06-1981 33 2430104.86 Chief Operations Manager 05.05.1986 34 2426002.42 Sr.Manager - PPAC Delhi 06.04.1987 23 2752799.47 ED (Planning) 10-03-1978 36 3029289.58 DGM, Supply Chain Optimization 10.09.1984 28 2635459.83 DGM (E&As) Incharge 14.03.1984 33 2430725.35 Sr Manager (IT) 02.03.1987 26 2640694.46 Executive Assistant To Director -R 14.01.1982 28 2671959.97 Sr. Manager (IIS), CO 18-01-1982 28 3208788.59 Senior Manager Operations I/C (Retail) 28-04-1981 29 2514913.60 GM (Aviation) 06-07-1981 34 2629576.11 Sr Manager Engg Construction (E&P) 01-09-1982 31 2428618.35 Sr. Manager (P&Cs) 16.12.1987 22 2421850.08 T.C. (LPG) Allahabad 03.09.1990 20 2467263.42 Deputy Manager - Operations (Retail) 18.03.1980 33 2477440.75 Manager Operations I/C (Retail) 02.03.1987 23 2523676.30 DGM (IS Services) 20-12-1978 37 2551297.07 Sr.Manager HSSE (Retail), North 27.11.1984 35 2597564.14 Manager Operations (Retail) 18.06.1984 27 2506577.85 Chief Manager In-Charge (Lubricants) 05-06-1981 38 2621825.62 Chief Manager - Materials (E&P) 17-12-1981 29 2515452.64 Territory Co-Ordinator, Chennai LPG 02.03.1987 26 2436420.61 Sr. Manager (Retail Mis), HQ 11-05-1981 30 2845082.55 Chief Manager Infra. Logistics (Retail) 05-10-1983 32 2418186.69 Deputy Manager Operations I/C (Retail) 25.11.1983 26 2476870.24 Sr Manager HSSE (LPG) South 01-09-1982 30 2800014.70 Regional LPG Mgr South 16.12.1985 30 2759705.86 Manager Construction [Retail], Kolkata 01-09-1982 29 2623518.72 RM (Lubes) North 16-06-1980 30 3094922.18 GM (Pipeline Projects) E&P 13-02-1978 33 2999781.32 Senior Manager(E&C) 14.06.1985 25 2530772.56 Sr Manager Quality Control 09.10.1978 32 2530054.35 Designation / Nature of Duties Particulars of last employment
BSA College Cartech Udyog Sharma & Associates FCI Industrial Containers Delhi Telephone Shyam Lal & Son Telco Tata Pharma Ltd A.S. Tatari A.M. Jain College Duphar Interfram Ltd. Clutch Auto Ltd NTPC BHEL AP Travel & Tourists Steel Tubes of India Dewas Hindustan Aluminium
KC John, Silpiarch Bhagirath Gramin Bank Voltas Ltd. Sri Ram Enterprises Co-optex International Bitumen Product IBP Co Ltd The Kohinoor Mills Co. Ltd. Orissa University Saral Travels Hindustan Lever Gen Engg Works, Sriram Fertilizers Union Carbide (I) Ltd. Savita Chemicals
RBI CLW, Chittaranjan All India Radio Premier Automobiles Punjab Agro Industries N V Rattaia & C Carborundum Universal State Bank of Hyderabad Ghosh Bose & AS S.R. Govt. HR. Hindustan Lever Jayashree Chemicals J.K. Synthetics
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71
Sr Name No. 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 Chiramal J P Chogle Sujata N (Ms) Chopade Kisan Wasudeo Damien Gracious K D Dana P K Das A Das Bhaskar Das Gautam Das Munshi Ashim Ranjan Das Prabir Das Samir Kumar Dasgupta N Dass Amar Datta B K Datta Tapan David C D'costa C (Ms) Debabrata Das Debnath Ashutosh Dekate R G Desai S S Deshmukh Ravindra V Dev Raj Dewan Sunil Dey S K Dharmaraj Ashok S K Dilip Kumar L Dinaker J Dinesh Chandran P Diwakar K K Dogra A K Donadkar R J D'souza Juliet (Ms) Dsouza R P Duggal Vijay Dutta Ashim Kumar Dutta Munish Elizabeth Jain (Ms) Francis Placidus K G Gadekar B R Ganesh P G Gangan V V Gangopadhyay S S Ganguly Debashis Ganguly G C Ganguly Jayanta Gathoo S P Gawai N P Gayen P K George Paul George S D George T George Thomas Ghalsasi R R Ghan S P Gharat S P Gharat V N Ghorpade P V Ghosal Shantanu Ghosh Pallav Ghosh Subir K Girish Kumar U V (Dr) Goel S K Gonsalves A Gopakumar P R Gopinathan R Gopu K B Gore U M Govadia M N (Ms) Govind M (Ms) Govinda Rajan N Govindarajan M P Goyal Pardeep Gupta A K Gupta A K Gupta Ashok Kumar Gupta H P Gupta K K
Qualification B.Com. B.A,L.L.B. B.E,M.Tech. B.Sc.(Engg)., AICWA B.Tech,M.Tech P.G Diploma,B.Sc. P.G Diploma,B.Tech B.E. Diploma in Mgt,M.Sc. Diploma,B.Sc. B.Sc. B.E P.G Diploma Diploma in Engg,B.E. B.E,M.B.A. B.Sc,M.Sc. P Diploma,B.A (Honours) .G B.Com., AICWA B.Sc,M.Sc. M.A,M.B.A. B.E B.Sc,B.E. B.Tech,M.B.A. B.E. B.Tech B.A. Diploma in Mgt,M.A. AICWA,ACA B.Sc(Engg). B.E. B.Sc,M.B.A. B.Tech. B.A. Diploma in Mgt,B.Sc. ACA,B.Com. P.G Diploma,B.Sc(Engg) Dip. in Mgt, P.G Dip., B.E. Diploma in Mgt,B.A. B.Sc,M.B.B.S. P.G. Diploma, B.E. B.Sc (Engg) B.Com,B.A,M.B.A. B.Tech B.E. P.G Diploma,B.E. B.Com. B.Com., M.A.(PM&IR) B.Sc, M.Pharm. B.E. M.B.A,B.Sc(Engg). B.Com. P.G. Diploma,B.Tech B.Sc. (Engg), M.B.A. Diploma in Mgt,B.E. P.G Diploma,B.Tech B.Sc. Diploma in Mgt, B.Com. Diploma in Mgt,B.Sc, BGL. B.Tech. B.A,M.B.A. Diploma in Mgt,B.Sc. M.Sc,Ph.D Diploma in Mgt,B.E. ITI Certificate B.Sc(Engg) AICWA Diploma in Engg. B.A B.A, Diploma B.A. B.E,M.B.A Diploma,P.G Diploma P.G Diploma,B.E. B.Tech,M.Tech Diploma, B.E. M.Sc,B.Sc(Engg) B.Tech. B.Sc,M.Sc.
Age 53 50 38 52 58 56 52 45 57 47 52 58 52 54 57 58 56 46 52 54 52 47 57 58 57 51 57 51 52 45 47 58 60 55 46 54 42 58 50 53 51 55 53 46 49 60 53 51 53 53 50 53 51 47 57 58 56 55 42 58 56 56 57 54 55 59 53 54 52 52 51 56 43 56 55 52 55 54
Designation / Nature of Duties Sr Manager Dealer Selection Board DGM HR (Retail) Dy Manager Ops (MOT) MMPL Chief Manager(Project) DGM (Audit) - Mumbai DGM On Deputation To BORL, Bina Business Informations Manager (Lubes) HQ Manager Engg. (Automation), Noida Chief Manager [HRS], East Sr. Manager Aviation Operations, Delhi Sr. Manager (Supplies), RHQ DGM Ops & HSSE (LPG), HQ Manager(Aviation)-Delhi AFS ED (Supply Chain Optimization) DGM (Vigilance), CO Manager (Marketing Services) Bangalore Regional LPG Manager - West Manager Finance(Shared Services), East Sr Manager Qlty Assurance (Lubes), East Sr. Manager Ops. (Retail), Kandla Instln. DGM (Admin) CO Territory Manager (LPG), Uran Proj Leader NR, Noida Project Facilitator, WR Team Member, ERP CC TM (LPG), Cherlapalli Sr. Manager (Hindi), CO GM Finance (International Trade) Chief Manager (Manufacture) Manager (Ops) Manager Shift Operations Delhi AFS Chief Process Manager (Train-3) Secretary - ED (IT) On Deputation to Matrix Bharat Marine Services DGM Commercial (CGD) Director (Commercial) Central UP Gas JV Dy Manager(Estates) Team Leader HR (Aviation) Senior Medical Office Sr Manager (ROU & Safety), MMBPL, Mumbai Chief Manager (Manufacture) Sr. Manager (IS Refy Sys) Sr. Manager Ops. & HSSE (LPG), West Co-Facilitator, Kolkata E&P Manager Materials, East Sr Manager Mktg Services (Lubes) ED (HRS) Co-Ordinator (Aviation), West Sr. Manager (CPO) DGM (Prod Desp) Sr. Finance Manager (Shared Services) - West Chief Manager (Planning), Co Sr. Manager ESE (Kochi) Chief Manager(Mech)- CCR Project Chief Manager Logistics & HSSE (I&C), HQ Manager (Estates) Ch Mgr HR (Comp.& Benefits), CO Territory Coordinator (Retail), Mumbai Manager Engineering, Kolkata E&P GM (Retail) East Senior Manager Procurement (Retail) DGM IT & BI (RHQ) DGM (Manufacturing) Dy Manager E&C (Design) Chief Engineering Manager - North Chief Manager (Intern) Deputy Manager(Maint.) Chief Manager (IT) Sr Mgr. Brand Promotion & Campaigns,Retail HQ Dy.Manager (Shared Services), West DGM (E&P) South GM (HR) Kochi Refinery Sr.Manager (Retail Engineering)-North DGM (Infrastructure Planning & Devpt.) RHQ Chief Manager (Internal Safety Audit) DGM (RNP & RE) RHQ Territory Manager [Retail], Delhi ED (Retail) In-Charge
Date of Experience Total commencement of (No. of years) Remuneration employment Rs. 02-11-1981 29 2558925.72 22-12-1983 28 2503749.04 28.12.1995 14 2639070.93 14.09.1983 27 2521720.78 10-06-1980 30 2637064.43 21.09.1984 26 2566043.03 07-06-1983 27 2487308.74 06.04.1987 23 2547175.25 04-06-1986 34 2700776.28 16.02.1987 23 2677928.58 17.09.1984 26 2573033.53 04-09-1986 34 2423661.35 24-04-1981 29 2860931.66 01.04.1980 30 3386015.49 02-06-1986 33 2842125.86 02-07-1980 36 2855808.61 30-06-1980 35 2548988.56 17.04.1995 21 2546112.85 29.08.1984 28 2827923.64 03.09.1984 31 2638204.62 02.09.1983 30 2532142.18 22.02.1988 22 3110025.49 05.09.1984 31 2804811.58 23-06-1986 36 2505653.82 20-05-1981 33 2405222.87 14-03-1983 28 2487346.73 01-09-1982 29 2683811.27 02.05.1985 31 2920038.29 14.09.1983 27 3107530.99 03.02.1987 23 2460367.45 03.02.1987 23 2600010.72 01.10.1992 33 2440334.02 23-01-1978 32 3372465.47 01-09-1982 36 2568301.53 22-07-1987 24 2750756.17 26-06-1981 32 3076829.84 02.07.1990 20 3032445.18 03-03-1975 36 2811931.90 15.12.1994 15 2468034.92 02.02.1987 23 2486330.86 09.05.1985 25 2468062.40 25.10.1977 33 2535468.09 23.07.1984 29 2409186.90 01.08.1988 22 2606750.33 11.09.1985 25 2598807.97 23-06-1986 28 4612025.13 10.10.1986 31 2885811.74 27-04-1983 28 2409010.16 03.02.1987 23 2920770.23 14.09.1983 27 2640845.64 09-09-1981 29 2486487.24 05.06.1984 30 2480508.47 01.12.1984 25 2415634.79 03.07.1985 25 2602899.82 05-01-1984 34 2420165.01 10.11.1976 33 2493975.16 12.02.1980 36 2621058.14 06-10-1981 34 2496499.81 03.09.1990 20 2727517.97 30-11-1983 34 2664696.92 10-07-1981 30 2790803.13 18-01-1982 28 2607723.47 21.05.1992 34 2550450.53 06.10.1986 30 2511910.43 12-05-1980 31 2411998.13 17.07.1972 38 2773776.20 01.02.1979 31 2673436.65 14-03-1983 30 2416931.79 25-02-1980 31 2523976.66 13-10-1980 31 3098446.85 21-09-1983 29 5353029.02 12.07.1979 34 2746188.66 01.08.1988 22 2894974.66 03-01-1979 33 2728659.68 16.08.1979 31 2580845.68 01-09-1982 28 2555701.54 04.11.1985 31 2606181.83 23-01-1979 33 3146862.66
Particulars of last employment The Catholic Bank Larsen & Toubro
Tyre Corpn. of India HFC Godrej Boyce Mfg. Sr Project Officer Blue Star Ltd. SAIL Calcutta University New India Assurance Const Engg Corporation DDA Essar Construction Indian Turpentine Complete Export Food Corpn. of India PK Mitra & Co
Deepak Fertilizers Ltd. Member Audit Kumar Chaudhury J.K. Industries Ciba-Geigy N.V.P. Medical Centre
Godrej Soaps Ltd Bajaj Electricals NTPC Ravinder Motors HPCL Dunlop (I) Ltd Chinai Comm Co Ashok Engg The Bombay Textiles IOC National Fertilzers Ltd. Chemtex Engg of India Ltd. Kerala State Warehouse Dena Bank HPCL Industrial Cables Brittania Industries Groundnut Extra Chemicals Engineering Indian Oil Corp. Flowmore Pvt.Ltd.
72
Bharat Petroleum Corporation Limited
Sr Name No. 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 Gupta R Gupta R M Gupta Sanjiv K Gurbuxani Prakash Gurumurthy K Hajela S K Harinarayana V Hira A Iyengar Pradeep K Iyer C J Jacob V Jadhav A Y Jaidka S K Jain C K Jain Mukesh Kumar Jain Parvesh K Jain S M Jain Sudhir K Jalali S N James J Jawaharlal V Jayan K K Jayan M P Jha Nand Kishore Jironekar J S John Minu Mathew Johny K T Joshi Devendra Joshi Mukul Joshi S K Joshi S M Joshi U N Kadam S B Kailash Nath Kakade H B Kakurla R M Kalaiselvan G Kamble D B Kandarkar Bs Kannan S Katware Prashant S Kaushik A K Kearney D A Khan R Irfan Ali Khandare T P Kharche V R Khurana M C Kirolikar H Koley Pankaj Kumar Kotian Purushothama J Krishan Gopal Krishna Sankar R S Krishnamurti S Krishnan A L Krishnan S R Krishnaswamy A Kulkarni Nitin Kulkarni S V Kumar Amrendra Kumar Arun Kumar Bhuvnesh Kumar Dhirendra Kumar Dinesh Kumar Manoj Kumar P V Kumar Pankaj Kumar Rakesh Kumar Sumant Kumaraswamy P Kurian P Alapatt Kute M L Lakshminarasimhan R Lal Ramji Laxman T Limaye A G Madhia H K Mahendiran A
Qualification Diploma, B.Com B.Sc, M.B.A(Engg) B.Tech B.Com,ACA. AICWA,ACA Diploma in Engg B.E. B.E. B.Com B.Tech. B.Sc. Diploma in Mgt,B.A B.Sc. M.Tech,P.G Diploma,M.A. Diploma in Mgt,ACS M.Sc B.E. P.G Diploma,B.Tech B.E. B.Sc,B.Tech. P.G Diploma,L.L.B. M.A,Ph.D. P.G Diploma,P.G Diploma B.Sc(Engg). Diploma in Mgt,B.A. B.Sc.(Engg) Diploma in Engg Diploma,B.A. B.Tech,M.B.A. B.Com., M.B.A,ACA Diploma in Engg,B.E. B.E. B.E,M.A.M. B.E. B.Tech Diploma,B.E. P.G Diploma,B.E Diploma,B.Tech. B.Sc. M.Sc. B.E. Diploma, P.G Diploma P.G Diploma,B.Sc. B.A B.Tech. B.E,M.B.A. B.A. B.Sc,L.L.B. Dipl. in Mgt,B.Sc(Engg) AICWA B.Sc. NCTVT Certi.,Diploma B.Sc B.Sc Diploma in Mgt,B.E. Diploma, B.Sc. B.Sc,M.Sc. FCS, AICWA,CAIIB Diploma, B.Sc(Engg). Diploma in Mgt,B.E. B.Sc,M.Sc. B.Tech M.Tech B.E,M.B.A. B.Sc,L.L.B. AICWA,ACA,, B.E. B.E B.E. B.Tech,M.E. B.E. Diploma,B.Sc. B.A,M.A. Diploma in Engg,B.Sc. Diploma,B.Sc B.A. B.E.
Age 55 58 49 56 48 53 52 55 48 51 49 58 52 56 56 46 60 54 53 49 55 55 50 47 51 58 49 44 46 59 48 57 54 46 54 58 54 51 48 53 47 51 52 54 52 51 52 54 54 49 55 52 57 51 52 51 50 53 48 59 47 51 58 43 53 44 59 53 53 48 56 50 55 60 56 55 44
Date of Experience Total commencement of (No. of years) Remuneration employment Rs. Ch. Mgr. Promotion & Merchandising (Lubes) 01-02-1979 33 2400269.29 ED (LPG) 12-10-1982 35 3399016.58 Sr. Manager Const Group, Jaipur 02.07.1984 28 2407171.71 DGM (Finance) 15-05-1981 32 2860654.10 DGM (Finance) 16-07-1987 23 2469746.48 Sr Manager Maint (M&C) 20.08.1987 32 2406567.11 Chief Manager (Vigilance), CO 20.01.1982 30 2478898.20 Executive Chairman, PII 15-02-1978 32 2859357.47 Sr. Manager Mktg Servs (Indl), Mumbai 16.10.1987 30 2411085.26 DGM (Technical) 03.12.1984 25 2494523.53 Aviation Manager In-Charge, West 01-09-1982 28 2544603.47 Sr. Manager (Admin), CO 10.04.1978 34 2424109.35 Sr. Installation Manager 29-04-1981 32 3112392.78 DGM (BORL) 14.10.1983 33 2789080.87 Chief Manager Legal - Mumbai 22-06-1981 36 2545180.89 Manager QC 16.02.1987 25 2401814.13 DGM (E&C),Refinery 08.07.1988 38 2687895.34 Sr. Manager Engg Pol - Noida 06-05-1981 30 2432887.30 Chief Maint. Manager(SP) 06.07.1990 20 2566979.49 AM (Indl), Kayamkulam 16.02.1987 23 2661326.80 Sr. Manager - Legal, North 07-09-1981 32 2468497.02 DGM 19.11.1991 19 2466560.62 Senior Manager 01.12.1984 25 2627527.71 Manager Tech Services (Indus) - North 01.08.1988 22 2635228.81 Dy Manager Operations (LPG) 13.09.1984 26 2755581.62 GM (Tech.) 20.12.1982 27 2654760.83 Chief Manager (Projects) 19.10.1982 27 2427482.18 Manager (HR Serv.) 02.05.1994 23 2575400.47 Sr Manager (Business Plan)-NR 01.04.1985 25 2544276.27 Director (Finance) 13-02-1978 38 2928334.80 Sr.Manager Process (CDU Train I & II) 17.06.1986 27 2416967.67 Managing Director (BORL) 20-05-1982 36 3072239.64 Chief Manager (Fire & Safety) 01.03.1982 30 2653092.10 Territory Mgr (LPG), Indore 16.02.1987 24 2455374.47 Chief Manager (Workplace Security), HSSE 01-07-1981 29 2430802.33 Sr. Manager Admin & Monitoring, Mumbai 30-12-1981 33 2695805.17 DGM, ERP CC 13-10-1982 30 3195961.51 Chief Process Manager(SP) 10.07.1990 20 2929063.75 Sr Ops Officer (CCU) 20.02.1984 26 2486753.30 Area Marketing Manager (Kerala) 16-05-1980 30 2418428.66 Sr Manager RNP & RE, West 20.04.1987 23 2600440.48 GM (IS -Infrastructure & Services) 22-06-1981 29 2759158.74 AM (Indl), Chennai 09-05-1980 30 2406950.80 DGM (Logistics) Retail 21-04-1982 29 2482134.93 Project Leader VBPL, Rajkot Camp Office 19.11.1984 27 2578901.62 Plant Manager (Lubes), Wadilube 21-05-1982 30 2484928.59 Ch. Manager (Regnl LPG Coord) - North 16-11-1981 29 2533937.00 Sr. Manager, Public Relations, CO 01-10-1981 32 2521925.93 Manager Tech Servs (Indl)-East 01.08.1985 29 2405674.68 Assistant Manager Ops., Lubes 20.09.1983 28 2626673.93 Sr.Manager In-Charge , Sewree Instln. 16-05-1983 28 2789324.50 Sr Manager (Ben.Admin) 24.08.1984 26 2501170.93 ED (Corporate Affairs) 15-12-1982 37 3875488.95 Territory Manager (Retail) Bangalore 01-09-1982 28 2436083.20 Chief Manager (E&C) 11.11.1983 26 2677118.86 DGM (Strategy) 16-04-1980 30 2548023.79 Business Development Manager (Lubes), East 02.07.1984 28 2796211.16 Company Secretary 07.02.1984 33 2410960.91 Plant Manager (Lubricants) 02.03.1987 23 2508591.53 Sr. Vice President (Project), BORL 13.08.1982 38 2724468.80 Sr.Manager, Highway Retailing-North 16.02.1987 23 2426115.91 DGM (Sales) Retail 17-10-1983 29 2891793.25 DGM (Engg.), Bdt, Noida 01-06-1981 30 2956584.48 Territory Manager (Retail), Bareilly 03.09.1991 19 2524816.23 GM (International Trade) 01-09-1982 31 2595574.92 Chief Manager Finance (Retail), HQ 27.05.1991 24 2592823.10 Ch Manager-U.P.T/F(Jvr) 16.08.1982 35 2429103.77 AMM, Chandigarh 01-09-1982 30 2406077.58 DGM ( RMP ) 08.10.1979 31 3020079.21 Senior Manager (Projects) 01.06.1989 21 3083298.91 DGM (Work Place Health & Safety), HSSE 01-09-1986 29 2515018.09 Sr Manager Process (DHDS Complex) 27.07.1981 29 2409531.04 Manager, IGIA T-2 18.07.1984 34 2489403.33 DGM (P&CS) 18.05.1981 29 2532809.18 Manager On Deputation To BORL 18.09.1978 34 2404113.44 Manager (Hindi Cell) - Noida 14-03-1983 35 2507576.23 Deputy Manager / Man 16.06.1993 17 2635306.69
Designation / Nature of Duties
Particulars of last employment Computronic Ind Macneil & Magor Dewanchand & Co Kaul & Associates G M Ballarpur Machinery Mfg C Central Railways New Customs Office Phinon Exports NPCC Ltd Delhi Tourisum DAV College National Organic The Printers HO Hindustan Insectcides Ltd. Postal Department CUSAT
Power Gas (I) P Ltd Western Railway TIFR ICB Pvt. Ltd. Mukund Iron & Steel Kirloskar Pnuematic M.M.M.Engg College Bajaj Auto Ltd Tamilnadu Electricity Board Indian Oil, Mathura Refinery
Exports India Ltd Mazagaon Dock Ltd Maharashtra State Ele. Board D&H Secheron Electrodes TRF Inderjit Proprietory Directorate of Agriculture IBP
Diners Club (I) Pvt. Ltd. Bank of India EIL EMD India Ltd. Gwalior Rayon Off.Of The Accountant General P Tandon & Co. EIL Hindustan Aluminium Kirloskar Pneumatics NHPC IOC Sudarshan Chemicals Madia Oil Co. Neyveli Lignite Corp.
Annual Report 2009-2010
73
Sr Name No. 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 Maheshwari S D Malik Deepak Malik Sudhir K Mallick P K Mallick Sudip Manchanda Rishi D Mandan B B Mane D K Manohar Rao N Manwatkar A G Marcus Jacob Mathukutty Cyriac Mathur D N Mathur J K Mathur S K Mathur S P Mazumdar Indrajit Mehra R K Mehta Ashok Meyyappan Soodamani Mishra Bibhudutta Misra Nagendra Misra Prithvi Bardhan Misra R Mittal M K Mohan M J (Capt) Mohan R Mohan Ram B Mohan S Menon Mohandas P Mohanlal A Mukerji Gautam Mukerji P K Mukherjee A Mukherjee S N Mukherjee Subhasis Murthy P L N Murugaiyan R Nagar S Nagarajan S Nagarajan V Naidu Theresa (Ms) Nair R R Nair Suresh K Namboodiri K P S Nandakumar E Nandakumar V Nandi A K Nangia M Narayanan C Narayanan K Narayanan K B Narayanan R Natarajan V Natekar R P Nayar Pushp Kumar Nedunchezhian M Neeliyath B Negi Chanda (Ms) Negi K B S Nigam Kamal Krishan Nikhilesh Ranjan Maitra Ninan C S Ombeer Oza J M Padmakar K Padmanabhan P Painter V K Pakrashi R Pal S K Panda R K Pandey U S Panjwani V Paranjape H S Parmar M S Patel A C Pathak Vikram
Qualification B.Com., ACA, B.Sc(Engg) B.Sc(Engg) B.Sc,M.S.W. B.Sc,B.Sc. P.G Diploma,M.Sc. B.Tech B.E,P.G Diploma B.E. B.Tech. M.B.A,B.Sc(Engg). B.Sc (Engg) P.G Diploma,B.Com B.Sc,M.Sc. B.Sc(Engg) B.Sc,B.E. B.Com,M.M.S B.Tech,Diploma B.A,B.Com. B.Com., ACA, M.A. M.A., L.L.B. M.Sc. B.Sc,M.Sc. B.Tech. B.Sc B.Sc. B.Sc,M.A. M.Tech. Dip.(Mgt),B.Sc,B.L,M.A B.E,M.Sc. M.Com. Diploma ,B.Sc(Engg) B.E. Diploma, AMIE B.Com,M.Com,AICWA,ACA B.E. B.E,L.L.B,M.B.A. Diploma in Engg,B.Sc. B.Sc. B.Sc,M.Sc. B.Com, ACA, B.Sc,L.L.B. B.Sc(Engg) Diploma in Mgt,B.Sc. B.Sc(Engg), M.B.A, B.E. ITI,Dip(Mgt) B.Sc,B.Sc. B.Sc(Engg) B.Sc(Engg), M.Tech. M.Sc. B.Sc. P.G Diploma,M.Sc. P.G Dipl.,AICWA,M.Com B.Sc,M.B.A. M.A Diploma in Engg. B.Sc,M.B.A. B.Sc,B.Tech Dipl. in Mgt, P Dipl.,M.Com. .G B.Com. M.Tech. B.Sc,B.E. B.Sc,M.B.A. B.Sc,M.A(PM&IR) B.Tech. Diploma ,B.E B.Sc. B.E. Diploma in Mgt,B.Sc. Diploma in Mgt,B.Sc,M.E. B.Tech. ACA,B.Com M.Sc. B.Sc,M.Sc. B.E,B.E.
Age 53 50 54 51 52 58 54 58 52 52 52 52 54 58 58 58 50 55 52 52 48 53 53 54 49 60 57 45 49 52 50 52 56 40 59 46 56 42 47 53 50 45 51 50 58 58 52 53 52 51 50 51 50 53 48 40 52 58 36 60 49 58 51 48 54 49 53 55 58 58 53 56 46 53 53 59 42
Date of Experience Total commencement of (No. of years) Remuneration employment Rs. DGM - Finance (E&P), HQ 06.02.1984 29 2922082.01 Chief Manager (Engg.) 04.02.1985 27 2668381.64 TM (Indl), Mumbai 20-05-1981 32 2589836.50 Chief Manager (HRS) South 05-05-1982 29 2584080.59 DGM Logistics (Retail), East 01-09-1982 29 2639879.23 DGM (HRD) 01-09-1982 32 2530707.79 Chief Manager (Vigilance), CO 01-05-1981 29 2495468.25 Head HSSE Entity 24-02-1978 35 2656943.54 DGM Ops. (MMBPL) 01-09-1982 28 2646943.26 Dy Manager Ops (VBPL), Vadinar 21.12.1990 19 2520358.00 Chief Manager (Advisory) 04.10.1984 26 2575998.15 Chief Manager (Energy & Environment) 02.11.1983 26 2415646.33 DGM (Coordination) 16-06-1980 33 2839780.73 Manager Dealer Selection Board 29-05-1980 36 2605409.70 GM (Ret.) North 23-02-1984 35 2995937.56 ED (Engg. & Projects) 21-08-1978 34 2757011.05 Chief Manager Business Dev (Indl), HQ 07-11-1983 26 2427280.95 ED (International Trade) 25-05-1981 36 2855100.73 Ch Manager (Coordination) NHAI 01-09-1982 31 2546688.58 Chief Manager (Taxation), CO 03-08-1987 27 2507351.91 National Model Manager SDCV, NR 02.03.1987 26 3053667.15 DGM (Special Duties) 29-04-1981 29 2888060.19 Deputy Manager Operations I/C (Retail) 18.05.1982 28 2472821.09 Marketing Manager - Aviation 27-05-1980 30 2852840.14 Procurement Leader (CPO), Grp-2 01.04.1985 25 2880946.77 Vice President (Admn. Coord. & Liaison) 28-04-1986 37 3130018.67 Chief Manager Marketing Co-Ord (LPG), West 01-02-1979 35 2735815.96 Senior Manager(R&P) 03.04.1990 20 2586787.56 Chief Manager (Shift Admn.) 03.12.1990 19 2731389.80 Sr Manager (Legal)South 12-04-1982 30 2402368.18 Chief Manager (Projects) 25.08.1984 26 2667738.62 Adviser (Mktg) 18-05-1981 29 2751320.10 Chief Manager Distribution, South 30-05-1980 33 2606417.52 Manager (CDU) 16.08.1994 16 2546006.33 Chief Manager Safety 06.08.1984 38 2538136.78 Sr Manager Finance [Retail], East 01.12.1989 24 2442245.96 Deputy General Manager (Maintenance) 19.09.1983 33 2513231.08 Dy Manager (Projects) 01.01.1992 18 2481379.89 Station Manager - Delhi AFS 30.05.1984 26 3256933.77 Manager Qlty. Assurance Lab (Lubes) 04-07-1984 33 2563341.12 In-Charge Bina Despatch Terminal, Bina 01-09-1982 28 2462587.67 Chief Finance Manager Incharge (I&C), HQ 18.10.1989 22 2505440.45 Deputy General Manager (HRS) West 04.03.1991 29 2777592.19 Chief Manager SCM (Lubes), Sewree 05.11.1984 27 2776321.33 DGM (Retail) 19-05-1980 35 2560196.53 ED (Kochi Refinery) 12.08.1983 27 3066877.56 Chief Manager(E&C) 01.08.1985 25 2554586.56 Manager Logistics (Lubricants) 18.08.1987 30 2659265.06 Sr.Mgr (Ben.Admin) - North 02.07.1984 29 2909568.48 Ch. Manager, Construction,I/C, BKPL, Kota 12.11.1984 29 3153064.58 Chief Manager(P&CS) 18.04.1985 25 2794837.31 GM (ERP - CC) 18-01-1982 28 2601162.26 Team Member (ERP CC) 10-01-1983 27 2660822.11 Chief Manager, Business Information, LPG CO 10-11-1980 29 2419794.47 GM (Corporate Treasury) 02.05.1985 26 2835944.78 Sr. Manager Reseller (Lubes) HQ 01.04.1991 19 2585071.88 Chief Manager Operations, South 14-03-1983 27 2490996.57 Sr Manager (LNG) 26-10-1981 38 2483658.24 Deputy Manager - Finance (Lubes), NR 05.08.1996 14 2507928.32 Deputy General Manager (Engg.) 25-04-1983 36 2527885.74 Deputy Manager (Finance) Retail North 26.04.1984 30 2409757.23 Manager Operations I/C (Retail) 23.08.1982 28 2490085.66 Chief Manager (Common) 14.09.1983 27 2951005.95 Sr. Manager 02.03.1987 23 2707946.93 DGM - Business Development (LPG) 01-09-1982 29 2686561.71 DGM Corporate HRS 02.07.1984 26 2704996.95 GM (Technical) 01.10.1981 28 2812482.36 Chief Manager (Vigilance) Refinery 30-12-1985 28 2509192.27 TM (Indl), Kolkata 02-06-1986 34 2599479.54 Chief Manager HSSE (Retail), East 18-01-1979 33 2457264.95 DGM Sales (Retail), West 01-09-1982 28 2496805.43 DGM (Business Development) 10-03-1978 34 2548890.25 Sr Manager (IT) 16.12.1987 22 2665645.59 DGM (Finance) 12-12-1983 30 2615995.66 Chief Manager NHAI Coordination, Delhi 19-05-1981 29 2543287.05 Manager Qlty.Assurance, P&AD (Lubes) Sewree 17-10-1977 33 2489076.15 Dy. Manager, (Fleet Sales) 03.09.1990 20 2466395.70
Designation / Nature of Duties
Particulars of last employment CGR & Associate Vijay Rewal Associates Lakshmi Precision Hukumchand Jute Mills Ltd Sansid Polbro Overseas Commun. Bajaj Auto Ltd Hind Organic Chemicals S.J.C.E. Bongaigaon Refinery Bombay Oxygen Co. All India Radio IBP Flow More Pvt. Indian Oil Corp. Dabur Y.R. Shetty & C Reserve Bank of India
Canara Bank ILAC Ltd Lubrizol India Ltd, Suraj Electricals Gwalior Rayons Indian Oil Corp. Usha Sewing Machine Madras Fertilizers Ponds India Ltd Rallies India Ltd. Hindustan Cable Mechelonic Engineers Indian P&T Department Bokaro Steel Plant Calcutta Ele. Supply Corpn. Ltd. Reliance Textiles ACC Ltd.
Kinetic Engg. Ltd. Mizoram Polytech Bharat Heavy Electricals Inalsa Pvt Ltd. Kurji Holy Family Hospital XLO India Ltd Engineers India Modi Industries W.B. State Electricity Board Krishna Water S Shaw Wallace Co
74
Bharat Petroleum Corporation Limited
Sr Name No. 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 533 534 Patke M S Paul George Paul Pradip Peethambaran T Pendse Shakuntala P (Ms) Pimpale Mb Pius Mathew Prabhakar N Prabhakaran M V Prabhakaran T S Prabhu Venkatesh Prabhune A C Pradeep Kumar T Prakash K Prakash Rao M S Prakash S Prasad Clemence Prasad K Panicker Prasad M George Prasad R N Prasad V S Pugazhendhi V Puri Rajiv Pushpendra R. Srinivasan Radhakrishna Pillai G Radhakrishnan M Radhakrishnan S Raghunathan P K Raj Mohan S Rajashekar K Rajeev Jaiswal Rajeeve B Rajeshirke Rs Ram Mohan Ram Singh Rama Prasad B V Ramachandran G (Ms) Ramachandran R Ramadorai N Ramakrishnan M S Ramakrishnan N. Raman V S Raman V V Ramanakumar A Ramanan J P S Ramaswamy Rajamani Ramesh S Rana Basudev Ranganath R Ranjan V Rao V N Raorane M R Raut N D Ravi K Ravi K Ravi K Ravi Kumar K P Ravi V Ravichandran J Ravindran C Ravindran C P Ravindran K N Ravitej P V Rayar S Reddy D M Reddy P S Rehil M C Riyazuddin K M Ronald Noronha Roy Bose Sumita (Ms) Roy Soumesh Sabu Jose Sabu Koshy Sagar Madhu (Ms) Saha S Saini D K
Qualification P.G Diploma,B.E. M.B.A,B.Sc(Engg) B.E. B.E. ACA,B.Com Diploma ,B.E. FCA,B.Com. M.Sc. Diploma ,B.A B.Sc(Engg). AICWA,FCA B.E. M.Sc,M.B.A. B.Tech. B.Sc,M.Sc. M.Sc,M.A.M. M.B.A,B.Com. M.B.A,B.Sc(Engg). P.G Diploma,B.A. B.E. B.Sc(Engg). B.E. Diploma, B.Sc,M.B.A P.G Diploma,M.Sc. B.Sc. B.Sc(Engg). B.Sc. P.G Diploma,B.Tech. B.Sc,B.Tech P.G Diploma B.E. B.Sc(Engg) M.Tech,M.B.A. B.Sc. M.Tech AICWA,ACS Diploma in Engg,B.E. Diploma ,B.Sc(Engg). B.Tech. B.Sc Diploma ,B.Sc. ACA,B.Com. B.E B.Com, ACA, ICWA B.Sc,MMM B.Sc,M.A ACA,ACS B.Sc. B.Sc(Engg) Diploma ,B.Sc. B.A,M.M.M. B.E. M.Sc B.Tech. Dipl. in Mgt,P.G Dipl. SSC, Diploma in Engg. B.E. Dip(Eng),PG Dip., AMIE P.G Diploma,B.Sc B.A,ACA B.E. B.A. B.Sc(Engg). B.Tech. B.E. B.A,M.L.S. Diploma in Mgt,M.Sc B.Sc,M.A. P.G Diploma, AICWA B.Tech,B.Sc. ACA,B.Com. Diploma in Mgt,M.A. B.E,M.B.A. M.B.A,B.Sc(Engg). Diploma ,M.A. B.E,Diploma in Engg. Diploma in Mgt,B.Sc.
Age 49 53 56 47 44 49 52 50 50 58 49 50 50 51 49 54 51 51 60 52 49 49 46 51 54 52 58 59 53 54 44 36 51 51 57 53 60 54 50 55 51 46 53 51 49 53 47 52 58 51 49 60 54 51 51 56 46 50 49 56 55 60 59 45 60 58 57 57 51 53 57 58 52 49 53 37 59
Designation / Nature of Duties Head OEM (Lubes), HQ GM (Sales) Retail HQ Manager Operations [Retail], East Area Marketing Manager, Chennai Sr. Finance Manager (Pricing & Insurance), CO Chief Manager (Estates & Admin) Chief Finance Manager Territory Manager (Retail) Mumbai Chief Manager (HRS) - North Director & Chief COO Chief Finance Manager (Shared Services), HQ Chief Process Manager (PP) Manager(Quality Control) Project Leader, Gummidipoondi Project Sr Mgr (IS Current & Transition Systems),CO Team Member-IIS-ERP Deputy Manager General Manager (Ops.) Chief Manager (HR) Entities Manager, Import Facilities, JNPT Sr.Manager Engineering (MMMMPL) Noida Chief Manager (Shift Admn) Sr.Manager Lubricants Channel (Retail) - Nr Sr. Manager (IIS Services) North Sr. Manager Logistics, LPG West DGM Sr Mgr. Business Devpt. (Beyond LPG) South Director ( Marketing ) TM (Indl) Chennai Chief Manager(P&CS) Sr Manager (CCR Project) Territory Manager (LPG) Chief Manager(Estate) Sr Ops Officer (S&B) Sr. Manager Highway Retailing, North ED (Finance) Special Duties (On Lien) Sr Manager Utilities Inspection DGM On Deputation To BORL GM On Special Assignment To BORL Chief Manager Compliance (Mktg. Corporate) Chief Manager (IIS Applications), Sewree Chief Finance Manager (CPO), Sewree Territory Manager, Trivandrum LPG DGM Finance (Mgmt. Accounts), CO Territory Manager (LPG) Sr Manager Distribution, South Executive Ass.To C&MD, Mumbai ED (Lubes) G.M.(Highway Retailing), RHQ G M Finance (Retail) HQ Coordinator Business Information (Avn) DGM Logistics LPG CO Manager (LPG) Chief Manager (Corrosion) DGM (Procurement & Contract Services) Manager (Manufacturing) Senior Manager (Maintenance) Manager (Maintenance) Sr Finance Manager, Retail HQ Executive Director (Refineries Finance) Chief Proj. Manager (RMP) Senior Manager (Projects) GM (Projects) Chief Manager (S&B) DGM (Project Technical) ED (I&C) Chief Manager (Supplies), Retail Logistics DGM Logistics (Retail) - North Sr Finance Mgr (IT) Chief Mgr. Pr&Brand Executive Director ( Audit ) DGM HR (LPG) - HQ Chief Manager (Maintenance) Senior Manager BORL DGM (ESE) CO Dy Manager Ops (Utilities) Ch. Manager Dealer Training - North
Date of Experience Total commencement of (No. of years) Remuneration employment Rs. 09.07.1984 27 2542538.98 23-11-1981 31 2573479.41 07-05-1980 31 2435511.80 01.01.1987 23 2433521.44 20.05.1991 21 2422062.43 17.08.1983 28 2592002.43 08.05.1987 23 2429217.37 01-09-1982 28 2679934.65 01-09-1982 28 2493183.85 01.10.1976 34 2585358.59 03-08-1987 26 2460878.42 03.12.1984 25 2706351.31 01.07.1984 26 2537024.87 20.08.1984 28 2560385.70 22-09-1986 26 3049187.39 01-09-1982 30 2747402.61 05.06.1987 23 2699848.27 11.10.1984 25 2840958.18 01.10.1979 30 2568938.90 05.11.1984 28 2611109.09 06.04.1987 23 2459303.74 01.08.1985 25 2442536.22 16.02.1987 24 2431292.16 01-11-1983 28 3431732.17 30-09-1981 29 2481452.86 14.09.1983 27 2660726.21 04-09-1978 35 2585405.99 15-07-1977 37 2828795.54 01-09-1982 30 2526415.20 02.11.1983 26 2589231.28 01.09.1989 21 2503666.32 17.06.1996 16 2417819.53 28.12.1983 26 2502635.02 16.04.1984 27 2493899.43 09-06-1980 34 2613455.01 19-12-1983 29 3727813.18 21.01.1987 38 2594171.18 01.04.1980 30 2694433.01 01.12.1983 26 3104350.99 28-04-1986 34 2456515.57 24-06-1980 30 2455664.62 16.10.1989 28 2690085.09 01.09.1982 28 2411555.75 16.04.1987 25 2415749.33 16.02.1987 26 2610996.06 10-01-1983 27 2546343.18 28-09-1987 24 2604764.36 09-06-1980 30 3068218.32 04-05-1983 35 2726114.76 26.08.1985 27 2702849.16 02.07.1984 26 2475545.00 06-06-1980 40 2648999.66 12.02.1979 31 2401366.96 01.01.1982 28 2520764.98 12.08.1983 29 2495202.73 01.04.1979 31 2526506.29 01.06.1989 21 2554870.85 17.08.1982 28 2771268.52 21-09-1983 29 2413730.10 03-09-1979 35 2974795.17 07.11.1985 24 2524907.00 17.10.1977 32 2537847.83 01.10.1976 34 2962210.76 16.12.1987 22 2501289.51 10.10.1983 26 4199025.31 14.07.1986 31 3052990.26 01-09-1982 31 2408185.70 07.05.1986 33 2484866.76 01-09-1982 28 2571573.07 08.01.1997 30 2761994.46 03-09-1979 38 2509685.82 17-07-1986 35 2724558.49 04.10.1984 26 2482680.81 21.12.1990 19 2654564.20 31-03-1983 32 2578832.82 16.08.1995 15 2573303.41 02-05-1980 36 3121487.88
Particulars of last employment Escorts Ltd Hindustan Paper Meteoke (I) Pvt Infin Consultants Maharashtra Water S S Board KSIDC, Trivandrum
Dodsal Pvt Ltd I.I.T., Madras IIPS, Deonar,Bo K.N.R. Kutty Toc H Public School Simplex Concret M.M. Bhagat & Co International Data Processing Ltd. Calico Mills L&T Southern Indl.Polymers Pvt. Ltd Usha Martin Ind Century Textile DST And SCRC Alloy Steel Plant Bharat Heavy Plant S.G. Phamaceuticals Jaysinth Dyeche Fraser & Ross Dalmia Dairy Kalyaniwalla & Mistry Bharat Pumps Price Water Hou National Dairy Ceat Tyres
Divisional Engg Fraser & Ram Dodsal Pvt. Ltd. Hindustan Insectides Fact Standard Batter Mcdowell & Co. Pharmed Pvt. Lt IOC Mookerjee Biswas HFC Ltd.Haldia Hindustan Paper Corpn. Indian Standard Crotech System
Annual Report 2009-2010
75
Sr Name No. 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 578 579 580 581 582 583 584 585 586 587 588 589 590 591 592 593 594 595 596 597 598 599 600 601 602 603 604 605 606 607 608 609 610 Saitu C Sakalker A K Saksena B P Samanta A B Sanzgiri Dipti (Ms.) Sanzgiri G M Sarangdhar A G Sarkar Samir Ranjan Sarnobat S Sasikala. I Saxena P K Seetharaman Mohan Sengottaiyan P Seshadri K V Seth A K Shah A R Shah J S Shankar Abhay Shankaran K S Shanmugam O Sharma Ashok Kumar Sharma Pramod Sharma R K Sharma Rajeev Sharma Rameshwar K Sharma S C Sharma Sharad Kant Sharma V B Shastri Padam Lal Shenoy K V Shinde R T Shingrut A R Shrivastava Sudhir K Shukla N Shunmugam S Shyam Radhey Siddhartha B R Sikdar Prabal Sikka Rajiv Simon George M T Singh Arun Kumar Singh Brij Pal Singh C P Singh Manmohan Singh R K Singh R P Singh Ravi Pratap Singh Satyapal Singh Shashi K Singh Shyam Nandan Singh Tejpal Singh V K Singhal R K Sinha Ashok Sinha Bijay Kumar Sivakumar K Sokhi J S Solanki Narendra Singh Somaiya K Soman C K Somanath T Somasekhar S Somasundaram R Somaya M M Sonawane V D Sreedevi B Sreekumar P N Srikanth S Srinivas Rao I Sriniva N G Sriramesh Kumar N Srivastava Anil Srivastava P C Subba Reddy Uppuluru V Subhash Chander Dua Subramanian H
Qualification
Age
Designation / Nature of Duties Chief Manager Lubes Channel (Retail) South Sr. Manager (Environment Projects), HSSE Mgr In-Charge-Kota Depot Sr. Manager (Int. Audit), Mumbai Refinery ED (HRD) Chief Maint. Manager (Planning) Mgr. (IS Refy Sys) Manager Quality Assurance Lab (Lubes) South Chief Product Despatches Manager Executive Director (Vigilance) Territory Manager(LPG), Loni Director (HR) Chief Manager(OM&S) ED (Mumbai Refinery) Chief Manager, (Coordination) Chief Manager (CCR Project) DGM (Talent Management) Sr. Mgr Engg (Instrumentation), Noida DGM ( Site Security ) Manager Ops, Devangonthi Depot Chief Manager Bus. Dev. (I&C), HQ GM (Coord) And Executive Assistant To C&Md Ch Maint Manager (Instr) Chief Manager Bus. Dev. (LPG) HQ. TC - Operations (LPG) Manager(Ops) I/C GM Sales ( LPG ) HQ Chief Manager, Pipeline Projects Manager Materials Co-Ord. (E&P), West GM (Retail) Southern Region Team Member (ERP CC), Sewree DGM HR (Compensation & Benefits) Sr Manager (IT) Sr.Manager Elect.(E&C) Sr Manager HSSE(LPG)South Manager Distribution - North AM (Indl) Nellore Sr Manager Mktg Coordn (Indl), Bhopal AMM (Retail), Orissa Chief Manager (Fire & Safety) Chief Procurement Officer GM (Operations) Retail Sr Manager Installaton, Mughalsarai Director (Commercial) - Indraprastha Gas Ltd. Director (Refineries) Manager Chief Engg. Manager, West Station Manager Jaipur AFS Sr. Manager (Mkt. Corp.), CO Retail Fleet Service Manager, North Sr Manager (ESE) - North Sr Ops Officer (Prod Desp) Sr. Mgr. Construction (Retail) - North C & MD Sr. Mgr., Infrastructure Planning & Devpt.- NR DGM Audit GM (Retail Initiatives) RHQ Manager Institutional Sales Chief Manager Transport (South) DGM GM - Talent Management Chief Manager (Indust.) AMM (Retail)-WB & NE DGM (Brand & PR) Chief Manager Distribution (Retail), West Senior Manager (Benefits & Admn.) Senior Manager (Info. Systems) TM (Retail) Chennai GM (LNG Marketing) CFM (Retail) South Sr Mgr Inst. Sales&Key Accounts (Lubes) Territory Manager (LPG) - Udaipur GM (Retail) West Mgr Mktg. Coord (Indl) Bangalore Manager Coco, BP-44, Gurgaon Dy Manager - LPG
B.Com,M.Com. 52 B.E. 55 B.E 52 B.E. 50 ACA,B.Com. 50 B.E. 50 Diploma in Mgt,B.Sc. 51 B.Sc,M.Sc,M.C.A. 51 B.E. 57 M.Sc., MBA 50 B.Sc,B.E,BDC 48 B.E,M.B.A. 59 P.G Diploma,B.E. 47 B.E. 59 M.Sc 60 B.E. 49 B.E,M.A. 49 B.Sc,M.Sc. 49 M.Sc,P.G Diploma 54 11th Std 52 B.E. 50 M.Sc. 52 NCTVT Certificate,B.Sc. 56 M.Sc. 52 B.E. 43 B.Sc,M.Sc. 53 Diploma in Mgt,B.Sc. 51 B.E. 53 B.A. 52 Diploma ,B.Sc 54 B.Sc. 45 B.Sc,M.L.W. 58 Diploma ,B.E. 47 Diploma ,B.E. 46 B.E,M.Tech 52 B.Sc,B.Pharm. 54 B.Sc. 55 B.Com. 49 B.Tech. 46 B.Sc(Engg). 55 B.Sc(Engg) 48 B.Sc(Engg),B.Sc (Honours) 55 B.Sc 54 B.Sc(Engg) 54 B.Tech. 57 B.Tech. 56 B.Sc. 49 B.E. 41 B.Sc,M.Sc. 47 M.Sc. 51 B.A. 57 M.Sc. 50 B.Sc(Engg) 53 P.G Diploma,B.Tech. 58 B.Sc,B.Sc(Engg) 57 AICWA,ACA,B.Com. 50 P.G Diploma,B.Tech. 57 M.Com. 50 B.Sc. 54 M.Tech,M.B.A. 53 B.Sc,M.Sc. 57 M.Tech,M.B.A. 52 B.Sc,M.B.A. 51 B.Sc. 51 M.Sc,B.Sc. 55 P.G Diploma,B.Sc,M.B.A. 58 P.G Diploma,M.B.A. 54 P.G Diploma,B.E. 45 Diploma in Mgt,M.Sc. 51 P.G Diploma,M.Com. 58 B.Sc,M.B.A. 49 B.E. 49 B.E,B.Com. 54 B.Sc. 49 P.G Diploma,B.A. 58 B.Com. 48
Date of Experience Total commencement of (No. of years) Remuneration employment Rs. 16-05-1983 29 2519224.34 01-03-1978 34 2745820.35 16.12.1985 28 2431230.66 02.09.1983 27 2412146.20 01-12-1983 27 3002719.86 01.12.1983 26 2468740.17 27.07.1981 29 2478621.56 19-09-1983 27 2548438.96 27.12.1976 33 2678429.69 03-02-2007 24 4207851.19 02.02.1987 23 2401573.90 03-01-1983 37 2460089.84 03.05.1989 21 2422882.78 12.12.1990 35 3076819.12 15-10-1982 38 2403046.01 13.12.1983 26 2440105.34 05.11.1984 27 2557179.41 01.01.1987 23 2479462.83 12-05-1981 30 2709721.93 13-05-1981 29 2506255.08 16.12.1985 26 2585703.57 18-01-1982 30 2999548.03 28.04.1980 32 2841535.57 10-01-1983 31 2650431.50 03.09.1990 20 2465680.49 01-09-1982 28 2482135.04 26-06-1980 30 2725612.35 01-09-1982 29 2559161.43 02.02.1988 31 2910085.91 01-09-1982 33 2697357.02 04.07.1988 24 2617249.73 04.11.1986 32 2770587.10 04.02.1985 27 2562303.21 28.10.1985 26 2473560.72 01-09-1982 28 2471481.89 02-05-1983 31 3135125.00 16-05-1983 27 2765804.00 01.01.1987 23 2576839.32 19.09.1988 22 2453137.24 01.08.1982 28 2434353.76 01.04.1985 25 2997175.75 15-02-1978 32 2697152.28 01-09-1982 33 2417830.76 15-02-1978 33 2659594.99 20.06.1978 34 3391094.69 03.06.1985 25 2656480.31 04.02.1985 25 2675979.00 23.12.1996 13 2436696.63 02.03.1987 23 2669566.76 06.04.1987 23 2836099.54 20-04-1981 29 2610667.93 24.11.1983 26 2611327.07 10-01-1983 31 2711276.93 01-08-1977 37 3278168.27 01-09-1982 31 2417911.08 31-07-1987 26 2714481.05 15-06-1981 32 2451805.27 01-06-1981 29 2877458.28 15-05-1981 32 2465547.67 14.09.1983 27 2980867.38 21-05-1980 30 2795900.17 01.12.1984 25 2572458.78 10-01-1983 28 2602319.39 09-03-1987 31 2738490.35 10-01-1983 33 2676837.63 06.07.1978 32 2776827.73 01.06.1979 31 2564244.11 16.02.1987 23 2427434.13 01-09-1982 28 2572884.66 19-06-1981 36 3159350.22 02.02.1987 23 2463901.30 02.03.1987 24 2414983.58 13-02-1978 32 2523114.50 01-09-1982 29 2452489.18 06-08-1982 34 2415770.33 18.03.1986 24 2402089.16
Particulars of last employment Sipcot Jyoti Ltd., Delhi Automobil Sarah S Engineer
ITSC, Additional Bench BHEL Aramco Karnatka Consumer Prod. Ltd. Gannon Dunkerle Gordon Woodroff Pvt. Ltd Texmaco Ltd. M.A.S. Services Taylor India LIC Central Bank of India Govt. Engg College Associated Cements Richardson Hindustan Charico Color Cards Deepak Fertilizers Gen.Electrodes Larsen & Toubro Swastik Pharma Central Water Commission
Delhi Telephone Leader Engg Works Hindalco PWD
NEI Ltd. International Comp. Pvt. Ltd. Tata Iron & Steeel Bharat Heavy Electricals Godrej & Boyce Cordite Factory Vikram Sarabhai Space Centre Indo National Ltd Mahindra & Mahindra Central Testing Maharani College
Ford, Rhodes Parles & Co. Indian Rayon Co Ravindra Enterprises Dainik Veer Prattap
76
Bharat Petroleum Corporation Limited
Sr Name No. 611 612 613 614 615 616 617 618 619 620 621 622 623 624 625 626 627 628 629 630 631 632 633 634 635 636 637 638 639 640 641 642 643 644 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 661 662 663 664 665 666 667 668 669 670 671 672 673 674 675 676 677 678 Subramanian K H Subramanniam S Subramoni Iyer M R Sundaram P L Sundaran V Sunderajan S S Sunil Chaudhary Suresh John Suresh P K Suresh V Sureshkumar K Swaminathan R Talwadkar N S Tandon G G Tandon S K Tandon V N Taneja M K Tankkar V S Teltumbde A B Thampi P K Thirunavukkarasu S Thomas Chacko Thomas J K Thomas Zachariah Thombare N M Thussu K L Tilwanker A Tipnis K U Tiwari B K Tomy Mathews Tripathi Y P Trivedi K A Tupe R B Unnikrishnan A Upadhyay U C Vaidya B N Vaidya P H Vairamohan M Varadarajan S Varghese P G Vartak V Y Vasantha Kumar P K Vasudev G (Dr) Vedagiri J Venkatesan K Venkatesan S P Venkateswaran S Iyer Venugopal T Venugopala Kurup V Verma A P Vijayagopal N Vijayakar P J Vijayakumar S Vijayan C S Viswanathan K Viswanathan M Viswanathan P S Visweswaran S R Vyawahare A D Wadhawan R Wadhwa V D Wankhede G S Warrier R E Watts L K Widhani Monica (Ms) Yadav H S Yash Pal Zafar Ali S
Qualification B.Sc,M.Sc. Diploma ,M.B.A B.Tech. B.Sc. B.A,M.B.A, Diploma ,B.Tech. B.E B.E,M.B.A. ACA,B.Com. B.E. M.A,B.Sc,M.A. B.Com SSC, NCTVT Certificate B.E,L.L.B. B.Sc,M.B.A. B.Sc,M.A. B.E Diploma in Mgt,B.Sc. BE,Ph.D,P.G Diploma B.Sc(Engg). B.E. M.B.A,B.Sc(Engg). M.A. B.Sc (Engg), Diploma B.Sc. B.E. B.E,MMM M.Sc. B.E,M.Tech,M.A. B.Tech. B.Com. Diploma in Mgt,M.Sc. B.Sc,B.E. B.Tech. P.G Diploma,M.Sc. M.Sc. B.Sc. Dipl. in Engg,P.G Dipl. ACA, AICWA. B.Sc(Engg). M.Sc. B.Sc,M.B.A. M.Sc,Ph.D. B.Tech,AICWA B.Com. P.G Diploma,M.A,M Phil. AICWA,B.Com. B.E. M.Tech. Diploma in Mgt,L.L.B,M.A ACA,B.Com. M.Sc. B.Sc,L.L.B. B.Sc,M.Sc. B.Sc(Engg). Diploma, B.Tech. M.Sc,Ph.D. B.Sc(Engg). Diploma ,B.Tech. B.E. NCTVT Certificate,B.A. B.E. B.Sc,L.L.B,BGL. B.A. B.Sc,ACA B.E,M.Tech M.Sc. B.Sc,M.A.
Age 57 56 46 49 56 51 51 47 54 48 59 52 55 58 55 54 46 54 60 52 47 58 55 57 60 59 55 54 60 55 55 50 54 52 51 56 57 54 54 53 50 54 59 49 52 52 56 41 51 48 49 52 53 53 49 59 56 50 42 51 49 56 59 50 51 59 59 59
Designation / Nature of Duties Regional Manager (Lubes) South Manager (Safety & FI) Chief Manager (Manufacturing) Sr Manager Cherlapalli Site Manager (Personnel) DGM On Deputation To BORL Manager On Deputation to CHT, Delhi Chief Manager (Shift) DGM Chief Process Tech Manager Manager Operations Chief Logistics Manager (Retail) South Dy Manager (LPG) DGM (Utilities) Manager (Audit) Chief Manager (Mktg Services) Project Leader - (Retail/LPG) E & P, North Sr. Manager Lubes Channel (Retail), West Managing Director - Petronet India Ltd DGM Manager DGM Territory Co-Ordinator, Ernakulam Advisor (Projects) At NRL Chief Manager (IIS Services) Director (Commercial), Mngl Sr. Manager Engg. (E&P), West Sr Manager (MOT) DGM (Occupational Health Safety) General Manager (Operations) Chief Manager -Sabarmati Gas Ltd Chief Manager (IT) Sr. Maint.Manager (Instr) DGM Chief Manager (HR) - Lubes Manager Qlty. Assurance Lab (Lubes), Sewree Manager Shift Ops-Mumbai Sr. Manager (Audit), Mumbai ED Corporate Finance Senior Manager (Advisory) Strategy Manager Ops.&HSSE (Lubes), Sewree Regional Facilitator, Bangalore DGM (QCC) Chief LPG Equipment Procurement Mgr, Sewree Sr Finance Manager (SS) South Dy Manager Tondiarpet Installation HRS-South Team Member (ERP) Manager (Design Engin.) DGM Sr Manager CSSC(SDCV) South Chief Finance Manager Chief Manager LPG Regional Co-Ordination, South General Manager (P&A) Chief Manager (QC) South Senior Manager Chief Manager (Energy & Enviromnent) Chief Manager (Research) Senior Manager(P&CS) Sr. Manager (Env Control) Ch Manager Inspection Manager Maint.(M&C) GM (Operations), MMPL Sr Manager (Refinery Co-Ord) KRL Sr.Manager(GuestRelations)-HRS(Admn)-North GM (Urban Retailing) DGM (City Gas Projects, Gujarat) E&P Noida Chief Mgr. (Aviation) - Operations Chief Manager (Liason) - Retail, Noida
Date of Experience Total commencement of (No. of years) Remuneration employment Rs. 10-01-1983 33 2635557.88 03.02.1992 18 2418691.80 03.05.1989 21 2993672.82 17.03.1987 23 2594909.69 30.08.1983 27 2520936.50 15.09.1983 28 2902630.05 20-10-1986 23 2706370.87 20.05.1989 21 2978382.16 21.05.1984 26 2733711.60 01.01.1986 26 2891832.13 16-05-1983 27 2484806.64 28-05-1980 30 2413311.54 20.06.1979 31 2421165.97 22.08.1988 22 2677188.12 25-05-1981 35 2672581.07 22-11-1982 27 2591610.68 02.03.1987 23 2410057.97 17.01.1979 34 2575392.62 11-04-1983 38 3180338.99 14.09.1983 27 2694625.24 09.01.1987 23 2427366.72 11.04.1983 27 2784401.25 14.03.1984 34 2885568.55 14.07.1983 32 2675500.56 04-06-1981 36 2509986.78 24.09.1985 38 2717620.94 01-09-1982 31 2540223.44 15.12.1983 29 2445326.58 27-06-1986 36 3197462.75 01.03.1979 31 2597413.26 08-06-1981 34 2602254.34 17-12-1981 29 2706423.19 19.05.1992 30 2575902.61 14.09.1983 27 2455697.86 02.07.1984 29 2703489.92 03.11.1982 32 2459554.92 05.03.1979 32 2611769.36 16.12.1985 33 2475378.83 26.12.1983 30 2814256.46 01.01.1991 19 2544075.33 23-07-1984 27 2609477.16 01-09-1982 28 2468288.45 11-05-1981 30 2640103.59 18.06.1984 26 2714018.83 04.09.1978 32 2451407.38 08-09-1982 28 2454001.50 01.02.1980 30 2677134.13 01.12.1993 16 2555303.88 04.10.1984 26 2655231.91 02.03.1987 23 2473490.06 16.03.1987 23 2757043.83 01-09-1982 30 2463768.26 16.02.1995 15 2845805.08 21-05-1980 30 2726725.51 20.05.1986 24 2612405.89 24.05.1982 28 2465172.18 19.04.2001 29 2450128.59 01.08.1985 25 2729404.31 17.09.1990 20 2510746.74 17.09.1984 30 2563647.41 06.09.1982 28 2535476.96 07-12-1982 34 2813482.43 05-10-1981 34 2631290.67 21-09-1987 31 2798049.58 02.05.1985 25 3264085.77 25-10-1982 36 2602285.76 02-05-1981 35 2631927.82 01.02.1991 38 2622100.23
Particulars of last employment Madras Telephones NTPC/SSTPS Rubber Board Dunlop
Saurashtra Chemicals
Feddels Loyal Corp Dempo Steamship Khandelwal Ferr. Alloys Cominco Binani Zinc Ltd. Union Carbide India Ltd. Union Carbide India Ltd. Indian Post & Telegraph Tata Consultancy Vijay Tanks & Vessels Pvt. Ltd. HPCL TELCO The Ahmd.Mfg & Calico Hindustan Organic Chemicals Sawrajay Sandes Universal Silic Sub Reg Emplyme Air India IAEC Boilers BRPL ILAC, Chemicals South India (A) Corpn. IIT
Grasim Industries
Chikkaiar Navekar College
CRBL Synthetics & Chemicals Ltd Shipping Corpn Office of The MAB/DCA(WR) Bank of Baroda Tata Consultancy All India Radio P & NG
Notes : 1. The remuneration includes, apart from regular salary, Company’s contribution to Provident & Pension Funds, medical expenses. 2. There is no employee who is in receipt of remuneration in excess of that drawn by Chairman & Managing Director / Whole-time Director / Manager and holds not less than 2% of the equity shares of the Company. 3. The above employees are not related to any Director.
Annual Report 2009-2010
77
78
ANNEXURE TO THE DIRECTORS’ REPORT ANNEXURE D
ANNUAL STATEMENT SHOWING THE REPRESENTATION OF SCHEDULED CASTES (SC), SCHEDULED TRIBES (ST) AND OTHER BACKWARD CLASSES (OBC) AS ON 1st JANUARY, 2010 AND NUMBER OF APPOINTMENTS MADE DURING THE CALENDAR YEAR 2009
NAME: BHARAT PETROLEUM CORPORATION LTD. Number of Employees (As on 1.1.2010) SCs 2 782 493 540 494 149 252 10 1 -204 356 54 5 2 28 6 187 224 ----269 413 173 31 11 22 22 74 143 -3 4 5 6 7 8 9 10 STs OBCs Total SCs STs OBC Total SCs 11 1 9 11 -By Direct Recruitment By Promotion STs 12 -2 1 -Total 13 2* 5+ 2@ -Number of appointments made during the calendar year 2009 By Other Methods SCs 14 ----STs 15 1 ---OBCs 16 -----
Bharat Petroleum Corporation Limited 55 2339 812 1249 237 30 3 4 --37 -13 -56 -239 -21 -3 -9 ---1
Groups
Total
1
Group-A
4781
Group-B
3427
Group-C
3319
Group-D (Excluding Safai Karamcharis)
2392
Group-D (Safai Karamcharis)
---
Total
13974
* 2 Sportspersons recruited in Management - Group 'A' (entry level)
+
2 Sportspersons recruited in Group 'B' & 3 Sportspersons promoted within Group 'B' (Non-Management)
@
2 Sportspersons promoted within Group 'C' (Non-Management)
ANNUAL STATEMENT SHOWING THE REPRESENTATION OF SCHEDULED CASTES (SC), SCHEDULED TRIBES (ST) AND OTHER BACKWARD CLASSES (OBC) IN VARIOUS GROUP 'A' SERVICES AS ON 1ST JANUARY, 2010 AND NUMBER OF APPOINTMENTS MADE IN THE SERVICE IN VARIOUS GRADES DURING THE CALENDAR YEAR 2009
NAME : BHARAT PETROLEUM CORPORATION LTD. Number of Appointments made during the calendar year 2009 By Direct Recruitment Total 6 171 2 173 31 11 22 1 22 30 11 22 22 1 1 7 8 9 10 11 SCs STs OBCs Total SCs STs 12 By Promotion By Other Methods Total 13 2* 2 SCs 14 STs 15 1 1
Pay Scales (in rupees) SCs 3 174 199 190 137 57 16 6 1 2 0 0 782 269 413 0 0 0 0 0 0 1 0 0 0 2 0 13 2 37 8 72 76 87 155 57 172 4 5 STs OBCs
Representation of SCs/STs/OBCs (As on 01.01.2010)
Total
1
2
24900-50500
1005
29100-54500
1225
32900-58000
1005
36600-62000
666
43200-66000
481
51300-73000
221
51300-73000
104
51300-73000
47
62000-80000
22
75000-100000
4
80000-125000
1
Annual Report 2009-2010
TOTAL
4781
* 2 Sportspersons recruited in Management - Group "A" (Entry level)
79
80
Direct Recruitment - 2009 No. of Vacancies Reserved OH 5 6 7 8 9 10 11 12 13 14 VH HH OH Total VH HH OH VH HH OH 15 No. of Appointments made No. of Vacancies Reserved PROMOTION - 2009 No. of Appointments made Total 16 VH 17 HH 18 OH 19 HH 4 2 4 7 6 19 159 2 2 3 237 30 10 1 2 35 1 54 1 69 25 2 2 2 173 22 74 143 239 1 1 1 1
ANNUAL STATEMENT SHOWING THE REPRESENTATION OF THE PERSONS WITH DISABILITIES AS ON 1ST JANUARY, 2010 AND DIRECT RECRUITMENT/PROMOTION DURING THE CALENDAR YEAR 2009
NAME : BHARAT PETROLEUM CORPORATION LTD.
GROUP
Number of Employees (As on 01.01.2010)
Bharat Petroleum Corporation Limited
TOTAL
VH
1
2
3
"A"
4781
4
"B"
3427
7
"C"
3319
14
"D/DS"
2447
6
TOTAL
13974
31
(i) VH stands for Visually Handicapped (persons suffering from blindness or low vision)
(ii) HH stands for Hearing Handicapped (persons suffering from hearing impairment)
(iii) OH stands for Orthopaedically Handicapped (persons suffering from locomotor disability or cerebral palsy)
There is no reservation for persons with disabilities in case of promotion to Group A and B posts. However, persons with disabilities can be promoted to such posts, provided the concerned post is identified suitable for persons with disabilities.
There are no promotions within Group "D".
ANNEXURE TO THE DIRECTORS’ REPORT ANNEXURE E ADDENDUM COMMENTS OF THE COMPTROLLER & AUDITOR GENERAL OF INDIA
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619 (4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF BHARAT PETROLEUM CORPORATION LIMITED FOR THE YEAR ENDED 31 MARCH, 2010 The preparation of financial statements of Bharat Petroleum Corporation Limited for the year ended 31 March, 2010 in accordance with the financial reporting framework prescribed under the Companies Act, 1956 is the responsibility of the management of the company. The statutory auditors appointed by the Comptroller and Auditor General of India under Section 619 (2) of the Companies Act, 1956 are responsible for expressing opinion on these financial statements under Section 227 of the Companies Act, 1956 based on independent audit in accordance with the auditing assurance standards prescribed by their professional body the Institute of Chartered Accountants of India. This is stated to have been done by them vide their Audit Report dated 27 May, 2010. I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under Section 619 (3) (b) of the Companies Act, 1956 of the financial statements of Bharat Petroleum Corporation Limited for the year ended 31 March, 2010. On the basis of my audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to Statutory Auditors’ report under Section 619 (4) of the Companies Act, 1956. For and on the behalf of the Comptroller and Auditor General of India Sd/SARIT JAFA Principal Director of Commercial Audit & ex-officio Member, Audit Board II, Mumbai Place : Mumbai Date : 25th June, 2010
Annual Report 2009-2010
81
PERFORMANCE PROFILE
2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-011999-00 1. Crude Oil Processed (000 Tonnes) Imported Indigenous TOTAL 2. Production Quantity (000 KL) Light Distillates % Middle Distillates % Heavy Ends % 3. Fuel and Loss as % of Crude Processed 4. Aromatics Production (MT) Benzene Toluene 5. Market Sales (MMT) 6. Lubricants Production (MT) 7. Market Participation % 8. Marketing Network Installations Depots Aviation Service Stations Total Tankages (Million KL) Retail Outlets LPG Bottling Plants LPG Distributors LPG Customers (No. Million) 9. Manpower (Nos.) 10. Sales and Earnings (Figures in Rs. Crores) i) Sales and Other Income * 127884 130118 113936 102428 82935 63343 52983 47584 42560 47153 35891 12 129 30 3.40 8692 49 2187 28.3 13900 12 120 23 3.33 8402 49 2117 26.6 14016 12 126 22 3.32 8251 48 2137 25.25 14006 12 121 21 3.27 7537 48 2129 23.51 13970 12 121 20 3.01 7332 45 2123 22.24 13876 12 123 19 3.05 6426 44 2061 21.32 12029 12 129 19 3.08 5530 42 1922 19.43 12434 17 153 19 3.13 4854 40 1828 16.99 12494 19 171 19 3.23 4711 40 1729 15.28 12586 19 164 19 2.94 4562 38 1421 13.80 19 146 19 2.88 4489 32 1345 11.40 57742 23265 27.70 79653 28375 27.16 88313 103585 26336 25.79 39544 23.45 61335 43051 21.63 44243 10042 21.03 43178 12759 20.37 69798 20013 19.86 56360 16610 19.15 99875 21.5 75293 76351 16344 19569 19.35 18.68 14126 6281 20407 24449 32.80 52.88 14.32 5.9 13143 6802 19945 22820 30.46 53.67 15.87 6.6 13904 7042 20946 23960 30.73 54.13 15.14 6.6 13465 6317 19782 22154 28.20 53.55 18.25 6.6 11584 5653 17,237 19795 31.97 50.43 17.60 6.7 5093 4045 9138 10314 31.35 49.89 18.76 5.9 4543 4214 8757 10210 33.27 49.13 17.60 5.7 3230 5481 8711 10291 34.32 50.73 14.95 5.6 3587 5183 8770 10355 33.51 50.45 16.04 5.6 2743 5919 8662 2546 6323 8869
10348 10643 34.74 49.43 15.83 5.4 32.69 53.45 13.86 4.9
209301 151788 161957 116337 100461 106287 101245 112730 22.38 22.7 22.7 22.6 22.4 21.9 22.1 22.0
96624 100396 21.4 20.7
12670 12638
ii) Gross Profit before Depreciation, Interest & Tax iii) Depreciation iv) Interest v) Profit before Tax vi) Tax vii) Excess / (Short) provision for Taxation in earlier years written back/provided for viii) Profit after Tax # 4619 1242 1011 2366 824 (4) 1538 4246 1076 2166 1004 261 (7) 736 4368 1098 673 2597 1010 (7) 1581 4204 904 533 2768 955 (7) 1806 1423 768 247 407 117 1 292 2092 596 140 1356 427 37 966 3302 561 105 2636 928 (13) 1695 2720 481 246 1994 728 (15) 1250 2114 481 307 1327 491 14 850 2033 665 256 1113 293 13 833 1738 615 185 937 233 (2) 702
* Figures from 1986-87 includes Sales to Other Oil Companies. # After adjusting prior period tax.
82
Bharat Petroleum Corporation Limited
1998-99 1997-981996-971995-961994-951993-94 1992-93 1991-921990-911989-901988-89 1987-881986-871985-861984-851980-81
1976
1731 7205 8936 10861 34.85 53.90 11.25 4.5
1222 6720 7942 9648 34.47 54.29 11.24 4.8
1486 6108 7594 8986 32.54 55.23 12.23 4.8
1110 6240 7350 8816 33.27 54.74 11.99 5.6
1891 5491 7382 8788 32.29 54.62 13.09 5.4
2610 4596 7206 8644 31.20 53.59 15.21 4.7
2685 4550 7235 8653 31.49 53.88 14.63 4.2
2062 4900 6962 8372 32.29 54.95 12.76 4.2
1397 5514 6911 8329 30.87 55.70 13.43 4.5
1008 6024 7032 8525 31.09 57.07 11.84 4.5
623 5535 6158 7367 29.29 60.12 10.59 5.6
1204 5352 6556 7858 27.83 59.38 12.79 5.6
105 5467 5572 6667 27.78 60.39 11.83 5.8
67 6311 6378 7574 28.08 59.35 12.57 6.2
175 5279 5454 6619 25.75 54.36 19.89 4.5
1268 3603 4871 5769 22.22 55.66 22.12 4.9
3596 159 3755 4312 19.97 55.93 24.10 5.7
70496 57169 81533 60575 16990 18664 20689 17.50 16.37 15.76
57511 22037 56612 69564 68426 56499 59624 45928 18603 7047 12.10 11070 11.41 9048 10877 10.71 10.38 8843 10.18 7494 9.31 8414 8.56 4948 7.93
20112 4455 7.57
7.05
5.29
3.63
13182 13437 14.78 13.23
102684 86951 69164 67876 66681 20.6 20.5 20.4 20.3 20.2
74154 82911 95091 87459 94672 92725 84691 74763 20.0 19.5 18.8 18.9 18.9 18.7 18.5 18.3
72414 69425 60813 40939 18.7 18.3 17.2 15.3
16 131 16 2.72 4423 27 1200 9.11
16 128 15 2.3 4407 21 1179 8.03
16 131 16 1.81 4373 19 1146 6.93
16 122 16 1.62 4312 18 1062 6.02
16 118 16 1.57 4214 16 948 5.37
16 117 14 1.52 4090 16 866 4.78
14 98 14 1.37 4040 15 816 4.35 11167
12 94 13 1.17 4005 15 793 4.05
10 83 13 1.01 3965 15 767 3.77
10 78 13 0.91 3894 15 740 3.61
10 69 12 0.87 3822 14 704 3.31
9 69 11 0.74 3741 8 651 3.03
9 65 9 0.75 3663 4 616 2.70 9397
8 62 8 0.67 3567 2 518 2.32 8321
8 60 8 0.66 3486 2 409 1.96 7894
7 57 3 0.66 3311 154 0.59 5808
5 61 2 0.61 3183 90 0.49 4847
12264 12094 11704 11499
11207 11299
11158 11029 10616 10578 10203
25830 20919 18156 15023 13386
11520 10235
8883
7395
6082
5476
5080
4488
3165
2664
1512
673
1557 404 175 978 277 5 706
1214 382 112 720 187 (11) 521
977 226 82 670 237 (25) 408
910 218 39 653 267 386
762 260 44 458 169 3 292
546 137 47 362 147 2 218
474 143 38 292 122 170
403 103 44 256 107 149
349 96 37 216 88 128
301 103 31 167 44 123
242 79 33 130 26 104
190 64 34 93 15 78
184 82 34 69 8 60
177 78 31 69 8 61
93 53 19 21 7 14
39 13 4 23 13 10
10 2 2 6 4 2
Annual Report 2009-2010
83
PERFORMANCE PROFILE — (CONTD.)
2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-011999-00 11. What the Company Owned (Rs. Crores) i) Gross Fixed Assets (including Capital Work-in-Progress) 27930 16187 19954 24560 14003 20536 22268 12735 15445 20310 11833 10652 18545 11086 7783 14017 8349 2890 12566 7454 1908 10935 6366 2414 9722 5602 2943 8824 5166 3071 7630 4592 1496
ii) Net Fixed Assets (including Capital Work-in-Progress) iii) Net Current Assets (including Investments and Advance for Investments) Total Assets Net (ii + iii) 12. What the Company Owed (Rs. Crores) i) Share Capital
36141
34539
28180
22485
18869
11239
9362
8780
8545
8237
6088
362 12725 13087 22195 859 36141 1,897 10085 10301
362 11766 12128 21172 1239 34539 1282 10447 6567
362 11315 11677 15022 1481 28180 2636 8024 7440
362 9912 10273 10829 1383 22485 2218 7955 5585
362 8778 9139 8374 1356 18869 1061 4781 4287
300 6088 6388 3882 969 11239 1282 4877 1945
300 5550 5850 2690 822 9362 1740 5774 1320
300 4447 4747 3286 747 8780 1276 5203 1191
300 3697 3997 3849 699 8545 1100 4372 655
300 3779 4079 4158 8237 1231 4145 870
150 3345 3495 2593 6088 1089 3693 573
ii) Reserves and Surplus iii) Net Worth ( i +ii ) iv) Borrowings v) Deferred Tax Liability (net) Total Funds Employed (iii + iv + v) 13. Internal Generation (Rs. Crores) 14. Value Added (Rs. Crores) 15. Earnings in Foreign Exchange (Rs. Crores) 16. Ratios i) Gross Profit before Depreciation, Interest & Tax as % age of Sales and Other Income
3.5 12.2 425.3
2.9 6.2 203.6
3.5 14.4 437.2
3.9 18.6 499.4
1.7 3.2 80.7
3.3 15.8 321.9
6.1 32.0 564.9
5.6 28.6 416.7
5.3 21.0 283.3
4.4 22.0 277.5
5.2 21.5 467.8
ii) Profit after Tax as % age of average Net Worth iii) Profit after Tax as % age of Share Capital iv) Average Net Worth as % age of Share Capital v) Gross Profit before Depreciation, Interest & Tax as % age of Capital Employed vi) Profit before Tax as % age of Capital Employed vii) Profit After Tax as % age of Capital Employed (ROCE) viii) Debt Equity Ratio 17. Earnings per Share (Rupees)# 18. Book Value per Share (Rupees)
3487.1 3292.4 3036.0 2685.0 2527.8 2039.7 1766.2
1457.5 1346.1
1262.4 2172.2
13.7 7.0 4.6 1.70 42.53
13.1 3.1 2.3 1.75 20.36
15.9 9.5 5.8 1.29 43.72
19.4 12.8 8.3 1.05 49.94
8.0 2.3 1.6 0.92 8.07
21.2 13.7 9.8 0.61 32.19
41.5 33.1 21.3 0.46 56.49
34.8 25.5 16.0 0.69 41.67
26.1 16.4 10.5 0.96 28.33
26.7 14.6 10.9 1.02 27.76*
31.1 16.8 12.5 0.7 46.78
361.97 335.48 323.01 284.19 252.79 212.95 194.99 158.25 133.25135.98 @ 232.98
# After adjusting prior period tax * Issue of Bonus Shares in the ratio 1:1. ** Issue of Bonus Shares in the ratio 2:1. @ On Post-Bonus Capital Note : The figures for the years 2005-06 and onwards are merged figures including estwhile KRL.
84
Bharat Petroleum Corporation Limited
1998-99 1997-981996-971995-961994-951993-94 1992-93 1991-921990-911989-901988-89 1987-881986-871985-861984-851980-81
1976
6223 3789 900
5046 3005 983
3949 2276 1170
3250 1794 462
2791 1546 258
2369 1374 184
2057 1193 84
1753 1024 124
1523 894 114
1325 787 80
1122 683 31
955 599 14
752 428 90
601 360 109
495 329 58
96 47 87
46 23 26
4689
3988
3446
2256
1804
1558
1277
1148
1008
867
714
613
518
469
387
134
49
150 2872 3022 1667 4689 899 3002 299
150 2374 2524 1464 3988 823 2445 357
150 1935 2085 1361 3446 578 2077 417
150 1582 1732 524 2256 554 1956 361
150 1246 1396 408 1804 503 1562 272
50 1102 1152 406 1558 338 926 236
50 901 951 326 1277 297 889 204
50 748 798 350 1148 237 786 160
50 614 664 344 1008 214 682 197
50 496 546 321 867 215 481 136
28 406 433 281 714 186 499 120
28 307 335 278 613 136 387 110
28 206 234 284 518 143 341 116
28 150 178 291 469 135 292 103
17 104 120 267 387 65 224 88
15 50 64 70 134 21 101 1
15 19 34 15 49 3 28 2
7.1 25.5 470.7
10.1 22.6 347.6
9.1 21.4 271.7
9.6 24.7 257.2
9.3 22.9 194.8
8.4 20.7 435.1
7.8 19.5 340.1
7.0 20.3 296.9
6.6 21.1 255.6
6.1 25.0 245.1
5.5 28.4 391.7
4.7 26.7 273.0
5.2 29.3 216.7 738.9
7.5 41.2 220.2 534.3
4.3 12.1 83.3 689.8
3.2 17.4 71.8 412.4
1.8 6.7 11.5 170.9
1848.5 1536.2 1272.2 1042.4
849.2 2103.1 1748.5 1461.5 1210.2
979.8 1379.7 1021.5
38.5 24.2 17.4 0.6 47.07
34.0 20.1 14.6 0.6 34.76
33.0 22.6 13.8 0.7 27.17
45.9 33.0 19.5 0.3
50.6 30.4 19.4 0.3
43.1 28.6 17.2 0.4 43.51
47.8 29.5 17.2 0.3 34.02
44.1 28.0 16.3 0.4 29.69
46.5 28.7 17.0 0.5 25.56
45.5 25.2 18.5 0.6 24.51
44.3 23.8 19.9 0.6 37.45
48.4 23.7 19.4 0.8 28.01
51.1 19.0 16.7 1.2 21.71 84.04
49.0 19.0 16.9 1.6 22.01 63.74
37.5 8.4 5.6 2.2 6.07 52.23
33.5 19.7 8.9 1.1 4.68 27.97
21.8 12.6 3.5 0.4 0.72 14.56
25.72 19.48**
201.45 168.25 139.00 115.45 93.04 @ 230.42 190.21 159.49 132.80 109.24 155.69 120.23
Annual Report 2009-2010
85
SOURCES AND APPLICATION OF FUNDS
2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99
SOURCES OF FUNDS OWN Profit after Tax* Capital Grants received/ (Reversed) (Net of amortisation) Adjustment on account of Transitional Provisions Depreciation Investment Shareholders' Investment Deferred Tax Provision BORROWINGS Loans (net) LPG Deposits Decrease in Working Capital Adjustment on account of Deletion/ Re-classification, etc. 1,024 411 16 6,149 237 2,432 38 4,193 232 38 7,218 2,456 154 1,382 4 6,884 3,715 150 7 5,040 1,192 170 17 3,388 238 138 3 2,841 183 114 6 2,312 198 862 6 2,496 1,565 385 14 3,443 925 345 3 2,614 203 168 2 1,994 1,538 1,247 4,577 (380) 736 1,084 (242) 1,581 (36) 1,099 111 1,806 (1) 1,056 27 292 3 771 102 966 596 300 147 1,695 562 129 76 1,250 478 233 48 850 483 97 833 646 702 616 23 706 401 514 -
8,433 10,434
APPLICATION OF FUNDS Capital Expenditure Dividend Tax on distributed profits Repayment of Loans (net) Investment Increase in Working Capital 3,447 506 73 4,407 2,389 253 32 7,760 2,039 145 9 2,023 3,002 7,218 1,808 579 92 4,405 6,884 2,009 90 13 2,788 140 5,040 1,509 375 52 1,452 3,388 1,653 525 67 596 2,841 1,249 450 50 563 2,312 924 330 310 932 2,496 1,235 225 23 864 1,096 3,443 1,422 188 41 963 2,614 1,186 188 21 599 1,994
8,433 10,434 *After adjusting prior period tax
Note: The figures for the years 2005-06 and onwards are merged figures including erstwhile KRL.
86
Bharat Petroleum Corporation Limited
1997-98 1996-97 1995-96 1994-95 1993-94 1992-93 1991-92 1990-91 1989-90 1988-89 1987-88 1986-87 1985-86 1984-85 1980-81
1976
(Rs. Crores)
521 384 -
408 225 -
386 218 76 -
292 260 -
218 136 -
170 143 -
149 103 -
128 96 -
123 103 -
104 87 -
78 63 -
60 86 -
61 77 -
14 53 -
10 13 -
2 2 17 -
104 247 774 3 2,033
836 120 2 1,591
117 97 5 899
2 79 4 637
80 52 1 487
26 54 4 397
6 37 1 296
22 18 264
40 28 3 297
3 21 2 217
22 55 1 219
28 174
24 33 3 198
75 26 168
62 1 86
12 1 (8) 26
1,115 75 8 835 2,033
709 49 5 79 749 1,591
472 49 378 899
435 49 92 61 637
319 16 72 80 487
316 17 25 39 397
234 15 7 40 296
203 10 27 24 264
210 10 2 75 297
173 6 1 37 217
207 6 6 219
154 4 7 9 174
110 4 84 198
154 2 1 11 168
23 2 61 86
2 2 22 26
Annual Report 2009-2010
87
SALES VOLUME ('000 MT)
2009-10 Sales Market Share (%) Light Distillates : Naphtha LPG (Bulk & Packed) Motor Spirit Special Boiling Point Spirit/ Hexane Benzene Toluene Polypropylene Feedstock Regassified - LNG Others Sub Total Middle Distillates : Aviation Turbine Fuel Superior Kerosene Oil High Speed Diesel Light Diesel Oil Mineral Turpentine Oil Others Sub Total Others : Furnace Oil Low Sulphur Heavy Stock Bitumen Lubricants Others Sub Total Grand Total 1,450 447 627 231 64 2,819 27,700 22.67 18.7 18.0 14.4 18.7 14.9 1,644 591 680 203 76 3,194 27,159 22.62 21.1 18.6 15.0 20.1 16.6 1,745 600 653 232 80 3,310 25,786 22.66 21.6 18.5 14.6 20.5 1,923 585 490 133 77 3,208 23,452 22.63 23.6 17.5 12.8 14.6 1,944 753 480 116 54 3,347 21,630 22.37 23.7 19.3 13.8 13.0 16,035 15,308 14,287 12,671 11,137 925 1,646 13,298 59 107 20.3 17.2 24.2 12.8 56.5 917 1,599 12,630 78 84 21.0 16.8 24.6 14.2 53.2 959 1,637 11,482 107 102 21.1 17.0 24.7 16.1 55.1 880 1,643 9,922 113 113 21.9 17.1 24.4 15.7 59.9 680 1,626 8,551 156 124 20.6 16.9 23.5 18.7 61.9 897 3,236 3,575 39 60 24 71 710 234 8,846 28.9 25.9 28.4 34.9 84.3 97.9 1,129 3,033 3,229 34 73 27 62 866 204 8,657 20.6 26.2 28.9 29.5 88.3 97.4 1,022 2,933 2,914 32 87 27 62 905 207 8,189 20.8 26.4 29.5 26.6 87.4 91.0 1,136 2,734 2,635 35 101 40 46 679 167 7,573 22.2 26.3 29.9 27.2 98.5 89.4 1,307 2,586 2,475 36 59 44 38 479 122 7,146 25.4 26.1 30.0 17.5 88.5 92.6 2008-09 Sales Market Share (%) 2007-08 Sales Market Share (%) 2006-07 Sales Market Share (%) 2005-06 Sales Market Share (%)
Note 1: Market Share is based on Sales Volumes of Public Sector Oil Companies. Note 2: The figures for the years 2005-06 and onwards are merged figures including erstwhile KRL.
88
Bharat Petroleum Corporation Limited
PRODUCTION ('000 MT)
2009-10 Light Distillates : Naphtha LPG Motor Spirit Special Boiling Point Spirit/Hexane Benzene Toluene Polypropylene Feedstock/ Propylene Others Sub Total Middle Distillates: Aviation Turbine Fuel Superior Kerosene Oil High Speed Diesel Light Diesel Oil Mineral Turpentine Oil Lube Oil Base Stock Sub Total Heavy Ends : Furnace Oil Low Sulphur Heavy Stock Sulphur Bitumen Others Sub Total Grand Total 2263 431 65 578 3337 19199 2254 593 78 661 15 3600 18629 2360 574 81 622 11 3648 19570 3993 18472 3402 16084 2871 569 71 481 2209 706 48 439 1062 1235 7816 58 110 185 10466 981 996 7805 84 84 155 10104 984 1403 7960 109 98 154 10708 706 1745 6939 151 115 105 9762 536 1551 5785 165 128 0 8165 2262 873 2069 39 57 23 72 1 5396 1821 818 2081 33 80 28 62 1 4924 2057 890 2054 33 88 26 63 3 5214 1810 822 1856 37 104 40 46 3 4718 1957 739 1632 44 61 43 38 3 4517 2008-09 2007-08 2006-07 2005-06
Lubricants Production (MT)
2009-10 209301 2008-09 151788 2007-08 161957 2006-07 116337 2005-06 100461
Quantity of LPG Filled in Cylinders (MT)
2009-10 2946073 2008-09 2760136 2007-08 2657199 2006-07 2468571 2005-06 2349675
Note: The figures for the years 2005-06 and onwards are merged figures including erstwhile KRL.
Annual Report 2009-2010
89
HOW VALUE IS GENERATED
Rs. Crores 2009-10 Value of Production (Refinery) Less : Direct Materials Consumed Added Value Marketing Operations Value added by Manufacturing & Trading Operations Add : Other Income and prior period items 55,153 (50,825) 4,328 5,453 9,781 2,185 11,966 2008-09 63,982 (53,893) 10,089 116 10,205 1,495 11,700
Total Value Generated
HOW VALUE IS DISTRIBUTED
2009-10 1. OPERATIONS Operating & Service Costs 2. EMPLOYEES' BENEFITS Salaries, Wages & Bonus Other Benefits 3. PROVIDERS OF CAPITAL Interest on Borrowings Dividend 4. INCOME TAX 5. RE-INVESTMENT IN BUSINESS Depreciation Deferred Tax Retained Profit 1,242 (303) 959 1,898 1,076 (242) 451 1,011 579 1,590 828 2,166 285 1,606 535 2,141 1,026 859 5,509
Rs. Crores 2008-09
5,811
1,885
2,451 268
1,285
Total Value Distributed
11,966
11,700
90
Bharat Petroleum Corporation Limited
AUDITORS’ REPORT TO THE MEMBERS OF BHARAT PETROLEUM CORPORATION LIMITED
1. We have audited the attached Balance Sheet of BHARAT PETROLEUM CORPORATION LIMITED as at 31st March 2010 and the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Auditing & Assurance Standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Companies (Auditor’s Report) Order, 2003 (‘the Order’), issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. Further to our comments in the Annexure referred to in paragraph (3) above, we report that: a) b) c) d) e) f) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of the books. The Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of account. In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement comply with the Accounting Standards referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956. Disclosure in terms of clause (g) of Sub-Section (1) of Section 274 of the Companies Act, 1956 is not required as per Notification No. GSR 829(E) dated October 21, 2003 issued by the Department of Company Affairs. Without qualifying our opinion, we invite attention to: i) Note No. 9 of Schedule X – Notes to Accounts, regarding impairment of assets wherein, being technical matters subject to uncertainty we have relied on the estimates and assumptions made by the Company in arriving at recoverable value of assets, based on desired margins. Recovery of overdue amount of Rs. 278.54 crores from a party in whose case arbitration award has been passed and consent terms agreed between the parties have been filed with the Honourable Bombay High Court. We have relied on the Company’s representation that the dues are recoverable as per consent terms and hence no provision is considered necessary.
2.
3.
4.
ii)
g)
In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the notes thereon give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i) ii) iii) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010; in the case of the Profit and Loss Account, of the profit for the year ended on that date; and in the case of Cash Flow Statement, of the cash flows for the year ended on that date. For and on behalf of K.VARGHESE & CO. FR No:004525S Sd/K.Varghese Partner Membership No: 20674
For and on behalf of B.K.KHARE & CO. FR No: 105102W Sd/Padmini Khare Kaicker Partner Membership No: 44784 Place : Mumbai Dated : May 27, 2010
Annual Report 2009-2010
91
ANNEXURE TO THE AUDITORS’ REPORT
Referred to in Paragraph (3) of our report of even date on the accounts of BHARAT PETROLEUM CORPORATION LIMITED for the year ended 31st March 2010. (i) In respect of fixed assets a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets except in respect of items like pipes, valves, meters, instruments and other similar items peculiar to a continuous process plants. b) The Company has carried out physical verification of fixed assets, other than LPG cylinders with customers, in accordance with the verification programme and the frequency of verification is reasonable. According to information and explanations given to us, no material discrepancies have been reported on such verification. c) In our opinion, the disposals of fixed assets during the year are not of a significant value so as to affect the going concern assumption. (ii) In respect of inventories: a) The inventories of finished goods, stores, spares parts and raw materials, except those lying with third parties and in transit, have been verified by the management at reasonable intervals. In respect of inventories lying with third parties, these have been confirmed by them and the inventory in transit has been verified with subsequent receipts. b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management were generally reasonable and adequate in relation to the size of the company and the nature of its business. c) In our opinion and according to the information and explanations given to us, the company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification as compared to the records of inventories. (iii) Based on the audit procedures applied by us and according to the information and explanations given to us, the company has not granted or taken any loans, secured or unsecured to / from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Therefore, the provisions of Sub-clause (b) to (d), (f) and (g) of sub-para (iii) of para 4 of the Order are not applicable. (iv) In our opinion and according to the information and explanations given to us, having regard to the explanation that some of the items purchased are of a special nature and suitable alternative sources do not exist for obtaining comparable quotations, there is an adequate internal control procedure commensurate with the size of the Company and the nature of its business, for the purchase of inventories and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in the internal control system.
92
Bharat Petroleum Corporation Limited
(v)
In respect of transactions entered in the register maintained under Section 301 of the Companies Act, 1956: a) In our opinion and according to the information and explanation given to us, there were no transactions exceeding the value of Rs. five lakhs in case of any party that need to be entered in the Register maintained in pursuance of Section 301 of the Companies Act, 1956. b) As there are no transactions exceeding the value of Rs. five lakhs in case of any party that need to be entered in the Register maintained pursuant to Section 301 of the Companies Act, 1956, sub-clause (b) of sub-para (v) of Para 4 of the Order regarding reasonability of price at which such transactions have been entered is not applicable.
(vi)
In our opinion and according to the information and explanation given to us, the company has complied with the directives issued by the Reserve Bank of India, the provision of Section 58A and 58AA of the Companies Act, 1956 and the rules framed thereunder.
(vii) In our opinion, the company has an adequate internal audit system commensurate with the size and the nature of its business. (viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed records have been kept and maintained. We have not made a detailed examination of these records. (ix) According to the information and explanations given to us, in respect of statutory and other dues: a) According to the records of the Company, the company has been generally regular in depositing undisputed statutory dues including Provident fund, Investor Education and Protection Fund, Employees’ State Insurance Fund, Income tax, Sales tax, Wealth tax, Service tax, Custom duty, Excise duty, cess and any other statutory dues, with appropriate authorities during the year. According to the information and explanations given to us, no undisputed amounts payable in respect of Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty and Excise Duty were outstanding, at the year end for a period of more than six months from the date they became payable. b) The details of disputed dues of sales tax, income tax, customs duty, wealth tax, service tax, excise duty, cess, which have not been deposited, are given in Annexure I. (x) The company does not have any accumulated losses at the end of the financial year. The Company has not incurred any cash losses during the financial year covered by our audit and in the immediately preceding financial year. (xi) According to the information and explanations given to us and based on the documents and records produced before us, the Company has not defaulted in repayment of dues to Financial Institutions / Banks. (xii) According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares and other securities. Annual Report 2009-2010
93
(xiii) In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi/ mutual benefit fund/ societies. (xiv) (a) The Company does not deal or trade in shares, securities, debentures and other investments. (b) The shares, securities, debentures and other investments are held by the Company in its own name except to the extent of the exemption granted under Section 49 of the Companies Act, 1956. (xv) The Company has given guarantees for loans taken by others from banks or financial institutions, aggregating to Rs. 887.43 crore where the terms and conditions, according to the information and explanations given to us, and in our opinion, are not prima facie prejudicial to the interests of the Company. (xvi) In our opinion, the term loans obtained during the year, prima facie, have been applied for the purpose for which the loans were raised. (xvii) According to the information and explanations given to us, based on an overall examination of the Balance Sheet and Cash Flows of the Company, we report that the Company has not utilized funds raised on short-term basis for long-term investment. (xviii) The Company has not made any preferential allotment of shares to parties covered in the register maintained under Section 301 of the Companies Act, 1956. (xix) The Company has created security / charge on the debentures issued during the year. (xx) The Company has not raised any money through a public issue during the year. (xxi) As presented to us by the management and based on our examination in the normal course of audit, no material frauds on or by the Company have been noticed or reported during the year.
For and on behalf of B.K.KHARE & CO. FR No: 105102W Sd/Padmini Khare Kaicker Partner Membership No: 44784 Place : Mumbai Date : May 27, 2010
For and on behalf of K.VARGHESE & CO. FR No: 004525S Sd/K.Varghese Partner Membership No: 20674
94
Bharat Petroleum Corporation Limited
CONSOLIDATED SUMMARY
Annexure 1
(Amount in Rs. Crores) Nature of Statute / Nature of Dues Period Block High Court Forum where Dispute is pending Appellate Tribunal* 53.87 8.35 62.23 0.07 0.20 66.25 703.76 253.27 1,023.54 0.32 6.39 349.87 107.68 48.62 512.87 0.22 0.48 5.51 6.21 0.51 0.51 1,605.37 Appellate Authority** 0.06 0.50 0.04 0.61 0.16 0.21 714.99 600.63 76.08 1,392.06 1.35 1.35 1,394.02 Adjudicating Joint Authority*** Secretary, MOF 0.39 0.78 1.17 1.42 143.74 100.08 245.24 27.30 68.01 83.53 176.12 28.33 383.29 629.70 0.11 0.11 0.11 Board of Revenue 13.36 13.36 13.36 Grand Total
Customs Act, 1962 (Customs Duty Including Penalty & Interest, wherever applicable) Customs Duty Total (a) Central Excise Act, 1944 (Excise Duty Including Penalty & Interest, wherever applicable)
1995 to 2000 2000 to 2005 2005 to 2009
22.37 22.37
76.25 8.75 0.78 85.77 0.07 0.26 68.16 847.61 353.40 1,269.50 0.04 29.47 87.56 1,165.67 1,213.57 161.58 2,657.88 6.95 2.09 5.51 14.56 0.51 0.51 4,028.22
1985 to 1990 1990 to 1995 1995 to 2000 2000 to 2005 2005 to 2009
-
Excise Duty Total (b) Sales Tax/ VAT Legislations (Sales Tax Including Penalty & Interest, wherever applicable) 1980 to 1985 1985 to 1990 1990 to 1995 1995 to 2000 2000 to 2005 2005 to 2009 Sales Tax Total (c) Income Tax Act, 1961 (Income Tax including Penalty & Interest, wherever applicable) Income Tax Total (d) Finance Act, 1994 (Service Tax) Service Tax Total (e) Grand Total (a+b+c+d+e) * 2000 to 2005 1990 to 1995 1995 to 2000 2000 to 2005
0.04 1.70 12.95 3.93 329.14 8.55 356.30 6.73 0.26 6.99 385.66
Appellate Tribunal includes Sales Tax Tribunal, CESTAT and ITAT.
** Appellate Authority includes Commissioner Appeals, Assistant Commissioner Appeals, Deputy Commissioner Appeals, Joint Commissioner Appeals and Deputy Commissioner Commercial Taxes Appeals. *** Adjudicating Authority includes Collector of Sales Tax, Sales Tax Officer and Deputy Commissioner Sales Tax , Joint / Deputy / Additional Commissioner of Commercial Taxes
Annual Report 2009-2010
95
BALANCE SHEET AS AT 31ST MARCH, 2010
SCHEDULE I. SOURCES OF FUNDS 1. Shareholders' funds : Share Capital Reserves and Surplus 2. Loan funds : Secured Loans Unsecured Loans 3. Deferred tax liability (net) TOTAL II. APPLICATION OF FUNDS 1. Fixed Assets : Gross block Less : Depreciation and amortisation Net block Capital work-in-progress 2. Investments 3. Advance for Investments 4. Current assets, loans and advances : Inventories Sundry debtors Cash and bank balances Other current assets Loans and advances Less : Current liabilities and provisions : Liabilities Provisions Net current assets TOTAL Statement of Significant Accounting Policies and Notes forming part of Accounts For and on behalf of the Board of Directors Sd/ASHOK SINHA Chairman and Managing Director Sd/S. K. JOSHI Director (Finance) Place : Mumbai Dated : 27th May, 2010 Sd/S. V. KULKARNI Company Secretary D 25,412.52 (11,743.17) 13,669.35 2,517.75 16,187.10 12,201.32 1,300.01 12,028.86 2,662.68 342.36 3,785.69 4,764.34 23,583.93 14,550.56 2,580.59 17,131.15 6,452.78 36,141.21 X As per our attached report of even date For and on behalf of For and on behalf of B. K. KHARE & CO. K. VARGHESE & CO. Chartered Accountants Chartered Accountants FR No: 105102W FR No: 004525S Sd/Sd/PADMINI KHARE KAICKER K. VARGHESE Partner Partner Membership No. 44784 Membership No. 20674 22,522.33 (10,556.54) 11,965.79 2,037.48 14,003.27 16,715.19 1,363.19 6,823.92 1,425.67 441.55 3,094.51 3,502.77 15,288.42 11,118.87 1,712.44 12,831.31 2,457.11 34,538.76 Rs. Crores 31/03/2009 Rs. Crores
A B C
361.54 12,725.17 13,086.71 10,443.87 11,751.33 22,195.20 859.30 36,141.21
361.54 11,766.57 12,128.11 3,661.60 17,509.81 21,171.41 1,239.24 34,538.76
E F FA G H I J K L M
96
Bharat Petroleum Corporation Limited
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2010
SCHEDULE N O P Rs. Crores 131,499.72 (9,223.77) 122,275.95 2,240.24 3,989.85 128,506.04 63,078.89 50,592.45 133.17 217.40 1,841.56 2,585.47 79.52 237.12 2,141.12 1,010.95 2,924.59 1,242.32 126,084.56 2,421.48 (55.43) 2,366.05 1,127.00 (303.25) 4.68 1,537.62 (700.00) 76.37 913.99 506.16 72.77 578.93 154.00 181.06 42.53 42.53 X As per our attached report of even date For and on behalf of For and on behalf of B. K. KHARE & CO. K. VARGHESE & CO. Chartered Accountants Chartered Accountants FR No: 105102W FR No: 004525S Sd/Sd/PADMINI KHARE KAICKER K. VARGHESE Partner Partner Membership No. 44784 Membership No. 20674 2008-09 Rs. Crores 145,392.07 (10,154.37) 135,237.70 1,508.74 (1,575.88) 135,170.56 67,867.81 53,936.93 107.51 (10.49) 1,174.76 2,426.14 79.04 67.17 1,884.88 2,166.37 3,377.34 1,075.53 134,152.99 1,017.57 (13.46) 1,004.11 490.00 13.25 (242.13) 7.09 735.90 (300.00) # 435.90 253.08 31.45 284.53 75.00 76.37 20.35 20.35
INCOME Sale of products, crude oil and related income Less: Excise Duty Paid Miscellaneous income Increase/(Decrease) in Inventory TOTAL EXPENDITURE Purchase of products and crude oil for resale Raw materials consumed Packages consumed Excise Duty on Inventory differential Other duties, taxes etc. and other charges applicable to products Transportation Consumption of stores, spares and materials Power and Fuel Employees' remuneration and other benefits Interest Other operating and administration expenses Depreciation and amortisation TOTAL Profit Prior period income/(expenses) net Profit before tax Provision for Taxation - Current Tax - Fringe Benefit Tax - Deferred Tax Asset - Net - Short provision for Taxation in earlier years provided for Profit after tax Transfer from / (to) Debenture Redemption Reserve Balance brought forward Disposable Profit Appropriations: Proposed dividend Corporate Dividend Tax on proposed dividend Transfer to General Reserve Balance Carried to Balance Sheet # Rs. 10,000.00 Earnings per Share - Rs. - Basic - Diluted Statement of Significant Accounting Policies and Notes forming part of Accounts For and on behalf of the Board of Directors Sd/ASHOK SINHA Chairman and Managing Director Sd/S. K. JOSHI Director (Finance) Place : Mumbai Dated : 27th May, 2010 Sd/S. V. KULKARNI Company Secretary
Q
R S T U V
W
Annual Report 2009-2010
97
SCHEDULE ‘A’ — SHARE CAPITAL
31/03/2009 Rs. Crores Authorised 450,000,000 equity shares of Rs.10 each 450.00 450.00 Issued, subscribed and paid-up 361,542,124 (previous year 361,542,124) equity shares of Rs.10 each fully paid-up * Total Share Application Money Suspense Account Total 361.54 361.54 # 361.54 361.54 361.54 # 361.54 450.00 450.00 Rs. Crores
* Includes : i) 22,950,000 equity shares of Rs. 10 each on which Rs. 7.20 per share was paid in cash and were converted into fully paid by capitalisation of Capital Reserve. ii) 277,000,000 equity shares of Rs. 10 each allotted as fully paid bonus shares by capitalisation of Capital Reserve and General Reserve. iii) 61,542,124 equity shares of Rs. 10 each issued as fully paid-up to the Shareholders of erstwhile Kochi Refineries Limited as per the Scheme of Amalgamation. # Value Rs. 21,000
SCHEDULE ‘B’ — RESERVES AND SURPLUS
31/03/2009 Rs. Crores Capital Reserve As per last Balance Sheet (Less) : Amortisation of Capital Grant Debenture Redemption Reserve As per Last Balance Sheet Add:Transfer from Profit & Loss Account 300.00 700.00 1,000.00 General Reserve As per last Balance Sheet Add : Transfer from Profit & Loss Account Surplus as per Profit & Loss Account Total 11,375.26 154.00 11,529.26 181.06 12,725.17 11,300.26 75.00 11,375.26 76.37 11,766.57 300.00 300.00 14.94 (0.09) 14.85 15.03 (0.09) 14.94 Rs. Crores
98
Bharat Petroleum Corporation Limited
SCHEDULE ‘C’— LOAN FUNDS
Rs. Crores Secured Loans Debentures 10.35% Secured Non-Convertible debenture 2010 (refer note 3 (a) of Schedule 'X'-B) [Due for repayment within one year Rs. 1000 crores (previous year Rs. NIL)] 7.73% Secured Non-Convertible debenture 2012 (refer note 3 (b) of Schedule 'X'-B) Banks Working Capital Loans/Cash Credit (Secured in favour of the participating banks ranking pari passu inter-alia by hypothecation of raw materials, finished goods, stock- in- process, book debts, stores, components and spares and all movables both present and future) Interest accrued and due Term Loan [Due for repayment within one year Rs. 1200.00 crores (previous year Rs. NIL)] [Secured by pledge of 6.35% Oil Marketing Companies GOI Special Bonds 2024 of Rs. 3000 crores] Collateralised Borrowing and Lending Obligation (CBLO) through Clearing Corporation of India Limited [Secured by Oil Marketing Companies GOI Special Bonds 2024 of Rs. 1400 crores (previous year Oil Marketing Companies GOI Special Bonds 2023 of Rs. 1300.00 crores)] Unsecured Loans Fixed deposits [Due for repayment within one year Rs. 0.24 crores (previous year Rs. 3.01 crores)] Short Term (From Banks) Rupee Loans Foreign Currency Loans Syndicated Loans from various banks (repayable in foreign currency) [Due for repayment within one year Rs. NIL (previous year Rs. 606.07 crores)] Others Oil Industry Development Board [Due for repayment within one year Rs. 126.63 crores (previous year Rs. 203.13 crores)] Total 0.24 3.45 1,000.00 1,000.00 31/03/2009 Rs. Crores
1,000.00
-
6,714.15
2,497.70
29.72 1,200.00
13.90 -
500.00
150.00
10,443.87
3,661.60
3,300.00 6,274.24 1,255.48
12,855.00 2,060.25 1,829.61
921.37
761.50
11,751.33 22,195.20
17,509.81 21,171.41
Annual Report 2009-2010
99
100
Rs. Crores
SCHEDULE ‘D’ – FIXED ASSETS
GROSS BLOCK DEPRECIATION AND AMORTISATION NET BLOCK
PARTICULARS
AS AT 01-04-2009
ADDITIONS
AS AT 31-03-2010
UPTO 31-03-2009
2009-10
UPTO 31-03-2010
AS AT 31-03-2010
AS AT 31-03-2009
Bharat Petroleum Corporation Limited
(2) 389.77 102.44 3,972.56 221.99 6,581.00 3,948.97 168.65 152.01 1,416.02 3,799.12 1,686.29 83.51 22,522.33 21,500.93 2,966.28 1,118.57 76.09 97.17 25,412.52 22,522.33 10,556.54 9,532.26 353.06 288.51 27.23 8.16 23.10 4,144.02 1,951.70 110.74 3,799.12 767.09 42.37 353.06 114.46 12.05 1,246.90 1,083.61 102.73 2.56 1,516.19 346.53 68.56 2.29 8.16 22.85 60.27 59.33 412.80 4,144.02 858.70 54.42 11,743.17 10,556.54 56.20 63.25 268.79 41.03 820.13 909.32 15.13 20.90 1.08 1.79 5.16 2.75 26.21 0.69 1.93 2.66 444.89 163.90 4,236.19 260.27 7,374.92 4,857.60 181.85 170.25 17.01 523.26 111.47 2,921.79 1,870.44 73.48 83.98 2.20 82.70 10.84 322.67 256.04 11.24 13.08 0.27 1.80 2.61 14.08 4.47 1.71 2.03 18.94 604.16 119.70 3,230.38 2,122.01 83.01 95.03 (3) (5) (6) (7) (9) (10) 444.89 144.96 3,632.03 140.57 4,144.54 2,735.59 98.84 75.22 1,103.39 1,093.00 56.32 13,669.35 11,965.79
DEDUCTIONS ON ACCOUNT OF RETIREMENT / RECLASSIFICATIONS (4)
DEDUCTIONS ON ACCOUNT OF RETIREMENT / RECLASSIFICATIONS (8)
(11) 389.77 85.43 3,449.30 110.52 3,659.21 2,078.53 95.17 68.03 1,069.49 919.20 41.14 11,965.79 11,968.67
(1) 1. LAND (a) Freehold (b) Leasehold 2. BUILDINGS 3. RAILWAY SIDINGS 4. PLANT and MACHINERY 5. TANKS and PIPELINES 6. FURNITURE and FITTINGS 7. VEHICLES 8. OTHER ASSETS (a) Dispensing Pumps (b) LPG Cylinders and Allied Equipment (c) Sundries 9. INTANGIBLE ASSETS (refer note 18 of Schedule 'X'-B) TOTAL PREVIOUS YEAR (2008-09)
NOTES: 1) Land : a) Freehold land includes Rs. 32.07 Crores (previous year Rs. 31.73 Crores) with more than 99 years lease period. b) Freehold land includes Rs. 137.16 Crores (previous year Rs. 88.05 Crores) capitalised at various locations for which conveyance deeds are yet to be executed and/or mutation is pending. c) Includes the following which though in the possession of Corporation, the lease deeds are yet to be registered: i) Land acquired on lease for a period exceeding 99 years Rs. 0.91 Crores (previous year Rs. 0.91 Crores). ii) Other leasehold land - Gross Block Rs. 46.14 Crores (previous year Rs. 0.60 Crores), Net Block Rs. 45.88 Crores (previous year Rs. 0.48 Crores). d) Freehold land includes Rs. 2.13 Crores (previous year Rs. 2.13 Crores) which is in the process of being surrendered to Competent Authority. 2) Buildings include : a) Ownership flats of Rs. 48.16 Crores (previous year Rs. 47.92 Crores) in proposed / existing co-operative societies and others. b) Residential flats and office complex which are in possession of the Corporation and in respect of which the lease deeds are yet to be registered: Gross Block Rs. 30.31 Crores (previous year Rs. 30.87 Crores), Net Block Rs. 27.80 Crores (previous year Rs. 28.72 Crores). 3) Land, Plant & Machinery, Tanks & Pipelines, Railway Sidings and Buildings jointly owned in varying extent with other Oil Companies / Railways : Gross Block Rs.192.35 Crores (previous year Rs. 192.41 Crores), Cumulative Depreciation
Rs. 86.18 Crores (previous year Rs.77.67 Crores), Net Block Rs.106.17 Crores (previous year Rs.114.75 Crores). 4) Buildings, Plant & Machinery and Sundries includes Rs. 14.25 Crores (previous year Rs. 14.25 Crores) towards assets, ownership of which does not vest with the Corporation. This amount is amortised over a period of five years. The amount charged off as depreciation for the current period is Rs. 1.20 Crores (previous year Rs. 1.87 Crores). 5) Deduction from Gross Block (column 4) includes : a) Write back of excess capitalisation of Rs. 11.93 Crores (previous year Rs. 42.99 Crores). b) Deletions during the period Rs. 64.16 Crores (previous year Rs. 54.18 Crores). 6) Depreciation for the period (column 7) includes : a) Charged to Profit & Loss account Rs. 1246.18 Crores (previous year Rs. 1,082.25 Crores). b) Charged to Prior Period expenses Rs. 0.72 Crores (previous year Rs. 1.36 Crores). 7) Deductions from depreciation (column 8) includes withdrawal of depreciation : a) On excess capitalisation Rs. 3.49 Crores (previous year Rs. 3.50 Crores). b) On deletion during the period Rs. 56.04 Crores (previous year Rs. 48.77 Crores). c) On reclassification of assets Rs. 0.36 Crores (previous year Rs. 3.22 Crores) d) Credited to Prior Period Rs. 0.38 Crores (previous year Rs. 3.84 Crores) 8) Gross Block includes Rs. 20.55 Crores (previous year Rs. 6.62 Crores) towards assets which are identified as held for disposal during the period in respect of which additional depreciation of Rs. 6.06 Crores (previous year Rs. 4.13 Crores) has been provided to recognise the expected loss on disposal.
SCHEDULE ‘E’— CAPITAL WORK–IN–PROGRESS
31/03/2009 Rs. Crores Capital work-in-progress (at cost) Work-in-progress Capital Advances (Unsecured, Considered good) Capital stores including lying with contractors Capital goods in transit Intangible assets pending amortisation (refer note 18 of Schedule 'X'-B) Construction period expenses 31/03/2009 Opening balance Add: Expenditure during the year Establishment charges Interest Others 33.94 76.74 27.37 195.18 Less: Allocated to assets capitalised during the year Closing balance Total (92.34) 21.51 14.02 8.75 62.33 (5.20) 57.13 18.05 2,035.97 141.75 201.22 33.35 2.62 1,559.37 116.04 285.96 13.02 5.96 Rs. Crores
102.84 2,517.75
57.13 2,037.48
Annual Report 2009-2010
101
SCHEDULE ‘F’ — INVESTMENTS
Face Value No. Rs. Crores Book Value 31/03/2009 Rs. Crores Rs. Crores
1 2 3 4 5 6 7 8 9 10 11 12 13
CURRENT (Current Investments are valued at lower of cost or fair market value) IN GOVERNMENT SECURITIES NON TRADE - QUOTED 6.35% Oil Marketing Companies GOI Special Bonds 2024 ** 6.90% Oil Marketing Companies GOI Special Bonds 2026 7.00% Oil Marketing Companies GOI Special Bonds 2012 7.59% Oil Marketing Companies GOI Special Bonds 2015 7.61% Oil Marketing Companies GOI Special Bonds 2015 7.95% Oil Marketing Companies GOI Special Bonds 2025 8.00% Oil Marketing Companies GOI Special Bonds 2026 8.01% Oil Marketing Companies GOI Special Bonds 2023 8.13% Oil Marketing Companies GOI Special Bonds 2021 8.20% Oil Marketing Companies GOI Special Bonds 2023 8.20% Oil Marketing Companies GOI Special Bonds 2024* 8.40% Oil Marketing Companies GOI Special Bonds 2025 8.40% Oil Marketing Companies GOI Special Bonds 2026 Less : Provision for dimunition in value of investment in 6.35% Oil Marketing Companies GOI Special Bonds 2024 in 6.90% Oil Marketing Companies GOI Special Bonds 2026 in 7.95% Oil Marketing Companies GOI Special Bonds 2025 in 8.00% Oil Marketing Companies GOI Special Bonds 2026 in 8.20% Oil Marketing Companies GOI Special Bonds 2024
3,099.96 4,986.71 3.39 2.31 0.81 80.63 559.32 758.76 1,748.78 -
@ 3,099.96 @ 4,986.71 3.39 2.31 0.81 80.63 559.32 758.76 1,748.78 11,240.67 (493.68) (592.82) (2.53) (11.65) (16.32) (1,117.00) 10,123.67
1,605.80 330.00 3.39 2.31 0.81 695.63 2,144.32 16.00 2.80 2,860.76 1.03 1.92 2.87 7,667.64 (252.92) (23.08) (12.03) (288.03) 7,379.61
*
**
Kept as Collateral Security with Clearing Corporation of India Limited for borrowing in CBLO (face value of Rs. 1400 crores) Kept as Security with State Bank of India against Term loans (face value of Rs. 3000 crores) LONG TERM IN GOVERNMENT SECURITIES NON TRADE - QUOTED 6.35% Oil Marketing Companies GOI Special Bonds 2024 @ 6.90% Oil Marketing Companies GOI Special Bonds 2026 @ Deposited with Local Authorities 7 % Loan 2009 7 1/2 % Loan 2010 8 % Loan 2011 0.02 *** 0.02 # 0.02 3,099.96 4,986.71 0.02 0.02 # 8,086.71
1 2 3
# Rs 22,327.65 *** Rs. 20,000.00 @ Refer note 8 of Schedule 'X'-B
102
Bharat Petroleum Corporation Limited
SCHEDULE ‘F’ — INVESTMENTS (CONTD.)
No. IN SHARES, DEBENTURES AND BONDS TRADE - QUOTED Equity Shares of Rs.10 each (fully paid up) of Petronet LNG Limited Equity Shares of Rs.10 each (fully paid up) of Indraprastha Gas Limited Equity Shares of Rs.10 each (fully paid up) of Oil India Limited TRADE - UNQUOTED Equity Shares of Rs.10 each (fully paid up) of Bharat Oman Refineries Limited Equity Shares of Rs.10 each (fully paid up) of Petronet India Limited Equity Shares of Rs.10 each (fully paid up) of Cochin International Airport Limited Equity Shares of Rs.10 each (fully paid up) of Petronet CCK Limited Equity Shares of Rs.10 each (fully paid up) of Petronet CI Limited Equity Shares of Rs.10 each (fully paid up) of Petroleum Infrastructure Limited Equity Shares of Rs.10 each (fully paid up) of Central UP Gas Limited Equity Shares of Rs.10 each (fully paid up) of Sabarmati Gas Limited Equity Shares of Rs.10 each (fully paid up) of Maharashtra Natural Gas Limited Equity Shares of Rs.10 each (fully paid up) of Bharat Stars Services Pvt. Ltd Equity Shares of Rs.10 each (fully paid up) of Bharat Renewable Energy Limited Equity Shares of Premier Oil Cachar B.V. Face value of Euro 453.78 each (fully paid up) Equity Shares of Delhi Aviation Fuel Facility Private Limited Face value of Rs 10 each (fully paid up) Equity Shares of Matrix Bharat Marine Services Pte. Ltd. Face value USD1 each (fully paid up) 6% Optional Conver tible Debenture of Rs.100000 each (fully paid up) of Sabarmati Gas Limited Less: Provision for dimunition in value of investment in Petroleum Infrastructure Limited in Petronet CI Limited in Petronet India Limited in Petronet CCK Limited Face Value Rs. Crores 93.75 31.50 5.35 75.50 16.00 10.50 49.00 1.58 7.50 13.50 5.00 22.49 10.00 1.00 # Book Value 31/03/2009 Rs. Crores Rs. Crores 98.75 31.50 561.76 75.50 16.00 10.50 49.00 1.58 7.50 13.50 19.96 22.49 10.00 1.00 # 98.75 31.50 75.50 16.00 10.50 49.00 1.58 7.50 13.50 0.01 0.01 5.00 1.00 0.10 -
1 2 3 1 2 3 4 5 7 8 9 10 11 12 13 14
93,750,000 (93,750,000) 31,500,080 (31,500,080) 5,350,110 75,500,000 (75,500,000) 16,000,000 (16,000,000) 10,500,000 (10,500,000) 49,000,000 (49,000,000) 1,584,000 (1,584,000) 7,500,000 (7,500,000) 13,500,000 (13,500,000) 5,000,000 (12,500) 22,487,500 (12,500) 10,000,000 (5,000,000) 1,000,000 (1,000,000) (40) 3,700 2,000,000 (2,000,000) 2,000 -
15
8.41
8.41
8.41
16
20.00
20.00 947.45 (7.50) (1.58) (16.00) (23.50) (48.58) 898.87
318.36 (7.50) (1.58) (16.00) (23.50) (48.58) 269.78
#
Value Rs 37,000.00
Annual Report 2009-2010
103
SCHEDULE ‘F’— INVESTMENTS (CONTD.)
No. NON TRADE - UNQUOTED Debentures (Irredeemable - Fully Paid up) - 5 % debentures of East India Clinic Limited Ordinary Shares (Fully paid up) of Sindhu Resettlement Corporation Limited Shares of Kochi Refineries Employees Consumer Co-operative Society Limited (Fully paid up) IN SUBSIDIARY COMPANIES UNQUOTED Equity Shares of Rs.10 each (fully paid up) of Numaligarh Refinery Limited Equity Shares of Rs.10 each (fully paid up) of Bharat PetroResources Limited IN ASSOCIATION OF PERSONS NON TRADE - UNQUOTED Capital Contribution in Petroleum India International Share in accumulated surplus of Petroleum India International as at 31st March 2010 (31st March 2009) Member Companies ### Bharat Petroleum Corporation Limited Bongaigaon Refinery & Petrochemicals Limited Engineers India Limited Hindustan Petroleum Corporation Limited Indian Oil Corporation Limited Indian Petrochemicals Corporation Limited Chennai Petroleum Corporation Limited Oil and Natural Gas Corporation Limited Oil India Limited Total Face Value Rs. Crores 1 (1) 6 (6) 500 (500) 0.01 # ## Book Value 31/03/2009 Rs. Crores Rs. Crores 0.01 # ## 0.01 0.01 # ## 0.01
1 2 3
1 2
453,545,998 (453,545,998) 702,552,610 (502,552,610)
453.55 702.55
453.55 702.55 1,156.10 10.00 12.65 22.65
453.55 502.55 956.10 10.00 12.98 22.98
12,201.32
16,715.19
# Value Rs. 19000 ## Value Rs. 5000 ### The total capital of AOP is Rs. 55.00 crores of which share of Bharat Petroleum Corporation Limited and Indian Oil Corporation Limited is Rs.10.00 crores each and other members have equal share of Rs. 5.00 crores each. Aggregate value of Unquoted Securities Rs.1,385.62 Crores (Rs. 1118.63 Crores). Aggregate value of Quoted Securities Rs. 10,815.70 Crores (Rs. 15,596.57 Crores). Market value of Quoted Securities Rs. 12,137.83 Crores (Rs. 15,338.25 Crores). Investment made and sold during the year 8.20% Oil Marketing Companies GOI Special Bonds 2024 No. Face Value Rs. Crores 316,500 316.50 Cost Rs. Crores 316.50
104
Bharat Petroleum Corporation Limited
SCHEDULE ‘FA’ — ADVANCE FOR INVESTMENTS
31/03/2009 Rs. Crores Rs. Crores
SHARE APPLICATION MONEY/ADVANCE TOWARDS EQUITY PENDING ALLOTMENT Maharashtra Natural Gas Limited Sabarmati Gas Limited Bharat Oman Refineries Limited 0.01 1,300.00 22.49 40.70 1,300.00
Total
1,300.01
1,363.19
SCHEDULE ‘G’ — INVENTORIES
31/03/2009 Rs. Crores Rs. Crores
Stores and spares [including in transit Rs. 1.02 crores (previous year Rs. 0.76 crores)]
168.09
181.46
Raw materials [including in transit Rs. 807.72 crores (previous year Rs. 547.71 crores)]
2,745.99
1,519.63
Stock in process
723.18
485.52
Finished products [including in transit Rs. 139.82 crores (previous year Rs. 78.40 crores)]
8,383.49
4,631.30
Packages
8.11
6.01
Total
12,028.86
6,823.92
Annual Report 2009-2010
105
SCHEDULE ‘H’ - SUNDRY DEBTORS
(Unsecured, Considered good unless otherwise stated) 31/03/2009 Rs. Crores Debts outstanding for over six months : Considered good * Considered doubtful Other debts Less : Provision for doubtful debts Total * Includes Rs. 25.81 crores (previous year Rs. 19.86 crores) which are secured. 170.44 250.11 420.55 2,492.24 2,912.79 (250.11) 2,662.68 198.60 183.64 382.24 1,227.07 1,609.31 (183.64) 1,425.67 Rs. Crores
SCHEDULE ‘I’ — CASH AND BANK BALANCES
31/03/2009 Rs. Crores Cash on Hand [Includes drafts and cheques on hand of Rs.80.56 crores (previous year Rs. 108.00 crores)] With Scheduled banks : In current accounts In deposit accounts * Remittances in transit Total 243.04 0.93 0.07 342.36 314.46 0.93 1.67 441.55 98.32 Rs. Crores 124.49
* Includes deposit of Rs. 0.80 crores (previous year Rs. 0.80 crores) that have been pledged / deposited with local authorities.
SCHEDULE ‘J’ - OTHER CURRENT ASSETS
31/03/2009 Rs. Crores Interest accrued on investments Interest accrued on bank deposits Subsidy / Oil Marketing Companies GOI Special Bonds Receivable (refer note 2 of Schedule 'X'-B) Deferred premium (foreign exchange forward contract) Others (refer note 4 of Schedule 'X'-B) Total 90.29 659.10 3,785.69 123.22 659.10 3,094.51 142.02 0.02 2,894.26 Rs. Crores 246.89 0.02 2,065.28
106
Bharat Petroleum Corporation Limited
SCHEDULE ‘K’ — LOANS AND ADVANCES
(Unsecured, Considered good unless otherwise stated) Rs. Crores Loans (Secured) : To companies Considered doubtful Less: Provision for doubtful loans To staff * Material given on Loan Less : Deposits Received Loans : To Subsidiaries Considered good To companies Considered good Considered doubtful Less: Provision for doubtful loans To others Interest accrued on Loans Advances: Advances Recoverable in cash, or in kind or for value to be received Advances considered doubtful Less : Provision for doubtful advances Dues from Petroleum Planning & Analysis Cell - Government of India Due from Subsidiaries Claims : Considered good Considered doubtful Less : Provision for doubtful claims Advance Income Tax ( Net of provision for taxation) Deposits : With Customs/Excise/Port Trust etc. Others** Considered doubtful Less: Provision for doubtful deposits Total 31/03/2009 Rs. Crores
0.10 (0.10) 623.20 0.46 (0.46) 623.20
0.10 (0.10) 632.46 0.46 (0.46) 632.46
327.00 2,870.17 2.81 (2.81) 45.00 44.88 3,287.05 180.84 3.99 (3.99) 180.84 29.10 1.63 346.35 62.01 (62.01) 346.35 130.79 83.89 81.49 165.38 165.38 4,764.34
95.00 1,658.53 2.81 (2.81) 40.75 33.63 1,827.91 272.47 4.27 (4.27) 272.47 29.91 3.27 356.08 55.65 (55.65) 356.08 194.42 104.42 81.83 186.25 186.25 3,502.77
* Includes : Dues from Officers : Rs. 3.97 crores (previous year Rs. 4.44 crores) Maximum balances : Rs. 5.34 crores (previous year Rs. 6.11 crores) Dues from Directors : Rs. 0.15 crores (previous year Rs. 0.01 crores) Maximum balances : Rs. 0.16 crores (previous year Rs. 0.08 crores) ** Includes Rs.4.55 crores(previous year Rs. 5.81 crores) alongwith interest of Rs. 4.19 crores (previous year Rs. 5.73 crores) deposited as per court order in Land Compensation cases for which appeals are pending. Annual Report 2009-2010
107
SCHEDULE ‘L’ — LIABILITIES
Rs. Crores Current Liabilities : Sundry creditors Total outstanding dues of micro and small enterprises (refer note 10 of Schedule 'X'-B) Total outstanding dues of creditors other than micro and small enterprises Due to Subsidiaries Deposits from Customers Deposits for Containers Unclaimed Dividend * Unclaimed Deposits * Unclaimed Interest on Deposits * Other liabilities Interest on loans (accrued but not due ) Total 0.72 8,359.25 99.72 25.81 3,755.66 3.11 0.28 0.09 2,212.07 93.85 14,550.56 0.73 6,213.85 131.12 19.64 3,343.98 3.18 0.37 0.21 1,342.10 63.69 11,118.87 31/03/2009 Rs. Crores
* No amount is due at the end of the year for credit to Investors Education and Protection Fund.
SCHEDULE ‘M’ - PROVISIONS
Rs. Crores Provision for Taxation (Net of Tax paid) Proposed dividend Corporate Dividend Tax on proposed dividend Provision for employee / retirement benefits Total 759.78 506.16 72.77 1,241.88 2,580.59 31/03/2009 Rs. Crores 493.72 253.08 31.45 934.19 1,712.44
SCHEDULE ‘N’ - SALE OF PRODUCTS
2008-09 Rs. Crores Sales Subsidy on LPG (Domestic) & SKO (PDS) (As per the existing scheme of the Government of India) Subsidy/ Oil Marketing Companies GOI Special Bonds (refer note 2 of Schedule 'X'-B) Total 131,499.72 145,392.07 5,265.03 16,216.38 125,643.84 590.85 Rs. Crores 128,609.48 566.21
108
Bharat Petroleum Corporation Limited
SCHEDULE ‘O’ — MISCELLANEOUS INCOME
Rs. Crores Interest on bank deposits and others * Tax deducted at source - Rs. 33.17 crores ( previous year Rs. 21.47 crores) Income from Investments NON TRADE Current - Interest on Oil Marketing Companies GOI Special Bonds Long Term - Interest on Oil Marketing Companies GOI Special Bonds TRADE Dividend from subsidiaries from others Income from AOP (Petroleum India International) Total Income from Investments Write back of liabilities no longer required (net) Profit on sale/write off of fixed assets (net) Foreign Exchange fluctuations (net) Other income # Tax deducted at source -Rs.8.35 crores (previous year Rs. 6.24 crores) Total 289.17 2008-09 Rs. Crores 160.13
354.66 512.38 867.04 68.03 40.24 0.04 108.31 975.35 4.07 556.53 415.12 2,240.24
422.96 108.35 531.31 90.71 27.84 1.24 119.79 651.10 17.58 679.93 1,508.74
* Includes interest received from Income Tax authorities Rs. 1.34 crores (previous year Rs. 10.85 crores). # Includes amortisation of capital grants Rs. 0.09 crores (previous year Rs. 0.09 crores).
SCHEDULE ‘P’ - INCREASE/(DECREASE) IN INVENTORY
Rs. Crores 31/03/2009 Value of closing stock of Finished goods Stock in process Less : Value of opening stock of Finished goods Stock in process Total 8,383.49 723.18 4,631.30 485.52 9,106.67 5,116.82 2008-09 Rs. Crores
4,631.30 485.52
6,126.78 565.92 5,116.82 3,989.85 6,692.70 (1,575.88)
SCHEDULE ‘Q’ - RAW MATERIALS CONSUMED
Opening Stock Add : Purchases Less: Closing Stock Total Rs. Crores 1,519.63 51,818.81 (2,745.99) 50,592.45 2008-09 Rs. Crores 3,757.88 51,698.68 (1,519.63) 53,936.93
Annual Report 2009-2010
109
SCHEDULE ‘R’ — CONSUMPTION OF STORES, SPARES AND MATERIALS
Rs. Crores 244.55 (165.03) 79.52 2008-09 Rs. Crores 218.38 (139.34) 79.04
Stores, spares and materials Less : Charged to other revenue accounts Total
SCHEDULE ‘S’ - POWER AND FUEL
2008-09 Rs. Crores Power and Fuel Less: Consumption of fuel out of own production Total 2,523.83 (2,286.71) 237.12 Rs. Crores 2,800.30 (2,733.13) 67.17
SCHEDULE ‘T’ - EMPLOYEES’ REMUNERATION AND OTHER BENEFITS
2008-09 Rs. Crores Salaries and wages (refer note 7 of Schedule 'X'-B) Contribution to provident fund Contribution to gratuity fund Contribution to other funds Welfare expenses Total 1,605.53 99.79 100.89 18.08 316.83 2,141.12 Rs. Crores 1,026.27 65.21 211.73 9.71 571.96 1,884.88
SCHEDULE ‘U’ - INTEREST
2008-09 Rs. Crores On Debentures On Fixed Loans Others Total 140.35 146.58 724.02 1,010.95 Rs. Crores 31.76 292.39 1,842.22 2,166.37
110
Bharat Petroleum Corporation Limited
SCHEDULE ‘V’ — OTHER OPERATING AND ADMINISTRATION EXPENSES
Rs. Crores Repairs and maintenance : Machinery Building Others 384.72 26.53 82.34 493.59 27.78 226.01 33.30 0.27 131.83 0.01 6.01 72.56 828.98 221.07 108.51 98.81 24.24 651.62 2,924.59 2008-09 Rs. Crores 347.09 23.67 90.20 460.96 25.82 122.39 32.93 0.02 0.28 127.75 0.02 12.17 4.17 (30.02) 515.42 1.77 95.87 109.66 26.11 1,302.73 569.29 3,377.34
Insurance Rent Rates and taxes Charities and donations Remuneration to auditors Utilities Write off : Bad debts and Claims Others Provision for : Doubtful debts and advances Dimunition in value of investments Loss on sale of current Investments Loss on sale / write off of fixed assets (net) Charges paid to other oil companies Travelling and conveyance Telephone, Telex, Cables, Postage etc. Foreign Exchange fluctuations (net) Other expenses Total
SCHEDULE ‘W’ - PRIOR PERIOD INCOME/(EXPENSES) (NET)
Sale of products Miscellaneous Income Purchase of product for resale Duties, taxes etc. and other product charges Transportation Consumption of stores, spares and materials Power and Fuel Rent, Rates & Taxes Employees' remuneration and other benefits Other operating and administration expenses Interest Depreciation Interest income Total Rs. Crores 17.01 4.22 10.26 (2.71) 1.63 (0.83) (0.07) (2.68) (72.00) (8.07) (1.94) (0.34) 0.09 (55.43) 2008-09 Rs. Crores (12.93) 1.59 1.11 0.94 (6.19) 0.99 (1.38) (1.47) (6.98) 8.38 2.48 (13.46)
Annual Report 2009-2010
111
SCHEDULE ‘X’— STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2010
A. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
1. BASIS FOR PREPARATION The financial statements are prepared under historical cost convention to comply in all material aspects with the mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules 2006 and the provisions of the Companies Act, 1956, adopting accrual system of accounting unless otherwise stated. USE OF ESTIMATES The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual amounts and estimates are recognised in the period in which they materialise. FIXED ASSETS 3.1 3.2. LAND Land acquired on lease where period of lease exceeds 99 years is treated as freehold. FIXED ASSETS OTHER THAN LAND 3.2.1. 3.2.2. 3.2.3. 3.3. Fixed Assets are stated at cost of acquisition (including incidental expenses) less accumulated depreciation. Expenditure on assets, other than plant and machinery, LPG cylinders and pressure regulators, not exceeding Rs.1,000 per item is charged to revenue. Machinery spares that are specific to a fixed asset are capitalised along with the fixed asset. Replacement of such spares is charged to revenue.
2.
3.
EXPENDITURE DURING CONSTRUCTION PERIOD Direct expenses including borrowing cost incurred during construction period on capital projects are capitalised. Indirect expenses of the project group which are allocated to projects costing Rs. 5 crores and above are also capitalised. Crop compensation expenses incurred in the process of laying pipelines are capitalised.
3.4.
INTANGIBLE ASSETS 3.4.1. 3.4.2. Cost of right of way that is perennial in nature is not amortised. Expenditure incurred for creating/acquiring other intangible assets of Rs. 0.50 crores and above, from which future economic benefits will flow over a period of time, is amortised over the estimated useful life of the asset or five years, whichever is lower, from the time the intangible asset starts providing the economic benefit. In other cases, the expenditure is charged to revenue in the year the expenditure is incurred.
3.4.3. 4.
IMPAIRMENT OF ASSETS The values of fixed assets in respect of Cash Generating Units are reviewed by the management for impairment at each Balance Sheet date if events or circumstances indicate that the carrying values may not be recoverable. If the carrying value is more than the net selling price of the asset or present value, the difference is recognized as an impairment loss. BORROWING COSTS Borrowing costs attributable to acquisition, construction or production of qualifying asset are capitalised as part of the cost of that asset, till the month in which the asset is ready for use. Other borrowing costs are recognised as an expense in the period in which these are incurred. DEPRECIATION 6.1. Depreciation on fixed assets is provided under the straight line method, at rates prescribed under Schedule XIV to the Companies Act, 1956, except in following cases: 6.1.1. Premium paid for acquiring leasehold land for lease period not exceeding 99 years, is amortised over the period of lease. 6.1.2. LPG cylinders, pressure regulators and other fixed assets costing not more than Rs 5,000 each are depreciated @ 100 percent in the year of capitalisation. Bharat Petroleum Corporation Limited
5.
6.
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SCHEDULE ‘X’ — (CONTD.)
6.1.3. 6.1.4. Assets not owned by the Corporation are amortised over a period of five years from the year of capitalisation. Computer equipments and peripherals, and mobile phones are depreciated over a period of four years. Furniture provided at the residence of management staff is depreciated over a period of seven years.
6.2. 7.
Depreciation is charged on addition / deletion on pro-rata monthly basis including the month of addition / deletion. Current investments are valued at lower of cost or fair market value. Long-term investments are valued at cost. Provision for diminution is made to recognise a decline, other than of temporary nature, in the value of such investments. Raw material and Intermediates are valued at cost or net realisable value whichever is lower. Cost is determined as follows: 8.1.1. 8.1.2. Raw materials on weighted average cost. Purchased raw materials in transit are carried at cost. Intermediate Stocks at raw material cost plus cost of conversion.
INVESTMENTS 7.1. 7.2.
8.
INVENTORY 8.1.
8.2. 8.3. 8.4. 9. 9.1.
Finished products are valued at weighted average cost or at net realisable value, whichever is lower. Stores are valued at weighted average cost. Obsolete stores are valued at Re. Nil. Slow moving stores/ other materials identified as surplus and no longer usable are valued at Re. Nil. Packages are valued at weighted average cost or at net realisable value, whichever is lower. Sales are net of trade discounts and include, inter alia, excise / customs duties / claim from Petroleum Planning and Analysis Cell, Government of India and other elements allowed by the Government from time to time Claims/Surrenders including subsidy on LPG and SKO on/to Petroleum Planning and Analysis Cell, Government of India are booked on `in principle acceptance’ thereof on the basis of available instructions/clarifications subject to final adjustments after necessary audit, as stipulated. Adjustments if any, on completion of audit are recognised. Other claims are booked when there is a reasonable certainty of recovery. Claims are reviewed on a periodical basis and if recovery is uncertain, provision is made in the accounts. Income from sale of scrap is accounted for on realisation.
REVENUE RECOGNITION
9.2.
9.3. 9.4.
10. CLASSIFICATION OF INCOME/EXPENSES 10.1. Expenditure on Research, other than capital expenditure, is charged to revenue in the year in which the expenditure is incurred. 10.2. Income/expenditure upto Rs. 0.05 crore in each case pertaining to prior years is charged to the current year. 10.3. Prepaid expenses upto Rs. 0.05 crore in each case, are charged to revenue as and when incurred. 10.4. Deposits placed with Government agencies/ local authorities which are perennial in nature are charged to revenue in the year of payment. 11. EMPLOYEE BENEFITS 11.1. Contributions to Provident Fund for the year are recognised in the Profit & Loss Account. 11.2. The liability towards gratuity, leave encashment, post retirement benefits and other long term benefits are provided for in the accounts based on actuarial valuation as at the end of the year. To determine the present value of the defined benefit obligations and the current and past service costs, the Projected Unit Credit Method is used. Actuarial gains and losses are recognised in the Profit & Loss Account as income or expense. Annual Report 2009-2010
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SCHEDULE ‘X’ — (CONTD.)
12. DUTIES ON BONDED STOCKS 12.1. 12.2. Customs duty on Raw materials/Finished goods lying in bond are provided for at the applicable rates except where liability to pay duty is transferred to consignee. Excise duty on finished stocks lying in bond is provided for, at the assessable value applicable at each of the locations at maximum rates based on end use.
13. FOREIGN CURRENCY & DERIVATIVE TRANSACTIONS 13.1. 13.2. 13.3. Transactions in foreign currency are accounted at the exchange rate prevailing on the date of transaction. Monetary items denominated in foreign currency are converted at exchange rates prevailing on the date of Balance Sheet. Foreign Exchange differences arising at the time of translation or settlement are recognised as income or expense in the Profit & Loss Account either under foreign exchange fluctuations or interest as the case may be. Premium/discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the Profit & Loss Account. 13.4. Gains / losses arising on settlement of Derivative transactions entered into by the Corporation to manage the commodity price risk and exposures on account of fluctuations in interest rates and foreign exchange are recognised in the Profit & Loss Account. Provision for losses in respect of outstanding contracts as on balance sheet date is made based on mark to market valuations of such contracts.
14. GOVERNMENT GRANTS 14.1. In case of depreciable assets, the cost of the asset is shown at gross value and grant thereon is taken to Capital Reserve as deferred income, which is recognised in the Profit & Loss Account over the useful life of the asset. Government grants of the nature of promoters’ contributions are credited to Capital Reserve and treated as part of Shareholders’ Funds.
14.2.
15. PROVISIONS, CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS 15.1. Provision is recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Corporation. Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs.0.05 crores in each case. Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand.
15.2.
15.3. 15.4.
16. TAXES ON INCOME 16.1. 16.2. 16.3. Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961. Deferred tax on account of timing difference between taxable and accounting income is provided using the tax rates and tax laws enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are not recognised unless, in the management judgement there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.
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Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONTD.)
B. NOTES FORMING PART OF ACCOUNTS
1) In respect of sharing of under-recoveries on sensitive petroleum products viz. MS, HSD, LPG (Domestic) and SKO (PDS), as advised by the Ministry of Petroleum & Natural Gas, a part of the under-recovery suffered by the Corporation during the year was compensated by ONGC and GAIL by offering discount on price of Crude Oil, SKO and LPG purchased from them. Accordingly, the Corporation has accounted the discount as follows: a) b) 2) Rs.2,927.27 crores (previous year Rs. 6,709.94 crores) discount on crude oil purchased from ONGC has been adjusted against raw material cost; and Rs. 702.57 crores (previous year Rs. 846.50 crores) discounts on SKO and LPG purchased from ONGC/GAIL has been adjusted against “Purchase of products and crude oil for resale”.
In lieu of the under-recoveries on sale of petroleum products during 2009-10, based on the approval of Government of India, the Corporation has accounted for the subsidy amounting to Rs.5,265.03 crores as income (previous year Rs.16,216.38 crores of Oil Marketing Companies GOI Special Bonds were accounted as Income). Out of the above, an amount of Rs.2,894.26 crores (previous year Oil Marketing Companies GOI Special Bonds amounting to Rs.2,065.28 crores) receivable as on 31st March 2010 from Government of India is shown as Other Current Assets in Schedule J. Debentures: a) The Corporation had allotted redeemable non-convertible 10.35% Debentures of face value of Rs.1,000 crores on 12th December 2008. These are secured by English mortgage, on first pari passu charge basis, by way of a Registered Debenture Trust Deed over the fixed assets of the Company, viz., a Flat at Mumbai and the Plant and Machinery in respect of Hydrocracker Unit and Aromatic Recovery Unit of the Mumbai Refinery. In order to maintain the security cover of 1.25 times, all future immovable properties including Land, Plant & Machinery and Fixtures & Fittings shall be a part of the Premises and Plant & Machinery which are mortgaged. These Debentures are redeemable at par on 11th June 2010. The Corporation has allotted redeemable non-convertible 7.73% Debentures of face value of Rs.1,000 crores on 12th October 2009. These are secured by first legal mortgage in English form by way of a Registered Debenture Trust Deed over the fixed assets of the Company, viz., a Flat at Mumbai and the Plant & Machinery in respect of Refinery Modernisation Project Crude Distillation Unit / Vacuum Distillation Unit, Catalytic Cracking Unit, Fluid Catalytic Cracking Unit, Diesel Hydro Desulphurisation Unit and Naptha Hydro Desulphurisation Unit of the Mumbai Refinery. In order to maintain the security cover of 1.25 times, all future immovable properties including Land, Plant & Machinery and Fixtures & Fittings shall be a part of the Premises and Plant & Machinery which are mortgaged. These Debentures are redeemable at par on 9th October 2012.
3)
b)
4)
As per the scheme of Amalgamation of the erstwhile Kochi Refineries Limited with the Corporation approved by the Government of India, 33,728,738 equity shares of the Corporation were allotted (in lieu of the shares held by the Corporation in the erstwhile Kochi Refineries Limited) to a trust for the benefit of the Corporation in the financial year 2006-07. Accordingly the cost of the original investment of Rs. 659.10 crores is reflected as ‘Others’ in Schedule ‘J’ - Other Current Assets. The income distributed by the trust during the year 2009-10 amounting to Rs. 23.61 crores (previous year Rs. 13.49 crores) has been included in ‘Other income’ in Schedule ‘O’ – Miscellaneous Income. One shareholder of erstwhile KRL has challenged the amalgamation before Delhi High Court, which is pending adjudication.
5) 6) 7)
Provision for taxation in the Profit & Loss Account includes Rs.1.50 crores (previous year Rs. 1.40 crores) towards wealth tax. The Corporation has numerous transactions with other oil companies, which are reconciled on an ongoing basis and subject to confirmation. Adjustments, if any, arising therefrom are not likely to be material on settlement. The Corporation has made a provision of Rs.463 crores (previous year Rs.114 crores for management staff) towards balance liability on revision in emoluments of management staff and pending pay-revision of non-management staff on an estimated basis. Further, this has been considered for making provision at the year end for employee benefits based on actuarial valuations. Annual Report 2009-2010
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SCHEDULE ‘X’ — (CONTD.)
8) The Corporation has reclassified the entire portfolio of long term investments in 6.35% Oil Marketing Companies GOI Special Bonds 2024 – Rs.3,099.96 crores and 6.90% Oil Marketing Companies GOI Special Bonds 2026 – Rs.4,986.71 crores to current investments during the year, considering the future funds requirement. Accordingly an amount of Rs. 1086.50 crores has been provided for the diminution in value of these investments based on mark to market as on 31.3.2010. Impairment of Assets Determination as to whether and how much an asset is impaired involve Management estimates of highly uncertain matters such as international prices of crude oil and products, duty structure and Government policies. It is assumed that suitable mechanism would be in place, in line with earlier/ current year(s), to provide compensation towards under-recoveries of margin, if any, on account of sale of sensitive petroleum products in subsequent years. Hence, future cash flows have been worked out based on the desired margins for deciding on impairment of related Cash Generating Units. No impairment is therefore considered as at 31st March 2010. 10) To the extent, the Corporation has received intimation from the “suppliers” regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, the details are provided as under for the year 2009-10: Rs. Crores 31.03.10 (i) (ii) (iii) Principal amount remaining unpaid as on 31 March
st
9)
31.03.09 0.73 -
0.72 -
Interest due thereon remaining unpaid as on 31st March Interest paid by the Corporation in terms of Section 16 of the Micro, Small And Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during the period Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the period) but without adding the interest specified under the Micro, Small And Medium Enterprises Development Act, 2006 Interest accrued and remaining unpaid as at 31st March Interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise
(iv)
-
-
(v) (vi)
-
-
11) Disclosure as per requirements of Accounting Standard 15 - “Employee Benefits” : Gratuity: The Company has a defined benefit gratuity plan managed by a trust. The contribution based upon actuarial valuation is paid to a trust which is invested as per investment pattern prescribed by the Government in plan assets. Gratuity is paid to the Staff member who has put in a minimum qualifying period of 5 years of continuous service on superannuation, resignation, termination or to his nominee on death. Leave Encashment: The Employees are entitled to accumulate Earned Leave and Sick Leave, which can be availed during the service period. Employees are also allowed to encash the accumulated earned leave during the service period. Further, the accumulated earned leave and sick leave can be encashed by the employees on superannuation, resignation, and termination or by nominee on death. Other Defined Benefits: These are (a) Post Retirement Medical Scheme benefit to employees, spouse, dependent children and dependent parents. (b) Medical benefits carry forward entitlements (c) Pension/ex-gratia scheme to the retired employees who are entitled to receive the monthly pension / ex-gratia for life; (d) Death in service / Permanent disablement given to employee, the spouse of the employee, provided the deceased’s family/disabled employee deposits retirement dues such as PF, Gratuity, Leave encashment payable to them with the Corporation; and (e) Resettlement allowance paid to employees to permanently settle down at a place other than the location of last posting at the time of retirement.
116
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONTD.)
Rs.Crores Post Retirement Burmah Shell Pension Medical - Non Funded - Non Funded Ex-gratia scheme Non Funded
Disclosures as per requirements of Accounting Standard 15 continued :
Gratuity - Funded Leave Encashment Non Funded
a) Reconciliation of balances of Defined Benefit Obligations. 2009-10 469.34 37.49 18.38 (8.08) 68.84 585.97 2008-09 235.54 20.00 21.95 104.07 (8.28) 96.06 469.34 2009-10 323.86 23.60 19.31 (77.34) 203.40 492.83 2008-09 280.79 23.00 29.20 (34.25) 25.12 323.86 2009-10 265.29 21.00 16.80 (10.84) 14.77 307.02 2008-09 118.55 10.00 12.20 (10.64) 135.18 265.29 2009-10 61.55 4.35 (10.81) 11.82 66.91 2008-09 61.08 4.00 (10.61) 7.08 61.55
Defined Obligations at the beginning of the year Interest Cost Current Service Cost Past service cost Benefits paid Actuarial (Gains)/ Losses on obligations Defined Obligations at the end of the year
Death / Permanent disablement Non Funded 2009-10 2008-09 10.45 8.95 0.66 1.00 (3.92) (3.17) 0.23 3.67 7.42 10.45 Re-settlement Allowance - Non Funded 2009-10 2008-09 4.78 4.77 0.44 0.47 0.95 1.08 (0.02) (0.01) (1.42) (1.53) 4.73 4.78
2009-10 235.70 18.65 14.75 (19.53) (7.52) 242.05
2008-09 234.10 (7.95) 9.55 235.70
b) Reconciliation of balances of Fair Value of Plan Assets in respect of Gratuity Fund Fair Value at the beginning of the year Expected Return Acturial gains/ (losses) Actual Return on Plan assets Contribution by employer Benefits paid Fair Value of Plan Assets at the end of the year 257.41 24.56 (0.74) 23.82 53.65 (8.08) 326.80 259.17 211.93 492.83 323.86 307.02 265.29 66.91 61.55 7.42 225.86 18.51 11.64 30.15 9.68 (8.28) 257.41
c) Amount recognised in Balance sheet (a-b)
10.45
4.73
4.78
242.05
235.70
d) Amount recognised in P & L Account 18.38 37.49 (24.56) 69.58 100.89 211.93 246.31 77.32 52.57 84.42 203.40 25.12 14.77 (18.51) 135.18 157.38 11.82 16.17 7.08 11.08 0.23 0.89 3.67 4.67 (1.42) (0.03) (1.53) 0.02 (7.52) 25.88 9.55 243.65 20.00 23.60 23.00 21.00 104.07 10.00 21.95 19.31 29.20 16.80 12.20 4.35 4.00 0.66 1.00 0.95 0.44 1.08 0.47 14.75 18.65 234.10 -
Current Service Cost
Past Service cost
Interest Cost
Expected Return on Plan Asssets
Actuarial (Gains)/ Losses
Expenses for the period
e) Major Actuarial Assumptions 8.25% 7.00% 8.00% 8.00% 4.00% 7.00% 7.75% 8.25% 7.75% 4.00% 8.25% 6.00% 7.75% 6.00% 8.25% 7.75% 8.25% 7.75% 8.25% 7.75% 8.25% 7.75% -
Discount Rate
Salary Escalation/ Inflation
Expected Return on Plan assets
Notes :
i) The estimates for future salary increases, considered in acturial valuation, take into account inflation, seniority, promotion and other relevant factors
Annual Report 2009-2010
31.3.2010 31.3.2009 % % 32.06 30.28 29.77 47.20 0.21 6.12 15.20 32.06 7.11 100.00 100.00
ii) The expected return on plan assets is based on market expectation, at the beginning of the period, for returns over the entire life of the related obligation g) As per our best estimate, Rs.70.27 crores is expected to be paid to the Gratuity Fund as contribution in year 2010-11 h) Effect of Increase/ Decrease of 1% in assumed medical cost trend to the Post Retirement Medical liability : 31.3.2010 31.3.2009 Change in Liability for : 1% increase in Discount Rate (26.86) (23.21) Change in Service Cost for : 1% increase in Discount Rate (1.37) (0.99) Change in Liability for : 1% decrease in Discount rate 29.60 25.57 Change in Service cost for :1% decrease in Discount rate 1.65 1.20
f) Investment pattern for Gratuity Fund as on Category of Asset Government of India Asset Corporate Bonds Special deposit Scheme State Government Others Total
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SCHEDULE ‘X’ — (CONTD.)
12) Related Party Disclosures as per Accounting Standard 18 Names of the Related parties : Indraprastha Gas Limited Petronet India Limited Petronet CCK Limited Petronet CI Limited Petronet LNG Limited Bharat Oman Refineries Limited Petroleum Infrastructure Limited Petroleum India International Maharashtra Natural Gas Limited Central UP Gas Limited Sabarmati Gas Limited Bharat Stars Services Private Limited Premier Oil Cachar B.V. Bharat Renewable Energy Limited Matrix Bharat Marine Services Pte. Ltd. Delhi Aviation Fuel Facility Private Limited VB (Brazil) Petroleo Private Ltda. Rs.crores 2009-10 a. b. c. d. e. f. g. h. i. Purchase of goods Sale of goods Rendering of Services Receiving of Services Interest Income Dividend Received Investments and Advance for Investments Loans and advances Outstandings at period end – Receivables – Payables Management Contracts (Employees on deputation) Lease Rentals : 1,448.95 1,883.23 20.63 52.84 210.00 29.48 25.00 1,239.39 3,042.23 56.13 5.25 0.29 2008-09 1,394.24 513.07 4.53 47.44 49.56 27.84 414.00 1,557.84 1,742.46 119.61 10.24 0.27
Nature of Transactions
j. k.
Key Management Personnel (Whole time Directors)
M/s. Ashok Sinha (Chairman & Managing Director), S. Mohan (Director Human Resources) S. Radhakrishnan (Director Marketing), S. K. Joshi (Director Finance) R. K. Singh (Director Refineries)
Details of remuneration to Directors are given in note 22 of Notes to Accounts. 13) Earnings per share Profit / (Loss) after Tax Weighted average number of shares outstanding during the year Basic earnings per share Diluted earnings per share Rs. Crores Crore nos. Rs. Rs. 2009-10 1537.62 36.15 42.53 42.53 2008-09 735.90 36.15 20.35 20.35
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Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONTD.)
14) Deferred Tax Liability As per the requirement of the Accounting Standard 22 - “Accounting for Taxes on Income” the net deferred tax asset credited to Profit and Loss Account during the year is Rs.303.25 crores - excluding Rs.76.69 crores credited as part of earlier year adjustment. (previous year net deferred tax liability credited Rs. 242.13 crores). The period end position is given below: Rs. Crores 31-03-2010 DEFERRED TAX LIABILITY: Depreciation DEFERRED TAX ASSET: Disallowance u/s 43B of the Income tax Act, 1961 including employee benefits. Provisions for mark to market for investments & loans, doubtful debts, claims, etc. Total Deferred Tax Asset Net Deferred Tax Liability 539.59 504.59 1044.18 859.30 365.94 257.63 623.57 1,239.24 1903.48 1,862.81 31-03-2009
15) In compliance with AS – 27 ‘Financial Reporting of Interests in Joint Ventures’, the required information is as under: a) Jointly controlled entities: Country of Incorporation Percentage of ownership interest as on 31.03.2010 Indraprastha Gas Limited Petronet India Limited Petronet CCK Limited Petronet CI Limited (#) Petronet LNG Limited Bharat Oman Refineries Limited Petroleum Infrastructure Limited (#) Central UP Gas Limited Maharashtra Natural Gas Limited Sabarmati Gas Limited Bharat Stars Services Private Limited Premier Oil Cachar B.V. @ Bharat Renewable Energy Limited Matrix Bharat Marine Services Pte. Ltd. Delhi Aviation Fuel Facility Pvt. Ltd. # Company under liquidation India India India India India India India India India India India Netherlands India Singapore India @ Shares sold during the year 22.50 16.00 49.00 11.00 12.50 50.00 50.00 22.50 22.50 25.00 50.00 33.33 50.00 37.00 31.03.2009 22.50 16.00 49.00 11.00 12.50 50.00 50.00 22.50 22.50 25.00 50.00 50.00 33.33 50.00 -
Bharat PetroResources Limited, a 100% subsidiary of the Corporation, holds 50% equity in VB (Brazil) Petroleo Private Ltda., a joint venture company incorporated in Brazil. Annual Report 2009-2010
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SCHEDULE ‘X’ — (CONTD.)
b) In respect of jointly controlled entities, the Corporation’s share of assets, liabilities, income, expenditure, contingent liabilities and capital commitments compiled on the basis of unaudited / audited financial statements received from these joint ventures are as follows: (Rs. Crores) 31.03.2010 (i) Assets - Long Term Assets - Investments - Current Assets (ii) Liabilities - Loans (Secured & Unsecured) - Current Liabilities and Provisions - Deferred Tax (iii) (iv) (v) (vi) Income Expenses Contingent Liabilities Capital Commitments 5,237.71 672.26 49.03 2,755.91 2,698.51 433.99 1,664.94 3,326.95 435.75 40.42 1,501.85 1,397.55 100.10 2,580.94 5,461.99 451.86 1,332.40 3,888.06 115.85 1,013.23 31.03.2009
16) Segment Reporting: The Corporation operates in a single segment - Refinery and Marketing activities, i.e, Downstream petroleum sector. Considering the nature of business and operation, there is no reportable segment (business and/or geographical) in accordance with the requirements of Accounting Standard 17. 17) Disclosure as required by Clause 32 of Listing Agreement Rs. Crores Balance as on 31.03.2010 a) Loans and advances in the nature of loans to subsidiary company - Bharat PetroResources Limited b) c) Loans and advances in the nature of loans to associates Loans and advances in the nature of loans where there is i) No repayment schedule or repayment beyond 7 years - Petronet CCK Limited ii) No interest or interest below Section 372A of Companies Act d) Loans and advances in the nature of loans to firms/ companies in which directors are interested - Bharat Oman Refineries Limited e) Investment by the loanee in the shares of BPCL and its subsidiary company 2,810.10 1,608.26 2,810.10 1,608.26 60.07 50.27 60.07 50.27 327.00 95.00 350.00 95.00 31.03.2009 Maximum amount outstanding during the period 2009-10 2008-09
120
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONTD.)
18. INTANGIBLE ASSETS In accordance with Accounting Standard 26 , details of Intangible Assets recognised and amortised during the year are given below: a) Intangible assets - being amortised
Rs. Crores
USEFUL LIFE (NO. OF MONTHS) AS AT ADDITIONS DELETIONS/ 01-04-2009 RECLASSIFICATION (3) 18.63 11.86 1.18 13.80 1.50 36.54 83.51 80.62 2.89 83.51 27.23 110.74 42.37 31.60 3.14 39.68 23.55 1.50 1.27 0.23 7.78 12.05 10.77 15.80 29.60 5.78 3.52 1.18 0.25 0.30 11.86 11.52 0.22 8.29 26.92 (4) (5) (6) (7) (8) (9) (10) 11.74 0.55 9.30 1.50 31.33 54.42 42.37 AS AT 31-03-2010 UPTO 31-03-2009 THIS YEAR DELETIONS/ RECLASSIFICATION GROSS AMOUNT AMORTISATION NET AMOUNT UPTO AS AT AS AT 31-03-2010 31-03-2010 31-03-2009 (11) 26.92 0.12 0.63 20.30 8.35 56.32 41.14 (12) 18.63 0.34 0.93 8.02 0.23 12.99 41.14 49.02
PARTICULARS
(1) Perennial 36 48 60 60 60
(2)
1. RIGHT OF WAY
2. SOFTWARE
3. SOFTWARE
4. SOFTWARE
5. DEVELOPMENT RIGHTS
6. PROCESS LICENSE
TOTAL
PREVIOUS YEAR
b) Intangible Assets- pending amortisation*
USEFUL LIFE (NO. OF MONTHS) AS AT ADDITIONS 01-04-2009 (3) 5.96 5.96 5.96 2.53 2.53 (4) (5) 5.87 5.87 CAPITALISATIONS GROSS AMOUNT AS AT 31-03-2010 (6) 2.62 2.62 5.96 UPTO 31-03-2009 (7) AMORTISATION THIS YEAR (8) DELETIONS/ RECLASSIFICATION (9) -
Rs. Crores
NET AMOUNT UPTO AS AT AS AT 31-03-2010 31-03-2010 31-03-2009 (10) (11) 2.62 2.62 5.96 (12) 5.96 5.96 -
PARTICULARS
(1)
(2)
1. SOFTWARE
TOTAL
PREVIOUS YEAR
Annual Report 2009-2010
* To be amortised from the time the Intangible Asset starts providing economic benefits Note: There are no internally generated Intangible Assets
121
SCHEDULE ‘X’ — (CONTD.)
19. 19.1 19.2 Capital Commitments and Contingent Liabilities : Capital Commitments : Estimated amount of contracts remaining to be executed on capital account and not provided for 1,300.53 2,697.81 Contingent Liabilities : (a) In respect of taxation 59.88 45.30 (b) Other Matters : i) Surety bonds executed on behalf of other oil companies for excise/customs duties for which BPCL has signed as surety 195.30 166.33 ii) Claims against the Corporation not acknowledged as debts : (a) Excise and customs matters 1,190.86 253.84 (b) Sales tax matters 2,668.30 2,412.98 (c) Others * 263.12 285.25 These include Rs.751.55 crores (previous year Rs. 668.14 crores) against which the Corporation has a recourse for recovery and Rs.29.42 crores (previous year Rs. 30.80 crores) on capital account. * In respect of lands acquired, land owners have claimed higher compensation before various Authorities/ Courts, which are yet to be settled. The estimated contingent liability of Rs. 54.63 crores (previous year Rs. 54.42 crores) in such cases is included above. iii) Claims on account of wages, bonus/ex-gratia payments in respect of pending court cases. 4.55 1.10 iv) Guarantees given on behalf of Subsidiaries/JV's 3,700.43 611.00 20.1 Foreign Exchange losses amounting to Rs.37.42 crores (previous year Rs. 194.58 crores) are regarded as adjustment to Interest cost and debited to Interest expenditure. 20.2 The deferred premium amounting to Rs.90.29 crores (previous year Rs. 123.21 crores) in respect of forward exchange contract will be recognised in the Profit and Loss Account of one or more subsequent accounting periods. 21.1 The Corporation has on the Balance Sheet date, outstanding forward contracts amounting to USD 816.95 million (previous year USD 424.33 million) to hedge the foreign currency exposure towards loans; this includes USD 55 million (previous year USD 107.50 million) in respect of long term loans. The Corporation does not generally hedge the risks on account of foreign currency exposure for the payment of crude oil. Following are the unhedged foreign currency exposures as on 31.03.2010: 31/03/2009 Exposure Type USD Million USD Million Imports 649.63 323.90 Buyers Credit Loan (Short Term) 628.00 55.00 ECB (Long Term) 170.00 200.00 Export Debtors 163.87 25.74 21.2 The Corporation has on the Balance Sheet date the following outstanding derivatives for hedging purposes: Instrument Description Quantity OTC Swap Spread between Petroleum Products and Crude Oil 3.35 million barrels OTC Swap Spread between Dated Brent Crude and Dubai Crude Oil 0.30 million barrels For the year 2009-10, the Corporation has provided for losses on Mark-to-Market basis for outstanding derivatives in accordance with the principle of prudence and other applicable guidelines. Accordingly, Rs. 8.05 crores (previous year Rs. 3.96 crores) has been provided for losses on the above outstanding derivatives. Managerial Remuneration : 2008-09 Rs. Crores Rs. Crores Salary and allowances 0.76 0.54 Contributions to Provident Fund and other funds 0.10 0.09 Other benefits 0.63 0.68 1.49 1.31 Remuneration to Auditors (net of service tax) : (a) (b) Audit fees Fees for other services-certification. Rs. Crores 0.16 0.11 0.27 2008-09 Rs. Crores 0.16 0.12 0.28 Rs. Crores 31/03/2009 Rs. Crores
20.
21.
22.
23.
122
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONTD.)
24. Licensed Capacity, Installed Capacity (as certified by the Management) and actual production in respect of goods manufactured : Licensed Capacity (a) Fuel refinery (i) In million metric tonnes p.a. NA (NA) (ii) Production in kilolitres (KL) Light distillates Middle distillates Others (b) Aromatics (in MT) (i) Benzene * (ii) Toluene * (iii) Mixed Aromatic Solvent (c) MTBE in M.T. # (d) New Solvent Unit (i) Solvent (SBP 55-115) in M.T. (ii) Solvent (Food Grade Hexane) in M.T. (e) Poly Proplyene Feedstock in M.T. (f) Lubricants in M.T. (g) Lube Oil Base Stock (LOBS) in M.T. (h) Sulphur in M.T. (i) (j) Natural Rubber Modified Bitumen in M.T. Bitumen Emulsion (Single Shift) in M.T. 185,500 (185,500) 67,600 (67,600) 15,000 (15,000) NA (NA) NA (NA) NA (NA) NA (NA) NA (NA) NA (NA) NA (NA) NA (NA) 50,000 (50,000) 5,000 (5,000) 65,000 (65,000) 10,000 (10,000) 5,000 (5,000) 6,500 (6,500) 14,000 (14,000)
Installed Capacity 21.50 @ (19.50) 192,900 (192,900) 73,100 (73,100) 15,000 (15,000) 30,000 (30,000) 40,000 (40,000) 25,000 (25,000) 60,000 (60,000) 153,400 (153,400) 180,000 (180,000) 117,667 (117,667) 65,000 (65,000) 27,600 (27,600) 1,500 (1,500) 50,000 (15,000) 8,820 (8,820) 5,000 (5,000) 2,500 (2,500) 1,000 (1,000)
Actual Production 20.41 (19.95) 7,663,743 (6,951,676) 12,675,269 (12,247,355) 3,397,265 (3,621,216) 57,742 (79,653) 23,265 (28,375) 28,095 (26,009) 8,325 (2,861) 23,451 (23,220) 63,593 (61,924) 209,301 (151,788) 185,452 (155,084) 64,637 (77,697) 4,775 (1,398) 4,535 (3,884) 8,239 6,658 (6,644) 991 (1,512) -
(k) Diesel Additive (Single Shift) in M.T. (l) Propylene in M.T.
(m) Petroleum Hydrocarbon Solvent in M.T.
Poly Iso Butene in M.T. (o) Cable Jelly (Poly Isobutene Unit) in M.T. (p) Others (Poly Isobutene Unit) in M.T.@ The installed capacity of Kochi Refinery has been enhanced by 2 MMTPA to 9.5 MMTPA in July 2009. * For Kochi Refinery, the combined capacity of Benzene and Toluene is 99200 MT as against the individual capacity of 87200 MT and 50000 MT respectively, . # MTBE is used for own manufacture of Motor Spirit. Annual Report 2009-2010
123
SCHEDULE ‘X’ — (CONTD.)
25. Raw materials consumed : Quantity KL Crude Oil Base oil Additive Ethanol Reformate Others 41,675 (24,879) 22,540 (62,765) MT 20,375,545 (19,960,287) 13,023 (9,948) 23,069 10,746 (10,435) Value Rs. Crores 50,064.15 (53,493.67) 155.06 (118.62) 179.01 (125.06) 57.20 (165.77) 98.83 38.20 (33.81) 50,592.45 (53,936.93) 26. Finished goods purchased, sold and stocked : Petroleum Products Light Distillates Middle Distillates Others Aromatics (a) Benzene (b) Toluene Lubricants Others (Grocery) 6,299 (3,414) 2,526 (679) 29,065 (40,231) 14.32 (14.92) 7.88 (2.84) 170.00 (190.68) 0.08 (0.15) 4,631.30 (6,126.78) 2,287 (2,657) 13.88 (13.92) 62,199.97 (67,947.07) Opening Stock Quantity Value MT Rs. Crores 534,932 1,671.62 (592,548) 1,012,042 (985,902) 205,608 (225,774) (2,398.23) 2,434.27 (3,070.13) 333.13 (449.83) Purchases Quantity Value MT Rs. Crores 6,218,172 21,758.86 (5,543,678) 12,240,136 (10,898,893) 373,932 (205,225) (20,403.81) 39,555.59 (47,065.44) 871.64 (463.90)
124
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONTD.)
Sales Petroleum Products Light Distillates Middle Distillates Others Aromatics (a) Benzene (b) Toluene Lubricants Others (Grocery) 59,582 (76,750) 23,861 (26,526) 231,121 (211,183) 278.10 (377.66) 107.44 (137.12) 1,882.07 (1,825.54) 125,297.93 (129,175.69) 4,430 (6,299) 1,929 (2,526) 44,278 (29,065) 22.29 (14.32) 9.00 (7.88) 232.19 (170.00) 0.04 (0.08) 8,383.49 (4,631.30) Quantity MT 11,455,039 (10,436,558) 22,079,974 (20,859,169) 3,702,024 (3,791,011) Value Rs. Crores 41,946.30 (40,323.15) 72,035.23 (76,613.09) 9,048.79 (9,899.13) Closing Stock Quantity MT 622,423 (534,932) 1,507,978 (1,012,042) 186,752 (205,608) Value Rs. Crores 2,694.23 (1,671.62) 4,933.96 (2,434.27) 491.78 (333.13)
(a) Purchases exclude inter product transfers. (b) Purchases exclude crude oil purchased for resale (Rs. 947.69 crores). (c) Purchases of petroleum products exclude payments to third parties for processing fees Rs.25.22 crores (previous year Rs. 25.74 crores) but include own consumption and samples Rs.93.99 crores (previous year Rs. 104.99 crores). (d) Sales exclude subsidy/ Oil Marketing Companies GOI Special Bonds worth Rs. 5265.03 crores (previous year Rs. 16,216.38 crores) issued by Government of India and Sale of Crude Oil worth Rs. 936.71 crores (previous year - Rs. Nil) 27. Value of imports calculated on C.I.F. basis : (a) Raw Materials (including Crude Oil) (b) Capital goods (c) Components and spare parts (including packages, chemicals and catalysts) 28. Expenditure in foreign currency (on cash basis) : (a) (b) (c) (d) (e) Purchase of products Professional Consultancy Fees Royalty Interest Other matters Rs. Crores 5,620.63 4.29 12.35 63.25 931.20 Rs. Crores 36,397.79 322.15 153.69 2008-09 Rs. Crores 37,825.24 142.57 57.24 2008-09 Rs. Crores 5,867.24 12.39 6.21 185.59 1,164.59
Annual Report 2009-2010
125
SCHEDULE ‘X’ — (CONTD.)
29. Value of raw materials, stores/spare parts and components including packages, chemicals & catalysts consumed (on derived basis) : Imported Indigenous Total Rs. Crores % Rs. Crores % Rs. Crores Crude Oil 36,344.81 72.60 13,719.34 27.40 50,064.15 (39,184.20) (73.25) (14,309.47) (26.75) (53,493.67) Base Oil Additive Ethanol Reformate Others Stores/Spare parts and Components (including packages, chemicals & catalysts) 30. Earnings in foreign exchange : 0.03 (18.38) 12.21 (6.25) 98.83 7.87 (17.32) 73.48 (59.46) 0.02 (15.50) 6.82 (5.00) 100.00 20.60 (51.21) 19.45 (18.25) 155.03 (100.24) 166.80 (118.80) 57.20 (165.77) 30.33 (16.50) 304.23 (266.43) 99.98 (84.50) 93.18 (95.00) 100.00 (100.00) 79.40 (48.79) 80.55 (81.75) 155.06 (118.62) 179.01 (125.06) 57.20 (165.77) 98.83 38.20 (33.81) 377.71 (325.89)
2008-09 Rs. Crores Rs. Crores Exports on FOB basis # 10,301.35 6,213.64 Exports on CFR basis 353.78 # Includes receipt of Rs. 1636.56 crores (previous year Rs. 1,732.59 crores) in Indian currency out of the repatriable funds of foreign airline customers and Rs. 12.18 crores (previous year Rs. 8.44 crores) of INR exports to Nepal and Bhutan. 2008-09 Rs. Crores 2.29 0.52 6.75 1.14 2008-09 Rs. Crores 0.81 2.73 2.66 2008-09 Rs. Crores 22.56 7.68 2008-09 Rs. Crores 10,446.75
31. Expenditure on social overheads : (a) Expenditure on township [net of recovery Rs. 0.89 crores (previous year Rs. 0.96 crores)] (b) Medical facilities over and above statutory requirements (c) Social and cultural activities (d) Depreciation on capital assets 32. Profit and Loss Account includes expenditure on : (a) Entertainment (b) Public relations and publicity (c) Remuneration to staff employed for public relations work 33. Research and development (a) Revenue expenditure (b) Capital expenditure Rs. Crores 27.86 6.92 Rs. Crores 10,084.53 Rs. Crores 0.82 2.30 3.14 Rs. Crores 4.06 0.52 15.36 1.09
34. Value Added
126
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONTD.)
35. STATUTORY INFORMATION PURSUANT TO PART – IV OF SCHEDULE – VI TO THE COMPANIES ACT, 1956 BALANCE SHEET ABSTRACT AND COMPANIES GENERAL BUSINESS PROFILE I. Registration Details Registration No. Balance Sheet Date II. 8931/TA/III 0F 1952 – 53 3 1 Date 0 3 Month 2 0 1 0 Year Right Issue N I N I L L Private Placement State Code 1 1
Capital raised during the year (Rs. Crores) Public Issue N I N I L L Bonus Issue
III
Position of Mobilisation and Deployment of Funds (Rs. Crores ) Total Liabilities 5 3 2 7 2 . 3 6 Sources of Funds : (excluding deferred tax liability) Paid–up Capital 3 6 1 . 5 4 # Secured Loans 1 0 4 4 3 . 8 7
Total Assets 5 3 2 7 2 . 3 6 Reserves & Surplus 1 2 7 2 5 . 1 7 Unsecured Loans 1 1 7 5 1 . 3 3
#
Including Share Application Money Suspense Rs. 21,000 Application of Funds : Net Fixed Assets 1 6 1 8 7 . 1 0 * Net Current Assets 6 4 5 2 . 7 8 Accumulated losses N I L Investments 1 3 5 0 1 . 3 3 Misc. Expenditure N I L
*Includes Capital work–in–progress
IV.
Performance of Company (Rs. crores) Turnover 1 3 3 7 3 9 . 9 6 + – Profit/Loss Before Tax + 2 3 6 6 . 0 5 Earning per Share in Rs. 4 2 . 5 3 * Includes miscellaneous income + * Total Expenditure 1 3 1 3 7 3 . 9 1 + – Profit/Loss After Tax 1 5 3 7 . 6 2 Dividend rate % 1 4 0
Annual Report 2009-2010
127
SCHEDULE ‘X’ — (CONTD.)
V. Generic Names of Three Principal Products/Services of Company (as per monetary terms) Item Code No. (ITC Code) Product Description Item Code No. (ITC Code) Product Description Item Code No. (ITC Code) Product Description 2 7 1 0 PETROLEUM PRODUCTS 2 9 0 2 BENZENE 2 7 1 0 LUBRICANTS
Note : ITC code of products as per Indian Trade Classification based on harmonised commodity description and coding system by Ministry of Commerce, Directorate General of Commercial Intelligence & Statistics. 36. Figures of the previous year have been regrouped wherever necessary, to conform to current year presentation. Signature to Schedules `A’ to `X’ For and on behalf of the Board of Directors Sd/– ASHOK SINHA Chairman and Managing Director
Sd/– S. K. JOSHI Director (Finance) Place : Mumbai Dated : 27th May, 2010
Sd/– S. V. KULKARNI Company Secretary
128
Bharat Petroleum Corporation Limited
CASH FLOW STATEMENT
For the year ended 31st March Notes A Cash Flow from Operating Activities Net Profit Before tax and prior period items 2,421.48 1,017.57 2010 Rs. Crores 2009 Rs. Crores
Adjustments for : Depreciation Interest Foreign Exchange Fluctuations (Profit) / Loss on Sale of fixed assets (Profit) / Loss on Sale of investments Income from Investments Dividend Received Other Non-Cash items Note 4 Note 3 1,242.32 1,010.95 (274.04) (4.07) 221.07 (1,156.25) (108.27) 919.58 1,075.53 2,166.37 631.25 1.77 515.42 (692.68) (118.55) (31.33)
Operating Profit before Working Capital Changes
4,272.77
4,565.35
(Invested in)/Generated from : Trade Receivables Other Receivables Inventory Current Liabilities & Payables (1,309.58) (2,121.25) (5,210.95) 3,787.63 178.80 130.66 3,767.75 (2,018.72)
Cash generated from Operations
(581.38)
6,623.84
Direct Taxes paid
(878.68)
(395.56)
Cash flow before prior period items
(1,460.06)
6,228.28
Prior Period Items Non-Cash items
(55.43) 0.34
(13.46) (2.48)
Net Cash from Operating Activities
(1,515.15)
6,212.34
Annual Report 2009-2010
129
CASH FLOW STATEMENT — (CONTD.)
For the year ended 31st March Notes B Net Cash Flow from Investing Activities Purchase of fixed assets Sale of fixed assets (Investment)/Sale of Investment in Joint Venture Companies Sabarmati Gas Ltd. Premier Oil Cachar B.V. Bharat Stars Services Pvt. Ltd. Maharashtra Natural Gas Ltd. Delhi Aviation Fuel Facility Private Ltd. VI eTrans Pvt. Ltd. Bharat Renewable Energy Ltd. Matrix Bharat Marine Services Pte. Ltd. (Investment)/Sale of Investment in Subsidiaries Bharat Petro Resources Ltd. Advance for Investments Purchase of Investments Sale of Investments Income from Investment Dividend Received (200.00) (2,563.87) 6,358.22 1,261.12 108.27 1,538.43 (402.99) (18,523.13) 10,691.55 546.96 118.55 (9,908.75) (39.95) 0.10 (5.00) (22.48) # (1.60) 0.01 (1.00) (8.41) (3,369.81) 11.83 (2,332.33) 3.64 2010 Rs. Crores 2009 Rs. Crores
C
Net Cash Flow from Financing Activities Long term Borrowings Repayment of loans Interest paid Dividend Paid Corporate Dividend Tax Realised gains of exchange differences on foreign currency loans Net Cash Flow from Financing Activities 2,210.38 (286.43) (1,041.83) (253.15) (31.45) 54.57 652.09 675.37 1,469.00 (1,186.30) (2,182.13) (144.62) (9.16) (232.11) (2,285.32) (5,981.73)
D
Net Increase / (Decrease) in Cash and Cash equivalents (A+B+C) # Value Rs 37,000.00
130
Bharat Petroleum Corporation Limited
CASH FLOW STATEMENT — (CONTD.)
Cash and Cash equivalents as at 31st March Notes Cash in Hand Cash at Bank Cash in transit Cash Credit from scheduled banks CBLOs Unsecured loans from scheduled banks / ICDs / CPs 2009 Rs. Crores 124.49 315.39 1.67 (2,497.70) (150.00) (14,915.25) (17,121.40) Cash and Cash equivalents as at 31st March Cash in Hand Cash at Bank Cash in transit Cash Credit from scheduled banks CBLOs Unsecured loans from scheduled banks / ICDs / CPs Net change in Cash and Cash equivalents 2010 98.32 243.97 0.07 (6,714.15) (500.00) (9,574.24) (16,446.03) 675.37 2008 Rs. Crores 395.84 565.75 (930.12) (1,000.00) (10,171.14) (11,139.67) 2009 124.49 315.39 1.67 (2,497.70) (150.00) (14,915.25) (17,121.40) (5,981.73)
Explanatory notes to Cash Flow Statement 1. The Cash Flow Statement is prepared in accordance with the format prescribed by Securities and Exchange Board of India and as per Accounting Standard 3 as notified by the Central Government. 2. In Part-A of the Cash Flow Statement, figures in brackets indicate deductions made from the Net Profit for deriving the net cash flow from operating activities. In Part-B and Part-C, figures in brackets indicate cash outflows. 3. The net profit / loss arising due to conversion of current assets / current liabilities, receivable / payable in foreign currency is furnished under the head “Foreign Exchange Fluctuations”. 4. “Other Non-Cash items” include excess provisions written back, foreign exchange adjustments, diminution in value of investment, amortisation of Capital grant, Bad debts and materials written off and miscellaneous adjustments not affecting cash flow. 5. Figures of the previous year have been regrouped wherever necessary, to conform to current year’s presentation.
For and on behalf of the Board of Directors Sd/ASHOK SINHA Chairman and Managing Director
Place : Mumbai Dated : 27th May, 2010
As per our attached report of even date For and on behalf of For and on behalf of B. K. KHARE & CO. K. VARGHESE & CO. Chartered Accountants Chartered Accountants FR No: 105102W FR No: 004525S Sd/Sd/PADMINI KHARE KAICKER K. VARGHESE Partner Partner Membership No. 44784 Membership No. 20674
Annual Report 2009-2010
131
CONSOLIDATED FINANCIAL STATEMENTS OF BHARAT PETROLEUM CORPORATION LIMITED
132
Bharat Petroleum Corporation Limited
AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENTS
To The Board of Directors of Bharat Petroleum Corporation Limited 1. We have audited the attached Consolidated Balance Sheet of Bharat Petroleum Corporation Limited and its subsidiaries and its joint ventures as at March 31, 2010 and also the Consolidated Profit & Loss Account and Consolidated Cash Flow Statement for the year ended on that date annexed thereto. These consolidated financial statements are the responsibility of Bharat Petroleum Corporation Limited’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Auditing and Assurance Standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not audit the financial statements of the subsidiaries and joint ventures, whose financial statements reflect the Group’s share of total assets of Rs.14,822.98 crores as at March 31, 2010 and the Group’s share of total revenues of Rs.17,214.07 crores and net cash outflows amounting to Rs.530.07 crores for the year ended on that date as considered in the consolidated financial statements. These financial statements have been audited by other auditors whose reports have been furnished to us and our opinion, insofar as it relates to the amounts included in respect of these subsidiaries and joint ventures, is based solely on the report of the other auditors. We have relied on the unaudited financial statements of four joint ventures, which reflect the Group’s share of total assets of Rs.103.72 crores as at March 31, 2010 and the Group’s share of total revenues of Rs.86.96 crores and net cash inflows amounting to Rs.9.10 crores for the year ended on that date as considered in the consolidated financial statements. We have neither carried out an audit or a review in respect of these financial statements. We report that consolidated financial statements have been prepared by the management of Bharat Petroleum Corporation Limited in accordance with the requirements of Accounting Standard (AS) 21 – Consolidated Financial Statements and Accounting Standard (AS) 27- “Financial Reporting of Interests in Joint Ventures”, notified by the Central Government. Without qualifying our opinion, we draw attention to: a. Note No. 9 of Schedule X, in respect of impairment of assets wherein, being technical matters subject to uncertainty we have relied on the estimates and assumptions made by the Company in arriving at recoverable value of assets, based on desired margins. b. Recovery of overdue amount of Rs.278.54 crores from a party in whose case arbitration award has been passed and consent terms agreed between the parties have been filed with the Hon’ble Bombay High Court. We have relied on the Company’s representation that the dues are recoverable as per consent terms and hence no provision is considered necessary. Based on our audit and on the consideration of the separate audit reports of the other auditors on separate financial statements and on the other financial information of the components and to the best of our information and the explanations given to us, we are of the opinion that the attached consolidated financial statements, give a true and fair view in conformity with the accounting principles generally accepted in India: i) in case of the Consolidated Balance Sheet, of the consolidated state of affairs of Bharat Petroleum Corporation Limited, its subsidiaries, and its interests in joint ventures as at March 31, 2010; ii) in case of the Consolidated Profit and Loss Account, of the consolidated results of operations of Bharat Petroleum Corporation Limited, its subsidiaries, and its interests in joint ventures for the year ended on that date; and iii) in case of the Consolidated Cash Flow Statement, of the consolidated cash flows of Bharat Petroleum Corporation Limited, its subsidiaries, and its interests in joint ventures for the year ended on that date. For and on behalf of K.VARGHESE AND CO. FR No:004525S Sd/K.Varghese Partner Membership No: 20674
2.
3.
4.
5.
6.
7.
For and on behalf of B.K.KHARE AND CO. FR No: 105102W Sd/Padmini Khare Kaicker Partner Membership No: 44784 Mumbai Dated: May 27, 2010
Annual Report 2009-2010
133
CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2010
I. SOURCES OF FUNDS 1. Shareholders' funds : Share Capital Reserves and Surplus 2. Minority Interest : Share Capital Reserves and Surplus Loan funds : Secured Loans Unsecured Loans C SCHEDULE A B Rs. Crores 361.54 13,781.40 14,142.94 282.09 657.48 939.57 13,514.68 13,177.40 26,692.08 1,147.70 42,922.29 385.45 30,202.29 (13,452.36) 16,749.93 7,821.67 24,571.60 11,289.57 642.71 14,109.23 2,600.87 728.43 3,801.19 3,646.78 24,886.50 16,091.68 2,765.16 18,856.84 6,029.66 3.30 42,922.29 31/03/2009 Rs. Crores 361.54 12,949.68 13,311.22 282.09 619.36 901.45 6,681.34 17,557.82 24,239.16 1,525.65 39,977.48 385.45 26,354.57 (12,048.34) 14,306.23 6,172.65 20,478.88 15,698.54 701.46 7,870.59 1,505.85 1,348.56 3,102.56 2,978.24 16,805.80 12,275.06 1,820.89 14,095.95 2,709.85 3.30 39,977.48
3.
II.
Deferred tax liability (net) TOTAL APPLICATION OF FUNDS 1. Goodwill (on consolidation) 2. Fixed Assets : Gross block Less : Depreciation and amortisation Net block Capital work-in-progress 3. 4. 5. Investments Advance for Investments Current assets, loans and advances : Inventories Sundry debtors Cash and bank balances Other current assets Loans and advances Less : Current liabilities and provisions : Liabilities Provisions Net current assets
4.
D
E F FA G H I J K L M
Miscellaneous Expenditure to the extent not written off or adjusted TOTAL Statement of Significant Accounting Policies and Notes forming part of Accounts For and on behalf of the Board of Directors Sd/ASHOK SINHA Chairman and Managing Director
6.
Place : Mumbai Dated : 27th May, 2010
X As per our attached report of even date For and on behalf of For and on behalf of B. K. KHARE & CO. K. VARGHESE & CO. Chartered Accountants Chartered Accountants FR No: 105102W FR No: 004525S Sd/Sd/PADMINI KHARE KAICKER K. VARGHESE Partner Partner Membership No. 44784 Membership No. 20674
134
Bharat Petroleum Corporation Limited
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2010
Rs. Crores SCHEDULE INCOME Sale of products,crude oil & related income Less: Excise Duty Paid Miscellaneous income Increase/(Decrease) in Inventory TOTAL EXPENDITURE Purchase of products and crude oil for resale Raw materials consumed Packages consumed Excise Duty on Inventory differential Other Duties, taxes etc. and other charges applicable to products Transportation Consumption of stores, spares and materials Power and Fuel Employees' remuneration and other benefits Interest Other operating and administration expenses Depreciation and amortisation Miscellaneous Expenditure written off TOTAL Profit Prior period income/(expenses) net Profit before tax Provision for Taxation - Current Tax - Fringe Benefit Tax - Deferred Tax Asset (Net) - Short provision for Taxation in earlier years provided for Profit after tax Minority Interest Net Income of the Group Transfer from / (to) Debenture Redemption Reserve Balance brought forward Disposable Profit Appropriations: Proposed dividend Corporate Dividend Tax on proposed dividend Transfer to General Reserve Balance Carried to Balance Sheet Earnings per Share - Rs. - Basic - Diluted Statement of Significant Accounting Policies and Notes forming part of Accounts N 133,749.10 (9,932.38) 123,816.72 2,365.20 5,103.10 131,285.02 56,766.73 58,319.99 133.17 234.05 1,952.76 2,704.80 93.00 244.83 2,252.15 1,124.66 3,164.47 1,444.56 128,435.17 2,849.85 (77.72) 2,772.13 1,324.75 (301.27) 28.67 1,719.98 87.62 1,632.36 (700.00) 144.83 1,164.81 548.48 96.51 644.99 260.65 259.17 45.15 45.15 X 2008-09 Rs. Crores 147,336.82 (10,779.70) 136,557.12 1,435.78 (1,549.24) 136,443.66 60,119.92 61,895.03 107.51 (13.15) 1,318.50 2,471.96 116.12 73.64 1,981.30 2,404.32 3,560.35 1,261.71 3.38 135,300.59 1,143.07 (8.50) 1,134.57 674.06 14.40 (285.11) 7.09 724.13 90.37 633.76 (300.00) 262.74 686.87 295.40 54.96 350.36 191.68 144.83 17.53 17.53
O P
Q
R S T U V
W
For and on behalf of the Board of Directors Sd/ASHOK SINHA Chairman and Managing Director
Place : Mumbai Dated : 27th May, 2010
As per our attached report of even date For and on behalf of For and on behalf of B. K. KHARE & CO. K. VARGHESE & CO. Chartered Accountants Chartered Accountants FR No: 105102W FR No: 004525S Sd/Sd/PADMINI KHARE KAICKER K. VARGHESE Partner Partner Membership No. 44784 Membership No. 20674
Annual Report 2009-2010
135
SCHEDULE ‘A’ — SHARE CAPITAL (CONSOLIDATED)
Rs. Crores Authorised 450,000,000 equity shares of Rs.10 each Issued, subscribed and paid-up 361,542,124 (previous year 361,542,124) equity shares of Rs.10 each fully paid-up Total Share Application Money Suspense Account Total # Value Rs. 21,000 450.00 450.00 361.54 361.54 # 361.54 31/03/2009 Rs. Crores 450.00 450.00 361.54 361.54 # 361.54
SCHEDULE ‘B’ — RESERVES AND SURPLUS (CONSOLIDATED)
Rs. Crores 1. Capital Reserve As per last Balance Sheet Less : Amortisation of Capital Grant Capital Reserve on acquisition of subsidiaries Debenture Redemption Reserve As per last Balance Sheet Add: Transfer from Profit & Loss Account Foreign Currency Translation Reserve General Reserve As per last Balance Sheet Add : Transfer from Profit & Loss Account Surplus as per Profit & Loss Account Sub-total (1+2+3+4+5+6) Less: Minority Interest Share of interest in Joint Ventures General Reserve Surplus as per Profit & Loss Account Securities Premium Foreign Currency Translation Reserve Total 53.29 (0.09) 53.20 66.45 66.45 300.00 700.00 1,000.00 (142.55) 12,890.27 253.40 13,143.67 18.80 14,139.57 657.48 13,482.09 33.57 240.37 24.41 0.96 299.31 13,781.40 31/03/2009 Rs. Crores 53.38 (0.09) 53.29 66.45 66.45 300.00 300.00 72.48 12,708.72 181.55 12,890.27 (73.97) 13,308.52 619.36 12,689.16 26.04 218.80 14.43 1.25 260.52 12,949.68
2. 3.
4. 5.
6.
7.
136
Bharat Petroleum Corporation Limited
SCHEDULE ‘C’ — LOAN FUNDS (CONSOLIDATED)
Rs. Crores 31/03/2009 Rs. Crores
Secured Loans Debentures 10.35% Secured Non-Convertible debenture 2010 (refer note 3 (a) of Schedule 'X'-B) [Due for repayment within one year Rs. 1,000 crores (previous year NIL)] 7.73% Secured Non-Convertible debenture 2012 (refer note 3 (b) of Schedule 'X'-B) Banks Working Capital Loans/Cash Credit (Secured in favour of the participating banks ranking pari passu inter-alia by hypothecation of raw materials, finished goods, stock-in-process, book debts, stores, components and spares and all movables both present and future) Interest accrued and due Term Loan [Due for repayment within one year Rs. 1,200 crores (previous year NIL)] [Secured by pledge of 6.35% Oil Marketing Companies GOI Special Bonds 2024 of Rs. 3000 crores] Collateralised Borrowing and Lending Obligation (CBLO) through Clearing Corporation of India Ltd. [Secured by Oil Marketing Companies GOI Special Bonds of Rs. 1,400 crores (previous year Rs. 1,300 crores)] Share of interest in Joint Ventures Unsecured Loans Fixed deposits [Due for repayment within one year Rs. 0.24 crores (previous year Rs.3.01 crores)] Short Term (From Banks) Rupee Loans Foreign Currency Loans Syndicated Loans from various banks (repayable in foreign currency) [Due for repayment within one year Rs. Nil (previous year Rs. 606.07 crores)] Others Oil Industry Development Board [Due for repayment within one year Rs 134.61 crores (previous year Rs. 211.11 crores)] Share of interest in Joint Ventures Total
1,000.00
1,000.00
1,000.00
-
6,881.72
2,500.08
29.72 1,728.55
13.90 535.92
500.00
150.00
11,139.99 2,374.69 13,514.68 0.24
4,199.90 2,481.44 6,681.34 3.45
3,300.19 6,274.24 1,255.48
12,855.14 2,060.25 1,829.61
961.26
809.37
11,791.41 1,385.99 13,177.40 26,692.08
17,557.82 17,557.82 24,239.16
Annual Report 2009-2010
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138
Rs. Crores
SCHEDULE 'D' - FIXED ASSETS (CONSOLIDATED)
PARTICULARS
AS AT 01-04-2009
AS AT 31-03-2010
UPTO 31-03-2010
NET BLOCK AS AT AS AT 31-03-2010 31-03-2009
(2) 417.99 104.33 4,351.28 252.56 8,944.20 4,138.38 175.67 169.11 1,436.40 3,799.12 1,743.90 95.00 25,627.94 726.63 26,354.57 24,562.77 627.66 25,190.43 3) 3,182.53 743.18 3,925.71 1,163.72 99.13 1,262.85 77.50 0.50 78.00 98.55 0.16 98.71 28,732.97 1,469.32 30,202.29 25,627.94 726.63 26,354.57 11,840.08 208.26 12,048.34 10,670.65 168.17 10,838.82 1,401.32 64.08 1,465.40 1,229.98 40.14 1,270.12 353.06 325.87 28.08 8.16 24.36 4,144.02 2,045.41 123.08 3,799.12 797.21 49.56 353.06 121.77 14.36 103.88 2.56 1,537.72 348.73 69.56 2.28 8.16 23.58 61.02 0.35 61.37 60.55 0.05 60.60 416.01 4,144.02 895.40 63.92 13,180.38 271.98 13,452.36 11,840.08 208.26 12,048.34 56.20 63.25 327.90 58.47 878.56 944.38 16.26 26.62 1.07 1.79 5.16 2.75 26.21 0.69 1.97 2.78 473.12 165.79 4,674.02 308.28 9,796.55 5,082.07 189.96 192.95 17.15 570.42 123.80 3,917.08 2,040.57 77.30 99.14 2.27 92.80 12.99 447.11 261.87 11.82 13.71 0.27 1.80 2.61 14.08 4.47 1.74 2.03 19.15 661.42 134.18 4,350.11 2,297.97 87.38 110.82
GROSS BLOCK ADDITIONS DEDUCTIONS ON ACCOUNT OF RETIREMENT / RECLASSIFICATIONS (3) (4) (5) (9) (10) 473.12 146.64 4,012.60 174.10 5,446.44 2,784.10 102.58 82.13 1,121.71 1,150.01 59.16 15,552.59 1,197.34 16,749.93 13,787.86 518.37 14,306.23
DEPRECIATION AND AMORTISATION UPTO THIS YEAR DEDUCTIONS 31-03-2009 ON ACCOUNT OF RETIREMENT / RECLASSIFICATIONS (6) (7) (8)
(11) 417.99 87.18 3,780.86 128.76 5,027.12 2,097.81 98.37 69.97 1,087.67 946.69 45.44 13,787.86 518.37 14,306.23 13,892.12 459.50 14,351.62
Bharat Petroleum Corporation Limited
4) 5) 6)
1.
(1) LAND (a) Freehold (b) Leasehold 2. BUILDINGS 3. RAILWAY SIDINGS 4. PLANT and MACHINERY 5. TANKS and PIPELINES 6. FURNITURE and FITTINGS 7. VEHICLES 8. OTHER ASSETS (a) Dispensing Pumps (b) LPG Cylinders and Allied Equipment (c) Sundries 9. INTANGIBLE ASSETS (refer note 20 of Schedule 'X' B) TOTAL Share of interest in Joint Ventures GRAND TOTAL Total 2008-09 Share of interest in Joint Ventures Grand Total 2008-09
NOTES : 1) Land:a) Freehold land of the group includes Rs. 149.10 crores (previous year Rs. 99.07 crores) for which conveyance deed / registration / execution of title deeds / mutation are pending. b) Leasehold land of the group includes gross block Rs. Nil crores (previous year Rs. 1.51 crores) which though in possession, the lease deeds are yet to be registered. c) Freehold land of BPCL includes land costing Rs. 2.13 crores (previous year Rs. 2.13 crores) which is in the process of being surrendered to competent authority. 2) Buildings pertaining to BPCL include:a) Ownership flats of Rs.48.16 crores (previous year Rs. 47.92 crores) in proposed / existing co-operative societies. b) Residential flats and office complex which are in possession of BPCL and in respect of which the lease deeds are yet to be registered: - Gross Block Rs. 30.31 crores (previous year Rs. 30.87 crores), Net Block Rs. 27.80 crores (previous year Rs. 28.72 crores).
Land, Plant & Machinery, Tanks & Pipelines, Railway Sidings and Buildings jointly owned by BPCL in varying extent with other Oil Companies / Railways :- Gross Block Rs. 192.35 crores (previous year Rs. 192.41 crores), Cumulative Depreciation Rs. 86.18 crores (previous year Rs. 77.67 crores), Net Block Rs. 106.17 crores (previous year Rs. 114.74 crores). Buildings, Plant & Machinery and Sundries includes Rs.19.71 crores (previous year Rs. 19.71 crores) towards assets, ownership of which does not vest with the group. This amount has been amortised over a period of five years. The amount charged off as depreciation for the current year is Rs. 1.51 crores (previous year Rs. 1.92 crores). Gross Block of the group includes Rs.20.55 crores (previous year Rs. 6.62 crores) towards assets which are identified as held for disposal during the year in respect of which additional depreciation of Rs. 6.06 crores (previous year Rs. 4.13 crores) has been provided to recognise the expected loss on disposal. Interest in Joint Venture includes Rs. 1.49 crores (previous year Rs. 1.49 crores) towards land obtained under perpetual lease for which the lease agreement is not yet executed.
SCHEDULE ‘E’ — CAPITAL WORK-IN-PROGRESS (CONSOLIDATED)
31/03/2009 Rs. Crores Capital work-in-progress (at Cost) Work-in-progress Capital Advances (Unsecured, Considered good ) Capital Stores including lying with contractors Capital goods in transit Intangible assets pending amortisation (refer note 21 of Schedule 'X'-B) Construction period expenses Opening balance Add : Expenditure during the year Establishment charges Interest Depreciation Others Less: Allocated to assets capitalised during the year Closing balance Share of interest in Joint Ventures Total 37.26 76.78 27.41 207.71 (95.95) 111.76 4,139.42 7,821.67 24.77 14.02 0.69 9.18 72.14 (5.87) 66.27 3,672.43 6,172.65 66.26 23.48 3,168.91 151.75 213.26 33.95 2.62 1,989.73 125.08 299.64 13.54 5.96 Rs. Crores
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SCHEDULE ‘F’ — INVESTMENTS (CONSOLIDATED)
Rs. Crores CURRENT (Current Investments are valued at lower of cost or fair market value) IN GOVERNMENT SECURITIES NON TRADE - QUOTED @ Less : Provision for dimunition in value of investment LONG TERM IN GOVERNMENT SECURITIES NON TRADE - QUOTED @ IN SHARES, DEBENTURES AND BONDS TRADE - UNQUOTED Less : Provision for dimunition in value of investment IN SHARES, DEBENTURES AND BONDS TRADE - QUOTED NON TRADE - UNQUOTED IN ASSOCIATION OF PERSONS NON TRADE - UNQUOTED Capital Contribution in Petroleum India International Share in accumulated surplus of Petroleum India International Share of interest in Joint Ventures - UNQUOTED ** Total 31/03/2009 Rs. Crores
11,240.67 (1,117.00) 10,123.67
7,667.64 (288.03) 7,379.61
64.33 64.33 99.47 (25.08) 74.39 561.76 0.01 0.01
8,151.02 8,151.02 63.25 (25.08) 38.17 0.01 0.01
10.00 12.65 10,846.81 442.76 11,289.57
10.00 12.98 15,591.79 106.75 15,698.54
@ Refer note 8 of Schedule 'X'-B ** Includes investment made by Petronet LNG of 67,715,000 equity shares of Rs. 10 each in Adani Petronet (Dahej) Port Pvt. Ltd. under lock in for a period of 5 years from the date of commercial operation of the investee company.
SCHEDULE ‘FA’ — ADVANCE FOR INVESTMENTS (CONSOLIDATED)
Rs. Crores Share Application Money / Advance towards equity pending allotment Total 642.71 642.71 31/03/2009 Rs. Crores 701.46 701.46
140
Bharat Petroleum Corporation Limited
SCHEDULE ‘G’ — INVENTORIES (CONSOLIDATED)
Rs. Crores 264.08 31/03/2009 Rs. Crores 270.17
Stores and spares [Including in transit Rs.15.87 Crores (previous year Rs. 8.23 Crores)] Raw materials [Including in transit Rs.807.72 Crores (previous year Rs. 547.71 Crores)] Stock in process Finished products [Including in transit Rs.139.82 Crores (previous year Rs. 78.40 Crores)] Packages
2,895.54
1,730.39
838.40 9,559.72
572.36 5,218.11
8.11 13,565.85 543.38 14,109.23
6.01 7,797.04 73.55 7,870.59
Share of interest in Joint Ventures Total
SCHEDULE ‘H’ - SUNDRY DEBTORS (CONSOLIDATED)
(Unsecured, Considered good unless otherwise stated) 31/03/2009 Rs. Crores Debts outstanding for over six months : Considered good * Considered doubtful 181.55 250.32 431.87 Other debts Less : Provision for doubtful debts 2,335.41 2,767.28 (250.32) 2,516.96 Share of interest in Joint Ventures Total * Includes Rs. 25.81 crores (previous year Rs. 19.86 crores) which are secured. 83.91 2,600.87 198.60 183.97 382.57 1,216.69 1,599.26 (183.97) 1,415.29 90.56 1,505.85 Rs. Crores
Annual Report 2009-2010
141
SCHEDULE ‘I’ — CASH AND BANK BALANCES (CONSOLIDATED)
31/03/2009 Rs. Crores Cash on Hand [Includes drafts and cheques on hand of Rs. 82 crores (previous year Rs.108 crores)] With Scheduled banks : In current accounts In deposit accounts * Bank Balances outside India: In current accounts Remittances in transit 7.50 0.07 501.47 Share of interest in Joint Ventures Total 226.96 728.43 0.79 1.67 741.28 607.28 1,348.56 393.30 1.04 323.05 290.93 99.56 Rs. Crores 124.84
* Includes deposit of Rs. 0.80 crores (previous year Rs. 0.80 crores) that have been pledged / deposited with local authorities.
SCHEDULE ‘J’ — OTHER CURRENT ASSETS (CONSOLIDATED)
31/03/2009 Rs. Crores Interest accrued on investments Interest accrued on bank deposits Subsidy/Oil Marketing Companies GOI Special Bonds Receivable (refer note 2 of Schedule 'X'-B) Deferred premium (foreign exchange forward contract) Others (refer note 4 of Schedule 'X'-B) Share of interest in Joint Ventures Total 90.29 659.83 3,790.84 10.35 3,801.19 123.22 659.10 3,096.28 6.28 3,102.56 142.30 4.16 2,894.26 Rs. Crores 247.17 1.51 2,065.28
142
Bharat Petroleum Corporation Limited
SCHEDULE ‘K’ - LOANS AND ADVANCES (CONSOLIDATED)
(Unsecured, Considered good unless otherwise stated) Rs. Crores Loans (Secured) : To companies Considered doubtful Less
rovision for doubtful loans To staff Material given on Loan Less : Deposits Received Loans: To companies Considered good Considered doubtful Lessrovision for doubtful loans To others Interest accrued on loans Advances: Advances recoverable in cash, or in kind or for value to be received Advances considered doubtful Less : Provision for doubtful advances 31/03/2009 Rs. Crores0.10 (0.10) 656.68 0.46 (0.46) 656.68
0.10 (0.10) 660.15 0.46 (0.46) 660.15
1,435.74 2.81 (2.81) 45.00 22.55 1,503.29 271.58 4.51 (4.51) 271.58 29.10
829.77 2.81 (2.81) 40.75 16.88 887.40 354.69 4.99 (4.99) 354.69 29.91
Dues from Petroleum Planning & Analysis Cell - Government of India Claims : Considered good Considered doubtful Less : Provision for doubtful claims
355.76 65.07 (65.07) 355.76 161.53
365.05 58.71 (58.71) 365.05 200.76
Advance Income Tax ( Net of provision for taxation) Deposits : With Customs/Excise/Port Trust etc. Others
105.61 93.71 199.32 3,177.26 469.52 3,646.78
126.37 91.05 217.42 2,715.38 262.86 2,978.24
Share of interest in Joint Ventures Total
Annual Report 2009-2010
143
SCHEDULE ‘L’ — LIABILITIES (CONSOLIDATED)
Rs. Crores Current Liabilities : Sundry creditors Total outstanding dues of micro and small enterprises Total outstanding dues of creditors other than micro and small enterprises Deposits from Customers Deposits for Containers Unclaimed Dividend * Unclaimed Deposits * Unclaimed Interest on Deposits * Other liabilities Interest on loans (accrued but not due) Share of interest in Joint Ventures Total 31/03/2009 Rs. Crores
1.35 9,095.56 25.81 3,755.66 3.11 0.28 0.09 2,558.68 93.96 15,534.50 557.18 16,091.68
0.73 6,733.68 22.99 3,343.98 3.18 0.37 0.21 1,722.97 63.69 11,891.80 383.26 12,275.06
* No amount is due at the end of the year for credit to Investors Education and Protection Fund.
SCHEDULE ‘M’ — PROVISIONS (CONSOLIDATED)
Rs. Crores 822.28 548.48 91.52 1,294.05 2,756.33 8.83 2,765.16 31/03/2009 Rs. Crores 493.72 295.40 50.20 974.74 1,814.06 6.83 1,820.89
Provision for Taxation (Net of Tax paid) Proposed dividend * Corporate Dividend Tax on proposed dividend Provision for employee / retirement benefits Share of interest in Joint Ventures Total
* Includes Rs. 42.32 crores (previous year Rs. 42.32 crores) being the share of Minority Interest in the proposed dividend of Numaligarh Refinery Limited.
SCHEDULE ‘N’ — SALE OF PRODUCTS (CONSOLIDATED)
Rs. Crores 125,839.56 590.85 5,265.03 131,695.44 2,053.66 133,749.10 2008-09 Rs. Crores 129,246.01 566.21 16,216.38 146,028.60 1,308.22 147,336.82
Sales Subsidy on LPG (Domestic) & SKO (PDS) (As per the existing scheme of the Government Of India) Subsidy/Oil Marketing Companies GOI Special Bonds (refer note 2 of Schedule 'X'-B) Share of interest in Joint Ventures Total
144
Bharat Petroleum Corporation Limited
SCHEDULE ‘O’ — MISCELLANEOUS INCOME (CONSOLIDATED)
Rs. Crores 289.21 2008-09 Rs. Crores 188.42
Interest on bank deposits and others * Tax deducted at source - Rs.33.17 crores ( previous year Rs. 21.47 crores) Income from Investments Current Interest on Oil Marketing Companies GOI Special Bonds Interest - Others Dividend Long Term Interest Dividend Income from AOP (Petroleum India International) Profit on sale/write off of fixed assets (net) Write back of liabilities no longer required (net) Foreign Exchange fluctuations (net) Other income # Share of interest in Joint Ventures Total
316.24 448.55 10.76 0.04 775.59 4.07 556.87 444.38 2,070.12 295.08 2,365.20
422.96 9.73 2.01 89.87 0.84 1.24 526.65 17.58 680.73 1,413.38 22.40 1,435.78
* Includes interest received from Income tax authorities Rs.1.34 crores (previous year Rs. 10.85 crores) # Includes amortisation of capital grants Rs.0.09 Crores (previous year Rs. 0.09 Crores)
SCHEDULE ‘P’ — INCREASE/(DECREASE) IN INVENTORY (CONSOLIDATED)
Rs. Crores Value of closing stock of Finished goods Stock in process Less : Value of opening stock of Finished goods Stock in process Share of interest in Joint Ventures Total 9,559.72 838.40 10,398.12 5,218.12 572.36 5,790.48 4,607.64 495.46 5,103.10 2008-09 Rs. Crores 5,218.12 572.36 5,790.48 6,660.33 679.55 7,339.88 (1,549.40) 0.16 (1,549.24)
SCHEDULE ‘Q’ - RAW MATERIALS CONSUMED (CONSOLIDATED)
Opening Stock Add : Purchases Less: Closing Stock Share of interest in Joint Ventures Total Rs. Crores 1,730.39 58,277.04 (2,895.54) 57,111.89 1,208.10 58,319.99 2008-09 Rs. Crores 3,943.19 58,760.20 (1,730.39) 60,973.00 922.03 61,895.03
Annual Report 2009-2010
145
SCHEDULE ‘R’ — CONSUMPTION OF STORES, SPARES AND MATERIALS (CONSOLIDATED)
Stores, spares and materials Less : Charged to other revenue accounts Share of interest in Joint Ventures Total Rs. Crores 272.16 (180.07) 92.09 0.91 93.00 2008-09 Rs. Crores 278.05 (162.74) 115.31 0.81 116.12
SCHEDULE ‘S’ — POWER AND FUEL (CONSOLIDATED)
Rs. Crores 2,744.23 (2,507.08) 237.15 7.68 244.83 2008-09 Rs. Crores 2,996.59 (2,929.39) 67.20 6.44 73.64
Power and Fuel Less: Consumption of fuel out of own production Share of interest in Joint Ventures Total
SCHEDULE ‘T’ — EMPLOYEES’ REMUNERATION AND OTHER BENEFITS (CONSOLIDATED)
Salaries and wages (refer note 7 of Schedule 'X'-B) Contribution to provident fund Contribution to gratuity fund Contribution to other funds Welfare expenses Rs. Crores 1,686.56 106.21 101.47 18.08 333.34 2,245.66 6.49 2,252.15 2008-09 Rs. Crores 1,093.32 68.69 216.10 9.71 583.63 1,971.45 9.85 1,981.30
Share of interest in Joint Ventures Total
SCHEDULE ‘U’ — INTEREST (CONSOLIDATED)
On Debentures On Fixed Loans Others Share of interest in Joint Ventures Total Rs. Crores 142.37 148.58 802.95 1,093.90 30.76 1,124.66 2008-09 Rs. Crores 31.76 295.65 1,874.10 2,201.51 202.81 2,404.32
146
Bharat Petroleum Corporation Limited
SCHEDULE ‘V’ — OTHER OPERATING AND ADMINISTRATION EXPENSES (CONSOLIDATED)
Rs. Crores Repairs and maintenance : Machinery Building Others Insurance Rent Rates and taxes Charities and donations Remuneration to auditors Utilities Write off : Bad debts and Claims Others Provision for : Doubtful debts and advances Diminution in value of investments Loss on sale of current Investments Loss on sale / write off of Fixed Assets(net) Charges paid to other oil companies Travelling and conveyance Telephone, Telex, Cables, Postage etc. Foreign Exchange fluctuations (net) Other expenses Share of interest in Joint Ventures Total 405.17 26.98 111.03 543.18 33.04 231.47 33.79 5.42 0.48 134.21 0.01 6.01 72.24 828.98 221.07 0.39 108.51 110.49 25.12 756.19 3,110.60 53.87 3,164.47 2008-09 Rs. Crores 382.85 23.95 120.76 527.56 29.89 128.00 33.32 4.25 0.31 129.77 0.02 12.29 4.17 (33.88) 515.42 1.83 95.87 120.60 27.02 1,300.02 615.44 3,511.90 48.45 3,560.35
SCHEDULE ‘W’ - PRIOR PERIOD INCOME/(EXPENSES) (NET) (CONSOLIDATED)
Sale of products Miscellaneous Income Purchase of product for resale Raw Materials Consumed Duties taxes etc. and other product charges Transportation Consumption of stores spares and materials Rent, Rates & Taxes Employees' remuneration and other benefits Other operating and administration expenses Interest Interest income Depreciation Share of interest in Joint Ventures Total Rs. Crores 17.01 4.22 10.26 8.14 (2.71) 1.63 0.86 (2.68) (72.00) (9.49) (1.94) 0.09 (0.60) (47.21) (30.51) (77.72) 2008-09 Rs. Crores (12.93) 1.59 1.11 1.78 0.94 (6.19) 0.99 (1.38) (1.47) (6.61) 8.38 5.29 (8.50) (8.50)
Annual Report 2009-2010
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SCHEDULE ‘X’ — STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2010 (CONSOLIDATED)
A. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
1. BASIS OF CONSOLIDATION: The Consolidated Financial Statements relate to Bharat Petroleum Corporation Limited (“the Company” or “BPCL”), its subsidiary companies and the interest of the Company in joint ventures, in the form of jointly controlled entities. (a) Basis of accounting: (i) The Financial Statements of the subsidiary companies and the joint venture companies (JVCs) used in the preparation of the Consolidated Financial Statements are drawn upto the same reporting date as that of the Company i.e. 31st March, 2010 except for Matrix Bharat Marine Services Pte. Ltd., VB (Brazil) Petroleo Private Ltda and IBV (Brazil) Petroleo Ltda. whose accounts are drawn for the period ended 31st December 2009. (ii) The Consolidated Financial Statements have been prepared in accordance with the mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules 2006 and generally accepted accounting principles. (b) Principles of Consolidation: The Consolidated Financial Statements have been prepared on the following basis
i) The Financial Statements of the Company and its subsidiary companies (which are not in the nature of joint ventures) have been consolidated on a line–by-line basis by adding together the book values of like items of assets, liabilities, income and expenses. The intra group balances and intra group transactions and unrealised profits or losses resulting from intra group transactions are fully eliminated. (ii) The Consolidated Financial Statements include the interest of the Company in JVCs, which has been accounted for using the proportionate consolidation method of accounting and reporting whereby the Company’s share of each of the assets, liabilities, income and expenses of a jointly controlled entity is considered as separate line items in the Consolidated Financial Statements. (iii) The share of equity in the subsidiary company (NRL) as on the date of investment, being in excess of the cost of investment of the Company, the difference is recognised as “Capital Reserve on Acquisition of Subsidiaries” and shown under the head “Reserves and Surplus” in the Consolidated Financial Statements. The share of equity in the subsidiary company (BPRL International B.V.) as on the date of investment, being less than the cost of investment of BPRL, the difference is recognised as “Goodwill on Consolidation”. (iv) Minority interest in the Net Asset of consolidated subsidiaries consists of the amount of equity attributable to the minority shareholders as on the dates on which investments are made by the Company in the subsidiary companies and further movements in their share in the equity subsequent to the dates of investments as stated above. (c) The subsidiary companies and the JVCs which are included in consolidation and the percentage of ownership interest therein of the Company as on 31st March 2010 are as under : Percentage of ownership interest as on 31/03/2010 31/03/2009 Subsidiaries Numaligarh Refinery Limited (NRL) Bharat PetroResources Limited (BPRL) Bharat PetroResources JPDA Limited (Note i) BPRL International BV (Note i) BPRL Ventures BV (Note ii) BPRL Ventures Mozambique BV (Note ii) BPRL Ventures Indonesia BV (Note ii) 61.65 100.00 100.00 100.00 100.00 100.00 100.00 61.65 100.00 100.00 100.00 100.00 100.00 Country of IncorporationIndia India India Netherlands Netherlands Netherlands Netherlands
148
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
Percentage of ownership interest as on 31/03/2010 31/03/2009 Joint Venture Companies (JVC) Indraprastha Gas Limited Petronet CCK Limited Petronet LNG Limited Bharat Oman Refineries Limited (BORL) Central UP Gas Limited Maharashtra Natural Gas Limited Sabarmati Gas Limited Bharat Stars Services Private Limited Bharat Renewable Energy Limited Matrix Bharat Marine Services Pte Ltd. Delhi Aviation Fuel Facility Pvt. Ltd 22.50 49.00 12.50 50.00 22.50 22.50 25.00 50.00 33.33 50.00 37.00 22.50 49.00 12.50 50.00 22.50 22.50 25.00 50.00 33.33 50.00 – Country of Incorporation
India India India India India India India India India Singapore India
2.
Notes: (i) Bharat PetroResources JPDA Limited and BPRL International BV are 100% subsidiaries of BPRL. (ii) BPRL Ventures BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia BV are wholly owned subsidiaries of BPRL International BV. (iii) In addition to the above, BPRL holds 50% equity in joint venture company VB (Brazil) Petroleo Private Ltda. VB (Brazil) Petroleo Private Ltda. has a wholly owned subsidiary company IBV (Brazil) Petroleo Ltda. VB (Brazil) Petroleo Private Ltda. and IBV (Brazil) Petroleo Ltda are incorporated in Brazil. (iv) Proportionate consolidation in respect of Investment in Petronet India Limited, Petronet CI Limited and Petroleum Infrastructure Limited have not been considered in the preparation of Consolidated Financial Statements as the Management has provided for full diminution in the value of Investment. (v) The accounts of Central UP Gas Limited, Sabarmati Gas Limited, Bharat Renewable Energy Limited and Maharashtra Natural Gas Limited are yet to be audited and hence the unaudited accounts have been considered for the purpose of preparation of Consolidated Financial Statements. (vi) BPCL ownership in Central UP Gas Limited has been considered at 22.50% as per the Joint Venture Agreement. The actual percentage of Share Capital as on 31st March 2010 held by BPCL is marginally higher. The management is of the opinion that it is a temporary phase and the other joint venture partner will contribute their share of the equity capital as per the Joint Venture Agreement. This excess contribution by BPCL in the Equity Share Capital amounting to Rs. 0.34 crores (previous year Rs. 0.68 crores) is included in “Advances Recoverable in cash or in kind or for value to be received” - Schedule K. BPCL ownership in Maharashtra Natural Gas Limited has been considered at 22.50% as per the Joint Venture Agreement. The actual percentage of Share Capital as on 31st March 2010 held by BPCL is marginally higher. The management is of the opinion that it is a temporary phase and the other joint venture partner will contribute their share of the equity capital as per the Joint Venture Agreement. This excess contribution by BPCL in the Equity Share Capital amounting to Rs. 1.12 crores (previous year Rs. Nil) is included in “Advances Recoverable in cash or in kind or for value to be received” - Schedule K. BASIS FOR PREPARATION The financial statements are prepared under historical cost convention to comply in all material aspects with the mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules 2006 and the provisions of the Companies Act, 1956, adopting accrual system of accounting unless otherwise stated. Annual Report 2009-2010
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SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
3. USE OF ESTIMATES The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual amounts and estimates are recognised in the period in which they materialise. FIXED ASSETS 4.1 LAND Land acquired on lease where period of lease exceeds 99 years is treated as freehold. 4.2 FIXED ASSETS OTHER THAN LAND 4.2.1 Fixed Assets are stated at cost of acquisition (including incidental expenses) less accumulated depreciation. 4.2.2 Expenditure on assets, other than plant and machinery, LPG cylinders and pressure regulators, not exceeding Rs.1,000 per item is charged to revenue. 4.2.3 Machinery spares that are specific to a fixed asset are capitalised along with the fixed asset. Replacement of such spares is charged to revenue. 4.3 EXPENDITURE DURING CONSTRUCTION PERIOD Direct expenses including borrowing cost incurred during construction period on capital projects are capitalised. Indirect expenses of the project group which are allocated to projects costing Rs. 5 crores and above are also capitalised. Crop compensation expenses incurred in the process of laying pipelines are capitalised. 4.4 INTANGIBLE ASSETS 4.4.1 Cost of right of way that is perennial in nature are not amortised. 4.4.2 Expenditure incurred for creating/acquiring other intangible assets of Rs. 0.50 crores and above, from which future economic benefits will flow over a period of time, is amortised over the estimated useful life of the asset or five years, whichever is lower, from the time the intangible asset starts providing the economic benefit. 4.4.3 In other cases, the expenditure is charged to revenue in the year the expenditure is incurred. 4.4.4 Expenditure incurred on intangible assets is capitalised and amortised over a period of 5 years by Indraprastha Gas Limited, Central UP Gas Limited and over 3 years in case of Petronet LNG Limited. IMPAIRMENT OF ASSETS The values of fixed assets in respect of Cash Generating Units are reviewed by the management for impairment at each Balance Sheet date if events or circumstances indicate that the carrying values may not be recoverable. If the carrying value is more than the net selling price of the asset or present value, the difference is recognized as an impairment loss. BORROWING COSTS Borrowing costs attributable to acquisition, construction or production of qualifying asset are capitalised as part of the cost of that asset, till the month in which the asset is ready for use. Other borrowing costs are recognised as an expense in the period in which these are incurred. DEPRECIATION 7.1 Depreciation on fixed assets is provided under the straight line method, at rates prescribed under Schedule XIV to the Companies Act, 1956, except in following cases: 7.1.1 Premium paid for acquiring leasehold land for lease period not exceeding 99 years, is amortised over the period of lease. 7.1.2 LPG cylinders, pressure regulators and other fixed assets costing not more than Rs 5,000 each are depreciated @ 100 percent in the year of capitalisation. 7.1.3 Assets not owned by the Corporation are amortised over a period of five years from the year of capitalisation. 7.1.4 Computer equipments and peripherals, and mobile phones are depreciated over a period of four years. Furniture provided at the residence of management staff is depreciated over a period of seven years. Bharat Petroleum Corporation Limited
4.
5.
6.
7.
150
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
7.2 Indraprastha Gas Limited - Depreciation in case of the following assets has been provided using the straight line method over the useful life of the assets: (a) Mother compressors, Online compressors and Booster compressors – 7 years (b) Bunkhouses – 5 years (c) Signages - 10 years Bharat Stars Services Private Limited - Depreciation has been provided under written down value method and assets upto gross value of Rs. 10,000 are depreciated at 100%. Depreciation is provided at full year basis on additions upto 30th September and at 50% on assets after 30th September. Maharashtra Natural Gas Limited: Depreciation in case of the following assets has been provided using the straight line method over the useful life of the assets: (a) Mother compressors, Online compressors and Booster compressors – 7 years (b) Computer and Mobile Phones- 4 years Bharat Renewable Energy Limited - Depreciation has been provided under written down value method. Depreciation is charged on addition / deletion on pro-rata monthly basis including the month of addition / deletion.
7.3
7.4
7.5 7.6 8.
INVESTMENTS 8.1 Current investments are valued at lower of cost or fair market value. 8.2 Long-term investments are valued at cost. Provision for diminution is made to recognise a decline, other than of temporary nature, in the value of such investments. INVENTORY 9.1 Raw material and Intermediates are valued at cost or net realisable value whichever is lower. Cost is determined as follows: 9.1.1 Raw materials on weighted average cost. Purchased raw materials in transit are carried at cost. 9.1.2 Intermediate Stocks at raw material cost plus cost of conversion. 9.2 Finished products are valued at weighted average cost or at net realisable value, whichever is lower. In case of Indraprastha Gas Limited, Maharashtra Natural Gas Limited and Central UP Gas Limited the cost is determined on first-in-first-out basis. In case of Matrix Bharat Marine Services Pte. Ltd. inventories are valued at fair value less cost to sell. 9.3 Stores are valued at weighted average cost except in case of Maharashtra Natural Gas Limited and Petronet CCK Limited where the valuation is on the basis of first-in-first-out. Obsolete stores are valued at Re. Nil. Slow moving stores/ other materials identified as surplus and no longer usable are valued at Re. Nil. 9.4 Packages are valued at weighted average cost or at net realisable value, whichever is lower.
9.
10. REVENUE RECOGNITION 10.1 Sales are net of trade discounts and include, inter alia, excise / customs duties / claim from Petroleum Planning and Analysis Cell, Government of India and other elements allowed by the Government from time to time. 10.2 Claims/Surrenders including subsidy on LPG and SKO on/to Petroleum Planning and Analysis Cell, Government of India are booked on `in principle acceptance’ thereof on the basis of available instructions/ clarifications subject to final adjustments after necessary audit, as stipulated. Adjustments if any, on completion of audit are recognised. 10.3 Revenue on sale of PNG is recognised based on consumption by the customer and revenue on sale of CNG is recognised on sale of gas to customers from CNG stations. 10.4 Revenue from transportation of products is recognised on the basis of actual quantites transported and received at the receiving terminals. 10.5 Other claims are booked when there is a reasonable certainty of recovery. Claims are reviewed on a periodical basis and if recovery is uncertain, provision is made in the accounts. 10.6 Income from sale of scrap is accounted for on realisation. Annual Report 2009-2010
151
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
11. CLASSIFICATION OF INCOME/EXPENSES 11.1 Expenditure on Research, other than capital expenditure, is charged to revenue in the year the expenditure is incurred. 11.2 Income/expenditure upto Rs. 0.05 crores in each case pertaining to prior years is charged to the current year by the parent company Bharat Petroleum Corporation Limited and Numaligarh Refinery Limited. No such policy exists in other group companies. 11.3 Prepaid expenses upto Rs. 0.05 crores in each case, are charged to revenue as and when incurred by the parent company Bharat Petroleum Corporation Limited and Numaligarh Refinery Limited and upto Rs.10,000 by Bharat PetroResources Limited. No such policy exists in other group companies. 11.4 Deposits placed with Government agencies/ local authorities which are perennial in nature are charged to revenue in the year of payment except in case of Petronet LNG Limited, Petronet CCK Limited, Central UP Gas Limited, Sabarmati Gas Limited, Delhi Aviation Fuel Facility Private Limited and Bharat Stars Services Private Limited wherein no such policy exists. 12. EMPLOYEE BENEFITS 12.1 Contributions to Provident Fund for the year are recognised in the Profit & Loss Account. 12.2 The liability towards gratuity, leave encashment, post retirement benefits and other long term benefits are provided for in the accounts based on actuarial valuation as at the end of the year. To determine the present value of the defined benefit obligations and the current and past service costs, the Projected Unit Credit Method is used. Actuarial gains and losses are recognised in the Profit and Loss Account as income or expense. 13. DUTIES ON BONDED STOCKS 13.1 Customs duty on Raw materials/Finished goods lying in bond are provided for at the applicable rates except where liability to pay duty is transferred to consignee. 13.2 Excise duty on Finished stocks lying in bond is provided for, at the assessable value applicable at each of the locations at maximum rates based on end use. 14. FOREIGN CURRENCY & DERIVATIVE TRANSACTIONS 14.1 Transactions in foreign currency are accounted at the exchange rate prevailing on the date of transaction. 14.2 Monetary items denominated in foreign currency are converted at exchange rates prevailing on the date of Balance Sheet. 14.3 Foreign Exchange differences arising at the time of translation or settlement are recognised as income or expense in the Profit & Loss Account either under foreign exchange fluctuation or interest as the case may be. Premium/discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the Profit & Loss account. 14.4 All the subsidiaries and joint ventures incorporated outside India are considered to be “non integral foreign operations” in terms of Accounting Standard 11 “The Effects of Changes in Foreign Exchange Rates”. Consequently, the assets and liabilities, both monetary and non-monetary of such subsidiaries and joint ventures have been translated at the closing rates. Income and expense items of the non-integral foreign operation are translated at average exchange rate prevailing during the period. 14.5 Gains / losses arising on settlement of Derivative transactions entered into by the Corporation to manage the commodity price risk and exposures on account of fluctuations in interest rates and foreign exchange are recognised in the Profit and Loss Account. Provision for losses in respect of outstanding contracts as on balance sheet date is made based on mark to market valuations of such contracts. 15. GOVERNMENT GRANTS 15.1 In case of depreciable assets, the cost of the asset is shown at gross value and grant thereon is taken to Capital Reserve as deferred income, which is recognised in the Profit and Loss Account over the useful life of the asset. 15.2 Government grants of the nature of promoters’ contributions are credited to Capital Reserve and treated as part of Shareholders’ Funds.
152
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
16. PROVISIONS, CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS 16.1 Provision is recognised when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. 16.2 Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Corporation. 16.3 Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs. 0.05 crores by Bharat Petroleum Corporation Limited and Numaligarh Refinery Limited and Rs. 100,000 by Bharat PetroResources Limited, Central UP Gas Limited and Petronet LNG Limited. No such policy exists in other group companies. 16.4 Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand. 17. TAXES ON INCOME 17.1 Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961. 17.2 Deferred tax on account of timing difference between taxable and accounting income is provided using the tax rates and tax laws enacted or substantively enacted by the Balance Sheet date. 17.3 Deferred tax assets are not recognised unless, in the management judgement there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised. 18. OIL & GAS EXPLORATION ACTIVITIES 18.1 BPRL follows the “Full Cost Method” of accounting for its oil and natural gas exploration and production activities. Accordingly, all acquisition, exploration and development costs are treated as capital work-inprogress and are accumulated in a cost centre. The cost centre is not normally smaller than a country except where warranted by major difference in economic, fiscal or other factors in the country. When any well in a cost centre is ready to commence commercial production, these costs are capitalised from capital work-in-progress to the gross block of assets regardless of whether or not the results of specific costs are successful. Depletion is charged on all capitalised costs according to the unit of production method. 18.2 Surrender of field / disposal of participation interest If BPRL were to surrender a field, the accumulated acquisition, exploration and development costs in respect of such a field are deemed to be fully depreciated. If the remainder of the wells in the cost centre continue to produce oil or gas, gain or loss is recognised only when the last well in the cost centre ceases to produce and the entire cost centre is abandoned. Also, in the event BPRL assigns or farms out the whole or any part of its participating interest, the corresponding carrying value of the capitalised amount is adjusted against the consideration and the net amount is credited or, as the case may be, is charged to the Profit and Loss Account in the year in which BPRL’s participating interest is assigned or farmed out. 18.3 Depletion Depletion charge is calculated on the capitalised cost according to the unit of production method. The depreciation charge or the unit of production (UOP) charge for all costs within a cost centre is calculated by multiplying the UOP rate with the production for the period. The unit of production rate is arrived at by dividing the depreciation base of the cost centre by the Proved Oil and Gas Reserves. The depreciation base of a cost centre includes gross block of the cost centre, estimated future development expenditure and estimated site restoration expenditure and is reduced by the accumulated depreciation and accumulated impairment charge of the cost centre. The estimates of proved reserves used are based on the latest technical assessment available with BPRL. 19. MISCELLANEOUS EXPENDITURE Share-issue expenses of Bharat Oman Refineries Limited would be written-off in the year the company commences commercial production. Other preliminary / pre-incorporation expenses of JVCs / subsidiaries is charged to Profit and Loss Account. Annual Report 2009-2010
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SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
B. NOTES FORMING PART OF ACCOUNTS
1. In respect of sharing of under-recoveries on sensitive petroleum products viz. MS, HSD, LPG (Domestic) and SKO (PDS), as advised by the Ministry of Petroleum & Natural Gas, a part of the under-recovery suffered by BPCL during the year was compensated by ONGC and GAIL by offering discount on price of Crude Oil, SKO and LPG purchased from them. Accordingly, BPCL has accounted the discount as follows: a) Rs.2,927.27 crores (previous year Rs. 6,709.94 crores) discount on crude oil purchased from ONGC has been adjusted against raw material cost; and b) Rs. 702.57 crores (previous year Rs. 846.50 crores) discounts on SKO and LPG purchased from ONGC/GAIL has been adjusted against “Purchase of products and crude oil for resale”. In lieu of the under-recoveries on sale of petroleum products during 2009-10, based on the approval of Government of India, BPCL has accounted for the subsidy amounting to Rs.5,265.03 crores (previous year Rs.16,216.38 crores of Oil Marketing Companies GOI Special Bonds were accounted). Out of the above an amount of Rs.2,894.26 crores (previous year Oil Marketing Companies GOI Special Bonds amounting to Rs.2065.28 crores) receivable as on 31st March 2010 from Government of India is shown as Other Current Assets in Schedule J. Debentures: a. BPCL had allotted redeemable non-convertible 10.35% Debentures of face value of Rs.1,000 crores on 12th December 2008. These are secured by English mortgage, on first pari passu charge basis, by way of a Registered Debenture Trust Deed over the fixed assets of the Company, viz., a Flat at Mumbai and the Plant and Machinery in respect of Hydrocracker Unit and Aromatic Recovery Unit of the Mumbai Refinery. In order to maintain the security cover of 1.25 times, all future immovable properties including Land, Plant & Machinery and Fixtures & Fittings shall be a part of the Premises and Plant & Machinery which are mortgaged. These Debentures are redeemable at par on 11th June 2010. b. BPCL has allotted redeemable non-convertible 7.73% Debentures of face value of Rs.1,000 crores on 12th October 2009. These are secured by first legal mortgage in English form by way of a Registered Debenture Trust Deed over the fixed assets of the Company, viz., a Flat at Mumbai and the Plant and Machinery in respect of Refinery Modernisation Project Crude Distillation Unit / Vacuum Distillation Unit, Catalytic Cracking Unit, Fluid Catalytic Cracking Unit, Diesel Hydro Desulphurisation Unit and Naptha Hydro Desulphurisation Unit of the Mumbai Refinery. In order to maintain the security cover of 1.25 times, all future immovable properties including Land, Plant & Machinery and Fixtures & Fittings shall be a part of the Premises and Plant & Machinery which are mortgaged. These Debentures are redeemable at par on 9th October 2012. As per the scheme of Amalgamation of the erstwhile Kochi Refineries Limited with BPCL approved by the Government of India, 3,37,28,738 equity shares of BPCL were allotted (in lieu of the shares held by BPCL in the erstwhile Kochi Refineries Limited) to a trust for the benefit of BPCL in the financial year 2006-07. Accordingly the cost of the original investment of Rs.659.10 crores is reflected as ‘Others’ in Schedule ‘J ’ - Other Current Assets. The income distributed by the trust during the year 2009-10 amounting to Rs. 23.61 crores (previous year Rs. 13.49 crores) has been included in ‘Other income’ in Schedule ‘O’ – Miscellaneous Income. One shareholder of erstwhile KRL has challenged the amalgamation before Delhi High Court, which is pending adjudication. Provision for taxation in the Profit and Loss Account includes Rs.1.86 crores (previous year Rs. 1.68 crores) towards wealth tax. BPCL and Numaligarh Refinery Limited have numerous transactions with other oil companies, which are reconciled on an ongoing basis and are subject to confirmation. Adjustments, if any, arising therefrom are not likely to be material. BPCL has made a provision of Rs.463 crores (previous year Rs.114 crores for management staff) towards balance liability on revision in emoluments of management staff and pending pay-revision of all non-management staff on an estimated basis. Further consequential increase in actuarial valuations has been effected. BPCL has reclassified the entire portfolio of long term investments in 6.35% Oil Marketing Companies GOI Special Bonds 2024 – Rs.3,099.96 crores and 6.90% Oil Marketing Companies GOI Special Bonds 2026 – Rs.4,986.71 crores to current investments during the year, considering the future funds requirement. Accordingly an amount of Rs. 1,086.50 crores has been provided for the diminution in value of these investments based on mark to market as on 31.3.2010.
2.
3.
4.
5. 6. 7.
8.
154
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
9. Impairment of Assets Determination as to whether and how much an asset is impaired involve Management estimates of highly uncertain matters such as international prices of crude oil and products, duty structure and Government policies. It is assumed that suitable mechanism would be in place, in line with earlier/ current year(s), to provide compensation towards under-recoveries of margin, if any, on account of sale of sensitive petroleum products in subsequent years. Hence, future cash flows have been worked out based on the desired margins for deciding on impairment of related Cash Generating Units. No impairment is therefore considered as at 31st March 2010.
10. Related Party Disclosures as per Accounting Standard 18 i) Key Management Personnel (Whole Time Directors) M/s. Ashok Sinha (Chairman & Managing Director), S. Mohan (Director HR) , S. Radhakrishnan (Director Marketing), S. K. Joshi (Director Finance), R. K. Singh (Director Refineries)
ii) Remuneration to key management personnel: Rs. 1.49 crores (previous year Rs. 1.31 crores). 11. Earnings per share 2009-10 Profit after Tax Weighted average shares outstanding during the year Basic earnings per share Diluted earnings per share Rs. Crores Crore nos. Rs. Rs. 1,632.36 36.15 45.15 45.15 2008-09 633.76 36.15 17.53 17.53
12. Deferred Tax Liability As per the requirement of the Accounting Standard 22 - “Accounting for Taxes on Income” the net deferred tax liability credited to Profit during the year is Rs. 301.27 crores excluding Rs.76.69 crores credited as part of earlier year adjustment.(previous year deferred tax asset debited Rs. 285.11 crores). The year end position of Deferred Tax Liability and Assets is given below : Rs. Crores DEFERRED TAX LIABILITY Depreciation Share of Interest in Joint Ventures Total DEFERRED TAX ASSETS Disallowances u/s 43B of Income Tax Act,1961 Provisions for doubtful debts, claims, employee benefits, etc. Share of Interest in Joint Ventures Total Net Deferred Tax Liability 2,228.32 49.74 2,278.06 611.73 517.92 0.71 1,130.36 1,147.70 31/03/2009 Rs. Crores 2,194.59 40.91 2,235.50 451.63 257.73 0.49 709.85 1,525.65
In the absence of virtual certainty regarding sufficient future profits required for taking credit, deferred tax asset has not been recognised in respect of unabsorbed depreciation / business losses of Bharat PetroResources Limited and Petronet CCK Limited.
Annual Report 2009-2010
155
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
13. In compliance with Accounting Standard - 17, "Segment Reporting" issued by the Institute of Chartered Accountants of India, the segment information is as under: I The group is engaged in the following business segments: a) Downstream petroleum i.e. Refining and Marketing of Petroleum Products b) Exploration and Production of Hydrocarbons Segments have been identified taking into account the nature of activities and the nature of risks and returns. II There are no geographical segments. III Segment-wise details are as follows: (Rs. Crores) Year ended 31st March 2010 Year ended 31st March 2009 Downstream E&P Total Downstream E&P Total Petroleum Petroleum Revenue External Revenue # 125,116.22 0.90 125,117.12 137,277.83 - 137,277.83 Inter Segment Revenue Total Revenue 125,116.22 0.90 125,117.12 137,277.83 - 137,277.83 Result Segment Results 3,955.38 (73.34) 3,882.04 3,326.67 (21.31) 3,305.36 Unallocated Corporate Expenses Operating profit 3,955.38 (73.34) 3,882.04 3,326.67 (21.31) 3,305.36 Add: Interest / Dividend Income 1,064.80 715.07 Less: Interest Expenditure 1,124.66 2,404.32 Loss on sale of Current Investments 221.07 515.42 Diminution in value of Investments 828.98 (33.88) Income Tax (including Deferred Tax) 1,052.15 410.44 Profit after Tax 1,719.98 724.13 Other Information Segment Assets 48,268.40 1,397.23 49,665.63 35,795.54 1,014.73 36,810.27 Unallocated Corporate Assets 12,113.50 17,263.16 Total Assets 61,779.13 54,073.43 Segment Liabilities 15,999.62 92.06 16,091.68 12,238.14 36.92 12,275.06 Unallocated Corporate Liabilities 30,604.94 27,585.70 Total Liabilities 46,696.62 39,860.76 Capital Expenditure 5,195.95 378.78 5,574.73 4,556.28 437.87 4,994.15 Depreciation/ Amortisation 1,444.18 0.38 1,444.56 1,261.47 0.24 1,261.71 Non-cash expenses other than 1.37 2.01 3.38 depreciation # Segment Revenue comprises of Turnover (net of excise duties), Subsidy received from the Government of India and other income (excluding dividend, interest income and investment income). 14. Miscellaneous Expenditure (to the extent not written-off) Pre-incorporation / Share Issue Expenses Less: Written off during the year Share of Interest in Joint Ventures Total Rs. Crores 3.30 3.30 31/03/2009 Rs. Crores 2.02 2.02 3.30 3.30
156
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
15. As indicated in Significant Accounting Policies, certain accounting policies of JVCs towards Depreciation, Inventory Valuation, Employee Benefits and Classification of Income/ Expenses are not in line with that followed by BPCL. However, considering the nature of transactions and amounts involved, the impact is not expected to be material had the accounting policy of BPCL been followed. 16. Capital Reserve on acqusition of subsidiaries includes Rs. 61.65 crores being the share of the group out of grant of Rs. 100 crores received by Numaligarh Refinery Limited from the Government of India during the project period. 17. In respect of certain Subsidiaries and JVCs, the following notes to accounts are disclosed: Numaligarh Refinery Limited a) Pending finalization of the Crude Oil Sales Agreement (COSA) purchases of Crude Oil from Oil India Limited (OIL) and Oil and Natural Gas Corporation Limited (ONGC) have been accounted for as per the Benchmark price of crude oil in the financial year 2009-10 in line with FY 2008-09. Further, as per directive of the Ministry of Petroleum and Natural Gas (MOP&NG), an amount of Rs.259.94 crores (previous year Rs.282.99 crores) has been provided and charged to the cost of crude towards Sales Tax and Pipeline Transportation Charges payable to OIL/ONGC for the financial year 2009-10. To augment crude availability of the four refineries in Assam, Ravva crude is brought in to IOCL Bongaigaon Refinery and the transportation cost and other incidentals thereof is to be shared by all four refineries as per the directive of MOP&NG. NRL’s share of the transportation cost and other incidentals thereof has been included in the crude price and is also considered for valuation of the closing stock. Transportation cost for the Haldia-Barauni Crude Pipeline is being provided as per tariff rates prescribed by Ministry vide letter dated 28th May 2008. b) An amount of Rs. 194.53 crores towards Assam Entry Tax for the period November 2006 to May 2008, though provided in the books of NRL, is disputed against which NRL has filed a Writ Petition (Civil) before the Hon’ble Supreme Court of India. Based on the Writ Petition, the Court had directed the Assessing Authority to assess the liability for the aforesaid period. Assessing Authority had assessed the liability at Rs.194.53 crores. The Court vide interim Order dated 04.02.2010 has directed NRL to pay under protest a sum of Rs.50 crores. Accordingly NRL has deposited Rs.50 crores under protest. c) An amount of Rs.111.20 crores (previous year Rs. 143.10 crores) has been charged to Profit & Loss Account towards under-recovery of CST on petroleum products. d) Provision towards Pay revision of Management Staff amounting to Rs.4.71 crores (previous year Rs.17.53 crores) is made in accordance with the Pay Revision Committee’s recommendation as per guidelines received from Department of Public Enterprises. e) Pending finalisation of Long Term Settlement in respect of revision of wages of workmen, provision has been made to the extent of Rs.20.99 crores (previous year Rs.3.18 crores) on estimated basis. f) The pension scheme of the company is under finalisation in line with the guideline issued by Department of Public Enterprises vide Office Memorandums dtd.26.11.2008 and 02.04.2009. Pending finalisation of the scheme a sum of Rs.5.73 crores (previous year Rs.NIL) has been charged to Profit and Loss account. Bharat PetroResources Limited g) BPRL along-with an Indian partner (equal share) has acquired IBV Brazil Petroleo Ltda erstwhile Encana Brazil Petroleo Ltda, a subsidiary of Encana Canada holding participating interest in 4 exploratory concessions in Brazil in the previous financial year. Funding for this acquisition (BPRL’s share) has been done partly by BPRL through Equity and partly through loan taken by BPRL Ventures B.V. (100% stepdown subsidiary of BPRL). This loan is obtained from Standard Chartered Bank, London. The shares (Quotas) of Joint Venture (VB Brazil Petroleo Ltda.) and BPRL Ventures B.V. (100% subsidiary of BPRL International B.V.) have been pledged as collateral for obtaining loan from Standard Chartered Bank. h) The shareholders of VB (Brazil) Petroleo Ltda acknowledge that if at any time after the Purchase Agreement effective date there is a commercial discovery then the shareholders shall, in ten business days after such commercial discovery, pay to the vendors US$ 10 million. Unless and until a commercial discovery occurs, the shareholders have no obligation to make any payment. On September 30, 2008 it was announced a pre-salt discovery at the Wahoo prospect offshore Brazil in the Campos Basin. The 1-APL-1-ESS well is located on block BM-C-30 in approximately 4,650 feet of water approximately 25 miles southeast and syncline separated from Petrobras’ previously announced Annual Report 2009-2010
157
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
pre-salt discoveries at the giant Jubarte field. Preliminary results at Wahoo, based on wireline logs, indicate at least 195 feet of net pay with similar characteristics to the nearby Jubarte 1-ESS-103A well, which is Brazil’s first producing pre-salt field having recently achieved reported initial rates of approximately 18,000 barrels per day of light oil. The discovery notification was sent to the Brazilian National Petroleum Agency (ANP). i) The financial statements of BPRL International BV are drawn for the 15 months ended 31st March , 2010. j) In case of blocks located outside India, the reporting period is generally different. Also, in case of blocks located in India, the financial statements of the jointly controlled assets for the period ending 31st March 2010 are not available as at the date of finalisation of accounts. Therefore, unaudited financial/ billing statements for the year ended 31st December 2009 are being used for the purpose of reporting share of interest in jointly controlled assets for blocks in India and outside India. Bharat Oman Refineries Limited k) Interest earned, on mobilization advances given to contractors for capital projects, aggregating to Rs. 7.3 crores (previous year Rs. 6.8 crores) has been adjusted against the value of the projects under “Capital work-in-progress”. l) As per the terms of the Memorandum of Understanding entered between the Company and Government of Madhya Pradesh, in lieu of cost of government land that has been transferred to the Company, the Company has to allot equity shares worth Rs.269,000,000 to Government of Madhya Pradesh, at a price not more than the price at which the shares have been allotted to the promoters. As the shares have not been allotted to the Government of Madhya Pradesh as at 31st March 2010, this amount has been disclosed as “Share Application Money”. m) Based on the opinion of the Expert Advisory Committee of the Institute of Chartered Accountants of India, taken by BORL during the year, in respect of accounting of foreign exchange variation, the company has drawn up “Profit and Loss Account” for the year even though BORL has not commenced commercial operations, at its refinery at Bina, Madhya Pradesh. Accordingly, a. Expenses and Incomes not relating to the project, which hitherto were accounted for as “Pre-operative expenditure pending capitalization”, have now been transferred to “Profit and Loss Account” as prior period expenses/incomes. b. Expenses and Incomes relating to the project are classified as “Pre-operative expenditure pending capitalization”. Petronet LNG Limited n) Petronet LNG Limited has an option to claim deduction under Section 80IA of the Income Tax Act, 1961 in respect of Power Generation and Port Undertaking and also under Section 80IB in respect of its Regasification Undertaking. However, provision for income-tax has been made without considering the aforesaid deductions. The company will review the option at the time of filing its income tax return. o) Customs duty on import of Project material / equipment has been assessed provisionally (current and previous years) and additional liability, if any, on this account will be prepared on final assessment. Central UP Gas Limited p) CUGL had been sanctioned term loan facility of Rs. 65 crores against the charge on immovable and movable assets, both present and future, of the Company by commercial banks, though during the year the Company has not availed or utilized the facility. Bharat Renewable Energy Limited q) BREL has entered into a 15 year buyback agreement with farmers / Gram Panchayats for purchase of Jatropha seeds, to be planted in 28856 acres (approx.) (previous year 945.21 acres) of wasteland under ‘Jeevan Jyoti Paryojana Scheme’ of UP State Government. The Jatropha Seeds purchase price will be at the Minimum Support Price declared by the Government of UP or at 20% value of the retail price of Biodiesel, whichever is higher. Out of the above, plantation has been done in 750 acres during the year. Matrix Bharat Marine Services Pte. Ltd. r) Matrix Bharat Marine Services Pte. Ltd. was incorporated on 20th May 2008. The company follows the calendar year as its accounting period and hence accounts are prepared for the period ending 31st December 2009.
158
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
Delhi Aviation Fuel Facility Private Limited s) Delhi Aviation Fuel Facility Private Limited was incorporated on 11th August, 2009 and the first accounts have been prepared for the period ended March 31, 2010. t) Delhi Aviation Fuel Facility Private Limited is in the process of setting up a project “Aviation Fuel Facility” at Indira Gandhi International Airport, New Delhi. 18. The following Oil and Gas blocks are held by Bharat PetroResources Limited / its subsidiaries and joint ventures: Name Company Country Participating Interest of the Group NELP – IV 31.3.2010 31.3.2009 KG/DWN/2002/1 BPRL India 10.00% 10.00% MN/DWN/2002/1 BPRL India 10.00% 10.00% CY/ONN/2002/2 BPRL India 40.00% 40.00% NELP – VI KG/DWN/2004/2 BPRL India 10.00% 10.00% KG/DWN/2004/5 BPRL India 10.00% 10.00% CY/ONN/2004/1 BPRL India 20.00% 20.00% CY/ONN/2004/2 BPRL India 20.00% 20.00% RJ/ONN/2004/1 BPRL India 11.11% (a) 11.11% NELP – VII RJ/ONN/2005/1 BPRL India 25.00% (b) 25.00% Blocks outside India Block No 56 BPRL Oman 12.50% (c) 12.50% WA/388/P BPRL Australia 14.00% 14.00% AC/P32 BPRL Australia 20.00% 20.00% 48/1b & 2c – North Sea BPRL U.K. 25.00% 25.00% JPDA 06-103 BPR JPDA Australia / Timor 20.00% (d) 25.00% Sergipe and Alagoas SEAL-M-349 IBV (Brazil) Petroleo Ltda. Brazil 40.00% 40.00% SEAL-M-426 IBV (Brazil) Petroleo Ltda. Brazil 40.00% 40.00% SEAL-M-497 IBV (Brazil) Petroleo Ltda. Brazil 40.00% 40.00% SEAL-M-569 IBV (Brazil) Petroleo Ltda. Brazil 40.00% 40.00% Espirito Santo ES-24-588 IBV (Brazil) Petroleo Ltda. Brazil 30.00% 30.00% ES-24-661 IBV (Brazil) Petroleo Ltda. Brazil 30.00% 30.00% ES-24-663 IBV (Brazil) Petroleo Ltda. Brazil 30.00% 30.00% Campos C-M-30-101 IBV (Brazil) Petroleo Ltda. Brazil 25.00% 25.00% Portiguar POT-16-663 IBV (Brazil) Petroleo Ltda. Brazil 20.00% 20.00% POT-16-760 IBV (Brazil) Petroleo Ltda. Brazil 20.00% 20.00% Mozambique Rovuma Basin BPRL Ventures Mozambique B.V. Mozambique 10.00% 10.00% Nunukan PSC, Tarakan Basin BPRL Ventures Indonesia B.V. Indonesia 12.50% (a) The deed of assignment for Oil and Gas Block RJ/ONN/2004/1 has not been executed in the name of BPRL for which application is pending with Management Committee and Directorate General of Hydrocarbons (DGH). (b) The Board of Directors of BPRL at its meeting held on 19th January, 2010 has resolved to increase its Participating Interest in RJ-ONN-2005/1 Block under NELP VII from existing 25% upto 37.5%. Based on Operating Committee resolution dated 24th March, 2010 it was agreed that BPRL, Hindustan Oil Exploration Company Limited and IMC Limited will share equally the participating interest of defaulting party in accordance with the provisions of PSC and JOA. Accordingly, Participating Interest of BPRL would be 33.33% subject to approval from Directorate General of Hydrocarbons and Ministry of Petroleum & Natural Gas. Annual Report 2009-2010
159
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
(c) As per Board resolution of BPRL, expenditure incurred in Block Oman 56 has been charged off / written off during the year. Any expenditure incurred in future for completing the formalities relating to relinquishment of block will also be charged off as and when incurred. (d) During the year, BPR JPDA has farmed out 5% Participating Interest in the Block to Pan Pacific Petroleum (PPP). The Board of Directors of BPR JPDA at its meeting held on 2nd September, 2009 have approved the farm-out. Farm out agreement dated 25.09.09 has been signed. In accordance with the agreement, BPR JPDA has received total Farm-out consideration of USD 2,750,000, which includes USD 950,000 as reimbursement of past cost incurred up to 31st July, 2009 and USD 1,800,000 pertaining to Carry (3.33%) accordingly CWIP has been reduced. Net Amount of Capital Work in Progress as on 31st March, 2010 is Rs. 79.69 crores. 19. Interests in Joint Ventures The Group’s interest in Joint Ventures, accounted for using proportionate consolidation are: (Rs. in Crores) As at 31/03/2010 I ASSETS 1. Fixed Assets - Gross Block - Less: Depreciation - Net Block 2. 3. 4. Capital work-in-progress Investments Current Assets, Loans and Advances a) Inventories b) Sundry Debtors c) Cash and Bank Balances d) Other Current Assets e) Loans & Advances 5. II 1. 2. Miscellaneous Expenditure to the extent not written off or adjusted Shareholders Funds – Reserves & Surplus Loan Fund a) Secured Funds b) Unsecured Funds 3. 4. Deferred Tax – Liability Current Liabilities & Provisions a) Liabilities b) Provisions 557.18 8.83 383.26 6.83 2,374.69 1,385.99 49.03 2,481.44 40.42 LIABILITIES 299.31 260.52 543.38 83.91 226.96 10.35 469.52 3.30 73.55 90.56 607.28 6.28 262.86 3.30 1,469.32 271.98 1,197.34 4,139.42 442.76 726.63 208.26 518.37 3,672.43 106.75 As at 31/03/2009
160
Bharat Petroleum Corporation Limited
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
(Rs. in Crores) 2009-10 III INCOME 1. Sales and related income Excise Duty 2. 3. IV 1. 2. 3. 4. 5. 6. 7. 8. 9. Miscellaneous Income Increase/(Decrease) in Inventory Purchase of Products for Resale Raw Material Consumed Consumption of stores, spares and materials Power and Fuel Employees’ remuneration and other benefits Interest Other operating and administration expenses Depreciation / Amortisation Miscellaneous Expenditure Written off 2,053.66 (34.86) 2,018.80 295.08 495.46 317.37 1,208.10 0.91 7.68 6.49 30.76 53.87 48.22 (30.51) 1,166.45 46.50 8.58 19.35 1,092.02 As at 31/03/2010 V OTHER MATTERS 1. 2. Contingent Liabilities Capital Commitments 433.99 1,664.94 100.10 2,580.94 1,308.22 (28.81) 1,279.41 22.40 0.16 57.57 922.03 0.81 6.44 9.85 202.81 48.45 37.98 1.37 (14.66) 54.23 0.25 0.66 (69.80) (Rs. in Crores) As at 31/03/2009 2008-09
EXPENSES
10. Prior Period Income/ (Expenses) (Net) 11. Profit before Taxation 12 Provision for Taxation a) Current Tax b) Fringe Benefit Tax c) Deferred Tax (Net) d) Short / (Excess) provision for Taxation in earlier years provided for 13. Profit after Taxation
Annual Report 2009-2010
161
162
Rs. Crores USEFUL LIFE (NO. OF MONTHS) (2) Perennial 36 48 60 60 60 95.00 10.78 105.78 91.06 10.62 101.68 4.10 – 0.16 – 3.94 – 95.00 10.78 105.78 257.12 – 362.90 229.04 – 239.82 1.25 50.81 36.64 0.84 37.48 28.08 – 123.09 49.56 38.05 3.14 – 41.19 24.38 1.50 – – 1.50 1.27 0.23 7.78 14.36 8.22 22.58 12.92 0.41 13.33 23.78 16.65 – 40.43 12.14 5.83 1.18 – – 1.18 0.25 0.30 11.86 – – 11.86 11.52 0.22 18.63 8.29 – 26.92 – – – – – – – – – – – – – – (3) (4) (5) (6) (7) (8) (9) (10) – 11.74 0.55 17.97 1.50 32.16 63.92 9.47 73.39 49.56 1.25 50.81 AS AT ADDITIONS DELETIONS/ 01-04RECLASSI2009 FICATION AS AT 31-032010 UPTO THIS YEAR 31-032009 DELETIONS/ RECLASSIFICATION UPTO 31-032010 GROSS AMOUNT AMORTISATION NET AMOUNT AS AT 31-032010 (11) 26.92 0.12 0.63 22.46 – 9.03 59.17 230.35 289.51 45.44 9.53 54.97 AS AT 31-032009 (12) 18.63 0.34 0.93 11.64 0.23 13.67 45.44 9.53 54.97 54.42 9.78 64.20 Rs. Crores GROSS AMOUNT AS AT ADDITIONS CAPITALISA01-04TIONS 2009 AS AT 31-032010 AMORTISATION UPTO THIS YEAR 31-032009 DELETIONS/ RECLASSIFICATION UPTO 31-032010 NET AMOUNT AS AT 31-032010 AS AT 31-032009 USEFUL LIFE (NO. OF MONTHS) (2) (3) 5.96 5.96
–
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
20. INTANGIBLE ASSETS In accordance with Accounting Standard 26 , details of Intangible Assets recognised and amortised during the year are given below: a) Intangible assets - being amortised
PARTICULARS
(1)
1.RIGHT OF WAY
2.SOFTWARE
Bharat Petroleum Corporation Limited
(4) 2.53 2.53
5.96
3.SOFTWARE
4.SOFTWARE
5.DEVELOPMENT RIGHTS
6. PROCESS LICENSE
TOTAL
Share of Interest in Joint Venture
Grand Total
Previous Year
Share of Interest in Joint Venture 2008-09
Grand Total 2008-09
b) Intangible Assets- pending amortisation*
PARTICULARS
(1)
(5) 5.87 5.87
–
(6) 2.62 2.62
5.96
(7) – –
–
(8) – –
–
(9) – –
–
(10) – –
–
(11) 2.62 2.62
5.96
(12) 5.96 5.96
–
1. SOFTWARE
TOTAL
Previous Year
* To be amortised from the time the Intangible Asset starts providing economic benefits Note: There are no internally generated Intangible Assets
SCHEDULE ‘X’ — (CONSOLIDATED) (CONTD.)
31/03/2009 21. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES : Rs. Crores 21.1 Capital Commitments : Estimated amount of contracts remaining to be executed on capital account and not provided for Share of interest in Joint Ventures Total 21.2 Contingent Liabilities : (a) In respect of taxation (b) Other Matters : i) Surety bonds executed on behalf of other oil companies for excise/ customs duties for which BPCL has signed as surety ii) Claims against the Corporation not acknowledged as debts : Excise and customs matters Sales tax matters Others* These include Rs. 751.55 crores (previous year Rs. 668.14 crores) against which the Corporation has a recourse for recovery and Rs. 29.41 crores (previous year Rs. 30.80 crores) on capital account. * In respect of lands acquired, land owners have claimed higher compensation before various Authorities / Courts, which are yet to be settled. The estimated contingent liability of Rs.54.63 crores (previous year Rs. 54.42 crores) in such cases is included above. iii) Claims on account of wages, bonus/ex-gratia payments in respect of pending court cases. iv) Guarantees given on behalf of Subsidiaries/JV’s (c) Share of interest in Joint Ventures (a) (b) (c) 1,190.86 2,668.30 585.58 253.84 2,412.98 471.78 Rs. Crores
2,432.45 1,664.94 4,097.39
3,433.64 2,580.94 6,014.57
286.06
291.51
195.30
166.33
4.55 3,786.18 433.99
1.10 696.75 63.20
22. 22.1 Foreign exchange losses amounting to Rs. 37.42 crores including Rs. Nil pertaining to share of interest in joint ventures (previous year Rs. 375.58 crores including Rs.181 crores pertaining to share of interest in joint ventures) are regarded as adjustment to Interest cost and debited to Interest expenditure. 22.2 The deferred premium amounting to Rs. 90.29 crores including Rs. Nil pertaining to share of interest in joint ventures (previous year Rs.123.21 Crores including Rs. Nil pertaining to share of interest in joint ventures) in respect of forward exchange contract will be recognised in the Profit and Loss Account of one or more subseqent accounting periods. 23. Figures have been regrouped wherever necessary.
Annual Report 2009-2010
163
CASH FLOW STATEMENT (CONSOLIDATED)
For the year ended 31st March Notes A Cash Flow from Operating Activities Net Profit Before tax and prior period items Adjustments for : Depreciation Interest Foreign Exchange Fluctuations (Profit) / Loss on Sale of fixed assets (Profit) / Loss on Sale of investments Income from Investments Dividend Received Other Non-Cash items Interest Income Operating Profit before Working Capital Changes Note 3 1,444.56 1,124.66 (274.51) (3.55) 221.07 (1,181.08) (13.29) 932.59 (0.43) 5,099.87 1,261.70 2,387.82 631.45 1.70 515.42 (745.86) (2.85) (37.59) (4.05) 5,150.81 2,849.85 1,143.07 2010 Rs. Crores 2009 Rs. Crores
(Invested in) / Generated from :
Trade Receivables Other receivables Inventory Current Liabilities & Payables (1,244.06) (742.56) (6,257.77) 4,013.74 480.55 792.40 3,644.69 (2,471.97)
Cash generated from Operations
869.22
7,596.48
Direct Taxes paid
(1,046.86)
(567.65)
Cash flow before prior period items
(177.64)
7,028.83
Prior Period Items Non Cash Items
(47.21) 0.60
(8.50) (2.48)
Net Cash from Operating Activities
(224.25)
7,017.85
164
Bharat Petroleum Corporation Limited
CASH FLOW STATEMENT (CONSOLIDATED)(CONTD.)
For the year ended 31st March Notes B Net Cash Flow from Investing Activities Purchase of fixed assets Adjustment for retirement/reclassification of Fixed Assets Sale of fixed assets Adjustments to Pre Operating Expenses (5,176.99) 11.95 (16.87) (4,485.08) (2.82) 3.79 (79.08) 2010 Rs. Crores 2009 Rs. Crores
(Investment)/Sale of Investment in JVC's Premier Oil Cachar BV Sabarmati Gas Ltd. Maharashtra Natural Gas Ltd. Bharat Star Services Private Ltd. Delhi Aviation Fuel Facility Private Ltd. VI eTrans Private Ltd. Bharat Renewable Energy Ltd. Matrix Bharat Marine Services Pte Ltd. DNP Ltd. Brahmaputra Cracker Polymer Ltd.
Investment in Subsidiary Companies Bharat PetroResources Ltd. Advance for Investments Purchase of Investment Sale of Investments Income from Investment Dividend Received Interest Received Net Cash Flow on Investing Activities C Net Cash Flow on Financing Activities Equity Investment Long term Borrowings Repayment of loans Interest paid Dividend Paid Corporate Dividend Tax Exchange difference on forward contracts Net Cash Flow on Financing Activities D # Net Increase / (Decrease) in Cash and Cash equivalents (A+B+C) Value Rs.37,000
0.10 (39.95) (22.48) (5.00) # -
(1.60) 0.01 (1.00) (8.41) (24.16) (28.29)
(200.00) (3,785.02) 7,243.42 1,193.40 13.29 4.03 (780.12)
(400.38) (20,235.70) 11,853.61 585.66 2.85 4.05 (12,816.56)
234.95 3,145.08 (337.09) (1,372.21) (297.65) (52.99) (160.52) 1,159.58 155.21
613.33 3,445.57 (1,229.92) (2,343.94) (203.22) (36.55) (159.63) 85.64 (5,713.07)
Annual Report 2009-2010
165
CASH FLOW STATEMENT (CONSOLIDATED)(CONTD.)
For the year ended 31st March Notes Cash and Cash equivalents as at 31st March Cash in Hand Cash at Bank Cash in transit Cash Credit from scheduled banks CBLOs Unsecured loans from scheduled banks / ICDs / CPs Cash & Cash Equivalents on A/c of acquisition of Business of IBV (Brazil) Petroleo Ltda. by VB Brazil Petroleo Pvt Ltda. 2010 Rs. Crores 2009 124.92 1,220.72 2.00 (2,497.70) (150.00) (14,915.25) 0.00 (16,215.31) Cash and Cash equivalents as at 31st March Cash in Hand Cash at Bank Cash in transit Cash Credit from scheduled banks Unsecured loans from scheduled banks / ICDs / CPs CBLOs Net change in Cash and Cash equivalents 2010 98.88 628.26 1.29 (6,714.29) (9,574.24) (500.00) (16,060.10) 155.21 2009 Rs. Crores 2008 396.20 1,183.34 9.18 (930.12) (1,000.00) (10,171.14) 10.30 (10,502.24) 2009 124.92 1,220.72 2.00 (2,497.70) (14,915.25) (150.00) (16,215.31) (5,713.07)
Explanatory Notes to Cash Flow Statement 1 The Cash Flow Statement is prepared in accordance with the format prescribed by Securities and Exchange Board of India and as per Accounting Standard 3 as notified by the Central Government. 2 In Part-A of the Cash Flow Statement, figures in brackets indicate deductions made from the Net Profit for deriving the net cash flow from operating activities. In Part-B and Part-C, figures in brackets indicate cash outflows. 3 The net profit / loss arising due to conversion of current assets / current liabilities / receivable / payable in foreign currency is furnished under the head "Foreign Exchange Fluctuations" . 4 “Other Non-Cash items” include excess provisions written back, foreign exchange adjustments, diminution in value of investment, transfer to Capital reserve, Bad debts and materials written off and miscellaneous adjustments not affecting cash flow. 5 Figures of the previous year have been regrouped wherever necessary, to conform to current year's presentation. For and on behalf of the Board of Directors Sd/ASHOK SINHA Chairman and Managing Director As per our attached report of even date For and on behalf of For and on behalf of B. K. KHARE & CO. K. VARGHESE & CO. Chartered Accountants Chartered Accountants FR No: 105102W FR No: 004525S Sd/Sd/PADMINI KHARE KAICKER K. VARGHESE Partner Partner Membership No. 44784 Membership No. 20674
Place : Mumbai Dated : 27th May, 2010
166
Bharat Petroleum Corporation Limited
ANNEXURE TO THE DIRECTORS’ REPORT ANNEXURE F
Rs. Crores
STATEMENT PURSUANT TO EXEMPTION RECEIVED UNDER SECTION 212(8) OF THE COMPANIES ACT, 1956 RELATING TO SUBSIDIARY COMPANIES
Extent Reporting Capital Reserves of Currency holding Total Total Assets Liabilities Investment Turnover (except in case of Subsidiary Company) 118.20 566.63 0.00 (66.33) (24.77) (29.02) (3.07) (35.72) 0.32 7,874.09 358.11 129.63 228.48 (35.72) (3.39) (66.33) (24.77) (29.02) Profit / Provision Profit / Proposed Country of for tax (Loss) Dividend Incorporation (Loss) after tax before tax 110.34 India - India - India - Netherlands - Netherlands - Netherlands - Netherlands
Sr. Name of the Subsidiary Company No.
1 100% 100% 100% 100% 100% 100% USD 189.27 (29.16) * 160.39 0.27 USD 455.11 (59.85) * 924.03 528.77 USD 11.39 (0.14) * 11.35 0.09 USD 656.93 (90.18) * 567.12 0.37 INR 0.05 (5.40) * 111.41 116.76 INR 702.55 (58.03) * 974.79 330.26
Numaligarh Refinery Limited
61.65%
INR 735.63
1,714.41
4,206.26 1,756.22
2
Bharat PetroResources Limited
3
Bharat PetroResources JPDA Limited
4
BPRL International B.V.
5
BPRL Ventures Indonesia BV
6
BPRL Ventures B.V.
7
BPRL Ventures Mozambique B.V.
*
Represents negative Reserves.
Notes:
(i)
Numaligarh Refinery Limited and Bharat PetroResources Limited are direct subsidiaries of Bharat Petroleum Corporation Limited.
(ii)
Bharat PetroResources JPDA Limited, and BPRL International B.V. are subsidiaries of Bharat PetroResources Limited.
(iii) BPRL Ventures BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia BV are wholly owned subsidiaries of BPRL International BV
(iv) The first accounts of BPRL Ventures Indonesia BV is prepared for the period 21st August 2009 to 31st March 2010.
(v)
The financial statements of BPRL International BV are drawn for the 15 months ended 31st March, 2010
(vi) Indian Rupees (INR) equivalent of the figures of subsidiary companies whose Repor ting Currency is US Dollar (USD) is based on exchange rates as on 31st March 2010. (USD 1 = INR 45.14).
Annual Report 2009-2010
167
168
Financial Year ending of the Subsidiary Companies 2 3 4 No. of shares held as on 31.3.2010 Extent of holding by holding company 31.3.2010 100% 100% 100% 100% (26.36) (70.60) (3.39) (2.00) (24.03) (35.35) (35.72) (21.31) 61.65% The net aggregate amount of the Subsidiary Company's Profit/(Loss) so far as it concerns the members of the Holding Company and not dealt with in the accounts of the Holding Company (Except to the extent dealt within Col.7 & 8) 5 6 For the Financial For the Previous Financial Year ended Years since it became a 31.3.2010 Subsidiary Company (Rs. In Crores) (Rs. In Crores) 143.08 1,047.51 The net aggregate amount of the Subsidiary Company's Profit/(Loss) so far as it concerns the members of the Holding Company and dealt with in the accounts of the Holding Company. 7 8 For the Financial For the Previous Financial Year ended Years since it became a 31.3.2010 Subsidiar y Company (Rs. In Crores) (Rs. In Crores) 68.03 472.75 31.3.2010 (Refer Note 1) 31.3.2010 (Refer Note 1) 31.3.2010 (Refer Note 2 & 3) 31.3.2010 (Refer Note 2) 31.3.2010 (Refer Note 2) 31.3.2010 (Refer Note 2) 1860027 shares of Euro 1 each fully paid up 100% 30593078 shares of Euro 1 each fully paid up 100% (30.88) (0.16) 453545998 shares of Rs.10/each fully paid up 702552610 shares of Rs.10/each fully paid up 49940 shares of Rs.10/each fully paid up 106880846 shares of Euro 1 each fully paid up 74135411 shares of Euro 1 each fully paid up (0.15) -
STATEMENT REGARDING SUBSIDIARY COMPANIES PURSUANT TO SECTION 212(1)(e) OF THE COMPANIES ACT,1956
Name of the Subsidiary Companies
1
1.
Bharat Petroleum Corporation Limited Sd/S.K.Joshi Director(Finance) Sd/S.V.Kulkarni Company Secretary
2.
3.
4.
5.
6.
7.
Numaligarh Refinery Ltd (NRL) (w.e.f. 31.3.2001) Bharat PetroResources Ltd. (BPRL) (w.e.f. 17.10.2006) Bharat PetroResources JPDA Ltd. (w.e.f. 28.10.2006) (subsidiary of BPRL) BPRL International BV (w.e.f. 26.3.2008) (subsidiary of BPRL) BPRL Ventures BV (w.e.f. 26.3.2008) (subsidiary of BPRL International BV) BPRL Ventures Mozambique BV (w.e.f. 23.7.2008) (subsidiary of BPRL International BV) BPRL Ventures Indonesia BV (w.e.f. 21.8.2009) (subsidiary of BPRL International BV)
Notes : 1. 2. 3.
In addition to the shares held by holding company, six individuals, who are nominees of BPCL, each hold ten shares of Rs.10 each of the Company. In respect of BPRL International BV, BPRL Ventures BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia BV the figures are converted from USD to Indian Currency. Loss of BPRL International BV is consolidated loss i.e. including losses of BPRL Ventures BV, BPRL Ventures Mozambique BV and BPRL Ventures Indonesia BV.
For and on behalf of the Board of Directors
Sd/Ashok Sinha Chairman & Managing Director
Place : Mumbai Date : 27th May, 2010
energising lives
Expanding Horizons for a Brighter Future
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doc_836000710.pdf