HPCL AnnualReport2009-10

8/6/2019 HPCL AnnualReport2009-10

http://slidepdf.com/reader/full/hpcl-annualreport2009-10 1/144



1

58th Annual Report 2009-2010

Our Directors

Ex-Officio Part-TimeDirectorsWhole Time Directors Non-Official Part-timeDirectors

Shri S Roy Choudhu ry

Chairman & Managing Director

(From 01/ 08/ 2010)

Dr. V. Vizia Sa rad hi

Director-Human Resources

Shri B. Mukherjee

Director – Finance

Sh ri K. Mura li

Director – Refineries

Shr i Arun Balakr i shnan


(Till 31 / 07/ 2010)

Shri P.K. Sinha

Director

Shri L.N. GuptaDirector

Shri P.V. Rajaram anDirector

(Till 19/ 07/ 2010)

Prof. Praka sh G. Apte

Director(Till 19/ 07/ 2010)

Dr. Gitesh K. Sh ah

Director

(F r om 07 / 12 / 2009)



2


De a r Sha re ho l de r s ,

I t g ives me immense pleasure to present you the 58th Annual Report 2009-10.

The year 200 9 -10 sa w recovery of global economy from th e lows of previou s year. The extraord inary m easu res

taken by policymakers al l over th e world con tained th e fal lout of the fina ncial crisis of 200 8. India was not

immune to the c r i s i s though impact was muted as evident f rom the re la t ive ly modest s lowdown in the

growth rates of the econom y from 9 % to abou t 7%. The growth rate for the econom y is s lowly edging h igher.

In 2009-10, the Indian economy grew at 7.4%. Oil prices, after hovering around US $50-60 per barrel in the

early part of the financial year, have been steady at US $70-80 per barrel . Aggressive production cuts by

OPEC provided support to prices despi te fal l in the global oi l demand in 2009.

Oi l demand in India increased a t a s teady 3% to 138 MMT. Sa les of t ranspor t fue l s were quie t robust

despi te the fact that prices of petrol and diesel were increased twice in response to rising crude prices.Rising incomes and thus, vehicle ownership appear to offset the price impact . Kerosene and LPG prices

were untouched. Gas s ta r ted f lowing f rom D-6 f ie ld in KG bas in increas ing domest ic product ion by a

significant 45%. Greater avai labi l i ty of competi t ively priced gas reduced the demand for naphtha.

Our sales increased by 3.5% to reach 26 MMT during the year 2009-10. In l ine with the overal l t rend, auto

fu el sales increased b y abou t 9%. Naph th a sa les, however, were su bst an t ially down. Ou r refineries process ed

a bou t 16 MMT of c rude a c h i e v i ng c a pa c i t y u t i l i z a t i on a bove 100% . Turnove r fo r t he ye a r wa s ove r

Rs. 10800 0 crores. Profi t after tax for 2009 -10 is about Rs. 1300 crores compa red to Rs. 575 crores in 20 08-

09. Under-recoveries absorbed by the company were to the tune of about Rs. 1,200 crores. The interest

cos t was brought down through judic ious t reasury management .

In the current uncertain global economic environment , the performance of Indian economy has been quite

strong. As per capi ta incomes rise, demand for oi l wil l a lso increase be i t t ransport , industry or residential

demand. The Government of India has recent ly dec ided to move towards marke t de te rmined pr ic ing of

pe t rol . This wi l l enable the pr iva te sec tor to re -ente r the re ta i l marke t for automot ive fue l s . Thus the

space which was left to PSU market ing companies wil l become more dynamic once again.

We aim to capture the growth in the sector by improving our customer reach and extending our offerings

backed by an efficient capi tal base. The Green fuels projects for production of petrol at our Mumbai and

Visakh refineries ha ve been completed an d are produ cing Eu ro III/ IV qu al ity petrol . Mum bai refinery

became the fi rst Indian PSU refinery to commence production of Euro IV qual i ty petrol and the project was

dedica ted to the n a t ion in J an ua ry 2010 by Shr i J a i ram Ram esh, Hon’ble Minis te r of Sta te (Indepen dent

Cha rge) Ministry of Environmen t & Forests, in the fu nct ion p resided b y Shr i Mu rl i Deora, Hon’ble Ministerof Petroleum & Natural Gas. As regards diesel , both the refineries have commenced production of Euro III

qua l ity diesel by cha nging over to h igher grade a ct ivity catalyst . To produ ce Eu ro IV qua l ity diesel both the

refineries are current ly implementing Diesel Hydrotreater Projects at an approved cost of Rs. 6900 Crores.

To take ful l advantage of Single point mooring faci l i t ies project at Visakhapatnam, we have t ied up with

Indian strategic Petroleum Reserves Limited (ISPRL) for 300 TMT crude storage in the cavern project being

executed by them. This wi l l provide us the requi red s torage space to unload VLCC. Our joint venture

refinery in Bathinda Punjab is slated for commissioning next year. Associated distribut ion infrastructure

Chairman’s Message



3


for produ ct evacu at ion inclu ding pipelines is also being execu ted as per sch edu le. Reach to ru ral cus tomers

is being ach ieved t hr ough sch emes l ike “HP Gas Rasoi Gha r” an d “Rajiv Gand hi Gra min LPG Vitarak”. Wealways ha d a s t ron g presence in lub r icants m arke ts an d we have mainta ined i t by cont inu ously u pgrading

product range in l ine wi th changing cus tomer requi rements and a l so ta i lor ing our product to spec i f ic

c us t ome r ne e ds . Inc re a s i ng de ma nd i s no t t he on l y e l e me nt i n our ope ra t i ng e nv i ronme nt . The o t he r

fa c t o r i s i nc re a s i ng c onc e rns a bou t e nv i ronme nt a l i mpa c t o f i nc re a se d fos s i l usa ge a nd a bou t e ne rgy

se c ur i t y . The se t wo c onc e rns ha ve dove t a i l e d i n t o g re a t e r push fo r r e ne wa bl e e ne rgy . In pur su i t o f

opportuni t ies thus opened, we are invest ing in ethanol and biodiesel production and also in wind energy

projects. We are a lso act ive in u pst ream sector an d in ci ty gas distribu t ion projects to diversify our r evenu e

portfol io.

Al l our plans a re dependent on the commitment , exper ience and hard work of our people . We a im to

nu r ture thi s t a lent by c rea t ing a work environmen t condu cive to grea te r produ ct ivity and by cont inu ous up -gradat ion of ski l ls .

Our cus tomers , bus iness assoc ia tes and shareholders have a lways been a source of s t rength and I thank

th em for th eir su pport . The Ind epend ent Directors h ave provided crit ical inp u t bas ed on th eir vast kn owledge

& exper ience . The government di rec tors and the Minis t ry of Pe t roleum & Natura l Gas , has guided and

supported in al l our efforts . We look forward to their continued support in al l our endeavors.

Thank you,

S. Roy Choudhury

Chairman’s Message



4


Shri Suneet Mohan Misra Chief Vigi lan ce Officer (From 16/ 12/ 200 9)

Shri G.A. Shirwaikar ED - Maharashtra Refinery Project

Shri S.V. Sahni ED - Central Engineering (Refineries)

Shri D.K. Deshpande ED - HRD

Shri K.S. R. Prasad ED - Joint Ventures

Ms. Nishi Vasudeva ED - LPG

Shri O.P. Pradhan ED - Corporate Planning & Strategy

Shri P.A.B. Raju ED - Visakh Refinery

Shri K.V. Rao ED - Corporate Finance

Shri R. Sudhakara Rao ED - Direct Sales

Shri A.B. Thosar ED - Projects & Pipelines

Shri S.P. Gupta ED*

Shri M.S. Damle ED - Retail

Shri Y.K. Gawali ED - O&D

Shri Rajan K. Pillai ED*

Shri B.K. Namdeo ED - IT & S

Shri S.C. Mehta ED - Mumbai Refinery

Shr i Sandeep Joseph G en e ra l Ma n a ge r - In d u s t r ia l Re la t io n s

Shri C.S. Krishnaswamy G en e ra l Ma n a ge r - R&D & Q C

Shri D.M. Sabale G en e r a l Ma n a g er - S HE (Ma r k et in g )

Shri P. Rajendran G en e r a l Ma n a g er - Ma r k e t in g Pr o je ct s

Shri K. Sr inivasan G en e r a l Ma n a g er - Te ch n i ca l, MR

Shri R. Ganesan G en e r al Ma n a ge r - In t er n a l Au d it

Shri Rakesh Kumar G en e r al Ma n a ge r - H R (C M)

Shri A.V. Sarma G en er a l Ma n a ger - Na t u r al Ga s

Shri S.T. Sathiavageeswaran G en e ra l Ma n a ge r - In fo rm a t io n S y s te m s

Shri G. Sriganesh G en e ra l Ma n a ge r - R&D , Co rp or a te

Shri D.K. Hota G en e ra l Ma n a ge r - MRA & P

Shri K.C. Agarwal G en e ra l Ma n a ge r - Ma in t en a n c e, MR

Shri V.V. Nagada G en e ra l Ma n a ge r - P ro je ct s , MR

Shri Y.K. Rao G en e r a l Ma n a g er - Ma t e ria ls , VR

Shri Ramanuj Roy G en e ra l Ma n a ge r - F in a n c e, MR

Shri S.P. Singh Ge ne ra l Ma na ger - Explora tion & Produc t ion

Senior Management Team



5


Shri N.S.J. Rao G en e ra l Ma n a ge r - O p er a t io n s , MR

Shri S. Babu Ganesan G en e r a l Ma n a g er - E n g in e e rin g & Pr o je ct s

Ms. Sonal Desai Gen er al Ma n ager - CS R

Shri M. Naveen Kumar G en e ra l Ma n a ge r - F in a n ce , VR

Shri P.P. Nadkarni Genera l Manager*

Shri H. Kumar G en e r a l Ma n a g er - R et a il U p gr a d a t io n

Shri S. Jeyakrishnan G en e ra l Ma n a ger - E a st Zon e

Shri H.R. Wate G en er a l Ma n a ger - R et a il

Shri A. Pande G en er a l Ma n a ger - We s t Zo n e

Shri J. Ramaswamy G en e r a l Ma n a g er - C om m e r c ia l, D ir e ct S a le s

Shri R. Radhakrishnan G en e ra l Ma n a ge r - Avia t io n

Shri V.K. Jain G en er a l Ma n a ger - Ta x

Shri V.V.R. Narasimham G en e r a l Ma n a g er - Te ch n i ca l, VR

Shri M.K. Surana G en e ra l Ma n a ge r - O p er a tio n s , VR

Shri Ajit Singh Ge ne ra l Ma na ger - De lh i Coord i na t ion Offic e

Shri Rakesh Misri G en er a l Ma n a ger - No rt h Z on e

Shri Pushp Joshi G en e r a l Ma n a g er - H R (Ma r k e tin g )

Shri L.M. Motwani G en er a l Ma n a ger - PR & CC

Shri A.K. Bhan G en e ra l Ma n a ger - S ou t h Zon e

Ms. Geeta Jerajani Ge ne ra l Ma na ger - Corpora te P la nn ing & S t ra t egy

Shri S.P. Nair G en e ra l Ma n a ger - Lega l

Shri B. Ravindran G en e r a l Ma n a g er - C om m e r cia l, LP G

Shri M. Rambabu G en e ra l Ma n a ge r - C EC

Shri MVR Krishna Swamy Genera l Manager*

Shri R. Kesavan G en e r a l Ma n a g er - C om m e r c ia l, R et a il

Shri H.C. Mehta G en er a l Ma n a ger - O & D

Shri Shrikant M. Bhosekar Company Secre ta ry

*: on depu tat ion

Senior Management Team



6


Offices, Auditors & Bankers

Regist ered Office & Headquarters Office

Petroleum House,17 , J ams hedj i Ta ta Road,

Mum bai - 400 020

e-mail: [email protected]

websi te: www.hindustanpetroleum.com

Marketing Headquarters

Hindus tan Bhavan

8, Shoorji Vallabhdas Marg

Ballard Estate , Mumbai - 400 001.

Mum bai RefineryB.D. Patil Marg, Chembur,

Mumbai – 400 074

Visakh Refinery

Post Box No.15,

Visakh apatn am – 530 001

Zonal Offices

East Zone

6, Chu rch Lane ,

Post Box No. 146,

Kolkata – 700 001

North Zone

6 th & 7 th Floor,

Core 1 & 2, North Tower,

Scope Minar, Laxmi Nagar,

Delhi – 110 092

North Central Retail Zon e

C/ o. Lu ckn ow Retail R.O.

4, Sh an ajaf Road, 1, Nehru Enclave,

Besides Vishwas Khand, Gomti Nagar,Lu ckn ow – 226 00 1 (U.P.)

North Wes t Re tail Zone

C/ o. Au to Care Centre

J ud ges Bu nglow Road,

Bodakdev, Near Satyagraha Chavani ,

Ahm edabad – 380 054

South Zone

Thalamuthu Natarajan Building,4th Floor , 8,Gandh i Irwin Road,Post Box No.3045, Egmore,Chenn ai - 600 008.

South Central Retail Zone111, Cha nd ralok Complex, Firs t Floor ,Sarojini Devi Road,Secun deraba d – 500 003 (AP)

West ZoneR&C Bu ilding, Sir J .J . Road, Bycu lla ,Mumbai – 400 008

Statutory AuditorsM/ s. V. Sank ar Aiyar & Co.Char te red Accoun tant s , Mum bai

M/ s. Om Agarwal & Co.Char te red Accoun tant s , J a ipur

Branc h Audito rsM/ s.Grandhy & Co.Chartered Accountants ,Vi sakhapa t nam

Cost Audito rs

M/ s. R. Nanabhoy & Co .J e r Mans ion , 1 st Floor , 70 Au gust Kran t iMarg, Mu mb ai – 400 0 36

M/ s. CMA Rohit J. Vora1103 Raj Sunflower ,Royal Complex, Ek sa r Road , Borivali (W)Mumb ai – 400 0 92

Bankers1 . Ba n k of Ba rod a2 . Ba n k of In d ia3 . C it ib a n k N. A.4 . Cor por at ion B a nk 5 . HDFC Ba n k 6 . ICICI Ba n k 7 . Pu n ja b Na t ion a l Ba n k 8 . S ta n da rd Ch a rt er ed B an k 9 . S ta te Ba n k of In d ia10. Union Bank of India

Company SecretaryShrikant M. Bhosekar



7


Notice of Annual General Meeting

HINDUSTAN PETROLEUM CORPORATION LIMITED

(A Gove rnme nt of India Enterprise )REGISTERED OFFICE : 17 J AMSHEDJ I TATA ROAD, MUMBAI 4 0 0 0 2 0

NOTICE

NOTICE is h ereby given th at t h e 5 8 th ANNUAL GENERAL MEETING of the Memb ers of Hind u stan

Petroleu m Corp oration Limited will be h eld on Thu rsd ay, Septem ber 16 , 201 0 at 1 1.00 A.M. at Y.B.

Chavan Auditor ium, at Yeshwantrao Chavan Prat ishthan, General Jagannathrao Bhonsle Marg,

Mumb ai – 400 021 to t rans act th e following bu siness :

ORDINARY BUSINESS :

1 . To rece ive , cons ider and adopt the Balance Shee t as on March 31 , 20 10, Profit an d Loss Accoun t

for the year en ded on tha t da te an d Reports of the Board of Directors a nd Au ditors th ereon.

2 . To dec lare Equi ty Dividend for the Finan cia l Year 2009-2010.

3 . To appoin t a Dir ec t or in p l ace of Shri P.K. S inha , who retires by rotation and is eligible for

reappoin tment .

4 . To appoin t a Dir ect or in p l ace of Shri L.N. Gupta , who retires by rotation and is eligible for

reappoin tment .

5 . To appoin t a Dir ect or in p l ace of Shri B. Muk her jee , wh o retires b y rotation an d is eligible for

reappoin tment .

SPECIAL BUSINESS :

6. To consider an d, i f thou ght fit , to pas s with or without modificat ion(s), the following resolut ionas an Ordinary Resolu t ion

“RESOLVED th at Dr. Gite sh K. Shah who was app ointed as Addit ional Director of the Compan y

by th e Board of Directors u nd er Article 11 2 of the a rticles of Ass ociation of the Com pa ny with

effect from 0 7.12.20 09 a nd who h olds office un der th e said Art icle an d p u rsu an t to Sect ion 2 60

of the Companies Act, 1956 upto the date of this Annual General Meeting, and who is eligible

for re-appointm ent u nd er the r elevan t provisions of the Comp an ies Act , 1956, an d in res pect of

whom the Company has received a notice in writing from a member signifying his intention to

propose him as a candidate for the off ice of the Director , be and is hereby appointed as a

Director of the Com pa ny liable to retire by rota tion ”.

BY THE ORDER OF THE BOARD

Shrikant M. Bhos ekarCom pany Se cretary

Da te : Au gu s t 05 , 2010

Regd . Office : 17 , J am shed ji Ta t a Road

Churchgate ,

Mum bai - 400 020



8


NOTES :

1. A MEMBER E NTITLED TO ATTEND AND VOTE AT THE MEE TING IS E NTITLED TO APPOINT APROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND SUCH PROXY NEED NOT BE A

MEMBER OF THE COMPANY. Proxies in ord er to b e effective, m u st be d eposited at th e Register ed

Office of the Company not less than 48 hours before the time of the meeting.

2 . The Explana tory Sta tement ma de purs ua nt to Sec tion 173(2) of the Companies Act , 1956 in

respect of the item No. 6 of the Notice is annexed herewith.

3 . Dividend on Equ ity Shares a s recomm ended by the Directors for the year ended March 31 ,

2010, i f approved at the meet ing, wil l be payable to those el igible members whose names

appear:

(1) As Beneficial owners , as on September 06 , 2010 a s per th e lis t to be fu rnish ed by Nat iona l

Secu rities Dep ository Ltd. a n d Cen tra l Depository Services (In dia) Ltd. in resp ect of sh ares

held in electronic form, and

(2) As Members in the Register of Memb ers of the Compa ny as on S eptember 06, 20 10 a fter

giving effect to all valid share transfers in physical form lodged with the Company on or

before September 06, 201 0.

(3) In t e rms of c ircu lar no . MRD/ DoP/ Cir -05/ 2009 da ted 20 th May, 200 9 issu ed by Secu rit ies

an d Exch an ge Board of In dia (SEBI), it is now ma n da tory for the tr an sferee of th e ph ysical

shares to furnish copy of PAN card to R&T Agents for registration of transfer of shares.

Transferees are requested to submit copy of PAN card alongwith Transfer Deed duly

completed and physical share certificate(s).

4 . Members a re reques ted to br ing the ir copies of the Ann u al Repor t to the Meet ing . Members /

Proxies attending the Meeting should bring the Attendance Slip, duly fil led, for handing over

at the venue of the meet ing.

5 . (a ) Members hold ing shares in phys ica l form are reques ted to advise imm edia te ly chan ge intheir address, if any, quoting their Folio number(s), to M/ s . Link Intime India Pvt. Ltd .,

the Regist rars at their address given below.

(b) Sha reholders holding sh ares in dema ter ial ised form are requested to advise imm ediately

cha n ge in a dd ress , if an y, quoting their resp ective Clien t ID / DP ID Nos., to th eir respective

Depository Participants only an d n ot to M/ s. Link Intime India Pvt. Ltd., or to the Compa ny.

6 . (a ) Mem ber s ho ld ing sha r e s in ph ys ica l fo rm , who have no t given t he Bank Particulars /

Mandat e, ECS Mandate s earl ier or i f there is an y chan ge in the d etai ls , a re requested to

send the s am e qu ot ing th e Folio nu mb er(s), to our Regist rar s M/ s. Link Intime India Pvt.Ltd. on or before Septe mber 06, 2 01 0.

(b) All Shareh olders who ar e holding sha res in Demater ialised form are requ ested to advise

change, i f any, in detai ls of their bank account / E CS mandat es to their respect ive

D epos i t ory Par t i c i pant s i m m ed i a t e l y t o enab l e t he com pany t o pay t he d i v i dend

accordingly.

7 . Members a re hereby informed tha t Dividends which remain u nc la imed / un encashed over a

period of 7 years have to be transferred by the Company to Investor Education & Protection

Fun d const i tuted by the Centra l Governm ent u nd er Sect ion 205 A an d 205 C of the Compa nies

Act, 195 6.

We give below the details of Dividends paid by the Company and their respective due dates of

t ransfer to the said Fund of the Central Government i f they remain unencashed.




9


Dat e o f de c larat ion o f Divide nd for t he ye ar Mont h & ye ar o f

Dividend t rans fer t o t he Fund24.09.2003 2002-03 (Fin a l) Oct.2010

22.12.2003 2003-04 (In ter im ) J an .2011

09.09.2004 2003-04 (Fin a l) Oct.2011

09.12.2004 2004-05 (In ter im ) J an .2012

21.09.2005 2004-05 (Fin a l) Oct.2012

14.09.2006 2005-06 (Fin a l) Oct.2013

20.12.2006 2006-07 (In ter im ) J an .2014

06.09.2007 2006-07 (Fin a l) Oct.2014

22.09.2008 2007-08 (Fin a l) Oct.2015

28.08.2009 2008-09 (Fin a l) Sep . 2016

It may please be noted that no claim can be made by the shareholders for the unclaimed

Dividends which have been transferred to the credit of the Investor Education & Protection

Fun d of the Central Governm ent u nd er the a men ded provision of Sect ion 20 5B of the Compa nies

(Amendment) Act, 1999.

In view of the a bove regulat ion, th e sh areh olders wh o are yet to encas h the d ividend are a dvised

to send requests for du pl icate dividend warran ts in case th ey have not received th e Dividend

Warra nts for an y of the a bove men t ioned f ina ncial years a nd / or send requests for reval idat ion

of u nen cash ed Dividend Warra nts s t i ll held b y them to the Regist ra rs a nd Tran sfer Agents of

the Compan y so tha t d ividends can b e encashed.

8. The address of Registrars an d Transfer Agents of the Com pany is as fol lows :M/ s . LINK INTIME INDIA PVT. LTD.

Unit:HINDUSTAN PETROLEUM CORPORATION LTD.

C-13, Pannalal Silk Mills Compound

LBS Marg, Bhan du p (West), Mum bai - 400 078

Telephon e No.: 022 – 25963 838 Fax No.: 022 - 259 4696 9

E-m ail : mu m ba i@link int ime.co.in

9. Appointm ent / Re-appointme nt of Direc tors

At th e ensu ing Ann u al Genera l Meet ing, S / Sh ri P.K. Sinh a, L.N. Gupta an d B. Mukh erjee

retire by rotation and being eligible, offer themselves for re-appointment.




10



EXPLANATORY STATEMENT IN PURSUANCE OF S ECTION 17 3 (2) OF THE COMPANIES ACT,

1956 .6. Dr. Gitesh K. Sh ah was app ointed as an Addit ional Director on th e Board effect ive 07.12 .2009.

In term s of Section 260 of th e Comp an ies Act, 19 56 an d Article 112 of th e Articles of Ass ociation

of th e Compa n y, he h olds office u pto th e da te of th is Ann u al Genera l Meeting an d is eligible for

re-appointm ent . The Compan y has received a not ice proposing the can didatu re of Dr. Gitesh

K. Sh ah for th e office of a Director in term s of Section s 2 55 & 257 of th e Compa n ies Act, 19 56.

Dr. Gitesh K. Shah was the former Chairman of the Gujarat Alkalies & Chemicals Limited

and is Chairman of Harita Projects Private Limited.

None of the Directors oth er th an Dr.Gitesh K. Sh ah are interested in th e resolu t ion .

BY THE ORDER OF THE BOARD

Shrikant M. Bhose karCompany Secretary

Da te : Au gu s t 05 , 2010

Regd . Office : 17 , J am shed ji Ta t a Road

Churchgate ,

Mum bai - 400 020



11


ANNEXURE TO ITEMS 3 TO 5 OF THE NOTICE

Detail s of Directors seeking appointme nt / reappointm ent at t he 5 8 th Ann ual Gen eral Mee ting(in pursuance o f Clause 4 9 o f the List ing Agreem ent )

Nam e o f t he Direc tor P.K. S inh a L.N. Gupt a B. Mukh e rje e Dr. Gite sh K. Sh ah

Date of Birth 18 / 0 7 / 19 5 5 1 7 / 0 8 / 1 9 59 0 3 / 0 5 / 19 53 20 / 1 0 / 19 6 1

Na t ion a lity In d ia n In d ia n In d ia n In d ia n

Da te of Appoin tm en t 01 / 03 / 20 0 6 2 5 / 06 / 20 08 0 1 / 02 / 20 08 07 / 12 / 20 0 9

on the Board

Qualifications I IAS I IAS I FCA I D.Sc (Organic

I Pos t Gradu ate I M.A. (Econ om ics ) Ch em is try) USA

in Economics I MBA, Birmingham I Ph.D. (Organic

I M.Ph il in Socia l Un iver s it y Ch em is try)

Scien ces Gu ja ra t Un ivers ity

I Masters Diploma I M.Sc. (Organicin Pu b lic Ch em is try)

Ad m in is t r a t ion Gu ja ra t Un ivers ity

List of Directorships I Indian Oil I Engineers I Petronet India I Harita Projects

h eld in oth er Corpora t ion Ltd . In d ia Lim ited Lim it ed Pvt . Ltd .

Companies I Bhara t Petroleum I Indian Strategic I CREDA – HPCL

Corpora tion Petroleu m Biofu el Lim ited

Lim ited Res erves I HPCL – Mittal

Lim ited Services Lim itedI Cent ra l I HPCL Biofu els

Pollu t ion Lim it ed

Control Board

(CPCB)




12


Performance Profile

2 0 0 9 -1 0 2 0 0 9 -1 0 2 0 0 8 -0 9 2 0 0 7 -0 8 2 0 0 6 -0 7 2 0 0 5 -0 6

US $ Mi l l i o n Rs . / Cro re s Rs . / Cro re s

FINANCIALSales / Income from Operat ions 2 5 , 3 0 6 1 14 ,8 88 .6 3 131,802.65 112,098.27 96,918.15 76 ,920.26Gross Profit 9 2 4 4 , 1 9 3 .1 8 3,776.36 2,725.59 3,094.14 1 ,1 51.21Depreciat ion 2 5 6 1 , 1 6 4 .4 0 981.29 850.82 704.00 6 90 .2 3I n t e r e s t 1 9 9 9 0 3 . 7 5 2,082.84 766.10 422.98 1 75 .88Tax Inclusive Deferred Tax 1 8 1 8 2 3 . 6 1 123.23 (39 .3 4) 386.15 (1 31 .9 1)Provision for Fringe Benefit Tax 0 0 .0 5 14.03 13.13 9.84 11.3 8Net Profit 2 8 7 1 , 3 0 1 .3 7 574 .98 1 ,134 .8 8 1 ,571.17 405.63Dividend 9 0 4 0 6 . 3 5 177.78 101.59 610.80 1 01 .8 0Tax on Distributed Profits 1 5 6 7 . 4 9 30.21 17.26 97.75 14.2 8Retained Earnings 1 8 2 8 2 7 . 5 3 366.99 1 ,01 6.03 8 62 .6 2 2 89 .5 5

INTERNAL RES OURCES GENERATED 4 8 4 2 , 1 96 .5 3 1,382.56 2,069.38 1,603.08 9 89 .47

VALUE ADDED 2 , 0 6 3 9 , 3 6 5 .2 6 8,267.54 6,045.40 6,209.19 4 ,1 98.13

WHAT CORPORATION OWNS

Gross Fixed Assets 5 ,5 0 4 2 4 ,9 8 8 .3 7 20,208.83 19,570.05 15,638.48 13 ,479.25Depreciat ion 2 ,1 3 3 9 ,6 8 1 .7 0 8,554.08 7,640.77 6,817.64 6 ,1 41.85

Net Fixed Assets 3 ,3 7 2 1 5 ,3 0 6 .6 7 11,654.75 1 1 ,9 29.28 8 ,820.84 7 ,337.40Capital Work in Progress 8 5 6 3 ,8 8 7 .5 9 5,001.07 3,315.94 4,243.56 2 ,363.88In v e s t m e n t s - J VCs & Su b s i dia r y 5 7 8 2 ,6 2 3 .8 3 1,493.07 1 ,077.24 1 ,029.73 825.76

- Others 1 ,9 3 0 8 ,7 6 3 .3 9 12,703.40 5 ,759 .82 6 ,0 97.74 3,201.88Net Current Assets 9 0 0 4 ,0 8 6 .8 3 4,237.21 6,863.70 1,345.21 3 ,055.09Deferred Tax Liability (3 98 ) (1 ,8 07 .9 7) (1 ,603 .3 7) (1 ,595 .9 8) (1 ,4 20.90) (1 ,384.44 )

To t a l 7 ,2 3 8 3 2 ,8 6 0 .3 4 33,486.13 27,350.00 20,116.18 15,399.57

WHAT CORPORATION OWESNet Worth 2 ,5 4 6 1 1 ,5 5 7 .9 7 10 ,73 0.6 3 10 ,563.30 9 ,598 .64 8 ,735.74Share Capi ta l 7 5 3 3 9 .7 1 33 9.71 339.71 338.95 3 38 .94Share For fe i ture (0 ) (0 .7 0 ) (0 .70 ) (0 .70 ) - -Reserves 2 ,4 71 1 1 ,2 1 8 .9 6 10 ,391 .62 10,224.28 9,259.69 8 ,3 96.80Borrowings 4 ,6 9 2 2 1 ,3 0 2 .3 7 22,755.51 16,786.70 10,517.54 6 ,6 63.83

To t a l 7 ,2 3 8 3 2 ,8 6 0 .3 4 33,486.13 27 ,350 .00 20 ,116.18 15 ,399.57

PHYS ICAL Mill io n To n n e sCRUDE THRUPUT 1 5 . 7 6 15 .81 16 .77 1 6 .6 6 13 .8 2

- Mumbai Refinery 6 . 9 6 6.65 7 .36 7 .42 6.25

- Visakh Refinery 8 . 8 0 9.16 9 .41 9 .24 7.57PIPELINE THRUPUT 1 1 . 9 5 10.58 7 .83 6 .73 5.65

MARKET S ALES 2 6 . 2 7 25.39 24.47 21.69 19.42

N o t e s : 1 . P r e vi ou s y e a r f ig u r e s r e g r ou p e d / r e c la s s i fi e d wh e r e v e r n e c e s s a r y

2 . 1 US$ = Rs.45 .40 (Exchange Rate as on 31 .03 .2010)

FUND FLOW STATEMENTSources o f Funds :

Profit a fter Tax 2 8 7 1 ,3 0 1 .3 7 57 4 .9 8 1,1 34 .88 1 ,5 7 1 .1 7 4 0 5 .6 3Depreciat ion 2 5 6 1 ,1 6 4 .4 0 98 1 .2 9 85 0 .8 2 7 0 4 .0 0 6 9 0 .2 3LPG Deposits 1 1 4 5 1 5 .6 8 19 3 .9 8 18 9 .5 9 1 5 2 .5 5 1 2 4 .5 7Borrowings (Net) (2 8 0 ) (1 ,2 7 0 .1 9 ) 6 1 7 3 .4 6 6 ,3 0 1 .1 7 3 ,7 8 4 .3 8 4 ,3 2 2 .2 3Share Capi ta l - - - 0 .0 7 0 .0 1 0 .0 1Share Premium - - - 2 .0 5 0 .4 7 0 .3 9Redemption of Oil bonds 1 1 6 1 5 ,2 7 0 .2 7 9 2 3 8 .9 2 4 ,5 3 5 .0 0 1 ,9 5 0 .7 3 8 5 0 .0 0Receipt of Capital Grants from OIDB - - - - - 4 .9 4

Amortisation of Capital Grant receivedfrom OIDB (0 ) (0 .1 9 ) (0 .1 9 ) (0 .2 0 ) (0 .1 9 ) -Amortisation from General Reserveon account of Transitional Liab of AS-15R - - - (53 .31) - -Exchange Rate Variat ion on Restatmentof ECB of 2007-08 in line withtransitional provisions of AS-11 - - (1 9 9 .4 6 ) - - -Oil bonds recievable - - 2,033.99 3,448.45 - -Provision for Deferred Tax 4 5 2 0 4 . 6 0 7.39 175.08 36.46 9.69Adjustm ent on accou nt of sale/ deletion of Asset s & Provision for diminu tion in Investm ent s 1 5 5 7 0 3 . 7 3 (7 5 .2 8) 62.42 99.30 1.66

To t a l 1 7 3 8 7 , 8 8 9 .6 7 18,929.09 16,646.02 8,298.88 6,409.35



13


2 0 0 9 -1 0 2 0 0 9 -1 0 2 0 0 8 -0 9 2 0 0 7 -0 8 2 0 0 6 -0 7 2 0 0 5 -0 6

US $ Million Rs . / Cro re s Rs . / Cro re s

Uti l isa t ion of Funds :

Dividend 9 0 4 0 6 . 3 5 177.78 101.59 610.80 101.80

Tax on Distributed Profits 1 5 6 7 .4 9 30.21 17.26 97.75 14.28

Capital Expenditure 8 1 8 3 , 7 1 2 . 6 8 2,372.80 3,077.16 4,096.30 2,694.43

Working capital : Increas e/ (Decrease) 3 1 1 4 1 . 7 4 (1 ,999.74) 5 ,497.52 (1 ,607.02) 456.75

Investmen t - JVCs (Including Advance

towards Equity & Share Application

Money pending Allotment) 3 3 6 1 , 5 2 7 . 4 1 206.82 249.49 171.16 21.29

Investment Oil Bonds 4 4 8 2 , 0 3 3 . 9 9 18,141.22 7,703.00 4,929.89 3,120.80

To t a l 1 , 7 3 8 7 ,8 8 9 . 6 7 18,929.09 16,646.02 8,298.88 6,409.35

CONTRIBUTION TO EXCHEQUER

Excise Du ty 1 , 5 6 9 7 ,1 2 1 . 1 4 6,463.49 7,422.32 7,349.34 5,852.34

Customs Duty 1 2 4 5 6 4 . 7 4 2,094.37 3,256.14 2,575.38 1,423.52

Sales Tax 2 , 7 7 2 1 2 ,5 8 3 . 8 2 12,352.48 10,964.99 9,416.65 8,811.86

Service Tax 1 2 5 5 .4 1 51.13 38.07 23.57 11.13

Income Tax 8 4 3 8 2 . 3 2 11.86 61.17 72.29 (141.49)Fringe Benefit Tax 0 0 . 0 5 17.00 10.64 9.82 11.07

Others * 9 9 4 4 8 . 5 4 369.42 602.86 510.39 469.13

To t a l 4 , 6 6 0 2 1 ,1 5 6 . 0 2 21,359.75 22,356.19 19,957.44 16,437.56

* Figures for Previous Year regrouped

RATIOS

Gross Profit / Sales ( % ) 3 . 6 5 2.87 2.43 3.19 1.50

Net Profit/ Sales ( % ) 1 . 1 3 0.44 1.01 1.62 0.53

Earnings Per Share (Rs.) 3 8 . 4 3 16.98 33.48 46.35 11.97

Cash Earnings Per Share (Rs.) 7 8 . 8 6 46.92 64.55 68.20 32.62

Average Sales/ Emp loyee (Rs. Crores) 9 . 6 2 10.35 9.48 8.40 6.87

Average Net Profit/ Emp loyee (Rs. Crores) 0 . 1 1 0.05 0.11 0.14 0.04

Debt Equ ity Ratio (Long term debt to equity) 0 . 3 0 : 1 0.30:1 0.26:1 0.24:1 0.13:1

MANPOWER (NOs . ) 1 1 , 2 9 1 11,246 10,949 10,891 10,778

How Value is Added:

I n c o m e :

Sales / Income from Operat ions 2 5 , 3 0 6 1 14 ,8 88 .6 3 131,802.65 112,098.27 96,918.15 76,920.26

Add: Increas e/ (Decrease) in Inventory 7 1 6 3 , 2 4 9 . 9 6 (1 ,836.78) 2 ,359.59 243.55 1,408.96

2 6 , 0 2 2 1 18 ,1 38 .5 9 129,965.87 114,457.86 97,161.70 78,329.23

Cost o f Raw mater ia ls :

Raw Material Consumption 8 , 3 0 9 3 7 ,7 2 2 . 8 9 40,995.22 38,024.65 35,816.79 25,450.29

Purchase for resale 1 3 , 8 0 6 6 2 ,6 7 7 . 8 2 73,394.61 62,205.94 46,850.22 42,178.12

Packages 3 0 1 3 6 . 3 9 127.12 111.91 105.11 95.99

Stores & Spares 3 8 1 7 4 . 2 7 121.36 93.86 103.57 85.86

Utilities 1 0 4 4 7 3 . 7 1 192.19 190.82 160.58 129.60

2 2 , 2 8 7 1 01 ,1 85 .0 8 114,830.51 100,627.18 83,036.27 67,939.86

Dut ie s applic able t o pro duc t s : 1 , 6 7 1 7 ,5 8 8 . 2 5 6,867.83 7,785.28 7,916.24 6,191.23

To t al Value Adde d: 2 , 0 6 3 9 ,3 6 5 . 2 6 8,267.54 6,045.40 6,209.19 4,198.13

How Value is Dis tr ibuted:

Ope rat in g & Se rvic e Co s t s 7 8 2 3 , 5 5 1 . 2 4 3,355.65 2,448.56 2,385.63 2,405.43

Em plo y e e s ’ Be n e fit s 3 5 6 1 , 6 1 7 . 3 2 1,135.53 871.26 729.42 641.49

Providers of Capital

Interest on borrowings 1 9 9 9 0 3 . 7 5 2,082.84 766.10 422.98 175.88

Dividend 1 0 4 4 7 3 . 8 4 207.99 118.85 708.55 116.08

In c o m e Tax/ Frin ge Be n e fit Tax 1 8 1 8 2 3 . 6 6 137.25 (26.21) 395.99 (12 0.53)

R e -d e p lo y me n t in B u s in e s s

Retained Profi t 1 8 2 8 2 7 . 5 3 366.97 1,016.03 862.62 289.55

Depreciat ion 2 5 7 1 , 1 6 7 . 9 2 981.29 850.82 704.00 690.23

To t a l Value Dis t ribu t e d 2 , 0 6 3 9 ,3 6 5 .2 6 8,267.54 6,045.40 6,209.19 4,198.13

Performance Profile



14


2 0 0 9 -1 0 2 0 0 8 -0 9 2 0 0 7 -0 8 2 0 0 6 -0 7 2 0 0 5 -0 6

S ALES VOLUME* ’0 0 0 To n n e s

L ig h t D is t i l l a te s

Liquified Petroleum Gas 3 , 3 1 7 . 6 6 3,024.78 2,872.13 2,650.51 2,526.37

N a p h t h a 1 , 3 4 1 . 8 5 2,102.40 2,295.97 2,223.37 1,876.85

Motor Spirit 3 , 2 4 7 . 1 4 2,843.57 2,525.20 2,377.89 2,078.61

H e x a n e 1 6 . 5 8 27.81 35.09 29.40 27.40

Propylene 2 3 . 2 1 31.48 35.51 33.37 31.75

S u b-t o t a l 7 , 9 4 6 . 4 4 8,030.04 7,763.90 7,314.54 6,540.98

Middle Dis t i l la tes

Mineral Turpentine Oil 5 9 . 8 3 53.59 58.42 50.06 41.35

Aviat ion Turbine Fuel 7 4 4 . 1 2 682.12 738.16 596.83 504.18

Superior Kerosene Oil 1 , 7 9 8 . 4 8 1,769.03 1,790.84 1,793.02 1,732.63

High Speed Diesel 1 1 , 7 4 7 . 1 3 10,807.11 9,551.72 7,907.08 7,353.38

J B O / WO 1 . 5 4 1.69 3.47 3.57 4.83

Light Diesel Oil 1 2 1 . 0 9 130.88 147.51 154.74 196.27

S u b-t o t a l 1 4 , 4 7 2 . 1 9 13,444.43 12,290.12 10,505.31 9,832.64

Lube s & Gre as e s 4 6 9 . 6 7 337.37 491.62 320.23 287.84

Heavy Ends

Furnace Oi l 1 , 7 7 8 . 0 1 2,037.79 2,472.75 2,256.13 1,685.15

Low Sulphur Heavy Stock 3 9 3 . 4 6 449.86 325.56 351.15 388.03

Bi t u m e n 9 0 6 . 4 1 880.11 909.78 756.54 543.48

O t h e r s 3 0 6 . 1 2 213.66 211.16 181.62 139.60

S u b-t o t a l 3 , 3 8 4 . 0 0 3,581.41 3,919.23 3,545.44 2,756.26

To t a l 2 6 , 2 7 2 . 3 0 25,393.26 24,464.88 21,685.52 19,417.72

* Including Exports

MARKETING NETWORK

Regional Offices 1 0 1 90 91 86 85

Ter m i n a l s / In s t a l l a t io n s / TOPs 3 1 31 42 37 37

Depots (including Exclusive Lube Depots) 9 2 100 93 93 92

LPG Bottling Plants 4 4 43 43 42 41

ASFs 3 1 21 16 13 13

Retai l Outlets 9 1 2 7 8539 8329 7909 7313

SKO/ LDO Dealers 1 6 3 8 1638 1648 1648 1648

LPG Distributors 2 4 0 4 2250 2232 2238 2202

LPG Cus tomers (in crores) 2 . 9 2 2.70 2.52 2.39 2.28

PRODUCTION VOLUME - MUMBAI REFINERY ’0 0 0 To n n e s

Lig h t D is t i l l a te s

Liquified Petroleum Gas 2 5 7 . 8 0 226.30 250.98 250.80 193.00

N a p h t h a 5 4 9 . 3 0 742.20 927.75 936.00 714.90

Motor Spirit 7 2 7 . 5 0 374.40 413.51 418.20 280.40

H e x a n e 1 7 . 6 0 26.10 36.69 27.00 35.30

Solvent 1425 6 . 1 0 5.20 9.10 7.80 6.10

S u b-t o t a l 1 , 5 5 8 . 3 0 1,374.20 1,638.03 1,639.80 1,229.70


Mineral Turpentine Oil 6 2 . 9 0 54.90 60.18 50.60 44.60

Aviat ion Turbine Fuel 5 8 0 . 0 0 580.96 610.62 659.90 571.40

Superior Kerosene Oil 1 4 2 . 1 0 155.30 152.72 239.00 279.40

High Speed Diesel 2 , 2 1 1 . 4 0 2,050.65 2,133.20 1,988.10 1,689.80

Light Diesel Oil 4 6 . 2 0 59.30 87.71 108.30 174.40

S u b-t o t a l 3 , 0 4 2 . 6 0 2,901.11 3,044.43 3,045.90 2,759.60

LOBS / T OBS 3 4 7 . 0 0 312.40 351.36 338.10 279.70

Performance Profile



15


Performance Profile

2 0 0 9 -1 0 2 0 0 8 -0 9 2 0 0 7 -0 8 2 0 0 6 -0 7 2 0 0 5 -0 6

’0 0 0 T o n n e s

Heavy Ends

Furnace Oi l 8 5 7 . 8 0 854.80 1,003.93 1,256.90 976.60

Low Sulphur Heavy Stock 6 8 . 1 0 129.20 138.06 111.20 96.40

Bi t u m e n 5 5 9 . 6 0 551.50 631.55 499.20 401.20

Others (Including input of BH Gas) ( 1 9 . 9 0 ) 81.50 98.86 73.40 55.80

S u b-t o t a l 1 ,4 6 5 . 6 0 1,617.00 1,872.40 1,940.70 1,530.00

To t a l 6 ,4 1 3 . 5 0 6,204.71 6,906.22 6,964.50 5,799.00

Intermediate Stock Different ial 1 9 . 5 0 5.20 (55 .08 ) (16 .00 ) 27.10

Fuel & Loss 5 3 2 . 1 0 441.80 504.25 470.30 422.50

To t a l 6 ,9 6 5 . 1 0 6,651.71 7,355.39 7,418.80 6,248.60

PRODUCTION VOLUME - VISAKH REFINERY ’0 0 0 To n n e s

Lig h t D is t i l l a te s

Liquified Petroleum Gas 3 1 0 . 0 5 363.92 369.09 343.60 273.76N a p h t h a 7 3 4 . 0 4 1,148.36 1,264.23 1,195.20 928.74

Motor Spirit 9 3 2 . 1 6 779.36 827.79 811.20 661.81

Propylene 2 3 . 1 5 31.59 34.94 33.20 32.92

S u b-t o t a l 1 ,9 9 9 . 4 0 2,323.23 2,496.05 2,383.20 1,897.23


Mineral Turpentine Oil - (0 .0 1) - - -

Aviat ion Turbine Fuel 7 9 . 8 7 57.67 41.35 13.80 39.40

Superior Kerosene Oil 7 2 0 . 3 3 832.25 897.09 1,016.00 824.17

High Speed Diesel 3 , 4 4 1 . 3 9 3,610.71 3,586.81 3,728.90 2,975.37

J B O / WO 1 . 8 3 1.75 4.23 3.80 3.62

CO - - 4.96 - 28.05

Light Diesel Oil 7 0 . 7 3 104.32 90.77 70.90 63.71

S u b-t o t a l 4 ,3 1 4 . 1 5 4,606.69 4,625.21 4,833.40 3,934.32Heavy Ends

Furnace Oi l 1 , 0 3 3 . 7 4 1,175.72 1,295.07 989.50 839.31

Low Sulphur Heavy Stock 3 4 0 . 3 3 186.14 153.52 221.00 290.97

Bi t u m e n 3 2 8 . 5 1 337.56 307.54 230.80 156.75

O t h e r s 1 0 1 . 4 1 24.86 31.92 20.90 8.78

S u b-t o t a l 1 ,8 0 3 . 9 9 1,724.28 1,788.05 1,462.20 1,295.81

To t a l 8 ,1 1 7 . 5 4 8,654.20 8,909.31 8,678.80 7,127.36

Intermediate Stock Different ial 8 3 . 0 5 (20 .12 ) (25 .44 ) 29.30 (6 .6 6)

Fuel & Loss 5 9 5 . 8 7 520.76 525.61 536.40 453.60

To t a l 8 ,7 9 6 . 4 6 9,154.84 9,409.48 9,244.50 7,574.30



16


Directors’ Report

TO THE MEMBERS

On behalf of the Board of Directors , I have great p leasure in presenting to you the f if ty eighth Annual Repor t onth e wo rk in g o f th e Co mp an y , to g e th er w i th th e Au d i ted Acco u n ts fo r th e y ear en d ed 3 1 s t M arch 2 0 1 0 .

HIGHLIGHTS

(Rs. Crores )

2 0 0 9 - 1 0 2 0 0 8 - 0 9

FINANCIAL

S a l e s / In c o m e f r om O p e r a t i on s 1 , 1 4 , 8 8 8 . 6 3 1 , 3 1 , 8 0 2 . 6 5

Pro f i t b e fo re Dep rec ia t io n , I n te r es t an d Tax 4 , 1 9 3 . 1 8 3 , 7 7 6 . 3 6

D e p r e c i a t i o n ( 1 , 1 6 4 . 4 0 ) (9 8 1 .2 9 )

I n t e r e s t ( 9 0 3 . 7 5 ) (2 ,0 8 2 .8 4 )

Prof i t before Tax 2 , 1 2 5 . 0 3 7 1 2 . 2 3

Pro v is io n fo r Tax

C u r r e n t T a x ( 5 6 1 . 5 0 ) (2 2 7 .6 0 )

Defer r ed Tax ( 2 0 4 . 6 1 ) (3 4 .2 9 ) Tax at io n o f ea r l ie r y ear s wr i t ten b ack ( 5 7 . 5 1 ) 1 1 1 . 7 7

Defer r ed Tax wr i t ten b ack - 2 6 . 9 0

Fr in g e Ben ef i t Tax ( 0 . 0 5 ) (1 4 .0 3 )

Prof i t af ter Tax 1 , 3 0 1 . 3 7 5 7 4 . 9 8

Balan ce b ro u g h t fo rward f ro m p rev io u s y ear 8 , 1 0 4 . 1 6 7 , 7 9 4 . 6 7

A p p r o p r i a t i o n s :

G e n e r a l R e s e r v e ( 1 3 0 . 1 4 ) (5 7 .5 0 )

Deb en tu re Red emp t io n Reserv e ( 8 6 . 4 0 ) -

P r o p o s e d D i v i d e n d ( 4 0 6 . 3 5 ) (1 7 7 .7 8 )

Tax o n d is t r ib u ted p ro f i t s ( 6 7 . 4 9 ) (3 0 .2 1 )

Balan ce ca r r ied fo rward 8 7 1 5 . 1 5 8 , 1 0 4 . 1 6

PHYSICAL PERFORMANCE (MMT)

M ark e t Sa les ( In c lu d in g ex p o r t s ) 2 6 . 2 7 2 5 . 3 9C r u d e T h r u p u t :

- Mu m b a i Refin ery 6 . 9 6 6 . 6 5

- Vis ak h Re fin er y 8 . 8 0 9 . 1 6

SHAREHOLDERS’ VALUE (Rupees)

E a r n i n g s p e r S h a r e 3 8 . 4 3 1 6 . 9 8

C a s h E a r n i n g s p e r S h a r e 7 8 . 8 6 4 6 . 9 7

Book Value per Share 3 4 1 . 3 2 3 1 6 . 8 8

DIVIDEND

Your Directors , after ta k ing in to account the financial resu lts of the Compan y dur ing th e year , ha ve recomm ended d ividend

of Rs. 12 per s ha re for the year 200 9-10 as against Rs. 5 .25 per sh are pa id for the year 2008 -09. The d iv idend for 2009-10,

including dividend tax provision will absorb Rs. 473.84 crores (2008-09: Rs. 207.99 crores).

SALES/ INCOME FROM OPERATIONS

Your Compa ny ha s a chieved sales / income from operations of Rs. 1 ,14 ,888.63 crores as comp ared to Rs.1 ,31 ,802.65crores in 2 008-09.

PROFIT

Your Compa ny ha s earn ed gross profi t o f Rs. 4 ,193.18 crores as against Rs. 3 ,776.36 crores in 2008-09 a nd p rofi t after tax

of Rs. 1 ,301.37 crores as compa red to Rs. 574.98 crores in 2008-09.

INTERNAL RESOURCES GENERATION

Th e In te rn a l Reso u rces g en era ted were Rs . 2 ,1 9 6 .5 3 c ro res as co mp ared to Rs . 1 ,3 8 2 .5 6 c ro res in 2 0 0 8 -0 9 .

CONTRIBUTION TO EXCHEQUER

Yo u r Co mp an y h as co n t r ib u ted a su m o f Rs . 2 1 ,1 5 6 .0 2 c ro res to th e ex ch eq u er b y way o f d u t ies an d tax es , as

co mp ared to Rs . 2 1 ,3 5 9 .7 5 c ro res in 2 0 0 8 -0 9 .



17


DIRECTORS’ RESPONSIBILITY STATEMENT

In terms of Section 217(2AA) of the Companies Act, 1956, your Directors s tate that:

(i) In the preparation of the Annu al Accoun ts , al l the applicable Accoun ting Standards have been followed along with

proper explanation relating to material departures.

(ii) The Company has selected su ch Accounting Policies and applied them consistently and m ade judgments 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 & Loss Account of the company for the year ended on that date.

(iii) The Company h as taken proper and sufficient care for the maintenan ce of adequate a ccoun ting records in a ccordance

with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and

detecting fraud and other irregularities.

(iv) These Accounts have been prepared on a going concern ba sis .

MEMORANDUM OF UNDERSTANDING (MOU) WITH GOVERNMENT OF INDIA

Your Corporation has been signing a Memorandum of Understanding (MOU) with the Ministry of Petroleum & Natural Gas.The performance of the Corporation of the year 2009-10 qualifies for “Excel l ent” rating basis self evaluation.

REFINERY PERFORMANCE

HPCL refineries processed a combined thruput of 15.76 MMT (15.81 MMT in 2008-09) against combined installed capacity

of 14.0 MMT by achieving 113% capacity utilization.HPCL refineries achieved overall MOU Excellent Rating with respect to production parameters viz. Crude thruput, Distillate

Yields and Specific Energy Consumption.

HPCL Refineries commissioned Clean Fuels Projects and Euro-IV MS production started prior to January 2010 as per Auto

Fuels Policy.

Gross refining margins of Mumbai Refinery averaged at US$ 2.80 per barrel as against US$ 6.11 per barrel for the year

2 0 0 8 -0 9 .

Gross refining margins of Visakh Refinery averaged at US$ 2.59 per barrel as against US$ 2.42 per barrel for the year

2 0 0 8 -0 9 .

Mumbai Ref inery:

During the year, Mumbai Refinery achieved crude thruput of 6.96 million tonnes as against 6.65 million tonnes achievedfor the year 2008-09. This crude thruput was higher than MOU target of 6.5 MMT. The capacity utilisation was 107%.

The Fuel and Loss at Mumbai Refinery was 7.64% during the year which is higher than last year of 6.64% on account of

commissioning new Green Fuel Emission Control Project.

Total Distillate yield (Adjusted for crude mix and Bitumen) at 71.8% was higher than MOU Excellent target of 68.6%.

Mumbai Refinery achieved the lowest ever Specific Energy Consumption (MBN) of 88.7 against MOU target of 98.0 for thecurrent year.

Naphtha was replaced with eco-friendly RLNG in Captive power plant to reduce own power generation cost to the tune of

Rs . 2 6 0 crores / an n u m .

Mumbai Refinery was the First Indian PSU refinery to commence BS-IV MS production facilities and first batch of BS-IV MS

was rolled out in January, 2010. In its continual effort to widen the crude basket, Mumbai Refinery processed 2 new

crudes, namely Iran Mix and Ravva crude.

During 2009-10, total 555 TMT Iran Mix and 107 TMT Ravva crude were processed.

In its endeavor to maximize profitability, Mumbai Refinery has processed more of heavier crudes like Basrah and Kuwait by

modifying CDU-I bottom section with high capacity “Flexitrays” during November, 2009.

Visakh Refinery :

During the year, Visakh Refinery achieved crude thruput of 8.80 million tonnes as against 9.16 million tonnes achieved for

the year 2008-09. This crude thruput was lower than MOU target of 9.1 MMT. The capacity utilisation was 117.3%.

The Fuel and Loss at Visakh Refinery was 6.77% during the year which is higher than last year of 5.69% on account of

commissioning new Clean Fuels Project.

Total Distillate yield (Adjusted for crude mix and Bitumen) at 73.5% is in line with MOU Excellent target.

Visakh Refinery achieved Specific Energy Consumption (MBN) of 91 against MOU target of 93 during the year.

In order to maximize prof i tab il i ty , Visakh Ref inery processed h igh v iscous and h igh res id y ield ing new crude called

Sooroosh Crude blended with IRAN Light. The refinery also processed high TAN Escravos blended crude.

Bitumen coastal loading facility was commissioned and 17 TMT was exported during the year.

The particulars with respect to Conservation of Energy, Technology Absorption, Foreign Exchange Earning & Outgo are

detailed in Annexure I.

Similar ly , par t icu lars relat ing to contro l of Pollu t ion and o ther in i t iat ives by Ref iner ies are l is ted in Annexure II

of Directors’ Report.

MARKETING PERFORMANCE

The market sales ( including expor ts) were 26 .27 mill ion tonnes as against 25 .39 mill ion tonnes recorded in 2008-09.

Directors’ Report



18


VIGILANCE

Vigilance Department in the current year has strived to emphasize in its activities, an environment of proactive vigilance,

the importance of transparency, adherence to professionalism and high standards in customer service and project execution.Vigilance Awareness Week was observed from 03.11.2009 to 07.11.2009 all over India, wherein, various competitionslike slogan, quiz, essay writing contests etc were organized among the employees.

INDUSTRIAL RELATIONSIndustrial Relations climate during the year 2009-10 continued to be harmonious across all locations.

The Competency Mapping and Development process was strengthened. 725 Officers attended Development Centers andIndividual Development Plans were drawn up and progress reviewed. Technical Competency Framework was developedfor the Exploration & Production business unit.

During the year, Gaurav awards were introduced to identify and recognize outstanding performance by Non-ManagementEmployees .

To enhance corporate governance, Whistle Blower Policy was adopted. Conduct, Discipline & Appeal Rules applicable toManagement Employees were also reviewed and amended.

OFFICIAL LANGUAGE IMPLEMENTATIONOfficial Language Implementation continued to receive utmost importance in the Corporation.

SC / ST LIAISONThe overall represent ation of SC / ST employees in th e Corporation is 27.69%. During th e year, your Corporat ion h as ca rried

out a n um ber of Welfare / Developmen t activities su ch as primar y education, scholarsh ips, drinking water facilities, healthcare, income genera ting schem es / vocational tra ining, rehabilitation of person s with disa bilities & other welfare a ctivities.

CORPORATE GOVERNANCEThe Corporation has complied with the requirements of Corporate Governance with the exception of appoin tment of Independent Directors to the level of 50% of the to tal s trength of the Board . This matter is being pursued with theadministrative Ministry and is under their active consideration. The details in this regard form part of this Annual Report.

MANAGEMENT DISCUSSION & ANALYSIS REPORTThis report has been given separately.

PARTICULARS OF EMPLOYEESA statement provid ing the information as required under Section 217 (2A) of the Companies Act, 1956 is annexedherewith (Annexure III). The det ails regarding th e nu mb er of women em ployee’s vis-à-vis th e total nu mb er of emp loyeesin each group is also annexed (Annexure IV).

DIRECTORSHPCL Board presen tly comprised of 10 Directors. The whole time Directors are S/ Shri Arun Balakrishn an , Chairma n &Managing Director, S. Roy Choudhury, Director-Marketing, V. Viziasaradhi, Director-Human Resources, B. Mukherjee,Director-Finance and K. Murali, Director-Refineries.

The Part-time directors a re S/ Shri P.K. Sinha, L.N. Gupta , P.V. Rajaram an , Prof. Prakas h G. Apte an d Dr. Gitesh K. Shah.The following are the details of their appointment:-

Shr i P .K. Sinha, Addit ional Secretary and Financial Adviser , MOP&NG who jo ined HPCL Board on March 1 ,2006 continues to be the Ex-Officio Part-time Director of th e Corporation. Sh ri L.N. Gup ta, J oint Secreta ry (Refineries),MOP & NG who jo ined HPCL Board on June 25 , 2008 continues to be the Ex-Officio Part-time Director of theCorporation.

Dr. Gitesh K. Shah , joined HPCL Board a s a Part-time Non-Official Director on Decem ber 7, 200 9. S/ Shri P.V.Rajaram an an d Prof. P.G. Apte who joined HPCL Board on J uly 22, 200 7 continu e to be th e Non-Official Directorsof the Corporation.

S/ Shri Arun Balakrishn an (Chairman & Mana ging Director), S. Roy Choudh ury (Director-Marketing), V. Vizias ara dhi(Director-Human Resources), B. Mukherjee (Director-Finance) and K. Murali (Director – Refineries) continue aswhole Time Directors of the Corporation.

As per th e provisions of Section 256 of the Compa nies Act, 1956 , S/ Shr i P.K. Sinha , L.N. Gup ta a nd B. Mukh erjee whoretire by rotation at next Annual General Meeting and are eligible for reappointment.

ACKNOWLEDGEMENTSThe Directors gratefully acknowledge the valuable guidance and support extended by the Government of India, Ministry of Petroleum and Natural Gas, other Ministries, Petroleum Planning & Analysis Cell and the State Governments.

The Directors also acknowledge the contribution made by the large number of dealers and distributors spread all over thecountry towards improving the service to our valued customers as well as for the overall performance of the Company.

The employees of the Company have continued to display their total commitment towards the pursuit of excellence. YourDirectors take this opportunity to place on record their appreciation for the valuable contribution made by the employees andlook forward to their services with zeal and dedication in the years ahead to enable the Company to scale even greater heights.

Your Directors are thankful to the shareholders for their faith and continued support in the endeavors of the Company.

For and on behalf of the Board of Directors

ARUN BALAKRISHNAN


May 26, 2010

Directors’ Report



19


Annexure to Directors’ Report

Annexure- I

P a r t i c u l a r s w i t h r e s p e c t t o C o n s e r v a t i o n o f E n e r g y , T e c h n o l o g y A b s o r p t i o n a n d F o r e i g n E x c h a n g e E a r n i n g /

Outgo as per Companies (Disclosure of Par t icu lars in the Repor t of Board of Directors) Rules , 1988.

ENERGY CONSERVATION & TECHNOLOGY ABSORPTION

I) CONSERVATION OF ENERGY

a) Energy Conservat ion me asures undertaken and Addit i onal Inves tment / proposal s for implementa t ion

on conservat ion o f energy

Mumba i and Visakh Refiner ies a ccorded h ighest pr ior i ty to energy conservation an d h ave un der taken several

Encon measures by operational improvements and implementing of Encon pro jects . Var ious Encon measures

un der taken dur ing 2009-10 a re as fo llows:

M u m b a i R e f i n e r y

1 ) M u mb ai Refin ery ach ieved th e lo wes t ev er Sp ec i fic En erg y Co n su mp t ion (MBN) o f 8 8 .7 d u r in g th e y ear

as against 89 .0 of las t year .

2 ) S ta r ted r ece ivin g Rel iq u efied Natu ra l Gas (RLNG) th ro u g h GAIL r ece ivin g s ta t io n / p ip e lin e as a r esu l t o f

which al l GTGs and o ther furnaces were switched to Gas. This has helped in reduction of emission levels

and saving of internal fuel cost of Refinery.

3 ) Ac h i eve d 1 0 0 % G a s fi r in g i n G TG ’s w h i c h h a s r e d u c e d s p e c ifi c en e r g y c o n s u m p t i on f r om 0 . 4 0 t o 0 . 3 5 .

4 ) C a r r i e d o u t o n l in e c h e m i c a l c l ea n i n g of fu r n a c e s t o b r i n g d ow n t h e B r i d g e W a ll Te m p e r a t u r e (B WT ),S tack temp era tu re an d to imp ro v e fu rn ace e f f ic ien cy .

5 ) Im p r o ve d D HD S fu r n a c e p r e h e a t s t e m p e r a t u r e b y in s t a l li n g t h e a d d i t io n a l e xc h a n g er i n r a w Di es e l p re

h e a t c i r c u i t .

6 ) C o m m i s s i o n e d P r o p a n e G a s r e c o ve r y s ys t e m i n Lu b e R e f in e r y , fi r s t s t a g e (w a x r e c ov er y c ir c u i t ) b y in

h o u s e m o d i fi c a t i on .

7 ) C a r r ie d o u t Le a k D e t e c t io n S u r ve y fo r fu g i ti ve e m i s s i on b e n c h m a r k i n g in R e fi n e r y p r o ce s s u n i t s . Le a k s

i d e n t i f i e d a n d b e i n g a t t e n d e d .

8 ) O b s e r ve d Oi l & G a s C on s e r v a t io n F or t n i gh t fr o m 1 5 th – 3 1 st J a n u a r y , 2 0 1 0 t o g e n e r a t e m a s s a w a r e n e s s

amo n g s t th e p u b l ic fo r co n serv a t io n o f p e t ro leu m p ro d u c ts . Du r in g th e fo r tn ig h t , s ev era l ac t iv i t ies were

o rg an ized in s id e & o u ts id e th e Ref in ery .

Addit ional proposals for implement at ion on cons ervat ion of ene rgy:

1 ) Replacemen t o f Rota ry Air P re -h ea te r w ith S ta t io n ary in FRE-CDU & Preh ea t au g men ta t io n .

2) Conversion of na tura l draf t furn ace to balan ce draft in FRE-VDU & LR-VDU.

3 ) U t il iz a t io n o f va c u u m o ff g a s e s fr o m F R/ F R E / LR VP S .

4 ) Reco very of th e f la r e g as a t LR an d u t i li za t ion o f gas in fu rn aces .5 ) Prov is ion o f PRDS sy s tem in th e L ig h t En d Un i t to op t imize th e s team co n su m p t ion in Dep en tan ise r an d

D e h a x a n i s e r a n d t w o n u m b e r D e s u p e r h e a t e r s f o r N a p h t h a s t a b i l i z e r s .

6 ) In s ta l la t ion o f Desu p erh ea te r to r ed u ce th e s team temp era tu re o f MP s team h ead er b y qu en ch in g th e b o iler feed

water at LR which wil l produce th e addit ional s team .

7 ) Imp lemen ta t ion o f seco n d s ta g e Pro p an e g as r ecov ery sy s tem in Lu b e Refin ery (DWO reco very c ir cu i t ).

8) Secondary seals/ guide pole sleeves on 13 nos of Naphtha/ MS tanks, to reduce VOC emission through tan k farm.

9 ) Ac h i e vi n g 1 0 0 % G a s fi r in g fa c i li t ie s i n F u r n a c e s & B oi le r s .

S a v i n g e n v i s a g e d d u e t o a d d i t i o n a l e n e r g y c o n s e r v a t i o n p r o p o s a l p l a n n e d i n f u t u r e i s 4 4 8 3 7 S R F T

eq u iv a len t to Rs . 9 8 Cro res p er an n u m.

Vi s a k h R e f i n e r y

1) Carr ied out per iodic s team leak/ s team trap survey dur ing the year by engaging external agency using u ltrasonic

detector and v isual methods. The repairs of identif ied leaks were ar res ted .

2) Carried out compressed air leak su rvey by appointing external agency by using ultrasonic detector. The repairs

of identified leaks were attended.

3) Carr ied out online furna ce cleaning by using solid spray result ing in reduced s tack temperatures and increasedheater ef f iciencies .

4) Commissioned new CO boiler FD fan tu rb ine to motor au to cut in facili ty for continuou s run ning of turb ine

in place of motor, thereby avoiding venting of turbine steam.

5) Commissioned Demulsifier injection facility to crude receipt line to redu ce sediment (BS&W) to crude feeding units.

6) Commissioned Antifoulant chem ical injection facilities to SR preheat exchanger in CDU-3 to reduce fouling of

e x c h a n g e r s .

7) Identified fouled preheat exchangers by Heat 4N software and cleaning was car r ied out for sustain ing preheat

temperature in CDUs.

8) Commissioned Automa tic blow down facility for steam dru m in Hydrogen u nit resulting in energy saving due to

controlled blow down.



20


9 ) Oil an d Gas co n serva t ion for tn igh t was o b served in V isak h Refin ery fro m 1 5 th -3 1 st Jan u ary , 2 0 1 0 . Var io u smass awareness activities were carried out on the occasion amongst the public for conservation of petroleum

produ cts . Du r ing the for tn ight , several act iv it ies l ike Fu rna ces/ boilers ef ficiency , insu lat ion effectivenes s ,Encon s logan contest in English , Hindi & Telugu were organized inside & outs ide the Ref inery .

A d d i t i o n a l p r o p o s a l s f o r i m p l e m e n t a t i o n o n c o n s e r v a t i o n o f e n e r g y :1 ) Replacemen t o f s tack d amp er s for 1 1 -F-0 1 & 1 2 -F-01 w ith m u l t ip le lea f d amp er s .2) Addit ion of convection s ection tu bes for 11-F-01 & 12-F-01 to improve efficiency to 90 .20% & 90.70% from

88% respectively .3 ) Co n d en s a te r eco very sy s tem in CDU-II , II I, FCCU-I , I I.4 ) F la r e ga s r ec ove ry.5 ) Was te h ea t r eco very fro m s lop cu t o f CDU-II an d CDU-III in s team g en era to r s .6 ) S u p p le m e n t a ry fir in g in H RS G s.7 ) R e d u c e ex c es s o x yg en i n D HD S h e a t e r (fr o m 6 % t o 3 % ).8 ) Imp lemen t au to mat ic a i r / fu e l r a t io co n t ro l (fo r 1 1 -F-0 1 & 4 2 -F-0 1 ).9 ) Au t o m a t i c c on t r o l s y s t e m t o m i n i m iz e LP G va p o r iz a t io n .

Due to the above energy conservation measures, the savings will be around 15078 SRFT per year resulting inequivalent monetary gain of approximately Rs.34 .86 Crores per year .

b) Impact of above on energy conservation measures and consequent impact on cost of production of goods.Ref in er ies es t imated en erg y sav in g f ro m v ar io u s ENCON measu res u n d er tak en d u r in g th e y ear 2 0 0 9 -1 0is as fo l lows:M u mb ai Refin ery : Ap p ro x imate ly 1 9 9 4 0 S RFT, wh ich i s eq u iva len t t o Rs . 4 4 c ro res / y ear .Visak h Refin ery : Ap p ro x imate ly 3 6 4 7 SRFT, wh ich i s eq u iva len t t o Rs . 8 .5 0 Cro res / y ear .

c ) To t a l e n e r gy c o n s u m p t i on a n d e n e rg y c o n s u m pt i o n pe r un i t o f p ro d u c t io n :Please refer Form-A of the Annexure I to the Directors Repor t .

II) TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATIONa) Effo r t s mad e to ward s tech n o log y ab so rp t io n , ad ap ta t io n & in n o va t io n in forma t ion i s given in Form-B of

the Annexure I to the Directors Reportb) Im p o r t e d Te c h n o lo gy (Im p o r t e d d u r in g la s t 5 y ea r s )

Te c h n o lo gy Im po rt e d Ye ar o f Wh e t h e r fu l l y If n o t abs orbe d,Im p ort abs orbe d o r n ot Re as o n s

M u m b a i R e f i n e r yIs om e r is a t ion Un it 2 0 0 4 No Project is u n d er com m is s ion in gPr im e G+ Un it 2 0 0 4 Ye sCon t in u ou s Ca t a lyt ic Rea ct or -CCR 2 0 0 4 Ye sF lu id ized Ca t a lyt ic Cr a ck in g Un it (New) 2 0 0 4 No Project is u n d er im p lem en ta t ion

F lu e Ga s Des u lp h u r iza t ion 2 0 0 5 No Project is u n d er im p lem en t a t ionLu b e Is o-Dewa xin g Un it 2 0 0 6 No Project is u n d er im p lem en t a t ionDies el Hyd r o Tr ea t e r (DHT) 2 0 0 8 No Project is u n d er im p lem en t a t ion

V is a k h R e f i n e r yIs om er is a t ion Un it 2 0 0 4 No Pla n t u n d e r com m is s ion in gCon t in u ou s Ca t a lyt ic Rea ct or -CCR 2 0 0 4 Ye sPr im e G+ Un it 2 0 0 4 Ye sF lu id ized Ca t a lyt ic Cr a ck in g Un it (Reva m p ) 2 0 0 4 No Pla n t u n d er con s t r u c t ionS u lfu r Recover y Un it 2 0 0 5 Ye sDies el Hyd ro De-s u lfu ris a t ion Un it 2 n d Rea ctor 2 00 5 Ye sAPC b y M/ s Hon ey Well-RMPCT 2 0 0 5 Ye sOn lin e Cle a n in g of He a t e r s 2 0 0 6 Ye sUse Of Regen Flu e Gas Su lfu r Redu ction Additive 2 00 6 Ye sNew ca ta lys t in FCCU-II (UOP) to im prove LPG yield 2 0 0 7 Ye sNew ZSM-5 additive in FCCU-I to improvep r op ylen e yield s a n d CRN oct a n e 2 0 0 7 Ye sNew type Nozzles in Wash Oil Dis tr ibutor inVa cu u m colu m n (CDU-I) 2 0 0 8 Ye sRefractro type Skin Thermocouples in Furnaces(CDU-I) 2 0 0 8 Ye sDies el Hyd r o Tr ea t e r (DHT) 2 0 0 8 No Project is u n d er im p lem en t a t ion

III) FOREIGN EXCHANGE EARNINGS AND OUTGOa ) Ac t ivi ti es r el a t in g t o e xp o r ts :

Var io u s in i t ia t iv es h av e b een tak en to in cr ease ex p o r t s an d fo r d ev e lo p men t o f n ew Ex p o r t mark e ts f o rproducts and serv ices . Effor ts are on to access in ternational markets and to tap expor t potential for f reet r a d e p r o d u c t s a n d l u b r i c a n t s .

b) To ta l F or eign E x ch a n g e u s e d a n d ea r n e d:Please refer Notes to Accounts – Schedule 20B, Note 17 F, G, H & I .




21


Form A

FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY

MUMBAI REFINERY

2 0 0 9 - 1 0 2 0 0 8 - 0 9

(A) P o we r an d F u e l Co n s u m p t io n1 (a ) E le c t ri c it y Pu rc h a s e d

Units (Mill ion KWH) 1 3 2 . 6 1 8 6 . 1 9Tota l Amo u n t (Rs . / Cro res ) 7 1 . 4 6 5 0 . 5 4Rate Per Un i t (Ex c lu d in g d ema n d ch a rg es ) (Rs . / KWH) 4 . 8 6 5 . 1 2M a xi m u m D e m a n d C h a r g e s (R s . / C r o re s ) 7 . 0 1 6 . 4 2

(b ) Ow n Ge n e ra t io nTh r o u g h S t e a m T u r b i n e / G e n e r a t o rUnits (Mill ion KWH) 2 9 8 . 1 5 2 5 9 . 5 1Un i t s p er to n n e o f f u e l 2 6 3 6 . 6 7 2 4 9 9 . 5 7Co s t p er u n i t (Rs . / KWH) 2 . 2 0 8 . 0 4

2 F urn ac e Oi l / Li qu id fu e l (LS HS / HS D)Q u a n t i t y ( T h o u s a n d t o n n e s ) 1 6 8 . 1 5 1 3 8 . 5 6

Tota l amo u n t (Rs . / Cro res ) 3 6 8 . 2 1 3 1 7 . 8 9Av erag e r a te (Rs . / to n n e) 2 1 8 9 8 . 0 0 2 2 9 4 3 . 0 03 Ot h er / In t ern al Ge n e ra ti on :

i . Na p h t h aQ u a n t i t y ( T h o u s a n d t o n n e s ) 2 4 . 0 0 1 0 8 . 7 6

Tota l amo u n t (Rs . / Cro res ) 7 0 . 5 5 3 4 9 . 1 7Av erag e r a te (Rs . / to n n e) 2 9 3 9 4 . 0 0 3 2 1 0 4 . 0 0

i i . LP GQ u a n t i t y ( T h o u s a n d t o n n e s ) 8 . 6 3 8 . 0 7Tota l amo u n t (Rs . / Cro res ) 2 3 . 7 0 2 6 . 5 4Av erag e r a te (Rs . / to n n e) 2 7 4 6 7 . 0 0 3 2 8 8 1 . 0 0

i i i . R e fi n e ry Ga sQ u a n t i t y ( T h o u s a n d t o n n e s ) 7 1 . 9 4 7 0 . 2 4Tota l amo u n t (Rs . / Cro res ) 1 5 7 . 5 3 1 6 1 . 1 5Av erag e r a te (Rs . / to n n e) 2 1 8 9 8 . 0 0 2 2 9 4 3 . 0 0

i v . BH GasQ u a n t i t y ( T h o u s a n d t o n n e s ) 8 . 0 3 1 0 . 8 8

Tota l amo u n t (Rs . / Cro res ) 6 . 4 6 9 . 5 4Av erag e r a te (Rs . / to n n e) 8 0 4 3 . 0 0 8 7 7 1 . 0 0

v . R LN GQ u a n t i t y ( T h o u s a n d t o n n e s ) 1 2 9 . 5 1 -Tota l amo u n t (Rs . / Cro res ) 2 5 2 . 4 0 -Av erag e r a te (Rs . / to n n e) 1 9 4 8 9 . 0 0 -

v i . CokeQ u a n t i t y ( T h o u s a n d t o n n e s ) 3 4 . 5 0 3 2 . 3 7

Tota l amo u n t (Rs . / Cro res ) 7 5 . 5 5 7 4 . 2 7

Av erag e r a te (Rs . / to n n e) 2 1 8 9 8 . 0 0 2 2 9 4 3 . 0 0

(B ) Co n s u m p t i o n p e r Un i t o f P ro d u c t i o nElec t r ic ity (KWH/ Ton n e o f Cru d e) 6 1 . 8 5 5 1 . 9 7

Liq u id Fu e l (Ton / Th o u sa n d To n n es o f Cru d e) 2 7 . 5 9 3 7 . 1 8

Fu e l Gas (Ton / Th o u sa n d To n n es o f Cru d e) 1 2 . 7 2 1 3 . 4 1C o k e (T on / T h ou s a n d To n n e s o f C r u d e ) 4 . 9 5 4 . 8 7

VISAKH REFINERY

(A) P o we r a n d Fu e l Co n s u m p t io n1 (a ) E le c t ri c it y p u rc h a s e d

Units (Mill ion KWH) 6 . 8 3 1 1 . 8 0Total amount (Rs. Crores) 5 . 2 0 6 . 7 5Rate Per Un i t (Ex c lu d in g d ema n d ch a rg es ) (Rs . / KWH) 3 . 0 4 3 . 0 5Electr ici ty Expor ted (Mill ion KWH) 0 . 2 6 0 . 2 6M ax imu m Deman d ch arg es (Rs . c ro res ) 3 . 1 2 3 . 1 5

(b ) Ow n Ge n e r at i o n (CP P)Units (Mill ion KWH) 3 5 5 . 7 4 2 9 1 . 9 0

Co s t Per Un i t (Rs . / KWH) 6 . 9 3 6 . 5 0

Un i t s Per To n o f Fu e l 2 3 6 3 . 9 6 2 6 7 4 . 2 0




22


2 . Fu rn ac e Oi l / LS HS

Qua nti ty ( Thous an d Tonn es ) 1 3 1 . 4 8 1 2 9 .4 3

Tota l amo u n t (Rs . / Cro res ) 2 9 2 . 6 0 3 0 8 . 8 1

Av erag e Rate p er u n i t (Rs . / Ton ) 2 2 2 5 3 . 0 0 2 3 8 5 8 . 0 0

3 . Ot h e r/ In t e rn al Ge n e ra ti on

i . CPP Fu e l

Qua nti ty ( Thous and Tonnes ) 1 5 0 . 4 8 1 0 9 .1 5

Total amou nt (Rs. / Crores) 4 4 9 . 8 1 3 6 7 .9 3


i i . Na ph t ha (DHDS )

Qua nti ty ( Thous and Tonnes ) 4 5 . 0 5 4 5 .2 3



i i i . Re fi ne ry G as

Qua nti ty ( Thous and Tonnes ) 1 4 1 . 5 0 1 0 2 .1 4


Av erag e Rate p er u n i t (Rs / Ton ) 2 2 7 5 7 . 0 0 2 3 0 7 3 . 0 0

i v . CokeQua nti ty ( Thous and Tonnes ) 7 3 . 7 9 8 1 .0 9



(B ). Co n s u m p t i o n p e r u n i t o f p ro d u c t i o n :

Electricity KWH/ Ton of Crud e 4 1 . 1 9 3 3 .1 4

Liquid fuel (Tons/ Thousan d Tonnes of Crude) 3 7 . 1 8 3 1 .0 0

Gas fuel (Tons/ Thous and Tonn es of Crude) 1 6 . 0 9 1 1 .1 6

Coke Fuel ( Tons / Thousan d Tonn es of Crude ) 8 . 3 9 8.86

FORM - B

FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ADAPTATION & INNOVATION

1 . R E S EAR CH & D EVE LO PME NT (R &D )

COLLABORATIVE R&D PROJECTS

M OUs h av e b een f in a l ized w i th Research co l lab o ra to r s fo r th e fo l lo win g p ro jec ts :

M u m b a i R e f i n e r y :Opt imiza t ion s tudies o f food grade Hexane manufacturing uni t and f eas ib i l i ty s tudy for producingpolymer-grade Hexane (With IIP)

I t i s p lan n ed to es tab l i sh o p t imu m o p era t in g co n d i t io n s & to p ro d u ce in te rn a t io n a l g r ad e h ex an e w i thmax imu m p ro d u c t y ie ld & min imu m u t i l i t i e s r eq u i r emen t .

Du r in g 2 0 0 8 -0 9 , a su ccess fu l t es t r u n was co n d u c ted fo r th e ab o v e jo in t ly w i th I IP Deh rad u n wi th th efollowing objectives:

a . To es tab l ish o p t imu m o p era t in g con d i t io n s fo r NM P u n i t an d ach ieve WHO grad e r eq u i r emen t o f les sth an 5 0 0 p p m aro mat ics in t r ea ted h ex an e o n su s ta in ed b as i s .

b . F e a s ib il it y o f p r o d u c t io n of p o ly m e r g ra d e / WH O / P h a r m a g r a d e h e xa n e .

The test run confirmed the feasibility of achieving WHO grade requirement of less than 500 ppm aromaticsin treated hexane on sustained basis. However other parameters of WHO grade such as PAH (PolycyclicAromatic Hydrocarbon) & NVR (Non Volatile Matter) could not be achieved. The test run also identifiedcertain improvement schemes and changes in operating philosophy to produce less than 500 ppm aromaticsproduct on sustained basis . These schemes were developed dur ing 2009-10 and are being implemented .

Ex p en d i tu r e o n R&D th ro u g h Rev en u e b u d g e t was Rs . 9 .9 0 Lak h s .

Vi s a k h R e f i n e r y :Membrane Separat ion Study to recover Propylene from Visakh Refinery Gas Mixture & LPG (WithIICT Hyderabad)

a. Collaborative R&D is in progress with I ICT Hyderabad for membra ne separa tion of propylene f rom LPG.Validation of Membrane and test run with pure gas was done. Test run with gas mixture is being carriedo u t fo r d i f f e r en t memb ran es . I ICT i s in p ro cess o f wr i t in g s imu la t io n p ro g ram fo r d e te rmin in g th enumber of stages for achieving desired propylene purity and membrane area requirement based on feedcapacity and composition of C3 fraction.

b. To facilitate treatment of the bioremediated sludge for reducing the oil content an d heavy metals, Refineryhas entered into an agreement (presently coordinated by Corporate R&D) with local GITAM Engg College

for the following projects at a Cost of Rs. 39.34 Lakhs:


2 0 0 9 - 1 0 2 0 0 8 - 0 9



23


Bio remed ia t io n o f p e t ro leu m o i l b y n o n p a th o g en ic micro -o rg an isms .

Bio d esu lp h u r i sa t io n o f p e t ro leu m o i l b y n o n p a th o g en ic micro - o rg an isms . Phytoremediation: Selection of plant species for selective absorption of oil and heavy metal contents from

sludge. The plant species will selectively absorb the pollutants in its rhizophore and does not allow thepollu tants to get leached in to the ground contaminating the ground water tab le. These p lants can beharvested and f resh saplings p lanted for fu ture treatments . The harvest p lants wil l be incinerated .

Latest high efficiency adsorbent for Hydrogen Unit PSA to improve Hydrogen recovery from 85.5% to 88%.

c . Gamma scan n in g of CDU3 an d ARU colu mn s w i th BARCs h e lp fo r h ea lth ch eck of colu mn s .

d . Procured Aspen On e Software for Process Simulation and Modeling of al l Refinery Units and Processes .

Expenditure on R&D through Revenue budget was Rs. 4 .03Lakhs

The to tal expenditure on R&D for both the ref iner ies was Rs. 13 .93 Lakhs.

2 . UPGRADATION INITIATIVES


(i) After completing success ful collaborative R&D project with IIP Dehra du n, Mumba i Refinery sta rted processingFCCU residue on regular basis in lube solvent extraction unit to generate superior grade (High BMCI) CBFS andFCCU feed. This helped Refinery in reducing LSHS generation & upgrading heavy ends to value added productslike LPG, Gasoline & Diesel.

( ii) After carrying out a su ccessful test run to upgrade the regular Bright Stock extract to superior quality TreatedAromatic Extract (TRAE), Mumbai Refinery started supplying TRAE (trade name Diana Process Oil SR 28) onregular b as is to M/ s Union Sek iyu Kogyo Co. Ltd. Korea. TRAE is also being su pplied to other pr ospective buyersin India. Refinery achieved savings of around Rs 80 Lakhs from 1.6 TMT TRAE supplied during 2009-10.

(iii) Hydrogen is being us ed in Mumb ai Refinery in various h ydro treating/ hydro-finers u nits for su lfur removal. Inorder to optimize hydrogen generation cost, Refinery implemented an in-house developed scheme to producehydrogen using RLNG as feed in Hydrogen generation unit in place of Naphtha. The potential benefit envisagedfrom the scheme is a round Rs 40 crores/ year . The scheme h as also appreciably reduced CO2 emission .

(iv) M u mb ai Refin ery h as su ccess fu l ly imp lemen ted Ad van ce P ro cess Co n t ro l in Fu e ls u n i t s an d Lu b e so lven textraction units for online optimization of these process units. During the year 2009-10, APC was implementedin HGU, DUU and PDU units . Potential benef i t o f about Rs.1 .68 Crores was obtained due to reduction inHydrogen flaring in HGU and steam optimization in DUU. Better unit stability and dewaxed oil yield improvementof 0.7 wt% was observed in PDU.

(v) During 2008-09, HPCL’s Mum bai Refinery had s igned a greemen t with US Trade Developmen t Agency (USTDA)for Technical assistance grant related to bottom upgradation project at Mumbai Refinery. HPCL is the first oil

company to get this grant from USTDA.Under this Bottoms Upgradation project Refinery will be installing a new Solvent Deasphalting (SDA) Unit toextract FCC feed from high sulfur vacuum residue. Currently this vacuum residue is being routed to low valuefuel oil pool which also necessitates downgradation of diesel streams to fuel oil.

During 2009-10, a Detailed Feasibility Report (DFR) was prepared for this SDA unit project jointly by KelloggBrown & Root (KBR) & HPCL.

(v i) The Propan e De-Asph alt ing unit (PDA) at Mum bai Refinery was comm issioned in 1995 for the produ ctiono f Br igh t S t o ck . Th e u n i t i s d es ig n ed fo r a th ru p u t o f 6 5 m 3 / h r . Refin ery is ca r r y in g o u t a p ro jec t torevamp th is unit to achieve fo llowing objectives:

To in c r e a s e t h e t h r u p u t c a p a c i t y fr o m p r e s e n t 6 5 m 3 / h r t o 9 0 m 3 / h r . T h e s u r p l u s D AO , a ft e rmeeting Br ight Stock requirement wil l be used as a feed for FCCU.

To reduce energy consumption by 30% by conver t ing the unit to Residuum Oil Supercr i t ical Extraction(ROSE) technology.

Th e Bas ic En g in eer in g Pack ag e fo r th e r evam p h as b een d ev elop ed b y M / s KBR.

(v ii) Carr ied ou t feasib ili ty s tud y and d etai led Engineer ing for improving hea ter ef ficiencies f rom 88% to 91%and capacity enhancement by about 5% and low NOX Burners for FRE (CDU-II ) heaters (atmos heater and

v acu u m h ea te r ) .

Vi s a k h R e f i n e r y

(i) C om m i s s io n ed P F D in C D U- I t h r u p u t i n h o u s e d e s ign a n d t h r u p u t w a s in c r ea s e d b y 3 0 m 3 / h r .

(i i) Ev a lu a t ed n ew cru d es : Ok on o , Ak p o , No wroo z (mix ed w ith I r an L ig h t ), Amen am .

(i ii ) F i r s t t ime p ro cess ed n ew cru d e ca l led “So o ro osh ” (h ig h v isco u s an d h ig h r es id y ield in g c ru d e b len d edwi th I r an L ig h t ) .

(iv) P ro cessed h igh TAN Escrav o s c ru d e (b len d ed wi th lo w TAN cru d es ) .

(v) Car r ied o u t f eas ib il ity s tu d y an d d e ta i led en g in eer in g for imp ro v in g h ea te r e fficien c ies f rom 8 8 % to 9 1 %a n d c a p a c i t y e n h a n c e m e n t b y a b o u t 5 % a n d l o w N O X b u r n e r s f o r C D U - I I h e a t e r s ( a t m o s h e a t e r a n d

v acu u m h ea te r ) .




24


(v i) Co mmiss io n ed Cru d e l in e d e-emu ls i fie r d o s in g fac i l ity to en h an ce wate r r em o val fro m cru d e .

(v ii ) F i r s t t ime s ta r ted p ro d u c in g VG-1 0 grad e Bi tu m en p ro d u c t io n .

(v ii i) Co mmiss ion ed Bi tu men co as ta l lo ad in g fac i li ty an d s t a r ted b i tu m en ex p o r t in g .

(i x) C o m m i s s i o n e d V GO e x p o r t fa c i li t y.

(x) Implemented Sh ell proposals for refinery improvements and benefi ts to the tune of about 1 3 .9 mill ion USD.

Annexure-II

C o n t r o l o f P o l l u t i o n & o t h e r E n v i r o n m e n t i n i t i a t i v e s u n d e r t a k e n b y R e f i n e r i e s d u r i n g 2 0 0 9 - 1 0 :


A. Ha z ard o us Wa s te Ma n ag e m e n t M u m b a i R e fi n e r y h a s p r o c e s s e d 4 0 , 0 0 0 m 3 o f oi ly s l u d g e fr o m c r u d e o il t a n k s b o t t o m a n d r e c o ve r e d

28,000 m3 of potential o i l by adopting “Mechanical Oil Recovery Technology” with net gain of Rs. 19 .5C r o r e s .

Bio-remediation of the lef t low oily s ludge (<10% oil content) af ter the recovery of potential o i l f rom thecrude tank bottom sludge has been under taken as per the grant of au thor ization of Maharashtra Pollu t ionCo n t ro l Bo ard .

Sp en t ca ta ly s t s / o ld ch em ica ls / d i scard ed ch em ica ls a r e b e in g d isp o sed o ff to th e r eg is te r ed “Co mmo nHazard ous Wastes Treatm ent Storage Disposa l Facili ty” (CHWTSDF) as well as to MPCB/ CPCB appr ovedR e c y c l e r s d e p e n d i n g o n t h e c h a r a c t e r i s t i c a n d c r i t e r i a o f t h e h a z a r d o u s w a s t e s . 5 5 0 t o n s o f s p e n t

catalyst has been d isposed off t i l l date.B . Ai r E m is s i o n Co n t ro l & Mo n i t o ri n g

Three s tacks under Green Fuel Emission Contro l Pro ject (GFEC) have been commissioned under ContinuousStack Monitor ing System (CSMS) as a par t of online emission monitor ing program.

Online continuous “Electronic Display Board” of ambient air quali ty and treated ef f luent data at MumbaiR e f i n e r y .

V o l a t i l e O r g a n i c C o m p o u n d s s t u d y f o r t h e e n t i r e r e f i n e r y h a s b e e n u n d e r t a k e n t o a d d r e s s t h e r e v i s e den v i ro n men ta l n o rms an d leak d e tec t io n & r ep a i r p ro g ramme h as b een p u t in p lace to q u an t i fy th e VOCe m i s s i o n s a n d t a k e p r e v e n t i v e m e a s u r e s .

C. E ff lu e n t Wa t e r Tre a t m e n t & Co n t ro l

Rotary Drum Skimmers (RDS) have been instal led & commissioned upstream of o ld and new API separatorsfor efficient recovery of free oil.

T o a c h i e v e t h e r e c e n t l y r e v i s e d e f f l u e n t n o r m s f o r p e t r o l e u m r e f i n e r i e s b y C e n t r a l P o l l u t i o n C o n t r o lB o a r d , M u m b a i R e f i n e r y h a s r e c e n t l y u n d e r t a k e n c o m m i s s i o n i n g o f a n I n t e g r a t e d E f f l u e n t T r e a t m e n tPlant (ETP) thereby replacing the conventional ef f luent treatment with Cyclic Activated Sludge treatmentfo llowed by Membrane Bio-Reactor & reverse Osmosis .

Other in i t i a t i ves a t Mumbai Ref inery Switch o v er f ro m l iq u id fu e l to Natu ra l Gas acco mp l ish ed th ereb y r esu l t in g in r ed u ced sp ec i f ic en erg y

co n su mp t ion fro m 0 .4 0 to 0 .3 5 in GTG’s (Es t imated Sav in g s 1 4 0 0 0 SRFT/ Year ) .

Online chemical cleaning of 10 Nos. of furn aces was ca rried out res ulting in fuel savings of 1096 SRFT/ Year.

I m p r o v e d D U U f u r n a c e p r e h e a t s b y i n s t a l l i n g t h e a d d i t i o n a l h e a t e x c h a n g e r i n r a w d i e s e l p r e h e a tc i r cu i t . Sav in g s Ach ieved i s ab o u t Rs . 6 .0 Cro re / Year .

Achieved savings of 120 0 SRFT / Year on com mis sioning of Propan e Gas recovery at Lube ref iner y .

Visakh Ref inery

A. Ha z ard o us Wa s te M an a ge m e n t :

Disposed 1191 MT of oily sludge and 5.74 MT of spent ZnO catalyst to CPCB authorized recyclers during 2009-10 and disposal of 3962 MT of sold oily sludge is in progress.

Obta ined mem bersh ip of “M/ s. Hyderabad Was te Managem ent Project, Dundigal, Ran gareddy (Dist)” on 26 th

November, 2009 for disposal of Hazardous & Non-hazardous wastes through secured land filling and incineration.

800 nos. of drums containing off-spec Bitumen were processed in “Off-Spec Bitumen Melting Facility” during2 0 0 9 -1 0 .

Tender was floated by VPT in March-2010 for procurement of Pressure Inflatable Boom and Permanent Boom as

a part of “Tier I Facility”.B . Em is s io n Ma nag em e n t

DHDS SRU Train – III was commissioned on 21 st August, 2009 for treatment of Acid amine gas and Sour waterStripper gases.

DHDS SRU Train-I catalyst was replaced during T&I in December 2009.

World Environment Day was celebrated on 5 th J un e, 2 009 Saplings and posters on environment were distributedon th is occasion .

Leak Detection & Repair for fugitive emissions was conducted as per CPCB norms. Survey was conducted on aquarterly basis for Heat Exchangers, Pumps and compressor seals & Pressure relief valves.

SO2 management guideline was revised in May 2009 to ensure emissions compliance under post-VRCFP operating

scen ar io s .




25


C. Li qu id E ffl ue n t M an a ge m e n t

Excess Oil ingress project facilities in Effluent Treatment Plant-II for A, B & C streams were commissioneddur ing December 2009 - February 2010.

VRCFP Sour Water Str ipper Unit was commissioned in J un e 2009. FCCU-II Sour Water Treatmen t is beingcarried out in VRCFP Sour Water Stripper Unit since August-2009 for better removal of Ammonia and H

2S.

Ex tern a l Tra in in g p ro g ram b y NPC, Ch en n a i co n d u c ted fo r a l l th e ETP p er so n n e l in Ap r i l 2 0 0 9 .

Sludge Thickener and Centr ifuge were revived in ETP-I in March 2010 to reduce the s ludge generation .

Merox clar if ier repair jobs were completed in ETP-II and i t was taken in serv ice f rom December-09 .

MS block effluent is being treated in ETP-II.

Consent for Operation (CFO) for VRCFP units was issued by APPCB, which is valid till 30th September, 2010.

Other act iv i t i es undertaken: M SDS man u a l f o r th e P ro cess Ch emica ls u sed in th e Ref in ery h as b een co mp i led an d r e leased to a l l th e

co n cern ed D iv is io n Head s in th e Ref in ery .

Applied for Consent For Operation (CFO) for VR and Mounded LPG & Propylene storage.

Annexure - III

Information as pe r Sect ion 21 7(2A), read with Companies (Part iculars o f Employment) Rules, 19 75 and forming

part o f the Directors ’ Report for the per iod 1s t Apri l , 2009 - 31s t March , 2010 .

Sr. Na m e Designation/ Rem u n eration Qualification Exper- Da te of Age Last Employmen tNo. Natu re of Du ties (Rs.) ience J oin ing(Yrs ) (MM/ D D

/ YYYY

1 2 3 4 5 6 7 8 9

1 ABDULLA M A R DGM - Oper a t ion s 2,480,284 B S c 38 11/ 05/ 1975 59 Ca lico Ch em ica ls Pla s t ics & Fib r es

Division

2 AGARWAL K C GM - Ma in t en a n ce 2,424,570 BE (Mech ) 34 11/ 03/ 1978 59 Cen tu ry Sp in n in g & Mfg Co.

3 AGRAWAL D K DGM - Op er a t ion s 2,509,113 BS c, DMS 38 03/ 01/ 1973 59 M/ s Es s o St an da rd Refin in g

Company of India Ltd.

4 AGRAWAL PRAFUL CHANDRA Execu tive As s is ta n t t o C&MD 2,569,912 B Tech ( Ch em ica l) 27 01/ 28/ 1983 49 Nil

5 AGRAWAL R D Sr. Ma n a ger - Network Plan n in g 2,446,567 LLB, MA 30 05/ 12/ 1979 54 Nil

6 ALAGARSAMY T * Sr . Ma n a ger - Sou t h As ia LPG 2,524,207 BE (Mech ) 25 11/ 05/ 1984 49 Nil

7 ARULNATHAN J ACOB BRIAN Ch . Region a l Ma n a ger 2,700,228 BSc, BE (Electr ica l) 24 09/ 30/ 1985 48 Nil

8 BABURAM S AMARCHAND Sr . Man ager - FM 2,419,759 DEE 32 07/ 02/ 1981 57 Gar r is on En gin eer MES, Ba roda

9 BALADHANDAYUTHAPA N Ch . Ma n ager - ISPRL 2,499,718 BE (Civil) 22 12/ 28/ 1987 43 Nil

10 BALAKRIS HNAN ARUN Ch a ir m a n & Ma n a gin g Dir ect or 3,019,180 BE (Ch em ica l), 33 08/ 01/ 1976 59 Nil

PGDM - IIM Bangalore

1 1 B EH URA B IC HITRA KUMAR S r. Ma n ager - Net Wor k Pla nn in g 2 ,4 65 ,6 11 BE (Me ch ), DBM, MBA, PGDMM 2 4 1 0/ 2 3 / 1 98 5 4 6 D ir ec to r Te ch Ed u c at io n

12 BERA ASOKE DGM - IT Facilit ies 2,801,971 B S c 33 01/ 16/ 1978 55 An a n t Con s t r u c t ion

13 B HAN A K G M 2,419,786 BE (Ch em ica l) 33 08/ 02/ 1979 57 Bh a rt ia E lectr ic S teel Co Ltd .

(Chemical Division)

14 BHAN RAVI PRAKASH Ch . Man ager - Ma in ten an ce Plan n in g 2,440,746 BSc En gg (Mech an ica l) 27 04/ 26/ 1983 49 Nil15 BHARARA V Sr . Man a ger - Opera t ion s 2,451,610 DMM, MSc, M Ph il 29 07/ 02/ 1980 53 Nil

16 BHASKARA RAO M DGM - Qu a lit y As s u r a n ce 2,453,851 B Tech ( Ch em ica l) 32 04/ 17/ 1978 57 Nil

17 BHATIA BALDE V Ch . In s t a lla t ion Ma n a ger 2,700,612 BE(Mech ) 21 05/ 16/ 1988 46 Nil

18 BH ATNAGAR S Ch . Ma n a ger - Tech n ica l Au d it 2,572,149 BSc En gg (Mech a n ica l), 27 07/ 01/ 1983 52 DEI En gin eerin g College, Agr a

Post Graduate Diploma in IE

19 BHIRUD VIJ AY S DGM - Rec r u it m en t Ma n p ower 2,607,166 MS c 31 12/ 24/ 1979 53 J u n ior College, Sa vd a

P l ann i ng & P e r sonne l M anagem en t

20 B IS WAS NILKANTA AD URAM DGM-MDPL Pr od u ct Co -or din a tio n 2 ,5 15 ,3 81 BS c E ngg (Pe tr oleu m Tec h), 2 8 0 7/ 0 6/ 1 98 1 5 4 Nil

DMM, DMS

21 BIS WAS SUBHANKAR DGM - Dis tribu tion 2,520,665 B Tech (Mech a n ica l), PGDBM 26 06/ 17/ 1983 49 Nil

22 CHAKRABORTY SNE HANGSHU D G M 2,434,338 BSC, BE (Electr ica l) 28 05/ 22/ 1982 57 Secreta r y to Govt . of Ass a m ,

I r r i ga t i on D epa r t m en t

23 CHATTERJ EE DEBJ YOTI Ma n a ger - Pip elin es Op er a t ion s 2,715,385 BSc En gg (Mech a n ica l) 21 04/ 03/ 1989 43 Nil

24 CHAUDHRY S P * ED - Ret a il S tra tegy

& B u sin es s Deve lop m en t 3,470,149 BE (Mech ), MBA 40 02 / 16 / 1976 60 Na tion a l En gg. In du s tr ies Ltd . J aipu r

25 CHAVAN RE KHA RAMAKANT Sr . Ma n a ger - Co-or d in a t ion 2 ,505,808 BA 37 07 / 10/ 1974 57 Vis h wa k a r m a Bu ild e r s

26 CHOUTY V L Ch . Ma n a ger - Com m er cia l 2,419 ,059 DMS , M.Com 30 12 / 17 / 1980 52 Th e S r ir a m War p in g & S izin g Co-op

Society L td.

27 DAMLE MAHE SH S HRIPAD ED - Ret a il 2,716 ,305 BE (Mech ) 30 12 / 29 / 1980 54 Th e Kir olos k a r Tr a ct or s Lt d .

28 DANI J N * Dy. Ma n a ger - Ma in t en a n ce 3,146 ,838 S S C / S S LC 34 11 / 17/ 1975 60 Nil

29 D ANIE L S ANTH OS H K DGM - OPRM 2,515 ,530 B.Com , FCA/ ACA 28 05 / 12 / 1986 51 Em jak In d u s tr ies Pvt Ltd ., Hydera ba d

30 D AS G UPTA S Ch . Ma n a ger - Pu r ch a se, CE C 2,818 ,760 BE (E lect r ica l) 26 11 / 21/ 1983 51 Nil

31 D ATTA AB H IS H E K Ch . In s t a lla t ion Ma n a ge r 2,551 ,363 B Tech (Ch em ica l) 26 01 / 20 / 1986 47 Ion E xch a n ge (I) Lt d .

32 DEKATEY PRAMOD TARACHAND Ma n a ge r - Mech a n ica l 2,441 ,372 BE (Mech ) 21 12 / 30/ 1988 46 Nil

33 DESAI BATUKCHANDRA RASIKLAL Sr . Region al Ma n age r 2,480 ,902 BA, MBA, PGDFM 23 09 / 30 / 1987 47 M/ s . Pion eer Electr ic Fu rn a ce

M a n u f a c t u r e r s

34 DESHPANDE D K ED - HRD 2,727 ,072 BE (Ch em ica l), DMS 32 12 / 18 / 1978 55 Ion E xch a n ge (I) Lt d .

35 D H AR SU S H ANTA Ch . Ma n a ger - Re ta il Upgr a d a t ion 2,435 ,235 BE (E lect r ica l) 25 11 / 08/ 1984 49 Nil

36 D IVAKAR G Sr . Ma n a ger - Op e r a t ion s 2,410 ,038 B Tech (Civil) 27 11 / 18 / 1982 54 Execu t ive En gg Div Office M.I.I. Divn ,

B a n g a l o r e

37 D IVAKAR NIMMAKAYALA Ch . Ma n a ge r - Br a n d in g 2,606 ,825 B Tech ( Ch em ica l) 26 01 / 16/ 1984 49 Nil

38 DWAYAPAYANUDU J S K Ch . Ma n a ger - F in a n ce 2 ,455,703 B.Com , FCA/ ACA 24 06 / 02 / 1986 51 M/ s. Ca pol Fa rm Equ ip m en t Lt d .,

S e c u n d e r b a d

39 E LANG O RAMAMOORTHY DGM - HR 2 ,992,127 MA 29 09 / 02/ 1985 49 Hin d u s t a n Mot or s Lt d .

40 G AIKWAD S HE KHAR P DG M - P r ojec t s 2 ,712,723 BE (Mech ), Mas ter in Fin an ce

Ma n a ge m en t 27 05 / 25 / 1983 48 God r e j & Boyce

41 GANE SAN K S r . Ma n a ge r - In s t a lla t ion 2 ,466,474 BS c, PG (PM&IR) 32 10 / 23 / 1979 55 Sou th ern Telecom m u n ica t ion Region

42 GATLE WAR PADMAVALLI ARUN S r . Ma na ge r - Pr oject Pu rch as e 2 ,560,035 BA, LLB, DAM, DMM 33 05 / 2 6/ 1 976 53 Nil




26


43 GHANEKAR A K * Ma n a ger - E lect r ica l 2,870 ,340 S S C / SS LC 41 03 / 06 / 1972 60 In d u s t r ia l E n gin ee r in g Con t r o ls

44 GHORPADE A D Ch . Ma n a ger - OM&S a n d 2,499,938 BSc, Dip in In d Sa fety, PG DIP 32 12/ 15 / 1977 54 Nil

Los s Con t r ol IN OCC HEALTH & ENV MGT

45 GHO S H S UBRATA KUMAR DGM - F in a n ce (Mk t g.) 2 ,692 ,125 B.Com , FCA/ ACA 26 06 / 15 / 1987 46 M/ s . P r ice Wa t e r h ou s e

46 GOKHALE A P D GM - In fr a s t r u c t u r e 2 ,588 ,601 B S c 38 09 / 04 / 1973 57 Un iqu e Ph a r m a ceu t ica ls La b

47 GOUR GOPAL BANIK Ch . Ma n ager - SHE 2 ,539 ,614 BE (Mech ) 31 05 / 06 / 1980 54 E n gin ee r in g E n t e r p r is e s

48 GOVINDAN K M * DGM - Pr ojec t s 3 ,282 ,067 BE (E lect r ica l), PGDBM 34 06 / 01 / 1977 60 In d ia n Ba n k

49 G ULATI VIKRAM DG M - Cor p or a t e Accou nt s 2 ,612 ,147 B.Com , LLB, FCA/ ACA, CFA 24 03 / 31 / 1987 48 S .N. Dh a wa n & Co, New Delh i

50 GUPTA J AYANT Ch . Ma n a ger - Net wor k & 2 ,428 ,345 BSc En gg. (E lectr ica l), 22 12 / 28 / 1987 44 Bin a t on e Elect r ica ls Pvt Lt d .

In fr a s t r u c t u r e M. Tech (Mech a n ica l)

51 GUPTA PRADEEP KUMAR DGM - Reta il 2 ,707 ,678 ME Agr icu lt u r e 27 11 / 21 / 1983 51 Na tion a l Seeds Corpn Ltd ., New Delh i

52 GUPTA S ATYA PRAKAS H Dir ect or - Fin a n ce (PP&AC) 2 ,465 ,131 B.Com , FCA/ ACA 27 11 / 18 / 1982 51 M/ s . S .R. Ba t lib oi & Co, Ch a r tered

A ccoun t an t s , N ew D e l h i

53 HAS YAG AR S H RIKANT DGM - Fin a n ce 2,766,227 B.Com , FCA/ ACA 24 06 / 06/ 1988 47 K.N. Gu ru swam y & Co Ltd .

RAMCHANDRA

54 HOTA DEEPAK KUMAR GM - MRA & P 2,707,875 BA, PG (PM&IR) 27 04 / 15/ 1983 49 Nil

55 IDICULA S HAJ I DGM - Ma in t en a n ce 2,471,764 BOE, DME 28 05 / 02/ 1989 50 Ba lla r pu r In d u s t r ies Lt d .

56 IYER K K NARAYANAN Ma n a ger - Op era t ion (Sh ift ) 2,597,820 B S c 30 12 / 03/ 1979 53 Ca r s h er Tr a d in g Cor p or a t ion

57 IYER NARAYANAN H DGM - Lega l (Ma rket in g) 2,506,901 LLB, ACS, ICWA, M.COM 24 09 / 30/ 1985 45 Deepak Sh ah (Cha rtered Accou n tan ts)

58 J AGANNADHARAO N S GM - Opera t ion s 2,730,056 B. Tech . (Ch em ica l) 30 04 / 11/ 1980 53 Nil59 J EYAKRISHNAN S G M 2,628,723 B A 28 08 / 24/ 1981 50 Nil

60 J INDAL KUMAR ASHOK Ch . Ma n ager - O&D 2,770,094 BE (E lectr ica l) 27 11 / 08/ 1982 50 Nil

61 J OSHI PUSHP KUMAR GM - HR (Mk tg.) 2,870,969 BA, PG (PM&IR) 23 05 / 19/ 1986 45 Nil

62 J UNEJ A HARJ IT SINGH DGM - Reta il Lu bes 2,410,267 BE (Mech ) 28 06 / 21/ 1983 49 Pu n ja b Tr a ct or s Lt d . , Ch a n d iga r h

63 KALYANARAMAN T K * GM - Specia l Projects 4,510,419 B. Com , FCA/ ACA 35 02 / 17/ 1978 60 In d ian Oil Corpora t ion Lt d .

64 KAMBLE DINESHKUMAR Ch . Man ager - EP (LPG) 2,403,333 BE (Civil), DBM 31 06 / 01/ 1978 53 Nil

KRISHNARAO

65 KAPALEY NIRANJ AN DATTATRAYA* C h . In s t a lla t ion Ma n a ger 4,189,082 BE (Mech ) 27 01 / 27/ 1983 50 Nil

66 KARMARKAR SANDEEP NARAYAN DGM - In for m a t ion Sys t em s 2,545,775 B. Tech (Mech ), 24 07 / 01/ 1985 47 Nil

Post Graduate Diploma in IE

67 KARNAD U * Ch . In s t a lla t ion Ma n a ger 3,064,288 BSc, DBM 35 10 / 18 / 1979 60 Ha irh a r Polyfib er s

68 KATKAR D H DGM - Fire & Sa fety 4,346,914 BOE, DME 40 04 / 27/ 1989 60 In d ia n Brewer s Lt d .

69 KESAVAN R GM - Com m er cia l 2,572,591 BSc , FCA/ ACA 28 08 / 26/ 1985 48 K.R. Su b ra m a n ian & Co Ch a rt er ed

A c c o u n t a n t s

70 KH ANNA AS H IS H Sr . Man a ger - Ma r in e Sa les 2,618,630 BE (Mech ) 22 12 / 28 / 1987 46 Nil

71 KOS HATWAR R K DGM - Su pp lies 2,731,764 SSC/ SSLC, BE (Mech ), DME 33 10/ 03 / 1979 53 Ta t a In s t it u t e of Fu n d a m en t a l

R e s e a r c h

72 KO STA NIRMAL KUMAR Ch . Ma na ge r - Re sid en t Co -or din a tion 2 ,8 50 ,5 62 Licen sia te in M ech an ica l En gg. 31 0 4/ 0 8 / 19 80 55 Th e Bu r n S ta n da rd C om pa n y Lt d.

73 KOTA VE NKATA RAJ U DGM - Lega l 2,425,203 B.Com , LLB, PG (PM&IR) 33 11 / 21 / 1978 54 M/ s. Tr avel Exp res s

74 KOTHARI PRADEEP KUMAR DGM - Ga s Divis ion 2,578,891 BE (Mech ), MBA 28 09 / 01 / 1982 49 Wes t er n In d ia Sp or t s Mot or s

75 KOTKAR S M * Ma n a ger - OM&S (Sh ift ) 1,574,271 B S c 32 12/ 28 / 1977 60 AFCO Ltd .

76 KRISHNAMURTHY D V * Ma n a ger - F in a n ce 2,484,461 B. Com 36 04/ 14 / 1978 60 T.I. Lt d .

77 KRIS HNAS WAMY C S GM - R&D & QC 2,690,736 BSc En gg. (E lect r ica l) 37 04/ 19 / 1976 59 Globe Au to E lectr ica l78 KULKARNI S K DGM - Min or Project 2,503,969 BE (Civil), MBA 30 02 / 16 / 1981 53 M.S.E.B.

79 KUMAR GUPTA ALOK Ch . Man ager - Bu s in es s Developm en t 2,566,201 BE (Electr ica l) 24 12 / 28 / 1987 45 J .K. Syn th et ics Lt d . , Kot a

80 KUMAR HAZZARAPU PREM DGM - Au d it 2,565,497 B.Com , FCA/ ACA 25 08 / 27 / 1984 51 B.H.E.L.

81 KUMAR MUKESH Sr . Ma n a ger - QC 2,514,391 B S c 24 01/ 20 / 1986 46 Nil

82 KUMAR S.R.AMBABAVANI Ch . Ma n a ger - Con s u mer Lu bes 2,709,496 BE (Civil) 22 12 / 28 / 1987 46 Tu ngabhadra Steel Produ cts, Karnataka

83 LAKSHMINARAYANAN K S r . Ma na ger (Sp ecia l Pr oject s ) 2,612,083 B. Tech (Mech ), DMM, 22 01 / 0 9/ 1 989 46 J .K. Syn th et ics Lt d ., Kot a

MBA - Marketing

84 LAXMANSINGH L K * Ma n a ger - Op e r a t ion s 3,129,931 B A 41 08 / 26 / 1968 60 NA

85 LIBEIRO J OSEPH SYLVESTER DGM - Deve lop m en t 2,567,528 B S c 35 10 / 27 / 1975 56 Ca t h olic Relief Ser vice s

86 MAHESWARARAO K B V * Dy. Ma n ager - Fin an ce 1,267,966 B.Com , Cer t Pr ogr a m me 33 03 / 13 / 1980 53 Bh a r a t Hea vy Pla tes & Ves sels Lt d . ,

(Com p . App ln .) Vis a k h a p a t n a m

87 MALHOTRA S ANJ AY Ch . Region a l Ma n a ger 2,611,134 B. Tech (E lect r ica l) 23 07/ 28 / 1986 45 Nil

88 MANE NARAYAN S DGM - HR 2,603,847 BA, MSW 31 06 / 07 / 1984 55 In s t r u m en t a t ion Lt d . , Kot a

89 MARAR RAM MOHAN NARAYANAN* GM - Pr oject s 2,326,605 BSc En gg (Mech a n ica l) 36 02 / 03 / 1975 60 Bu rm a h Sh e ll Re fin er ie s

90 MARTIN FLORIANO J OHNS ON Ch . Ma n ager - Au d it 2,452,754 B.Com , FCA/ ACA 30 09 / 02 / 1985 50 Love Lock & Lewes

91 MEHTA HARIS H CHANDE R GM - O & D 2,835,109 BE (Electr ica l) 25 09/ 10 / 1984 46 Nil

92 ME HTA RAJ NI DGM - IT (Mktg.) 2,599,238 BSc, MSC 28 09 / 01 / 1982 53 Ken d r iya Vidya la ya , Am ba la Ca n t t

93 ME HTA RAJ NIS H DGM - Reta il 2,437,611 BSc En gg. (Mech ) 26 11/ 21 / 1983 48 MSD Escorts Ltd . , Fa r idaba d

94 ME HTA SUDHIR CHANDRA ED 2,682,890 BE (Ch em ica l), DAM 32 01/ 01 / 1981 53 Am ar Dye - Ch em . Ltd .

95 MISHRA S IVA PRAS AD * Ma n a ger - F in a n ce 1,477,946 B.Com , FCA/ ACA 22 11 / 25 / 1993 44 Atcon In d ia Lt d . , New Delh i

96 MIS RI RAKE S H GM - Nort h Zon e 2,421,652 BE (Civil) 26 09/ 22 / 1983 48 Nil

97 MOHAL RAJ INDER KUMAR Ch . Ma na ger - J oin t Ven tu res 2,442,285 B.Com , LLB, ACS, FCA/ ACA 25 07 / 3 0/ 1 984 50 Nil

98 MOHIT RAM RAMNARES H Ma n a ger - Ma xim o, Mn tc Pla n n in g 2,446,381 BE (Civil) 22 12/ 28 / 1987 45 M/ s . Pooja Con su lta n ts & Con tr acts99 MOHNOT MAHENDRA MAL * DGM - Ris k Ma n a gem en t 2,548,031 B.Com , FCA/ ACA 35 04/ 13 / 1981 60 M/ s . J iya jeer ao Cott on Mills Ltd .

100 MUKHERJ EE B Dir ect or - F in a n ce 2,590,040 BSc, FCA 36 03/ 08 / 1979 56 M/ s . Pr ice Wa t er h ou se & Co.

101 MUKHOPADHYAY S UGATO * Sr . Ma n a ger - E&P HB. 1,321,781 BE (Civil) 22 12/ 28 / 1987 46 Ma ck in t os h Bu r n Lt d .

102 MURALI KRISHNA P B Ch . In s t a lla t ion Ma n a ge r 2,688,201 BS c, Dip . in In t er n a t ion a l 25 09/ 05 / 1984 49 NA

B us i nes s , M B A

103 NADKARNI P P MD - Petr on et MHB 2,765,370 BSc E n gg (Mech ) 30 06/ 22 / 1981 52 M/ s . XLO In d ia Ltd .

104 NAG ADA VINIT VIS ANJ I GM - Pr oject s 2,467,975 BE (Mech ) 30 05 / 24 / 1979 58 Nil

105 N AMDEO B K ED - IT & S 2,574,528 BE (Mech ), M.Tech (Civil) 30 09/ 05 / 1980 53 Kaya n de En gin eers Pvt Ltd . , Na gpu r

106 NARAYANAN N R C om p a n y S ec r e t a r y 5,306,970 B.Com , LLB, MBA, ACS 42 09 / 01 / 1972 60 In d o Am er ica n Soc ie t y

107 N ARAYANAN S HHS Sr . Br a n d Ma n ager 2,550,562 BSc, MA 29 11/ 08 / 1982 51 Th e New In d ia Ass u r a n ce Co. Lt d .

108 NARAYANAS WAMY Ch . Region a l Ma n a ger 2,545,505 BE (Mech ), Cer t . Pr ogr a m m e 25 10/ 08 / 1984 49 M.S . Ra m ia h MSRIT, Ba n ga lor e

KRIS HNAMURTHY DAVANAGE RE (Com p . Appln .)

109 NASRULLAH MOHAMME D Ch . Ma n a ger - In fr a s t r u ct u re 2,489,216 BE (Mech ), MS 30 09 / 24 / 1979 56 S id d a Ga n ga In s t . of Tech n ology

110 NEHETE NIVRUTTI RAMDAS Sr . Ma n ager - Sh ift Co-or d in at ion 2,511,971 MS c - Ch em is tr y 29 07/ 07 / 1980 53 Nil

111 NEHETE V N DGM - LPG 2,479,134 DME 32 04/ 21 / 1980 53 Ga jr a Gea r ’s Pvt . Ltd .

Sr. Name Design ation/ Remu neration Qu alification Exper- Date of Age Last EmploymentNo. Natu re of Du ties (Rs.) ience J oin ing

(Yrs ) (MM/ D D / YYYY

1 2 3 4 5 6 7 8 9




27


112 NETKAR YASHWANTH M * Sr. Man ager - LPG 2,975,449 MA 31 12 / 21 / 1981 60 S id d a r t h College of Ar t s , Scien ce &

C o m m e r c e

113 N IKALE DR S H Sen ior Ma n a ger - Med ica l Ser vices 2,623,590 MBBS 21 10 / 25 / 1991 50 Bom b a y Mu n icip a l Cor p or a t ion

114 OAK A V Ch Ma n a ger - Refin er y Sa fet y 2,483,348 B S c 36 03 / 01 / 1976 57 Dyes & Dispers in g Agen ts Pvt . Ltd.

115 OBEROI S K Ch ief Ma n a ger - GGSRL 2,554,008 DCE (Civil), MA (Pu b lic Adm n ) 34 11 / 13 / 1979 55 Cen t r a l Pu b lic Wor k s Dep t

116 PAL S URANJ AN Ch . Ma n a ger - Opn s (MPSPL) 2,772,155 BE (Civil), Mas ter in Ma rket in g 2 6 09 / 22 / 1983 48 Nil

M a n a g e m e n t

117 PANDE A GM - Ret a il 2,514,297 BSc En gg (Civil) 26 06 / 14 / 1983 50 U.P. S t a te Min er a l Develop m en t

C or por a t i on , L ucknow

118 P ANTH AKY S O HRAB Ch . Ma n a ger - SHE Au d it 2,223,072 B S c 37 08 / 01 / 1972 60 Ru tt on s h a Ser vices Lt d . , Mu m b a i

NESSERWANJ I *

119 P ARATE ANIL MOTIRAM S r . Ma n a ger -In s t a lla t ion 2,530,440 M.Com 33 01 / 17/ 1983 55 I B P Co. Ltd .

120 P ARIHAR VINOD S ING H Ch . Man a ger - In fo. Sys . 2,488,682 MS c 30 11 / 08 / 1982 54 G.M. Mtce, NTR, New Delh i

121 PATIL B B DGM - CS&P 2,436,789 BS c Tech 34 01 / 19 / 1981 58 Sa vit a Ch em ica ls Pvt . Lt d ., Th a n e

122 PATIL S S Sr. Man a ger - PQS & VIP Ref 2,409,064 B.Com 32 12 / 18 / 1978 59 S a t ya n a r a ya n Th a r d & Co.

123 PAULY K J * Ch . Ma n a ger - Dis t r ibu t ion 2,347,348 B.Com , DBM 36 07/ 02 / 1973 60 Nil

124 PE NUMATCHA CHIRANJ EEVI Sr . Ma n a ger - Scr a p Dis pos a l 1,747,369 BE (Mech ) 31 08 / 28 / 1978 60 NA

RAJU *

125 P ETER CLEMENT S r . Ma n a ger -Ret a il Br a n d in g 2,583,807 S SC/ SSLC, B.Com 30 09 / 01 / 1979 54 NA

126 PHADKE SHRIPAD ME GHASHAM Ch . Ma na ge r - In for ma tion S ys tem s 2,441,417 BSc, CISA 29 11 / 28 / 1 983 51 Ila c Lt d ., Ah med aba d127 P ILLAI RAJ AN K Ch . E xecu t ive Officer 2,645,181 B Tech (Mech ), ME 32 05 / 01 / 1978 56 Mah in d r a & Mah in d r a Ltd .

128 PRADHAN O P ED - Corp or a te S t r a tegy & Pla n n in g 2,507,739 BSc, DMIT, MBA 34 12 / 05 / 1980 56 Ga rware Pla s t ics & Polyes t er Pvt Ltd .

129 PRASAD KORLIMARLA SIVA RAMA ED - J oin t Ven t u r es 2,707,737 BSc , FCA/ ACA 32 04 / 26/ 1978 57 Nil

130 PRATAP SURENDRA DGM - Tech nica l Se r vices 2,639,786 B Tech (E lect r ica l) 27 01 / 17 / 1983 50 Hyderabad Asbes tos Cem en t Produ cts

L td. , Haryana

131 PREM A Ch . Ma n a ger - Pr oject s 2,570,976 BE (Mech ) 26 10 / 18 / 1983 49 Nil

132 R AD H AKRIS H NAMURTH Y DGM - Pr oces s 2,969,017 M. Tech (Ch em ica l) 29 02 / 02 / 1981 53 NA

VENTRAPRAGADA

133 RAJ AMANI S Ch . Mgr - E&P 3,166,093 B S c 36 10 / 30/ 1973 57 Nil

134 R AJ ASEKARAN R V DGM - CPP 2,529,807 B.E .(E lectr ica l & E lect r on ics ), 27 11 / 08/ 1982 49 Nil

Dip. in Labour Laws, Master

of Foreign Trade, Pos

135 RAJ E E V HAGARGI Sr . Region a l Ma n a ger 2,416,120 BE (Electronics & Telecom.) 23 01 / 19/ 1987 44 Nil

136 R AKESH KUMAR GM - HR (Com p Mgm t) 2,670,894 B.Com , FCA/ ACA 34 01 / 03 / 1983 53 Un itech En gg Pvt Ltd .

137 R AMAMOO RTHY D DGM - E&P 2,473,165 BE (Ch em ica l), DMS 30 03 / 31/ 1982 52 Ka n a r a En gg Co Pvt Ltd .

138 RAME SHKUMAR R Sr . Ma n ager 2,417,854 BE (Civil) 28 09 / 22 / 1983 51 Sham as Con stru ction Pvt. Ltd., Madras

139 RAO KONE DANA RAJ ESWARA J oin t Dir ect or (MC&E S) 2,683,678 B Tech (Mech ) 24 01 / 20 / 1986 49 Roa d s & Ad m n Dep t , Hyd er a ba d

140 R AO KOTA S REE NIVASA Ch . Region a l Ma n a ger 2,442,458 BE (Mech ) 21 05 / 09 / 1988 45 Nil

141 R AO MEDIDI KES AVA Ch . Man a ger - RCD 2,607,369 B Tech (Ch em ica l) 24 12 / 16 / 1985 48 NA

142 RAO RAVIPATI S UDH AKARA ED - Dir ect Sa les 2,620,194 B.Com , FCA/ ACA 29 11 / 12 / 1981 53 Un ion Ba n k of In d ia

143 RAO S HAILE S H RAMA DGM - LPG 2,480,614 BE (Mech ) 27 11 / 21 / 1983 50 Godrej & Boyce Pvt Ltd ., Mu m ba i

144 R AUT VIS HRAM S OMA * Ma n a ger - IT Fa cilit ies 2,038,889 B A 39 07 / 11 / 1974 60 Dep t . of At om ic En er gy, Govt of

India - Power Projects Engg Division145 REEJ ONIA BHANU PRATAP Ch . Ma n ager - Bh agya n a ga r Ga s 2,573,412 B Tech (Mech an ica l) 27 09 / 01 / 1982 54 Nil

146 ROY CHOUDHURY S Dir ect or - Ma r ke t in g 4,117,641 BE (Mech ) 29 06 / 21 / 1982 56 In d ia n Oil Cor pn Ltd .

147 ROY RAMANUJ GM - Fin a n ce 2,436,247 BSc , FCA/ ACA 33 10 / 19/ 1981 56 M/ s . Fox Rh odes Pa rks & Co.

148 SABALE D M GM - SHE (Mar ket in g) 2,692,596 DME 37 08 / 10 / 1977 58 Ma za ga on Dock Lt d.

149 SADU SUNDER P Ch . Man ager - HR 2,365,598 LLB, PGD in Ps ych o. 22 06/ 01/ 1987 50 Nil

Counselling, PG (PM&IR), MA

150 S AHA ALOK RANJ AN * Ma n a ger - Oper a t ion s 1,126,980 BS c - C h e m is t r y 30 02/ 02/ 1981 54 Tek m e In d ia

151 SAHA ARNAB Sr .Ma n a ger - Br a n d in g 2,428,985 BE (Mech ) 24 10/ 23/ 1985 46 Nil

152 SAHA KRIPESH KAMALESH DGM - Net wor k & In fr a st r u ct u re 2,672,772 BSc, MBA - Mar ket in g 32 05/ 16/ 1977 53 B.R.H.M.

153 S AHNI SUBHAS H VIKRAM ED - Cen tr a l En gg. (Refin er ies ) 2,674,156 BE (Mech ), DMS 36 02/ 01/ 1975 58 In dia Tu be Mills & Meta l In du st r ies

Private Limited

154 SAIT M F Ch . Man a ger - Lu bes Co-or d in a t ion 2,508,667 B Tech (Ch em ica l) 36 04/ 19/ 1976 59 La r s en & Tou b r o

155 S ANALKUMAR C S Ch . Ma n a ger - Dis t r ibu t ion 2,604,804 BSc, MA 29 09/ 01/ 1982 52 St a te Ba n k of Tr a va n cor e

156 SARAN RAM Ma n a ger - Oper a t ion s 2,600,914 BSc En gg (Civil) 25 09/ 10/ 1984 47 Nil

157 S ARKAR S UBIR Ch . Man ager - LPG Sa les 2,453,682 BE(Electr ica l) 34 10/ 16/ 1978 59 M/ s . J os t’s En gg Co. Ltd .

158 S ARMA A VIS WANADHA GM - Na tu ra l Ga s 2,901,789 B.Com , PGD in a ltern a t ive 27 02/ 02/ 1983 51 Pon ds In d ia Ltd .

Dispute Res, PGDFM, PG Dip.

- Treasury & Forex Mgmt, FC

159 S ATHE AVADHUT BHASKAR * ED - IT&S 4,749,394 BE (Ch em ica l) 37 12/ 09/ 1974 60 Hin d u s t a n Or ga n ic Ch em ica ls Lt d .

160 S ATHIAVAGE E S WARAN S T Hea d- In fo r m at ion Sys tem s 2,590,346 BE (Mech ), Pos t Gra du ate 26 07/ 01/ 1983 50 Nil

Diploma in IE

161 SAVADI A S * Manager - Condition ing and Mon itoring 3,299,831 HS C/ In t e r / PUC 37 12/ 24/ 1973 60 La r s en & Tou b r o

162 S AXENA RAJ EEV Sr . Ma n ager -VIP Ref. / PQ 2,605,848 B Tech (Civil), DBM 24 05/ 30/ 1985 46 Nil163 SAXENA VIJ AY RAJ Ch . Reg. Mgr 2,607,856 BE (Mech ) 24 10/ 10/ 1985 47 Nil

164 S EKAR G Sr . Man a ger - Opera t ion s 2,539,193 BSc, LLB 32 05/ 23/ 1981 57 In spectorate of Electron ics , Min ist ry of

D e f ence

165 SE N ASHIS DGM - Ba lan ced Scor e Ca rd 2,404,510 BE (Mech ) 25 10/ 08/ 1984 47 Nil

166 SESHAN ANU * Ma n a ger - Oper a t ion s 2,984,248 B A 33 10/ 27/ 1976 60 Vu lcan La wa l Ltd .

167 SETHI SURENDRA K Ch . Man ager - EBD 3,302,414 B. Tech (Ch em ica l), Ma s ter 27 02/ 21/ 1985 49 Hin d u s t a n Veget a b les Cor p . Lt d .

of Foreign Trade, PGDBM

168 SHAH DUS HYANT S HAS HIKANT DGM - Com mer cia l 2,408,559 B.Com , FCA/ ACA, ICWA 28 08/ 01/ 1983 54 A.F. Fergu son & Co.

169 S HE NOY VINOD S ADANAND DGM - Pr ojects (FCCU/ D HT) 2,433,259 B. Tech (Ch em ), DFM, DMM 24 06/ 0 3/ 1 985 47 Nil

170 SHIRODKAR V S DGM - Produ ct 2,835,403 MS c 30 05/ 19/ 1980 53 Med ica r e Ph a r m a ceu t ica l Pvt Ltd .

171 S HIRWAIKAR G A ED - LPG 2,517,775 BE (Mech ) 37 02/ 01/ 1975 59 V.M. Salgaocar & Brothers Private Ltd.

172 SHRIVASTAVA BHANU PRAKASH DGM - In s p ect ion 2,866,074 BE (Mech ) 35 05/ 06/ 1983 59 In d ia n Pet r och em ica ls Cor p n Lt d .

173 SHROFF I J DGM - Project Process 2,515,560 BSc , BSc Tech 30 04/ 09/ 1980 57 Ca lico Ch em ica ls

174 SHROTE VINOD KUMAR Ch . Ma n a ger - Bitu m en 2,408,570 MS c 27 01/ 17/ 1983 50 Nil

Sr. Name Designation / Remu neration Qu alification Exper- Date of Age Last Employmen tNo. Natu re of Duties (Rs.) ience J oin ing

(Yr s) (MM/ D D / YYYY

1 2 3 4 5 6 7 8 9




28


175 S ING H AJ IT GM - Co-ord in a t ion DCO 2,394,860 B Tech (Mech a n ica l) 26 09 / 22/ 1983 48 Nil

176 SINGH AMARDEEP VIRK Ch . Ma n a ger - Ma in ten a n ce 2,446,875 Boiler Pr oficien cy, 27 03 / 02/ 1993 47 In d ian Oil Corpora t ion Lt d .

AMIE (Mech), DME

177 S INGH CHHATE R Ch . Man ager - MLIF 2,462,636 AMIE (Mech ), DME 31 10 / 13/ 1980 53 Dir ector of Pr od u ct ion & In s p ect ion

178 SINGH KOMAL Sr . Ma n a ger - Op er a t ion s 2,537,381 BSc En gg (E lectr ica l) 26 11 / 21/ 1983 51 HMT Lim it ed , Ajm er

179 SINGH KRISHNA KUMAR DGM - Pr ojects 2,519,884 BSc En gg (Mech a n ica l) 29 11 / 30/ 1981 55 Som a iya Or ga n ics (I) Ltd .

180 SINGH KUNWAR PAL * Ma n a ger - Op er a t ion s 3,245,804 DEE 33 12 / 21/ 1981 60 Civil Constru ction Wing, All India Radio

181 SINGH REKHI KULDEEP Ch . Execu tive Officer 2,952,417 BSc En gg (Mech an ica l) 26 06 / 22/ 1983 50 Th e Gen era l Electr ic Co of In dia Ltd,

Allahabad

182 S INGH S AHAS TRA PAL GM - Exp lora t ion & Produ ct ion 2,889,024 BSc, MBA 33 09 / 07 / 1981 55 R&D Cen t r e, IOC

183 S INGH SAWHNEY TEJ BIR DGM-Ret a il E n gin eer in g 2,422,693 BE (Mech ) 26 11 / 21/ 1983 48 Nil

184 SINGH YADAV MAHE NDRA DGM - Reta il Upgr ada tion 2,552,337 BE, Pos t Gradu ate Dip . in IE 24 01 / 16/ 1986 49 Nil

185 S INHA AJ IT KUMAR Ch . Ma n a ger - Pr ojects 2,797,134 BSc En gg. (Mech ) 24 06 / 17/ 1985 48 Nil

186 SIVARAMULA SREE NIVASULU Ma n a gin g Dir ector - BGL 2,799,932 B. Tech (Civil) 26 01 / 16/ 1984 50 Nil

187 SOLANKI DHARME NDRA DGM-Dis tr ibu tion a nd Pr od uct 2,682,555 DBA, DCE (Civil), Pos t 28 07 / 01/ 1981 48 Na ra ya n Bu ild er s

J AG J IVANDAS Co- or d in a t ion Gr a du a te Dip . in HRM,

PGDMM, PGD in Psycho.

C ounse l l i ng ,

188 S RIDHAR R DGM - F in a n ce 2,444,049 B.Com , FCA/ ACA 23 04 / 03/ 1987 46 R Su n da ra ram an & Co., Madra s

189 S RINIVAS KOLLATI DGM - (I/ C)-Avia t ion 2,514,917 B Tech (Mech ) 25 09 / 19/ 1984 46 Nil190 S RINIVAS AN S DGM - In for m a t ion Sys t em s 2,454,056 BE (In d En gg), ICWA 26 01 / 16/ 1984 49 Nil

191 SUBBARAO SATYANARAYAN DGM - In for m at ion Sys tem s 2,577,740 B.Com , DAM, Ma s ter in 28 02 / 15/ 1982 48 Nil

Ad m n . M a n a g e m e n t

192 SUDHEE NDRANATH R Ch . Reg. Ma n a ger 3,111,723 B Tech (Mech a n ica l) 26 10 / 08/ 1984 48 REC, Ca licu t

193 SURANA MUKESH KUMAR GM - Projects 2,497,178 BE (Mech ), Certd. Proj. Mgm t. 27 11 / 09/ 1982 48 Nil

Prof. (PMP), Master in Finance

M a n a g e m e n t

194 SUVARNARATNAM M * Ch . Ma n a ger -Wor k s h op 1,687,455 BE (Mech ) 34 06 / 08/ 1979 60 Bh a ra t Hea vy Pla tes & Ves sels Ltd . ,

V i s a k h a p a t n a m

195 SWAMY MVR KRISHNA G M 2,640,612 B Tech (Mech ), 26 07 / 08/ 1983 49 Nil

Post Graduate Dip. in IE

196 TAWALE TUKARAM GOVINDARAO C h . Man ager - Oper a t ion s 2,533,391 B Tech (Ch em ica l) 28 11 / 08/ 1982 52 In dia n Pet r och em ica l Cor pn Lt d .

197 THAKUR MAHE S HWAR Sr . Ma n a ger - Oper a t ion s 2,500,849 BSc En gg. (Mech ) 25 10 / 08/ 1984 47 Nil

198 THOSAR AVINASH BHALCHANDRA ED - Projects & Pipelin es 2,636,186 BE (Civil) 30 05/ 05/ 1980 53 Ra u na g In t er n at ion a l Lt d .

199 TOKEDAR M * Sr . Depot Ma n ager 3,392,229 DME 36 05 / 08/ 1978 60 S .S . In d u s t r ies , Ca lcu t t a

200 V AS UDE VA NIS HI E D - In for m a t ion Sys t em s 2,608,895 BA, PGDBM 32 07 / 16/ 1979 54 En gin eer s In d ia Lt d .

201 VENKATANARAYANARAO A DGM - F in a n ce 2,556,176 B.Com , FCA/ ACA 22 06 / 06/ 1988 48 La lch an d J a in & Co.

202 VENKATARAMAN L Ch . Ma n a ger-O an d D 2,542,313 BSc, B Tech , Dip . in 27 01 / 27/ 1983 51 As h ok Leyla n d

Aut om ob i l e E ng i nee r i ng

203 VE NKATARAMANI S Ch . Ma n a ger -Oa n d D 2,408,939 BSC, Cert . Su pp ly Ch a in 34 06 / 23/ 1980 55 Ka ycee In d u s t r ie s Lt d .

M anagem en t , D M M,

Dip in ORM, DSM

204 VENKATESWARA RAO K ED - Corpora te Fin an ce 2,580,071 B.Com , FCA/ ACA 29 01 / 11/ 1982 54 Cen tra l Min e Plan n in g & Des ign Ltd .205 VIZIAS ARADH I V Dir ect or - HR 2,993,308 BSc, MA 34 12 / 21/ 1979 57 Bh a ra t Hea vy Pla te & Vess els

206 VUNIKILI VENKATA DGM - Op er a t ion s 2,737,940 BE (E lect ron ics & 32 10 / 31/ 1979 55 A P In d . In fra s t r u ct u re Corpn Ltd .

KRIS HNAMRAJ U Te lec om m u n ic a t io n

207 WADHWA S ARVE SH KUMAR DGM - IS 2,486,045 BE 27 01 / 17/ 1983 50 Nil

208 WANKHADE B S * Sr . Ma n a ger -S a les 2,142,976 MS c 36 11 / 14/ 1980 60 Hin d u s t a n Or ga n ic Ch em ica ls Lt d .

209 WANKHADE PRAKASH LAXMAN Sr . Ma n a ger - Ma ter ia ls 2,589,924 BE (Civil) 21 04/ 03/ 1989 47 Nil

210 WATE HE MANT RAMCHANDRA GM - Reta il 2,563,463 B Tech (Ch em ica l), DMM 29 03 / 12/ 1982 51 D.M.C.C. Ltd .

211 W ATWE DINKAR VINAYAK DGM - Op er a t ion s 2,702,143 BS C 36 11 / 05 / 1975 59 Hin d u s t a n Or ga n ic Ch em ica ls Lt d .

1 * These employees were employed fo r pa r t o f the year and were in rece ip t o f remun era t ion a t the ra te o f no t less tha n Rs . 200 ,000 / - pe rmonth .

2 E m p lo ym e n t in t h e co rp or a t io n is n on - co n tr a ct u a l

3 Employment p rov ides fo r te rmina t ion o f se rv ices by e ithe r pa r ty giving one month ’s no t ice

4 N on e of t h e E m p lo ye es a r e r ela t e d to a n y o f t h e Di re c to r s .

Sr. Na m e Designation/ Remu n era tion Qualification Exper- Da te of Age Last Employmen tNo. Natu re of Du ties (Rs.) ience J oin ing

(Yrs ) (MM/ D D / YYYY

1 2 3 4 5 6 7 8 9

Annexure - IV

STATEMENT SHOWING WOMEN EMPLOYEES AS ON MARCH 31, 2010

Group Total No . o f Em ploye e s No. o f Wom e nEm ploye e s % of Wom e nEm ploye e s

A 4 7 7 9 3 9 3 8 .2 2

B* — — —

C 6 3 9 6 4 0 4 6 .3 2

D 1 1 6 7 6 .0 3

TOTAL 1 1 2 9 1 8 0 4 7 .1 2

*HPCL h a s n o p o s ts c las s i f ied u n d er g ro u p ‘B’ as th e en t ry in n o n -ma n a g emen t g r ad es h a s b een r e - c las s i fied in

grou p ‘C’ effective 1.1 .19 94 .




29


Management Discussion & Analysis Report - 2009-10

DEVELOPMENTS IN THE ECONOMY AND THE OIL SECTOR

Indian econ omy is in a recovery mode. India’s GDP growth for 200 9-10 was 7 .4% as compa red to a growthrate of 6.7% in 20 08-09 . This growth level has been ach ieved d espi te low GDP growth of 0.2% in a gricul tu re

sector in 2009-10. The growth in the manufacturing sector was 11% in 2009-10, a significant improvement

from 3.2% in 2008-09. The services sector grew by 8.5% in 2009-10 with financing, insurance, real estate

and business services exhibi t ing a growth of about 10%.

Inflat ion increased sharply in the second half of the financial year. The WPI remained subdued in the fi rst

half of the financial year due to a high base of the previous year. As the base effect waned in the second

half of the year, inflat ion as indicated by the WPI increased sharply across al l categories.

Export s and import s s ta r ted turning a round in October-November 2009 a f te r cont rac t ing sharply due to

globa l recess ion. However , for the ful l year 2009-10, export s and import s dec l ined by 3.6% and 5.6%

respect ively. Capital flows have resumed on the back of global recovery and relat ively buoyant economic

prosp ects in th e coun try. The Ru pee app reciated b y abou t 13% agains t USD in 2 009 -10. India’s foreign

exchan ge reserves increased b y USD 27 bi l lion d u ring 2009 -10 to reach USD 27 9 bi ll ion at March end 2 010 .

The consu mpt ion of pe t roleum produ cts in the coun t ry increased b y 3.4% in 2009-10 compared to 3 .6% in

2008 -09. The consu mpt ion of t ranspor ta t ion fu e ls was qui te robust . Pe t rol an d diese l consu mpt ion increased

by 14% and 9% respect ively. Turnaround in the aviat ion sector was reflected in the revival of ATF sales.

ATF c onsumpt i on i nc re a se d by 4 . 6% i n 2009-10 c ompa re d t o a de c l i ne o f 2 . 6% i n 2008-09 . Na pht ha

consu mp tion decl ined by 26% r eflect ing greater a vailabi li ty of na tu ral gas. FO/ LSHS sa les a lso declined

du e to pr ice / su bs t i tut ion e ffec t .

The recovery in the global economy has been stronger than expected. Recovery is rather tepid in many of

the advanced countries but qui te st rong in most developing economies. IMF expects the Indian economy

to grow by 8.8% in 2010 and 8.4% in 2011. Inflat ion remains a major source of concern in India. Oil price

recovered sharply from the severe fal l precipi tated by the financial crisis and has remained between USD

70 and USD 80 a barrel since mid 2009. The near-term outlook for oi l price depends on balance between

increase in demand as recovery ga ins t rac t ion and the supply response f rom producer na t ions . A robust

recovery coupled wi th higher than expec ted oi l demand would push pr ices up. On the supply s ide , non-

OPEC produ ction, virtu al ly stagna nt s ince 2004 , has sta rted rising once again. OPEC’s pr odu ction of NGLsand other l iquids is also rising sharply.

PERFORMANCE PROFILE

Turn over of th e Compan y for the year 200 9-10 is Rs. 1,08,59 9 crores. The petroleum produ ct sales (inclu ding

export s ) by the Company increased by 3.5% during the year 2009-10 to reach 26.3 mi l l ion tonnes . The

Mumbai and Visakh re f iner ies processed 15.76 mi l l ion tonnes of c rude dur ing the year . The combined

GRM of the refineries was US $ 2.68 / bbl . The pipel ine th ru pu t increa sed to 11.95 mil lion ton nes in 2 009 -

10 from 10 .58 m illion tonn es in 200 8-09.

The Profi t after Tax increased by 126% to Rs.1,301 crores in 2009-10 from Rs. 575 crores in the previous

year. The higher PAT was ach ieved a fter ab sorbing a n u nd er-recovery of Rs.1,225 crores on sa les of sens i t ive

petroleum products during the year. The depreciat ion charge was Rs.1,164 crores vis-à-vis Rs. 981 crores

in 2008-09 largely due to commissioning of the Euro IV fuel projects at Mumbai and Visakh refineries.

Inte res t cos t in 2009-10 was reduced cons iderably to Rs . 904 c rores f rom Rs. 2083 c rores in 2008-09through judic ious t reasury management . High cos t debts were re t i red and replaced wi th low cos t debt .

Borrowings during the year were mainly through short term foreign currency loans and commercial paper.

Long te rm loans were borrowed a t compet i t ive ra tes . The Corpora t ion was a l so able to se l l Oi l Bonds

amounting to Rs. 5,270 crores at opt imal levels to reduce the borrowings.

For the year 2009-10, HPCL ha s proposed a dividend of Rs . 12.00 per s har e , compared to Rs . 5 .25 per sh are

in 200 8-09. The dividen d would resu l t in a total payout of Rs. 473 crores including dividend distribu t ion t ax.

The 200 9-10 perform an ce of the Corp orat ion h as qu al ified for ‘Excellent’ rat ing in term s of the Memoran du m

of Understanding (MOU) signed with the Government of India.



30



REFINERIES

Mumbai RefineryMumbai Refinery (MR) achieved a crude throughput of 6.965 MMT in 2009-10 compared to 6.651 MMT in

the 2008-09. Capaci ty ut i l izat ion during the year was 107%.

Performance Profi le of MR

Parameter

Crude Proc e s s e d - MMTPA 6 .9 6 5

Capac it y Ut ilis at io n - % 1 0 7

Fue l & Los s - wt % 7 .6 4

Dis t i llat e Yie lds - wt % 7 1 .8

Spe c ific En e rgy Co n s um pt io n -MBTU/ BBL/ NRGF 8 8 .7

The re f inery increased i t s di s t i l l a te yie lds to 71.8% from 69.9% achieved in the previous year through

effec t ive management of the c rude mix and opt imiza t ion of the opera t iona l parameters to enhance thetota l di s t i l l a te .

MR became th e fi rst Indian PSU refinery to comm ence pr odu ction of BS IV specificat ion MS in J an u ary

2010 following the commissioning of its Green Fuels Emissions Control Project (GFEC). The refinery also

enh an ced i ts capa bili ty to produ ce HSD to Eu ro-III specificat ions. The Refinery also comm issioned Int egrated

Effluent Treatmen t Plant (IETP) to comply with the stringent sta tu tory environm ent guidelines. The Refinery

switched over to Re-l iquified Natural Gas (RLNG) firing in furnaces and capt ive power plant , reducing the

emissions as well as internal fuel costs. MR also started production of Viscosi ty grade (VG-10 and VG-30)

aspha l t and envi ronment f r i endly Rubber Process ing Oi l (RPO) for export to Japan. MR successful ly

comm issioned Moun ded Bu llet Storage faci li t ies in J u ne 2 009 to faci li tate safe storage of LPG and enh an cing

overal l r isk management in the refinery.

The Refinery signed agreement with US Trade Development Agency (USTDA) for Technical assistance grant

for developing a Feas ibil ity Report for th e Refinery Bottoms Upgrad at ion Project an d to t ra in th e person nel

on Asse t Integr i ty Management .

A world class modern Qu ality control labora tory, fu l ly equipped with s tate-of-the-ar t techn ology an d m odern

analyt ical equipment was commissioned this year, enhancing the qual i ty control efforts of the Refinery.

MR is in the process of instal l ing a new FCCU unit of 1.45 Mil l ion Metric Tonne per Annum (MMTPA)

capa city to au gment t he p rodu ction of value ad ded p rodu cts l ike LPG, MS an d HSD. The project is expected

to be comp leted m echan ical ly du ring second qu arter of the cu rren t year. A Lu be Oil Upgrada t ion Project is

also being implemented in the Refinery to upgrade the 200 TMTPA Lube Oil Base stock (LOBS) quality to

Grou p-II/ I II sp ec ifica t ions . The Projec t is expec ted to be comm iss ioned in th e second qu ar t e r of th e

current year a t a cos t of Rs . 1030 Crores .

Visakh Refinery

Visakh Refinery (VR) processed 8.797 MMT of crude in 2009-10, achieving a capacity utilization of 117%.

The crude throughput of the Refinery in 2008-09 was 9.155 MMT. The lower throughput in 2009-10 was

mainly on accoun t of plan ned turn aroun d, inspec t ion of one of the k ey un it s a nd inte rconnec t ion of new

and old cooling water system.

Performance Profi le of VR

Parameter

Crude Proc e s s e d - MMTPA 8 .7 9 7

Capac it y Ut ilis at io n - % 1 1 7

Fue l & Los s - wt % 6 .7 7

Dis t i llat e Yie lds - wt % 7 3 .5

Spe c ific En e rgy Co n s um pt io n - MBTU/ BBL/ NRGF 9 1 .0



31



VR commissioned a new addit ional Pre Fract ionat ing Drum (PFD) in October 2009. The project has been

deve loped in-house an d h as increased th roughpu t by 2 00 TMTPA.VR commiss ioned Eu ro-II I/ IV MS produ ct ion fac i li t ies u nd er Clean Fu e l Projec t an d s ta r ted su pplying

Euro III MS by September 2009 and Euro IV MS by January 2010. On the energy conservat ion front , VR

c a r r i e d ou t on l i ne fu rna c e c l e a n i ng us i ng ne w t e c hno l ogy o f so l i d c he mi c a l sp ra y re su l t i ng i n s t a c k

t e mpe ra t u re s sus t a i n i ng c rude t h rupu t a nd i nc re a se d he a t e r e f f i c i e nc i e s . The Re f i ne ry suc c e s s fu l l y

commiss ioned Mounded bul le t s torage fac i l i t i es in September 2009 to fac i l i t a te sa fe s torage of LPG/

Propylene. VR also commissioned Bitumen Coastal Loading Faci l i ty and the fi rst parcel of bi tumen was

exported in September 2009. The Refinery started producing VG 10 bi tumen grade from February 2010.

The In t e gra t e d Re fi ne ry Bus i ne s s Improve me nt P rogra m in i t ia t e d wi t h t h e h e lp o f M/ s . Sh e ll G loba l

Solut ions Internat ional and Centre for High Technology is under implementat ion in the Refinery and t i l l

date h as p rovided ben efi ts to the tun e of US $13.8 9 mil lion (20.14 cents / bbl).

Installation of Single Point Mooring (SPM) facilities to facilitate unloading of crude from VLCCs is underway

at VR. The SPM wil l give an advantage in freight cost and reduce wharfage charges thereby improving the

refinery economics. The p roject facil it ies inclu de a bu oy in th e sea for m ooring the VLCC, a 48" diameter.4.2

Km sub-sea offshore pipe l ine & and 48" diameter , 1 .5 Km onshore Pipe l ine . This onshore pipe l ine i s

proposed to be conn ected to th e crud e cavern s torage inten ded to be ins tal led by Ind ian Stra tegic Petroleum

Reserves Limited (ISPRL) from where i t wil l be pumped to the refinery crude tanks using the exist ing 36"

crude u nloading l ine . Su ch a n a rran gement wou ld obvia te the need for ad di tiona l c rude s torage tanks in

the Refinery. The est imated cost of the project is Rs. 643.46 Crores. The project has been mechanical ly

completed in May 2010 and wil l be commissioned by September, 2010.

Other Projects

With the greater avai labi l i ty of natural gas and subsequent subst i tut ion of naphtha with gas, disposal of

naphtha is a major chal lenge for both the refineries. With commissioning of mega Green Fuel Emission

Control (GFEC) and Clean Fuel Project (CFP) at MR and VR respectively, the refineries are able to convert

naphtha into MS production. Thus, the MS production capabil i ty has been increased significant ly.

New Diesel Hydrotreater (DHT) Units are being instal led in both the refineries, at a cost of about 7000

crores to increas e the ca paci ty to produ ce Eu ro-IV grades of HSD. The p rojects ar e expected to be completed

by Au gust -September 2011.

H P C L h a s v e n t u r e d i n t o t h e W i n d f a r m p r o j e c t t o b r i d g e t h e p o w e r d e m a n d a n d s u p p l y g a p i n a n

environm enta l ly clean an d affordab le ma nn er. The pr oject comm its to genera te 100 MW in d ifferent ph as es.

Under the fi rst phase, a total of 25 MW capaci ty wind farms have been commissioned in Rajasthan and

Maharas ht ra . Another 2 5 MW capac ity wind fa rm is u nder cons t ruc t ion in Rajas th an an d i s expec ted to be

ready by December 20 10.

HPCL Refineries corporate R&D centre has ini t iated new collaborat ive projects with IITs at Chennai &

Delhi in add it ion to th e ongoing projects with IIT-Kan pu r, IISc, Centr al Inst i tut e of Mining & Fu els Research

(CIMFR) and GITAM Universi ty. The projects in the areas of monoli thic reactors, development of ionic

l iquid catalysts, Bio hydrogen production have been completed. New R&D projects have also been taken

up during the year for development of catalysts for production of hydrogen from methane and development

of integrated photo-catalyt ic systems for efficient conversion in of CO2 to chemicals.

The Company is assessing the opt ion of a new grassroots refinery on the West Coast of India, especial ly

in view of variou s cons traints being experienced in th e expan sion / modern izat ion of the Mu mb ai Refinery.A feasibi l i ty study has been commissioned for the project and land is being ident ified.

Imports & Exports

The Company purchased 15.71 MMT of crude oi l during the year, of this about 11.59 MMT was imported.

The Arab / Persian gulf region continu ed to be the major sour ce of imported cru de accoun ting for near ly

80% of the imports. The balance crude imports were from the West African and the Far East region.

The Compa ny increased produ ct procurement from dom est ic sources d ur ing th e year . As a resul t , produc t

imports du ring 2009 -10 were 987 TMT, significan t ly less th an 220 4 TMT imported in 200 8-09. The resu l tant

foreign cu rren cy savings were abou t US$ 6 99 Mil lion (Rs. 33 34 Crs.). Major produ cts imported were Diesel



32



(44%), LPG (40%) and MS (12 %). During the year, 1827 TMT of products valued at Rs. 4889 crores were

exported registering a growth of around 18% in volume terms.Ship cha rtering act ivit ies picked up st eam in th e second year after comm encem ent of indepen den t char tering

act ivi t ies. Du ring th e year twen ty seven fixtur es were fina l ized at competi t ive rates for s pot cru de oi l, term

LPG and coastal movement of Lube Base Oils. Address Commission of approximately Rs. 5 crores were

earned during the year from this act ivi ty.

MARKETING

Market sales (excluding exports & PSU sales) for the year 2009-10 were 24.39 MMT compared with 23.83

MMT in 200 8-09, a growth of 2.3 %.

Retai l

Retai l sales of MS by the Company increased by 13.3% in the year 2009-10 compared to Industry (PSU)

growth of 12.9%. HSD s ales grew by 7.9% against Indu stry (PSU) growth of 8.1%. HPCL retained i ts m ark et

share in MS and HSD (combined) during the year 2009-10. Auto LPG sales increased by about 30% for the

year with addit ion of 34 Auto LPG Dispensing stat ions. Compressed Natural Gas (CNG) sales increased by

19.6% achieving a volume of 146.2 TMT. ARB activities recorded a growth of 27% during the year. Use of

technology to ensure the operation of automated outlets under NANO (NO AUTOMATION NO OPERATION)

program wi l l be a focus a rea in the coming year . Marke t ing par t i c ipa t ion of HPCL i s proposed to be

increased with network expansion and efforts wil l be directed at becoming a market leader at the district

level.

A v i a t i o n

The ful l service domest ic airl ines continued to reel under financial crisis . The low cost carriers, though,

have been faring well . The sector witnessed signs of recovery during Q4FY10 with increasing passenger

and cargo traffic , stabi l izat ion of airfares and increased load factors due to route rat ional izat ion by the

a i r l ines . The ATF sa les by the Company increased by 9.1% compared to indus t ry growth of 3 .9%. The

Company commands a marke t share of 16.1% in the avia t ion sa les .

In view of the recovery in the sector, the Company plans to continue i ts focus on gaining market share

while balancing top-l ine and bottom-line. As substant ial market coverage has been achieved by aggressive

ne t work e xpa ns i on dur i ng t he pa s t t wo ye a r s , t he SBU p l a ns t o sus t a i n t he i ma ge o f be i ng t he mos t

prefe rred suppl ie r in the marke t .

Indus tr i a l & Consumer

Ind u strial & Consu mer bu siness l ine of the Comp an y was ad versely affected by loss of Naph tha / FO/ LSHS

volumes to natural gas due to considerable improvement in the avai labi l i ty of the lat ter. Naphtha sales

declined s u bsta nt ial ly while FO/ LSHS s ales were affected ma rgina l ly. However, sa les of other m ajor produ cts

such as Bi tumen, HSD, e tc increased.

HPC has ident ified “Bunkering” as potent ial area to make up for the drop in sales especial ly of Furnace Oil

in inland trade. During the year, the Corporat ion doubled storage Capaci ty of FO-380 CST & HFHSD at

Sewree te rmina l (Mumbai ) f rom 7900 Kl to 15800 Kl and dedica ted the same for exc lus ive bunker ing

purpose. A 4.2 km bulk bi tumen pipel ine was commissioned from Visakh refinery to jet ty and exports of

bulk bi tumen were commenced with a consignment of 8.2 TMT to TIPCO Bangkok.

Lubes

The pr esent s ize of th e Ind ian Lubrican t ma rket is app rox. 1500 TMTPA, comprising the au tomotive segment

of abou t 87 0 TMTPA an d 63 0 TMTPA of th e indu strial an d d irect segmen t . The core a nd large sector ind u stries

l ike Railways, Collieries, State Tran sport Underta kings (STUs), Steel, Cemen t , Tyre, etc . accou nt for a rou nd

50% of the indus t r ia l and di rec t marke t , and the ba lance i s di s t r ibuted across diverse sec tors such as

su gar, ma rine, fisheries, fert i lizers, e tc . Despite the slowdown an d recessionar y t rend in th e Ind ian Indu stry

till 3 rd Qu arter of th e fiscal 2009-10 , total Lu bes s ales of 494 TMT were achieved du ring the year, comp rising

215 TMT of Value Added Lubes and 279 TMT of Base Oils.

The t rend of cont inuously upgrading product range in l ine wi th evolving consumer needs and spec i f ic



33



cus tomer requi rements was cont inued dur ing the year wi th support f rom R&D group. Notable product

addi t ions dur ing the year a re : HP SAO (UG) for Gabriel with expected volume of 800 KL per annum

Supreme Elasto 710 – low PAH rubber processing oi l for use in Tyre industry.

Coning Oil for textile industry

As a part of Brand Building exercise new Television Commercials for HP Engine Oil & HP Milcy Turbo have

been undertaken. HP Milcy Turbo Star Contest was conducted for Retai l out lets . Innovative SMS based

Promotiona l Activi ty was carr ied ou t for HP Milcy Tu rbo. A t ie-up was m ad e with M/ s. Adha r Retai l ing

(Future Group Company) for extending reach in rural areas with ini t ial supplies in Punjab. Twenty-three

new Lube CFAs and Dis t r ibutors were commiss ioned dur ing the year in unrepresented marke ts . Genuine

Oil Agreements entered int o with J ohn Deere and Bajaj Au to.

Efforts for increas ing revenu e contribu t ion from Interna t iona l Mark ets continu ed. A Techn ology an d Mark et ing

t ie-up was m ade with Idemitsu Kosan of J apa n for Treated Residu e Aroma tic Extract (TRAE) with guar an teed

upliftment of 30 TMTPA. The product for export market has been named as Diana Process Oil SR – 28. Aqua nt i ty of 1330 MT has been exported to South Korea du r ing th e year .

LPG

HPCL surpassed i t s neares t compet i tor in overa l l LPG marke t share and achieved 26.1% marke t share

du ring 200 9-10 . Total LPG Sales du ring the year were 3.2 6 MMT ach ieving a growth of 9.4%. In th e domes t ic

segment , HPCL regis te red highes t growth in the Indust ry . Marke t l eadership was mainta ined in Non-

Domestic (ND) Segment with 35% market share and yet another milestone of 400 TMT sales was crossed.

HPCL c ommi ss i one d h i ghe s t e ve r 147 Ne w HP Ga s Di s t r i bu t o r s a nd e nro l l e d 25 l a khs ne w dome s t i c

customer equal to about 30% of total industry enrolment . With a view to developing infrastructure, HPCL

commiss ioned a 44 TMTPA bot t ling plant a t I rum pan am, 3 x 50 0 MT mound ed s torage a t Kha pri and 2x1000

MT mou nd ed stora ge at Bah adu rgarh . A total of 314 4 TMT LPG was bot t led du ring the year with a growth of

9% over historical. The Company achieved a thruput of 1.8 MMTPA at MLIF against historical of 1.7 MMTPA.

To meet the future demand of LPG, work is in progress for new LPG Bott l ing Plants at Bhatinda (Punjab),

Hazira (Gujarat), Anantpur (Andhra Pradesh). Two new LPG Pipelines viz Mangalore-Bangalore LPG Pipelineand Mahul-Uran-Chakan (Pune) are also proposed for t ransportat ion of LPG.

HPCL intr odu ced SMS/ IVRS ba sed r efill booking service in D elhi, in line with Vision 2 01 5 of MOP&NG to

create a different iat ion through services in commodity market l ike LPG. This IVR based refi l l booking

sys tem e l imina tes the human inte rvent ion in re f i l l bookings . Suraksha Sanche tna , a unique and f i rs t of

i ts kind mass communicat ion program for “Safety in usage of LPG”, has been successful ly undertaken by

LPG SBU t o c re a t e pub l i c a wa re ne s s on sa fe t y a nd c onse rva t i on o f LPG. LPG SBU ha s de ve l ope d a

compr ehen sive t raining modu le for distributors of weaker sect ion u nd er “Project Saksh am ” to imp art t ra ining

including behavioral and funct ional competencies of the distributors so as to bui ld relat ionships with al l

stakeholders resul t ing in efficient and profi table distributorship operat ion.

To fur ther increase pene t ra t ion in rura l a reas as wel l as enhance ava i labi l i ty of LPG in rura l pocke ts ,

HPCL shal l be aggressively taking up rural schemes “HP Gas Rasoi Ghar” and “Rajiv Gandhi Gramin LPG

Vitarak” in line with MOP&NG Vision 2015.

Operat i ons and Di s tr i but i on

During the year 2009-10, HPCL product storage & distribut ion faci l i t ies at depots & terminals handled a

record volume of white oi l , black oi l & lube products for support ing the highest ever sales of 11.3 MMT of

HSD, 3.22 MMT of MS an d 5 .019 MMT of other produ cts includ ing SKO, ATF, FO, Naph tha etc .

A number of key ini t i a t ives were under taken for achieving & sus ta ining the opera t iona l exce l lence in

critical areas viz. safety & security, logistics, customer delight, etc.

Availabi l i ty of BS-IV grade fuels was ensured at 13 ci t ies across India from Apri l 1, 2010 as per the

Government di rec t ives .



34



To enhance customer del ight different iated services such as assured product del iveries within 2 hrs

of report ing of t rucks, prompt t reatment on account reconci l iat ion, etc . were implemented Closing inventories of white oi ls were opt imized to only 9.5 days cover against the norm of 12.5 days,

reducing significant inventory holding costs.

Procurement f rom domest ic sources was increased thereby achieving a subs tant ia l cos t reduc t ion.

Improved operat ional efficiency across al l locat ions ensured several landmark achievements, such as

ha ndl ing of 167 ocean tan kers a t Mun dra te rmina l an d loading of 109 ta nk wagon rak es du r ing a s ingle

mont h a t Ba ha du rga rh t ermi na l.

Significant reduct ion of coastal losses in ocean tankers from (–0.31 %) to (– 0.26 %) during the year

ha s r esul ted in a savings of Rs . 10.9 c rores .

Tank Farm Mana gement Sys tem of produ ct t anks was integra ted with th e ERP sys tem a t 24 depots &

termina ls for re l i able & seamless inventory management , Indent Management Sys tem module for

improved handl ing & execut ion of cus tomer indents was rol led out for a l l 95 loca t ions , CCTV for

enhanced securi ty vigi l have been instal led at 21 locat ions, Vehicle Monitoring System were instal ledin addit ional 4900 tank trucks, a cri t ical tool in our Q & Q effort .

En ha nced perform an ce & monitoring on Safety & Secur i ty of POL insta l lat ions wil l be th e prime focus

area for opera t ions and di s t r ibut ion. In addi t ion, a im wi l l be to opt imize inventory leve l s , reduce

logist ics costs, economize on operat ing cost with higher productivi ty & efficiency and develop new

infras t ruc ture a t s t ra tegic loca t ions to ensure be t te r se rvice to our end cus tomers .

Projects & Pipel ines

Gur u Gobind Singh Refinery Product Evacua t ion Project (GGSRPEP): HPCL Mittal En ergy Ltd. a J V compa ny

of HPCL is in the p rocess of set t ing up a 9 MMTPA capa city grass root refinery near Bath inda, Pu njab. The

project is u nd er imp lemen tat ion an d is slated for complet ion by Dec 201 0/ March 20 11. HPCL ha s been

entrusted with the responsibi l i ty of evacuat ion of different products proposed to be produced by GGSR.

Following cross country pipel ines are proposed to faci l i tate product evacuat ion:

30 km long, 10" diameter pipel ine from Raman Mandi-Bathinda

250 kms long, 18" diameter pipel ine from Raman Mandi – Bahadurgarh

Board approval for Rs. 605.40 Crores has been obtained for implementat ion of this pipel ine project and the

mechanical complet ion of pipel ines are expected by December 2010.

Addit ional Product Tankages were commissioned during the year at Hazira Depot (2x 1200 KL AG storage

tanks), Devangunthi Terminal (4x5000 KL AG storage tanks) and Mathura depot (1x5000 KL AG storage

tank ) a t a combined of about Rs . 24 c rores .

P i p e l i n e s

Pipel ine depar tmen t ach ieved th e highest ever total combined thr u pu t of 11.95 MMT in VVSPL, MPSPL an d

MDPL against the target thruput of 10.0 MMT during the financial year 2009-10. MDPL achieved record

pipeline th ru pu t of 4.79 MMT against the design cap aci ty of 5 MMT in th e 2n d ful l year of operat ion i tself.

Lube Oil Pipel ine achieved record thruput of 363.08 TMT during the year.

New projec t s / Future p l ans

A nu mber of projec t s a re envisaged / a re u nder cons t ruc t ion to expan d di s t r ibut ion infras t ruc tu re in line

with growing demand. Some of the said projects are as under:

Bahadurgarh-Tikrikalan Pipel ine: Laying of 2 nos. product pipelines for MS, HSD & SKO of 12 km long with

8"/ 10" diam eter from Bah adu rgarh Termina l to Tikrikalan Termina l at an est imated cost of Rs. 60 crores.

Tikrikalan Terminal : Construct ion of a new grass root Terminal with receipt faci l i t ies from Bahadurgarh-

Tikrikalan Pipel ine for handling MS, HSD, SKO & Ethanol at an est imated cost of Rs. 78.75 crores.

New Terminal at Bihta (Near Patna): Construct ion of a new grass root Depot for handling White Oil (MS,



35



HSD & SKO) & Black Oil (FO & Bitumen) including Wagon Unloading Siding at an estimated cost of Rs.

142.50 c rores .

Addit iona l Tan kage a t MDPL Locat ions : Constr u ct ion of addit iona l tan kages for MS, HSD & SKO with total

tan kage capaci ty of 997 45 KL at Mun dra , Ajmer, Ja ipur, Rewari & Bah adu rgarh to meet increa sing deman d/

flexibility of pipeline operations at an estimated cost of Rs. 54.4 crores.

Resi tement of Market ing Terminals at Vizag: HPCL has taken up the re-si tement of market ing terminals

at Visakh to augment exist ing market ing infrastructure as well as to create addit ional space for Visakh

refinery expansion projects. The market ing terminals i .e . White Oil Terminal , Black Oil terminal and LPG

Bott ling an d Mark et ing Plant a re being resi ted to an ideally su i ted locat ion within VPT area at a n est imated

cos t of about Rs . 750 c rores . Tankages in the Whi te oi l and Black Oi l t e rmina ls a re be ing more than

dou bled- from cu rrent 43,00 0KL to 94,000 KL in the Black Oil termina l and from cu rren t 63,00 0KL to 1,68,00 0

KL in th e White Oil terminal . Black Oil terminal is sch edu led to b e comm issioned in J u ly 201 0, White Oil

te rmina l by J un e 2011 a nd LPG termina l and Bot tling Plant by Febru ary 2011.

Ennore Terminal Project : Allotment of 108 acres of land was obtained from the Ministry of Industry and

Commerce in March 2009. Major por t ion of the compound wal l , l and deve lopment and s tone column

foundat ion works has been comple ted. Other ac t ivi t i es such as cons t ruc t ion of t ankages and bui ldings ,

rai lway siding works a nd external pipeline laying works h ave been awar ded a nd are in p rogress. All importan t

tenders have been f loa ted and procurement has been f ina l ized for major i t ems. The cons t ruc t ion works

are expected to be completed by Feb. 2011.

R&D

Ou r R&D is well rep resen ted in tech n ical bodies like BIS, SAE, IPSS, STLE, NLGI, TSI etc. with cont ribu tions

ranging from review of specifications to drafting of specifications. Development of several new products in

the au tomot ive, indu s t r ia l and grease sec tors i s be ing taken up to meet the curren t s t r ingent d eman ds for

OEM’s a nd other ind u stry m ember s including core sectors l ike Defence, mining, steel etc . The produ cts

being developed wil l have approvals of OEM’s and major industry users. Collaborat ive projects wil l be

taken up with various inst i tut ions l ike NIT, IIT, Indian Inst i tute of Petroleum, Dehradun, RDCIS, Ranchi ,

etc . for understanding the impacts of various chemicals on different formulat ions as fundamental research.

Environmental ly favourable products for reduct ion of ground water pol lut ion by developing biodegradable

products and noise pol lut ion by frict ion modified oi ls are proposed to be developed. The commitment forenergy conservat ions wil l be met through development of energy efficient gear oi ls , spindle and sl ide way

lub r ican ts . Pe t roleum conserva t ion is proposed to b e ach ieved th rough high dra in oils / greases in au tomot ive

and indust r ia l sec tors . The cus tomer educa t ion programmes a re a l so be ing conducted through seminars

an d tra ining to cu stom er’s st aff for qu al ity monitoring, usa ge and s torage.

QUALITY CONTROL (QC)

QC is aligned to fulfill the HP QC vision of ensuring delivery of quality products consistently to customers.

QC Department obtained NABL accredi tat ion for three more labs this year (total 7 Nos so far) out of 39

Lab s , which fur th er enh an ces the t ru s t of th e pu bl ic on HPCL’s pr odu cts . The a im is to ha ve NABL

accredi tat ion for al l our labs in India. QC audits of locat ions wil l be stepped up for further improvements.

The QC Officers are being trained to equip them with the best pract ices being fol lowed. Current efforts of

spreading qual i ty awareness among operat ing personnel in the locat ions wil l be augmented.

SAFETY, HEALTH & ENVIRONMENT

HPCL mainta ins high s tandards of sa fe ty , hea l th and envi ronment care a t a l l i t s opera t ing loca t ions ,

a lways ensur ing tha t increas ing sca le of opera t ions has no nega t ive impact on the s tandards of sa fe ty ,

hea l th and envi ronment . Es tabl i shed sys tems and procedures a re cons tant ly revised for improvement to

achieve higher standards of safety, occupational heal th and environment protect ion. All major locat ions of

HPCL ha ve well equ ipped hea l th care faci li t ies / arra ngemen ts. Ou r m ajor mark et ing locat ions h ave been

awarded ISO 14001, ISRS & OHSAS 18001 certifications. An initiative called Project “Aarogya” has been

s ta r ted for c rea t ing awareness among employees about hea l th re la ted i ssues .

EXPLORATION & PRODUCTION

HP-E&P portfol io of assets has been buil t and enhanced strategical ly by part icipat ing in competi t ive bid



36



rounds. Ti l l date, HPCL has interests in 19 nos. E&P blocks in India, two blocks in Egypt and one each in

Oman and Austral ia . All the blocks awarded during bid rounds are progressing well as per the approved

work p rograms .

The main thrust of HP E&P is on balancing & consolidat ing the exist ing portfol io with minimal risk and

increas ing the va lue for shareholders .

In 2009-10, HPCL formed consort iums with well establ ished E&P companies to part icipate in NELP-VIII,

bidding round. HP E&P expenditure on exist ing blocks during the financial year was Rs. 245.7 crores to

meet the requirements of minimum work programs. During the XI Plan period (2007 to 2012), an out lay of

Rs. 2000 crores is proposed for upstream act ivi t ies. An expenditure of Rs. 398 crores has been made t i l l

date. The balan ce amou nt sh al l be u t i lized for acqu isit ion of part icipat ing interest in d iscovered or ap pra isal

stage assets overseas to enhance the value of the exist ing portfol io. Well reputed & experienced advisors

a nd i n t e rna t i ona l l y a c c l a i me d c onsu l t a n t s a re a s s i s t i ng HPCL i n a s se s s i ng t he r e a l wor t h o f a s se t s

avai lable in India and overseas.

HPC plans to part icipate as leader of the consort ium for bidding as an operator in NELP IX Bidding round

an d at ta in Operators hip. In i ts end eavour to meet the futu re chal lenges HPCL is focus ing on the developm ent

of in house infras t ruc ture , capabi l i t i es and competenc ies .

INFORMATION SYSTEMS

The Ent e rp r i s e Re sourc e P l a nn i ng (ERP) sys t e m ha s be e n suppor t i ng ma i n bus i ne s s p roc e s se s o f t he

Corporat ion for over 3 years n ow. To get more ben efi t out of the system, various add on a pplicat ions, wh ich

bolt on to the ERP system, have been put in place.

ERP system has made i t possible to reduce the t ime taken for closing the quarterly, half yearly and annual

accoun ts . Stan dardiza t ion of bu s iness processes in the s ys tem ha s resu lted in be t te r man agement cont rol.

The sys tem enables the dec i s ion makers a t var ious leve l s in t aking t imely bus iness dec i s ions based on

on l ine & accurate information avai lable from the system. Cost of operat ions can be t racked easi ly in the

sys tem which he lps the managers in cont rol l ing them.

Effec t iveness of the usage of the sys tem would depend on the competency leve ls of the users of the

sys t e m. A c ompre he ns i ve t r a i n i ng sc he du l e ha s be e n pu t i n p l a c e t o e nha nc e t he use r c ompe t e nc i e s .

Close to 2000 man days of t ra ining ha ve been p rovided du r ing th e las t year to th e end us ers of the s ys temcovering the funct ional and operat ional areas of the system.

Informat i on Sys tems Center : During the year , Informat ion Systems Center ( ISC) was inaugura ted a t

HITEC City, Hyderab ad. ISC is spr ead over 1.3 a cres with sta te-of-art facil it ies tha t h ost 40 0+ servers th at

run various IT systems, Network & Operat ions Control Center, Securi ty Operat ions Center, Development

Center & Tra ining cente r . ISC has been made secure wi th Infras t ruc ture fac i l i t i es inc luding Integra ted

Bui lding Management Sys tem wi th access cont rol s , Very Ear ly smoke de tec t ion sys tem, water less f i re

sys tems and leak de tec t ion sys tem.

New Initiatives: Based on the foundation of the ERP system, a mult i tude of IT enabled solut ions have

been developed in the Corporat ion. ERP platform also enables development of real t ime interfaces to the

IT enabled systems of our various business partners. Various such new ini t iat ives have been implemented

and sustained efforts continue to bring in more of these to real i ty.

An Indent Management System (IMS) has been implemented to streamline the prevalent indenting process.

Deale rs & cus tomers a re able to send indents by SMS. Fac i l i ty for plac ing indents through web-basedcustomer por ta l has a l so been made ava i lable to our ins t i tut iona l cus tomers . The sys tem has enabled

s tage-wise mapping of indents and i t s subsequent progress ion in turn achieving an end to end solut ion

with the desired t ransparency. Customer sat isfact ion t racking has become possible by various MIS reports

on indent execut ion.

E -ba nk i ng i n i t i a t i ve ha s be e n e xpa nde d t o c ove r a l l pa yme nt s t o ou t s i de pa r t i e s i nc l ud i ng ve ndors ,

contractors and employees. E-payment has been rol led out to al l locat ions, i .e . Zonal Offices, Refineries,

Market ing & Corpora te HQOs. Paymen t inform ation flows seam lessly as ERP server commu nicates d irect ly

with th e ban k servers withou t an y man ua l inte rvent ion. E-payment is h e lping in br inging abou t t ran sparen cy

in the payment process and a l so ensures t imely payment to a l l vendors and employees .



37



HPCL has ins t i tuted on l ine fund t ransfer or e -col lec t ion in Sa les process . This ini t i a t ive has enabled

fas te r col lec t ion & hence be t te r funds management .

In the a rea of procurement , e - tender ing process has been implemented for c rude procurement where in

suppliers of crude are able to submit their quotat ions on l ine in a secure way. System for on l ine vendor

registrat ion through the Internet has been implemented. Similarly the system of host ing of tenders on the

inte rne t has a l so been implemented.

A customer portal is being maintained which provides complete visibi l i ty to the direct customers, dealers

& distributors for their t ransact ions with the Corporat ion. Similarly a portal for the t ransporters enables

them to access information pertaining to their t ransact ions with the Corporat ion. A number of work flow

based appl ica t ions have been implemented for employee se l f se rvice so as to speed up the process of

benef i t s adminis t ra t ion. Capi ta l budget ing process for Non-plan projec t s as wel l as revenue budget ing

process has been captured in the sys tem through workf low based appl ica t ion.

On HR front , two ini t iat ives: Sa ma vesh (mea ning ‘Inclu sion’: Persona l , professional an d cu l tura l integrat ion

of new recru i t s ) & San tu sh t i (mea n ing ‘Comp le te sa t i s fac t ion ’:e -enab led fina l se t t l emen t process for

separat ing employees) have been implemented. Both these are electronic workflow processes and integrate

with ERP as well as other on l ine systems.

Communication Infrastructure: To enab le u sers from a cross th e Corporat ion’s 45 0+ locat ions to access

the various Systems and faci l i t ies redundant hybrid Wide Area Network consist ing of PSTN leased l ines,

MPLS circui ts , VSATs, Radio Links an d CDMA/ GPRS circu i ts h ave been s et u p. Webcas t faci l it ies are

being u sed effect ively to comm u nicate importa nt mess ages & to cover m ajor fu nct ions l ive to the em ployees

at al l the locat ions. Video conferencing faci l i t ies between locat ions are being used to cut the t ravel needs

and thus a l so the cos t s involved.

An Information System Securi ty Policy has been formulated to protect al l the Information Assets of the

Corpora t i on . A l l t he In fo rma t i on Sys t e ms Asse t s l i ke s e rve r s , ne t works a nd a pp l i c a t i ons ha ve be e n

protected with state of art securi ty systems which include fi rewalls , host and network intrusion protect ion

sys tems, ant ivi rus solut ions e tc .

HUMAN RESOURCES

The Corpora t ion recrui ted a tota l of 248 management employees and 112 non-management employeesdu r ing th e year throu gh a l l- India open compet it ion, camp us recrui tment an d s pec ia l recru itment dr ive .

Detai l s of Recrui tment during the year

Tota l Recru itm en t 248

Tota l Fem a les Recru ited 38

Special Recrui tment Drive :

Tota l SRD Recru itm en t 136

SC 62

ST 17

OBC 57

With increased focus on training & development of employees, 13 new internal programs were introducedduring the year on var ious new areas such as secur i ty aga ins t t e r ror i sm, competency based programs,

problem solving, art of sel l ing, communicat ion, advanced IT ski l ls in MS Office, customer relat ionship

ma na ge me nt e t c .

At Mum bai Refinery, “DAKSHATA” – the u niqu e t raining p rogram for contra ctors/ labour s r egarding sta tu tory

be ne f it s u nd e r ESIC/ PF Ac t s , a l so he a l t h , hyg ie ne & sa fet y wa s de s i gne d a n d e xe c u t e d i n h ouse . A

websi te was also launched for the benefi t of contractors for statutory compliance of labour law provisions.

A tota l of 743 Off icers par t i c ipa ted in the Competency Mapping & Development Centers Process and

Individual Development Plans were drawn up for each officer. Development progress was reviewed for 636

officers by 55 Competency Development Review Committees held at zonal levels. Technical Competency



38



Framework was developed for the Explorat ion & Production business uni t .

In the year 20 09-10, u nique Reward & Recognit ion s chemes were laun ched:HP Gaurav: a scheme for recogniz ing outs tanding performance by non management Employees . Out of

numerous nomina t ions , 80 non-management employees in Marke t ing Divis ion were rewarded the award.

Late r the scheme was extended to non-management employees in Ref iner ies as wel l .

HP ICON: The People Manager Award was instituted to recognize Officers in Salary Grade E, F & G for their

c on t r i bu t i on a nd e f fo r t s t owa rds i nsp i r i ng h i ghe r t e a m pe r fo rma nc e , de ve l opme nt o f sub o rd i na t e s ,

entrenching HP Values etc . A final l ist of 16 Winners amongst 94 Final ists was announced after a robust

sc reening process .

These are in addit ion to the exist ing pol icy of “Outstanding Achievers Awards ” for junior management

employees. Through these ini t iat ives, HR has taken a comprehensive approach towards enhancing employee

morale and motivat ion at al l levels.

With the defined aim of inculcat ing heal thy l i festyles among employees, an informative medium for heal th

and wellness has been developed and deployed t i t led as “Hale and Hearty HPCL” - the wellness portal .

As p art of the S pecial Compon ent Plan / Tribal Su b Plan & Welfare Plan for Weaker Sect ions , a t otal of ‘

552 .24 lakhs were spen t on various ini t iat ives perta ining to prima ry educat ion, hea l thcare, incom e genera t ionschemes , rehabi l i t a t ion and other wel fa re projec t s .

The Industrial Relat ions cl imate during the year 2009-2010 continued to be harmonious across al l locat ions.

To enhance corporate governance, a Whist le Blower Policy was adopted. Conduct , Discipl ine and Appeal

rules applicable to Management Employees were also reviewed and amended.

OFFICIAL LANGUAGE IMPLEMENTATION

Official Language Implementat ion has been given utmost importance in the Corporat ion. During the year,

various works hops a nd con ferences were condu cted for Man agemen t/ Non-Man agemen t to encou rage Official

language as also to rejuvenate their capabil i t ies of Official Language. New HP Blog category has been

created in Hindi for employees. The work done by HPCL during Town Official Language Implementat ion

Commi t t e e (TOLIC) Di sc uss i on p rogra ms & i nspe c t i ons ha s be e n a ppre c i a t e d by t he Pa r l i a me nt a ry

Committee on Official Language.

AWARDS RECEIVED

PETROFED PROJ ECT MANAGEMENT AWARD in recogn it ion of complet ing Mun dr a-Delhi Pipel ineProjec t .

READER’s DIGEST “TRUSTED BRAND AWARD”

GREE NTECH FOUNDATION SAFETY SILVER/ GOLD AWARD for excellence in S afety/ En viron m en t

Standards to Hassan Terminal , Loni Terminal , Raiput LPG Plant , Patna LPG Plant and MLIF.

GOLDEN PEACOCK ENVIRONMENT MANAGEMENT AWARD by World E n viron m en t Fou n da tion to

Mumbai Refinery, Loni LPG, TOP, Chakan LPG Plant, Salawas Depot for environmental excellence.

LEADING HR LEADER AWARD, by Sin gapor e HR Ins titu te received for th e Best HR Pra ctices.

SAIL HR EXCELLENCE AWARD for best HR Practices.

“PRIDE OF HR PROFESSIONAL AWARD” by Asia Pacific HRD Congress.

“ORG ANISATION WITH INNOVATIVE HR P RACTICE S” Awa rd by Asia Pa cific HRM Con gre ss .

CIO 10 0 AWARD by Intern at ional Data Group for recognizing CIO’s an d organ izat ions who in tough

global condit ions found ingenious business solut ions with use of IT.

OISD AWARD – First Ra n k a ward ed b y MOP & NG for excellence in Sa fety at POL / Termina l

NDTV PROFIT – BUSINESS LEADERSHIP AWARD awarded by NDTV Profit for excellence in business.

MARKETING PROFESSIONAL OF THE YEAR AWARD awarded by The World Brand Congress for Brand

Excellence and for contribut ing towards the growth of the organizat ion.

THE CMO COUNCIL MARKET LEADERSHIP AWARD awarded by CMO Council for excellence in the

Indian Reta i l Indus t ry .

CORPORATE GOVERNANCE AND CSR AWARD by Institute of Directors, for Corporate Governance.

COR PORATE GOVER NANCE NATIONAL QUALITY AWARD FO R SAFETY by In s titu te of Dir ect or s for

Nat iona l Qual i ty .



39



BEST GARDEN AWARD awarded by BMC & Tree Authori ty, Mumbai for excel lent garden at HPNE

Housing Complex.

BEST GARDEN AWARD awarded by Department of Horticulture, Government of Karnataka for excellent

garden a t Hassan Termina l .

RATNA AWARD awarded by NIPM for Best HR Practices.

NIPM NATIONAL AWARD FOR BEST HR PRACTICES, by NIPM

BUSINESS TODAY – BEST CFO AWARD.

CORPORATE GOVERNANCE

A separate segment on Corporate Governance forms part of this report . However, i t would be relevant to

point out here that the Corporat ion is giving utmost importance to compliance with Corporate Governance

requi rements inc luding compl iance of regula t ions , t ransparent management process , adherence to both

inte rna l and exte rna l va lue norms and robust gr ievance redressa l mechanism.

GLOBAL COMPACT

HPCL is also a Member of the Global Compact Society of India which is the India Unit of the United Nation

Global Compact , the la rges t volunta ry corpora te ini t i a t ive in the world. I t offe rs a unique pla t form to

e nga ge c ompa ni e s i n r e spons i b l e bus i ne s s be ha v i o r t h rough t he p r i nc i p l e s o f Huma n Ri gh t s , La bourStandards, Environment norms and Ethical pract ices. In HPCL, al l these areas receive constant at tent ion

of the management to ensure cont inuous compl iance .

OUTLOOK

As per th e Economic Advisory Coun cil to the Prime Minister th e Ind ian econom y wou ld grow at 8.5 per cent

in 20 10/ 11 an d 9.0 per cent in 2011/ 12. Higher growth would mean grea te r deman d for pe t roleum products .Inflat ion, however, remains a source of concern. This would influence the pol icy stance on oi l pricing inthe country. Global economic out look is highly uncertain given concerns about the sovereign debt risksand i ts implicat ions. This would have implicat ions for capi tal inflows in the country. Economic AdvisoryCounci l does not see any problem in f inanc ing the current account def ic i t g iven the expec ted leve l of capi ta l inf lows. Fur ther , capi ta l f lows a re not expec ted to pose any problem to the management of theexchange rate . Exchange rate variat ions wil l remain within an acceptable range.

Oi l marke t out look a l so remains uncer ta in in view of concerns about the s t rength of globa l economicrecovery. There is ample spare capaci ty along the oi l supply chain and barring unforeseen shocks, pricesare expected to remain relat ively stable.

JOINT VENTURES

HPCL-Mittal Energy Ltd. (HMEL)

HMEL is a joint venture between Hindustan Petroleum Corporat ion Limited and Mit tal Energy InvestmentsPte Limited (MEI), Singapore, a L.N Mittal Group Company, for implementation of 9 MMTPA Guru GobindSingh Refinery, a greenfield refinery project located at Bathinda, Punjab. Both partners hold 49% equitystake in HMEL and balance 2% is held between IFCI Limited and State Bank of India.

Guru Gobind Singh Reifnery will be a zero bottoms, energy efficient, environmental friendly, high distillateyielding complex refinery tha t will pr odu ce clean fu els meeting Eu ro IV sp ecifications . The configur ationcomp rising of prima ry and second ary process u n i ts viz. CDU/ VDU, VGO/ HDT, FCC, NCU/ ISOM, HGU,DHDT, SRU, DCU and Polypropylene manufacturing faci l i t ies t ranslates into a high Nelson Complexityindex which is one of the h ighes t amon gst al l the pres ent an d propos ed refineries in Ind ia. The refineryis designed to process heavy, sour, acidic crudes and would produce l iquid products including MS, HSD,

SKO, ATF, LPG, Naphtha, Hexane and MTO and sol id products including Polypropylene, Pet Coke andS u l p h u r .

HPCL-Mittal Pipel ines Ltd. (HMPL) is wholly owned subsidiary company of HMEL, for construct ion andoperat ion of cross country crude pipel ine and crude oi l terminal faci l i ty at Mundra.

The performa nce of the p roject du ring the year 20 09-1 0 h as b een very encou raging with s ignifican t progressand surge in project act ivi t ies. Both HMEL & HMPL, implementing the refinery and pipel ine component of the project respect ively have achieved cumulat ive actual progress of about 76% as of March 2010.

HPCL Biofuels Ltd. (HBL)

In l ine wi th Governm ent ’s p olicy on e th an ol blending, a new whol ly owned su bs idia ry compan y HPCLBiofuels Ltd. (HBL) has been incorporated on October 16, 2009 to produce ethanol for blending into petrol .



40



HBL is in the p rocess of set t ing u p a n integrated su gar plan t (350 0 TCPD capa city), e tha nol plant (60 KLPDcapaci ty) & co-gen power plant (20 MW capaci ty), one each at Sugauli (in East Champaran District) andLauriya (in West Champaran District) in the State of Bihar. Construct ion of the plants is in progress andcommiss ioning i s expec ted dur ing the c rushing season s ta r t ing November 2010.

CREDA-HPCL Biofuel Ltd. (CHBL)

In pursuit of promoting alternate fuels, CREDA-HPCL Biofuel Ltd. (CHBL) was incorporated on October 14,2008 as a subs idia ry company wi th equi ty shareholding of 74% by HPCL and 26% by Chhat t i sgarh Sta teRenewable Energy Developm ent Agency (CREDA). CHBL is t o u nd ertake cul t ivat ion of J atroph a p lant , a nenergy c rop used for product ion of bio-diese l , on 15,000 hec ta res of l and leased by the Government of Chh att isgarh . Produ ction of bio-diesel an d i ts blend ing with norm al diesel wil l help in m eeting th e domes t icdemand. HPCL wil l have the exclusive rights over production and market ing of biodiesel and bi-productsfrom the produce .

CHBL has started acquisi t ion of land for cul t ivat ion of jatropha and as of March 2010 had acquired 2,507hectar es of land. The fi rst produ ce of jatropha seeds is expected du ring 2011 seas on. Acquisi t ion of balan celand i s in progress and the planta t ion on the same wi l l be under taken in a phased manner over the nextthree to four years.

South Asia LPG Co. Pvt. Ltd. (SALPG)

SALPG, a J oint Ventu re Compa ny with M/ s. Total Gas an d Power Ind ia (a wh olly owned su bsidiary of Total ,France) commissioned an underground Cavern Storage of 60,000 MT capaci ty and associated receiving &dispatch faci l i t ies at Visakhapatnam in December 2007. SALPG Cavern is the fi rst of i ts kind in South andSouth Eas t Asia a nd ran ks a mong th e deepes t Caverns in the World. The comm erc ia l opera t ions commencedin J a nu a ry 2008 .

Dur ing the Year 2 009 -10, SALPG received 6 20,50 2 MT of LPG into th e Cavern th rough 65 Vessels including25 VLGCs (Very Large Gas Carriers). The Cavern cum Marine Terminal achieved 520,846 Safe Man hourssince the commencement of commercial operat ions in January 2008 without a Lost Time Accident . On acumula t ive bas i s , 1 .32 Mi l l ion MT of LPG has been rece ived into the Cavern. This eased the productmovement cons t ra int s across the Eas t coas t and ensured smooth ava i labi l i ty of LPG in the surroundingsupply zones. SALPG achieved a turnover of Rs.103.91 crores and profi ts (PAT) of Rs. 42.81 crores during200 9-10 , an increase of 19% an d 4 4% resp ect ively over the p revious year. SALPG imp lemen ted ERP systemdu ring the year .

The company declared a maiden dividend of 50% for the year 2009-10.

Hindustan Colas Ltd. (HINCOL)

HINCOL is a joint venture company promoted by HPCL and Colas S.A. of France and was incorporated onJuly 17, 1995. Net profi t (PAT) of the company in 2009-10 grew by over 37% to Rs. 38.25 crores. Thecompa ny ach ieved a turn over of Rs . 356.10 c rores du r ing 200 9-10.

Bitumen handling faci l i ty at Haldia was establ ished during the year. Allotment of land has been obtainedfrom Haldia Development Authori ty for set t ing up Emulsion and Modified Bitumen Plant .

The company declared 40% dividend for 2009-10 against 15% for 2008-09.

Mangalore Refinery and Petrochemicals Ltd. (MRPL)

MRPL, with a capacity of 3 MMTPA, was commissioned in March 1996. The capacity of the refinery wasenhanced to 9 MMTPA during 1999-2000. ONGC acqui red the ent i re equi ty s take of IRIL in MRPL on03.03 .2003 a nd a lso infu sed Rs. 600 crores into MRPL as ad dit iona l equity on 30 .03.200 3. The FIs/ Lendersof MRPL converted Rs. 365 crores of debt into equity and Rs. 160 crores debt into Zero Coupon Bonds.Consequ ent to the ab ove, HPC’s equ ity sta nd s at 16 .95% after which a fresh Sh areh older Agreement da tedMarch 3, 20 03 was signed by HPCL with ONGC to ta ke car e of the interest of HPCL. HPCL an d MRPL ha vebeen exchanging inte rmedia te process s t reams be tween the i r re f iner ies to supplement e ffor t s to meetnew envi ronmenta l norms in respec t of products l ike MS and HSD on mutua l ly agreed te rms.

The company maintained the dividend of 12% for the year 2009-10.

Prize Petroleum Company Ltd. (PPCL)

HPCL, in p artn ersh ip with ICICI an d HDFC, ha d formed th is J oint Ventu re E & P Comp an y for par t icipat ingin explorat ion and production of hydrocarbons. Prize Petroleum Company Ltd (PPCL) was incorporated onOctober 28, 1998. PPCL is also providing consultancy services related to E & P.

PPCL ha d s igned Service Contra ct with ONGC for developmen t of Hirap u r Marginal Field in Cam bay Ba sinwith 50% h olding in th e consort iu m. PPCL is opera tor for th e field an d M/ s. Valdel Oil & Gas Private Ltd.is the Associate Contractor. During 2009-10, 37,486 barrels of crude oi l (cumulat ive production of 201,064barre l s s ince incept ion) has been produced. PPCL had a l so ente red into a Product ion Shar ing Cont rac t(PSC) with 50% Part icipat ing Interest in Sanganpur Block as Joint Operator. During 2009-10, 1,576 barrels



41



of crude oi l (cumulat ive production of 10,704 barrels from inception) has been produced.

In respect of onsh ore block SR-ONN-200 4/ 1 award ed un der NELP-VI at Sou th Rewa in Madhya Prad esh ,the explorat ion act ivi t ies as per committed minimum work programme are in progress. Gravity magnetics tu dy ha s b een comple ted. Se ism ic da ta acquis i t ion job was a warded to M/ s . Geofizyka Torun , Polan d.1,144 GLKM of 2D da ta and about 8 Sq. Km of 3D da ta was acqui red dur ing the year . Process ing andinterpretat ion of seismic data job, awarded to CGG Veri tas, Moscow, is in progress.

During the year, PPCL received Rs. 3.50 crores from HPCL towards cal l money of Rs. 0.70 per cumulat iveconvert ible preference share on 5,00,00,000 8% cumulat ive convert ible preference shares.

Petronet India Ltd. (PIL)

PIL was incorporat ed on May 26, 199 7 as a joint ventu re compan y with 50% equ ity by oil PSUs an d ba lance50% ta ken by private compa n ies/ finan cial ins t i tut ions . Special Pur pose Vehicles (SPVs) were floated b yPIL with oil companies for implementing individual pipeline projects, viz, Petronet MHB, Petronet CCK andPetronet VK which are operat ing companies.

S i nc e o i l c ompa ni e s ha ve i nde pe nde n t p i pe l i ne s now, P IL ha s i n i t i a t e d a c t i on t o d i s i nve s t i t s e qu i t yholding in individua l JVs.

Petronet MHB Ltd. (PMHBL)

HPCL, along with Petronet India Limited (PIL) promoted Petronet MHB Limited (PMHBL) for constructionof Mangalore-Hassan - Ban galore Pipeline at a cost of Rs. 66 7 Crores with debt equity rat io of 3:1. The jointvent u re compa ny was incorpora ted on J u ly 31, 19 98. Ini t ial ly PIL & HPCL each con tribut ed 26% toward sequi ty . ONGC joined as a s t ra tegic par tner in PMHBL by taking 23% equi ty in Apri l 2003. Pos t debtrestru ctur ing of the com pan y, the equ ity holding of HPCL & ONGC increased to 28.76 6% each . The Pipelinei s meet ing the t ranspor ta t ion needs be tween Mangalore-Hassan-Bangalore .

Dur ing 2009-10 , PMHBL ach ieved 3% h igher th rough pu t at 2.52 7 MMT as comp ared to 2.45 2 MMT in 200 8-09. Revenue genera ted dur ing 2009-10 was higher by 7% a t Rs . 69.18 c rores as compared to Rs . 64.87crores in the previous year.

Bhagyanagar Gas Ltd. (BGL)

BGL was incorpora ted on Augus t 22, 2 003 as a J oint Ventu re Compa ny by GAIL an d HPCL for distribut iona nd ma rke t i ng o f e nv i ronme nt a l f r i e nd l y fue l s (g re e n fue l s ) v i z . CNG a nd Aut o LPG for use i n t het ranspor ta t ion, domest ic , commerc ia l and indust r ia l sec tors in the Sta te of Andhra Pradesh.

During the year, a new CNG stat ion was commissioned at Hyderabad, Meerpet . BGL is now operat ing 6CNG dispensing stat ions in Vijayawada, 4 CNG dispensing stat ions in Hyderabad and 1 CNG dispensingstat ion in Rajahmundry. During the year, BGL was successful in obtaining Authorisat ion from Petroleum& Natural Gas Regulatory Board (PNGRB) to carry on the City Gas Distribut ion (CGD) in the ci t ies of Hyderabad and Vijayawada.

BGL i s a l so opera t ing 4 Auto LPG Out le t s -3 in Hyderabad and 1 in Ti rupa t i . BGL achieved sa les of Rs . 36.04 c rores du r ing 200 9-10, an increase of 2 .06 % a s compared to the previous year .

The company is in the process of induct ing strategic equity investors.

Aavantika Gas Ltd. (AGL)

AGL was incorporated on June 07, 2006 as a Joint Venture Company by GAIL and HPCL for distribut ionand market ing of CNG and Auto LPG for use in the t ransportat ion, domest ic , commercial and industrialsec tors in the Sta te of Madhya Pradesh.

AGL has been authorized by MOP&NG as well as PNGRB to carry City Gas Distribution (CGD) operationsat Indore, Ujjain and Gwalior. AGL commenced commercial operat ions from i ts Mother stat ion at Indoreand 5 Daughter stat ions (4 in Indore and 1 in Ujjain) in the year 2008-09. CNG sales have grown by morethan 12.5% (compounded monthly) and c rossed monthly sa les of 4 l akh kgs in May 2010. AGL has a l socompleted a pi lot project for supplying Piped Natural Gas to industrial customers at Indore.

AGL i s a t advanced s tage of implement ing a projec t for l aying 40 km long Stee l Pipe l ine gr id and forcommencing 10 CNG s ta t ions in Indore . AGL i s a l so in the process of es tabl i shing Mother Sta t ions a tGwalior and Ujjain as well as dedicated CNG stat ions for ci ty bus services at Indore and Ujjain.

Ca u t i o n a ry S t a t e m e n t

Matters covered in th e Managemen t Discu ssion a nd Ana lysis Reports des cribing th e Compan y’s object ives,project ions, est imates, expectat ions may be “forward looking statements” within the meaning of applicablesecu ri t ies laws an d regulat ions. The actu al performa nce could vary from th ose projected or imp lied. Imp ortan to r u nfore se e n fa c t o r s t h a t c ou l d ma k e a d i ffe re nc e t o t he Comp a n y’s ope ra t i ons i nc lu de s e c onom i ccondit ions a ffec t ing dema nd / su pply an d pr ice condi t ions in th e domest ic mark e t in which the Compan ypredominant ly opera tes , changes in regula t ions and other inc identa l fac tors .

_______________



42


Auditors’ Report

TO THE MEMBERS OF HINDUSTAN PETROLEUM CORPORATION LIMITED

1 . We h a ve a u d it e d t h e a tt a c h ed B a la n c e Sh e et of Hindustan Petroleum Corporat ion Limited as a t M arch 3 1 ,2010, and also the Prof i t and Loss Account and the Cash Flow Statement of the Company for the year ended

o n t h a t d a t e a n n e x e d t h e r e t o i n w h i c h a r e i n c o r p o r a t e d A c c o u n t s o f t h e B r a n c h a u d i t e d b y t h e B r a n c h

Au d i tor . Th ese fin an c ia l s ta tem en ts a r e th e r esp o n s ib il ity o f th e Co m p an y ’s m an ag emen t . Ou r r esp o n s ib i li ty

i s to ex p ress an o p in io n o n th ese f in an c ia l s ta temen ts b ased o n o u r au d i t .

2 . We con d u c ted o u r au d i t in accord an ce w ith th e au d it in g s tan d ard s g en era l ly accep ted in In d ia . Th ese S tan d ard s

r e q u i r e t h a t w e p l a n a n d p e r f o r m t h e a u d i t t o o b t a i n r e a s o n a b l e a s s u r a n c e a b o u t w h e t h e r t h e f i n a n c i a l

s tatements are f ree of mater ial miss tatements . An audit includes examining , on a tes t basis , ev idence suppor t ing

t h e a m o u n t s a n d d i s c l o s u r e s i n t h e f i n a n c i a l s t a t e m e n t s . A n a u d i t a l s o i n c l u d e s a s s e s s i n g t h e a c c o u n t i n g

p r i n c i p l e s u s e d a n d s i g n i f i c a n t e s t i m a t e s m a d e b y m a n a g e m e n t , a s w e l l a s e v a l u a t i n g t h e o v e r a l l f i n a n c i a l

s ta temen t p r esen ta t io n . We b e l iev e th a t o u r au d i t p ro v id es a r easo n ab le b as i s f o r o u r o p in io n .

3 . As r e q u i r e d b y t h e C o m p a n i e s (Au d i t o r ’s R e p o r t ) O r d e r , 2 0 0 3 a s a m e n d e d b y C om p a n i e s (Au d i t o r ’s R e p o r t )

(Amen dm ent) Order , 2004 (together ‘th e Order’), issu ed by th e Centr al Governm ent of Ind ia in term s of sub-

section (4A) of section 227 of the Companies Act,1956, we g ive in the Annexure, a s tatement on the matters

sp ec i f ied in p arag rap h 4 an d 5 o f th e sa id Ord er .

4 . F u r t h e r t o o u r c om m e n t s in t h e An n e x u r e r efe r r ed t o i n p a r a gr a p h 3 a b o ve , we r ep o r t t h a t :

(a ) We h a v e o b ta in ed a l l th e in fo rmat ion an d ex p lan a t io n s wh ich , to th e b es t o f o u r k n o wled ge an d b e l ief,

were n ecessary fo r th e p u rp o se o f th e au d i t ;

(b) In our opin ion , proper books of account , as required by law, ha ve been kept by the Compa ny, so far as i t

appears f rom our examination of these books, and proper returns , adequate for the purposes of our audit ,

h av e b een r ece iv ed f ro m th e b r an ch n o t v i s i ted b y u s ;

(c ) Th e Bran ch Au d i to r s ’ r ep o rt , mad e av a ilab le to u s , h as b een ap p ro p r ia te ly d ea l t wi th wh i le p r ep ar in g ou r

r e p o r t ;

(d ) Th e b a l a n c e s h e e t , p r o fi t a n d l os s a c c ou n t a n d c a s h fl ow s t a t e m e n t d e a l t w it h b y t h i s r e p o r t a r e in

ag reemen t w i th th e b o o k s o f acco u n t an d w i th th e au d i ted r e tu rn s f ro m th e b r an ch ;

(e ) Th e b a lan ce sh ee t , p rofi t an d lo ss accou n t an d cash flow s ta temen t d ea l t w ith b y th i s r ep o r t comp ly wi th

the Accounting Standards refer red to in sub-section (3C) of Section 211 of the Companies Act, 1956;

(f) D is c l os u r e i n t e r m s o f c la u s e ( g) o f s u b - s e c t io n (1 ) of S ec t io n 2 7 4 o f t h e C o m p a n i e s Ac t , 1 9 5 6 i s n o t

required for Government Companies as per Notif icat ion No. GSR 829(E) dated October 21 , 2003 issued by

th e Dep ar tmen t o f Co mp an y Af fa i r s .

(g) In o u r o p in ion , an d to th e b es t o f o u r in fo rmat ion a n d a ccord in g to th e ex p lan a t io n s g iven to u s , th e sa id

accounts read together with notes thereon, g ive the information required by the Companies Act, 1956, in

t h e m a n n e r s o r e q u i r e d a n d g i v e a t r u e a n d f a i r v i e w i n c o n f o r m i t y w i t h t h e a c c o u n t i n g p r i n c i p l e s

g en era l ly accep ted in In d ia ;

(i ) in th e case of th e b a lan ce sh ee t , of th e s ta te o f a ffa i r s o f th e Co mp an y as a t M arch 3 1 , 2 0 1 0 ;

(i i) in th e case o f th e p ro fi t an d loss a ccou n t , o f th e p ro fi t fo r th e y ear en d ed o n th a t d a te ; an d

(i ii ) in th e cas e o f th e cas h f lo w s ta temen t , o f th e cas h f lo ws fo r th e y ear en d ed o n th a t d a te .

For V. Sa n k a r Aiya r & Co. For Om Aga rwa l & Co.

Ch art e re d Ac c o un t an t s Ch art e re d Ac c o un t an t s

Fir m No. : 1 0 9 2 0 8 w Firm No. : 0 0 0 9 7 1 c

G. S a n k a r O . P. Aga r wa l

Part n e r Part n e r

Mem b er s h ip No. 4 6 0 5 0 Mem b er s h ip No. 0 1 6 6 0 3

Place : New Delhi

Da t e : 26 th May 2010



43


Annexure to the Auditors’ Report

(Referred to in Paragraph 3 of our Report of even date)

1 . (a ) Th e C om p a n y h a s m a in t a i n ed p r op e r r ec or d s s h o win g fu l l p a r t ic u la r s i n clu d i n g q u a n t it a t ive d e t a ils a n dsituation of f ixed assets except for i tems l ikes p ipes , valves , meters , ins truments and o ther s imilar i tems

p ecu l ia r to a co n t in u o u s p ro cess in d u s t ry .

(b ) As e x p la i n e d t o u s , t h e C om p a n y , h a vi n g r e ga r d t o t h e s i ze a n d n a t u r e o f i t s b u s i n e s s , h a s a d o p t e d a

practice of car ry ing out physical ver if icat ion of i ts f ixed assets , except LPG cylinders and f ixed assets of

th e e r s twh i le Ko san Gas Co mp an y u n d er tak in g , n o t h an d ed o v er , o n a s tag g ered b as i s , o v er a p er io d o f

f ive years in the case of furn iture, f ix tures and off ice equipment and over a per iod of three years in the

c a s e o f P l a n t a n d M a c h i n e r y a n d o t h e r a s s e t s . W e w e r e i n f o r m e d t h a t d i s c r e p a n c i e s n o t i c e d o n s u c h

v er i f ica t io n were n o t mate r ia l as co mp ared to th e b o o k r eco rd s an d h av e b een p ro p er ly d ea l t w i th in th e

books of account. The exis tence of f ixed assets s i tuated at the res idence of employees has , however , been

ascer ta in ed o n a se l f -d ec la r a t io n b as i s .

(c ) F i xe d As s e t s d i s p o s e d o ff d u r i n g t h e y e a r w e r e n o t s u b s t a n t i a l a n d , t h e r e f or e , d o n o t a ffe c t t h e g oi n g

c o n c e r n a s s u m p t i o n .

2 . (a ) As e x p la i n e d t o u s , t h e i n ve n t o r ie s w er e p h ys i ca l ly ve r ifi ed d u r i n g th e y ea r b y t h e Ma n a g e m e n t a t

reasonable in tervals . In the case of mater ials ly ing with th ird par t ies , cer t if icates conf irming s tocks held

h av e b een r ece iv ed f ro m th em.

(b ) In o u r o p in ion an d acco rd in g to th e in fo rmat ion a n d ex p lan a t ion s g iven to u s , th e p ro ced u res o f p h ys ica l

ver if icat ion of inventory fo llowed by the management are reasonable and adequate in relat ion to the s ize

o f th e Co mp an y an d th e n a tu re o f i t s b u s in ess .

(c ) In o u r o p in ion a n d a ccord in g to th e in fo rmat io n an d exp lan a t io n s g iven to u s , th e Comp an y h as m ain ta in ed

p ro p er r eco rd s o f in v en to ry . We were in fo rmed th a t d i sc r ep an c ies n o t iced o n p h y s ica l v er i f ica t io n , as

c o m p a r e d t o t h e b o o k r e c o r d s , w e r e n o t m a t e r i a l a n d h a v e b e e n p r o p e r l y d e a l t w i t h i n t h e b o o k s o f

a c c o u n t .

3 . B a s e d o n t h e a u d i t p r oc e d u r e s a p p li ed b y u s a n d a c c or d in g t o th e i n fo r m a t io n a n d e x p la n a t i o n s give n t o u s ,

th e Co mp an y h as n e i th er g r an ted n o r tak en lo an s , s ecu red o r u n secu red to o r f ro m co mp an ies , f i rms o r o th er

p ar t ies co v ered in th e r eg is te r main ta in ed u n d er Sec t io n 3 0 1 o f th e Co mp an ies Act , 1 9 5 6 . Co n seq u en t ly , su bclau ses (b), (c), (d), (e), (f) an d (g) of su b-p ar a (iii) of pa ra 4 of the Ord er a re n ot a pp licable.

4 . In our opin ion and according to the information and explana tions g iven to us , an d having regard to the explanations

that some of the i tems are of a special ized nature, in respect of which su itab le al ternative sources do not ex is t

fo r o b ta in in g co mp ara t iv e q u o ta t io n s , th e r e a r e ad eq u a te in te rn a l co n t ro l p ro ced u res co mmen su ra te w i th th e

size of the Company and nature of i ts business for the purchase of inventory and f ixed assets and for the sale

of goods and serv ices .

5 . In o u r o p in i on a n d a c c or d in g t o t h e in fo r m a t io n a n d e x p la n a t i o n s give n t o u s , t h e r e a r e n o co n t r a c ts a n d

arrangements refer red to in Section 301 of the Companies Act, 1956 entered in to dur ing the year that need to

be entered in the regis ter main tained under that Section . Accordingly , sub clause (b) of sub-para (v) of para 4

of the Order is not applicable to the Company for the current year .

6 . In o u r o p in i o n , a n d a c c o r d in g t o t h e in f or m a t i o n a n d e x p la n a t i on s g ive n t o u s , t h e Co m p a n y h a s c o m p l ie d

with the d irectives issued by the Reserve Bank of India and the provis ions of Section 58A and Section 58AA

o r an y o th er r e lev an t p ro v is io n s o f th e Co mp an ies Act , 1 9 5 6 , an d th e ru les f r amed th ereu n d er w i th r eg ard todeposits accepted f rom the public . We have been informed that no order has been passed by the Company Law

Board or National Company Law Tr ibunal or Reserve Bank of India.

7 . In our opin ion , the Company has an in ternal audit system commensurate with i ts s ize and the n ature of its business .

8 . W e h a v e b r oa d l y r e vi ew e d t h e b oo k s of a c c o u n t m a i n t a i n e d b y t h e C o m p a n y in r e s p e c t o f p r o d u c t s w h e r e ,

p u r su an t to th e Ru les mad e b y th e Cen t r a l Go v ern men t , th e main ten an ce o f co s t r eco rd s h as b een p rescr ib ed

under Section 209 (1) (d) of the Companies Act, 1956. We are of the opin ion that prima facie th e p r escr ib ed

a c c o u n t s a n d r e c o r d s h a v e b e e n m a i n t a i n e d a n d a r e b e i n g m a d e . W e h a v e n o t , h o w e v e r , m a d e a d e t a i l e d

ex amin a t io n o f th e r eco rd s w i th a v iew to d e te rmin e wh eth er th ey a r e accu ra te o r co mp le te .



44


9 . (a) According to the information and explanations g iven to us and on the basis of our examination of the books of

account, the Company has, during the year, been generally regular in depositing with the appropriate authorities,

undisputed s tatu tory dues , including Provident Fund, Investor Education and Protection Fund, Income Tax,

Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other material statutory dues.

(b) According to the information and explanations given to us and on the bas is of our examination of the books of

acco u n t , n o u n d isp u ted amo u n ts p ay ab le in r esp ec t o f I n co me Tax , Sa les Tax , Weal th Tax , Serv ice Tax ,

Custom Duty, Excise Duty, Cess were in arrears, as at March 31, 2010, for a period of more than six months

from the date they became payable.

(c) According to the information a nd explana tions given to us, du es relating to Income tax, Sales tax, Custom du ty,

Service tax , Excise duty which have not been deposited on account of d isputes with the related author i t ies ,

have been reflected in the table below:

STATUTE FORUM WHERE AMOUNT IN PERIOD TO WHICH

DISPUTE IS PENDING RS. / CRORES THE AMOUNT RELATES

Income Tax Act , 1961 Ap p e lla t e Tr ib u n a l 0 .2 0 2 0 0 6 -0 7

0 . 2 0

Centra l Exci se Act , 1944 Com m is s ion er (A) 3 .7 5 1998-1999, 2000-2001, 2001-2002, 2002-2003, 2003-2004, 2004-2005, 2005-2006,

2006-2007, 2007-2008

As s is ta n t Com mis s ion er 3 .5 8 19 9 4 -1 9 9 6,1 9 9 7 -1 9 9 8,19 9 8 -1 9 9 9 ,19 9 9 -

2000, 2001-2002, 2002-2003, 2003-2004,

2 0 0 5 -2 0 0 6

CESTAT 4 1 4 .6 3 1 99 3 -19 9 7 , 19 9 7 -1 9 9 9,1 9 9 9-2 0 00 , 2 0 0 0-

2001, 2001-2005, 2005-2006, 2006-2007,

2007-2008, 2008-2009

Revis ion a ry au th or ity 1 .5 6 1 99 9 -20 0 2 , 2 00 3 -20 0 4 , 2 00 4 -20 0 5 , 2 00 5 -

2 0 0 6

4 2 3 . 5 2

Various Central & Boa rd of Reven u e 0 .1 9 1 9 8 5 -1 9 8 6 ,1 9 8 6 -1 9 8 7

State Sales Tax Acts Ra ja s th a n Ka r Boa rd 2 .8 2 1 99 9 -20 0 0 , 2 0 0 0-2 0 0 1

STAT 4 5 7 .2 7 1 98 5 -19 8 7 , 19 8 7 -1 9 8 8,1 9 8 8-1 9 99 , 1 9 9 9-

2000, 2000-2001, 2001-2002, 2002-2003,

2003-2004, 2004-2005, 2005-2006, 2006-

2007, 2007-2008

High Cou r t 4 2 4 .6 2 1 97 9 -19 8 5 ,19 8 7 -1 9 9 7, 1 9 9 8-1 9 99 , 2 0 0 0-

2001, 2001-2002, 2002-2003, 2003-2004,

2 0 0 6 -2 0 0 7

Su prem e Cou r t 1 5 9 .0 6 1 99 8 -19 9 9 , 2 00 2 -20 0 3 , 20 0 3 -2 0 0 4, 20 0 4 -

2 0 0 5

Com mis s ion er / DCCT / 4 ,1 32 .2 5 1 97 6-1 97 9,1 98 6-1 98 7,1 98 7-1 98 8,1 99 2-

ADC / J CCT / ACCT 1 9 9 3 ,1 9 9 3 -1 9 9 4 ,1 9 9 4 -1 9 9 5 ,1 9 9 5 -

1 9 9 6 ,1 9 9 6 -1 9 9 7 ,1 9 9 7 -1 9 9 8 ,1 9 9 8 -

1999,1999-2000, 2000-2001, 2001-2002,

2003-2004, 2004-2005, 2005-2006, 2006-

2007, 2008-2009

5 , 1 7 6 . 2 1

Custom Act , 1962 C E S TAT 6 4 .7 2 1 9 9 2 -1 9 9 7 ,1 9 9 7 -1 9 9 8 ,1 9 9 8 -1 9 9 9 ,1 9 9 9 -

2002, 2002-2003, 2003-2004, 2005-2006

Com m is s ion er(A) 0 .5 4 2 00 3 -2 0 04 , 2 00 4 -2 0 05

6 5 . 2 6

Service Tax CESTAT 1 0 .2 6 2 00 2 -20 0 3 , 2 00 3 -20 0 6 , 20 0 6 -2 0 0 7, 20 0 7 -

2 0 0 8

Com m is s ion er (A) 0 .8 2 2 0 0 4 -2 0 0 5 , 2 0 0 5 -2 0 0 6

1 1 . 0 8

Gran d To t al 5 ,6 7 6 .0 7




45


1 0 . Th e Co mp an y d oes n o t h av e an y accu m u la ted lo sses a t th e en d o f th e fin an c ia l year an d h as n o t in cu r r ed cash

losses in the f inancial year and in the f inancial year immediately preceding such f inancial year .11 . According to the information and explana tions g iven to us , an d based on checks car r ied out by us , the Company

has not defaulted in repayment of dues to f inancial ins t i tu t ions , banks or debenture holders .

12 . According to the informat ion an d explana tions g iven to us , the Company has not granted loans an d advances on

the basis of security by way of pledge of shares, debentures and other securities.

13 . In our opin ion an d according to information and explana tions g iven to us , the Compan y is not a ch it fun d or a

n id h i / mu tu a l b en ef it f u n d / so c iety . Th ere fore th e p ro v is io n s o f su b -p a ra (x ii i) o f p ar a 4 o f th e Ord er a r e n o t

applicable to the Company.

1 4 . Acco rd in g to th e in forma t ion an d ex p lan a t ion s g iven to u s , th e Co mp an y i s n o t d ea l in g o r t r ad in g in sh a res ,

securities, debentures and other investments. Therefore the provisions of sub-para (xiv) of para 4 of the Order are

not applicable to the Company.

15 . In our opinion and according to informat ion an d explana tions provided to us, the Compa ny has n ot given guaran tees

for loans taken by o thers f rom banks and f inancial ins t i tu t ions .

16 . In our opin ion and a ccording to information and explana tions g iven to us , the term loans taken d ur ing the year ,

prima facie, have been applied for the purpose for which they were raised.

1 7. According to the information an d explan ations given to us , and bas ed on our overall examinat ion of Balance Sheet

and considering investment in “Oil Bonds” issued by the Government of India towards under-recoveries on sale of

sensit ive petro leum products as shor t term application of funds, funds raised on shor t- term basis have, prima

facie , no t been used for making long- term investments .

1 8 . Ac c or d in g t o t h e i n fo r m a t i on a n d e x p la n a t i o n s g ive n t o u s , d u r i n g t h e y e a r t h e C o m p a n y h a s n o t m a d e a n y

preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of

the Companies Act, 1956.

19 . The Company has created necessary secur it ies or charge as per the debenture trus t deed in respect of debentures

i s su ed an d o u ts tan d in g a t th e y ear en d .

20 . The Compan y has not raised any money by way of public issue dur ing the financial year .

21 . According to information and explanations given to us an d based on au dit procedures performed and representa tionso b ta in ed f ro m th e man ag emen t , we r ep o r t th a t n o mate r ia l f r au d o n o r b y th e Co mp an y , h as b een n o t iced o r

repor ted dur ing the year under audit .

For V. Sa n k a r Aiya r & Co. For Om Aga rwa l & Co.

Ch art e re d Ac c o un t an t s Ch art e re d Ac c o un t an t s

Fir m No. : 1 0 9 2 0 8 w Firm No. : 0 0 0 9 7 1 c

G. S a n k a r Om Pr a k a s h Aga r wa l

Part n e r Part n e r


P la c e : Ne w De lh i

Da t e : 26 th May 2010




46


Balance Sheet as at 31st March, 2010

R s . / C r or e s

S CH E DULE 2 0 0 9 -1 0 2 0 0 8 - 0 9

SOURCES OF FUNDS

S h a r e h o l d e r s ’ F u n d s :

a) Ca p it a l 1 3 3 9 . 0 1 3 3 9 . 0 1

b) Res er ves a n d S u r p lu s 2 1 1 , 2 1 8 . 9 6 1 0 , 3 9 1 . 6 2

1 1 , 5 5 7 . 9 7 1 0 , 7 3 0 . 6 3

L o a n F u n d s :

a) Secu r ed Loa n s 3 1 , 3 7 5 . 8 8 6 9 8 . 8 3

b) Un s ec u r ed Loa n s 4 1 9 , 9 2 6 . 4 9 2 2 , 0 5 6 . 6 8

2 1 , 3 0 2 . 3 7 2 2 , 7 5 5 . 5 1

De fe r r e d T a x Lia b i l i t y 1 ,8 0 7 .9 7 1 , 6 0 3 . 3 7

T O T AL 3 4 ,6 6 8 .3 1 3 5 , 0 8 9 . 5 1

APPLICATION OF FUNDS

F i x e d A s s e t s : 5

a) Gr os s Block 2 4 , 9 8 8 . 3 7 2 0 , 2 0 8 . 8 3

b) Les s : De pr ec ia t ion 9 , 6 8 1 . 7 0 8 , 5 5 4 . 0 8

c) Net Block 1 5 , 3 0 6 . 6 7 1 1 , 6 5 4 . 7 5

d) Ca p it a l Wor k - in -Pr ogr es s 6 3 , 8 8 7 . 5 9 5 , 0 0 1 . 0 7

1 9 , 1 9 4 . 2 6 1 6 , 6 5 5 . 8 2

I n v e s t m e n t s 7 1 1 , 3 8 7 . 2 2 1 4 , 1 9 6 . 4 7

C u r r e n t A s s e t s , L o a n s a n d A d v a n c e s :

a) In ve n t or ie s 8 1 2 , 5 7 9 . 2 2 8 , 7 9 3 . 0 3

b) S u n d ry Deb tor s 9 2 , 4 3 7 . 3 4 2 , 2 4 0 . 9 1

c) Ca s h a n d Ba n k Ba la n ces 1 0 2 4 3 . 1 7 6 0 8 . 6 4

d) Ot h er Cu r r en t As s et s 1 1 1 2 3 . 7 4 1 8 1 . 1 5

e) Loa n s a n d Ad va n ces 1 2 5 , 2 5 8 . 4 7 4 , 1 8 0 . 6 2

2 0 , 6 4 1 . 9 4 1 6 , 0 0 4 . 3 5

L e s s :

C u r r e n t L i a b i l i t i e s a n d P r o v i s i o n s : 1 3

a) Lia bilit ie s 1 4 , 4 4 9 . 9 0 1 0 , 5 1 0 . 2 6

b) P r ovis ion s 2 , 1 0 5 . 2 1 1 , 2 5 6 . 8 7

1 6 , 5 5 5 . 1 1 1 1 , 7 6 7 . 1 3

Ne t Cu r r e n t As s e t s 4 ,0 8 6 .8 3 4 , 2 3 7 . 2 2

T O T AL 3 4 ,6 6 8 .3 1 3 5 , 0 8 9 . 5 1

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESAND NOTE S FORMING PART OF ACCOUNTS 2 0

FOR AND ON BEHALF OF THE BOARD

ARUN BALAKRISHNAN

Chai rman & Manag i ng Di rec t o r

B. MUKHERJE E

Di rec t o r -F i nance

SHRIKANT M. BHOSEKAR

C o m p a n y S e c r e t a r y

Place : New Delhi

Date : 26th May 10

For V. SANKAR AIYAR & CO.

C h a r t e r e d A c c o u n t a n t s

F i r m N o . 1 0 9 2 0 8 w

G. SANKAR

P a r t n e r

Membership No. 46050

For OM AGARWAL & CO.


Fi rm No . 000971c

OM PRAKASH AGARWAL

P a r t n e r

Membersh ip No. 01660 3



47


Rs. / Crores

S CH E DULE 2 0 0 9 -1 0 2 0 0 8 - 0 9

I N C O M E

Sale of Products 1 0 8 , 5 9 8 . 6 8 1 1 6 , 4 2 7 . 8 3

(Net of Discount of Rs. 1 ,099.72 crores; 2008-09 Rs. 734.50 crores)

Less : Excise Duty Paid 7 , 2 5 1 . 1 7 7 , 0 5 0 . 2 3

Net Sales 1 0 1 , 3 4 7 . 5 1 1 0 9 , 3 7 7 . 6 0

Recovery under Subs i dy Schemes 6 , 2 8 9 . 9 5 1 5 , 3 7 4 . 8 2

Ot h er In com e 1 4 1 , 6 4 6 . 1 6 9 0 5 . 7 9

1 0 9 , 2 8 3 . 6 2 1 2 5 , 6 5 8 . 2 1

INCREASE / (DECRE ASE) IN INVENTORY 1 5 3 , 2 4 9 . 9 6 (1 ,836 .78 )

EXPENDITURE AND CHARGES

Purchase o f P roduct s fo r r esa l e 6 2 , 6 7 7 . 8 2 7 3 , 3 9 4 . 6 1

R a w m a t e r i a l s c o n s u m e d 3 7 , 7 2 7 . 5 9 4 0 , 9 9 5 . 2 2

P a c k a g e s c o n s u m e d 1 3 6 . 3 9 1 2 7 . 1 2

Exci se Du t y on Inven t o ry d i f f e ren t i a l 3 3 7 . 0 8 (182 .40 )

T r a n s h i p p i n g E x p e n s e s 2 , 6 5 3 . 5 6 2 , 4 3 7 . 1 5Pa ym en t s t o a n d p r ovis ion s for E m p loyees 1 6 1 , 6 1 7 . 3 2 1 , 1 3 5 . 5 3

E x p l o r a t i o n E x p e n s e s 2 5 5 . 6 2 7 1 . 7 0

Ot h er Op e r a t in g E xp en s es 1 7 2 , 9 3 8 . 8 6 2 , 0 6 6 . 1 5

D e p r e c i a t io n / Am o r t i s a t i o n 1 , 1 6 4 . 4 0 9 8 1 . 2 9

Bor r owin g Cos t 1 8 9 0 3 . 7 5 2 , 0 8 2 . 8 4

1 1 0 , 4 1 2 . 3 9 1 2 3 , 1 0 9 . 2 1

PROFIT FOR THE YEAR BEFO RE P RIOR PERIOD ADJ USTMENTS AND TAXES 2 , 1 2 1 . 1 9 7 1 2 . 2 2

P RIO R P ER IO D AD J U STME NTS D EB ITS / (C RE D ITS ) (NE T) 1 9 ( 3 . 8 4 ) (0 .01 )

P R OF IT BE F OR E T AXE S 2 , 1 2 5 . 0 3 7 1 2 . 2 3

PROVISION FOR CURRENT TAXATION 5 6 1 . 5 0 2 2 7 . 6 0

PROVISION FOR DEFERRED TAXATION (NET) 2 0 4 . 6 0 3 4 . 2 9

PROVISION F OR TAXATION OF EARLIER YEARS PROVIDED / (WRITTEN BACK) 5 7 . 5 1 (111 .77 )

PROVISION FOR DEFERRED TAX OF EARLIER YEARS WRITTEN BACK - (26 .90 )

PROVISION FOR FRINGE BENEFIT TAX 0 . 0 5 1 4 . 0 3

P R OF IT AF T E R TAXE S 1 ,3 0 1 .3 7 5 7 4 . 9 8Bal ance b rough t fo rward 8 , 1 0 4 . 1 6 7 , 7 9 4 . 6 7

P R OF IT AVAILABLE F OR AP P R OP R IAT ION 9 ,4 0 5 .5 3 8 , 3 6 9 . 6 5

APPROPRIATED FOR:

G e n e r a l R e s e r v e 1 3 0 . 1 4 5 7 . 5 0

Deben t u re Redempt i on Reserve 8 6 . 4 0 -

Proposed F i na l Di v i dend 4 0 6 . 3 5 1 7 7 . 7 8

Tax on Dist r ibuted Prof i t s 6 7 . 4 9 3 0 . 2 1

BALANCE CAR R IE D F OR WAR D 8 ,7 1 5 .1 5 8 , 1 0 4 . 1 6

EARNINGS PER SHARE ( in Rs. ) - Basic & Di luted 3 8 . 4 3 1 6 . 9 8

(2009 -10 : EPS = Net Profi t - Rs. 130 1.37 crores / Weighted a vg. no. of sh ares - 33.863 crores)

(2008 -09 : EPS = Net Profi t - Rs. 574 .98 crores / Weighted a vg. no. of sh ares - 33.863 crores)

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESAND NOTE S F ORMING PART OF ACCOUNTS 2 0

Profit and Loss Account for the year ended 31st March, 2010


ARUN BALAKRISHNAN


B. MUKHERJE E

D i r e c t o r - F i n a n c e



Place : New Delhi

Date : 26th May 10

For V. SANKAR AIYAR & CO.


F i r m N o . 1 0 9 2 0 8 w

G. SANKAR

P a r t n e r




Fi rm No . 000971c

OM PRAKASH AGARWAL

P a r t n e r




48


Schedules forming part of the Balance Sheet

Rs. / Crores

2 0 0 9 - 1 0 2008-091 . CAPITAL

A. Au t hor is e d :75,000 Cu mu lat ive Redeemable Preference Sha res of Rs. 100/ - each 0 . 7 5 0.7534,92,50,000 Equi ty Shares of Rs.10/ - each 3 4 9 . 2 5 349 .25

3 5 0 . 0 0 350 .00

B. Is s ue d , S u bs c rib ed & Ca lle d u p :33,93,30,000 Equ i ty Sha res of Rs.10 each 3 3 9 . 3 3 339 .33Less: 7,02,750 Shares Forfeited (0 .70 ) (0.70)

33,86,27,250 equ i ty sha res of Rs. 10 each ful ly paid up 3 3 8 . 6 3 338 .63Add: S ha res Forfeited (mon ey received) 0 . 3 9 0.39

3 3 9 . 0 1 339 .01

NOTES :-(1 ) 77 ,50 ,000 fu l ly pa id up equ i t y shares o f Rs . 10/ - each were a llo tt ed t o t he

sha reholders of Lube India Limi ted on th e am algam at ion of that compan y

for considerat ion other th an cash .(2 ) 52 ,00 ,000 fu l ly pa id up equ i t y shares o f Rs . 10/ - each were a llo tt ed t o t hePresident of India, for considerat ion other tha n ca sh, on the am algam at ionof Caltex Oil Refining India Limited with the Corporation.

(3 ) 26 ,44 ,30 ,000 equ i t y shares o f Rs . 10 / - each were a llo t ted as fu lly pa idbonus shares by capi tal i sat ion of Capi tal Reserve, Capi tal Redempt ionReserve an d a ccum ulated profi t s .

(4 ) Dur ing t he financi a l year 2007-08 , Company has for fe it ed 7 ,02,750 sharesissued as a par t of the publ ic i ssue in 1994-95, due to non receipt of al lotmen t and / or call mon ey from sh areh olders. Accordingly, the pa id upsha re capi tal has been reduced f rom Rs. 339.33 crores to Rs. 338.63 crores .

2 . R ES ER VE S AND S UR PLUSS h a r e P r e m i u m Ac c o u n tAs per last Balance Sh eet 1 , 1 5 3 . 7 7 1,153.77D e b e n t u r e R e d e m p t i o n R e s e r v eAs per last Balance Sh eet - -Add: Tra ns fer from Profit & Loss Accou nt 8 6 . 4 0 -

8 6 . 4 0 -Cap i t a l Gran tAs per last Balance Sh eet 4 . 3 6 4.55Received during the year - -

4 . 3 6 4.55Less: Amortised during the year (0 .19 ) (0.19)

4 . 1 7 4.36

Genera l ReserveAs per last Balance Sh eet 1 , 1 2 9 . 3 3 1,271.29Add:Transfer from Profit & Loss Account 1 3 0 . 1 4 57 .50Less : Exchange Rate Vatiation on Restatment of ECB of 2007-08 in l ine with

tran sit iona l provisions of AS-11 - (199.46)

1 , 2 5 9 . 4 7 1,129.33Pro fi t an d Loss Accoun tSurplus per Account annexed 8 , 7 1 5 . 1 5 8,104.16

1 1 , 2 1 8 . 9 6 10,391.62

3 . SE CURE D LOANSi. Colla t e ra l Bor rowing and Lend ing Ob liga t ion (CBLO) 2 5 0 . 0 0 390 .00

(Secu red b y Pledge of Oil Bonds )(Due for repayment within one year : Rs. 250 crores; 2008-09 : Rs. 390 crores)

ii. Ove rd ra ft s fr om Ba n k s 1 2 5 . 8 8 308 .83(Secured by hypothecat ion of Stock- in-Trade)

iii. 7 .35% Non-Conver t ib le Deben t u res ( r epayab le on 04 t h December 2012) 1 , 0 0 0 . 0 0 -(Secured by mortgage, on first pari passu charge basis, over certainfixed assets of the Company si tuated at Mumbai Refinery)

1 , 3 7 5 . 8 8 698 .83



49


Rs. / Crores

2 0 0 9 - 1 0 2 0 0 8 - 0 94 . UNS ECUR ED LOANS

Fi xed Depos i t s 0 . 0 2 0 . 0 2

Cl ean Loans f rom Banks 7 , 9 7 5 . 0 0 1 5 , 6 9 0 . 0 0

(Due for repayment within one year : Rs. 7,975 crores; 2008-09 : Rs. 15,690 crores)

Shor t Term Loans f rom Banks 4 , 0 4 0 . 6 0 1 , 2 8 9 . 3 5

(repayable in foreign currency)

(Due for repa yment within one year : Rs. 4,040.60 crores; 2008-09 : Rs. 1,289.35 crores)

Term Loan f rom Oi l Indust ry Development Board 5 4 8 . 0 0 1 , 0 1 0 . 0 0

(Due for repayment within one year : Rs. 96.25 crores; 2008-09 : Rs. 600 crores)

Synd i ca t ed Loans f rom Fore i gn Banks 2 , 0 1 2 . 8 7 2 , 1 6 2 . 8 1

(repayable in foreign currency)

(Due for repayment wi thin one year Rs. Ni l ; 2008-09 :Rs. Ni l )

In t e r Company Depos i t s 2 , 5 0 0 . 0 0 1 , 3 0 4 . 5 0

(Due for repa yment within one year Rs. 2,500 crores; 2008-09 : Rs. 1,304.50 crores)

Commerc i a l Paper 2 , 8 5 0 . 0 0 6 0 0 . 0 0(Du e for rep aym ent within on e year Rs. 2,85 0 cr ores; 2 008 -09 : Rs. 600 crores )

(Max i mum amoun t r a i sed du r i ng 2009-10 : Rs . 4 ,500 cro res ; 2008-09 :

Rs . 800 cro res )

1 9 , 9 2 6 . 4 9 2 2 , 0 5 6 . 6 8


5 . F IXE D AS SE TS (A & B) (Rs. / Crores)

Gros s Block Ne t Ne t Gross Block Dep r ecia t ion Tota l Ne t Net

a t cos t Add it ion s / Dedu ct ion s / a t cos t a n d Depr ecia t ion Ba la n ce Ba la n cea s a t Recla s s ifi- Recla s s ifi a s a t Am ort is a t ion a n d a s a t a s a t

01 / 0 4 / 2 0 09 ca t ion s ca t ion s 3 1 / 0 3 / 2 01 0 for t he yea r Am ort is a t ion 31 / 0 3 / 2 0 10 31 / 0 3 / 2 0 09

2009 -1 0 u p to3 1 / 0 3 / 2 0 1 0

A. OTHER THAN INTANGIBLE ASSETS

1 La n d -Freeh old 5 4 2 .2 8 3 1 .4 8 - 5 7 3 .7 6 - - 5 7 3 .7 6 5 4 2 .2 8

2 Roa d s a n d Cu lver ts 1 0 5 6 .9 9 2 2 1 .2 4 2 .3 7 1 2 7 5 .8 6 2 0 .7 6 1 1 9 .7 3 1 1 5 6 .1 3 9 5 5 .8 2

3 Bu ild in gs 1 9 5 0 .0 1 2 6 3 .9 1 5 .0 1 2 2 0 8 .9 1 4 7 .3 9 3 0 3 .1 4 1 9 0 5 .7 7 1 6 9 1 .3 5

4 Lea s eh old Prop er ty - La n d 3 2 8 .2 6 3 6 .7 0 0 .2 8 3 6 4 .6 8 1 1 .1 3 4 8 .4 6 3 1 6 .2 2 2 9 0 .7 0

5 Ra ilwa y Sid in g & Rollin g S tock 2 8 1 .9 9 1 0 .0 2 - 2 9 2 .0 1 1 2 .5 1 1 6 5 .6 0 1 2 6 .4 1 1 2 8 .9 1

6 Pla n t & Ma ch in ery 1 5 2 9 7 .6 4 4 1 0 7 .9 1 2 6 .3 0 1 9 3 7 9 .2 5 9 9 7 .8 4 8 6 4 8 .2 0 1 0 7 3 1 .0 5 7 6 2 2 .7 1

7 F u r n it u r e, F ix tu r e s & O ffic e/

La bora tory Equ ipm en t 5 0 6 .6 8 7 6 .1 1 9 .2 9 57 3 .5 0 4 1 .7 0 25 4 .1 9 31 9 .3 1 2 86 .8 6

8 Tra n s p or t Equ ipm en t 1 2 5 .6 0 2 8 .4 6 3 .3 3 1 50 .7 3 1 1 .9 8 7 0 .0 0 80 .7 3 6 4 .55

9 U n a llo ca t ed C a p it a l Ex pe n dit u r e

on La n d Developm en t 0 .2 0 2 .2 1 - 2 .4 1 - 0 .2 0 2 .2 1 -

TOTAL(A) 2 0 0 8 9 .6 5 4 7 7 8 .0 4 46 .58 2 4 8 2 1 .1 1 1 1 4 3 .3 1 9 6 0 9 .5 2 1 5 2 1 1 .5 9 1 1 5 8 3 .1 8

B. INTANGIBLE ASSETS

1 Righ t of Wa y 1 6 .8 1 0 .0 4 - 1 6 .8 5 - - 1 6 .8 5 1 6 .8 1

2 Tech n ica l / Proces s Licen s es 1 0 .9 7 2 2 .5 2 - 3 3 .4 9 4 .3 1 8 .4 4 2 5 .0 5 6 .4 5

3 Software 9 1 .4 0 2 5 .5 6 0 .0 4 1 1 6 .9 2 2 0 .3 0 6 3 .7 4 5 3 .1 8 4 8 .3 1

TOTAL (B) 1 19 .1 8 48 .12 0.04 1 6 7 .26 24 .61 72.18 95.08 71.57

TOTAL (A+B) 2 0 2 0 8 .8 3 4 8 2 6 .1 7 46 .62 2 4 9 8 8 .3 7 1 1 6 7 .9 2 9 6 8 1 .7 0 1 5 3 0 6 .6 7 1 1 6 5 4 .7 5

PREVIOUS YEAR 1 9 5 7 0 .0 5 7 6 5 .5 0 1 2 6 .7 2 2 0 2 0 8 .8 3 9 8 1 .4 3 8 5 5 4 .0 8 1 1 6 5 4 .7 5

A. Includes asse t s cos t ing Rs . 76,191/ - (2008-09 : Rs . 76,191/ - ) of e r s twhile Kosan Gas Company not han ded over to theCorporat ion. In case of these assets, Kosan Gas Company was to give up their claim. However, in view of the tenancy rightsought by third party, the matter is under l i t igat ion.

B. Includes Rs . 76.90 Crores (2008-09 : Rs . 74.75 Crores) be ing the Corpora t ion’s Sh are cos t of land and other asse t s jo int lyowned with other Oil Companies.

C. Tit le Deeds to some of the land s acqu ired are st i ll to be obtained. In certain cases, registrat ion of the t i t le of the as sets ispend ing as the legal forma lit ies are yet to b e completed.

D. Includes Rs . 0 .01 lakhs (2008-09 : Rs . 0 .01 lakhs ) being share a ppl ica t ion m oney in co-opera t ive hous ing socie t ies .E. Includes Rs. 56.20 crores (2008-09 : Rs. 53.53 crores) towards Plant & Machinery, Roads & Culverts, Transformers & Transmission

Lines, Railway Siding & Roll ing Stock, ownersh ip of which does n ot vest with the Corporat ion. Thes e ass ets a re am ortised atthe rate of depreciation specified in Schedule XIV of the Companies Act, 1956.



50


R s . / C r o re s

2 0 0 9 - 1 0 2 0 0 8 - 0 9

6 . C AP I T AL WO R K-I N- PR O GR E S S (AT CO S T )

Unal l oca t ed Cap i t a l Expend i t u re and Mat er i a l s a t S i t e 3 , 3 2 5 . 7 6 4 , 0 4 4 . 6 1Advances fo r Cap i t a l Expend i t u re 4 9 . 3 5 8 4 . 0 9Capi tal Stores 7 7 . 2 1 3 9 . 6 5Capi tal Stores ly ing wi th Contractors 1 6 5 . 4 1 4 . 4 9Cap i t a l goods i n t r ans i t 4 . 4 3 1 2 . 2 6

3 , 6 2 2 . 1 6 4 , 1 8 5 . 1 0Cons t ruc t i on per i od expenses pend i ng appor t i onmen t (Net o f r ecovery ) :E s t a b l i s h m e n t c h a r g e s 8 8 . 9 6 7 6 . 0 9I n t e r e s t 1 6 9 . 6 6 5 7 6 . 7 3Ot her Bor rowi ng Cos t 6 . 8 1 1 6 3 . 1 5Deprec i a t i on 0 . 0 0 0 . 0 0

2 6 5 . 4 3 8 1 5 . 9 7

3 , 8 8 7 . 5 9 5 , 0 0 1 . 0 7

7 . INVE S T ME NT S

I. LO NG TE R M I NVE S TME NT S (a t C o s t ):

A. T RADE I NVE S TME NT S

Q u o t e d

1 . Ma n g a lo re R efin e r y a n d P e tr oc h em i ca ls L td .

29 ,71 ,53 ,518 Equ i t y Shares o f Rs . 10 each fu l l y pa i d up 4 7 1 . 6 8 4 7 1 . 6 8

2 . Oil In dia Lt d .

53 ,50 ,110 Equ i t y Shares o f Rs . 10 each fu l l y pa i d up pu rchased /

a l l o t t ed du r i ng t he year 5 6 1 . 7 6 -

3 . 6 . 3 5% O il Ma r k e t in g C om p a n i e s ’ G OI Sp e cia l Bo n d s 2 0 2 4 - 4 , 6 0 3 . 7 3

(Re-c l ass i f i ed under Cur ren t Inves t men t s du r i ng t he year )

4 . 6 . 9 0% O il Ma r k e t in g C om p a n i e s ’ G OI Sp e cia l Bo n d s 2 0 2 6 3 , 5 0 0 . 0 0 3 , 5 0 0 . 0 0

U n q u o t e d1 . H PC L- Mit ta l E n er gy Lt d.

1 ,22 ,64 ,70 ,000 Equ i t y Shares (76 ,09 ,70 ,000 Equ i t y Shares fo r 2008-09) 1 , 2 2 6 . 4 7 7 6 0 . 9 7

2 . Hin du s ta n Cola s Lt d .

47 ,25 ,000 Equ i t y Shares o f Rs . 10 each fu l l y pa i d -up 4 . 7 3 4 . 7 3

3 . Pet ron et In d ia Lt d .

1 ,59 ,99 ,999 Equ i t y Shares o f Rs . 10 each fu l l y pa i d up 1 6 . 0 0 1 6 . 0 0

Less : Provision for Dimuni t ion ( 1 6 . 0 0 ) (16 .00 )

4 . Pe t r on et MHB Lt d .

15,78,41,000 Equi ty Shares of Rs. 10 each ful ly paid up 1 5 7 . 8 4 1 5 7 . 8 4


F. Includes fol lowing asse t s which a re used for d is t r ibut ion of PDS Kerosene un der J ana Kalyan Par iyojna a gains t whichfinancial assistance provided by OIDB.

(R s . / C r o r e s )

De s c r i p t i o n F ir s t Cos t (3 1 / 0 3 / 2 0 1 0 ) F ir s t Cos t (3 1 / 0 3 / 2 0 0 9 )

Roa ds & Cu lvert s 0.16 0.16

Bu ild in gs 1.68 1.70

Pla n t & Mach in ery 3.28 3.28

T o t a l 5 .1 2 5 .1 4

G. Includ es ass ets ret ired from active use an d held for disposa l - Gross Block : Rs. 41.78 crores / Net Block : Rs. 12.98 crores (2008 -09 : Gross Block : Rs. 27 .85 crores / Net block : Rs. 6.07 crores) . These a sets a re valued at their Net Book Value or NetRealisable Value whichever is lower : Rs. 4.72 crores (2008-09 : Rs. 0.98 crores).

H. Addit ions / Re-classificat ions ar e net of Rs. Nil (2008 -09 : Rs. 1,018.72 Crores) towards reversal of ass ets capital ised earl ier .I. Depreciat ion an d am ortizat ion is net of Rs. Nil (2008 -09 : Rs. 54.83 Crores) towards reversal of depreciat ion on (H) above.J. Deprecation for the year includes Rs. 3.15 Crores (2008 -09 : Rs. Nil) on Inta ngible assets an d Rs. 0.37 Crores (2008 -09 : Rs.

Nil) on Plant and Machinery towards Prior Period.



52


R s . / C r o re s

Co s t Ma r k e t / R e d e m p t io n Va lu e

2 0 0 9 - 1 0 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 0 8 - 0 9

Aggregate of quoted Investments 1 0 , 5 6 7 . 0 8 1 3 , 2 4 1 . 6 0 1 0 , 2 2 6 . 9 7 1 2 , 9 4 8 . 3 4

Aggregate of unquoted Investments 1 , 5 9 5 . 3 9 1 , 0 2 6 . 3 9

1 2 , 1 6 2 . 4 7 1 4 , 2 6 7 . 9 9

* Members i n Pe tro leum Ind i a In t e rna t iona l (AOP) : H indus t an Pe t roleum Corpora t ion Lt d . , Bhara t Pe tro leum

Corporation Ltd., Engineers India Ltd., Indian Oil Corporation Ltd., Indian Petrochemicals Corporation Ltd.,

Chennai Petroleum Corporation Ltd. and Oil India Ltd.

** Inc ludes Rs . 0 .14 lakhs (2008-09 : Rs . 0 .14 lakhs ) no t in t he possess ion o f t he Compan y

*** Pledged with Clear ing Corporat ion of India Limi ted against CBLO Loan

Rs. / Crores

2 0 0 9 - 1 0 2008-09

8 . INVENTORIES

(As per Inventory taken, valued and cer t i f ied by the Management)

Raw Materials (Including in trans it - Rs. 661.68 crores; 2008-09 : Rs. 885.66 crores) 2 , 5 7 8 . 9 1 2 , 0 5 5 . 3 8

Finished Products - (Including in tra ns it - Rs. 116.29 crores; 2008-09 : Rs. 6.12 crores) 8 , 9 6 6 . 9 2 6 , 2 1 5 . 0 9

St ock i n Process 8 3 6 . 8 9 3 3 8 . 7 6

P a c k a g e s 8 . 1 6 7 . 4 9

1 2 , 3 9 0 . 8 8 8 , 6 1 6 . 7 2

St o res and Spares * 1 8 8 . 3 4 1 7 6 . 3 1

1 2 , 5 7 9 . 2 2 8 , 7 9 3 . 0 3

* Includes stock lying with contractors Rs.1.73 crores (2008-09 : Rs. 1.18 crores)

9 . S UNDR Y DE BT OR S : (Un s e c u re d )

Over s i x mon t hs :

Cons i dered good 7 2 . 1 1 5 6 4 . 9 0

Cons i dered doub t fu l 7 8 . 6 5 6 0 . 1 5

O t h e r s :

Cons i dered good 2 , 3 8 8 . 2 7 1 , 6 9 6 . 7 8

2 , 5 3 9 . 0 3 2 , 3 2 1 . 8 3

Less: Provision for Doubtful Debts * 1 0 1 . 6 9 8 0 . 9 2

2 , 4 3 7 . 3 4 2 , 2 4 0 . 9 1

*Provision for doubt ful debts , in addi t ion to speci f ic provision, includes an

ad-h oc provision @ one per cen t of outs tan ding domest ic debts (o ther th an

t h o s e r e l a t i n g t o oi l m a r k e t i n g c om p a n i e s a n d s u b s i d i a r y / j oi n t ve n t u r e

c o m p a n i e s ) .

1 0 . C AS H AND B ANK B AL ANC E S

C a s h o n h a n d 1 . 4 5 1 . 4 1

Cheques Awai t i ng Depos i t 3 . 5 9 3 . 6 2

W i t h S c h e d u l e d B a n k s :

- On Cur ren t Accoun t s 2 3 3 . 7 3 5 9 9 . 6 2

- On Non-opera t i ve Cur ren t Accoun t s* 0 . 0 1 0 . 0 1

- On Fixed Deposi t Accounts ** 4 . 2 9 3 . 8 8

W i t h O t h e r s :

In Cur ren t Accoun t wi t h Mun i c i pa l Co-opera t i ve

Bank Lt d . (max i mum bal ance du r i ng t he year

Rs . 0 .17 cro res , 2008-09 : Rs .0 .14 cro res ) 0 . 1 1 0 . 1 1

2 4 3 . 1 7 6 0 8 . 6 4

* R ep r e s en t s a m o u n t d e p os it e d a s p e r C ou r t O r d er p e n d in g fin a l d is p o s a l.** Inc l udes l odged as s ecu r i t y depos i t w it h Mum bai Por t Trus t - Rs . 0 .54 cro res

( 2008-09 : Rs.0 .54 crores) and wi th IAAI - Rs. 0 .44 crores ( 2008-09 : Rs.0 .27 crores)




53



1 1 . O TH E R C UR R ENT AS S ET S

In t e res t accrued on Bank Depos i t s and Inves t men t s 1 2 3 . 7 4 1 8 1 . 1 5

1 2 . L OANS A ND AD VANC E S

S e c u r e d , c o n s i d e r e d g o o d :

Advances recoverab le in ca sh or in kind or for value to be received * 3 6 3 . 4 5 412 .31

Interest Accrued thereon 1 5 4 . 5 7 146 .29

Unsecured , cons i dered good :

Advances recoverab le in ca sh or in kind or for value to be received 1 9 . 9 8 3.70

Balances wi th Excise, Cus toms, Por t Trust etc. 1 0 2 . 4 9 119 .06

Other Deposits 2 6 1 . 5 4 167 .09

Prepaid E xpenses 9 9 . 8 4 54 .84

Amoun ts recoverable un der Su bsidy Schemes** 3 , 0 4 1 . 0 9 2,075.40

Share appl icat ion money pen ding al lo tment 4 . 9 8 4.98

Advance towards equity 4 2 1 . 1 5 24 .50

Other Accounts Receivable *** 7 8 9 . 3 8 1,172.45

Unsecured , cons i dered doub t fu l :

Accounts Receivable & Deposits 3 . 4 5 3.85

5 , 2 6 1 . 9 2 4 , 1 8 4 . 4 6

Less : Provision for Doubtful Receivables 3 . 4 5 3 . 8 5

5 , 2 5 8 . 4 7 4 , 1 8 0 . 6 1

* In c lu d e s R s . 0. 2 8 c ro r es , (2 0 0 8 -0 9 : Rs . 0 .2 9 c r or e s ) d u e fr o m D ir e ct or s ;max i mum bal ance - Rs . 0 .35 cro res , (2008-09 : Rs . 0 .43 cro res ) and Rs . Ni l(2008-09 : Rs. 0.01 crores) due from an Officer; maximum balance - Rs. Nilc ro res , (2008-09 : Rs . 0 .01 cro res )

** In c lu d e s R s . 3 ,0 3 4 . 0 8 cr o r es t o wa r d s B u d g et a r y Su p p o r t fo r FY 2 0 0 9 - 1 0from Govt. of India, (2008 - 09 : Oil Bonds Receivable Rs. 2,033.99 crores)

*** In c l u d e s R s . 6 . 3 0 c r or e s (2 0 0 8 - 0 9 : R s . 5 .8 7 c r o r es ) b e in g a m o u n t d u et owards Comp an y’s sha re o f p ro fi t in Pe t ro leum Ind i a In t e rna t i ona l

1 3 . C UR R E NT L I AB IL IT I E S AN D P R OVI S IO NSA. Cu rr en t Lia bilit ie s

Sun dry Credi torsi ) To t a l o u t s t a n d i n g d u e s o f M ic r o, S m a l l a n d M e d iu m E n t e r p r is e s * 1 . 8 1 1 . 5 4i i ) Tot a l ou t s t and i ng dues o f c r ed it o r s o t her t han ab ove 7 , 3 9 1 . 3 2 5 , 6 4 3 . 8 7

Depos i t s from Deal er s / Consu mers fo r LPG Cyl inder s 3 , 7 2 5 . 7 0 3 , 2 1 0 . 0 2Ot her Depos i t s 1 8 3 . 3 4 1 6 7 . 0 2Ac c r u e d C h a r g e s / C r e d it s 5 6 . 4 2 4 2 . 4 2In t eres t accrued bu t no t due on l oans 7 8 . 7 8 1 1 6 . 3 4P r e fe r e n c e s h a r e c a p i t a l r e d e e m e d r e m a i n i n g u n c l a im e d / u n e n c a s h e d 0 . 0 1 0 . 0 1Uncl a i med Di v i dend** 3 . 0 1 4 . 2 9Other Liabi l i t ies 3 , 0 0 9 . 5 1 1 , 3 2 4 . 7 5

1 4 , 4 4 9 . 9 0 10,510.26

B. Pr ovis ion sProvision for Tax (Net) 5 5 1 . 1 2 326 .62Provision For Dividend 4 0 6 . 3 5 177 .78

Provision for Gratuity & Pension 1 5 5 . 4 9 114 .10Provision for Other Long Term Benefits 4 8 4 . 0 7 363 .60Provision for Other Employee Benefits 4 4 0 . 5 3 244 .40Provision for Fr inge Benef i t Tax 0 . 1 6 0 . 1 6Tax on Dist r ibuted Prof i t s 6 7 . 4 9 3 0 . 2 1

2 , 1 0 5 . 2 1 1 , 2 5 6 . 8 7

1 6 , 5 5 5 . 1 1 1 1 , 7 6 7 . 1 3

* To t h e e xt e n t M ic r o a n d S m a ll E n t e r p r is e s h a ve b e e n id e n t i fi ed , t h e o u t s t a n d i n g b a l a n c e i n c lu d i n g in t e r e s tt hereon , i f any , as on March 31 , 2010 i s d i sc l osed on wh i ch Aud i t o r s have r e l i ed upon .

** No amou n t i s du e as a t t h e end o f t he year for c r ed it t o Inves t or s ’ Educa t ion an d Pro t ect ion Fun d .

Rs. / Crores

2 0 0 9 - 1 0 2 0 0 8 - 0 9



54


1 4. O TH ER INCO ME

Interest (Gross) : *

O n I n v e s t m e n t s

Long Term Inves t men t s 2 4 1 . 5 0 1 2 0 . 7 7

C u r r e n t I n v e s t m e n t s 4 5 7 . 8 7 2 9 1 . 5 5

On Depos i t s 0 . 3 7 0 . 2 4

On Staff Loans 1 5 . 4 0 1 7 . 0 0

On Cus tomers ’ Accoun ts 5 4 . 2 8 7 5 . 6 9

O n O t h e r s 3 8 . 0 0 3 1 . 8 2

8 0 7 . 4 2 5 3 7 . 0 7

D i v i d e n d i n c o m e 4 6 . 2 5 3 6 . 8 4

Share of Prof i t f rom Pet roleum India In ternat ional (AOP) 0 . 6 2 0 . 8 2

Ren t Recover i es 6 1 . 5 9 5 1 . 4 6

Pro f i t on sa l e o f Cur ren t Inves t men t s - 3 7 . 8 3

Exchange rate var iat ion (Net ) 5 3 3 . 3 0 -

Profit on sale of fixed assets (Net) 1 . 6 6 0 . 8 1

Mi sce l l aneous Income ** 1 9 5 . 3 2 2 4 0 . 9 6

8 3 8 . 7 4 3 6 8 . 7 2

1 , 6 4 6 . 1 6 905 .79

Note:

* Tax deducted at source amounts to Rs. Nil (2008-09 : Rs. 0 .11 crores)

** Miscellaneous Income Includes Rs. 0 .19 crores (2008-09 : Rs. 0 .19 crores)

on account of amortisation of capital grant and Rs. Nil (2008-09 : Rs. Nil)on account of recognition of revenue grant from OIDB during the year.

1 5 . I NC R E AS E / (D E CR E AS E ) I N I NVE N TO R Y

Closing Stock:

S t ock i n Process 8 3 6 . 8 9 3 3 8 . 7 6

F i n i s h e d P r o d u c t s 8 , 9 6 6 . 9 2 6 , 2 1 5 . 0 9

9 , 8 0 3 . 8 1 6 , 5 5 3 . 8 5

Le s s : O p e n i n g S t o c k :

S t ock i n Process 3 3 8 . 7 6 4 8 5 . 6 1


6 , 5 5 3 . 8 5 8 , 3 9 0 . 6 3

3 , 2 4 9 . 9 6 (1 ,836 .78 )

1 6 . P AYM E NT S T O AN D P R O VI S I O NS F O R E M P LO YE E S

Sal ar i es , Wages , Bonus , e t c . 1 , 1 4 3 . 9 0 8 2 9 . 9 0

Con t r i bu t i on t o Prov i den t Fund 7 7 . 3 4 4 6 . 9 3

Pens i on , Gra t u i t y e t c . 1 4 2 . 7 6 8 5 . 5 5

Empl oyee Wel fare Expenses 2 5 3 . 3 2 1 7 3 . 1 5

1 , 6 1 7 . 3 2 1 , 1 3 5 . 5 3

Schedules forming part of the Profit and Loss Account

Rs. / Crores

2 0 0 9 - 1 0 2008-09



55


1 7 . O TH E R O P ER AT ING E X PE NS E S

Consumpt i on o f S t o res , Spares and Chemi ca l s 1 7 4 . 2 7 1 2 1 . 3 6

P o w e r a n d F u e l 2 , 4 1 2 . 2 8 2 , 3 0 4 . 6 2

Less : Fue l o f own p roduct i on consumed 2 , 1 6 4 . 0 7 2 , 2 8 5 . 6 0

2 4 8 . 2 1 1 9 . 0 2

Repai r s and Mai n t enance - Bu i l d i ngs 3 8 . 3 4 2 7 . 9 3

Repai r s and Mai n t enance - P l an t & Mach i nery 4 2 5 . 1 9 3 4 4 . 5 1

Repai r s and Mai n t enance - Ot her Asse t s 9 6 . 1 6 8 2 . 7 4

I n s u r a n c e 2 1 . 8 1 1 7 . 1 8

R a t e s a n d T a x e s 4 8 . 8 7 3 8 . 6 6

I r r ecoverab l e Taxes and Ot her Lev i es 1 2 3 . 5 5 1 4 0 . 3 5

Equ i pmen t Hi re Charges 6 . 2 2 1 . 2 9

R e n t 1 3 7 . 3 8 1 2 5 . 9 3

Travel l i ng and Conveyance 9 7 . 3 9 9 8 . 2 0

P r i n t i n g a n d S t a t i o n e r y 1 0 . 7 5 9 . 5 5

Elect r ici ty and Water 2 2 5 . 5 0 1 7 3 . 1 7

C h a r i t i e s a n d D o n a t i o n s 1 5 . 1 6 1 4 . 0 0

St o res & spares wr i t t en o f f 1 . 8 2 0 . 8 1

Loss on Sa l e o f Cur ren t Inves t men t 5 6 . 7 5 -

Loss on Sale of Long Term Investment - 1 . 2 7

Prov i s i on fo r Di mi nu t i on i n va l ue o f Cur ren t Inves t men t s 7 0 3 . 7 3 (75 .28 )

Provision for Doubtful Receivables - 0 . 9 3

(After adjust ing provision no longer requi red)

Provision for Doubtful Debts 2 0 . 4 7 6 . 7 8

(After adjust ing provision no longer requi red)

Loss on Sa le/ wri te off of Fixed Ass ets / CWIP (Net ) - 8 . 2 8

Secur i t y Charges 6 6 . 5 5 5 8 . 1 2

Adver t i semen t & Pub l i c i t y 1 0 4 . 4 8 8 3 . 7 2

Sundry Expenses and Charges (No t o t herwi se c l ass i f i ed ) 2 9 1 . 0 5 2 5 5 . 8 9

Consu l t ancy & Techn i ca l Serv i ces 2 5 . 2 1 2 8 . 7 3

Exchange Rate Var iat ion (Net ) - 4 8 3 . 0 2

2 , 9 3 8 . 8 6 2 , 0 6 6 . 1 5

1 8 . BO RR OWI NG C OS T

In t e res t on :

- Long Term Loans 2 3 . 6 1 5 5 . 2 8

- Shor t Term Loans 5 4 9 . 0 6 1 , 3 0 5 . 2 6

- Overdraf t f rom Banks 3 1 2 . 5 2 7 1 9 . 2 2

- Ot her s 1 8 . 5 6 3 . 0 8

9 0 3 . 7 5 2 , 0 8 2 . 8 4

1 9 . P R IO R PE R IO D D E BI TS / (C RE D IT S )

Raw Mater ial & Packages ( 4 . 7 0 ) (0 .16 )

Deprec i a t i on 3 . 5 2 0 . 1 5

Exchange rate var iat ion (Net ) ( 2 . 6 6 ) -

( 3 . 8 4 ) (0 .01 )

Rs. / Crores

2 0 0 9 - 1 0 2008-09

Schedules forming part of the Profit and Loss Account



56


Statement of Significant Accounting Policies and Notes forming part of Accounts

2 0 A. S IG NI F IC ANT AC CO UNT ING PO LI CI ES

The f i nanci a l s t a t emen t s a r e p repared under h i s t o r i ca l cos t conven t i on i n acco rdance wi t h Genera l l y Accep t edAccount ing Pr inciples (GAAP), Account ing Standards referred to in the Companies (Account ing Standards) Rules ,2006 i ssued by the Cent ral Government and the relevant provisions of the Companies Act , 1956. Al l income andexpend i t u re hav i ng mat er i a l bear i ng are r ecogn i zed on accrua l bas i s , excep t where o t herwi se s t a t ed . Necessarye s t i m a t e s a n d a s s u m p t i o n s o f i n c o m e a n d e x p e n d i t u r e a r e m a d e d u r i n g t h e r e p o r t i n g p e r i o d a n d d i f f e r e n c ebet ween t he ac t ua l and t he es t i mat es a re r ecogn i sed i n t he per i od i n wh i ch t he r esu l t s mat er i a l i se .

1 . FIXE D AS SE TS

a . La n d a c q u i r ed o n le a s e fo r 9 9 ye a r s o r m o re is t r e a t e d a s fr e eh o ld l a n d .

b . T ec h n i c a l k n o w- h o w / l ic e n c e fe e r e la t i n g t o p l a n t s / fa c i li t ie s a r e c a p i t a l iz e d a s p a r t o f c o s t o f t h eu n d e r l y i n g a s s e t .

2 . INTANG IB LE A SS E TS

a. Cost of Right of Way for laying pipelines is capi tal ised as In ta ngible Asset an d being perpetu al in n atu re,i s no t amor t i sed .

b . T ec h n i c a l k n o w - h o w / li ce n c e fe e r e la t i n g to p r od u c t i o n p r o ce s s a n d p r o c es s d e s i gn a r e r e c o gn i ze d a sIn t ang i b l e Asse t s .

c . C o s t o f S o ft w a r e d i r e c t ly id e n t i fi ed w it h h a r d w a r e i s c a p i t a l is e d a l o n g wi t h t h e c o s t o f h a r d w a r e .

App l i ca t i on so f t ware i s cap i t a l i sed as In t ang i b l e Asse t .3 . C O NS TR UC TIO N PE R IO D E XP E NS E S O N P RO J E C T S

a . R ela t e d e x p en d i t u r e (in c lu d i n g t e m p o ra r y fa c ilit ie s a n d c r o p c o m p e n s a t io n e x p e n s e s ) in c u r r e d d u r in gcons t ruc t i on per i od i n r espec t o f p l an p ro j ec t s and maj o r non-p l an p ro j ec t s a r e cap i t a l i sed .

b . F in a n c in g c o s t in c u r r e d d u r i n g t h e c on s t r u c t io n p e r io d o n lo a n s s p e c ifi ca l ly b or r o we d a n d u t i li s e d fo rp ro j ec t s i s cap i t a l i sed . F i nanci ng cos t i nc l udes exchange l o sses i n r e l a t i on t o bo r rowi ngs denomi nat edi n fo re i gn cu r rency .

c . F in a n c in g c o s t , if a n y, in c u r r e d o n g e n e r a l b or r o win g s u s e d fo r p r o je c t s d u r i n g th e c o n s t r u c t io n p e r io di s cap i t a l i sed a t t he wei gh t ed average cos t .

4 . D EP RE CIATIO N

a . D e p r ec ia t i on o n F ix e d As s e t s i s p r ov id e d o n t h e S t r a ig h t Lin e m e t h o d , in t h e m a n n e r a n d a t t h e r a t e sp rescr i bed under Schedu l e XIV t o t he Compan i es Act , 1956 and i s charged p ro r a t a on a mon t h l y bas i son as se t s , f rom / up t o and i nc lus i ve o f t he m on t h o f cap it a l isa t i on / sa l e , d isposa l o r de le t ion du r i ngt he year .

b . All asse t s cos t ing up t o Rs . 5000 / - , ot her t han LPG cylinder s an d p ressu re r egu la t o r s , a r e fu l ly dep rec ia t edin the year of capi tal i sat ion.

c . P r e m iu m o n l e a s e h o ld la n d i s a m o r t is e d o ve r t h e p er io d of le a s e .d . M a ch i n e r y S p a r e s , wh i ch c a n b e u s e d o n l y in c o n n e c t io n w it h a n it e m o f fix e d a s s e t a n d t h e u s e o f

wh i ch i s expec t ed t o be i r r egu l ar , a r e dep rec i a t ed over a per i od no t exceed i ng t he usefu l l i f e o f t hepr incipal i tem of f ixed asset .

e . In t a ng ib l e Asse t s o t her t han app l ica t i on so ft ware a re amor t ized on a s t r a i gh t li ne bas i s over a per iod of t en year s o r l ife o f t he u nd er l yi ng p l an t / fac i li t y, wh i chever i s ear l ie r .

f . Appl icat ion software are norm al ly am ort ised over a per iod of four years , or over it s us eful li fe, whicheveri s ear l i e r .

5 . IMP AIR ME NT OF AS S E TS

A t e a c h b a l a n c e s h e e t d a t e , a n a s s e s s m e n t i s m a d e o f w h e t h e r t h e r e i s a n y i n d i c a t i o n o f i m p a i r m e n t . A nimpai rment loss i s recognised whenever the carrying amount of assets of cash generat ing uni t s(CGU) exceedst he i r r ecoverab l e amoun t .

6 . F O R E IG N C U R RE N C Y T RAN S AC TI O NS

a . F or e ig n C u r r e n cy t r a n s a c t io n s d u r i n g t h e ye a r a r e r e c or d e d a t t h e e x ch a n g e r a t e s p r e va i lin g o n t h e d a t eo f t r a n s a c t i o n s .

b . Al l fo r e ig n c u r r e n c y a s s e t s , l ia b i li tie s a n d f or w a r d c o n t r a c t s a r e r e s t a t e d a t t h e r a t e s p r e v a il in g a t t h ey e a r e n d .

c. Al l exchange differences (except as s tated in para 3 (b) of Schedu le 20A and para 1 0 of Schedu le 20B) ared e a l t w i t h i n t h e p r o f i t a n d l o s s a c c o u n t i n c l u d i n g t h o s e c o v e r e d b y f o r w a r d c o n t r a c t s , w h e r e t h ep remi um / d i scoun t a r i s i ng from su ch con t r ac t s a r e r ecogn i sed over t he per i od of con t r ac t s .

d . T h e r e a li s e d ga i n o r lo s s i n r e s p e c t of c o m m o d i t y h e d g in g c o n t r a c t s , t h e p r i c in g p e r io d o f w h i ch h a sexpired during the year, are recognised in the Profit & Loss Account along with the underlying transaction.However , i n r espec t o f con t r ac t s , t he p r i c i ng per i od o f wh i ch ex t ends beyond t he ba l ance shee t da t e ,sui table provision i s made for l ikely loss , i f any.

7 . INVE STME NTS

a. Long- t e rm i nves t men t s a r e va l ued a t cos t and p rov is i on for d i minu t ion i n va l ue t hereof is m ade , wherever

s u c h d i m i n u t i o n i s o t h e r t h a n t e m p o r a r y .



57



b . C u r r e n t in v es t m e n t s a r e va l u e d a t t h e lo we r of c os t a n d f a ir va l u e .

8 . INVE NTO RIE S

a. Crude oil is valued a t cost on Firs t In Firs t Out (FIFO) basis or at net real i sable value, whichever is lower .

b . Raw mat er ia l fo r lub r i can t s and fin i shed lub r i can t s a r e va lued a t weigh t ed average cos t o r a t ne t r ea l isab l e

value, wh ichever is lower.

c. Stock-in process i s valued at raw mater ial cost p lus cost of conversion or at net realisable value, whichever i s

l o w e r .

d . F in i s h e d p r o d u c t s o t h e r t h a n L u b r i ca n t s a r e va l u e d a t c o s t (o n F IF O b a s i s ) o r a t n e t r e a lis a b l e va l u e ,

w h i c h e v e r i s l o w e r .

e . E m p t y p a c k a ge s a r e va lu e d a t w eigh t e d a ve r a ge c os t .

f . S t or e s a n d s p a r es a r e va lu e d a t we igh t e d a ve r a ge c os t .

g . Val ue o f su rp l us , obsole t e and s l ow movi ng s t o res and spa res , if any , is r educed t o ne t r ea lisab l e va l ue .

Surp l us i t ems , when t r a ns fer r ed from compl e t ed p ro jec t s a r e va l ued a t cos t / es t i mat ed va l ue , pend i ng

p e r i od i c a s s e s s m e n t / a s c e r t a i n m e n t o f c o n d i t io n .

9 . D UTIE S O N B OND E D S TO CKS

Excise / Cus t oms du t y i s p rov ided on s t ocks s t o red i n Bonded Warehou ses ( exc lud i ng goods exempt ed from

du ty / expor ts or where l iabi li ty to pay du ty is t ra ns ferred to cons ignee) .

1 0 . G RANTS

a . In c a s e o f d e p r ec ia b l e a s s e ts , t h e c os t o f t h e a s s e t i s s h o wn a t g ro s s va l u e a n d g r a n t t h e r e on i s t r e a t ed

a s C a p i t a l G r a n t s , w h i c h i s r e c o g n i s e d i n t h e P r o f i t a n d L o s s A c c o u n t o v e r t h e p e r i o d a n d i n t h e

p ropor t i on i n wh i ch dep rec i a t i on i s charged .

b . G r a n t s r ec e ive d a ga in s t r e ve n u e it e m s a r e r e co gn i s ed a s i n c om e .

1 1 . P RO VIS IO NS

A provision i s recognised when there i s a present obl igat ion as a resul t of a past event and i t i s probable that

an out f low of resources wi l l be requi red to set t le the obl igat ion in respect of which a rel iable est imate can be

m a d e .

12 . EXPLORATION & PRODUCTION EXPENDITURE

“Successful Effor t s Method” of account ing i s fo l lowed for Oi l & Gas explorat ion and product ion act iv i t ies as

s t a t ed be l ow:

a . C os t o f s u r v e ys , s t u d i e s , ca r r y in g a n d r e t a in i n g u n d e ve lo p ed p r o p e r tie s a r e e x p e n s e d o u t in t h e y ea r o f

i n c u r r e n c e .

b . Cos t o f acqu i s i t ion , d r il li ng an d developmen t a re t r ea t ed as cap i t a l work - in -p rog ress when i ncu r red an d

are cap i t a l i sed when t he wel l i s r eady t o commence commerc i a l p roduct i on .

c . Ac c u m u la t e d c o s t s on e x p lo r a t or y we lls i n p r o gr e s s a r e e x p en s e d o u t i n t h e ye a r in w h i ch t h e y a r e

de t ermi ned t o be d ry .

The p ropor t i ona t e share i n t he asse t s , l i ab i l i t i es , i ncome and expend i t u re o f j o i n t opera t i ons a re accoun t ed

as per t he par t i c i pa t i ng i n t e res t i n such j o i n t opera t i ons .

1 3 . E M PLO YE E B E NE F IT S

Liabi l i ty towards long term def ined employee benef i t s - leave encashment , gratui ty , pension, post – ret i rement

med i ca l benef i t s , l ong serv i ce awards , ex -g ra t i a , dea t h benef i t s and r ese t t l emen t a l l owance are de t ermi ned

o n a c t u a r i a l v a l u a t i o n b y i n d e p e n d e n t a c t u a r i e s a t t h e y e a r e n d b y u s i n g P r o j e c t e d U n i t C r e d i t m e t h o d .

Li ab i l i t y so de t ermi ned i s funded i n t he case o f l eave encashmen t and g ra t u i t y , and p rov i ded fo r i n o t her

c a s e s .

In respect of Provident Fund, the cont r ibut ion for the per iod i s recognized as expense and charged to Prof i t

& Loss Account .Shor t term employee benef i t s are recognized as an expense at an undiscounted amount in the Prof i t and Loss

Accoun t o f t he year i n wh i ch t he r e l a t ed serv i ces a re r endered .

1 4 . S ALE O F PR OD UC TS

Sal es a re ne t o f d i scoun t , i nc l ude app l i cab l e exc i se du t y , su rcharge and o t her e l emen t s as a r e a l l owed t o be

recovered as par t o f t he p r i ce bu t exc ludes VAT/ sa l es t a x .

1 5 . R E S E AR C H & D E VE L OP ME N T

E x p e n d i t u r e i n c u r r e d o n r e s e a r c h a c t i v i t i e s i s c h a r g e d o f f i n t h e y e a r i n w h i c h i t i s i n c u r r e d . E x p e n s e s

d i r e c t l y r e l a t e d t o d e v e l o p m e n t a c t i v i t i e s w h i c h a r e c a p a b l e o f g e n e r a t i n g f u t u r e e c o n o m i c r e s o u r c e s , a r e

t r ea t ed as i n t ang i b l e asse t s .



58


1 6 . T AXE S O N IN CO ME

a . P r ov is i on f or c u r r e n t t a x i s m a d e in a c c or d a n c e w it h t h e p r o v is i on s o f t h e I n c om e T a x Ac t , 1 9 6 1 .

b . D e fe r r e d t a x o n a c c o u n t o f t im i n g d iffe r e n c e b e t we e n t a x a b l e a n d a c c ou n t in g i n c om e i s p r o vid e d b yus i ng t ax r a t es and t ax l aws enac t ed o r subs t an t i ve l y enac t ed as a t t he ba l ance shee t da t e .

17 . CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS

C o n t i n g e n t L i a b i l i t i e s a r e c o n s i d e r e d o n l y f o r i t e m s e x c e e d i n g R s . 5 . 0 0 l a k h s i n e a c h c a s e . C o n t i n g e n tL i a b i l i t i e s i n r e s p e c t o f s h o w c a u s e n o t i c e s a r e c o n s i d e r e d o n l y w h e n c o n v e r t e d i n t o d e m a n d s . C a p i t a lCommi t men t s a r e cons i dered on l y fo r i t ems exceed i ng Rs . 1 .00 l akh i n each case .

18 . ACCOUNTING/ CLASSIFICATION OF EXPENDITURE AND INCOME

a . In s u r a n ce c la im s a r e a c cou n t e d on a c c ep t a n ce b a s is .

b . All ot h e r c la i m s / e n t it le m e n t s a r e a c c ou n t e d o n t h e m e r it s o f e a c h c a s e / r e a lis a t io n .

c . R a w m a t e r i a ls c on s u m e d a r e n e t of d i s co u n t t o wa r d s s h a r in g of u n d e r - r ec o ve r ie s .

d . In c o m e a n d e x p e n d i tu r e o f p r e vi ou s y ea r s , i n d ivid u a l ly a m o u n t i n g t o R s . 5 la k h s a n d b e lo w a r e n o tcons i dered as p r i o r per i od i t ems .

2 0 . B . NO TE S F O RM ING P AR T O F AC CO UNT S

1 . D u r i n g t h e ye a r , O NG C a n d G AIL o ffe r e d d is c o u n t o n p r ic e s o f c r u d e , S KO a n d L PG p u r c h a s e d fr o mt hem. Accord i ng l y , t he Corpora t i on has accoun t ed t he d i scoun t as under :

(a ) Rs . 796 .00 cro res (2008-09 : Rs . 995 .13 cro res ) d i scoun t r ece i ved on pu rch as e o f SKO (PDS) an dLPG (Domest ic) from ONGC an d GAIL has been adju sted agains t ‘Purch as e of Produ ct for Resale’.

(b ) Rs . 2451 .14 cro res (2008-09 : Rs . 6 ,181 .82 cro res ) d i scoun t r ece ived on crude o il pu r chas ed fromONGC ha s been adju sted a gainst ‘Raw Mater ial Cost ’.

2 . I n p r in c i p le a p p r o va l of G o ve r n m e n t o f I n d ia fo r Bu d g e t a r y S u p p o r t a m o u n t i n g t o R s . 5 5 6 3 . 1 3 c r o r es(2008-09 : O i l Bonds fo r Rs . 14 ,692 .77 cro res ) , has been r ece i ved and t he same have been accoun t edu nd er ‘Recovery und er Sub sidy Schem es’.

3 . (a ) In t e r -O il Co m p a n y tr a n s a c t io n s a r e r e co n cile d o n a c o n t in u o u s b a s i s . H ow eve r , ye a r e n d b a la n c e sare su b j ec t t o con f irma t i on / r econci li a t i on .

(b ) C u s t o m e r s ’ Ac c o u n t s a r e r e c o n c il ed o n a n o n g oi n g b a s i s a n d s u c h r e c o n c il ia t i on i s n o t l ik e l y t ohave a mat er i a l i mpact on t he ou t s t and i ng o r c l ass i f i ca t i on o f t he accoun t s .

4 . Add it iona l p rovis i on for t axa t ion amoun t ing t o Rs . 57 .51 crores has been crea t ed based on t he Assessmen t / Appel la t e Order s i n r espec t o f ear l ie r year s r ece ived du r i ng t he year .

5 . Th e C o rp o r a t io n h a s , a s a t t h e b a l a n c e s h e e t d a t e, e n t e r ed i n t o fo r ei gn e x c h a n g e h e d gi n g c o n t r a c t samounting to USD 1560.12 mill ion (2008-09 : USD 900.12 mill ion) to hedge i ts foreign currency exposuretowards loans / expor t earnings. The Corporat ion does not genera l ly hedge the r i sks on accoun t of foreign

currency exposure for the payment of crude. Exposures not hedged as of balance sheet date amounted toUSD 925.47 mi l l ion (2008-09: USD 562.13 mi l l ion) towards purchase of crude and USD 170.12 mi l l ion(2008-09 : USD 170.12 mi l l ion) in respect of loans taken.

6 . A n e w w h o lly o wn e d s u b s i d ia r y c o m p a n y , “ M / s . H P CL Bi ofu e l s Li m it e d ” h a s b e e n i n c o r p or a t e d o n

Oct ober 16 , 2009 t o p roduce b i o fue l s , such as – e t hano l , wh i ch i s b l ended wi t h pe t ro l .

7 . Deferred Tax Assets / (Liabil it ies) ar i s ing due to t iming differences comprise of:

Rs. / Crores

2 0 0 9 - 1 0 2008-09

Defer red Tax Asse t s

Provision for Employee Benef i t s 1 6 4 . 9 6 1 4 4 . 3 0

O t h e r s 2 8 4 . 6 9 1 2 5 . 7 0

T o t a l (A) 4 4 9 .6 5 2 7 0 . 0 0

D e f e r r e d T a x L i a b i l i t i e s

Deprec i a t i on ( 2 2 4 7 . 0 3 ) ( 1 8 6 3 . 7 2 )O t h e r s ( 1 0 . 5 9 ) (9 .65 )

T o t a l (B) (2 2 5 7 . 6 2 ) ( 1 8 7 3 . 3 7 )

De fe r r e d Ta x Lia b i li t ie s (A + B) (1 8 0 7 .9 7 ) ( 1 6 0 3 . 3 7 )

8 . Dur i ng t he cu r ren t year , i nves t men t s i n “6 .35% Oil Market ing Compan ies ’ GOI Specia l Bonds 2024" amoun t ingt o R s . 4 6 0 3 . 7 3 C r o r e s h a v e b e e n r e c l a s s i fi e d fr o m ‘L on g T e r m I n v e s t m e n t s ’ t o ‘C u r r e n t In v e s t m e n t s ’.Consequent ly , an amount of Rs. 756.88 Crores has been provided in the books of accounts towards diminut ion

i n t he va l ue fo r t h i s i nves t men t .




59


9 . T h e e m p lo ye e c os t fo r t h e y ea r 2 0 0 9 - 1 0 i s h i gh e r d u e t o p r ov is i on m a d e fo r Rs . 3 1 8 . 2 5 C r o r es t o w a r d s

revision in the salary for non-management s taf f , and perquisi tes & ret i ral benef i t s for management employees.

10 . In a cco rdan ce wit h t h e op t ion as per AS-11 (no t ifi ed u nder t h e Company’s Accoun t i ng S t andard Ru l es , 2006)exerc i sed i n t he year 2008-09 , t he Corpora t i on has ad j us t ed t he exchange d i f f e rences a r i s i ng on l ong t e rmforeign currency monetary i tems to the cost of assets .

11 . In l ine wi t h t he Indus t ry p rac t i ce, t he Corpora t i on h as ch anged du r ing t he cu r ren t year i t s Accoun t ing Po li cyre l a t i ng t o cos t s i ncu r red on t echn i ca l know-how and l i cense f ee , and i t s amor t i za t i on . Th i s has r esu l t ed i ndecrease in Prof i t for the current year by Rs. 3 .80 crores ( including Rs. 3 .15 crores for pr ior per iods) .

12 . To t he ex t en t Mi cro an d Sma l l En t erp r i ses h ave been iden t i fi ed , t he ou t s t a nd i ng ba l ance , inc l ud i ng in t e res t

t hereon , i f any , as a t ba l ance shee t da t e i s d i sc l osed on wh i ch Aud i t o r s have r e l i ed upon :

(Rs . / C ro res )

S r. Pa r tic u la r s 2 0 0 9 - 1 0 2 0 0 8 - 0 9

No .

1 . Am o u n t s p a y a b le t o “s u p p l ie r s ” u n d e r MS ME D Ac t , a s o n 3 1 / 0 3 / 1 0 :

- P r in cip a l 1 . 8 1 1 . 5 4

- In t e r es t - -

2 . Am o u n t s p a i d t o “s u p p l ie r s ” u n d e r MS ME D Ac t , b ey on d a p p o i n t edday du r i ng F .Y. 2009 –10 (i r r espec t ive o f whet h er i t per t a i n s t o cu r ren tyear or ear l ier years) :

- P r in c ip a l - -- In t e r es t - -

3 . Amoun t o f in t e res t due / payab le on de layed p r inc ipa l wh i ch ha s a l r eadybeen paid during the current year (without interest or with part interest) - -

4 . Am o u n t a c c r u e d a n d r e m a in in g u n p a i d a t t h e e n d o f Ac co u n t in g Ye a r - -

5 . Amoun t o f in t e res t wh i ch is due and pa yab le , wh i ch is car r ied fo rward

from last year - -

1 3 . R ela t e d Pa r t y d is c lo s u r e :

(Rs . / C ro res )

P a r t i c u la r s 2 0 0 9 – 1 0 2008 – 09

Sal es 2 1 4 . 4 4 2 4 7 . 3 6

P u r c h a s e s 1 8 . 0 9 2 3 . 9 2

Inves t men t s made i n equ i t y 4 6 5 . 5 0 3 7 8 . 0 0

I n v e s t m e n t s m a d e i n P r e f e r e n c e S h a r e s 3 . 5 0 3 0 . 0 0

Advan ce towar ds equi ty – g iven / ( t ran sferred t o Investm ent) 3 2 7 . 4 9 (15 .00 )

Sha re app lication mon ey pending allotmen t – given / (tran sferred to Investm ent) - (200 .00 )

Loans g iven / (t aken ) - (1 ,655 .00 )

Interest – (paid) - (7 .98 )

Dividend – received 0 . 7 1 1 . 1 8

Services – g iven 4 . 8 9 5 . 0 9

Lease Rentals – Received 0 . 7 9 0 . 7 2

Other s – provided / (avai led) ( 8 3 . 9 5 ) (82 .06 )

C l os i ng Bal ance 6 . 2 1 2 1 . 0 4

The names o f r e l a t ed par t i es a r e as fo l l ows :

J o in t Ve n t u r e C o m p a n i e s : H P CL- Mi tt a l E n e r g y Lt d . , H in d u s t a n C o la s Lt d . , S o u t h As i a L PG C o m p a n y P v t .Ltd . , Pr ize Pet roleum Co. Ltd . , Pet ronet India Ltd . , and Aavant ika Gas Ltd .

Key Mana gement Personnel: Shr i Arun Balakr ishnan , Chai rman a nd Mana ging Director , Shr i S. Roy Choudh ury,Director Market ing, Shr i V. Viziasaradhi , Di rector – Human Resources, Shr i B.

Mukherjee, Director – Finance, Shri K. Murali, Director – Refineries.




60



Details of remuneration to directors are given in note 20 B. 17 E of Notes to Accounts and dues from Directors are

given in Schedule 12 of the Balance Sheet .

The above disclosure does not include HPCL Biofuels Ltd. & Creda-HPCL Biofuel Ltd. (Subsidiary Companies) and

Mangal o re Refi nery and Pe t rochemi ca l s L t d . , Pet ronet MHB Lt d . an d Bha gyan agar Ga s Lt d . (J o in t Ven t u re

Companies) for which no disclosure i s requi red as they are s tate-cont rol led enterpr i ses .

A) The Corporation has entered into production sharing oil & gas exploration contracts in India and overseas in

conso r t i um wi t h o t her body co rpo ra t es . These conso r t i a a r e :

Na m e o f t h e Blo c k Pa r t ic ip a t in g In t e r e s t o f HPCL in %

3 1 / 0 3 / 2 0 1 0 3 1 / 0 3 / 2 0 09

I n I n d i a

Under NELP IV

KK- DWN-2002 / 2 2 0 2 0

KK- DWN-2002 / 3 2 0 2 0

CB- ONN-2002 / 3 1 5 1 5

Under NELP V

AA- O NN -2 0 0 3 / 0 3 1 5 1 5

Under NELP VI

C Y- D WN -2 0 0 4 / 1 1 0 1 0

C Y- D WN -2 0 0 4 / 2 1 0 1 0

C Y- D WN -2 0 0 4 / 3 1 0 1 0

C Y- D WN -2 0 0 4 / 4 1 0 1 0

C Y- P R - DW N- 2 0 0 4 / 1 1 0 1 0

C Y- P R - DW N- 2 0 0 4 / 2 1 0 1 0

KG - D WN -2 0 0 4 / 1 1 0 1 0

KG - D WN -2 0 0 4 / 2 1 0 1 0

KG - D WN -2 0 0 4 / 3 1 0 1 0

KG - D WN -2 0 0 4 / 5 1 0 1 0

KG - D WN -2 0 0 4 / 6 1 0 1 0

M B- O S N- 2 0 0 4 / 1 2 0 2 0

M B- O S N- 2 0 0 4 / 2 2 0 2 0

R J - O NN- 2 0 0 4 / 1 2 2 . 2 2 2 2 . 2 2

R J - O NN- 2 0 0 4 / 3 1 5 1 5

O u t s i d e I n d i a

BLOCK 56-OMAN 1 2 . 5 0 1 2 . 5 0

BLOCK WA-388-P, AUSTRALIA 1 4 1 4

SOUTH SENAI, EGYPT 2 5 2 5

SOUTH QUSEIR, EGYPT 2 5 2 5

B ) Two exp l o ra t i on b l ocks a t Egyp t were awarded du r i ng t he year 2008-09 wi t h GSPC (Opera t o r ) and Oi l

India Ltd . HPCL has 25% par t icipat ing in terest in both of these blocks. Product ion shar ing cont ract for

these blocks i s yet to be s igned.



61



14 . In compl ian ce of AS-27 ‘Fina ncial Repor t ing of In terest in J oint Ventu res’, the requi red informa t ion is as un der :

a ) J o in t ly C on t r olle d E n t it ie s

Country of P e r c e n t a g e o f Percentage of

Incorporat ion o w n e r s h i p o w n e r s h i p

i n t e res t as on interest as on

31st March, 2010 31st March, 2009

HPCL-Mit t a l E n er gy Lt d . In d ia 4 9 . 0 0 4 9 . 0 0

Hin d u s t a n Cola s Lt d . In d ia 5 0 . 0 0 5 0 . 0 0

Sou t h As ia LPG Com p a n y Pvt . Lt d . In d ia 5 0 . 0 0 5 0 . 0 0

Ma nga lor e Refin er y a nd Pe t r och em ica ls Lt d . In d ia 1 6 . 9 5 1 6 . 9 5

Pr ize Pet roleu m Com p a n y Lt d . In d ia 5 0 . 0 0 5 0 . 0 0

Pet r on et In d ia Lt d .* In d ia 1 6 . 0 0 1 6 . 0 0

Pet r on et MHB Lt d . In d ia 2 8 . 7 7 2 8 . 7 7

Bh a gya n a ga r Ga s Ltd . In d ia 2 5 . 0 0 2 5 . 0 0

Aa va n t ik a Ga s Lt d . In d ia 2 5 . 0 0 2 5 . 0 0

*Corporation’s sh are in Petronet India Ltd. is not rep orted hereu nd er as th e Mana gemen t ha d provided for full

diminution in the value of investment during the financial year 2006-07.

b) In respect of jointly controlled entities, the Corporation’s sh are of ass ets, liabilities, income, expenses , contingent

liabilities and cap ital comm itments a s furnish ed below on the ba sis of au dited / un au dited finan cial sta temen ts

received from these joint venture companies:

Rs. / Crores

2 0 0 9 - 1 0 2008-09

i. As s ets

• Lon g Ter m As se t s 5 , 7 6 4 . 6 6 2 , 4 6 1 . 1 0

• In ve s t m en t s 2 7 5 . 2 4 1 0 8 . 9 8

• Cu rr en t As s et s 1 , 8 2 9 . 1 5 1 , 5 0 7 . 4 7

i i. Lia b ilit ie s

• Loa n s (S ecu r ed & Un s ecu r ed ) 3 , 0 5 0 . 5 7 1 , 3 2 2 . 8 5

• C u r re n t Lia b ilit ie s & P ro vis io n s 1 , 9 1 8 . 9 5 8 1 4 . 5 1

• De fe rr ed Ta x Lia b ilit y 1 0 4 . 3 4 8 3 . 0 5

i i i . In com e 5 , 7 8 3 . 0 7 6 , 7 6 7 . 4 7

iv. E xp en s e s * 5 , 6 0 8 . 5 8 6 , 4 4 0 . 4 6

v . C on t in ge n t L ia b ilit ie s 7 4 . 1 9 1 0 3 . 4 5

v i. C a pit a l C om m it m en t s 4 , 1 6 8 . 0 4 4 , 7 3 5 . 2 5

* In clu din g Ta x

1 5 . O p er a t in g Le a s es :

Assets taken on lease pr imari ly consis t of proper t ies for use by the Corporat ion and leased land taken for the

purpose o f se t t i ng up r e t a i l ou t l e t s . These l ease a r r angemen t s a r e no rmal l y r enewed on exp i ry o f t he t e rm.

Amoun t o f l ease r en t a l expenses r ecogn i zed i n t he Pro f i t and Loss Accoun t i s g i ven under Schedu l e 17 –

“Ot her Opera t i ng Expenses” .

1 6 . C o n s id e r in g t h e G o ve r n m e n t p o li ci es a n d m o d a l it ie s o f c om p e n s a t i n g t h e o il m a r k e t i n g c om p a n i e s t o wa r d s

u n d e r - r e c o v e r i e s , f u t u r e c a s h f l o w s h a v e b e e n w o r k e d o u t b a s e d o n t h e d e s i r e d m a r g i n s f o r d e c i d i n g o n

impairment of related Cash Generating Units. Since there is no indication of impairment of assets as at Balance

Sheet da t e as per t he assessmen t car r i ed ou t , no i mpai rmen t has been cons i dered . In v i ew o f assumpt i ons

being technical , pecul iar to the indust ry and Government pol icy , the audi tors have rel ied on the same.



62



1 7 A . E s t im a t e d a m o u n t of c on t r a ct s r em a in in g t o b e e xe cu t e d o n Ca p it a l

Account not provided for 1 , 5 8 1 . 8 4 1 , 4 9 1 . 9 9

B . N o p r o vis i on h a s b e e n m a d e i n t h e a c c o u n t s i n r e s p e c t of t h e fo llo win g

d ispu t ed dem ands / c la i ms s i nce t hey are sub j ect t o appea l s / r ep resen t a t i ons

filed by the Corporation

i. In com e Ta x 0 . 2 0 0.20

ii. S ales Ta x/ Octr oi 2 , 4 0 2 . 4 5 2,661.56

iii. E xc is e/ Cu s t om s 2 7 0 . 6 1 356 .90

iv. La n d R en t a ls & Lic en c e F ee s 7 1 . 2 9 81 .91

v. Oth ers 6 0 . 5 6 146 .80

2 , 8 0 5 . 1 1 3,247.37

C. (I) Cont ingen t Liabi l it ies not pr ovided for in res pect of ap pea ls fi ledagai ns t t he Corpora t i on*

i . S a les Ta x/ Oct r oi 4 . 6 8 8 9 . 4 0

i i . E xc is e/ Cu s tom s 3 6 . 1 3 5 5 . 7 6

i i i . E m p l o ye e Be n e fi ts / D e m a n d s (t o t h e e xt e n t q u a n t i fi a b le ) 1 3 1 . 0 9 1 1 2 . 3 9

i v . C la i m s a g a in s t t h e C or p o r a t io n n o t a c k n ow le d ge d a s d e b t s 1 7 0 . 9 8 1 9 7 . 7 2

v. O t h e r s - 9 4 . 2 7

7 9 5 . 4 1 699 .53

*Th e C o m p a n y h a s n o t c on s i d e r e d t h o s e d is p u t e d d e m a n d s / c la i m s a s

Cont ingent Liabi l i t ies , the out f low of resources for which would be remote.

(II) U n c a l le d l ia b i li ty on p a r t ly p a id u p p r e fe r e n c e s h a r e s 1 6 . 5 0 2 0 . 0 0

1 6 . 5 0 2 0 . 0 0

D . Pa ym e n t to Au d it or s:

i . Au dit fees 0 . 1 8 0 . 1 8

i i. O th e r Se rvic es 0 . 1 3 0 . 1 1

i i i. R eim b u r s e m e n t o f ex p en s e s 0 . 0 3 0 . 0 2

0 . 3 4 0 . 3 1

E . Ma n a ge ria l Re m u n er a tion :

i . S a la r y a n d Allowa n ce s 1 . 0 3 0 . 4 7

i i . C on t r ib u t io n t o P r ovid e n t Fu n d a n d o t h er fu n d s 0 . 1 1 0 . 0 5

i ii . P en s io n a n d Gr a t u it y 0 . 0 2 0 . 0 2

i v. O th e r b en e fit s 0 . 4 0 0 . 5 4

1 . 5 6 1 . 0 8

F . C . I. F .v a lu e o f im p o r t s d u r in g t h e y e a r (e x clu d e s c a n a l is e d i m p o r t s ):

i . Ra w m at er ia ls 2 9 , 1 5 7 . 9 6 3 2 , 5 8 7 . 2 0

i i. S to re s , S p a re s an d Ch e m ic a ls 1 2 7 . 6 8 7 8 . 0 5i i i. C a p it a l Go od s , C om p o n e n ts a n d S p a r es 8 9 . 0 7 5 5 . 2 6

G . (i) E x pe n d it u r e in fo re ig n cu r r e n c y o n a cc ou n t o f: (o n ca s h b a s is )E n g i n e e r i n g , T e c h n i c a l a n d o t h e r s e r v i c e s , d e m u r r a g echarges , roya l t i es , i n t e res t and o t her mat t e r s 1 2 7 . 6 6 3 5 8 . 1 0

(i i) F o re ig n Cu r r e n c y p a y m e n t s fo r c r u d e 2 5 , 7 9 1 . 1 9 3 3 , 5 0 8 . 8 5

H . E a r n in g s in fo re ig n ex ch a n g e :

Export of goods calculated on FOB basis 6 , 3 8 2 . 2 6 6 , 0 2 1 . 2 6

Inc l udes Rs . 216 .13 cro res ( 2007-08 : Rs .597 .05 cro res )

received in Indian currency out of repat r iable funds of foreign customers

Rs. / Crores

2 0 0 9 - 1 0 2008-09



63



I . Va lu e o f R a w Ma t e ria ls , S p a re P a rt s a n d C om p o n en t s c on s u m e d

(i) Ra w Ma t er ia ls

- Imported (in %) 7 4 . 8 3 7 9 . 3 9

- Imported (in Value) 2 9 , 0 9 1 . 5 7 3 4 , 1 0 8 . 6 0

- Indigenous ( in %) 2 5 . 1 7 2 0 . 6 1

- Indigenous ( in Value) 9 , 7 8 5 . 6 8 8 , 8 5 4 . 0 0

(ii) S p a r e P a r ts & C om p o n e n ts :

- Imported (in %) 3 5 . 2 9 2 4 . 2 9

- Imported (in Value) 7 8 . 9 4 3 7 . 0 2

- Indigenous ( in %) 6 4 . 7 1 7 5 . 7 1

- Indigenous ( in Value) 1 4 4 . 7 7 1 1 5 . 4 0

J . Lic e n s e d ca p a c i t y a t ye a r e n d in M et r ic To n n e s p e r a n n u m a s c e r tifie d

by t he Managemen t on wh i ch t he Aud i t o r s have r e l i ed upon :

(a ) P et r ole u m fu e l a n d lu b e p r od u c t s 1 4 , 0 0 0 , 0 0 0 1 3 , 0 0 0 , 0 0 0

(b) Lu b r ic a t in g O ils N/ A N/ A

(c ) Te x tile Au x ilia r i es N/ A N/ A

(d ) H yd r a u l ic Br a k e Flu i d N/ A N/ A

(e) In s e ct ic id es N/ A N/ A

(f) Gr e a se s N/ A N/ A

K . In s t a l le d c a p a c it y a t y ea r e n d i n Me t r ic To n n e s p e r a n n u m a s c e r t ifie d

by the Mana gement on which th e Audi tors ha ve relied u pon:

(a ) P et r ole u m fu e l a n d l u b e pr od u c t s 1 4 , 0 0 0 , 0 0 0 13,000,000

(b) Lubr icat ing Oi ls ,Greases an d Text i le Auxi liar ies * 3 1 9 , 7 7 9 319 ,779

(c) Hydrau l ic Brake F lu i d and Insec t ic ides 4 , 0 6 2 4 ,062

* Product manufacturing facil i t ies are interchangeable

L. P ro du c t io n in Me tr ic To n n es :

(a ) P et r ole u m fu e l a n d l u b e pr od u c t s

i. Bu lk Pet rolu e m Pr od u ct s 1 4 , 2 6 1 , 6 0 4 14,473,977

ii. Lubr i ca t ing Oil Base S tocks (inc lud i ng

Transformer Oil Base Stocks) 3 4 6 , 8 5 8 312 ,246

iii. C a rb on B la c k Fe ed S t oc k 3 9 , 9 2 8 34 ,878

iv. Axle Oil 1 2 14

v. Ru b be r Pr oc es s in g oil 6 3 , 3 5 5 43 ,206

(b ) Lu b r ic a t in g Oils 3 5 8 , 2 2 4 266 ,104

(c) Text ile Aux ilia r ies 1 2 169

(d ) In s e ct ic id es 1 5 4 205

(e) Grea ses 2 , 3 2 9 2 ,340

Rs. / Crores

2 0 0 9 - 1 0 2008-09



64


Rs. / Crores

2 0 0 9 - 1 0 2008-09

N. Ra w Ma t er ia ls con s u m e d :

(a ) C ru d e O il P ro ce s s ed :

- Tonnes 1 5 , 6 7 8 , 4 3 1 15,829,171

- Value 3 7 , 5 2 6 . 6 2 4 1 , 5 9 3 . 7 9

(b) O th e r Pe tr ole u m P r od u c t s :

- Tonnes 3 4 5 , 3 7 9 251 ,686

- Value 1 1 2 3 . 3 8 1162 .33

(c) Add it ives , Inh i b it or s an d Chemi ca l s :

- Value 1 9 6 . 2 6 1 5 6 . 2 7

(d ) No n -P et r ole u m P ro du c t s :

- Value 3 4 . 8 0 5 0 . 2 1

O . E x p en d i tu r e in c u r r e d on Re s e a r c h a n d D eve lo p m e n t :

- Capi tal 1 7 . 7 2 1 2 . 8 5

- Revenue 0 . 8 5 1 . 5 1

P . In t e r e s t o n P r o je c t s p e c ific b o r r ow in g s c a p i ta l is e d 9 6 . 2 2 8 9 . 9 1

Q . E xc h a n ge D iffe r en c es :

i ) Ad ju s t e d in t h e c a r r yin g a m o u n t o f F ix ed As s e t s d u r in g t h e

a c c o u n t i n g p e r i od . ( 1 1 . 8 3 ) 6 0 9 . 4 8

i i) In r e s p e c t of F o rw a r d E xc h a n g e c on t r a c t s t o b e r e c og n is e d 1 2 9 . 2 0 1 6 2 . 6 9

in Prof i t or Loss for one or more subsequent account ing per iods


1 7 M . In fo rm a t io n fo r e a ch c la s s o f go od s p u r ch a s e d , s o ld a n d s t oc k s du r in g th e ye a r :

Val ue i n Rs . / Cro res

Op e n in g S t o c k P u r c h a s e s S a l e s * Clo s i n g S t o c k

2 0 0 9 - 1 0 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 0 8 - 0 9

a . Bu lk Pe t r oleu m MT 2 2 9 2 7 4 1 2 3 2 3 8 8 6 1 8 3 2 3 6 3 5 1 7 0 3 2 7 0 2 3 2 2 4 0 2 5 6 3 1 5 7 0 1 4 3 2 5 2 5 3 0 8 2 2 9 2 7 4 1

Pr od u c t s Va lu e 5 , 8 4 9 7 , 6 2 1 6 2 , 6 5 4 7 3 , 3 7 1 1 0 5 , 5 4 3 1 1 3 , 7 3 4 8 , 6 5 1 5 , 8 4 9

b . Lu b r ica t in g Oil MT 4 2 5 5 8 2 2 5 6 9 - - 1 3 3 0 8 7 7 6 6 3 6 2 0 1 3 5 4 2 5 5 8

Ba se S t ock s (In cl. Va lu e 1 3 4 8 4 - - 4 3 8 3 2 4 8 7 1 3 4

T ra ns fo rm e r O i l

Base s tock)

c . Ca r b on Bla ck MT 1 4 6 5 1 3 9 5 - - 3 9 7 9 1 3 4 1 1 3 1 0 6 1 1 4 6 5

Feed S t ock Va lu e 2 3 - - 1 0 7 1 0 0 3 2

d . Axle O il MT 2 0 1 1 - - 9 6 2 3 2 0

Va lu e 0 0 - - 0 0 0 0

e . Lu b r ica t in g Oils MT 2 7 2 4 6 3 1 2 6 6 - - 3 5 5 6 0 7 2 9 8 1 1 3 2 9 8 2 5 2 7 2 4 6

Va l ue 2 0 7 1 7 7 - - 2 4 5 1 2 2 0 3 2 0 7 2 0 7

f. Text ile Au xilla r ies MT 5 1 4 1 - - 3 2 1 6 0 3 1 5 1Va l ue 0 0 - - 0 1 0 0

g. In s e c t ic id e s MT 3 2 8 3 3 6 8 6 8 2 5 8 2 2 1 0 3 2 8

Va l ue 3 2 1 0 3 3 0 3

h . G r ea s e s MT 2 4 1 7 2 0 8 0 2 6 7 4 3 8 8 2 4 9 1 1 5 8 8 5 2 3 5 3 2 4 1 7

Va lu e 1 9 1 6 2 3 2 3 5 6 6 3 1 8 1 9

i . Au t om a t ive MT 0 0 - 0 0 0 0

Ac ce s s or ies Va lu e 0 0 - 0 0 0 0

Tot a l MT 2 3 6 6 8 2 4 2 3 8 1 5 8 4 1 8 3 2 6 3 9 5 1 7 0 3 6 5 9 2 3 2 7 7 3 9 5 1 3 1 9 8 5 2 7 7 2 5 7 8 7 3 6 2 3 6 6 8 2 4

Va l ue 6 , 2 1 5 . 0 9 7 , 9 0 5 . 0 2 6 2 , 6 7 7 . 8 2 7 3 , 3 9 4 . 6 1 1 0 8 , 5 9 8 . 6 8 1 1 6 , 4 2 7 . 8 3 8 , 9 6 6 . 9 2 6 , 2 1 5 . 0 9

* Sa l e s i nc l ude s a l e s t o O t he r O i l Com pa n i e s

No a d j u s t m e n t f o r Tr a n s i t / O p e r at i o n / T e m p e r a t u r e Va r i a t i on s / C o n s u m p t i o n f o r O wn U s e h a v e b e e n m a d e i n t h e a b o v e i n fo r m a t i o n

Pre v i ous ye a r ’ s f i gu re s ha ve be e n r e g roupe d a nd r e a r r a nge d whe re ve r ne c e s s a ry fo r c om pa r i s on a nd a d j us t m e n t .



65


R. Info rmat ion regard ing P r imary Segment Repor t ing as pe r AS-17 fo r the year ended March 31 , 2010 is a s u nder :

Rs . / C rores

2 0 0 9 - 1 0 2 0 0 8 - 0 9

Down st ream Explora t ion Tot al Down stream Explora tion Total

Pet role um & Pr od uc tion Pe tr ole um & Pr od u ct ion

Revenue

Extern a l Reven u e 1 08 ,4 2 7 .66 - 1 0 8 ,42 7 .6 6 12 5 ,0 4 4 .8 5 - 1 25 ,0 4 4 .85

In ter -s egm en t Reven u e - - - - - -

To t a l Re ve n u e 1 0 8 ,4 2 7 .6 6 - 1 0 8 ,4 2 7 .6 6 1 2 5 ,0 4 4 .8 5 - 1 2 5 ,0 4 4 .8 5

R e s u l t

Segm en t Res u lt s 3 ,1 9 0 .5 9 (2 5 5 .6 2 ) 2 ,9 3 4 .9 7 2 ,1 8 0 .1 9 (7 1 .7 0 ) 2 ,1 0 8 .4 9

Less: Una llocated Expens es

Net of u n a lloca ted In com e - - - - - -

Op e r a t in g Pr o fit 3 ,190 .59 (2 5 5 .6 2 ) 2 ,93 4 .97 2 ,180 .19 (7 1 .7 0 ) 2 ,108 .49

Less:

Borrowin g Cos t 9 0 3 .7 5 2 ,0 8 2 .84Provision for dimunition

in in ves tm en ts 7 0 3 .7 3 (7 5 .28 )

Los s on Sa le of In ves tm en ts 5 6 .7 5 1 .27

Pr ior Yea r Exp en d itu re - -

Add:

Interest/ Dividend (Including Sha re

of p rofit from PII) 8 5 4 .2 9 5 74 .73

Profit on Sa le of In ves tm en ts - 37 .83

Pr o fit be fo r e Ta x 2 ,1 2 5 .0 3 7 1 2 .2 3

Less: Taxes

(in clu d in g Defer red ta x / FBT) 8 2 3 .6 6 1 37 .25

Pr ofit a ft e r Ta x 1 ,3 0 1 .3 7 5 7 4 .9 8

O t h e r I n f o r m a t i o n

Segm en t As s ets 38 ,7 3 5 .0 4 3 3 .2 7 3 8 ,7 68 .3 1 31 ,8 4 9 .39 4 1 .55 31 ,8 9 0 .94

Corpora te As s ets 1 2 ,4 55 .1 1 14 ,9 6 5 .69To t a l As s e t s 5 1 ,2 2 3 .4 2 4 6 ,8 5 6 .6 3

Segm en t Lia b ilit ies 15 ,0 3 3 .3 9 41 4 .8 0 1 5 ,4 48 .1 9 10 ,9 4 4 .25 1 6 7 .46 11 ,1 1 1 .71

Corpora te Lia b ilit ies 2 4 ,2 17 .2 5 25 ,0 1 4 .29

To t a l Lia bili t ie s 3 9 ,6 6 5 .4 4 3 6 ,1 2 6 .0 1

Ca pita l Expen d itu re 3 ,7 2 0 .97 (8 .2 8 ) 3 ,7 1 2 .69 2 ,43 4 .0 9 1 6 .5 3 2 ,4 5 0 .6 2

Depr ecia t ion 1 ,1 64 .4 0 - 1 ,1 6 4 .4 0 9 8 1 .29 - 9 8 1 .2 9

Non cash expenses excluding

d ep recia t ion (5 33 .3 0 ) 4 8 3 .02

N o t e s :

1. The Compan y i s engaged in the following bus iness segments :

a) Downst ream i .e . Refining and Market ing of Pet roleum Products

b ) Explo r a tion and P r oduc t ion o f H ydr oca r bons

Segments have been identif ied taking into account the nature of act ivi t ies and the nature of r isks and returns.

2 . Segm en t R evenue com pr is e s t he fo llowing :

a ) Tur nove r (Ne t o f Excis e D u t ie s )

b ) Subs idy fr om G ove r nm en t of Ind i a

c) Other income (excluding in teres t income, d ividend income and inves tment income)

3 . The r e a r e no geograph i ca l s egm en t s .




66


1 8. D e fi n e d Be n e f i t Pl a n s - As p e r a c t u a r i a l v a l u a t i on(Rs . / Cro res )

Pa r t icu la r s Lea ve Gr a tu ity Pen s ion Pos t Lon g Ex - Gra t ia Dea th Res e t t le-En ca sh m en t Ret ir em en t Ser vice Ben efit s m en t

Medica l Awa r d s Allowa n ceBenef i t

Fu n d ed Fu n d ed Non - Non - Non - Non - Non - Non -Fu n d ed Fu n d ed Fu n d ed Fu n d ed Fu n d ed Fu n d ed

Refer foot -n otes : 1 2 3 4 5 6 7 8

1 C h an g e i n De fi n ed Be n e fi tObligat ions (DBO) during they e a r e n d e d M a r c h 3 1 , 2 0 1 0

Defin ed Ben efit Ob liga t ion a t 2 1 7 .3 7 2 4 0 .3 1 47 .85 64 .75 27 .37 28 .76 25 .35 1 .60the beginning of the year 1 4 6 .5 3 1 4 3 .8 6 3 9 .5 6 5 8 .4 3 3 1 .0 8 3 3 .2 0 2 2 .9 6 -In t er es t Cos t 1 7 .9 2 19 .8 9 4 .00 6 .00 2 .00 2 .0 0 2 .0 0 -

1 1.7 2 1 1 .5 1 2 .9 4 5 .0 0 3 .0 0 2 .0 0 2.0 0 -Cu rren t Service Cos t 6 .57 11 .66 0 .07 7 .40 4 .9 8 - - 0 .15

4 9.5 5 2 .2 6 0.0 6 2.4 5 4.6 3 - - -Pa s t Service Cos t - - - - - - - -(Ves ted Ben efit s ) - - - - - - - -Ben efit Pa id - (6 .64 ) (5 .94) (4 .55) (3 .88) (4 .10) (4 .4 7) (0 .1 1)

- (6 .4 4 ) (5 .6 7 ) (2 .0 1 ) (2 .9 8 ) (7 .3 1 ) (3 .9 6 ) -Acturial (gain)/ loss onObliga t ion 19 .71 97 .49 (1 .90) 42 .39 17 .38 4 .01 3 .5 7 0 .20

9 .5 7 8 9 .12 1 0.9 5 0.8 9 (8 .3 6 ) 0 .8 7 4 .3 5 -De fin e d Be n e fi t Ob liga t ion 261 .57 362 .71 44.08 115 .99 47.85 30.67 26.45 1.84a t t h e e n d o f t h e y e a r 2 1 7 .3 7 2 4 0 .3 1 4 7 .8 5 6 4 .7 5 2 7 .3 7 2 8 .7 6 2 5 . 3 5 -

2 Ch a n ge in F air Va lu e of A s s e t s d u r i n g t h e y e a re n d e d M a r c h 3 1 , 2 0 1 0Fair Value of Plan Asset at thebegin n in g of th e yea r 1 6 3 .4 5 1 7 4 .0 6 N/ A N/ A N/ A N/ A N/ A N/ A

1 0 9 .7 8 1 6 5 .0 4 N / A N / A N / A N / A N / A N / AExpected retu rn on Pla n As sets 20 .35 22 .13 N/ A N/ A N/ A N/ A N/ A N/ A

1 4 .0 7 1 5 .46 N / A N / A N / A N / A N / A N / AActu r ia l ga in / (los s ) - - N/ A N/ A N/ A N/ A N/ A N/ A

- - N / A N / A N / A N / A N / A N / ACon t r ib u t ion by em p loyer 53 .92 66 .25 5 .94 4 .55 3 .8 8 4 .10 4 .4 7 0 .11

3 9.6 0 - 5.6 7 2.0 1 2.9 8 7 .3 1 3 .9 6 -Ben efit Pa id - (6 .64 ) (5 .94) (4 .55) (3 .88) (4 .10) (4 .4 7) (0 .1 1)

- (6 .4 4 ) (5 .6 7 ) (2 .0 1 ) (2 .9 8 ) (7 .3 1 ) (3 .9 6 ) -F a ir Va lu e of Pla n Asse t a t t h e 237 .72 255 .80 N/ A N/ A N/ A N/ A N/ A N/ Ae n d o f t h e y e a r 1 6 3 .4 5 1 7 4 .0 6 N / A N / A N / A N / A N / A N / A

3 Ne t a s se t / (l ia b il it y ) r e c og n iz e di n b a l a n c e s h e e t a s a tM a r c h 3 1 , 2 0 1 0Defin ed Ben efit Ob liga t ion a t t h e 2 6 1 .5 7 3 6 2 .7 1 44 .08 1 1 5 .9 9 47 .85 30 .67 26 .45 1 .84

end o f t he year 2 1 7 .3 7 2 4 0 .3 1 4 7 .8 5 6 4 .7 5 2 7 .3 7 2 8 .7 6 2 5 .3 5 -Fa ir Va lu e of Pla n As set a t th e 2 3 7 .7 2 2 5 5 .8 0 - - - - - -end o f t he year 1 6 3 .4 5 1 7 4 .0 6 - - - - - -Am ou n t r e c ogn ise d in t h e (2 3 .8 5 ) (1 0 6 .9 1 ) (4 4 .0 8 ) (1 1 5 .9 9 ) (4 7 .8 5 ) (3 0 .6 7 ) (2 6 .4 5 ) (1 .8 4 )B a la n c e S h e e t - S c h e d u le 1 3 B (5 3 .9 2 ) (6 6 .2 4 ) (4 7 .8 5 ) (6 4 .7 5 ) (2 7 .3 7 ) (2 8 .7 6 ) (2 5 . 3 5 ) -

4 C om p o n en t s o f e m p lo ye r e x pe n s esCu rren t Service Cos t 6 .57 11 .66 0 .07 7 .40 4 .9 8 - - 0 .15

4 9.5 5 2 .2 6 0.0 6 2.4 5 4.6 3 - - -In t er es t Cos t 1 7 .9 2 19 .8 9 4 .00 6 .00 2 .00 2 .0 0 2 .0 0 -

1 1.7 2 1 1 .5 1 2 .9 4 5 .0 0 3 .0 0 2 .0 0 2.0 0 -Pa s t Service Cos t (Ves ted Ben efits ) - - - - - - - -

- - - - - - - -Expected Retu rn on Pla n Ass et (20 .35) (22 .13) - - - - - -

(1 4 .0 7 ) (1 5 .4 6 ) - - - - - -

Actu r ia l (ga in )/ los s 19 .71 97 .49 (1 .90) 42 .39 17 .38 4 .01 3 .5 7 0 .209 .5 7 8 9 .12 1 0.9 5 0.8 9 (8 .3 6 ) 0 .8 7 4 .3 5 -

Tota l expenses recogn ized inPr o fit a n d Loss Ac c ou n t in 23.85 106 .91 2.17 55.79 24.36 6.01 5.57 0.35S c h e d u l e 1 6 5 6 .7 7 8 7 .4 2 1 3 .9 6 8 .3 4 (0 . 7 3 ) 2 .8 7 6 .3 5 -

5 Ac t ua ri al As su m p ti on sDiscou n t Ra te 8 . 2 5 % 8 . 2 5 % 8 . 2 5 % 8 . 2 5 % 8 . 2 5 % 8 . 2 5 % 8 . 2 5 % 8 . 2 5 %Expected retu rn on p la n a s sets Not e 9 Note 9 - - - - - -S a la r y es ca la t ion 4 . 0 0 % 4 . 0 0 % - - - - - -In fla t ion - - - 5 . 0 0 % - - - -

Mor ta lit y r a t e LIC (1994-96) Morta lit y Ta b le

6 T he m a jo r ca t eg or ie s of pla na s s e t s a s a p e r c e n t a g e t o t o t a lp l a n a s s e t sCen tra l & Sta t e Govt . Secu r it ies 5 6 . 0 0 % 5 6 . 0 0 % N/ A N/ A N/ A N/ A N/ A N/ ABon d s / Deb en tu res 3 6 . 0 0 % 3 6 . 0 0 % N/ A N/ A N/ A N/ A N/ A N/ AOt h er s 8 . 0 0 % 8 . 0 0 % N/ A N/ A N/ A N/ A N/ A N/ A

7 E ffe c t of on e p er c en t a ge p oi ntc h a n g e i n a s s u m e d m e d i c a lin fla tion ra te fo r Pos t Re t ir em e nt On e p er ce nt age po in t in cr ea se On e p er ce nt age p oin t d ec re as eMe d ic a l Be n e fi t in m e d ic a l in fla t ion r a t e in m e d ic a l in fla t ion ra t e

Revis ed DBO a s a t Ma rch 31 , 2010 1 2 6 .9 5 1 0 9 .3 2Revised service cos t for 2009-10 7 .2 1 7 .82Revised in teres t cos t for 2009-10 6 .75 5 .25




67


Foo t No tes :

1 Leave Encashment : A ll employees are en t i t led to ava il earned l eave and s i ck leave dur ing the serv ice per iod and the sa me can be enca shed onsuperann uat ion , res ignat ion , t e rminat ion o r by n ominee on dea th . Fu r ther , t he accumula t ed earn ed l eave can a l so be encashed dur ing the serv ice

period.The contribut ion for increase in actuarial l iabi l i ty as of March 31, 2010 over March 31, 2009 towards leave encashment is funded to LIC. As

per the pract ice fol lowed, payment made to employees during the year to the extent of Rs. 43.12 crores is not claimed from LIC, hence, benefi t

paid du ring the year is sh own as “Nil” in the a bove table. Total expenses recognized in Profi t and Loss Accoun t on a ccount of this ben efit is Rs. 66.98

crores (i .e. provision of Rs. 23.86 crores towards increase in l iabi l i ty and payments made by Corporat ion for Rs. 43.12 crores).

2 Gratu i ty : Al l employees are en t i t l ed to rece ive gra tu i ty as per t he p rov is ions o f Payment o f Gra tu i ty Act , 1972 . Based on gu ide lines i s sued by

Depar tmen t o f Pub l i c En terp r i ses the enhancement in Gra tu i ty ce i l i ng l imi t f rom Rs . 3 .50 l akhs to Rs . 10 l akhs has been cons idered fo r a l l

e m p l o y e e s .

3 Pens ion : The employees covered by the Pens ion Plan o f t he Corpora t ion a re en t i t led to rece ive month ly pens ion fo r l ife.

4 Pos t Reti remen t Med ica l Benefi t : The serv ing and superann uated em ployees are covered under med ica l in su ra nce po l icy t aken by Corpora t ion . I t

provides reimbursement of medical expenses for self and dependents as per the terms of the pol icy.

5 Long Service Awards : The Corporat ion ha s pol icy of giving service awards to i ts employees in the form of momento on comp let ion of specified length

of service and su perannua t ion .

6 E x - gr a t i a : Th e e x - e m p lo ye e s o f Co r p o r a t io n c o ve r e d u n d e r t h e S c h e m e a r e e n t i t l ed t o g e t e x -g r a t ia b a s e d o n t h e g r a d e a t t h e t i m e o f t h e ir

ret i rement . The benefi t wil l be paid to el igible employees t i l l their survival , and after that , t i l l the survival of their spouse.

7 Death Benefi ts : The fam ilies of deceased emp loyees are paid at a specified percentage of last drawn sa lary t il l the not ional date of ret i rement age

under the provisions of Superannuat ion Benefi t Fund Scheme.

8 Reset t lemen t Allowance : At t he t ime o f re t iremen t , t he employees are a l lowed to permanen t ly se t t le down a t a p l ace o ther t han th e loca t ion o f

the last post ing.

9 The fa i r va lue o f t he as se t s o f Providen t Fund Trus t and the re tu rns on these as se t s as on the Balance Sheet da t e is g rea t er t han the ob liga t ion ,

including interest , and no addit ional provision is required to be recognized in the Profi t and Loss Account over and above the fixed contribut ion

recogn ized .

10 The expected re tu rn on p l an as se t s i s based on m arket expecta t ion , a t t h e beg inn ing o f t he per iod , fo r re tu rns over t he en t i re l ife of t he re l a t ed

obligation.

11 The est ima tes of future salary increases, considered in actuar ial valuat ion, take account of inflat ion, seniority, promotion and other relevant factors ,

such as supp ly and demand in the employment market .

12 Figures in it a l ics rep resen t l as t year figu res




68


Rs. / Crores

2 0 0 9 - 1 0 2008-09A. Ca s h F lo w F r om O p e ra t in g Ac t iv it i es

Net Profi t / (Loss )before Tax & Extraor dina ry item s 2 , 1 2 5 . 0 3 7 1 2 . 2 3

Adj us t men t s fo r :

Deprec i a t i on p r i o r per i od 3 . 5 2 0 . 1 5

Deprec i a t i on / Amor t i sa t i on 1 , 1 6 4 . 4 0 9 8 1 . 2 9

Raw Mater ial & Packages ( 4 . 7 0 ) (0 .16 )

Loss / (Prof it ) on Sa le/ Wri te off of Fixed Ass ets / CWIP ( 1 . 6 6 ) 7 . 4 6

Amort i sat ion of capi tal grant ( 0 . 1 9 ) (0 .19 )

Spares wr i t t en o f f 1 . 8 2 1 . 8 8

Prov i s i on fo r d i mi nu t i on i n va l ue o f i nves t men t s 7 0 3 . 7 3 (75 .28 )

Borrowing Cost 9 0 3 . 7 5 2 , 0 8 2 . 8 4

Exchange r a t e d i f f e rence on l oans 1 0 2 . 2 4 (165 .02 )Oi l Bond receivable - (2 ,037 .89 )

Provision for Doubtful Debts & Receivable 2 0 . 4 7 7 . 7 1

I n t e r e s t I n c o m e ( 6 9 9 . 3 7 ) (412 .70 )

Share of Profit from PII ( 0 . 6 2 ) (0 .82 )

Di v i dend Recei ved ( 4 6 . 2 6 ) (36 .84 )

(Profi t )/ Loss on s ale of sh or t term investm ent 5 6 . 7 5 (36 .57 )

Operat ing Prof i t before Working Capi tal Changes 4 , 3 2 8 . 9 1 1 , 0 2 8 . 0 9

Increa se / ( Decrease) in Work i ng Cap i t a l :

Trade Rece i vab l es ( 2 1 7 . 2 9 ) (537 .03 )

Ot her Rece i vab l es ( 6 3 3 . 3 6 ) 2 , 8 8 1 . 8 4

I n v e n t o r i e s ( 3 , 7 8 8 . 0 0 ) 3 , 2 2 5 . 1 6

Trade and o t her Payab l es 3 , 9 8 5 . 7 0 (723 .83 )

( 6 5 2 . 9 5 ) 4 , 8 4 6 . 1 4

Cash genera t ed f rom opera t i ons 3 , 6 7 5 . 9 6 5 , 8 7 4 . 2 3

Direct Taxes / FBT refu nd / (paid) - Net ( 3 9 4 . 5 6 ) (33 .47 )

Cash Flow before extraordinary i tems 3 , 2 8 1 . 4 0 5,840.76

Extra ord in a ry item s - -

Ne t Ca sh fr om o p er at in g a c t iv i t ie s (A) 3 ,2 8 1 .4 0 5 , 8 4 0 . 7 6

B. Ca s h F lo w F r om I n ve s t in g Ac t iv it i es

Purchase o f F i xed Asse t s ( i nc l udes Cap i t a l Work

i n Prog ress / exc lu d i ng in t e r es t cap i t a l i sed ) ( 3 , 6 1 7 . 9 8 ) (1 ,927 .45 )

Sale of Fixed Assets 7 . 9 8 5 1 . 2 2

Purchase o f Inves t men t ( Inc l ud i ng share app l i ca t i on money

pend i ng a l l ot men t / Advance t owards Equ i t y ) ( 3 , 4 6 1 . 4 0 ) ( 1 6 , 3 0 6 . 2 2 )

I n v e s t m e n t i n S u b s i d i a r y ( 1 0 0 . 0 0 ) (7 .83 )

Sale Proceeds of Oi l bonds 5 , 2 1 3 . 5 2 9 , 2 7 5 . 4 9

In t eres t r ece i ved 7 5 6 . 7 8 2 8 1 . 0 1

Di v i dend Recei ved 4 6 . 2 6 3 6 . 8 4

Share of profi t from PII 0 . 6 2 0 . 8 2

Ne t Ca s h from in ve s t in g a c t iv it ie s (B) (1 ,1 54 .2 2) (8 ,596.12)

Cash flow Statement for the year ended 31st March, 2010



69


Cash flow Statement for the year ended 31st March, 2010

C . C as h F lo w F r om F in a n c in g Ac t iv it i es

Long t e rm loans r a i sed / (r epa i d ) 5 3 8 . 0 0 (65 .00 )

Shor t t e rm l oans r a i sed / (r epa i d ) ( 1 , 5 1 6 . 0 5 ) 5 , 6 6 7 . 5 2

In t eres t Pa i d on Loans ( 1 , 1 2 2 . 3 9 ) (2 ,208 .50 )

Di v i dend pa i d ( i nc l ud i ng d i v i dend d i s t r i bu t i on t ax ) ( 2 0 9 . 2 7 ) (119 .37 )

Ne t Ca s h f r om f i n a n c in g a c t iv it i es (C ) (2 ,3 0 9 .7 1 ) 3 , 2 7 4 . 6 5

NE T INC RE AS E / (DE CR E AS E ) I N C AS H AND CAS H E QUI VALE NT S (A + B + C ) (1 8 2 . 5 2 ) 5 1 9 . 2 9

CASH AND CASH EQUIVALENTS AS ON 1 ST APRIL (OPENING) :

C a s h / C h e qu e s o n H a n d 5 . 0 3 5 . 6 7

B a l a n c e s w i t h S c h e d u l e d B a n k s


- Ot her s 3 . 8 9 3 . 5 5

B a l a n c e s w i t h o t h e r B a n k s 0 . 1 1 0 . 1 0

6 0 8 . 6 5 2 9 4 . 0 1

Overd raf t s f rom Banks ( 3 0 8 . 8 3 ) (513 .48 )

2 9 9 . 8 2 (219 .47 )

CASH AND CASH EQUIVALENTS AS ON 3 1 ST MARCH (CLOSING):

C a s h / C h e qu e s o n H a n d 5 . 0 4 5 . 0 3



- Ot her s 4 . 3 0 3 . 8 9


2 4 3 . 1 8 6 0 8 . 3 1


1 1 7 . 3 0 2 9 9 . 8 2

NE T INCRE ASE / (DECR EASE ) IN CASH AND CASH EQUIVALE NTS (1 8 2 .5 2 ) 5 1 9 . 2 9

Not e : P revi ous year ’s f igu res ha ve been r eg roup ed / r ec l ass i fi ed wherever necessa ry .

Rs. / Crores

2 0 0 9 - 1 0 2008-09


ARUN BALAKRISHNAN


B. MUKHERJE E




Place : New Delhi

Date : 26th May 10

For V SANKAR AIYAR & CO.


F i r m N o . 1 0 9 2 0 8 w

G. SANKAR

P a r t n e r




Fi rm No . 000971c

OM PRAKASH AGARWAL

P a r t n e r




70


I. R EGIS TR AT ION DE TAILS

REGISTRATION NO. : 0 8 8 5 8 STATE CODE : 1 1

BALANCE S HE E T DATE : 3 1 0 3 2 0 1 0

II. C AP I TAL R AI S ED DUR I NG T HE YE AR (Am o u n t i n R s . T h o u s a n d s )

PUBLIC IS S UE RIGHTS IS S UE

N I L N I L

BONUS IS S UE P RIVATE P LACE ME NT

N I L N I L

II I. P O S I T IO N O F M O BI LI S AT I O N AN D D E P LO YM E NT O F F U ND S (Am o u n t i n R s . T h o u s a n d s )

TOTAL LIABILITIES TOTAL ASSETS

7 8 6 2 8 5 9 5 8 7 8 6 2 8 5 9 5 8

SOURCES OF FUNDS

PAID-UP CAPITAL RESERVES AND SURPLUS

3 3 9 0 1 4 7 1 1 2 1 8 9 5 3 1

SECURED LOANS UNSECURED LOANS

1 3 7 5 8 7 7 9 1 9 9 2 6 4 9 1 1

DEFERRED TAX LIABILITY

1 8 0 7 9 7 1 3

APPLICATION OF FUNDS

NE T FIXE D AS S E TS INVE S TME NTS

1 9 1 9 4 2 6 2 3 0 1 1 3 8 7 2 1 9 9

NE T CURRE NT AS S E TS MIS C. E XPE NDITURE

4 0 8 6 8 2 5 9 N I L

ACCUMULATED LOSSES

N I L

IV. P E R F OR MANC E O F C OM PANY (Am o u n t i n R s . T h o u s a n d s )

TURNOVER TOTAL EXPENDITURE

1 0 8 5 9 8 6 7 5 2 1 0 7 1 6 2 4 2 3 0

PROFIT/ LOSS BEFORE TAX PROFIT/ LOSS AFTER TAX

+ 2 1 2 5 0 3 3 0 + 1 3 0 1 3 7 4 1

EARNING PER SHARE IN RS. DIVIDEND RATE%

3 8 . 4 3 1 2 0

V . G E NE R I C NAM E S OF T H R E E P R IN CI P AL PR O D UC T S OF C O MP AN Y (As p e r m o n e t a r y t e r m s )

Item Cod e No. (ITC Cod e) 2 7 1 0

Pr od u c t Des c r ip t ion : B U L K P E T R O L E U M

P R O D U C T S

Item Cod e No. (ITC Cod e) 2 7 1 0 0 0 4 1 / 6 1

Pr od u c t Des c r ip t ion : L U B R I C A N T S

Item Cod e No. (ITC Cod e) 2 9 0 1 2 2 0 0

Pr od u c t Des c r ip t ion : P R O P Y L E N E

Balance Sheet Abstract and Company’s General Business Profile

ARUN BALAKRISHNAN


Place : New Delhi

Date : 26th May, 2010

B. MUKHERJ EE

D ir e c t o r - F in a n c e





71


C & AG’s Comments

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619(4) OF

THE COMP ANIES ACT, 19 5 6 ON THE ACCOUNTS OF HINDUSTAN PE TROLEUM CORPOR ATION LIMITED

FOR THE YEAR ENDED ON 31 MARCH 2010.

The prepa ration of finan cial statem ents of Hindu sta n Petroleum Corporation Limited for the year ended

31 March 2010 in accordance with the financial report ing framework prescribed under the Companies Act,

1956 is the responsibil i ty of the management of the company. The statutory auditors appointed by the

Comptroller a nd Aud itor Gen eral of Ind ia u nder section 619(2) of the Compan ies Act, 1956 are respons ible

for expressing opinion on these financial statements under section 227 of the Companies Act, 1956 based

on independent audit in accordance with the audit ing assurance standards prescribed by their professional

body The Inst i tute of Chartered Accounts of India. This is stated to have been done by them vide their

Aud it Report dated 26 May, 2010.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under

sec t i on 61 9 (3 )(b ) o f t he Comp an ies Ac t , 1956 o f t he f ina nc i a l s t a t em en t s o f H ind us t an Pe t ro leum

Corporation Limited for the year ended 31 March 2 010. On th e basis of my au dit nothing significan t ha s

come to my kn owledge which would give rise to any comm ent u pon or s up plement to th e Statu tory Aud itors’

Report , u nd er 619 (4) of the Compa nies Act, 1956.

For and on the behalf of the

Comptroller and Auditor General of India

S a r it J a fa

P r i n c i p a l D i r e c t o r o f C o m m e r c i a l A u d i t

& - Member Audi t Board II , Mumbai

P la c e : Mu m ba i

Da t e : 22 J u ne 20 10



72


Human Resource Accounting

HPCL considers h um an dimens ion as the key to Organ ization’s s uccess . Several ini t iat ives for developmen t

o f H uman Resou rces t o mee t new cha l l enges i n t he compe t i t i ve bus iness env i ronmen t have ga inedmomentum. HPCL recognizes the value of i t s Human Resource Assets who are commit ted to achieve

excellence in all spheres. The Human Resource Profile given below in table shows that HPCL has a mix of

energetic youth an d experienced sen iors who ha rm onize the efforts to a chieve th e Corporation’s goals.

Age

2 1 -3 0 3 1 -4 0 4 1 -5 0 Above 5 0 To t a l

No. of Em ployees 1695 1517 5024 3055 11291

Ma n a gem en t 1335 786 1711 947 4779

Non Ma n a gem en t 360 731 3313 2108 6512

Avera ge Age 44

Accounting for Human Resource Assets

The Lev & Schwartz model i s be ing used by our Company to compute the value of Human Resource

Assets. The evaluation as on 31 s t March 2010 i s based on the present va lue of fu ture earn ings of the

employees on the following assumptions.

1 . Emp loyees’ compens at ion represented by d i rect & indi rect benefi t s earn ed by them on cost to

compa ny bas is .

2 . E a r n i n gs u p t o t h e a ge o f s u p e r a n n u a t i on a r e c on s i d er e d on i n c r em e n t a l b a s is t a k i n g t h e

Corporation’s policies into consideration.

3 . Such fu tu re ea rn ings a re d iscoun ted @ 8 .25%.

Rs . / Crores

2 0 0 9 - 1 0 2008-09

VALUE OF HUMAN RESOURCE ASSETSManagement Emp loyees 9 , 3 4 1 8,523

Non Management Employees 6 , 3 1 3 4,624

1 5 , 6 5 4 13,147

Hum an Resource Assets v is- -vis Tota l Assets

Value of Human Resource Assets 1 5 , 6 5 4 13,147

Net Fixed Assets 1 5 , 3 0 7 11,655

I n v e s t m e n t s 1 1 , 3 8 7 14,196

Net Current Assets 4 , 5 3 1 4,237

4 6 , 8 7 9 43,235

Employee Cost 1 , 6 1 7 1,137

Net Profit Before Tax (PBT) 2 , 1 2 5 712

Rat io s ( i n %)

Employee Cost to Human Resource Assets 1 0 . 3 3 8.65

Human Resource Assets to Total Resource 3 3 . 3 9 30.41

PBT to Human Resource Assets 1 3 . 5 8 5.42



73


Auditors’ Report

AUDITORS’ REPORT TO THE BOARD OF DIRECTORS OF HINDUSTAN PETROLEUM CORPORATION LIMITED

ON THE CONSOLIDATED FINANCIAL STATEMENTS OF HINDUSTAN PETROLEUM CORPORATION LIMITED,ITS SUBSIDIARY COMPANIES AND ITS INTERE STS IN J OINT VENTURE COMPANIES

1 . We h a ve a u dit ed t he a tt ac he d Con s olid a te d Ba la n ce Sh ee t of H in d u s t a n P e t r o le u m C or p o r a t i o n L im i t e d (“the

Company”), i t s Subsidiary Compan ies a nd i t s in terests in J oint Venture Compan ies ( the Compa ny, it s Su bsidiary

Compan ies an d i t s in terests in J oint Venture Compa nies const i tu te “the Group”) as at March 31 , 2010, the

Consolidated Profit and Loss Account and Consolidated Cash Flow Statement for the year ended on that date

an nexed ther eto. Thes e finan cial sta temen ts ar e the respon sibili ty of Hi ndus t a n Pe t ro l eum Corpora t i on Li mi t ed ’ s

ma nagemen t and h ave been prepared by the man agement on the basis of separa te financial s tatem ent an d other

financial information regarding componen ts. Ou r respon sibil ity is to express an opinion on th ese fina ncial statem ents

based on ou r au d it .

2 . We c on d u c t ed o u r a u d it in a c c or d a n c e w it h a u d it in g s ta n d a r d s ge n e ra lly a cc ep t ed in I n d ia . Th e s e St a n d a r d s

requi re that we plan a nd perform th e aud i t to obtain reasona ble assura nce about wheth er the financial s tatements

are f ree of mater ial misstatem ent . An a udi t includes examining, on a test bas is , evidence supp or t ing the a moun ts

and disclosures in th e fina ncial s tatements . An au di t also includes ass essing the accoun t ing pr inciples used a nd

signi fican t est imates ma de by m an agement , a s wel l as evaluat ing the overal l financial s tatemen t presen tat ion. We

believe that our audit provides a reasonable basis for our opinion.

3 . We d id n o t a u d i t t h e fin a n c ia l s t a t em e n t s of t h e S u b s id ia r y C om p a n ie s a n d J o in t Ve n t u r e C om p a n ie s , w h os e

financial s tatemen ts ref lect the Group’s s hare of to tal assets of Rs. 3 ,050.63 crores as at March 31, 2010 , the to tal

revenu e of Rs. 5 ,782.87 crores an d cas h flows am ount ing to Rs. (108.19) crores for th e year ended on th at da te as

considered in th e consolidated financial s tatements . These f inan cial s tatemen ts h ave been au di ted by the other

au di tors whose repor ts ha ve been furnished to u s an d our opinion, insofar a s i t relates to the a moun ts included

in respect of these Sub sidiar ies an d J oint Ventu re Compan ies , i s bas ed solely on the repor t of the other au di tors .

4 . We h a ve r elie d u p o n t h e u n a u d it ed fin a n c ia l s ta t e m en t s o f t h r ee J o in t Ve n t u r e Co m p a n ie s , wh ic h r e fle ct s t ot a l

assets of Rs. 648.54 crores as at March 31, 2010 and to tal revenues of Rs. 53.43 crores and net cash f lows

amount ing to Rs. (222.79) crores for the year ended on that date as considered in the consol idated f inancial

s t a t emen t s .

5 . We repor t tha t t he consolida t ed financia l s t a t emen t s have been p repared by t he managemen t of Hindus t an Pe troleum

Corporation Limited in accordance with the requirements of Accounting Standard 21 “Consolidated Financial

Statem ents” and Account ing Stan dard 27 “Fina ncial Repor t ing of In terests in J oint Ventu res”, i ssued un der

Companies (Accounting Standards) Rules, 2006.

6 . B a s ed on o u r a u d it a n d c on s o lid a t io n of t h e re p or t s of o th e r a u d it or s on s e p a r a te fin a n c ia l st a t em e n t s on o t h er

financial information of the components, and to the best of our information and according to the explanation

given to us , we are of the opinion that the at tached consol idated f inancial s tatements g ive a t rue and fai r

v i ew i n con fo rmi t y wi t h t he accoun t i ng p r i nc i p l es genera l l y accep t ed i n Ind i a :

(a ) in t h e c a s e o f t h e C on s o lid a t e d Ba la n c e S h e et , of t h e c on s o lid a t e d s t a t e o f a ffa ir s o f t h e G ro u p a s

a t March 31 , 2010 ;

(b ) in t h e c a s e o f t h e C on s o lid a t e d P ro fit a n d L os s Ac c ou n t , o f t h e c on s o lid a t e d r e s u lt s o f o p er a t io n s

of the Group for the year ended on that date; and

(c ) in t h e c a s e o f t h e C on s o lid a t e d Ca s h F l ow S ta t e m e n t , o f t h e c on s o lid a t e d ca s h f lo ws o f t h e G ro u p

fo r t he year ended on t ha t da t e .

For V. Sa n ka r Aiya r & Co. For Om Aga rwa l & Co.Ch a r t e r e d Ac c o u n t a n t s Ch a r t e r e d Ac c o u n t a n t s

Fir m No. : 1 0 9 2 0 8 w Fir m No. : 0 0 0 9 7 1 c

G. S a n k a r Om Pr a k a s h Aga r wa l

P a r t n e r P a r t n e r


Place : New Delh i

Da te : 26 th May 2010



74


Consolidated Balance Sheet as at 31st March , 2010

Rs./ Crores

S CH E DULE 2 0 0 9 -1 0 2 0 0 8 - 0 9

SOURCES OF FUNDS

Shareho l der s ’ Funds :

a ) Ca p ita l 1 3 3 9 . 0 1 339 .01

b) Res erves a n d Su rplu s 2 1 1 , 7 9 7 . 8 6 10,802.36

1 2 , 1 3 6 . 8 7 11,141.37

Sh a r e Ap p lic a t ion Mon e y Pe n d in g Allo t m e n t 1 3 8 .6 9 1.24

Loan Funds :

a ) Secu red Loa n s 3 4 , 0 8 9 . 1 8 1,723.16

b) Un s ecu red Loa n s 4 2 0 , 2 4 7 . 2 0 22,337.99

2 4 , 3 3 6 . 3 8 24,061.15

De fe r re d Ta x Lia bilit y 1 ,9 1 2 .3 1 1,686.42

Min or it y In t e r e s t 2 .5 4 2.68

T O T AL 3 8 ,5 2 6 .8 0 3 6 , 8 9 2 . 8 6APPLICATION OF FUNDS

Fi xed Asse t s : 5

a ) Gros s Block 2 6 , 7 4 5 . 8 4 21,949.61

b ) Le ss : De pr ec ia tion 1 0 , 5 0 2 . 3 4 9,287.32

c) Net Block 1 6 , 2 4 3 . 5 0 12,662.29

d) Ca p ita l Work -in -Progress 6 8 , 9 1 6 . 5 1 6,454.65

2 5 , 1 6 0 . 0 1 19,116.94

I n v e s t m e n t s 7 9 , 6 1 7 . 1 5 12,827.38

Cur ren t Asse t s , Loans and Advances :

a ) In ven tor ies 8 1 3 , 1 0 4 . 9 6 9,116.25

b) Su n dry Deb tors 9 2 , 7 0 3 . 2 6 2,491.96

c) Ca s h a n d Ba n k Ba la n ces 10 8 0 2 . 9 4 1,276.27

d) Oth er Cu rren t Ass ets 11 1 4 4 . 0 1 185 .33

e) Loa n s a n d Adva n ces 12 5 , 4 3 0 . 7 3 4,345.70

2 2 , 1 8 5 . 9 0 17,415.51

Less:

Cur ren t L iab i li t i es an d Prov i s i ons : 13

a ) Lia bilit ies 1 6 , 3 1 1 . 8 7 11,230.94

b) P r ovis ion s 2 , 1 2 5 . 3 2 1 , 2 3 7 . 0 7

1 8 , 4 3 7 . 1 9 1 2 , 4 6 8 . 0 1

Ne t Cu r r e n t As s e t s 3 ,7 4 8 .7 1 4 , 9 4 7 . 5 0

Mis c e lla n e o u s E xp e n d it u r e t o t h e e x t e n t n o t wr i t t e n o ff o r a d ju s t e d 0 . 9 4 1 . 0 5

T O T AL 3 8 ,5 2 6 .8 0 3 6 , 8 9 2 . 8 6

NOTE S F ORMING PART OF CONS OLIDATE D ACCOUNTS 2 0


ARUN BALAKRISHNAN

C h a i r m a n & Ma n a g i n g D ir e c t o r

B. MUKHERJ EE




Pl ace : New Del h i

Date : 26th May 10



F i r m N o . 1 0 9 2 0 8 w

G. SANKAR

P a r t n e r

Membersh i p No . 46050



Fi rm No . 000971c

OM PRAKASH AGARWAL

P a r t n e r




75


Rs. / Crores

S CH E DULE 2 0 0 9 -1 0 2 0 0 8 - 0 9INCOME

Sale of Products 1 1 3 , 1 6 3 . 3 8 121,510.39

Less: Excise duty Paid 7 , 9 8 5 . 4 5 7,830.65

Net Sales 1 0 5 , 1 7 7 . 9 3 113,679.74

Recovery under Subsidy Schemes 6 , 2 8 9 . 9 5 15,374.82

Oth er In com e 14 1 , 8 3 2 . 4 7 924.26

1 1 3 , 3 0 0 . 3 4 129,978.82

INCREASE / (DECREASE) IN INVENTORY 15 3 , 2 9 3 . 6 5 (1,945.46)

EXPENDITURE AND CHARGES

Purchase of Products for resale 6 2 , 6 8 1 . 9 3 73,399.07

Raw materials consumed 4 1 , 2 2 7 . 8 5 44,617.58

Packages consumed 1 5 0 . 2 3 140.19

Excise duty on inventory differential 3 3 9 . 6 7 (188.24)

Transs hipping Expenses 2 , 6 5 3 . 5 6 2,437.15

Paym en ts to an d p rovis ion s for Em ployees 16 1 , 6 4 2 . 8 2 1,162.71

Explorat ion Expenses 2 5 6 . 9 8 71.96

Oth er Opera t in g Expen s es 17 3 , 0 4 1 . 1 4 2,197.13Deprecia t ion/ Amor t i sa t ion 1 , 2 5 0 . 5 2 1,066.06

Borrowin g Cos t 18 9 3 2 . 1 3 2,112.33

Miscellaneous Expenditure wri t ten off 1 . 5 3 6.07

1 1 4 , 1 7 8 . 3 6 127,022.01

PROFIT FOR THE YEAR BEFORE TAXES 2 , 4 1 5 . 6 3 1,011.35

PRIOR PERIOD DEBITS / (CREDITS) (NET) 19 ( 3 .86 ) (0.49)

PROFIT BEFORE TAXES 2 ,4 1 9 .4 8 1,011.84

PROVISION FOR CURRENT TAXATION 6 6 0 . 7 1 327.96

PROVISION FOR D EF ERRE D TAXATION (NET) 2 2 5 . 8 9 42.75

PROVISION FOR TAXATION IN EARLIER YEARS WRITTEN BACK 5 7 . 7 2 (103.65)

PROVISION FOR DE FE RRED TAX OF E ARLIER YEARS WRITTEN BACK - (26.90)

PROVISION FOR FRINGE BE NEFIT TAX 0 . 0 1 14.36

PROFIT AFTER TAXES 1 ,4 7 5 .1 5 757.32

Le s s : Sh a r e of Min or it y In t e r e s t (0 .1 4 ) (0.07)

PROFIT AFTER TAX AND MINORITY INTEREST 1 ,4 7 5 .2 9 757.39

Balance brought forward 8 , 5 1 9 . 5 7 8,039.61

PROFIT AVAILABLE FOR

APPR OPR IATION 9 ,9 9 4 .8 6 8,797.00

APPROPRIATED FOR:

General Reserve 1 3 6 . 7 8 63.26

Debenture Redempt ion Reserve 8 6 . 4 0 -

Proposed Final Dividend 4 0 6 . 3 5 177.78

Tax on Distributed Profits 7 3 . 7 3 36.39

BALANCE CARRIED FORWARD 9 ,2 9 1 .6 0 8,519.57

EARNINGS PER SHARE (in Rs .) 4 3 .5 7 22.37

(2009-10 : EPS = Net Profit - Rs. 1475.29 crores / Weighted avg. no. of shares - 33.86 crores)

(2008 -09 : EPS = Net Profit - Rs. 757.39 crores / Weighted avg. no. of sha res - 33 .86 crores)

(Face value of each sh are : Rs. 10)

NOTES FORMING PART OF CONSOLIDATED ACCOUNTS 20

Consolidated Profit and Loss Account for the year ended 31st March, 2010


ARUN BALAKRISHNAN

C h a i r m a n & M a n a g i n g D i r e c t o r

B. MUKHERJE E




Pl ace : New Del h i

Date : 26th May 10



F i r m N o . 1 0 9 2 0 8 w

G. SANKAR

P a r t n e r




Fi rm No . 000971c

OM PRAKASH AGARWAL

P a r t n e r




76


Schedules forming part of the Consolidated Balance Sheet

Rs. / Crores

2 0 0 9 - 1 0 2 0 0 8 - 0 91 . CAP IT AL

A. Au t h or i s e d :

75 ,000 Cumul a t i ve Redeemab l e

Preference Shares o f Rs . 100 each 0 . 7 5 0 . 7 5

34 ,92 ,50 ,000 Equ i t y Shares o f Rs .10 each 3 4 9 . 2 5 3 4 9 . 2 5

3 5 0 . 0 0 3 5 0 . 0 0

B . Is s u ed , S u bs c ri be d & Ca lle d up :

33 ,93 ,30 ,000 Equ i t y Shares o f Rs .10 each fu l l y pa i d up 3 3 9 . 3 3 3 3 9 . 3 3

Less : 7 ,02 ,750 Shares Fo r fe i t ed du r i ng t he year ( 0 . 7 0 ) (0 .70 )

33 ,86 ,27 ,250 equ i t y shares o f Rs . 10 each fu l l y pa i d up 3 3 8 . 6 3 3 3 8 . 6 3

Add: Shares Forfei ted (money received) 0 . 3 9 0 . 3 9

3 3 9 . 0 1 3 3 9 . 0 1

2 . R ES ER VE S AND SUR PLUSS h a r e P r e m i u m A c c o u n t

As per l as t Bal ance Shee t 1 , 0 9 8 . 4 5 1 , 0 9 5 . 7 6

Add : Received During the Year - 2 . 6 9

1 ,0 9 8 .4 5 1 ,0 9 8 .4 5

C a p i t a l G r a n t

As per Las t Bal ance Shee t 4 . 3 6 4 . 5 5

Less : Amor t i sed du r i ng t he year ( 0 . 1 9 ) (0 .19 )

4 . 1 7 4 . 3 6

Ca p i t a l R e s e r ve (0 . 0 8 ) (0 .08 )

Ma r k e t De ve lo p m e n t Re s e r ve (1 . 4 0 ) (1 .40 )

G e n e r a l R e s e r v e

As per l as t Bal ance Shee t 1 , 1 4 2 . 1 4 1 , 2 7 8 . 3 3

Add : Adjustments for Dividend 3 6 . 8 4 3 6 . 3 7

Less : Exchange Rate Var iat ion on Restatment of ECB of 2007-08 in l ine

wi t h t r ans i t i ona l p rov i s i ons o f AS-11 - (199 .46 )

Add :Transfer f rom Prof i t & Loss Account 1 3 6 . 7 8 6 3 . 2 6

1 ,3 1 5 .7 6 1 ,1 7 8 .5 0

Deben t u re Redempt i on Reserve

As per l as t ba l ance shee t - -

Add :Transfer f rom Prof i t & Loss Account 8 6 . 4 0 -

8 6 . 4 0 -

Pr o fi t & Lo s s Ac c o u n t S u r p lu s a s p e r Ac c o u n t a n n e xe d 9 , 2 9 1 . 6 0 8 , 5 1 9 . 5 7

1 1 , 7 9 7 . 8 6 1 0 , 8 0 2 . 3 6

3 . S E CUR E D LOANS

7 .35% Non Conver t i b l e Deben t u res 1 , 0 0 0 . 0 0 -

Col lateral Borrowing and Lending Obl igat ion (CBLO) 2 5 0 . 0 0 3 9 0 . 0 0

Overd raf t s f rom Banks 1 2 5 . 8 8 3 0 8 . 4 9

Rupee Term Loan 2 4 . 2 1 2 4 . 2 1

Long Term Loans f rom Banks 9 1 . 3 8 1 0 5 . 7 8

Fore i gn Cur rency Loan 2 4 2 . 0 1 1 5 . 5 1

Zero Coupon Bonds 2 9 . 1 1 3 4 . 2 3

Secured Loan f rom Banks 0 . 3 2 -

O t h e r s 2 , 3 2 6 . 2 8 8 4 4 . 9 4

4 , 0 8 9 . 1 8 1 , 7 2 3 . 1 6



77


Rs. / Crores

2 0 0 9 - 1 0 2 0 0 8 - 0 9

4 . UNS ECUR ED LOANS

Fixed Deposits 0 . 0 2 0.02

From Oi l Indus t ry Devel opmen t Board 5 4 8 . 0 0 1 , 0 1 0 . 0 0

Commerc i a l Paper 2 , 8 5 0 . 0 0 6 0 0 . 0 0

Cl ean Loans 7 , 9 7 5 . 0 0 1 5 , 6 9 0 . 0 0

Synd i ca t ed Loans f rom Fore i gn Banks 2 , 0 1 2 . 8 7 2 , 1 6 2 . 8 1

Shor t Term Loans From Banks 4 , 1 4 8 . 6 0 1 , 2 8 9 . 3 5

Sal es Tax Defermen t Loan 4 6 . 4 9 4 3 . 9 0

In t er Corpora t e Depos i t s 2 , 4 8 3 . 1 3 1 , 2 8 7 . 6 3

O t h e r s 1 8 3 . 0 8 2 5 4 . 2 8

2 0 , 2 4 7 . 2 0 2 2 , 3 3 7 . 9 9


5 . F IXE D ASSETS. (Rs. in Crores)

G r os s B lo ck Ad d it io n s / D ed u c t io n s / Gr o ss B lo c k De p r e ci a t io n Tota l Ne t Net

Des cr ip t ion a t cos t Recla s s ifi- Recla s s ifi a t c o s t an d Depr ecia t ion Block Block

a s a t ca t ion s ca t ion s a s at Am o rt is at io n a n d a s a t a s a t01 -04-2009 3 1 -0 3 -2 0 10 fo r t h e Ye a r Am or tis a tion 3 1- 03 -2 01 0 3 1- 03 -2 00 9

2009-2010 up to

31-03-2010

A. OTHER THAN INTANGIBLE ASSETS

1 . La n d -Freeh old 6 0 0 .6 5 3 3 .2 8 - 6 3 3 .9 3 - - 6 3 3 .9 2 6 0 0 .6 5

2 . Roa d s a n d Cu lver ts 1 ,0 6 7 .7 3 2 2 1 .2 4 2 .3 7 1 ,2 8 6 .6 0 2 0 .9 3 1 2 1 .0 5 1 ,1 6 5 .5 5 9 6 5 .4 2

3 . Bu ild in gs 2 ,0 2 8 .8 5 2 6 8 .6 9 5 .0 1 2 ,2 9 2 .5 3 4 9 .8 4 3 1 8 .6 1 1 ,9 7 3 .9 2 1 ,7 5 7 .1 6

4 . Lea s eh old Proper ty - La n d 3 4 9 .3 3 3 6 .7 6 0 .2 8 3 8 5 .8 1 1 1 .7 1 5 2 .7 4 3 3 3 .0 7 3 0 8 .0 7

5 . Ra ilwa y Sid in g & Rollin g S tock 2 8 1 .9 9 1 0 .0 2 0 .0 0 2 9 2 .0 1 1 2 .5 1 1 6 5 .6 0 1 2 6 .4 1 1 2 8 .9 1

6 . Pla n t & Ma ch in ery 1 6 ,8 3 1 .2 1 4 ,1 1 6 .0 0 3 0 .4 7 2 0 ,9 1 6 .7 4 1 ,0 8 0 .7 9 9 ,4 3 8 .3 2 1 1 ,4 7 8 .4 3 8 ,4 4 6 .6 6

7 . F u r n it u r e , F ix t u r es & O ffi ce /

La bora tory Equ ipm en t 5 2 2 .4 1 7 8 .6 1 9 .5 6 59 1 .4 6 4 3 .3 1 26 0 .3 4 33 1 .1 3 2 98 .74

8 . Tra n s p or t Equ ipm en t 1 2 9 .3 6 2 9 .2 5 3 .5 2 1 55 .10 1 2 .3 5 7 1 .0 9 84 .01 6 7 .4 8

9 . U n a ll oc a t ed C a p it a l Ex p en d i tu r e

on La n d Developm en t 0 .2 0 2 .2 1 - 2 .4 1 - 0 .2 0 2 .2 1 -

10 . Share o f FA in JVs - ONGC

Ma rgin a l Fields (PI 50 %) 2 .9 5 1 .4 2 - 4 .3 7 0 .0 6 0 .2 0 4 .1 7 2 .8 2

Project Sa n ga n pu r (PI 50 %) 3 .3 6 (0 .0 0 ) - 3 .3 6 0 .0 1 0 .0 4 3 .3 3 3 .3 4

TOTAL(A) 21,818.04 4,797.48 51.21 26,564.32 1,231.51 10,428.17 16,136.15 12,579.23

B. INTANGIBLE ASSETS

1 . Righ t of Wa y 2 0 .6 8 0 .0 4 - 20 .73 - - 20 .73 2 0 .6 8

2 . Tech n ica l / Proces s Licen s es 1 1 .3 1 22 .5 2 - 3 3 .8 3 4 .3 5 8 .5 4 2 5 .29 6 .7 5

3 . Softwa re 9 8 .2 0 27 .4 4 0 .0 4 1 25 .6 0 2 1 .8 6 6 5 .5 8 6 0 .0 1 5 3 .8 8

TOTAL (B) 1 3 0 .1 9 5 0 .0 1 0 .0 4 1 8 0 .1 5 2 6 .2 1 7 4 .1 2 1 0 6 .0 3 8 1 .3 1

Su b TOTAL (A+B) 2 1 ,9 4 8 .2 3 4 ,8 4 7 .4 8 5 1 .2 5 2 6 ,7 4 4 .4 7 1 ,2 5 7 .7 2 1 0 ,5 0 2 .2 9 1 6 ,2 4 2 .1 8 1 2 ,6 6 0 .5 4

Held for Dis p os a l ( C ) 1 .3 8 0 .0 4 0 .0 6 1 .37 0 .0 4 0 .0 5 1 .3 2 1 .3 4

Gr a n d To t a l (A+B+C) 2 1 ,9 4 9 .6 1 4 ,8 4 7 .5 3 5 1 .3 1 2 6 ,7 4 5 .8 4 1 ,2 5 7 .7 7 1 0 ,5 0 2 .3 4 1 6 ,2 4 3 .5 0 1 2 ,6 6 1 .8 8

Prev ious Year 2 1 ,2 71 .8 9 8 08 .6 1 13 0 .8 9 2 1 ,9 49 .6 1 1 ,06 7 .8 2 9 ,2 87 .3 2 12 ,6 6 2 .29



78



R s . / C r o re s

2 0 0 9 - 1 0 2 0 0 8 - 0 96 . C AP IT AL WO R K-I N-P R OG RE S S (At C os t )

Unal l oca t ed Cap i t a l Expend i t u reand Mat er i a l s a t S i t e 7 , 8 4 5 . 2 6 5 , 3 6 6 . 0 1

Advances fo r Cap i t a l Expend i t u re 1 9 8 . 4 9 1 1 5 . 3 5

Capi tal Stores 7 7 . 2 1 3 9 . 6 5

Capi tal Stores ly ing wi th Contractors 1 6 5 . 4 1 4 . 4 9

Cap i t a l goods i n t r ans i t 4 . 4 3 1 2 . 2 6

8 , 2 9 0 . 8 0 5 , 5 3 7 . 7 6

Cons t ruc t i on per i od expenses pend i ng appor t i onmen t (ne t o f r ecovery ) 3 5 8 . 6 4 9 5 . 1 8

E s t a b l i s h m e n t c h a r g e s 9 0 . 5 8 7 7 . 4 9

I n t e r e s t 1 6 9 . 6 6 5 8 1 . 0 7

Ot her Bor rowi ng Cos t 6 . 8 1 1 6 3 . 1 5

Deprec i a t i on 0 . 0 2 0 . 0 0

6 2 5 . 7 1 9 1 6 . 8 9

8 , 9 1 6 . 5 1 6 , 4 5 4 . 6 5

7 . INVE S T ME NT SI . LO NG TE RM INVE S TME NT S (a t c o s t ):

A. T RADE INVE ST ME NT S

Q u o t e d

1 . 7 . 0 0 % O il Ma r k e tin g C om p a n i es ’ G OI Sp e cia l Bo n d s , 2 00 9 4 . 6 2 4 . 6 2

2 . 6 . 9 0 % O il Ma r k e tin g C om p a n i e s ’ G OI Sp e c ia l Bo n d s , 2 0 26 3 , 5 0 0 . 0 0 3 , 5 0 0 . 0 0

3 . 6 . 3 5 % O il Ma r k e tin g C om p a n i e s ’ G OI Sp e c ia l Bo n d s , 2 0 24 - 4 , 6 0 3 . 7 3

(Re-c l ass i f i ed under Cur ren t Inves t men t s du r i ng t he year )

4 . Oil In dia Lt d . 5 6 1 . 7 6 -

U n q u o t e d

1 . Pr ize Pe tr ole u m Co. Lt d.

(8% Cumulative Convertible Preference Shares of Rs.10 each, Rs. 6.70 paid up) 1 6 . 7 5 1 5 . 0 0

(Rs. 6 .00 each paid up for 2008-09)

2 . Shell MRPL Avia t ion Fuels & Services Lt d . 2 . 5 4 2.54

3 . Pet ron et In dia Ltd . 1 6 . 0 0 16 .00

Less : Provision for Dimuni t ion ( 1 6 . 0 0 ) (16 .00 )

T OT AL (A) 4 ,0 8 5 .6 7 8 , 1 2 5 . 8 9

B. OT HE R INVE ST ME NT S

Q u o t e d

1. Governmen t Securit ies of the face value of Rs. 0.02 crores (2008-09 : 0.02 crores)

D e p o s i t e d w i t h O t h e r s 0 . 0 2 0 . 0 2

O n h a n d (R s . 2 5 ,0 0 0 / - ) 0 . 0 0 0 . 0 02 . S coot er s In dia Lt d.

10,000 Equi ty Shares of Rs. 10 each ful ly paid up 0 . 0 1 0 . 0 1U n q u o t e d

1 . G ove r n m e n t S ec u r it ie s o f t h e fa c e va lu e o f R s . 0 . 2 4 la k h s(2008-09 : Rs . 0 .24 l akhs )

Depos i t ed wi t h Ot her s - Rs . 0 .10 l akhs (2008-09 : Rs . 0 .10 l akhs ) 0 . 0 0 0 . 0 0

On hand - Rs . 0 .14 l akhs (2008-09 : Rs . 0 .14 l akhs ) 0 . 0 0 0 . 0 0

2 . E as t In d ia Clin ic Lt d.

1/ 2% Debentures of face value of Rs. 0.15 lakhs (2008-09 : Rs. 0.15 lakh s) 0 . 0 0 0 . 0 0

5% Debentures of face value of Rs. 0 .07 lakhs (2008-09 : Rs. 0 .07 lakhs) 0 . 0 0 0 . 0 0

3 . S h u s h r u s h a C it iz en C o- op e r a tive Ho s p it a l Lim i te d100 Equi ty Shares of Rs. 100 each ful ly paid up Rs. 0 .10 lakhs

(2008-09 : Rs . 0 .10 l akhs ) 0 . 0 0 0 . 0 0

4 . P et r ole u m In d ia In t e rn a t io n a l (AO P)

Con t r i bu t i on t owards Seed Cap i t a l 5 . 0 0 5 . 0 0

T OT AL (B) 5 . 0 3 5 . 0 3

T OT AL LONG T E R M INVE S T ME NT S 4 , 0 9 0 . 7 0 8 , 1 3 0 . 9 2

Less: Provision for loss on Investments** - Rs. 0 .14 lakhs 0 . 0 0 0 . 0 0

TOTAL : I 4 , 0 9 0 . 7 0 8 , 1 3 0 . 9 2

** Includes Rs. 0.14 lakhs (2008-09 : Rs. 0.14 lakhs) not in the possession of the Company



79



R s . / C r or e s

II. CUR RE NT INVE ST ME NT S (a t Co st o r Fa ir Va lu e wh ic h e ve r is lo we r ) 2 0 0 9 -1 0 2 0 0 8 - 0 9

A. T RADE I NVE S TME NT S

Q u o t e d

i . 7 . 4 7 % O il M a rk e t in g Co m p a n ie s ’ G OI S p e cia l Bo n d s , 2 0 1 2 1 0 . 0 0 1 0 . 0 0

i i . 7 . 6 1 % O il M a r k e t in g Co m p a n i e s ’ G O I S p e c ia l B on d s , 2 0 1 5 5 . 1 2 5 . 1 2

i i i. 8 . 2 0 % Oi l M a r k e t in g C om p a n i e s ’ G O I S p e c ia l B on d s , 2 0 2 4 * 1 , 2 9 2 . 6 4 -

i v . 7 . 9 5 % O il M a r k e t in g C om p a n i e s ’ G O I S p e c ia l Bo n d s , 2 0 2 5 - 2 4 3 . 2 6

v . 8 . 2 0 % O il Ma r k e tin g C om p a n i e s ’ G OI Sp e c ia l Bo n d s , 2 0 23 - 1 , 4 0 3 . 7 3

v i . 6 . 9 0 % O il M a r k e t in g C om p a n i e s ’ G O I S p e c ia l Bo n d s , 2 0 2 6 8 0 . 0 0 8 9 4 . 1 2

v ii . 8 . 0 0 % O il Ma r k e t i n g Co m p a n ie s ’ G O I S p e c ia l B on d s , 2 0 2 6 2 3 . 7 6 2 , 0 3 8 . 4 1

v i i i. 6 .35% Oil Market i ng Compa n i es ’ GOI Speci a l Bonds 20 24

(Refer Note 10 of Schedule 20B) 3 , 8 4 6 . 8 5 -

T OT AL (A) 5 ,2 5 8 .3 6 4 , 5 9 4 . 6 4

B . NO N T R AD E (UNQ UO T E D) I NVE S T ME NT S

U n q u o t e d

Inves t men t s i n Un i t s o f UTI

i ). U TI Liq u id C a s h P la n ( 9 2 7 0 57 . 40 9 u n it s @ R s . 1 0 1 9 .4 4 5 7 ) 3 7 . 6 9 -

i i) U TI Tr e a s u r y Ad va n t a g e Fu n d : In s t it u t io n a l Pla n

(6004 369 .404 u n i t s @ Rs . 1000 .2929 ) 2 3 0 . 3 9 1 0 1 . 8 2

T OT AL (B) 2 6 8 . 0 8 1 0 1 . 8 2

TOTAL : II 5 ,5 2 6 .4 4 4 ,6 9 6 .4 6

TOTAL INVE STME NTS (I + II) 9 ,6 1 7 .1 5 1 2 ,8 2 7 .3 8

* Pledged with Clearing Corporation of India Limited against CBLO Loan

8 . INVE NT OR IE S

Raw Mater ials 2 , 8 8 5 . 1 9 2 , 2 0 9 . 4 4


St ock i n Process 8 5 5 . 3 8 3 5 0 . 5 0

P a c k a g e s 8 . 7 6 7 . 7 1

1 2 , 8 9 2 . 6 8 8 , 9 2 2 . 2 3St o res and Spares 2 1 2 . 2 8 1 9 4 . 0 2

1 3 , 1 0 4 . 9 6 9 , 1 1 6 . 2 5

9 . S UNDR Y DE BT OR S : (Un s e c u re d )

Over s i x mon t hs :

Cons i dered good 9 7 . 7 3 5 5 1 . 0 1

Cons i dered doub t fu l 9 1 . 7 1 9 1 . 1 3

O t h e r s :

Cons i dered good 2 , 6 2 9 . 7 9 1 , 9 4 2 . 1 6

Cons i dered doub t fu l 0 . 2 9 0 . 2 8

2 , 8 1 9 . 5 2 2 , 5 8 4 . 5 8

Less: Provision for Doubtful Debts ( 1 1 6 . 2 6 ) (92 .62 )

2 , 7 0 3 . 2 6 2 , 4 9 1 . 9 6

1 0 . C AS H AN D B AN K B AL ANC E S

C a s h o n h a n d 3 . 1 3 1 . 8 5

Cash & Cheques Awai t i ng Depos i t 3 . 9 4 4 . 4 7

W i t h S c h e d u l e d B a n k s :

O n C u r r e n t A c c o u n t s 2 7 3 . 9 2 6 1 2 . 3 9

On Non-opera t i ve Cur ren t Accoun t s 0 . 0 1 0 . 0 1

On F i xed Depos i t Accoun t s 5 2 1 . 8 4 6 5 7 . 4 4

W i t h O t h e r s :

In Current Account wi th Municipal Co-operat ive Bank Ltd . (maximum balance

dur i ng t he year Rs . 0 .17 cro res ; 2008-09 : Rs . 0 .14 cro res ) 0 . 1 1 0 . 1 1

8 0 2 . 9 4 1 , 2 7 6 . 2 7



80


R s . / C r o re s

2 0 0 9 - 1 0 2 0 0 8 - 0 9

1 1 . O TH E R C UR R ENT AS S ET S

In t e res t accrued on Bank Depos i t s and Inves t men t s 1 4 4 . 0 1 1 8 5 . 3 3

1 2 . L OANS A ND AD VANC E S

S e c u r e d , c o n s i d e r e d g o o d :

Advances recoverable in cash or in k ind or for value to be received 3 6 3 . 4 7 4 1 2 . 3 1

In t eres t Accrued t hereon 1 5 4 . 5 8 1 4 6 . 2 9

U n s e c u r e d , c o n s i d e r e d g o o d :

Advances recoverable in cash or in k ind or for value to be received 1 6 6 . 0 9 1 1 3 . 7 7

Bal ances wi t h Exci se , Cus t oms , Po r t Trus t e t c . 3 3 7 . 4 2 1 7 7 . 0 4

Ot her Depos i t s 2 7 0 . 7 7 1 5 8 . 0 3

P r e p a i d E x p e n s e s 1 0 2 . 4 2 5 5 . 1 5

Amoun t s r ecoverab l e under Subs i dy Schemes 3 , 0 4 1 . 0 9 2 , 0 7 5 . 4 0

Inter Corporate Deposi t ( 1 6 . 8 7 ) 6 5 . 9 2

Advance t owards Equ i t y 1 9 6 . 1 5 2 2 . 0 1

Share App l i ca t i on Money Pend i ng Al l o t men t 3 . 7 3 3 . 7 3

Ot her Accoun t s Rece i vab l e 8 1 1 . 8 9 1 , 1 1 6 . 0 5

U n s e c u r e d , c o n s i d e r e d d o u b t f u l :

Accounts Receivable & Deposits 3 . 5 4 3.85

5 , 4 3 4 . 2 7 4 , 3 4 9 . 5 5

Less : Provision for Doubtful Receivables ( 3 . 5 4 ) (3 .85 )

5 , 4 3 0 . 7 3 4 , 3 4 5 . 7 0

13 . CURRENT LIABILITIES AND PROVISIONS

A. Cu rr en t L ia bilit ie s

Sundry Cred i t o r s

i ) To ta l ou t s t a n d in g d u e s of Mic r o, S m a ll a n d Me d iu m E n t e rp r is e s 1 . 8 2 1 . 5 4

i i) To ta l ou t s t a n d in g d u e s of c r ed it or s o th e r t h a n a b o ve 9 , 1 0 8 . 8 7 6 , 3 2 4 . 3 4

Depos i t s from Dea l er s / Consu mers fo r LPG Cyl inder s 3 , 7 3 2 . 6 1 3 , 2 1 7 . 6 4

Ot her Depos i t s 1 8 4 . 9 3 1 6 8 . 3 2

Ac c r u e d C h a r g e s / C r e d it s 6 8 . 2 3 4 1 . 0 2

In t eres t accrued bu t no t due on l oans 7 9 . 9 9 1 1 6 . 0 6

In t eres t accrued and due on Deben t u res 0 . 0 1 0 . 1 3

P r e fe r e n c e s h a r e c a p i t a l r e d e e m e d r e m a i n i n g u n c la i m e d / u n c a s h e d 0 . 0 1 0 . 0 1

U n c l a i m e d D i v i d e n d 4 . 7 4 5 . 5 7

Unpai d Mat u red Deben t u res / fi xed depos i t s 0 . 0 7 0 . 7 2

Other Liabi l i t ies 3 , 1 3 0 . 5 9 1 , 3 5 5 . 5 9

1 6 , 3 1 1 . 8 7 1 1 , 2 3 0 . 9 4

B. P r o v i s i o n s

Provision for Tax (Net) 5 5 9 . 0 2 3 3 1 . 9 9

P r o p o s e d D i vi d e n d 4 0 6 . 3 5 1 7 7 . 7 8

Provi s ion fo r Gra t u i t y / Pens i on 1 5 6 . 2 8 1 1 5 . 3 6

Provision for Other Long Term Benef i t s 4 8 9 . 2 3 3 6 7 . 0 2

Provision for Other Employee Benef i t s 4 4 0 . 5 3 2 0 5 . 1 1

Provision for Fr inge Benef i t Tax 0 . 1 8 0 . 4 5

Tax on Di s t r i bu t ed Pro f i t s 7 3 . 7 3 3 6 . 3 9

O t h e r P r o v i s i o n s 0 . 0 0 2 . 9 7

2 , 1 2 5 . 3 2 1 , 2 3 7 . 0 7

1 8 , 4 3 7 . 1 9 1 2 , 4 6 8 . 0 1




81


Schedules forming part of the Consolidated Profit & Loss Account

R s . / C r or e s

2 0 0 9 - 1 0 2 0 0 8 - 0 9

1 4 . O TH ER INCO ME

Interest (Gross) :

O n I n v e s t m e n t s

- Long Term 2 4 1 . 8 2 1 2 6 . 8 5

- Shor t Term 4 5 7 . 8 7 2 8 5 . 8 0

On Depos i t s 8 . 2 1 5 . 0 9

On Staff Loans 1 5 . 3 9 1 7 . 0 0

On Cus tomers ’ Accoun ts 5 4 . 2 8 7 5 . 6 9

O n O t h e r s 6 5 . 8 9 4 3 . 9 0

8 4 3 . 4 7 5 5 4 . 3 3

D i v i d e n d s 1 5 . 5 8 7 . 0 5

Share of Prof i t f rom Pet roleum India In ternat ional (AOP) 0 . 6 2 0 . 8 2Ren t Recover i es 6 1 . 5 9 5 1 . 4 6Prof i t on sale of Shor t Term Investments 0 . 0 0 3 7 . 8 3Exchange r a t e var i a t i on (Net ) 5 9 4 . 2 2 0 . 6 9

Profit on sale of fixed assets (Net) 1 . 6 9 0 . 7 8

Mi sce l l aneous Income 3 1 5 . 3 0 2 7 1 . 3 0

9 8 8 . 9 9 369 .93

1 , 8 3 2 . 4 7 9 2 4 . 2 6

15 . INCREASE / (DECREASE) IN INVENTORY

Closing Stock:

Stock in Process 8 5 5 . 3 8 350 .50


9 , 9 9 8 . 8 4 6 , 7 0 5 . 1 9

Less : Open i ng S t ock :

Stock in Process 3 5 0 . 5 0 510 .58


6 , 7 0 5 . 1 9 8 , 6 5 0 . 6 5

3 , 2 9 3 . 6 5 (1 ,945 .46 )

16 . PAYMENTS TO AND PROVISIONS

FOR EMPLOYEES

Sal ar i es , Wages , Bonus , e t c . 1 , 1 6 6 . 0 6 8 5 2 . 4 2

Con t r i bu t i on t o Prov i den t Fund 7 9 . 0 2 4 8 . 4 8Pens i on , Gra t u i t y e t c . 1 4 2 . 7 7 8 5 . 5 6

Ret i r emen t Benef i t s 0 . 0 2 0 . 0 7

Empl oyee Wel fare Expenses 2 5 4 . 9 5 1 7 6 . 1 8

1 , 6 4 2 . 8 2 1 , 1 6 2 . 7 1

1 7 . O T HE R OP E R AT ING E X PE NS E S

Consum pt ion of Stores , Spares and Chemicals 1 8 2 . 2 0 122 .66

P o w e r a n d F u e l 2 , 6 9 5 . 6 1 2 , 5 7 8 . 4 4

Less : Fue l o f own p roduct i on consumed 2 , 4 4 1 . 7 3 2 , 5 5 3 . 3 6

2 5 3 . 8 8 2 5 . 0 8

Repai r s and Mai n t enance - Bu i l d i ngs 4 0 . 0 6 2 8 . 4 3

Repai r s and Mai n t enance - P l an t & Mach i nery 4 3 8 . 3 5 3 5 5 . 3 2

R e p a i r s a n d M a i n t e n a n c e - O t h e r a s s e t s 9 9 . 0 3 7 5 . 0 5

I n s u r a n c e 2 3 . 9 0 1 9 . 3 7

R a t e s a n d T a x e s 6 1 . 9 9 5 5 . 6 8

I r r ecoverab l e Taxes and Ot her Lev i es 1 2 3 . 5 5 1 4 0 . 3 5

Equ i pmen t Hi re Charges 6 . 2 2 1 . 2 9

R e n t 1 3 9 . 5 3 1 2 8 . 6 2



82


Schedules forming part of the Consolidated Profit & Loss Account

Travel l i ng and Conveyance 9 9 . 0 4 9 7 . 6 4

P r i n t i n g a n d S t a t i o n e r y 1 0 . 9 0 9 . 7 1

Elect r ici ty and Water 2 2 6 . 6 2 1 7 4 . 2 9

C h a r i t i e s a n d D o n a t i o n s 1 5 . 1 9 1 4 . 0 0

Loss on Sa le/ Write off of Fixed Ass ets / CWIP 0 . 1 7 8 . 2 7

St o res & spares wr i t t en o f f 1 . 8 2 1 . 8 8

Prov i s i on fo r Di mi nu t i on i n va l ue o f Cur ren t Inves t men t s 7 0 3 . 7 3 (75 .28 )

Loss on Sa l e o f Cur ren t Inves t men t 5 6 . 7 5 -

Loss on Sale of Long Term Investment 0 . 0 0 1 . 2 7

Provision for Doubtful Debts an d Wri te-off / back 2 3 . 3 7 1 3 . 4 0

Provision for Doubtful Receivables 0 . 0 0 1 . 2 3

S e c u r i t y E x p e n s e s 6 6 . 9 6 5 8 . 3 5

Adver t i semen t & Pub l i c i t y 1 0 4 . 6 4 8 3 . 7 4

C o n s u l t a n c y a n d T e c h n i c a l C h a r g e s 2 7 . 2 3 2 9 . 6 6Sundry Expenses and Charges (No t o t herwi se c l ass i f i ed ) 3 3 6 . 0 1 8 2 7 . 1 2

3 , 0 4 1 . 1 4 2 , 1 9 7 . 1 3

1 8 . BO RR OWI NG CO ST

Interest on :

Long Term Loan s 2 3 . 6 1 55 .28

Short Term Loans 5 4 9 . 0 6 1305 .26

Overdraft from Banks 3 1 2 . 5 2 719 .22

Fixed Deposits 1 5 . 5 5 19 .44

Others 3 1 . 3 9 13 .13

9 3 2 . 1 3 2 , 1 1 2 . 3 3

1 9 . P R IO R P ER IO D D EBI TS / (C RE DI TS )

Raw Mater ial consu med (4 .70 ) (0.16)

Depreciation 3 . 6 7 0.04

Fina nce Cost (2 .66 ) -

Adjustment relating to earl ier years 0 . 0 5 (0.37)

Sales (0 .22 ) -

(3 .86 ) (0.49)

R s . / C r o re s

2 0 0 9 - 1 0 2 0 0 8 - 0 9



83


Notes forming part of the Consolidated Financial Statements

2 0 . No t e s fo r m i n g p a r t o f t h e C o n s ol id a t e d F in a n c i a l S t a t e m e n t s f o r t h e y e a r e n d e d 3 1 s t Ma r c h 2 0 1 0

1 . Ba sis of p re pa ra t ion

The conso l i da t ed f i nanci a l s t a t emen t s r e l a t es t o Hi ndus t an Pe t ro l eum Corpora t i on Li mi t ed , i t s Subs i d i ary

Compan i es a nd i t s i n t e res t i n J o in t Ven t u res , i n t h e form o f j oi n t l y con t ro l led en t i t ies .

The Company has p repared conso l i da t ed f i nanci a l s t a t emen t s i n acco rdance wi t h Accoun t i ng S t andard – 21

(Consolidated Finan cial Statem ents ) an d Accoun ting Stand ard – 27 (Reporting for Fina ncial Interes t in J oint Ventu res).

A new whol ly owned s u bsidiary comp an y, “M/ s. HPCL Biofuels Limi ted” ha s been incorpora ted on October

1 6 , 2 0 0 9 t o p r o d u c e b i o f u e l s , s u c h a s – e t h a n o l , w h i c h i s b l e n d e d w i t h p e t r o l . A s a r e s u l t , t h e o p e n i n g

balan ce of cur rent year m ay not ma tch wi th the pr evious year ’s f igures .

2 . P ri n c ip le s o f Co n so li d a t i o n

(i) Th e F in a n c ia l S ta t e m e n t s o f t h e C om p a n y a n d it s S u b s i d ia r y Co m p a n i e s h a v e b e e n c on s o lid a t e d o n a

l i ne-by - l i ne bas i s by add i ng t oge t her t he book va l ues o f l i ke i t ems o f asse t s , l i ab i l i t i es , i ncome and

expenses, the in t ra group balances and in t ra group t ransact ions and unreal i sed prof i t s or losses resul t ing

f rom i n t r a g roup t r ansac t i ons a re fu l l y e l i mi na t ed . The share o f Mi nor i t y In t e res t i n t he Subs i d i ar i es

has been d i sc l osed separa t e l y i n t he Conso l i da t ed F i nanci a l S t a t emen t s .

(i i) The f inan cia l s t a t emen t s o f J o in t Ven t u res ha ve been combi ned by app l ying p ropor ti ona t e conso l ida t i on

met hod on a l i ne-by - l i ne bas i s on i t ems o f asse t s , l i ab i l i t i es , i ncome, and expenses a f t e r e l i mi na t i ng

propor t i ona t e share o f un rea l i zed p ro f i t s o r l o sses .

3 . Co m p an i e s in c lu d ed in Co n so li d a t io n

Su bs id ia ry %Hold in g

HPCL Biofu els Lim ited 100 .00

CREDA-HPCL Biofu el Lim ited 74 .00

J o i n t V e n t u r e s

HPCL - Mitta l En ergy Lim ited 49 .00

Hin du s ta n Cola s Lim ited 50 .00

Sou th As ia LPG Co. Pvt . Lim ited 50 .00

Prize Pet roleu m Com pa n y Lim ited 50 .00

Ma n ga lore Refin ery a n d Petroch em ica ls Lim ited 16 .95

Bh a gya n a ga r Ga s Lim ited 25 .00

Pet ron et In d ia Lim ited* 16 .00Pet ron et MHB Lim ited 28 .77

Aa va n tika Ga s Lim ited 2 5 .00

*Propor t ionate consol idat ion in respect of Investments in Pet ronet India Limi ted has been discont inued in the

preparat ion of Consol idated Finan cial Statemen ts a s th e m an agement h as provided for fu l l d iminu t ion in the Value

of Investment during the financial year 2006-07.

4 . During th e year, ONGC and GAIL offered discou nt on prices of cru de, SKO and LPG pu rcha sed from th em. Accordingly,

the Corporat ion has accounted the discount as under :

(a) Rs. 796 crores (2008-09 : Rs. 995.13 crores) d iscoun t received on pu rchas e of SKO (PDS) and LPG (Domest ic)

from ONGC and GAIL ha s been adju sted a gainst ‘Purch as e of Product for Resale’.

(b ) R s . 2 ,4 5 1 . 1 4 c r o r e s (2 0 0 8 - 0 9 : Rs . 6 , 1 8 1 . 8 2 c r o r es ) d i s c ou n t r e c e iv ed , o n c r u d e o il p u r c h a s e d fr o m

ONGC, ha s been adju sted a gainst ‘Raw Mater ial Cost ’.

5 . In pr inciple approval of Government of India for Budgetary Support amount ing to Rs.5 ,563.13 crores (2008-

09: Oil Bonds for Rs. 14,692.77 crores), ha s b een received an d th e sa me have been accounted un der ‘Recovery

un der Sub s i dy Schemes ’.

6 . Significant Accoun ting Policies an d a ddit iona l informa tion:

The s igni fican t accoun t ing pol icies h ave been set out in th e notes to a ccounts of the pa rent compa ny, Hindu stan

Petroleum Corporation Limited. Additional information not impacted by consolidation is also set out in the notes to

the accounts of the parent company.

As far as possible, the consolidated financial statements are prepared using uniform accounting policies for the

t rans act ions a nd other events in s imi lar ci rcum stan ces and a re presented in the sa me ma nn er as the compan y’s

separate f inancial s tatements .

7 . Figures per tain ing to the Subs idiary Compa nies/ J oint Ventures have been reclassi fied , wherever necessary , to conform

to the Compa ny’s Finan cial Statemen ts .



84



8 . Rel a t ed Par t y d i sc l osu re :

Rs. / Crores

P a r t i c u l a r s 2 0 0 9 -1 0 2 0 0 8 - 0 9Sal es 2 7 . 8 7 1 8 . 4 9P u r c h a s e s 3 . 7 1 2 . 4 8D i v i d e n d 0 . 3 5 0 . 3 5Inves t men t i n Equ i t y - 2 . 0 4Advance t owards equ i t y 6 . 8 3 5 . 1 6Ot her Advances 0 . 0 2 2 . 0 4Serv ices r en dered / (r ece i ved ) 0 . 1 5 -O t h e r s 1 . 6 1 1 . 1 0Serv i ces r ece i ved 3 . 0 0 2 . 5 2The names o f par t i es a r e as fo l l ows :J o i n t V e n t u r e C o m p a n i e s :

Mit tal Energy Investment Pte. Ltd . (MEI) , Oi l and Natural Gas Corporat ion Limi ted, Gas Author i ty of India

Limited, ONGC Mangalore Petrochemicals Limited, Shell MRPL Aviation Fuels & Services Pvt. Limited, Mangalam

Retail Services Limited, Mangalore Special Economic Zone, Total Gas Power India (TGPI), France, Total ProjectIndia Private Limited, Hydrocarb on Resou rces Developmen t Pvt. Compa ny Ltd., Ja i Prakas h Associates Limited.,

Trenergy, Malaysia, Valdel Oil & Gas Private Limited, COLASIE SA, France, COLAS SA, FranceK e y M a n a g e m e n t P e r s o n n e l :

S h r i A r u n B a l a k r i s h n a n , C h a i r m a n a n d M a n a g i n g D i r e c t o r

Shr i S. Roy Choudhury, Director – Market ing

Shri V. Viziasaradhi , Di rector – Human Resources

Shr i B. Mukher jee , Di rector – Finance

Shri K. Mural i , Di rector – Ref iner ies

Shr i P rabh Das , Ch i ef Execu t i ve Of f i cer

Shr i M. R. Pasr i ja, Managing Director (w.e. f . 16 .03.2009)

Shr i P . P . Nadkarn i , Manag i ng Di rec t o r

Shr i . U. K. Bas u, Mana ging Director

Shr i . A. V. Sarma, Managing Director ( t i l l 09 .06.2009)

Shr i . S . S reen i vasu l u , Manag i ng Di rec t o r (w .e . f . 09 .06 .2009)

Shr i . Dushyan t Shah , Di rec t o r – Commerc i a l

S h r i . V . A n a n t h a r a m a n , M a n a g e r

Shr i . Ran j an Chakrabor t y , Manager ( t i l l 31 .08 .2009)

Shr i . San j eev Mal ho t r a , Manager (w .e . f . 01 .09 .2009)Shr i Ku l deep S i ngh Rekh i , Manager

Shr i Sanjay Grover , Manager

Shr i B. Rajesh, Chief Execut ive Off icer

Detai l s of remunerat ion to d i rectors are g iven in Note 12 (E) of Consol idated Notes to Accounts

9 . Addi t ional provision for taxat ion amount ing to Rs. 57.51 crores has been created based on the Assessment / Appel l a t e Order s i n r espec t o f ear l i e r year s r ece i ved du r i ng t he year .

1 0 . During the cu rren t year, investm ents in “6.35% Oil Marketing Compan ies’ GOI Special Bond s 202 4" am oun tingt o R s . 4 6 0 3 . 7 3 C r o r e s h a v e b e e n r e c l a s s i fi e d fr o m ‘L on g T e r m I n v e s t m e n t s ’ t o ‘C u r r e n t I n v e s t m e n t s ’.Consequent ly , an amount of Rs. 756.88 Crores has been provided in the books of accounts towards diminut ioni n t he va l ue fo r t h i s i nves t men t .

1 1 . Empl oyee Benef i t s :

A. Liabil ity towards long term defined employee benefi t s is determined on actua r ial valua t ion by independ entactuar ies at the year end by using Projected Uni t Credi t method. However , in case of few joint ventureen t i t i es , t he l i ab i l i t y was r ecogn i zed based on bes t es t i mat es .

B . In r e s p e c t o f P r ovid e n t F u n d , t h e c o n t r ib u t i on f or t h e p e r io d is r e c og n iz ed a s e x p en s e a n d c h a r g e d t oProf i t & Loss account .

C . S h o r t te r m e m p lo ye e b en e fit s a r e r e c og n iz ed a s a n e xp e n s e a t a n u n d i s c ou n t e d a m o u n t i n t h e P r ofitand Loss Accoun t o f t he year i n wh i ch t he r e l a t ed serv i ces a re r endered .

D . S u m m a r iz ed d is c lo s u r e on d e fin e d b e n e fit p la n s i s g ive n h e r e u n d e r :

(Rs. in Crores)

P a r t i c u la r s 0 1 . 0 4 . 0 9 3 1 .0 3 .1 0 Ch a n ge

Defin ed Ben efit Ob liga t ion (DBO) 6 7 3 . 5 2 9 2 5 . 0 8 2 5 1 . 5 7

Fa ir va lu e of As s et s 3 3 8 . 8 9 4 9 6 . 4 2 1 5 7 . 5 3

Am ou n t r ecogn ized in t h e Ba la n ce Sh eet 4 3 1 . 1 1

Tot a l exp en s es r ecogn ized in Pr ofit a n d Los s Accou n t 2 2 6 . 1 2



85



R s . / C r or e s

2 0 0 9 - 1 0 2 0 0 8 - 0 9

1 2 A. E s tim a t ed a m ou n t of c on t ra c ts r em a in in g t o b e e xe cu t ed on C a pit a l

Account not provided for 6 , 2 9 2 . 0 2 6 , 2 2 7 . 1 3

B . No p r ovis i on h a s b e e n m a d e in t h e a c c o u n t s i n r es p e c t of t h e fo llo win g

disputed dema nds / claims s ince they are su bject to appea ls/ represen tat ions

and a substant ial por t ion thereof i s recoverable f rom Pool Account :

i . In com e Ta x 4 . 3 5 6 . 0 5

i i . S a le s Ta x/ Oct r oi 2 , 4 2 2 . 6 0 2 , 6 6 1 . 5 6

i i i . E xcis e/ Cu s tom s 2 7 5 . 2 8 3 6 2 . 2 1

i v. La n d Re n t a ls & Lic en c e F ee s 7 1 . 2 9 8 1 . 9 1

v. O t h e r s 6 0 . 5 6 1 7 5 . 3 6

2 , 8 3 4 . 0 7 3 , 2 8 7 . 0 9

C C on t in g en t Lia b ilit ie s n o t p ro vid e d fo r in r e s p e ct o f

appea l s f i l ed aga i ns t t he Corpora t i on *

i . In com e Ta x 0 . 1 3 0 . 0 0

i i . S a le s Ta x/ Oct r oi 5 . 4 2 9 0 . 1 1

i i i . E xcis e/ Cu s tom s 3 6 . 1 8 5 5 . 7 6

i v. E m p lo ye e B en e fit s / D em a n d s (t o t h e e xt e n t q u a n t ifia b le ) 1 3 1 . 0 9 1 1 2 . 3 9

v . Gu a r an t ee s on b eh a lf of ot he rs 6 1 . 0 1 2 1 1 . 0 8

v i . C la i m s a ga i n s t th e Co r p or a t io n n ot a c k n ow le d ge d a s d eb t s 2 0 3 . 2 6 2 4 7 . 1 5

v ii E n h a n c e m e n t of C om p e n s a t io n a g a in s t la n d a c qu i r ed 2 0 . 9 3 1 9 . 3 6

v ii i. S e r vic e Ta x 0 . 0 8 0 . 0 8

i x . Na vi Mu m b a i M u n ic ip a l Co rp or a t io n C es s 0 . 0 2 0 . 0 2

i x . O t h e r s 4 5 4 . 3 8 9 5 . 1 2

9 1 2 . 4 9 8 3 1 . 0 7

* The Compan y has n o t cons i dered t hose d ispu t ed deman ds / c la i ms as

Contingent Liabil i t ies, the outflow of resources for which would be remote

D . Pa ym en t to Au d it or s:

i . Au d it fees 0 . 3 5 0 . 2 8

i i . Ta x a u dit fees 0 . 0 1 0 . 0 0

i i i . Ot h er s er vic es 0 . 0 4 0 . 0 2

iv . Re im b u r s em e n t of e xp en s es 0 . 1 6 0 . 1 2

E . Ma n a ger ia l Rem u n er at ion :

i . S ala ry a n d Allowa n ces 2 . 1 6 1 . 1 2

i i . C on t r ib u t io n to P ro vid e n t F u n d a n d ot h e r fu n d s 0 . 1 3 0 . 0 6

i ii . Pe n s ion a n d G ra t u it y 0 . 0 2 0 . 0 2

iv . Ot her b en efit s 0 . 5 8 0 . 6 6

F . D efe r r ed Ta x As s e t s / (Lia b ilit ie s )

ar i s ing due to t iming di f ferences comprises of :

Defer red Tax Asse t s

Provision for Employee Benef i t s 2 1 1 . 8 4 2 1 9 . 1 9

O t h e r s 2 9 3 . 9 7 1 3 4 . 2 9

To t a l (A) 5 0 5 .8 1 3 5 3 . 4 8

D e f e r r e d T a x L i a b i l i t i e s

Deprec i a t i on 2 , 4 0 7 . 5 6 2 , 0 3 0 . 3 9

O t h e r s 1 0 . 5 6 9 . 5 2

To t a l (B) 2 , 4 1 8 . 1 2 2 , 0 3 9 . 9 1

De fe r r e d T a x As s e t / (Lia b i l i t y ) (1 ,9 1 2 .3 1 ) (1 ,6 8 6 .4 3 )



86



G. Informat ion regarding Pr imary Segment Repor t ing as per AS-17 for the year ended March 31, 2010 i s as under :

2 0 0 9 - 1 0 2 0 0 8 - 0 9

Down st ream Explora t ion Tot al Down stream Explora tion Total

Pet roleu m & Pr od uc tion Pe tr ole u m & Pr od u ct io n

Revenue

Extern a l Reven u e 1 1 2 ,4 4 8 .8 5 - 1 1 2 ,4 4 8 .8 5 1 2 9 ,3 7 8 .7 9 - 1 2 9 ,3 7 8 .7 9

In ter -s egm en t Reven u e - - - -

Tot a l Re ven u e 11 2 ,44 8 .85 - 1 12 ,4 48 .8 5 129 ,37 8 .79 - 12 9 ,37 8 .79

R e s u l t

Segm en t Res u lt s 3 ,5 0 7 .9 5 (2 5 6 .9 8 ) 3 ,2 5 0 .9 7 2 ,5 2 1 .5 9 (7 1 .9 6 ) 2 ,4 4 9 .6 3

Less: Una llocated Expens es

Net of u n a lloca ted In com e - - - - - -

Op e r a t in g Pr o fit 3 ,507 .95 (2 5 6 .9 8 ) 3 ,2 50 .97 2 ,521 .59 (7 1 .9 6 ) 2 ,449 .63

Less:

In teres t Exp en d itu re 93 2 .1 3 2 ,1 1 2 .3 3

Provis ion for dim u nition in investm en ts 70 3 .7 3 (7 5 .28 )

Los s on Sa le of In ves tm en ts 5 6 .7 5 1 .2 7Add:

Interest/ Dividend

(In clu d in g Sh a re of p r ofit from PII) 8 5 7 .2 7 5 6 2 .2 0

Pr ior yea r (Expen s es ) / In com e 3 .8 6 0 .4 9

Profit on Sa le of In ves tm en ts - 3 7 .8 3

Pr ofit be fo re Ta x 2 ,4 19 .49 1 ,011 .84

Less: Taxes (inclu ding Deferred tax / FBT) 9 4 4 .3 4 2 5 4 .5 2

Pr ofit a ft e r Ta x 1 ,4 75 .15 7 5 7 .32

Other In fo rmat ion

Segm en t As s ets 4 6 ,48 3 .8 7 33 .2 6 4 6 ,5 77 .1 3 35 ,7 2 1 .2 2 4 1 .5 5 35 ,7 6 2 .77

Un a lloca ted Corpora te As s ets 1 0 ,7 03 .7 4 13 ,5 9 8 .11

Tot a l As s e t s 5 7 ,2 2 0 .8 7 4 9 ,3 6 0 .8 8

Segm en t Lia b ilit ies 1 6 ,9 3 9 .6 1 4 1 4 .7 9 1 7 ,3 5 4 .4 0 1 1 ,6 2 9 .3 3 1 6 7 .4 6 1 1 ,7 9 7 .3 9

Un a lloca ted Corp ora te Lia b ilit ies 2 7 ,2 5 1 .6 4 2 6 ,4 1 7 .9 1

Tot a l Lia b ili t ie s 44 ,606 .04 3 8 ,21 5 .30Ca pita l Expen d itu re 3 ,1 0 6 .3 2 3 3 .2 6 3 ,1 3 9 .5 8 3 ,5 7 0 .8 7 4 1 .5 5 3 ,6 1 2 .4 2

Deprecia tion 1 ,2 5 4 .1 9 1 ,2 5 4 .1 9 1 ,0 6 6 .1 0 1 ,0 6 6 .1 0

Non cash expenses exclu ding depreciation 5 .2 7

N o t e s :

1 . Th e G r ou p i s e n ga ge d in t h e fo llo win g b u s in e s s s e gm e n t s :

a ) Downs t r eam i. e . Refin i ng and Marketing of Pe tro leum Product s

b) E xp lo ra t io n a n d P r od u c tio n o f H yd r oc a r bo n s

Segments have been ident i f ied taking in to account the nature of act iv i t ies and the nature of r i sks and returns.

2 . S e gm e n t Re ve n u e c om p r is e s t h e fo llo win g :

a ) Tu r n o ve r (Ne t o f E xc is e D u t ie s )

b ) S u b s id y fr om G ove rn m e n t of In d ia

c ) Ne t Cla im / (s u r re n de r t o) PP AC / G O I

d) Ot her income (exc lud i ng in t e res t income, d ividend i ncome an d i nves t men t i ncome)

3 . Th e re a re n o ge ogr a ph ic a l s e gm e n ts .

13. Previous year’s figures have been regrouped/ reclass ified wherever necessary .

R s . / C r or e s



87


A. C as h F lo w F r om O p e r at i n g Ac t i vi t ie s

Net Profit before Tax & Extraord inary i tem s 2 , 4 1 9 . 4 8 1,011.84

Adjustments for :

Depreciation / Amortisa tion 1 , 2 5 0 . 5 4 1,066.06

Deprec i a t i on (Pr i o r Per i od ) 3 . 6 7 0 . 0 4

Mi sce l l aneous Expend i t u re wr i t t en o f f 1 . 5 3 6 . 0 7

Raw Mat er i a l s P r i o r Per i od ( 4 . 7 0 ) (0 .16 )

Loss on Sa le/ Wri te off of Fixed Ass ets / CWIP ( 1 . 5 2 ) 7 . 4 9

Amort i sat ion of capi tal grant ( 0 . 1 9 ) (0 .19 )

Spares wr i t t en o f f 1 . 8 2 1 . 8 8

Prov i s i on fo r d i mi nu t i on i n i nves t men t s 7 0 3 . 7 3 (75 .28 )

Borrowing Cost 9 3 2 . 1 3 2 , 1 1 2 . 3 3

Provision for Doubtful Receivables wri t ten back - 1 . 2 3

Provision for Doubtful Debts 2 3 . 3 7 1 3 . 4 0

I n t e r e s t I n c o m e ( 7 0 7 . 9 0 ) (417 .74 )

Share of Profit from PII ( 0 . 6 2 ) (0 .82 )

Di v i dend Recei ved ( 1 5 . 5 8 ) (7 .05 )

(Profi t )/ Loss on s ale of Oil bond s 5 6 . 7 5 (36 .56 )

Opera ting Profit before Working Capital Ch an ges 4 , 6 6 2 . 5 2 3,682.54

(Increas e) / Decreas e in Working Capital :

Trade Receivables (234 .94 ) (397.64)

Other Receivables (773 .13 ) 784 .63

Inventories (3 ,985 .83 ) 3,525.02

Trade and other Payables 5 , 5 1 4 . 1 8 (1 ,202.07)

5 2 0 . 2 8 2,709.94

Cash generated f rom operat ions 5 , 1 8 2 . 8 0 6,392.48

Direct Taxes / FBT refund / (paid) - Net (491 .68 ) (215.32)

Cash Flow before extraordinary i tems 4 , 6 9 1 . 1 2 6,177.16

Extraordina ry i tems - -

Ne t Ca s h fr o m o p e r a t in g a c t iv it ie s (A) 4 ,6 9 1 .1 2 6 , 1 7 7 . 1 6

B. C as h F lo w F r om I n ve s t i n g Ac t i vi t ie s

Pur cha se of Fixed Ass ets (incl. Capital Work in Progress / excluding inter est cap italised) (7 , 8 2 5 . 8 2 ) (3 ,073 .39 )

Sale of Fixed Assets ( 3 7 . 6 8 ) (76 .30 )

Purchase of Investment ( Including share appl icat ion money pending al lo tment /

Advance towards Equity) (3 ,075 .36 ) (16,124.59)

Misc Expenditure incurred by HMEL (1 .42 ) (2.78)

Sale Proceeds of Oil bond s 5 , 2 1 3 . 5 2 9,275.49

Interest received 7 4 9 . 2 2 284 .25

Dividend Received 1 5 . 5 8 7.05

Share of profit from PII 0 . 6 2 0.82

Ne t Ca sh fr om in ve s t in g a c t ivit ie s ( B ) (4 ,9 6 1 .3 4 ) (9 ,709.45)

Rs. / Crores

2 0 0 9 - 1 0 2008-09

Consolidated Cash Flow Statement for the year ended 31st March, 2010



88


Consolidated Cash Flow Statement for the year ended 31st March, 2010


ARUN BALAKRISHNAN


B. MUKHERJE E

Di rec t o r -F i nance



Place : New Delhi

Date : 26th May, 2010



F i r m N o . 1 0 9 2 0 8 w

G. SANKAR

P a r t n e r




Fi rm No . 000971c

OM PRAKASH AGARWAL

P a r t n e r


C . C a sh F lo w F r om F i n a n c in g Ac t i vi t ie s

Proceeds from Calls in Arrear(Net) - 1.57

Sha re a ppl icat ion money received/ (paid) 1 3 7 . 4 5 1.24

Long term loans raised 2 , 0 7 6 . 3 8 1,245.59

Fixed deposi t s / debentu res repaid (0 .65 ) (0.67)

Short term loans raised / (repaid) (1 ,618 .86 ) 5,720.68

Interest Paid on Loans (399 .83 ) (2 ,586.19)

Dividend paid (including dividend distribution tax) (215 .00 ) (162.06)

Ne t Ca s h fr om fin a n c in g a c t ivit ie s ( C ) (2 0 .5 1 ) 4,220.16

Ne t In cr e as e / (De c re a se ) in Ca sh an d Ca sh Equ iva le n t s (A + B + C) (2 9 0 .7 2 ) 6 8 7 . 8 7

C a s h a n d C a s h E q u i v a l e n t s A s O n 1 s t A p r i l ( O p e n i n g ) :Cash / Cheques on Hand 6 . 3 2 7.41

Balances wi th Scheduled Banks


- Ot her s 6 5 7 . 4 5 4 7 8 . 8 5


1 , 2 7 6 . 2 7 7 9 3 . 3 9


9 6 7 . 7 8 2 7 9 . 9 1

C a s h a n d C a s h E q u i v a l e n t s a s o n 3 1 s t M a r c h ( C l o s i n g ) :

Cash / Cheques on Hand 7 . 0 7 6.32


- On Current Accounts 2 7 3 . 9 2 6 1 2 . 3 9- Ot her s 5 2 1 . 8 5 6 5 7 . 4 5


8 0 2 . 9 5 1 , 2 7 6 . 2 7


6 7 7 . 0 7 9 6 7 . 7 8

Ne t In c r e a s e / (De c r e a s e ) in Ca s h a n d Ca s h E qu iva le n t s (2 9 0 . 7 2 ) 6 8 7 . 8 7

Not e : P revi ous year ’s f igu res ha ve been r eg roup ed / r ec l ass i fi ed wherever necessa ry .

Rs. / Crores

2 0 0 9 - 1 0 2008-09




89

CREDA -HPCL BIOFUEL LIMITED

(Su bsid iar y of HPCL)




90

Auditors’ Report

TO THE MEMBERS OF CREDA - HPCL BIOFUELS LIMITED

1. We have audited the at ta ched Balance Sheet of CREDA - HPCL BIOFUEL LIMITED as at 31 st March,2010, the Profi t and Loss Account and also the Cash Flow Statement for the year ended on that the

an nexed there to . These f ina ncia l s ta temen ts a re the r espons ib il ity of the compa ny’s m an agement .

Our responsibil i ty is to express an opinion on these financial statements based on our audit .

2 . We condu c t ed ou r a ud i t in a ccordance w ith au d it ing s t anda rds gene ra l ly accep t ed i n Ind ia . Those

Standards requi re tha t we p lan perform the audi t to obta in reasonable assurance about whether the

financial statements are free of material misstatement. An audit includes examining, on test basis,

evidence support ing the amounts and disclosures in the financial statements. An audit also includes

assessing the accounting principles used and significant est imates made by management, as well as

evaluat ing the overall finan cial stat emen t pres entat ion. We believe that ou r a ud it provides a rea sona ble

basis of our opinion.

3 . As requi red by the Compan ies (Audi tors’ Report ) Order 2003 i ssued by the Cent ra l Governm ent of

India in term s of sub -section (4A) of section 227 of the Comp an ies Act, 1956 an d on the b as is of su ch

checks of books and records of the company as we considered appropria te and according to theinformation and explanations given to us, we annex hereto a statement on the matters specified in

paragraph 4 an d 5 of the sa id Order .

4 . Furth er to our comm ents in the Ann exure referred to in para graph 3 above, we report tha t : -

a . We have obta ined a ll the informat ion an d explana t ions which to the best of our knowledge and

belief were necessary for the purpose of our audit .

b . In our opin ion , proper books of accoun t as requi red by law have been kept by the Compan y so far

as i t appears from our examination of such books.

c . The Balance Sheet , Profit and Loss Accoun t and Cash Flow Sta tement referred to in th e report a re

in agreement with the books of account.

d . In our opin ion , the Balance Sheet , Profit and Loss Accoun t and Cash Flow Sta tement , dealt with

by th is report com ply with Accounting Sta nd ards as referred to in Section 211(3)(c) of the Compa nies

Act, 195 6.

e . In term s of not ifica t ion No. G.S.R. 829(E) dated 21 .10 .2003 i ssu ed by the Minis t ry of Finan ce ,

Department of Company Affairs, Government of India, clause (g) of sub-section (I) of section 274

of the Companies Act, 1956 is not applicable to the Government Company.

f. In our opin ion an d to the best of our informat ion an d according to explana t ion given to us the

Balance Sheet , Profi t and Loss Account and Cash Flow Statement read together with Significant

Accounting Policies and Notes to the Accounts give the information required by the Companies

Act, 1956 in th e ma nn er so required exclud ing disclosu re of Accounting Stan dar d 3 a nd give a tru e

and fair view in conformity with the accounting principles generally accepted in India:-

i ) In th e case of Balance Sheet of the Sta te of Affa i rs of the Compa ny as a t 31s t March , 2010.

i i ) In th e case of Profit and Loss Accoun t of the Loss for the year ended on tha t da te , and

i ii ) In th e case of Cash Flow Sta tement of the Cash Flows for the year ended on tha t da te .

For AGRAWAL & PANSARI


Fi rm No . 003350C

R.K. Agrawal

P a r t n e r

Pla c e : Ra ip u r Mem b er s h ip No. 0 5 3 3 3 8

Da t e : 22 nd May, 2010




91

Annexure to the Auditors’ Report to the Members of Creda-HPCL Biofuel Limited.

(Referred to in paragraph 3 of our audit report of even date:

(i ) (a ) Th e C om p a n y h a s m a i n t ain e d p r op er r e cor d s s h o win g fu l l p a r tic u la r s , in c lu d in g qu a n t it a t ive

detai ls and si tuation of fixed assets.

(b) According to the informat ion and explana t ion g iven to us a nd a s cer t ified to us , the Mana gement

during the year physically verified the assets. In our opinion, the frequency of such physical

verificat ion is reasonable having regard to the size of company and nature of i ts assets. No

material discrepancies are found on such verificat ion as compared to the available records.

(c ) Ac c or d i n g t o t h e in f or m a t i on a n d e xp l a n a t i on g ive n t o u s a n d a s c e r t ifi ed t o u s b y t h e

Management, there was no substantial disposal of fixed assets during the year.

(i i) The na ture of Compa ny does n ot requi re it to hold inventories and as s uch c lau se 4(ii) o f the Companies

(Au ditor ’s Rep ort) Order , 20 03 (‘Ord er’) is n ot ap plicab le.

(i ii ) (a ) The company has no t gran t ed any loans , secu red or unsecu red t o compan ies , firms o r o the r

part ies covered in the register maintained under Section 301 of the Companies Act, 1956 and

accordingly, the provision of clause (i i i ) (b), (c) and (d) of paragraph 4 of the Order are not

applicable to the company for the current year.

(b ) The Company has n o t taken any loans , secu red o r unsecu red from compan ies , firms o r o the r

part ies covered in the register maintained under section 301 of the Companies Act, 1956 and

accordingly, the provision of clause (iii) (f) and (g) of paragraph 4 of the Order are not applicable

to the company for the current year.

(iv) In our opin ion , an d according to the informa t ion an d explana t ion g iven to us , th ere are reasonableinterna l contr ol procedur es for the pu rcha se of fixed as sets & goods an d for sale of goods & services,

which in our opinion needs to be strengthened, to be commensurate with the size of the Company

and the n atur e of it s bu siness . Further , du ring the course of our au di t we have neither come across

nor h ave been inform ed of any significan t continu ing fai lur e to correct ma jor weakn ess in th e aforesa id

in ternal cont ro l procedures .

(v) As informed by the man agement an d according to the informat ion an d explana t ion given to us , the

contract or arrangements the part iculars of which need to be entered in the register maintained in

pu rsu an ce of Section 30 1 of the Compa nies Act, 1956 an d pa ragraph (v)(b) of the order is n ot applicable.

(v i) The Company ha s n ot accepted any deposit s f rom the pu blic with in the m eaning of the Rule 2(b) of

the Companies (Acceptance of Deposits) Rules, 1975.

(vii) According to the informa t ion an d explana t ion g iven to u s b y the m ana gement , in ternal au di t of the

company is carried out during the year commensurate with i ts size and nature of i ts business.

(viii) We are informed that the Cent ra l Government has not prescribed ma in tenan ce of cost records u nder

clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956.

(i x) (a ) Acco rding t o t he in fo rma t ion and exp lana t i on g iven t o u s a nd on t he bas is o f ou r examina t ion




92

of the books of accoun t, the compan y is regular in deposit ing un dispu ted sta tut ory du es includ ing

Provident Fund, Fringe Benefi t Tax, Income-Tax, Service-Tax, Cess and any Other Statutorydues applicable to i t with the appropriate authori t ies.

(b ) Accord ing t o in forma t ion and exp lana t ion given t o u s , no und i spu t ed ma te r i a l am oun t s i n

respect of Provident fund, Income Tax, Fringe Benefi t Tax , Cess and Other Sta tu tory dues

applicable to the company was in arrears as of March 31, 2010 for period of more than six

months from the date they became payable.

(c) According to the informat ion and explanat ion g iven to us , there are no d ispu ted amounts tha t

ha ve not been deposited with appr opriate auth orit ies on accoun t of Income Tax/ Fringe Benefit

Tax/ Service Tax/ Cess .

(x ) The Company has accumula t ed lo sses o f Rs . 80 ,92 ,680 / - a t March 31 , 2010 and has i ncu r red cash

loss es of Rs. 44,16,579/ - during the finan cial year ended on th at date.

(x i ) According to the informat ion and explana t ion g iven to u s , an d on th e basis of our examinat ion of the

books of account, the company has not defaulted in repayment of dues to any financial inst i tut ion or

banks. The company does not have any borrowings by way of debentures.

(xii) According to the information an d explan ation given to us , and on th e basis of our exam ination of the

books of accoun t, the compa ny ha s n ot gran ted loan s an d advan ces on the ba sis of secur i ty by way of

p ledge of shares , debentures and o ther securi t ies .

(xiii) In our opinion a nd according to informa tion a nd explana tions given to u s, the n atu re of act ivi t ies of

the company does not at tract any special statute applicable to chit fund, nidhi , mutual benefi t or a

society. Accordingly clau se 4(xiii) of the Or der is n ot a pplicable.

(x iv) (a) According to the informat ion and explana t ion given to us and on the basis of our examinat ion

of the books of accoun t generally, the compa ny ha s n ot dealt / t rad ed in respect of the s ecuri t ies,

debentures and o ther securi t ies during the year .

(b ) In o u r o p in i on a n d a c co r d in g t o in f or m a t i on a n d e x p la n a t i on s give n t o u s , n o s e cu r i t ie s ,

debentures and o ther securi t ies have been held by the Company.

(xv) In our opin ion a nd according to informat ion and explanat ion g iven to u s , the compan y has not g iven

any guarantees for loans taken by others from bank or financial inst i tut ions.

(xvi) To the best of ou r kn owledge and belief an d according to the inform ation an d explan ation given to u s,

in our opinion, no term loans availed by the Company.

(xvii) According to informa tion an d explanat ion given to us an d ba sed on the overall examinat ion of the

Balance Sheet of the Company, we report that fund raised on short term basis have, prima facie, not

been used for long-term investment.





93

(xviii)As inform ed by the m an agement an d ba sed on our overall examination of the Books of accoun ts of

the Compan y, the compa ny has not ma de an y preferential allotmen t of sh ares to par t ies an d compan iescovered in the register maintained under Section 301 of the Companies Act, 1956 during the year.

(x ix) No debentures an d bonds issu ed are gua ranteed by the compa ny.

(xx) The compa ny has n ot ra ised any money by public issu es during the year .

(xxi) Based on the au dit procedures p erformed an d according to the informa tion an d explan ation given to

us by the ma nagement , we report tha t no fraud on or by the company has been not iced or reported

during the course of our audit .

For AGRAWAL & PANSARI


Fi rm No . 003350C

R.K. Agrawal

P a r t n e r

P la c e : Ra ip u r Mem b er s h ip No. 0 5 3 3 3 8

Da t e : 22 nd May, 2010





94

Balance Sheet as at 31st March, 2010

A m o u n t i n R s .

S c h e d u le 2 0 0 9 -1 0 2 0 0 8 - 0 9

(14 .10 .2008 t o

3 1 . 0 3 . 2 0 0 9 )

S h a r e h o l d e r s ’ F u n d s

C a p i t a l A 1 0 5 , 7 6 9 ,2 3 0 1 0 5 , 7 6 9 , 2 3 0

R e s e r v e s a n d S u r p l u s B - -

L o a n f u n d s

Secured Loan C - -

U n s e c u r e d L o a n D - -

De fe r r e d Ta x Lia b i l i t y (Ne t ) E 4 7 , 0 0 8 1 3 , 8 5 8

T o t a l 1 0 5 ,8 1 6 ,2 3 8 1 0 5 , 7 8 3 , 0 8 8

A p p l i c a t i o n o f F u n d s

F i x e d A s s e t sGross Block F 9 8 3 ,3 1 7 3 0 2 , 0 9 1

Less : Deprec ia t i on / Amor t i sa t i on 5 2 , 2 9 2 7 , 8 8 5

Net Block 9 3 1 , 0 2 5 2 9 4 , 2 0 6

Cap i t a l Work i n Prog ress - -

9 3 1 , 0 2 5 2 9 4 , 2 0 6

In v e s t m e n t s G - -

C u r r e n t A s s e t s , L o a n s a n d A d v a n c e s

I n v e n t o r i e s H - -

Sundry Deb t o r s I - -

C a s h a n d B a n k B a l a n c e s J 6 1 ,7 1 3 ,2 6 1 6 7 , 1 2 8 , 0 5 2

Loans and Advances K 2 7 , 6 0 0 , 3 7 5 2 7 , 5 1 8 , 2 9 0

8 9 , 3 1 3 , 6 3 6 9 4 , 6 4 6 , 3 4 2L e s s : C u r r e n t L i a b i l i t i e s a n d P r o v i s i o n s

Liabi l i t ies L 1 ,0 3 3 ,8 7 6 1 , 2 4 7 , 1 8 7

P r o v i s i o n s M 4 ,1 9 3 2 2 , 9 6 9

1 , 0 3 8 , 0 6 9 1 , 2 7 0 , 1 5 6

Ne t Cu r r e n t As s e t s 8 8 ,2 7 5 ,5 6 7 9 3 , 3 7 6 , 1 8 6

M i s c e l l a n e o u s E x p e n d i t u r e N 8 ,5 1 6 ,9 6 6 9 , 5 8 1 , 5 8 7

Pr o fit & Lo s s Ac c o u n t Ba la n c e 8 , 0 9 2 , 6 8 0 2 , 5 3 1 , 1 0 9

T o t a l 1 0 5 ,8 1 6 ,2 3 8 1 0 5 , 7 8 3 , 0 8 8

B. Mukher j ee

D i r e c t o r

Shru t i Bhagat


For and on behal f of the Board

S . Roy Choudhury

C h a i r m a n

K . S . R e k h i

M a n a g e r

As per our repor t of Even Date

For Agrawal & Pansar i


Fi rm No . 003350c

R.K. Agrawal

P a r t n e r

M e m b e r s h i p N o . 0 5 3 3 3 8

Pla ce : Ra ip u r

Da t e : 22 nd May, 2010

Schedules M to W form an in tegral par t of the Prof i t and Loss Account

Notes at tached to and forming par t of the Statement of Accounts X




95

Profit and Loss Account for the year ended 31 March, 2010


S c h e d u le 2 0 0 9 -1 0 2 0 0 8 - 0 9

(14 .10 .2008 t o

3 1 . 0 3 . 2 0 0 9 )

I n c o m e

Sal es / Income from Opera t i ons O - -

O t h e r I n c o m e P 3 ,4 8 7 , 4 4 0 8 8 , 7 6 7

T o t a l 3 ,4 8 7 , 4 4 0 8 8 , 7 6 7

E x p e n d i t u r e

(Increa se) / Decrease i n s t ock o f F in i shed Goods Q - -

Pack i ng Mat er i a l s Consumed R - -

O p e r a t i n g E x p e n s e s S 2 4 6 , 9 0 5 -

Ad m i n i s t r a t i ve E x p e n s e s T 3 ,2 0 3 ,1 2 3 6 2 7 , 3 8 7

Sel l i ng and Di s t r i bu t i on Expenses U - -

B a n k C h a r g e s V 4 5 0 3 6 5

Cost of Employees W 4 ,4 5 3 ,5 4 0 8 8 8 , 8 0 1

T o t a l 7 ,9 0 4 , 0 1 9 1 ,5 1 6 ,5 5 3

P r o fi t / (Lo s s ) b e fo r e D e p r e c i a t i o n a n d T a x (4 ,4 1 6 ,5 7 9 ) (1 ,4 2 7 ,7 8 6 )

Deprec i a t i on F 4 4 ,4 0 7 7 ,8 8 5

M i s c e l l a n e o u s E x p e n d i t u r e N 1 ,0 6 4 , 6 2 1 1 ,0 6 4 ,6 2 1

P r o f it / (L o s s ) be f o r e T a x (5 ,5 2 5 ,6 0 6 ) (2 ,5 0 0 ,2 9 2 )

Provision for Tax

- Cu r ren t Ta x - -

- Deferred Tax Charge E 3 3 ,1 5 0 1 3 , 8 5 8

- In r es p ect of ea r lier yea r s - -

- Fr in ge Ben efit Ta x 2 ,8 1 5 1 6 , 9 5 9

P r o f i t / (L o s s ) a f t e r T a x (5 ,5 6 1 ,5 7 1 ) (2 ,5 3 1 ,1 0 9 )

Ba la n ce b rou gh t forwa rd from p reviou s yea r (2 ,5 3 1 ,1 0 9 ) -Ba la n ce a va ila b le for a p p rop r ia t ion - -

A p p r o p r i a t i o n

Pr op os e d Divid e n d - -

Ta x on Pr op os ed Divid e n d - -

Tr a n s fer t o Gen er a l Res er ve - -

Ba la n ce ca r r ied t o Ba la n ce Sh eet (8 ,0 9 2 ,6 8 0 ) (2 ,5 3 1 ,1 0 9 )

T o t a l (8 ,0 9 2 ,6 8 0 ) (2 ,5 3 1 ,1 0 9 )

Nu m ber of E qu ity s h a res of Rs . 10 ea ch 1 0 ,5 7 6 ,9 2 3 1 0 ,5 7 6 ,9 2 3

E a rn in gs p er Sh a re - Ba s ic a n d Dilu t ed (0 .7 7 ) (0 .2 4 )

B . Mukher j ee

D i r e c t o r

Shru t i Bhagat



S . Roy Choudhury

C h a i r m a n

K . S . R e k h i

M a n a g e r




Fi rm No . 003350c

R.K. Agrawal

P a r t n e r

M e m b e r s h i p N o . 0 5 3 3 3 8

Pla ce : Ra ip u r

Da te : 22 nd May, 2010

Schedules M to W form an in tegral par t of the Prof i t and Loss Account

Notes at tached to and forming par t of the Statement of Accounts X




96

SCHEDULE A - CAPITAL

A u t h o r i s e d

2 0 ,0 0 ,0 0 ,0 0 0 equ it y s h a res of Rs .1 0 ea ch . 2 ,0 0 0 ,0 0 0 ,0 0 0 2 ,0 0 0 ,0 0 0 ,0 0 0

I ssued , Subscr i bed and Fu l l y Pa i d up

1 ,0 5 ,7 6 ,9 2 3 equ it y s h a r es of Rs .1 0 ea ch 1 0 5 ,7 6 9 ,2 3 0 1 0 5 ,7 6 9 ,2 3 0

SCHEDULE B - RESERVES AND SURPLUS

Ca p ita l Res erve (An y s u bs id y or gra n t if r eceived from Govt .) - -

Ge n er a l Re s e r ve - -

Res ea r ch & Develop m en t Res er ve - -

- -

SCHEDULE C - SECURED LOANLoa n s from S ch ed u led Ba n k s - -

Loa n s fr om F in a n cia l In s t it u t ion s - -

In t er -Corp or a t e Loa n s - -

- -

SCHEDULE D - UNSECURED LOAN - -

- -

SCHEDULE E - DEFERRED TAX LIABILITY

Amou nt in Rs .

Pa r t ic u la r s As on 0 1 .0 4 .2 0 0 9 For t h e yea r As on 3 1 .0 3 .2 0 1 0

As p e r As p e r As p e r As p e r As p e r As p e r Diffe r en c e Defer redCom pan ies In com e Tax Com pan ies In com e Tax Com pan ies In com e Tax Ta x

Act Act Act Act Act Act Li a b i li t y

Pla n t & Ma ch in ery 1 ,202 6 ,6 50 6 ,9 46 2 4 ,21 6 8 ,1 48 30 ,8 66 22 ,718 7 ,0 20

Fu rn itu re & Fixtu r es 98 8 3 ,5 89 6 ,011 2 4 ,19 5 6 ,9 99 27 ,7 84 20 ,786 6 ,4 23

Com p u ter s & Pr in ters 5 ,6 95 42 ,4 95 2 7 ,87 9 93 ,90 3 33 ,5 74 1 36 ,39 8 10 2 ,82 4 31 ,7 73

Office Equ ipm en t - - 3 ,5 72 9 ,3 72 3 ,5 72 9 ,37 2 5 ,8 00 1 ,7 92

Tot al 7 ,8 8 5 5 2 ,7 3 4 4 4 ,4 0 7 1 5 1 ,6 8 6 5 2 ,2 9 2 2 0 4 ,4 2 0 1 5 2 ,1 2 8 4 7 ,0 0 8

SCHEDULE F - FIXED ASSETS(Amou nt in Rs . )

Gr oss Bloc k De p r e c ia t ion Blo c k Ne t Bloc k

R a t e o f

Depreciat ion As on Ad d it ion s De le t ion s/ As on Up t o F or t h e De le t ion s / Up t o As a t As a t

01.04.2009 Adjust men ts 31.03.2010 31.03.2009 Ye a r Adjustm ents 31.03.2010 01.04.2009 31.03.2010

Tangible Assets:

Plan t & Ma ch in ery 7 . 0 7 % 88 ,665 15 8 ,850 - 247 ,51 5 1 ,20 2 6 ,946 - 8 ,14 8 8 7 ,463 239 ,36 7

Furnitu re & Fixtu res 6 . 3 3 % 71 ,776 333 ,3 19 - 405 ,095 988 6 ,011 - 6 ,999 70 ,788 398 ,0 96

Computers & Printers 1 6 . 2 1 % 14 1 ,650 64 ,100 - 20 5 ,750 5 ,6 95 27 ,879 - 33 ,573 135 ,955 172 ,17 7

Office Equ ipm en t 7 . 0 7 % - 124 ,9 57 - 124 ,957 - 3 ,5 72 - 3 ,572 - 1 21 ,385

TOTAL 3 02 ,0 9 1 68 1 ,2 26 - 9 8 3 ,31 7 7 ,8 8 5 44 ,407 - 5 2 ,2 9 2 2 9 4 ,2 0 6 9 3 1 ,0 25

SCHEDULE G - INVESTMENTS

In ve s t m e n t s - -

- -

Schedules forming part of the Balance SheetA m o u n t i n R s .

2 0 0 9 - 1 0 2 0 0 8 - 0 9

(14 .10 .2008 t o3 1 . 0 3 . 2 0 0 9 )




97

SCHEDULE H -INVENTORIES

a ) I n ve n t o r i e s - F i n is h e d go o d s (a t NR V) - -

(As cer t i f ied by the management)

b ) I n ve n t o r ie s - S t or e s & S p ar e p a rt s (a t c o s t )

Pa ck in g Ma t er ia ls - -

S tock of p la n t a t ion m a t er ia ls - -

S t ock of s t a t ion a ry - -

S tock of loos e tools - -

c ) I n ve n t o r ie s - S t o ck in p r og re s s (a t c o st )

Wor k in Pr ogr es s - -

- -

SCHEDULE I - SUNDRY DEBTORS

Debt s ou t s t and i ng fo r a per i od exceed i ng s i x mon t hs- Con s id er ed good - -

- Con s idered d ou b t fu l - -

- -

Les s : Provis ion for d ou b t fu l d eb t s - -

- -

Ot her Deb t s

- Con s id er ed good - -

- -

SCH EDULE J - CASH & BANK BALANCES

Ca s h a n d Ch equ es on h a n d 3 6 , 0 2 3 1 ,2 6 6

B a l a n c e w i t h S c h e d u l e d B a n k s :

in Cu r ren t a ccou n t 1 ,0 3 3 ,5 2 0 7 , 0 5 6 ,3 0 9

in t e rm Dep os it s 6 0 ,0 0 0 ,0 0 0 6 0 ,0 0 0 ,0 0 0

In t er es t Accr u ed on F ixed Dep os it s 6 4 3 , 7 1 8 7 0 ,4 7 7

6 1 ,7 1 3 ,2 6 1 6 7 ,1 2 8 ,0 5 2

SCHEDULE K - LOANS AND ADVANCES

(Unsecu red , cons i dered good)

Ad va n ce lea s e r en t a ls 2 ,2 5 3 ,0 9 5 2 , 5 0 0 ,0 0 0

Adva n ces r ecovera b le in ca s h or in k in d or for va lu e t o be r eceived 1 8 , 0 0 0 -

Ta x Ded u ct ed a t Sou r ce on Fixed Dep os it wit h Ba n k 3 2 9 , 2 8 0 1 8 ,2 9 0

Dep os it s (Lea s e Dep os it ) 2 5 ,0 0 0 ,0 0 0 2 5 ,0 0 0 ,0 0 0

2 7 ,6 0 0 ,3 7 5 2 7 ,5 1 8 ,2 9 0

SCHEDULE L - LIABILITIES

S u n d r y C r e d i t o r s - -

Accrued Liabi l i t ies :

O ffic e E xp e n s e s 1 8 3 ,2 2 3 1 4 6 , 2 7 1

Pa ya b le t o HPCL 7 5 6 ,1 6 7 1 , 1 0 0 ,9 1 6

Other Liabi l i t ies :

S ecu r it y d ep os it fr om con t r a ct or s 9 4 , 4 8 6 -1 ,0 3 3 ,8 7 6 1 , 2 4 7 ,1 8 7

SCHEDULE M- PROVISIONS

Ta x Dedu ct ed a t Sou rce Pa ya b le 4 ,1 9 3 6 ,0 1 0

Fr in ge Ben efit Ta x (Net of Ad va n ce t a x) - 1 6 , 9 5 9

4 ,1 9 3 2 2 , 9 6 9

SCHEDULE N - MISCELLANEOUS EXPENDITURE

Pr e-In cor p or a t ion E xp en s e s 9 ,5 8 1 , 5 8 7 1 0 ,6 4 6 ,2 0 8

Les s : Pr e-In cor p or a t ion E xp en s es Wr it t en Off (1 ,0 6 4 ,6 2 1 ) (1 ,0 6 4 ,6 2 1 )

8 ,5 1 6 ,9 6 6 9 , 5 8 1 ,5 8 7

Schedules forming part of the Balance SheetA m o u n t i n R s .

2 0 0 9 - 1 0 2 0 0 8 - 0 9

(14 .10 .2008 t o3 1 . 0 3 . 2 0 0 9 )




98

SCHEDULE O - SALES/ INCOME FROM OPER ATIONS

Gr os s S a les - -

In t e r -cr op p in g s a les (if a n y) - -

- -

SCHEDULE P - OTHER INCOME

In te res t on fixed d ep os it (Ta x d ed u cted a s s ou rce Rs . 3 ,1 0 ,9 9 0 ) 3 ,4 8 7 ,4 4 0 8 8 , 7 6 7

Mis c e lla n eou s In com e - -

In s u r a n ce Cla im Received - -

Profit on r eva lu a t ion of loos e t ools - -

Dep r ec ia t ion a d ju s t m en t - -

3 ,4 8 7 ,4 4 0 8 8 , 7 6 7

SCHEDULE Q - INCREASE/ DECREASE IN STOCK

Op en in g S t ock - -

Les s : Clos in g S t ock - -

- -

SCHEDULE R - PACKING MATERIAL CONSUMED

Op en in g s t ock -p a ck in g m a t er ia ls - -

Ad d :Pu r ch a s e - p a ck in g m a t er ia ls - -

Les s :Clos in g S t ock -p a ck in g m a t er ia ls - -

- -

SCHEDULE S - OPERATING EXPENSESLea s e Ren t a l on La n d 2 4 6 ,9 0 5 -

2 4 6 ,9 0 5 -

SCHEDULE T - ADMINISTRATIVE EXPENSES

Su n d r y E xp en s es 2 9 4 ,5 6 2 3 ,1 8 6

Ca s u a l La bou r 5 3 9 ,3 8 9 -

Loc a l Con veyn ce - -

Tou r s & Tra vel 1 ,0 5 6 ,2 3 3 3 7 1 , 2 5 3

Tr a ve l t r a in in g - -

Ca r h ir e ch a r ges 9 0 4 ,5 5 2 1 3 8 , 0 9 5

Re n t 5 4 , 0 0 0 -

E qu ip m en t r en t a ls - -

Tele p h on e a n d Fa x 4 8 , 3 1 8 1 6 , 3 9 5

Pr i n t i ng and S t a t i onery :

Le t t e r h e a d s / Offic e Pr in t in g 1 8 , 6 0 0 2 ,4 1 8

Com p u t er s ta t ion a ry 1 4 , 6 4 1 6 ,7 6 0

Office S u p p lie s 5 0 , 3 5 2 5 ,7 9 0

Book s & Per iod ica ls 1 3 , 3 0 0 2 ,8 8 0

Pos t a ge a n d Telegr a m 3 ,6 1 0 3 0 0

IT E xp e n s e s 3 ,6 2 5 1 3 , 4 6 0

Schedules forming part of the Profit and Loss AccountA m o u n t i n R s .

2 0 0 9 - 1 0 2 0 0 8 - 0 9

(14 .10 .2008 t o

3 1 . 0 3 . 2 0 0 9 )




100

CREDA-HPCL Bi o fue l L i mi t ed was p romot ed as a j o i n t ven t u re company by Hi ndus t an Pe t ro l eum Corpora t i on

Li mi t ed (HPCL) , and Chhat t i sgarh S t a t e Renewab l e Energy Devel opmen t Agency (CREDA) fo r t he p l an t a t i on o f

jat ropha in the State of Chhat t i sgarh . Jat ropha seeds are used for the product ion of b io-diesel as v iable renewable

sour ce of energy. The Compa ny’s object ive is to carry out jat roph a plan ata t ion on 1 5,000 h ectares of leased land .

A S I GNI F IC ANT A CC OUNT I NG P O LI CI E S

The f inancial s tatements have been prepared under the his tor ical cost convent ion on accrual basis in accordance

w i t h G e n e r a l l y A c c e p t e d A c c o u n t i n g P r i n c i p l e s ( G A A P ) , A c c o u n t i n g S t a n d a r d s i s s u e d b y t h e I n s t i t u t e o f

Char t e red Accoun t an t s o f Ind i a and t he r e l evan t p rov i s i ons o f t he Compan i es Act , 1956 .

(a ) F ixe d As se t s

L a n d

As p e r No t ifi ca t i on n o . F 4 - 5 9 / 2 0 0 5 / S e ve n / 0 6 d a t e d 0 1 / 0 9 / 2 0 0 6 i s s u e d b y t h e Go ve r n m e n t o f

Chhat t i sgarh , t he l ease o f t he l and sha l l be g i ven t o CREDA fo r 20 year s and may be r enewed fo r a

further period of 10 years subject to compliance of condit ions by the lessee mentioned in the Notification.

The Not i f icat ion fur ther provides that CREDA shal l get the plantat ion and biodiesel processing uni t on

the land managed by a company in which CREDA has at least 26 percent shareholding. Fur ther , CREDA

shal l ne i t her t r ans fer no r sub l ease t he l and t o anybody under any c i r cumst ance .The secu r i t y depos i t fo r t he above l and i s r e fundab l e . The l ease r en t a l payab l e fo r l easeho l d l and i s

charged to the Prof i t & Loss Account in the year in which i t i s payable.

Fixed Assets are stated at historical cost . Accumulated depreciation is deducted at the rates of depreciation

as stated in (b) below.

(b ) De p re c ia t io n

Depreciation is provided pro-rata to the period of use, on Straight Line Method, at the higher of the rates,

based on es t i mat ed usefu l l i ves o f t he asse t s and t hose s t i pu l a t ed i n Schedu l e XIV t o t he Compan i es

A c t , 1 9 5 6 .

(c ) In ve n t o ri e s

i ) S t ock o f p lan t a t i on mat er ia l s and j a t ropha s eeds a re va l ued a t cos t o r ne t r ea l izab le va l ue wh ichever

i s l ower

i i ) S t and i ng crops a t t he begi nn ing and a t t he end o f t he year i s no t va l ued as per t he no rmal p rac t ice

fo l l owed i n t he i ndus t ry .

(d ) P la n t a t i on De v elo p m e n t e x pe n d it u r e

i ) P la n t a t i o n a n d La n d D e ve lo p m e n t E x p en d i t u r e is c h a r g e d t o r e ve n u e i n t h e ye a r in w h i ch i t is

i n c u r r e d .

i i ) Al so, t he l ease r en t p ayab l e on a l l p l an t a t i on l and i s cha rged o ff t o t he p ro fit & lo ss accoun t i n t he

year i n wh i ch i t i s payab l e .

(e ) R e se a r ch & De v elo p m e n t e x pe n s e s

i ) R es e a r c h & D eve lo p m e n t e xp e n s e s i n c u r r e d u p t o t h e d e ve lo p m e n t s t a g e a r e ca p i ta l iz ed a n d w ill b e

wri t ten off over a per iod of f ive years f rom the year in which jat ropha plants bear f ru i t .

i i ) Al l su bsequen t expend i t u re i ncu r red t owards r esearch & developmen t a re wr i tt en o ff i n t he year i n

w h i c h t h e y a r e i n c u r r e d .

(f ) R et i r em e n t Be n efi t s

Presen t l y t he manpower o f t he Company compr i ses o f on l y per sonnel f rom HPCL on depu t a t i on bas i s .

Company would formulate pol icy for Ret i rement benef i t s to i t s employees soon.

(g) S ale o f P ro du c t s

J a t ropha Seeds a r e so l d a t p r i ces de t ermi ned by t he Board per i od ica l ly .

(h ) In t er e st

In t e res t , bo t h earn i ngs as wel l as paymen t s , a r e accrued i n t he books on mercan t i l e bas i s .

( i) F o re ig n Cu r r e n c y T ra n s a c t io n s

Fore i gn Cur rency t r ansac t i ons du r i ng t he year a r e r eco rded a t t he exchange r a t es p reva i l i ng on t he da t e

of the t ransact ions. Al l foreign currency assets , l iabi l i t ies and forward cont racts are restated at the rates

Schedule – X : Significant Accounting Policies and Notes to Accounts




101

prevai l i ng a t t he year end .

(j ) Go ve rn m e n t G ra n t s/ S ubs id y

Governmen t g ran t s i f any r ece i ved t owards i nves t men t i n p l an t a t i on wou l d be t r ea t ed as mi sce l l aneous

i ncome and ad j us t ed aga i ns t t he P l an t a t i on Devel opmen t Expend i t u re .

(k ) Ta xe s o n In c om e

Current tax i s determined on the basis of the amount of tax payable in respect of taxable income for the

year . Defer r ed t ax i s r ecogn i zed , sub j ec t t o t he cons i dera t i on o f p rudence , on t i mi ng d i f f e rences , be i ng

t h e d i f f e r e n c e b e t w e e n t a x a b l e i n c o m e a n d a c c o u n t i n g i n c o m e t h a t o r i g i n a t e i n o n e p e r i o d a n d a r e

capable of reversal in one or m ore sub sequent per iods. Deferred tax as sets a re not recognized on un absorbed

deprec i a t i on and car ry fo rward o f l o sses un l ess t here i s v i r t ua l cer t a i n t y t ha t su f f i c i en t fu t u re t axab l e

i ncome wi l l be ava i l ab l e aga i ns t wh i ch such defer r ed t ax asse t s can be r ea l i zed .

( l ) Mi sc e lla n e o us E xp e n d it u r e

Pre- incorporat ion expenses incurred on format ion of the company etc. i s wri t ten off over a per iod of ten

y e a r s i n e q u a l i n s t a l m e n t s .

(m ) I m p a ir m e n t o f As s e t sAt each Bal ance Shee t da t e an assessmen t i s made o f whet her t here i s any i nd i ca t i on o f i mpai rmen t o f

a s s e t s . A n i m p a i r m e n t l o s s i s r e c o g n i s e d w h e n e v e r t h e c a r r y i n g a m o u n t o f a s s e t s o f c a s h g e n e r a t i n g

un i t s (CGU) exceeds t he i r r ecoverab l e amoun t .

B NO T E S F O R MI NG P AR T OF T H E AC CO UNT S

(a ) F ig u r e s h a ve b e en r o u n d e d o ff t o n e a r e s t r u p e e .

(b ) P r e li m in a r y e x p e n s e s h a v e b e e n w r it t e n o ff t o t h e e xt e n t o f 1 / 1 0 th .

(c ) Managemen t has made an a ssessmen t on t he impai rmen t of asse t s and i s o f t he op in i on t ha t t here a re no

asse t s whose va l ue i s i mpai r ed .

(d ) T h e c om p a n y h a s n o s u n d r y c r e d it o r s fa l li n g u n d e r t h e c a t e g or y of s m a l l s c a l e in d u s t r i e s c ov er e d b y

Mi cro , Smal l and Med i um En t erp r i ses Devel opmen t Act , 2006 .

(e ) Defer r ed Tax Asse t / (Li ab i li t y) a r i s i ng due t o t i mi ng d iffe rence

Amoun t i n Rs .

For th e yea r As a t

2 0 0 9 -1 0 3 1 .3 .2 0 1 0

De p r e c ia t ion (1 ,0 7 ,2 7 9 ) (1 ,5 2 ,1 2 8 )

Tot a l Defer r ed Ta x Lia b ilit y (3 3 ,1 5 0 ) (4 7 ,0 0 8 )

Deferred tax has been considered in the accounts as per provisions of Account ing Standard 22 i ssued by

t he Ins t i t u t e o f Char t e red Accoun t an t s o f Ind i a .

(f) Am ou n t in Rs .

2 0 0 9 - 1 0

A . E s t im a t e d a m o u n t of C on t r a ct s r e m a in in g t o b e e xe cu t e d on

Ca p ita l Accou n t n ot p rovid ed for NIL

B. Cla im s a ga in s t t h e Com p a n y n ot a ck n owled ged a s d eb t s NIL

C. Pa ym en t s t o Au d it or s :Au d it fees (in cl. Ser vice Ta x) 2 7 , 5 7 5

D . Ma n a ge ria l Re m u ne ra t ion :S a la r y & Allowa n ces (Ch ief E xecu t ive 1 9 ,5 2 ,6 8 9

Of f i cer i s on depu t a t i on f rom HPCL. The amoun t r ep resen t s

r emunera t i on pa i d by HPCL and deb i t ed t o t he company .

The sa l a ry i nc l udes sa l a ry , company con t r i bu t i on t o PF , LFA,

bonus , med i ca l , g ra t u i t y & l eave encashmen t . )

E . C.I.F Va lu e of Im p or t s d u r in g t h e Yea r . NIL

F . E xp en d it u r e in For e ign Cu r r en cy NIL

G . E a r n in g in For e ign Cu r r en cy NIL

H . In form at ion on ea ch cla ss of good s p urch as ed , s old a nd s tocks du rin g t h e yea r NIL





102

(g) R ela t e d P a rt ie s :-

Na t u r e o f R e la t i o n s h i p Na m e o f Re la t e d Pa r t ie s

Pr om ot er s 1 . Hin d u s t a n Pe t r oleu m Cor p or a t ion Lt d . (HPCL)

2 . C h h a t tis ga r h S t a t e Re n ew a ble E n e r gy

Development Agency (CREDA)

Key Ma n a gem en t Per s on n el Sh r i Ku ld eep S in gh Rek h i (Ma n a ger )

Rela tive of t h e Key Ma na gem en t Per s on n el NIL

Det a i l s o f t r ansac t i ons be t ween t he company and r e l a t ed par t i es :

Amoun t i n Rs .

Na t u r e o f t r a n s a c t io n H P C L CR E DA

Ma n p ower cos t of em p loyees on d ep u t a t ion 4 4 ,5 3 ,5 4 0 -

Lea s e Ren t a l Ch a r ges - 2 , 4 6 , 9 0 5

(h ) The Cash flow s t a t emen t i s p repared by t he ind i r ec t met hod se t ou t in Accoun t i ng S tand ard -3 on “Cash

F l o w S t a t e m e n t s ” a n d p r e s e n t s t h e c a s h f l o w s b y o p e r a t i n g , i n v e s t i n g & f i n a n c i n g a c t i v i t i e s o f t h e

c o m p a n y . C a s h & c a s h e q u i v a l e n t s p r e s e n t e d i n t h e c a s h f l o w s t a t e m e n t c o n s i s t o f c a s h o n h a n d a n d

d e m a n d d e p o s i t s w i t h b a n k s .





103

Cash flow Statement for the year ended 31 March, 2010

(A) CASH FLOW FROM OPERATING ACTIVITIES

1 NET PROFIT/ (LOSS) BE FORE TAX AND E XTRAORDINARY ITE MS (5 ,5 25 ,6 06 ) (2 ,5 00 ,2 92 )

i) De p r e c ia t ion 4 4 , 4 0 7 7 ,8 8 5

ii) Pr e lim in a r y E xp en s es wr it t en off 1 , 0 6 4 ,6 2 1 1 ,0 6 4 ,6 2 1

ii i) In t e r es t In c om e (3 ,4 8 7 ,4 4 0 ) (7 0 ,4 7 7 )

(2 ,3 7 8 ,4 1 2 ) 1 ,0 0 2 ,0 2 9

2 O P E R AT IN G P R O FI T/ (L OS S ) B E F O R E WO R KI NG C AP IT AL

C H ANG E S (7 ,9 0 4 ,0 1 9 ) (1 ,4 9 8 ,2 6 3 )

Work i ng Cap i t a l Changes

Decrea s e in Cu r ren t As s et s (E xcep t Ca s h & Ca s h E qu iva len t s ) - -

In cr ea s e in Cu r r en t Lia b ilit ies - 1 ,2 5 3 ,1 9 7Decrea s e in Cu r r en t Lia b ilit ies (2 3 2 ,0 8 7 ) -

In cr ea s e in Cu rr en t As s et s (E xcep t Ca s h & Ca s h Equ iva len ts ) (8 4 ,8 9 9 ) (2 7 ,5 1 8 ,2 9 0 )

(8 ,2 2 1 ,0 0 4 ) (2 7 ,7 6 3 ,3 5 6 )

3 CAS H GE NE RATE D FROM OPE RATIONS BE FORE TAX (8 ,2 2 1 ,0 0 4 ) (2 7 ,7 6 3 ,3 5 6 )

In c om e Ta x Pa id 3 1 0 , 9 9 0

Ta x Refu n d Received - -

4 CAS H FLOW BE FORE E XTRAORDINARY ITE MS (7 ,9 1 0 ,0 1 4 ) (2 7 ,7 6 3 ,3 5 6 )

Les s : E xt r a or d in a r y It em s - (1 0 ,6 4 6 ,2 0 8 )

NET CASH INFLOW/ ( OUTF LOW) FROM OPE RATING ACTIVITIES

AF TE R TAX & E XTR AOR DINAR Y ITE MS (7 ,9 1 0 ,0 1 4 ) (3 8 ,4 0 9 ,5 6 4 )

(B) CASH FLOW FROM INVESTING ACTIVITIES

1 In t er es t Re ce ived 3 , 1 7 6 ,4 5 0 7 0 , 4 7 7

2 C a p it a l Wor k in Pr ogr es s - -

3 Pu rch a s e of F ixed As s et s & In ves t m en t s (6 8 1 ,2 2 6 ) (3 0 2 ,0 9 1 )

NE T CAS H INF LOW/ (OUT F LOW) F R OM INVE S T ING ACT IVIT IE S 2 ,4 95 ,2 24 (2 3 1 ,6 1 4 )

(C) CASH FLOW FROM FINANCING ACTIVITIES

Pr oceed s from Is s u e of Sh a res & Deb en t u r es - 1 0 5 ,7 6 9 ,2 3 0

NE T CAS H INF LOW F R OM F INACING ACTIVITIE S - 1 0 5 ,7 6 9 , 2 3 0

(D ) NE T INCR EASE / (DE CR EASE ) IN CAS H AND CASH EQUIVALE NTS (A+B+C) (5 , 4 1 4 ,7 9 1 ) 6 7 , 1 2 8 , 0 5 2

(E ) ADD: OPE NING CAS H AND CAS H E QUIVALE NTS 6 7 , 1 2 8 ,0 5 2 -

(F ) CLOSING CASH AND CASH E QUIVALE NTS 6 1 ,7 1 3 ,2 6 1 6 7 , 1 2 8 , 0 5 2


2 0 0 9 - 1 0 2 0 0 8 - 0 9(14 .10 .2008 t o

3 1 . 0 3 . 2 0 0 9 )

B . Mukher j ee

D i r e c t o r

Shru t i Bhagat



S . Roy Choudhury

C h a i r m a n

K . S . R e k h i

M a n a g e r




Fi rm No . 003350c

R.K. Agrawal

P a r t n e r

M e m b e r s h i p N o . 0 5 3 3 3 8

Pla ce : Ra ip u r

Da te : 22 nd May, 2010




104

I. R E GI ST RAT IO N DE TAI LS

Regis t r a t ion No. : U0 1 1 1 9 CT2 0 0 8 GOI0 2 0 9 0 0 Sta te Code: 10Ba la n ce S h eet Da t e : 3 1 .0 3 .2 0 1 0

I I. C AP I T AL R AI S E D D UR I NG TH E YE AR (Am o u n t i n R s . T h o u s a n d s )

Pu b lic Is s u e : Ni l Righ t s Is s u e : Ni l

Bon u s Is s u e : N i l Pr iva t e Pla ce m e n t : N i l

I I I . POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (Amou n t i n Rs .Th ou sa nd s)

Tot a l Lia b ilit ies : 1 0 5 8 1 6 .2 4 Tot a l As s et s : 1 0 5 8 1 6 .2 4

S o u r c e s o f F u n d s -

Pa id -u p Ca p it a l : 1 0 5 7 6 9 .2 3 Res er ves & S u rp lu s : N i l

S ecu red Loa n s : N i l Un s ecu r ed Loa n s : N i l

Defer r ed Ta x Lia bilit y : 4 7.0 1

A p p l i c a t i o n o f F u n d s -

Net F ixed As s e t s : 9 3 1 . 0 2 In ve s t m e n t s : N i l

Net Cu r ren t As s et s : 8 8 2 7 5 .5 6 In cor p or a t ion E xp . : 8 5 1 6 .9 7

Accu m u la t ed Los s es : 8 0 9 2 . 6 8

IV. P E R F OR MANC E OF C O MP ANY (Am o u n t i n R s . T h o u s a n d )

Tu r n ove r : 3 4 8 7 .4 4

Tot a l E xp e n d it u r e : 9 0 1 3 .0 5

Pr ofit / (Los s ) Befor e Ta x : (5 5 2 5 .6 1 )

Pr ofit / (Los s ) Aft er Ta x : (5 5 6 1 .5 7 )

E a r n in g p er S h a re (in Rs ) : (0 .7 7 )

V . G E NE R I C NAM E S O F T H R E E P R I NC I P AL P R O DU CT S / S E R V IC E S O F C O MP AN Y

(As per monetary terms)

Item Code (ITC)

Pr od u ct s Des cr ip t ion : J a t r op h a Ca r cu s

Item Code (ITC)

Pr od u ct s Des cr ip t ion : N i l

Item Code (ITC)

Pr od u ct s Des cr ip t ion : N i l

P la ce : Ra ip u r

Da t e : 22 nd May, 2010


S. Roy Ch ou dh u ry B. Mu k h er jee K. S . Re k h i Sh ru t i Bh a ga t

Ch a i r m a n Di r e c t o r Ma n a ge r Co m p a n y Se c r e t a r y




105

C & AG’s Comments


THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF THE CREDA - HPCL BIO FUEL LIMITED, RAIPUR

FOR THE YEAR ENDED ON 31 MARCH 2010.

The preparation of financial statements of CREDA - HPCL Biofuels Limited, Raipur for the year

ended on 31 March 2010 in accordance wi th the f inancia l report ing framework prescribed under the

Companies Act , 1956 i s the responsib i l i ty of the management of the company. The Sta tu tory Audi tor

appointed by the Comptroller and Auditor General of India under section 619(2) of the Companies Act,

1956 is respons ible for expressing opinion on thes e financial statem ents un der section 227 of the Comp an ies

Act, 1956 ba sed on independen t aud it in accordan ce with th e Aud it ing and Ass ur an ce Stan dard s prescribed

by their professional body The Inst i tute of Chartered Accounts of India. This is stated to have been done

by them vide th eir Aud it Report da ted 22 May, 2010.

I, on behalf of the Comptroller and Auditor General of India, have decided not to review the report

of th e Stat u tory Au ditor on the a ccoun ts of CREDA - HPCL Biofuels Limited, Raipur for the year end ed on

31 March 2010 a nd a s s uch have no comm ents to ma ke un der 619(4) of the Companies Act , 1956.

For and on behalf of the

Comptroller and Auditor General of India

D ol ly Chak raba r tyP r i n c i p a l D i r e c t o r o f C o m m e r c i a l A u d i t

& - Member, Audi t Board , Hyderabad

Place : Hyderabad

Date : 25 May, 2010




106

Joint Ventures

S l . Na m e o f t h e Da t e o f S h a r e h o ld i n g Na t u r e o f Op e r a t io n s

No J o in t Ve n t u re In c o r p or a t ion

1 . HPCL-Mitta l En ergy Ltd . 13 .12 .2000 HPCL - 49 .00% Con s t ru ction of 9 MMTPA

Mit ta l In ves tm en ts pet roleu m refin ery a t Bh a t in da ,

S.A.R.L. - 49 .00% Pu n ja b .

In d ia n Fin a n cia l - 2 .00%

Inst i tu t ions

2 . Hin du s ta n Cola s Ltd . 17 .07 .1995 HPCL - 5 0 .00% Ma n u fa ctu re a n d m a rket in g of

COLASIE - 50 .00% Bitu m en Em u ls ion s & Modified

Bi t umen .

3 . Sou th As ia LPG Com pa n y 16 .11 .1999 HPCL - 50 .00% Stora ge of LPG in u n dergrou n d

Pvt . Ltd . TOTAL - 50 .00% ca vern (60 ,000 MT ca pa city)

and ass ociated receiving and

dispatch facil i t ies at

Vi sakhapat nam.

4 . Ma n ga lore Refin ery & 07 .03 .1988 ONGC - 71 .62% Refin in g of cru de oil a n d

Pet roch em ica ls Ltd . HPCL - 16 .95% m a n u fa ctu r in g of petroleu m

Oth er s - 11 .43% produ cts .

5 . Pr ize Petroleu m Co. Ltd . 28 .10 .1998 HPCL - 50 .00% Explora t ion a n d p rodu ct ion

ICICI & a ctivit ies in th e oil a n d ga s

As s ocia tes - 45 .00% s ector .

HDFC - 5 .00%

6. Pet ron et In d ia Ltd . 26.05 .1997 HPCL - 16 .00% To a ct a s n oda l a gen cy for

Fin a n cia l / develop in g iden t ified a n d

Stra tegic pr ior it ized pet roleu m p rodu ct

In ves tor s - 50 .00% pipelin es in th e cou n t ry.

Oth er PSUs - 34 .00%

7. Pet ron et MHB Ltd. 31 .07 .1998 HPCL - 2 8 .77% Opera tion a n d m a in ten a n ce of

Pet ron et pet roleu m p rodu ct p ipelin e

In d ia Ltd . - 7 .89% between Ma n ga lore-Ha s s a n -

ONGC - 28 .77% Ba n ga lore.

Financial /

Strategic

In ves tor s - 3 4 .57%

8. Bh a gya n a ga r Ga s Ltd . 22 .08 .2003 HPCL - 2 5 .00% Dis tr ibu t ion a n d m a rketin g of

GAIL - 25 .00% en viron m en ta l fr ien d ly fu els

AP Govt. - 50 .00% (Green Fu els ) viz. CNG a n d

Aut o LPG in the s tate of

Andhra Pradesh.

9 . Aa va n tika Ga s Ltd . 07 .06 .2006 HPCL - 2 5 .00% Dis tr ibu t ion a n d m a rketin g of

GAIL - 25 .00% en viron m en ta l fr ien d ly fu els

Fin a n cia l - 50 .00% (Green Fu els ) viz. CNG a n d

In s t itu t ion s Au to LPG in th e s ta te of

Madhya Pradesh.




107

HPCL BIOFUELS LIMITED

(Su bsid iar y of HPCL)




108

Auditors’ Report

TO THE MEMBERS OF HPCL BIOFUELS LIMITED

1. We have aud ited the a t ta ched Balance Sheet of HPCL BIOFUELS LIMITED (the compan y) as a t 31March 2010, the Profi t and Loss Account and also the Cash Flow Statement of the company for thep e r i o d f r o m 1 6 - 1 0 - 2 0 0 9 t o 3 1 - 0 3 - 2 0 1 0 , a n n e x e d t h e r e t o . T h e s e f i n a n c i a l s t a t e m e n t s a r e t h erespons ib i li ty of the comp an y’s m an agement . Ou r resp onsib ili ty i s to express a n opin ion on thesefinancia l s ta tements based on our audi t .

2 . We condu cted our au dit in accordance with th e audi t ing s tanda rds genera lly accepted in India . ThoseStanda rds requi re tha t we p lan an d perform the a udi t to obta in reas onable assura nce about whetherthe fina ncial statemen ts ar e free of ma terial misst atem ent. An au dit includes exam ining, on a test ba sis,evidence support ing the amounts and disclosures in the financial statements. An audit also includesas sess ing the accoun ting principles us ed and s ignifican t est imates m ade by man agement, as well asevaluat ing the overall finan cial statem ent pr esenta t ion. We believe tha t our a ud it provides a reas onablebas is for our opinion.

3. As required by the Compan ies (Au ditor’s Report) Order, 2003, as am ended by the Comp an ies (Aud itor’sinform ation) (Amen dm ent) Order,200 4, issu ed by th e Centra l Governm ent of Ind ia in term s of su b-section (4A) of Section 227 of th e Com pa nies Act,195 6 , we give in th e Ann exur e a stat emen t on thematters specified in paragraphs 4 and 5 of the said Order.

4 . Furth er to our comm ents in the Ann exure referred to in paragraph 3 above, we report tha t :

(a) Pre limina ry expenses ha ve been cert ified by M/ s G.P. Kapa dia & Co., Chartered Accoun tan ts ,Mumbai and pre – incorporation expenses and sale of scrap (Plant & Machinery etc. of Sugar Unitsacqu ired along with lease of lan d) have been certified by M/ s H. Singhvi & Co., Cha rtered Accoun tan ts,Mumbai. We have relied on those certificates in respect of the expenses & sale of scrap mentionedin those cert ificates.

(b) The Accoun ts ad opted by the Board on 27 April , 2010 h ave been revised as given in par a 11 of theNotes to Accounts. This is the revised report on the revised accounts.

(c) We have obtained al l the informa tion an d explan ations, which to the best of our kn owledge an dbelief were necessary for the purposes of our audit ;

(d) In ou r opin ion , proper books of account a s requi red by law have been k ept by the compan y,so faras appears from our examination of those books; .

(e) the Balance Sheet , the Profit & Loss account a nd the cash flow s ta tement deal t with by th is reportare in a greement with the books of accou nt;

(f) In ou r opin ion , the Balance Sheet , the Profit & Loss Accoun t an d the cas h flow s ta tement deal twith by this report , comply with the Accounting Sta nda rds referred to in su b-section (3C) of Section211 of the Compa nies Act, 1956;

(g) In view of notificat ion no. GSR 829 (E) dated 21 .10.2003, issu ed by the Central Govern men t, theprovisions of clause (g) of sub section (1) of Section 274 of the Companies Act, 1956 are notapplicable to a government company.

(h) In ou r opin ion , an d to the best of our informa t ion an d according to the explana t ions g iven to us ,the sa id accounts , read together wi th the notes thereon, and the Account ing Pol ic ies g ive theinformation required by the Companies Act, 1956, in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India :-

(i ) in th e case of the Balance Sheet , o f the s ta te of affa i rs of the company as a t 31 March 201 0,

(ii) in the cas e of the Profi t and Loss a ccou nt, of the loss of the compa ny for the period ended onthat da te ; and .

(ii i ) In the cas e of Cash Flow Statemen t, of the Cas h Flows of the comp an y for the period ended

on that da te .

For L.K. KEJ RIWAL & CO.

C h a r t e r e d Ac c o u n t a n t s

Firm No. 00136 8C

L.K. Kejriwal

P a r t n e r

Place : Mu m ba i Mem bers h ip n o. 011848

Date : 21st May, 2010




109


(Referred to in paragraph 3 of our report of even date on the accounts of HPCL BIOFUELS LIMITED, for the

period from 16-10 -2009 to 31-03-201 0)

1 . (a) The compa ny has m ain ta ined proper records showing fu l l par t icu lars inc luding quan t ita t ive deta ils

and si tuation of fixed assets

(b) As explained to us, the fixed assets h ave been ph ysically verified by the man agement a t reasona ble

intervals and no material discrepancies were noticed on such verificat ion.

(c) There was n o su bstan t ia l d isposal of fixed a sse ts during the year which would affec t the going

concern s ta tus of the company.

2 . As th e compan y d id not h ave any inventories du ring the year , c lau se 4(ii) o f the Order i s no t appl icable

to the company.

3 . Based on the audi t p rocedures appl ied by us a nd according to the informat ion and explana t ions g iven

to us , th e Compa ny has nei ther gran ted nor g iven nor tak en loans , secured or un secured , to / from

companies, firms or other part ies covered in the register required to be maintained under section 301

of th e Com pa n ies Act, 1 95 6, Con se qu en tly, clau ses (b), (c), (d), (e), (f) an d (g) of pa ra 4(iii) of th e Ord er

are not applicable to the company.

4 . There i s no purcha se of inventory and no sa le of goods and services dur ing the period . As regards

purchase of fixed assets, in our opinion and according to the information & explanations given to us,

there i s adequate in ternal cont ro l system comm ensu rate with th e s ize of the company an d the natu re

of i ts business. During the course of our audit , we have not observed any continuing fai lure to correct

major weaknesses in internal control system. .

5 . According to the informat ion & explana t ions g iven to us , there are no cont ra c ts and arr angements

referred to in Section 301 of the Companies Act 1956 entered into during the period that need to be

entered in the register to be maintained under that Section. Accordingly, para 4(v)(a)&(b) of the Order

is not applicable to the company for the current period.

6 . The company has n ot accepted any deposit s from the pu blic with in the mean ing of sec t ion 58A and

58AA or any other relevant provisions of the Act, the rules framed there under and the directives

issued by the Reserve Bank of India.

7 . As informed to us , the in ternal audi t of the compan y is conducted by the in ternal audi t department of

Hindu sta n Petroleu m Corporation Ltd, the h olding comp an y. The intern al au dit system of the compa ny

is commensurate wi th i t s s ize and the nature of i t s business .

8 . According to the informa t ion and explana t ions g iven to us , the Cent ra l Governm ent has prescribed

maintenance of cost records under section 209 (1)(d) of the Companies Act, 1956 in respect of Sugar

Industry vide notificat ion no 388(E) dated 15.07.1997 but as the Plant & Machineries are st i l l under




110


ins ta lla t ion and the Company h as not s tar ted pr oduct ion , the cost records have not been ma in ta ined

by the Company.

9 . (a ) Acco rding t o the i n fo rma t ion and exp lana t i ons g iven t o u s an d on t he bas i s of ou r examina t ion o f

the books of account, the company has been generally regular in deposit ing undisputed statutory

du es of Income Tax (TDS) an d VAT. It was explained to u s t ha t th ere were no other s tatu tory dues

payable by the company.

(b) According to the information an d explan ations given to u s, there a re no du es of VAT an d Income Tax

which have not been deposited on account of any dispute. It was explained to us that there were

no dues on account of Wealth Tax, Custom Duty, Service Tax, Excise Duty and Cess.

10. As th e compan y has been registered for a period of less tha n five years, the p rovisions of para 4 (x) of

the Order are not applicable to the company.

11 . The company has nei ther taken a ny loan from a f inan cia l ins t i tu t ion or a ban k, nor issu ed any debenture .

12 . According to the informat ion a nd explana t ions g iven to us , and based on th e docum ents a nd records

produced to us, the company has not granted loans and advances on the basis of securi ty by way of

p ledge of shares , debentures and o ther securi t ies .

13. The comp an y is n ot a chit fun d or a n idhi/ mu tu al benefi t fun d/ society. Accordingly, para 4 (xii i) of the

order is not applicable.

14. The compa ny has n o t dea l t in o r t raded in sh a res , secu r i t ie s , deben tu res and o the r i nves tmen t sduring the period, and accordingly, the provisions of para 4(xiv) of the Order are not applicable to the

company during the period.

15. According to the informa tion an d explan ations given to us , the comp an y ha s given a corporate guara ntee

to State Bank of India for extending credit faci l i t ies to sugar cane farmers. In our opinion, the terms

and condit ions are not prejudicial to the interests of the company.

16 . No term loans were obta ined by the compan y during the period .

17. Accord ing t o t he i n fo rma t ion and exp l ana t i ons g iven t o u s a nd on an ove ra l l examina t ion o f t he

balance sheet of the company, no funds were raised by the company on short-term basis.

18 . The company h as not ma de any preferent ia l a llotment of shares to par t ies an d companies covered in

the Register to be maintained under section 301 of the Companies Act, 1956.




111

19. The compan y has n ot issu ed any debentures during the period .

20 . The company has n ot ra ised any money through a publ ic issu e during the period .

21 . According to the informat ion and explanat ions g iven to u s , no fraud on or by the Company h as been

noticed or reported during the period.


C h a r t e r e d Ac c o u n t a n t s

Firm No. 001368C

L.K. Kejriwal

P a r t n e rPla ce : Mu m ba i Mem bersh ip n o. 011848

D a t e : 2 1 s t Ma y, 2 0 10




113


S c h e d u le 2 0 0 9 -1 0

I n c o m e

Sal es / Income f rom Opera t i ons O -

O t h e r I n c o m e P 9 7 , 7 9 5

T o t a l 9 7 , 7 9 5

E x p e n d i t u r e

(Increas e) / Decrease i n S t ock o f F i n ished Goods Q -

Pack i ng Mat er i a l s Consumed R -

O p e r a t i n g E x p e n s e s S -

Ad m i n i s t r a t i ve E x p e n s e s T 5 , 5 2 7 , 7 6 0

Sel l i ng and Di s t r i bu t i on Expenses U -

B a n k C h a r g e s V 2 , 7 1 1 , 5 1 3

Cost of Employees W 6 , 0 2 4 , 6 9 6

T o t a l 1 4 , 2 6 3 , 9 6 9

P r o fi t / (L os s ) be f o r e Am o r t i s a t i o n , D e p r e c i a t i o n a n d T a x ( 1 4 , 1 6 6 , 1 7 4 )

Deprec i a t i on F -

P r e l i m i n a r y E x p e n s e s w r i t t e n o f f N 1 3 , 1 6 4 , 1 7 0

P r o f i t / (L o s s ) b e f o r e T a x ( 2 7 , 3 3 0 , 3 4 4 )

Provision for Tax

- Cu r r en t Ta x 2 1 , 8 7 6

- Deferred Tax Charge E -

- In r es p ect of ea r lier yea r s -

- F r in ge Ben efit Ta x -

P r o f i t / (L o s s ) a f t e r T a x ( 2 7 , 3 5 2 , 2 2 0 )

Ba la n ce b rou gh t for wa rd fr om p r eviou s yea r -

B a l a n c e a v a i l a b l e f o r a p p r o p r i a t i o n ( 2 7 , 3 5 2 , 2 2 0 )

A p p r o p r i a t i o n

Pr op os e d Divid e n d -

Ta x on Pr op os ed Divid e n d -

Tr a n s fer t o Gen er a l Res er ve -

Ba la n ce ca r r ied t o Ba la n ce S h eet (2 7 ,3 5 2 ,2 2 0 )

T o t a l ( 2 7 , 3 5 2 , 2 2 0 )

Nom in a l Va lu e of E qu ity Sh a res of (Rs .) 1 0

Ea rn in gs p er Sh a re - Ba s ic a n d Dilu ted -

Signi f icat Account ing Pol icies X

Notes at tached to and forming par t of the Statement of Accounts Y

Schedules referred to above form an in tegral par t of the Prof i t and Loss Account

Profit and Loss Account for the year ended 31 March, 2010(Fo r t he per i od f rom 16 .10 .2009 t o 31 .03 .2010)

As per our repor t of even date at tached



Fi rm No . 001368 C

L.K. Kejriwal

P a r t n e r

M e m b e r s h i p N o . 0 1 1 8 4 8

Place : Mumbai

Date : 21 st May, 2010

K. Mural i

D i r e c t o r

B. Rajesh

CEO & Manager

H e e n a S h a h



B . Mukher j ee

D i r e c t o r

G. P. Meena

C h i e f F i n a n c e O f f i c e r




114

Schedules Forming part of the Balance Sheet


2 0 0 9 - 1 0SCHEDULE - A - SHARE CAPITAL

Author i sed

25,00,00,000 Equity Shares of Rs.10 each. 2 , 5 0 0 , 0 0 0 , 0 0 0

Issued, Su bscr ibed and paid up

10,00,00 ,000 Equ ity Sha res of Rs.10 each ful ly paid up 1 , 0 0 0 , 0 0 0 , 0 0 0

1 , 0 0 0 , 0 0 0 , 0 0 0

N o t e s : -1) Of the above 9,99,99,994 equity shares were al loted to the Holding Company “Hindustan PetroleumCorporat ion Ltd” and balance 6 equity shares to the 6 nominees of the Holding Company.

2) Of the above paid up Cap ital of Rs 1,00 ,00,00,00 0, Rs.50,82,84 ,752 was received in ca sh an dRs. 49,17,15,248 was on a/ c of Pre- incorporat ion and Preliminary exps.incurred by the Holding Compan y

SCHEDULE - B - RESERVES AND SURPLUS -

-SCHEDULE - C - SECURED LOANS -

-

SCHEDULE - D - UNSECURED LOANS -

-

SCHEDULE - E - DEFERRED TAX -

-

SCHEDULE - F - FIXED ASSETS


Gr o s s Blo c k De p r e c i a t i o n / Am o r t i s a t i o n Ne t Blo c k

As on Addit ion s Delet ion s/ As on As on For t he Delet ion s/ As on As on As on

16.10.2009 Adju st men ts 31.03.2010 16 .10 .20 09 Year Adju st m en ts 31.03.2010 31.03.2010 16 .10 .2 009

Tangible AssetsLea s eh old La n d - - - -

Plan t & Ma ch in ery - 3 ,1 2 3 ,9 6 4 - 3 ,1 2 3 ,9 6 4 - 8 7 ,5 6 8 - 8 7 ,5 6 8 3 ,0 3 6 ,39 6 -

Fu rn itu re & Fixtu res - 1 ,9 6 9 ,9 1 4 - 1 ,9 6 9 ,9 1 4 - 5 3 ,7 4 3 - 5 3 ,7 4 3 1 ,9 1 6 ,17 1 -

Computers & Printers - 6 6 ,2 6 1 - 6 6 ,2 6 1 - 7 ,43 6 - 7 ,436 5 8 ,8 2 5 -

TOTAL - 5 ,160 ,139 - 5 ,160,139 - 148,747 - 148 ,747 5,011,392 -

2 0 0 9 - 1 0

Schedu l e - G - Cap i t a l Work In Prog ress ( a t cos t )

(A) Paymen t fo r Leaseho l d Land and Appur t enan t s

Su gu a li 5 0 0 ,0 0 0 ,0 0 0

La u r iya 4 5 0 ,0 0 0 ,0 0 0

Tot a l 9 5 0 ,0 0 0 ,0 0 0

Les s :In com e from s a le of s cr a p (4 1 ,3 4 7 ,1 9 6 ) 9 0 8 , 6 5 2 , 8 0 4

(B ) Ad va n c e t o C o n t r a c t or s f or C a p i t a l E xp e n d i tu r e 8 1 5 , 5 0 6 , 7 7 9

(C) U n a llo ca t e d C a p it a l E xp e n d it u r e 2 3 0 , 4 3 4 , 9 0 2

(D ) C on s t r u c t i on p e r io d E x p e n s e s P e n d i n g Ap p o r tio n m e n t

C o n s u l t a n c y E x p e n s e s 1 6 , 2 6 1 , 4 8 0

R e n t 3 3 0 , 0 0 0

Contract Wages & Off ice Expenses 2 , 7 4 5 , 6 1 8




115

Schedules Forming part of the Balance Sheet

Rep a ir & Ma in t en a n ce E xp en s es 8 ,5 8 0 , 5 7 1

S ecu r it y Ad vis or Fee 4 8 0 , 0 0 0

S ecu r it y E xp en s es 2 ,5 8 1 , 0 6 9

Ta xi Hir e E xp e n s e s 2 ,3 2 4 , 2 0 4

Tr a ve l E xp e n s e s 6 6 6 , 7 4 2

E s t a b lis h m en t E xp e n s es 1 6 ,2 0 2 ,8 2 7

De p r e c ia t ion 1 4 8 , 7 4 7

S u b T o t a l 5 0 , 3 2 1 ,2 5 8

T o t a l 2 ,0 0 4 ,9 1 5 ,7 4 3

SCHEDULE - H -INVENTORIES -

-

SCHEDULE - I - SUNDRY DEBTORS -

-

SCHE DULE - J - CASH & BANK BALANCES

Ca s h a n d Ch equ es on h a n d -

B a l a n c e w i t h S c h e d u l e d B a n k s :

In Cu r ren t Accou n t s 6 ,3 8 7 , 9 7 0

6 , 3 8 7 , 9 7 0

SCHEDULE- K - LOANS AND ADVANCES

(Unsecu red , cons i dered good)

Ta x Ded u ct ed a t Sou r ce on Fixed Dep os it wit h Ba n k 5 ,1 8 0

Ad va n ces t o Ca n e Gr ower s 9 1 4 , 1 4 3

9 1 9 , 3 2 3

SCHEDULE - L - CURRENT LIABILITIES

Pa ya b le to E PCC Con t ra ct or 2 2 ,3 5 7 ,7 0 7

Op er a t in g E xp en s es Pa ya b le t o HPCL 2 4 ,0 4 7 ,6 9 1

Accr u ed E xp en s e - Pa ya b le 1 1 8 ,1 1 3 ,7 3 7

TDS Pa ya b le 9 3 0 , 6 3 7

S ecu r it y Depos it from Con t r a ct or s 1 5 , 0 0 0

Pa ya b le t o Govern m en t of Bih a r 2 3 7 ,5 0 0 ,0 0 0

4 0 2 , 9 6 4 , 7 7 2

SCHEDULE - M - PROVISIONS

Pr ovis ion for In com e Ta x 2 1 , 8 7 6

2 1 , 8 7 6

SCHEDULE - N -PRELIMINARY EXPENSES TO THE EXTENTNOT WRITTEN OFF OR ADJUSTED

Pr e lim in a r y E xp e n s e s 1 3 ,1 6 4 ,1 7 0

Les s : Pr e lim in a r y E xp en s es Wr it t en off (1 3 ,1 6 4 ,1 7 0 )

-


2 0 0 9 - 1 0




116

Schedules Forming part of the Profit and Loss Account

SCHEDULE - O - SALES/ INCOME FR OM OPERATIONS -

SCHEDULE - P - OTHER INCOME

In t e r es t on F ixed Dep os it 5 1 ,7 9 5

Mis c e lla n eou s In com e 4 6 ,0 0 0

9 7 , 7 9 5

SCHEDULE - Q -INCREASE/ DECREASE IN STOCK -

-

SCHEDULE - R - PACKING MATERIALS CONSUMED -

-

SCHEDULE - S - OPERATING EXPENSES -

-

SCHEDULE - T - ADMINISTRATIVE EXPENSESFee t o Ca n e Ad vis or 4 0 0 , 0 0 0

Ca n e Develop m en t E xp en s e 3 ,3 4 3 , 2 9 8

Revie w & Con fer e n c e 2 0 6 , 5 4 4

Sa la ry & Wa ges 9 7 1 , 9 7 1

Sta t u t ory Fees a n d Ta xes 2 2 2 , 0 4 5

Tele p h on e a n d Fa x 1 2 2 , 0 0 1

Pr in t in g a n d S t a t ion er y 1 2 0 , 7 1 9

Pos t a ge a n d Telegr a m 2 ,0 4 0

Aud i t o r Remunera t i on

- Au d it Fees 3 3 0 9 0

- Ta x Au d it Fees -

- Cer t ifica t ion Fees -

- Ot h er S er vices -

- Reim b u r s em en t of E xp en s es - 3 3 ,0 9 0

La n d Lea s e Pa ym en t 2

Lega l & Con s u lt a t ion Fees 1 0 6 , 0 5 0

5 , 4 8 7 , 7 6 0

SCHEDULE - U - SELLING AND DISTRIBUTION EXPENSES -

-

SCHEDULE - V - BANK CHARGES

Ba n k Ch a rges in c lu d in g gu a ra n t ee com m is s ion 2 ,7 1 1 ,5 1 3

2 , 7 1 1 , 5 1 3

SCHEDULE - W - COST OF EMPLOYEES

Sa la r ies a n d Wa ges [of p er s on n el on d ep u ta t ion from HPCL] 6 ,0 1 1 ,7 2 9

St a ff Welfa r e 1 1 ,6 0 0

E m p loyee Recr u it m en t a n d Tr a in in g 1 ,3 6 7

-

6 , 0 2 4 , 6 9 6


2 0 0 9 - 1 0




117

Schedule – X : Significant Accounting Policies

STATEMENT OF ACCOUNTING POLICIES :

The f i nanci a l s t a t emen t s a r e p repared under h i s t o r i ca l cos t conven t i on i n acco rdance wi t h Genera l l y Accep t edAccount ing Pr inciples (GAAP), Account ing Standards referred to in the Companies (Account ing Standards) Rules ,

2006 i ssued by the Cent ral Government and the relevant provisions of the Companies Act , 1956. Al l income and

expend i t u re hav i ng mat er i a l bear i ng are r ecogn i zed on accrua l bas i s , excep t where o t herwi se s t a t ed . Necessary

est imates and assumpt ion of income and expendi ture are made dur ing the repor t ing per iod and di f ference between

t he ac t ua l and t he es t i mat es a re r ecogn i zed i n t he per i od i n wh i ch t he r esu l t s mat er i a l i ze .

1 . FIXED ASSETS

a . Lan d acqu i r ed on lease fo r 99 year s or more is t r ea t ed as fr eeho ld land . Lan d acqu i r ed fo r less t han 99

year s i s t r ea t ed as l ease ho l d l and .

b . F ix e d As s e t s a r e ca r r i ed a t co s t le s s a c c u m u la t e d d ep r e c ia t i on .

2 . INTANGIBLE ASSETS

a . C os t s i n c u r r e d o n t e ch n i c a l k n o w -h o w / l ic e n s e fe e r e la t i n g t o p r oc e s s d e s ig n / p la n t s / fa c ili tie s a r ecap i t a l i zed as In t ang i b l e Asse t s .

b . Cost of Software di rect ly ident ified wi th ha rdware i s capi tal ized along with th e cost of hardware. Appl icat ion

software is capital ized as Intangible Asset .

3 . CONSTRUCTION PERIOD EXPENSES ON PROJ ECTS

a. Expendi ture d i rect ly or indi rect ly related wi th the project , dur ing const ruct ion per iod, s tar t -up an d commissioning

of the project are ca pital ized.

b . P r e li m in a r y , p r e - in c o r p or a t i on a n d p r e - op e r a t iv e e xp e n s e s n o t c a p it a l iz e d in l in e w i t h AS 2 6 , a r e

r e c o g n i z e d a s a n e x p e n s e w h e n i n c u r r e d .

4 . DEPRECIATION

a . D e p r ec ia t i on o n F ix e d As s e t s i s p r ov id e d o n t h e S t r a ig h t Lin e m e t h o d , in t h e m a n n e r a n d a t t h e r a t e s

p rescr i bed under Schedu l e XIV t o t he Compan i es Act , 1956 and i s charged p ro r a t a on a mon t h l y bas i s

on as se t s , f rom/ up t o and i nc lus i ve o f t he m on t h o f cap i t a li za t i on / sa l e , d isposa l o r de l e ti on d u r i ng t he

year .

b . Al l ass e t s cos t i ng up t o Rs . 5000 / - are fu l ly dep rec ia t ed i n t he year o f cap i t a li za t i on .

c . P r e m i u m o n le a s e h o l d la n d is a m o r t iz e d o ve r t h e p e r io d of l ea s e . Th e l ea s e r e n t i s c h a r g e d i n t h e

respec t i ve year .

d . M a ch i n e r y S p a r e s , wh i ch c a n b e u s e d o n ly in c o n n e c t io n w it h a n it e m o f fix e d a s s e t a n d t h e u s e o f

wh i ch i s expec t ed t o be i r r egu l ar , a r e dep rec i a t ed over a per i od no t exceed i ng t he usefu l l i f e o f t he

pr incipal i tem of f ixed asset .

e . In t a n g ib le As s e t s o t h e r t h a n a p p lic a t io n s o ft w a r e a r e a m o r t iz ed o n a s t r a ig h t lin e b a s i s o ve r t h e u s e f u l

l i fe of the parent asset .

f . Appl icat ion software are norm al ly amort ized over a per iod of four years , or over it s u seful li fe, whichever

i s ear l i e r .

5 . IMPAIRMENT OF ASSETS

A t e a c h b a l a n c e s h e e t d a t e , a n a s s e s s m e n t i s m a d e o f w h e t h e r t h e r e i s a n y i n d i c a t i o n o f i m p a i r m e n t . A n

impai rment loss i s recognized whenever the carrying amount of assets of cash generat ing uni t s (CGU) exceeds

t he i r r ecoverab l e amoun t .

6 . PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS

6. 1 A provision i s recognized when th ere is a pr esent obl igat ion as a resu l t of a pa st event and i t i s probable that

an out f low of resources wi l l be requi red to set t le the obl igat ion in respect of which rel iable est imate can be

m a d e .




118

6 . 2 N o p r ov is i on is r e c o g n iz ed f or :

(i) Any poss i b le ob li ga t i on t ha t a r i ses from pas t even t s a nd t h e ex is t ence o f wh i ch wil l be con fi rmed on l yb y t h e o c c u r r e n c e o r n o n - o c c u r r e n c e o f o n e o r m o r e u n c e r t a i n f u t u r e e v e n t s n o t w h o l l y w i t h i n t h e

cont rol of the company.

(i i) Any p resen t ob li ga t i on t ha t a r i ses from pas t even t s bu t i s no t r ecogn ized becau se

a. I t i s not probable that a n out f low of resources em bodying economic benefi t s wi ll be requi red to set t le

t he ob l i ga t i on .

b . A r e lia b le e s t im a t e o f t h e a m o u n t o f ob lig a tio n c a n n o t b e m a d e .

Such ob l i ga t i ons a re r eco rded as con t i ngen t l i ab i l i t i es . These a re assessed a t r egu l ar i n t e rva l s and on l y

that par t of the obl igat ion for which an out f low of resources embodying economic benef i t s i s probable, i s

p rov i ded fo r , excep t i n t he ex t r emel y r a re c i r cumst ances where no r e l i ab l e es t i mat e can be made .

6 . 3 C o n t in g e n t As s e t s a r e n o t r e c og n i ze d i n t h e fi n a n c i a l s t a t e m e n t s a s t h i s m a y r e s u l t in t h e r e c o g n it i on o f

i ncome t ha t may never be r ea l i zed .

7 . T AXE S O N INCO ME

a . P r ov is i on f or c u r r e n t t a x i s m a d e in a c c or d a n c e w it h t h e p r o v is i on s o f t h e I n c om e T a x Ac t , 1 9 6 1 .

b . D e fe r r e d t a x o n a c c o u n t o f t im i n g d iffe r e n c e b e t we e n t a x a b l e a n d a c c ou n t in g i n c om e i s p r o vid e d b y

us i ng t ax r a t es and t ax l aws enac t ed o r subs t an t i ve l y enac t ed as a t t he ba l ance shee t da t e .

8 . E MP LO YE E BE NE FIT S

Presen t ly the m an power of the com pan y comp rises pers onn el from HPCL on depu tat ion ba sis . As per HPCL’s

account ing pol icy , l iabi l i ty towards long term def ined employee benef i t s- leave encashment , gratui ty , pension,

post – ret i rement medical benef i t s , long service award, ex-grat ia and death benef i t s are determined on actuar ial

valua t ion by indepen dent a ctuar ies a t the year end by using projected u ni t credit m ethod. Liabil ity so determined

i s f u n d e d i n t h e c a s e o f l e a v e e n c a s h m e n t a n d g r a t u i t y , a n d p r o v i d e d f o r i n o t h e r c a s e s . I n r e s p e c t o f

provident fund, the contribution for the period is recognized as expense and charged to Profit & Loss Account.

Shor t t e rm empl oyee benef i t s a r e r ecogn i zed as an expense a t an und i scoun t ed amoun t i n t he p ro f i t & l o ss

accoun t o f t he year i n wh i ch r e l a t ed serv i ces a re r endered .

Schedule – X : Significant Accounting Policies




119

A whol ly owned subsidiary company ‘HPCL Bi o fue l s L t d ’ has been i nco rpora t ed by ho l d i ng company Hi ndus t an

Pet roleum Corporat ion Ltd , a Government company under Companies Act , 1956, on 16 th Oct ober , 2009 a t Pa t na t o

se t up In t eg ra t ed Sugar , E t hano l & Co-gen Power P l an t s a t Sugau l i i n Eas t Champaran Di s t r i c t and Laur i ya i n

West Champaran Dist r ict in Bihar at a to tal cost of Rs.613.54 Crores .

Each o f t he above p l an t wi l l have c rush i ng Capaci t y o f 3500 TCPD, Di s t i l l e ry capac i t y 60 KLPD and Co-gen

capaci ty of 20 MW. 50% juice wi l l be conver ted to Sugar and 50% juice wi l l be conver ted to Ethanol .

1 . Le as e h old la nd

The ho ld i ng compa ny , Hindu s t an Pe t rol eum Corpora t i on Lt d , had execu t ed on 1 8 / 01 / 2009 Lease Deeds (no t

regis tered so far) as lessee wi th Bihar State Sugar Corporat ion Ltd ( the Bihar State Govt under taking) as the

lessor for the sugar uni t s at Laur iya (Dist r ict : West Champaran, Bihar) and at Sugaul i (Dist r ict :East Champaran,

B i har ) and i t s p roper t i es ( i nc l ud i ng l ease ho l d l and o f 195 .44 acres and 289 .37 acres r espec t i ve l y ) w i t h a l l

r i g h t s , e a s e m e n t s a n d a p p u r t e n a n c e s t h e r e t o , e x c e p t a n d r e s e r v i n g u n t o t h e l e s s o r a l l m i n e s , m i n e r a l s i n

and under t he sa i d l and o r any par t t here t o , fo r es t ab l i sh i ng f ac t o r i es o r manufac t u r i ng o f Et hano l , a l l i ed

sugarcane , ag r i cu l t u re r e l a t ed p roduct s , cogenera t i on and o t her pe t ro l eum p roduct s fo r Rs 45 cro res and Rs

50 Cro res r espec t i ve l y .

The Lease o f t he l and i s fo r 60 year s sub j ec t t o r enewal a t t he op t i on o f e i t her par t y fo r a per i od 30 year s

t hereaf t e r wi t hou t any paymen t ob l i ga t i on o f t he l essee o t her t han t he r en t o f Re . 1 per annum.

Lease cost has been shown under Capi tal work in progress in the Balance sheet as on 31 st March 2010 as t he

l ease deed was no t r eg i s t e red t i l l t ha t da t e .

The amount of sale proceeds of MS scrap of the plant & machinery and s t ructures sold through MSTC Ltd Rs

4 .13 Cro res has been deduct ed f rom t he above amoun t .

2 . Ad v an c e a ga in s t e qu i t y p e n d in g a llo t m e n t

Out of the Rs. 64.16 Crores received as an advance against equi ty f rom holding company Hindustan Pet roleum

Corporat ion Limi ted, Rs. 28.94 Crores was received in cash (Fund t ransfer) and balance Rs 35.22 Crores was

t he amoun t o f paymen t t o EPC con t r ac t o r s made by t he ho l d i ng company on behal f o f t he company .

3 . Ce n va t Cr e d i t

In terms of Account ing Standard 9 on “Revenue Recogni t ion” the Cenvat credi t wi l l be recognized as income

i n t he year t he company s t a r t s se l l i ng i t s p roduct s when t here wi l l be fu l l cer t a i n t y o f Cenvat c r ed i t s .

4 .

S r . D e s c r ip t ion Am ou n t

No . (Rs in Crores )

A . E s t im a t e d a m o u n t o f c on t r a c t s r e m a in i n g t o b e e xe c u t e d on c a p i ta l

a ccou n t n ot p rovid ed for 5 4 2 . 3 4

B . Cla im s a ga in s t t h e com p a n y n ot a ck n owled ged a s deb ts -

C . O t h e r C on t i n ge n t Lia b i lit ie s

(i) P er for m a n ce Gu a r a n te e is s u e d t o G ovt of B ih a r for Su ga u li U n it give n b y H PC L 6 . 9 5

(ii) P er for m a n ce Gu a r a n t ee is s u e d t o G ovt of B ih a r for La u r iya U n it give n b y H PC L 7 . 0 8

( ii i ) Corporate Gua ran tee given to the Sta te Bank of India for Agricul tu re

F in a n cin g a r r a n gem en t wit h fa r m e r s 2 .0 0

T o t a l 1 6 .0 3

D . Ma n a g er ia l Re m u n e r a tio n

Salary & Al lowances(Chief Executive Officer and Chief Finance Officer are on deputation from HPCL.

The amoun t r ep resen t s r emunera t i on f rom HPCL and deb i t ed t o t he company .

The sa l a ry i nc l udes sa l a ry , company con t r i bu t i on t o PF , LFA, Bonus , med i ca l ,

g ra t u i t y & l eave encashmen t )

E . E xp en d it u r e in For e ign Cu r r en cy -

F . E a r n in gs in For e ign Cu r r en cy -

G . C I F Va lu e of im por ts du r in g th e yea r -

H . In form at ion on ea ch cla ss of good s p u rch as ed , s old a nd s tocks d u rin g t h e yea r -

SCHEDULE – Y : NOTES ON ACCOUNTS

0 . 1 8




120

5 . R e la t e d p ar t ie s

Na tu re of r ela tion s h ip Na m e of rela ted pa r t ies

Pr om ot er s Hin d u s t a n Pet r oleu m Cor p or a t ion Lim it ed

Key Ma n a gem en t Per s on n el Sh r i B Ra jes h (CEO)

Shri G P Meena (CFO)

Rela t ive of Key Ma n a gem en t p er s on n el -

Detail s of t rans act ion b etween th e compan y and related pa r ty :

Na tu re of tra n s a ct ion HPCL

Is s u e of equ it y s h a re ca p ita l (E qu it y s h a res of Rs . 1 0 ea ch ) 1 0 0 ,0 0 ,0 0 ,0 0 0

Ad va n ce a ga in s t equ it y p en d in g a llot m en t 6 4 ,1 6 ,0 0 ,0 0 0

Am ou n t p a ya b le for E xpen s es in cu r red on b eh a lf of HBL 2 , 4 0 ,4 7 ,6 9 1

Ma np ower cos t of em ployees on d ep u ta tion a nd es ta blis hm en t exp en ses 2 ,2 2 ,1 4 ,5 56

6 . Ca sh Flo w S t a t e m e n t

The cash f l ow s t a t emen t by i nd i r ec t met hod se t ou t i n Accoun t i ng S t andard 3 on cash f l ow s t a t emen t s and

presents the cash flows by operating, investing & financing activit ies of the company. Cash & cash equivalents

p resen t ed i n t he cash f l ow s t a t emen t cons i s t o f ba l ance i n t he Bank Accoun t .

7 . De fe r re d T ax Li ab ilit y

Defer red t ax has been cons i dered i n t he accoun t s as per p rov i s i ons o f Accoun t i ng S t andard 22 , defer r ed t ax

ass et ha s n ot been recognized in accordance wi th the accoun t ing concept of prud ence.

8 . T r e at m e n t o f In c o r p or a t io n , Pr e li m i n a ry & P r e -o p e ra t i ve E x pe n s e s

As per provisions of AS-26 al l prel iminary expenses, pre- incorporat ion and pre-operat ive expenses not related

to cost of the project have been wri t ten off and charged to the Prof i t & Loss account .

9 . T h e c o m p a n y h a s n o s u n d r y c r e d i t o r s f a l l i n g u n d e r t h e M i c r o , S m a l l & M e d i u m E n t e r p r i s e s D e v e l o p m e n tAct , 2006 .

1 0 . As the company was incorporated on 16 th October 2009, profi t & loss a ccount i s dra wn for the per iod 16/ 10/

2 0 0 9 t o 3 1 / 0 3 / 2 0 1 0 . B ein g t h e 1 st year , p rev i ous year f i gu res , a r e no t shown .

1 1 . The accoun t s adop t ed by t he Board on 27 Apr i l , 2010 have been r ev i sed i n v i ew o f sugges t i ons f rom t he

Compt ro l l e r and Aud i t o r Genera l o f Ind i a as under :

a ) C a p it a l Wo r k- in - p r og re s s i n cr e a s e d b y Rs . 2 3 , 8 2, 0 9 ,3 9 6

b) Cur ren t Liab i lit ies increased by Rs . 23 ,79 ,30 ,590

c) Net Decrease in Expend it u re by Rs . 2 ,78 ,806 r esu lt ing in decrease o f Loss by Rs . 2 ,78 ,806 .

1 2 . Figures h ave been roun ded off to neares t ru pee.

SCHEDULE – Y : NOTES ON ACCOUNTS




121

Cash Flow Statement for the year ended 31 March, 2010


2 0 0 9 - 1 0

(A) CASH FLOW FROM OPERATING ACTIVITIES

1 NE T PROF IT/ (LOS S ) BE FORE TAX AND E XTRAORDINARY ITE MS (2 7 ,3 3 0 ,3 4 4 )

i) Pr e lim in a r y E xp e n s es wr it t e n off 1 3 ,1 6 4 ,1 7 0

ii) In t e r es t In com e (5 1 ,7 9 5 ) 1 3 ,1 1 2 ,3 7 5

2 OPERATING PROFIT/ (LOSS) BEFORE WORKING CAPITAL CHANGES (1 4 ,2 1 7 ,9 6 9 )

Work i ng Cap i t a l Changes

Decrea s e in Cu r ren t As s et s (E xcep t Ca s h & Ca s h E qu iva len t s ) -

In cr ea s e in Cu r r en t Lia b ilit ies 4 0 2 ,9 6 4 ,7 7 2

Decrea s e in Cu r r en t Lia b ilit ies -

In cr ea s e in Cu rr en t As set s (E xcep t Ca sh & Ca sh E qu iva len ts ) (9 1 9 ,3 2 3 ) 4 02 ,0 45 ,4 49

3 CAS H GE NE RATE D FROM OPE RATIONS BE FORE TAX 3 8 7 ,8 2 7 ,4 8 0

In c om e Ta x Pa id -

Ta x Refu n d Received - -

4 CAS H FLOW BE FORE E XTRAORDINARY ITE MS 3 8 7 ,8 2 7 ,4 8 0

Les s : E xt r a or d in a r y It em s - Pr e lim in a r y E xp en s es (1 3 ,1 6 4 ,1 7 0 )

NET CASH INFLOW/ ( OUTF LOW) FROM OPE RATING ACTIVITIES

AF TE R TAX & E XTR AOR DINAR Y ITE MS 3 7 4 ,6 6 3 ,3 1 0

(B) CASH FLOW FROM INVESTING ACTIVITIES

1 In t er es t Re ce ived 5 1 , 7 9 5

2 Pu rch a s e of F ixed As s et s & In ves t m en t s (5 ,1 6 0 ,1 3 9 )

3 Ca pit a l Wor k in Pr ogr es s - Pr oject Ma na gem en t E xp en ses (2 ,0 04 ,7 66 ,9 96 ) (2 ,0 09 ,8 75 ,3 40 )

NE T CAS H INF LOW/ (OUT F LOW) F R OM INVE S T ING ACT IVIT IE S (2 ,0 0 9 ,8 7 5 ,3 4 0 )

(C) CASH FLOW FROM FINANCING ACTIVITIES

1 Pr oceed s from Is s u e of Sh a r es 1 ,0 0 0 ,0 0 0 ,0 0 0

2 Ad va n ce a ga in s t E qu it y p en d in g Allot m en t 6 4 1 ,6 0 0 ,0 0 0

NE T CAS H INF LOW F R OM F INACING ACTIVITIE S 1 , 6 4 1 , 6 0 0 , 0 0 0

(D ) NET INCREASE/ (DECREASE) IN CASH & CASH EQUIVALENTS (A+B+C) 6 ,3 8 7 ,9 7 0

(E ) ADD: CASH & CASH EQUIVALENT AT 1 6 .1 0 .2 0 0 9 -

(F ) CASH & CASH EQUIVALE NT AS AT 3 1 .0 3 .2 0 1 0 6 ,3 8 7 ,9 7 0

As per our repor t of even date at tached



Fi rm No . 001368 C

L.K. Kejriwal

P a r t n e r

M e m b e r s h i p N o . 0 1 1 8 4 8

Place : Mumbai

Date : 21 st May, 2010

K. Mural i

D i r e c t o r

B. Rajesh

CEO & Manager

H e e n a S h a h



B . Mukher j ee

D i r e c t o r

G. P. Meena





122

I. R E GI ST RAT IO N DE TAI LS

Regis t r a t ion No : U2 4 2 9 0 BR2 0 0 9 GOI0 1 4 9 2 7 Sta te Cod e: 03Ba la n ce S h eet Da t e : 3 1 .0 3 .2 0 1 0

I I. C AP I T AL R AI S E D D UR I NG TH E YE AR (Am o u n t i n R s T h o u s a n d s )

Pu b lic Is s u e : Ni l Righ t s Is s u e : Ni l

Bon u s Is s u e : N i l Pr iva t e Is s u e : 1 0 ,0 0 ,0 0 0 .0 0

II I. P O S I T IO N OF M O B IL IZ AT I O N & D E P LO YM E NT O F F UN DS ( Am o u n t i n R s T h o u s a n d s )

Tot a l Lia b ilit ies : 1 6 ,4 1 ,6 0 0 .0 0 Tot a l As s et s : 1 6 ,4 1 ,6 0 0 .0 0

Sources o f Funds

Pa id u p Ca p it a l : 1 0 ,0 0 ,0 0 0 .0 0 Res er ves & S u rp lu s : N i l

S ecu red Loa n s : N i l Un s ecu r ed Loa n s : N i l

Ad va n ce a ga in s t equ it y : 6 , 4 1 ,6 0 0 . 0 0 Defer r ed Ta x Lia b ilit y : N i l

App l i ca t i on o f Funds

Net F ixed As s e t s : 2 0 ,0 9 ,9 2 7 .1 3 In ve s t m en t s : N i l

Net Cu r ren t As s et s : (3 ,9 5 ,6 7 9 .3 5 ) Mis c e lla n eou s E xp en d it u r e : N i l

Accu mu la t ed Los s es : 2 7 , 3 5 2 .2 2

I V. P E R F O R MANC E O F T HE C O MP ANY (Am o u n t i n R s T h o u s a n d s )

Tu r n ove r : 9 7 .8 0

Tot a l E xp e n d it u r e : 2 7 , 4 2 8 .1 4

Profit / (Los s) Befor e Ta x : (2 7,3 30 .3 4)

Profit / (Los s) Aft er Ta x : (2 7,3 52 .2 2)

E a rn in g p er Sh ar e (In Rs .) : -

V . G E NE R I C NAM E S O F T H R E E P R I NC I P AL P R O DU CT S O F C O MP AN Y

(As per monetary terms)

Pa r t icu la r s Produ ct ’s Gen er ic Na m e

Item Code (ITC) : 17019100

Produ ct Des cr ip t ion : Su ga r


Produ ct Des cr ip t ion : Eth a n ol


Produ ct Des cr ip t ion : Co-gen Power

K. Mural i

D i r e c t o r

B. Rajesh

CEO & ManagerH e e n a S h a h


B. Mukher j ee

D i r e c t o r

G. P. Meena



P la c e : Mu m b a i

D a t e : 2 1 Ma y, 2 0 1 0




123

C & AG’s Comments


THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF HPCL BIO FUEL LIMITED FOR THE YEAR ENDED

31 MARCH 2010.

The prepa ra tion of finan cial sta tem ent s of HPCL Biofu els Limited for the year end ed on 31 March

2010 in accordance with the financial report ing framework prescribed under the Companies Act, 1956 is

the responsibil i ty of the management of the company. The statutory auditor appointed by the Comptroller

an d Aud itor Genera l of India u nder section 619(2) of the Compan ies Act, 1956 is respons ible for expressing

opinion on these finan cial statemen ts u nder section 227 of the Compan ies Act, 1956 based on independen t

audit in accordance with the audit ing and assurance standards prescribed by their professional body The

Insti tute of Chartered Accountants of India. This is stated to have been done by them vide their Audit

Report dated 27-04-2010.

I, on 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 HPCL Biofuel

Limited for th e year ended 3 1 March 2010. In view of the r evisions m ade in th e finan cial statem ents by the

management, as a result of my audit observations highlighted during supplementary audit as indicated in

the Note No.11 of the Notes forming part of the Accounts (Schedule Y), I have no further comments to offer

u pon or su pplement to th e Statu tory Aud itors’ Report , u nder 619(4) of the Compa nies Act, 1956.

For and on behalf of

the Comptroller and Auditor General of India

S a r i t J a f a

P r i n c i p a l D i r e c t o r o f C o m m e r c i a l A u d i t

& - Member, Audi t Board II , Mumbai

Place : Mumbai

Date : 04 J un e, 2010




125

Corporate Governance

1 . 3

P a r t i c u l a r s o f D i r e c t o r s i n c l u d i n g t h e i r a t t e n d

a n c e a t t h e B o a r d / S h a r e h o l

d e r s ’ M e e t i n g s

N a m e s o f

A c a d e m i

c

N o . o f

N o . o f

A t t e n d a n c e

D e t a i l s o f D i r e c t o r s h i p s

M e m b e r s h i p s h e l d i n

D i r e c t o r s

Q u a l i f i c

a t i o n s

B o a r d

M e e t i n g s

a t

t h e l a s t

i n

O t h e r C o m p a n i e s

C o m m i t t e e s a s s p e c i f i e d

M e e t i n g s

A t t e n d e d

A G

M

i n

C l a u s e

4 9

o f t h e

L i s t i n g

h e l d

A g r e e m e n t

F U N C T I O N A L D I R E C T O R S

S h r i A r u n

B . E . ( C h e m ) ,

8

7

Y e s

1 .

H P C L - M i t t a l E n e r g y L t d .

N i l

B a l a k r i s h n a n *

P G D B M (

I I M

2 .

H i n d u s t a n C o l a s L i m i t e d

B a n g a l o r e )

3 .

P r i z e P e t r o l e u m C o m p a n y L t d

.

4 .

H P C L - M i t t a l S e r v i c e s L t d .

S h r i S . R o y

B . E . ( M e c h . )

8

8

Y e s

1 .

H i n d u s t a n C o l a s L t d .

N i l

C h o u d h u r y

2 .

A a v a n t i k a G a s L t d .

3 .


4 .

H P C L - M i t t a l P i p e l i n e s L t d .

5 .

C R E D A - H P C L B i o f u e l L t d .

6 .

H P C L B i o f u e l s L t d

7 .

S o u t h A s i a L P G C o . P v t . L t d

.

D r . V .

B . S c . , P o s t G r a d u a t e

8

7

Y e s

1 .

C R E D A – H P C L B i o f u e l L t d .

C o n v e n o r , H R P o l i c i e s / R e m u n e r a t i o

n

V i z i a S a r a d h i

i n I n d u s t r i a

l R e l a t i o n s

C o m m i t t e e - H P C L

& P e r s o n n e

l

M a n a g e m e n

t

S h r i B .

F . C . A

8

8

Y e s

1 .

P e t r o n e t I n d i a L t d

a .

M e m b e r - A u d i t C o m m i t t e e , H P C L

M u k h e r j e e

2 .

H P C L – M i t t a l S e r v i c e s L t d .

b .

M e m b e r - I n v e s t o r s ’ G r i e v a n c e

3 .

C R E D A – H P C L B i o f u e l L t d .

C o m m i t t e e , H P C L

4 .

H P C L B i o f u e l s L i m i t e d

c . M e m b e r - H R / R e m u n e r a t i o n


d .


B i o f u e l s L i m i t e d .

e .

C h a i r m a n - A u d i t C o m m i t t e e ,

C R E D A - H P C L B i o f u e l L i m i t e d

S h r i K . M u r a l i

B . T e c h . ( C h e m i c a l

8

7

Y e s

1 .


N i l

E n g g . )

2 .

M a n g a l o r e R e f i n e r y &

P e t r o c h e m i c a l s L i m i t e d

3 .

H P C L B i o f u e l s L i m i t e d

N O N - E X E C U T I V E D I R E C T O

R S

( a ) P A R T - T I M E D I R E C T O R S

( E X - O F F I C I O )

S h r i P . K . S i n h a

I A S , M . P h i l

i n S o c i a l

8

7

-

1 .

I n d i a n O i l C o r p o r a t i o n L t d .

M e m b e r - E s t a b l i s h m e n t &

S c i e n c e s &

M a s t e r s

2 .

B h a r a t P e t r o l e u m C o r p o r a t i o n L t d .

R e m u n e r a t i o n , C o m m i t t e e o n

D i p l o m a i n

P u b l i c

D e l e a s i n g o f

A d m i n i s t r a t i o n ,

I m m o v a b l e P r o p e r t y - I O C L

P o s t G r a d u a t e i n

E c o n o m i c s

S h r i L . N . G u p t a

I A S , M A ( E c o

) , M B A

8

5

-

1 .

E n g i n e e r s I n d i a L t d .

( B i r m i n g h a m

2 .

I n d i a n S t r a t e g i c P e t r o l e u m

U n i v e r s i t y )

R e s e r v e s L i m i t e d

3 .

C e n t r a l P o l l u t i o n C o n t r o l B o a r d




126


N a m e s o f

A c a d e m i

c

N o . o f

N o . o f

A t t e n d a n c e

D e t a i l s

o f D i r e c t o r s h i p s

M e m b e r s h i p s

h e l d

i n

D i r e c t o r s

Q u a l i f i c

a t i o n s

B o a r d

M e e t i n g s

a t

t h e

l a s t

i n

o t h e r C o m p a n i e s

C o m m i t t e e s a s s p e c i f i e d

M e e t i n g s

A t t e n d e d

A G

M

i n

C l a u s e

4 9

o f t h e

L i s t i n g

h e l d

A g r e e m e n t

( b ) P A R T - T I M E D I R E C T O R S

( N O N - O F F I C I O )

P r o f . P r a k a s h

P h . D ( E c o . )

–

8

7

Y e s

1 .

U T I T r u s t e e C o m p a n y P v t . L

t d .

a .

M e m b e r - A u d i t C o m m i t t e e , H P C L .

G . A p t e * *

C o l u m b i a U

n i v e r s i t y ,

2 .

N a t i o n a l S e c u r i t i e s

b .

M e m b e r - I n v e s t o r s ’ G r i e v a n c e

P G D M - I I M ,

D e p o s i t o r y L t d .


C a l c u t t a ,

c .

C h a i r m a n - H R P o l i c i e s /

B . T e c h ( M e c h . ) – I I T ,

R e m u n e r a t i o n C o m m i t t e e , H P C L

B o m b a y

S h r i P . V .

I A S ( R e t d . ) ,

M . S c .

8

8

Y e s

I n d b a n k M e r c h a n t B a n k i n g

a .

C h a i r m a n - A u d i t C o m m i t t e e , H P C

L

R a j a r a m a n * *

( P h y s i c s ) , M

A ( M g m t ) ,

S e r v i c e s L t d .

b .

C h a i r m a n - I n v e s t o r s ’ G r i e v a n c e s

( L e e d s , U K )


c .

M e m b e r - H R P o l i c i e s / R e m u n e r a t i o n


d .

M e m b e r - A u d i t C o m m i t t e e , I n d b a n

k

M e r c h a n t B a n k i n g S e r v i c e s L i m i t e d .

D r . G i t e s h

D . S c . ( O r g a

n i c

4

4

N . A

.

H a r i t a P r o j e c t s P v t . L t d .

a .

M e m b e r - I n v e s t o r G r i e v a n c e s

K . S h a h * * *

C h e m i s t r y ) U S A , P h . D


( O r g a n i c C h

e m i s t r y )

b .

M e m b e r - H R / R e m u n e r a t i o n

G u j a r a t U n i v e r s i t y ,


M . S c . ( O r g a

n i c

c .


C h e m i s t r y ) G u j a r a t

U n i v e r s i t y

*

A

B

H

C

L

J

3 1 ,

2 0 1 0 .

* *

.

G .

A

. .

D

H

C L B

J

1 9 ,

2 0 1 0 .

* * * D

. G

D

H

C L B

D

7 ,

2 0 0 9 .




127

1 . 4 PR OFI LE S OF D IR E CT OR S :

Sh r i Ar un B a l ak r i shnan (up t o J u l y 31 , 2010 )

Shr i A r un B a l ak r i shnan i s a C hem i ca l E ng i nee r and an a l um ni o f t he I nd i an I n s t i t u t e o f

M anagem en t , B anga l o r e . H e j o i ned H PC L i n 1976 a s a M anagem en t T r a i nee . H e has he l d

var ious pos i t ions in Market ing and Corpora te funct ions around the count ry . These inc lude

posi t ions such as Regional Manager of Or issa, Director Planning - OCC, General Manager -

I n t e r na t i ona l O pe r a t i ons , G ene r a l M anage r - L ubr i can t s & Spec i a l t i e s and C h i e f G ene r a l

Manager - Di rec t Sa les .

He is credi ted wi th launching a number of successful lubr icant brands. Shr i Arun Balakr ishnan

at tended a program on Management in the Uni ted Kingdom under the Colombo Plan Program.

He has a l so a t t ended var ious seminar s and conferences r e l a t ed to Pet ro leum & Energy.

Sh r i Ar u n B a l ak r ish na n w as a ppo in t ed a s D ir ec t or (H R ) e ffec t ive 25 / 01 / 2002 . H e becam e

the Chairman & Managing Director of the Corporat ion ef fect ive Apr i l 01, 2007.Shr i P .K. S inha

Shri P.K. Sinha, Addi t ional Secretary & Financial Advisor , Minist ry of Pet roleum & Natural

Gas (MOP&NG) is a Post Graduate from Delhi School of Economics and an IAS officer of U.P.

Cadre. Shr i P.K. Sinha also holds M.Phi l in Social Sciences and Masters Diploma in Publ ic

Administ rat ion. Shr i Sinha has served both in the Central and State Governments, including

as Dist r ict Magist rate of Jaunpur and Agra Dist r icts , Commissioner of Varanasi Division and

Pr inc ipa l Secre tary , I r r iga t ion , Ut t ar Pradesh . Shr i S inha has a l so served in the Mini s t ry of

Power , Depar tment of Youth Affai rs and Spor ts in the Central Government before joining the

MOP&NG.

Shri L. N. Gupta

Sh r i L N Gu pta i s a J o in t Secre tar y (Refiner i es) in th e Min i s t ry of Pe t ro leu m a nd Natu ra l

Gas. He is an IAS Officer of Orissa Cadre and has done his M.A. in (Economics) and MBA from

B i r m i ngham U n i ve r s i t y .

He served in the Government of Or i ssa as Sub Col l ec tor , Deogarh , Pro jec t Of f i cer , DRDA,

Su nd ergarh , Man aging Director , OSTC/ Orissa Text ile Mil ls Limited, Chou dwar . He ha s a lso

se r ved a s a D epu t y Sec r e t a r y t o t he G ove r nm en t o f I nd i a , D epa r t m en t o f Pe r sonne l and

T r a i n i n g , V i c e C h a i r m a n , B h u b a n e s w a r D e v e l o p m e n t A u t h o r i t y a n d A d m i n i s t r a t o r ,

Bhubaneswar Municipal Corporat ion, Revenue Development Commissioner (Central ) , Cut tack,

Chai rman an d MD, Or issa Indu s t r i a l Inf r as t ruc tu re Development Corpora t ion , Commiss ioner

cum Sec r e t a r y , D epa r t m en t o f S t ee l and M i nes , C ha i r m an and M D , O r i s sa H ydr o Pow er

Corpora t ion and Res ident Commiss ioner , Government of Or i ssa , New Delh i .

Shr i S . R oy C houdhur y

Shri S. Roy Choudhury is a Mechanical Engineer from the University of Assam. He commencedhis career in the Pet roleum Ref ining Indust ry wi th Assam Oil Company, Digboi , a subsidiary

of Burm a Oi l Compan y. Shr i S Roy Choud hu ry joined HPCL on J un e 21, 1982 as a Const ru ct ion

E n g i n e e r .

He has held var ious posi t ions in the Company in Ref inery, Market ing (Operat ions) , Projects

and Sales Divi s ion . Those inc lude pos i t ions such as Genera l Manager (Supply , Opera t ions

& Dis t r ibut ion) , Genera l Manager (P ipe l ines) , Genera l Manager -Sales (West Zone) . He was

holding the posi t ion of Execut ive Director-Direct Sales, pr ior to his appointment as Director-

M a r k e t i n g .





128

He is credi ted wi th creat ing a Pipel ines Division in HPCL and successful ly completed several

Pipeline Projects. Also he was responsible for smooth transit ion from APM to Non-APM era interms of Product Supply and Dist r ibut ion.

Dr. V. Vizia Saradhi

Dr . V. Viz ia Saradhi has done Graduat ion and Pos t Graduat ion in Indus t r i a l Rela t ions and

Per sonnel Management f rom Univer s i ty of Andhra Pradesh . He jo ined HPCL in December

1979. Before joining HPCL, he had 4 years of experience in Bharat Heavy Plate & Vessels Ltd.

He has had a wide exposure to the Pet ro leum Indust ry over 28 year s in Human Resources

and Indust r ial Relat ions in Ref iner ies, Market ing and Corporate Divisions of HPCL.

Prior to taking over as Director (HR), Dr. V. Vizia Saradhi was Executive Director – Industrial

Relations of HPCL.

Pr o f. P r akash G. Ap t e (up t o J u l y 19 , 20 10)

Prof. Praka sh G. Apte, who joined HPCL Board effective J u ly 20, 2 007 is th e Director a nd UTI

Chair Professor at the Indian Insti tute of Management Bangalore. His special areas of interest

a r e I n t e r n a t i o n a l F i n a n c e , e x c h a n g e r a t e b e h a v i o u r , f i n a n c i a l d e r i v a t i v e s a n d r i s k

m a n a g e m e n t .

Prof. Apte holds a Ph.D in Economics from Columbai University, PGDM from IIM Calcutta and

B.Tech. f rom I IT Bombay. He has t aught Economics a t t he Vassar Col l ege , Poughkeeps ie ,

USA and Columbia Universi ty. He was a Consul tant at Edison Elect r ic Inst i tute, New York

and a Project Manager at Centron Indust r ial Al l iance, Bombay.

Prof . Apte has publ ished four books – Internat ional Financial Management , Global Business

Finance, Text Book of Econometrics and Macro Economics and several art icles in professional

journ als an d economic an d f ina ncial per iodicals. He ha s served on exper t commit tees a ppointed

by NSE, SEBI and RBI. He is also a consultant to several leading organisations in government,

pub l i c and p r i va t e s ec t o r s . H e has been a V i s i t i ng Facu l t y a t t he K a t ho l i eke U n i ve r s i t e i t

Leu ven, Belgiu m, Goteborg University, Sweden a nd S.P. Ja in Centre of Mana gement , Sin gapore.

Shr i P . V . R a j a r am an ( up t o Ju l y 19 , 2010)

Sh ri P. V. Rajara m an , who join ed HPCL Boar d effective Ju ly 20 , 200 7 is a r etired IAS Officer.

He holds Mas ter ’s d egrees in Ph ysics (Madra s Un iver s i ty) an d Man agem ent (Univer s i ty of

L e e d s , U . K ) . H e h a s w o r k e d a s D i r e c t o r i n t h e M i n i s t r y o f C h e m i c a l s a n d F e r t i l i s e r s ,

G o v e r n m e n t o f I n d i a , M a n a g i n g D i r e c t o r , I n d i a C e m e n t s L t d . , C h a i r m a n a n d M a n a g i n g

D i r ec t o r , T am i l nadu H ous i ng B oa r d , C om m i ss i one r o f Suga r and C ha i r m an and M anag i ng

Di rec tor , Tami lnadu Sugar Corpora t ion , Secre tary to the Government of Tami lnadu in the

C o m m e r c i a l T a x e s , H o m e a n d F i n a n c e D e p a r t m e n t s , D e v e l o p m e n t C o m m i s s i o n e r a n d

C ha i r m an , T am i l nadu I ndus t r i a l I nves t m en t C or po r a t i on .

Shr i B . M ukhe r j ee

Shr i Bhaswar Mukher j ee took charge as Di rec tor -Finance of HPCL ef fec t ive February 01 ,

2008 .

Shri Mukherjee is a fellow member of the Insti tute of Chartered Accountants of India. During

hi s career of over 30 year s in the organi sa t ion , he has headed severa l funct ions in F inance ,

Internal Audi t and Human Resource Development . He has dr iven the major st rategy ini t iat ive

of Balan ced Scorecard . He i s a l so a Di rector on th e Board of J o in t Ventu re Compa n ies of

HPCL.





129

Shr i B . Mukher j ee has been ac t ive ly par t i c ipa t ing in var ious seminar s and workshops , both

a t na t ional and in t erna t ional l eve l s .

Shr i K. Mural i

Shri K. Mural i s tar ted his career wi th erstwhi le Cal tex Oi l Company at Visakhapatnam which

was l a t e r na t ional i zed and merged wi th Hindustan Pet ro leum Corpora t ion Limi ted .

D ur i ng h i s l ong ca r ee r spann i ng m or e t han 30 yea r s w i t h H PC L , he has hand l ed c r i t i c a l

posi t ions in the organizat ion. Shr i K. Mural i has wide exper ience in ref inery operat ions. He

worked at var ious levels in the ref inery posi t ions. He headed both the Ref iner ies of HPCL at

M u m b a i a n d V i s a k h a p a t n a m .

Dur ing h i s t enure as head of Mumbai Ref inery , t he per formance r eg i s t e red improvement in

al l areas of operat ions. Low cost de-bot t lenecking of uni ts was under taken and path breaking

decision and making decision to uti l ize indigenous R&D for commercial applications in meeting

uni t s capaci ty and u t i l i za t ion by 20% wi th concur rent r educt ion in opera t ion expenses upto10%.

As Head of Corporate R&D, development project for HPCL, he has draf ted the proposals and

st rategies which are under implementat ion. As Director – Ref iner ies of HPCL, he has several

plans and ideas to br ing in wor ld class compet i t iveness to both the ref iner ies.

He was ins t rumenta l i n s t r a t eg iz ing and prepara t ion of in i t i a l Deta i l ed Pro jec t Repor t for

HPCL Join t Ventu re Refinery in Bhat inda , Pun jab .

Dr . Gi t esh K. Shah

Dr. Gi tesh K. Shah a Scient ist turned Management Exper t has been appointed as Non-Off icial

Part t ime Director on the Board of HPCL for a period of three years from December 7, 2009.

Ahmedabad based Dr .Gi tesh K. Shah, former Chairman of the Gujarat Alkal ies & Chemicals

Limited (GACL) did his M.Sc. , Ph.D. , D.Sc in Organic Chemist ry. The wor ld known London

based the Royal Society of Chemist ry honoured Dr . Shah wi th Char tered Scient ist , Char tered

Chemist and Fellow of the Royal Society of Chemistry (C.Sci. , C.Chem., F.R.S.C.) . He is also

member of the prest igious Dr . Vikram Sarabhai Award Commit tee. Dr . Gi tesh K. Shah noted

T e c h n o c r a t - C u m - M a n a g e m e n t E x p e r t h a s r i c h e x p e r i e n c e o f 2 0 y e a r s i n t h e f i e l d o f

Petrochem ical, Chem -informa tics, Bio-informa tics an d Nan o–Techn ology. He h as to his credit

18 r esearch paper s in r enowned in t erna t ional journal s in the f i e ld of Chemis t ry and Nano–

T e c h n o l o g y . H e i s C h a i r m a n o f H a r i t a P r o j e c t s P r i v a t e L i m i t e d , C o m p a n y e n g a g e d i n

Inf ras t ruc ture Pro jec t s and Non– Molecules .

2 . R E MUNE R AT IO N O F DIR E CT OR S :

HPCL being a Government Company, the remuneration payable to i ts whole-time directors

is approved by the Government and advices received through the Administrative Ministry,viz. , Ministry of Petroleum & Natural Gas.

The non-off icial par t–t ime Directors are paid Si t t ing Fees for Board Meet ings and Board

Sub- C om m i t t ee M ee t i ngs a t t ended by t hem .

HPCL does not have a policy of paying commission on profits to any of the Directors of the

c o m p a n y .

The remuneration payable to officers below Board level is also approved by the Government

of India.





130

3 . BOARD SUB-COMMITTEES :

A. Au dit Co m m it t ee :The Audi t Commit tee comprises of Non-Execut ive Directors as fol lows:

1 . Sh r i P.V. Ra ja ra m a n Non -E xecu tive In d ep en d en t Dir ec t or

2 . Prof. Pra ka s h G. Ap te Non -E xecu tive In d ep en d en t Dir ec t or

3 . Dr . Gites h K. Sh a h * Non -E xecu t ive In d ep en d en t Dir ec t or

4 . Sh r i. B. Mu k h er jee Wh ole-Tim e Dir ec t or

* : Dr . Git e sh K. Sh a h wa s in d u ct e d a s a Me m be r in t h e Au d it Co m m it t e e e ffe ct ive

2 3 . 1 2 . 2 0 0 9 . P r e s e n t l y h e i s t h e C h a i r m a n o f t h e A u d i t C o m m i t t e e .

The t e rms of r e ference of the Audi t Commi t t ee are as provided under the Companies

Act , 1956 and other appl icable regulat ions.

The scope of the Audi t Commit tee includes the fol lowing:

• Reviewing wi th Management the annual f inancia l s t a t ement s before submiss ion to

the Board .

• R ev i ew i ng w i t h t he M anagem en t , S t a t u t o r y A ud i t o r s and I n t e r na l A ud i t o r s , t he

adequacy of in t erna l cont ro l sys t ems.

• Reviewing the adequacy of in t erna l audi t funct ion , i nc luding the s t ruc ture of the

i n t e r n a l a u d i t d e p a r t m e n t , s t a f f i n g a n d s e n i o r i t y o f t h e o f f i c i a l h e a d i n g t h e

depar tment , r epor t ing s t ruc ture , coverage and f r equency of in t erna l audi t .

• Discussions with internal auditors on any significant f indings and follow up thereon.

• Reviewing the f indings of any in t erna l inves t iga t ions by the in t erna l audi tor s in to

mat ters where there i s suspected f raud or i r regular i ty or a fai lure of internal control

sys t ems of a mater i a l na ture and r epor t ing the mat t er to the Board .

• Reviewing the Comp an y’s f ina ncia l an d r i sk m an agemen t pol ic ies .

The Committee, at the meeting held on May 26, 2010 reviewed the Accounts for the year2009-10, before the Accounts were adopted by the Board.

D a t e s w h e n A u d i t C o m m i t t e e M e e t i n g s h e l d :

0 2 / 0 6 / 2 0 0 9 2 9 / 0 7 / 2 0 0 9 1 1 / 0 9 / 2 0 0 9 2 8 / 1 0 / 2 0 0 9

1 6 / 1 2 / 2 0 0 9 2 7 / 0 1 / 2 0 1 0 1 5 / 0 3 / 2 0 1 0

A t t e n d a n c e a t t h e A u d i t C o m m i t t e e M e e t i n g s :

Na m e of No . o f No. of % o f

t h e Me m be r s Me e t in gs h e ld Me e t in gs a t t e n d e d At t e n d a n c e

Sh r i P.V. Ra ja ra m a n ** 0 7 0 7 1 0 0

Prof. Pra ka sh G. Apte 0 7 0 7 1 0 0

Dr. Gitesh K. Sh a h * 0 2 0 2 1 0 0

Sh r i B. Mu kh er jee 07 07 100

* : Dr . Git e sh K. Sh a h wa s in d u ct e d a s Me m be r o f t h e Au d it Co m m it t e e e ffe ct ive

2 3 / 1 2 / 2 0 0 9 & as C h a ir m a n o f t h e Co m m it t e e e ffe c t i ve 2 6 . 0 5 . 2 0 1 0 .

** : Sh r i P. V. Ra ja ra m a n co n t in u e d t o be a Me m be r o f t h e Au d it Co m m it t e e.

B. Co m m i t t ee o n HR – P olic ie s / R em u n e r a t io n

The Company has cons t i tu t ed the Board Sub - Commi t t ee on HR Pol i c i es to look in to

va r i ous a spec t s i nc l ud i ng r em uner a t i on a s w e l l a s C om pensa t i on and B ene f i t s f o r t he

e m p l o y e e s .





131

The Committee comprises of:

1 . Prof. Pra ka s h G. Ap te Non -E xecu tive In d ep en den t Dir ect or

2 . Sh r i P.V. Ra ja ra m a n Non -E xecu tive In d ep en d en t Dir ect or

3 . Dr . Gites h K. Sh ah * Non -E xecu tive In d ep en d en t Dir ect or

4 . Dr . V. Vizia Sa ra dh i Wh ole -Tim e Dir ec t or

5 . Sh r i B. Mu k h er jee ** Wh ole -Tim e Dir ec t or

* : Dr . Git e s h K. S h ah h a s be e n in d u c t ed in t h e Co m m i t t ee e ffe c t iv e 2 3 .1 2 .2 0 0 9

** : S h ri B. Mu k h e r je e h a s be e n in d u c t e d in t h e C o m m i t t e e effe c t iv e 1 8 .0 8 .2 0 0 9

Da t e s w h e n H R -P o li c ie s / R e m u n e r a t i o n C om m i t t e e M e e t i n g s h e l d:

1 5 / 0 4 / 2 0 0 9 2 8 / 1 0 / 2 0 0 9 1 5 / 0 3 / 2 0 1 0

Pr of. Prakash G. Apte is the Chairman of the Committee. Dr. V. Vizia Saradhi, Director-

Human Resources , i s t he Convenor of the Commi t t ee .

C. In ve st m e n t Co m m it t ee :

The Company had cons t i tu t ed the Inves tment Commi t t ee wi th the fo l lowing Members .




4 . Sh r i B. Mu k h er jee Wh ole- t im e Dir ec t or

P r o f . P r a k a s h G . A p t e i s t h e C h a i r m a n o f t h e C o m m i t t e e . T h i s C o m m i t t e e r e v i e w s

i nves t m en t p r oposa l s be f o r e t hey a r e p l aced be f o r e t he B oa r d f o r i t s cons i de r a t i on .

* : Dr . Git e s h K. Sh a h w as in d u c t ed in t h e C om m it t e e e ffe c t iv e 23 .1 2 .2 0 0 9 .

D a t e s w h e n I n v e s t m e n t C o m m i t t e e M e t t i n g s h e l d :1 5 .0 4 .2 0 09 1 8 .0 6 .2 00 9 2 9 .0 7 .2 00 9 1 1 .0 9 .2 00 9

0 8 .1 0 .2 0 09 1 6 .1 2 .2 00 9 2 1 .0 1 .2 01 0

Na m e o f No . of No. o f % o f

t h e Me m be r s Me e t in gs h e ld Me e t in gs a t t e n d e d At t e n d a n c e

Sh ri Pra k a s h G. Ap te 0 7 0 7 1 00

Sh r i P.V. Ra ja ra m a n 0 7 06 8 6

Dr. Gites h K. Sh a h 0 1 0 1 1 00

S h r i B. Mu k h er jee 0 7 0 7 1 00

D. In v es t o r Gr ie va n c e Co m m i t t ee :

T he C om pany has cons t i t u t ed an I nves t o r G r i evance C om m i t t ee com pr i s i ng o f N on-Executive Directors as follows :




4 . Sh r i B. Mu k h er jee Wh ole- t im e Dir ec t or

* : Dr . Gi t e s h K. S h a h wa s in d u c t e d as Me m b e r o f t h e In v e s t o r Gr ie va n c e s

C o m m i t t e e e f f e c t i v e 2 3 . 1 2 . 2 0 0 9 .





132

Shr i P .V. Rajaraman i s the Chai rman of the Commi t t ee .

T h e C o m m i t t e e r e v i e w s t h e s t a t u s o f I n v e s t o r G r i e v a n c e s a n d S e r v i c e s a n d o t h e rimpor tant mat t er s of inves tor s ’ i n t e r e s t .

D a t e s o f I n v e s t o r G r i e v a n c e C o m m i t t e e M e e t i n g s :

02 .0 6 .2 0 09 2 9 .0 7 .2 00 9 2 8 .1 0 .2 00 9

21 .0 1 .2 0 10 1 5 .0 3 .2 01 0

E . R e m u n e r a t io n C o m m it t ee :

HPCL earlier did not feel the need for a Remuneration Committee in view of the fact that

the Company is a Government Company as per Sect ion 617 of the Companies Act , 1956

and s i nce t he r em uner a t i on o f t he W ho l e - T i m e Func t i ona l D i r ec t o r s a r e f i xed by t he

Government of India.

However , ha ving r egard to th e as pect s cover ing wage r evi s ions / o ther ben efi t s t o theOfficers arising from time to t ime, the Board has renamed the Committee on HR Policies

a s H R Po li ci es / R em u ner a t i on C om m i t t ee . The s a i d C om m i t t ee cons i de r s p r opos a l s

tha t a r e r equi r ed to be r efer r ed to Remunera t ion Commi t t ee .

The detai ls of Remunerat ion paid to al l the Funct ional Directors are given below:

T h e r e m u n e r a t i o n o f t h e w h o l e t i m e F u n c t i o n a l D i r e c t o r s i n c l u d e b a s i c s a l a r y ,

a l lowances and perqui s i t es as de termined by the Government of India . Moreover ,

t hey a r e en t i t l ed t o p r ov i den t f und and supe r annua t i on con t r i bu t i ons a s pe r t he

rules of the Company.

The gross va lue of the f ixed component of the r emunera t ion , as expla ined above ,

pa id to the whole- t ime Funct ional Di rec tor s , dur ing the f inancia l year 2009-10 i s

given below:(F igures in Rs . )

Nam e of t h e Sa la r ie s & Co n t r ibu t io n Con t r ibu t ion t o Ot h e r T o t a l

Dir e c t o r Al lo wa n c e s t o P r o vid e n t Su p e r a n n u a t ion Be n e fi t s

F u n d Fu n d a n d

G r a t u i t y

Ar un B a la k r i shna n 2 1 ,5 1 ,3 5 6 2 ,3 0 ,9 4 6 47 ,158 7 ,1 7 ,0 9 4 3 1 ,4 6 ,5 5 4

(Chairman & Managing

Director)

S . R oy C houdhur y 2 4 ,9 5 ,7 5 6 2 ,4 7 ,6 6 3 47 ,158 1 4 ,1 9 ,7 3 3 4 2 ,1 0 ,31 0

(Director – Marketing)

Dr. V. Vizia Saradhi 2 1 ,3 2 ,5 7 0 2 ,1 5 ,7 7 7 47 ,158 6 ,8 1 ,0 1 1 3 0 ,7 6 ,5 1 6(Director-HR)

B. Mukher jee 1 7 ,1 6 ,7 0 2 2 ,0 7 ,2 1 0 47 ,158 7 ,4 3 ,3 6 7 2 7 ,1 4 ,4 3 7

(Director-Finance)

K. M ur a l i

(Director -Refin er ies ) 17 ,5 9 ,8 2 2 2 ,0 2 ,9 3 6 47 ,158 4 ,7 3 ,2 5 7 2 4 ,8 3 ,1 7 3





133

4 . S IT TING F E ES F OR TH E YE AR 2 0 0 9 - 1 0 :

The detai ls of Si t t ing Fees paid to Par t - t ime Independent Directors for the year 2009-10 for

a t t en ding the Board / Su b-commi t t ee meet ings a re given be low:

(F igures in Rs . )

De t ails of Me et in gs Sh ri P.V. Ra ja ra m an Prof. Pra ka sh G. Ap te Dr. Git es h K. Sh ah

Board 1 ,6 0 ,00 0 1 ,4 0 ,00 0 80 ,000

Au d it 1 ,0 5 ,00 0 1 ,0 5 ,0 0 0 30 ,000

H R/ Rem u n er a t ion 45 ,000 45 ,000 15 ,000

In ves t or Gr ieva n ces 75 ,000 75 ,000 30 ,000

In ve s t m e n t 9 0 ,0 00 1 ,0 5 ,00 0 15 ,000

Tot a l S it t in g fe e s p a id 4 ,7 5 ,0 0 0 4 , 7 0 , 0 0 0 1 , 7 0 , 0 0 0

5. PART TIME DIRECTORS’ SHAREHOLDING :

None of the non-officio and ex-officio Directors of the Corporation are holding any shares in

the Corpora t ion .

6 . R IG HT TO INFO RMAT IO N AC T 200 5 :

The Right to Informat ion Act , 2005(RTI) became ef fect ive 12 th O c t o b e r 2 0 0 5 a n d i s b e i n g

c o m p l i e d w i t h b y H P C L . H P C L h a s h o s t e d d e t a i l e d i n f o r m a t i o n i n i t s W e b s i t e s p o r t a l

“www.hindustanpetroleum.com”, and update the same f rom t ime to t ime. Off icers across the

country, representing different Departments, have been appointed as Public Information Officers

(PIO) an d Appel la t e Auth or it i es to dea l wi th th e qu er i es r ec e ived from th e Ind ian Ci t izens

under RTI .

7 . INT EGR IT Y P ACT :

The Corporat ion h as int rodu ced “In tegr ity Pact” (IP) to enh an ce ethics / t ran spa rency in the

process of awarding contracts . An MoU has been signed wi th “Transparency Internat ional” on

J u ly 13 , 20 07. Thi s was m ade a ppl icable in th e Corpora t ion effec t ive Septemb er 01 , 200 7.

The Integr i ty Pact has now become a par t of tender documents to be signed by the Company

an d by the vendor / bidder . Du r ing the year 200 9-10 “629” nu mber of contracts f rom var iou s

Funct ions were covered under the In tegr i ty Pact .

8 . SH AR E S DE PAR T ME NT AC TI VI TI E S :

HPCL has a Shares Depar tment working under Company Secretary. I t moni tors the act ivi t ies

o f R &T Ag e n t s , M/ s . L in k In t i m e In d i a P vt . Lt d . , a n d l o o k s i n t o t h e i s s u e s r e l a t i n g t o

sh areholder s . Share t r ans fer s , Demater ia l isa t ion , t r ans miss ions an d o ther impor tant m at t er s

are approved by the Share Transfer Commi t t ee .

P r e s e n t l y , H P C L h a s a b o u t 9 7 0 8 6 s h a r e h o l d e r s . T h e C o r p o r a t i o n i n t e r a c t s w i t h t h e

sh a r eh o lde r s t h r ou gh l et t e r s , i nves t o r s ’ m ee t s , a t t he AG M , w her e i n i n fo r m a t i on on t h e

a c t i v i t i e s o f t h e C o r p o r a t i o n , i t s p e r f o r m a n c e a n d i t s f u t u r e p l a n s a r e p r o v i d e d t o t h e

S h a r e h o l d e r s .

The Company has been taking appropr iate steps to ensure that Shareholder related act ivi t ies

are g iven du e pr ior ity and a l l r e ferences / r epresen ta t ions a re r eso lved a t t h e ear l ies t .

T h e C o m p a n y S e c r e t a r y o f t h e C o r p o r a t i o n i s t h e C o m p l i a n c e O f f i c e r i n t e r m s o f t h e

requi r ement s of The Bombay Stock Exchange Limi ted , Mumbai .





134

The quar ter ly resul ts are publ ished in the Engl ish and Vernacular newspapers. The Company

also organises Press Meets and Press Releases. The Financial Performance and other detai lsare also posted on th e Comp an y’s web-si te viz. www.hind u sta np etroleu m.com .

9 . During the year 2009-10, there were no mater ial t ransact ions wi th Directors or thei r relat ives

hav i ng po t en t i a l con f l i c t w i t h t he i n t e r e s t s o f t he C om pany a t l a r ge . T he r e have been no

instances of non-compliance by the Company or penal t ies, s t r ictures imposed on the Company

by any Stock Exchange or SEBI or any Statutory Author i ty, on any mat ters relat ing to capi tal

m ar ke t s du r i ng t he l a s t 3 yea r s .

1 0 . DETAILS OF ANNUAL GENERAL MEETINGS :

10.1 Locat ion an d t ime, of the l as t t h ree Meet ings h e ld :

Ye a r Lo c a t io n Da t e T im e

20 08 -09 Y.B. Ch a va n Au d itor iu m , Mu m b a i 2 8 .0 8 .0 9 1 1 .00 a .m .

2007-08 Ra m a Wa tu m u ll Au d itor iu m , Mu m b a i 2 2 .0 9 .0 8 11 .00 a .m .20 06 -07 Y.B. Ch a va n Au d itor iu m , Mu m b a i 06 .09 .0 7 3 .00 p .m .

10.2 Whether Specia l Resolu t ions were put th rough pos ta l ba llo t las t year ?

Yes Special Resolut ions were put through postal bal lot dur ing the year 2009-10.

Dur ing May 2009 Corpora t ion had sought the approval of the shareholder s by pos ta l

ba l l o t f o r am end i ng t he O b j ec t s C l ause o f t he M em or andum o f A ssoc i a t i on ( Spec i a l

Resolu t ion) and a l so Crea t ion of Charge on the asse t s of the company for increased

borrowing powers. (Ordinary Resolut ion) .

O n June 2 , 2009 t he r e su l t s o f t he Pos t a l B a l l o t w e r e announced and subsequen t l y

publ i shed in the l eading News Paper s .

10 .3 Are votes p roposed to be condu cted th rough pos ta l ba llo t t h is year?

No, Not Proposed at present11 . MEANS OF COMMUNICATION :

Ha lf yea rly rep or t Pres s Ad ver tis em en ts , a dvices to S tock E xch a nges , et c.

Qu ar ter ly r es u lt s Ma in ly b u s in es s / r egion al n ews pa per s , lik e Econ om ic

Which newspapers Times, Times of India, Financial Express, Indian Express,

norm ally pu bl ish ed in Loksat t a e t c .

We b sit es wh e re q u a r t er ly www. h in d u s t a n p e t ro le u m . co m

resul t s a r e d i sp layed

Wh eth er it a ls o d is pla ys Ye s

off icial news releases &

p r e s e n t a t io n s m a d e t o

i n s t i t u t i ona l i nves t o r s /

a n a l y s t s

Wh et h e r Ma n a gem en t Ye s

Discuss ion & Analys i s

Repor t i s a par t of Annual

Repor t

Wh e t h er s h a r e h old e r Yes , S h ar eh old er in for ma tion h a s been in cor por at ed in t h e

in fo rm a t io n s ec t io n fo rm s An n u a l Re po rt .

part of Annual Report





135

1 2 . GENERAL SHAREHOLDER INFORMATION :

1 2 . 1 5 8 t h A n n u a l G e n e r a l M e e t i n g

Da te a n d Tim e : Sep tem ber 16 , 2010 a t 11 .00 A.M.

Ve n u e : Y.B. Ch a va n Au d itor iu m ,

Ye s h w a n t r a o C h a v a n P r a t is h t h a n ,

G ene r a l J aganna t h r ao B hons l e M ar g ,

Mumbai – 400 021

1 2 . 2 F in a n c i a l c a le n d a r

Fin an cia l r epor t in g for Qu a rt er en din g 30 / 0 6/ 10 - En d J u l./ Au gu st 2010

Fin an cia l r epor t in g for Qu a rt er en din g 30 / 0 9/ 10 - En d Oct ./ Nov 2010

Fin an cia l r epor t in g for Qu a r t er en din g 31 / 1 2 / 10 - En d J an ./ Feb 2010

Fin an cia l r epor t in g for Qu a r t er en din g 31 / 0 3 / 11 - En d May 2011

An n u a l Ge n er a l Me et in g for ye ar en d in g 3 1 / 0 3 / 2 0 11 - Au g-S ep . 2 01 1

1 2 . 3 Da t e s o f Bo o k Clo s u re : Sep tem ber 07 , 2010 t o Sept em ber 16 , 2010

(Both Days Inclusive)

1 2 . 4 Di vi d en d p a y m e n t d a t e (t e n t a t i ve ) : S ep tem b er 2 0, 20 10

1 2 . 5 (a ) Lis t in g o n St o c k E xc h a n ge s a s o f 3 1 .0 3 .2 0 1 0 :

Th e Bom b ay S tock Exch a n ge Lt d. Th e Na tion a l S tock Exch a n ge of In d ia Ltd .

Ph ir oze J ee jeeb h oy Tower s , Exch a n ge Pla za , 5 th Floor, Plot No. C/ 1,

Da la l S t r ee t, G-Block , Ba n dra -Ku r la Com plex,

Mu m ba i – 400 001 Ba n dra (Ea s t ), Mu m ba i – 400 051

1 2.5 (b) Lis t in g fe es : Lis t i ng fee s fo r fina nc i a l yea r 2 0 1 0 - 1 1 have

been paid to the Stock Exchanges in Apr i l ,

2010 .

1 2 .6 S to ck Co de s :

BSE : 50 010 4

NSE : HINDPETRO

ISIN (for t ra din g in Dem at form ) : INE 09 4A0 10 15

1 2 . 7 S t oc k Ma rk e t Da t a :

HPCL Share Pr ice – BSE

Ye a r High Rs . Low Rs .

200 9-1 0 425 .00 2 42 .50

200 8-0 9 305 .85 1 64 .10

200 7-0 8 405 .90 2 18 .00

200 6-0 7 361 .00 2 06 .00

200 5-0 6 348 .00 2 83 .30





137

1 2 .8 Re gis t ra r s a n d Tra n sfe r Age n t s : M/ s. LINK INTIME INDIA PVT. LTD

C-13, Pannalal Si lk Mil ls Compound,LBS Marg, Bhandup (W),

Mumbai - 400 078.

1 2 . 9 S h a r e T ra n s fe r Sy s t e m

Activit ies relatin g to Sha re Tran sfers ar e carried ou t by M/ s Lin k Intime India Pvt. Ltd.

who are the Registrars and Transfer Agents of the Company having arrangements with the

Depositories viz. , National Securit ies Depository Limited (NSDL) and Central Depository

Services Limited (CDSL). The share transfers are approved by the Share Transfer Committee.

Share transfers are registered and Share Certif icates are despatched within a period of 30

days from the date of receipt of the documents which are correct and valid in all respects.

The number of shares t r ansfer r ed dur ing the l as t two year s :

2 0 0 9 -1 0 - 3 2 6 0 0

2 0 0 8 -0 9 - 3 5 0 5 0

1 2 . 1 0 S t a t u s of In v e st o r Se r vic e s :

Investor correspondence repl ied dur ing the year are as fol lows:

Na t u r e o f Co r r e s p o n d e n c e Nu m b e r

1 . Sh are Tra ns fer s a nd r ela ted is su es / D em at / Wa rra nt Con ver s ion 1 4 5

2 . Tra n s m is s ion of Sh a r es / Nom in a t ion for s h a res 7 1

3 . Is s u e of Du p lica te S h ar e Cer tifica tes / Bon u s / Rect ifica tion of s h a res 1 8 4

4 . Dividen d r ela ted is s u es / ECS / Ba n k Ma n da te 8511

5 . Requ es t for Ch a n ge of Addres s 3 476 . Ca ll Mon ey Pa ym en t Cor res pon den ce / Rem in der s / F or fe itu re Sh a r es 5

7 . R efe r ences t h r ough S t a t u t o r y / R egu la t o r y bod ie s like SE BI/ NSE /

BSE / NSDL / CDSL 1 2

8 . Ot h e r s 3 8

To t a l 9 3 1 3

All complaints received f rom SEBI, Stock Exchanges, Depar tment of Company Affai rs

etc. , have been appropr iately deal t wi th.

1 2 . 1 1 De m a t e r ia li sa t i o n of s h a r e s a n d li qu i d it y :

The total number of shares demater ial i sed as on 31.03.2010 is 16,31,68,461 represent ing

9 8 .5 6 % of s h a r e c a pit a l e xc lu d in g s h a r es h e ld b y t h e Go ve rn m e n t o f In d ia . T r a d i n g

in Equity shares of the Company is permitted only in dematerialised form, w.e.f . , February

15, 1999 as per notif ication issued by the Securit ies and Exchange Board of India (SEBI).

1 2 . 1 2 O u t s t a n d i n g GDR s / ADR s / Wa r r a n t s o r a n y c o n v e rt i ble i n s t r u m e n t s , c on v e r s io n

da t e and l i ke l y i m pac t on equ i t y

There are no out s t anding War rant s to be conver t ed in to Equi ty shares .

Detachable Tradeable Warrants i ssued alongwith publ ic i ssue shares in Apr i l 1995 were

conver ted into equi ty shares dur ing the per iod February 1997- Apr i l 1997. The Warrant

cer t i f icates were not cal led back by the Company and bear no value.





138

1 2 . 1 3 P la n t Lo ca t io n s :

The Corpora t ion has 2 Ref iner i es loca ted a t Mumbai and Visakh. I t has 101 Regionaloffices, 31 Termin als / In sta llations / Tap off Point s, 70 Depots, 44 LPG Bottl ing Plants ,

912 7 Retail out lets, 31 ASFs, 16 38 SKO / LDO Dealers an d 240 4 LPG Distribu tors etc. ,

located al l over the country.

1 2 . 1 4 Ad d re s s fo r c o rr es p on d e n c e

Regis t r a r s a n d Tr a n sfer Agen ts : Com pa ny’s Sh ares Dep a r t m en t:

M/ s .LINK INT IME INDIA P VT. LTD. H INDUS TAN P ET RO LE UM

Unit:HINDUSTAN PETROLEUM CORPORATION LIMITED

CORPORATION LTD. S h a r e s D e p a r t m e n t ,

C-13 , Pa n na la l S ilk Mills Com pou nd 2 n d Floor , Pet roleum House,

L.B.S . Ma rg, 1 7 , J a m s h ed ji Ta ta Roa d ,

Bh an du p (Wes t), Mu m ba i - 40 0 0 78 Ch u rch ga te, Mu m ba i - 4 00 02 0

Teleph on e No.: 22 – 25963838 Teleph on e No.: 022 – 2286 3204 / 320 1 /

Fa x No.: 022-25946969 3 2 3 3 / 3 2 3 9 / 3 2 0 8

E -m a il: m u m b a i@lin k in t im e .co. in Fa x No.: 0 22-22 874 55 2/ 228 4 15 73

E-m ai l : h pcl investors @h pcl .co. in

12 . 15 D IST R IB UT IO N SC HE DULE AS O N 31 . 03 . 20 10

No. of Ph ys ica l Hold in g De m a t e r ia lis e d Tot a l Sh a r eh o ld in g Pe r c e n t a ge

Sh a r e s Ho ld in g

No. of No. of No . o f No. of No. of No. of Sh a r e - Ho ld in g

Sh a r e Sh a r e s Sh a r e Sh a r e s Sh a r e Sh a r e s h o ld e r s

H o ld e r s H o ld e r s H o ld e r s

1 -5 0 0 1 0 6 4 7 1 9 2 6 8 2 8 7 9 5 6 6 8 5 6 3 4 1 7 9 0 2 1 3 1 0 4 9 0 2 4 5 9 2 .9 2 0 7 3 . 0 9 7 9

5 0 1 -1 0 0 0 5 1 4 3 7 7 0 4 0 3 7 2 1 2 7 8 6 8 2 1 4 2 3 5 3 1 6 3 8 6 1 4 . 3 6 2 1 0 .9 3 4 3

1 0 0 1 -5 0 0 0 4 5 7 1 8 7 1 2 0 0 6 3 8 5 9 6 8 4 2 0 5 1 3 9 3 1 5 5 5 2 . 1 1 2 6 1 .1 6 1 0

5 0 0 1 -1 0 0 0 0 1 6 3 0 0 1 7 8 1 2 9 9 8 4 5 1 7 9 1 3 0 6 1 4 5 0 . 1 8 4 4 0 .3 8 5 7

10001 & Above 1 1 7 3 0 7 6 7 5 0 4 0 7 1 4 6 6 5 8 6 9 4 4 0 8 3 1 9 7 3 5 4 4 4 0 . 4 2 0 2 9 4 . 4 2 1 1

T O T AL 1 1 2 0 8 1 7 5 4 5 8 7 8 9 8 5 8 7 8 1 6 3 1 6 8 4 6 1 9 7 0 8 6 3 3 8 6 2 7 2 5 0 1 0 0 . 0 0 1 0 0 . 0 0

12 .16 SHAREHOLDING PATTERN AS ON

As on : 3 1 .0 3 .2 0 1 0 3 1 .0 3 .2 0 0 9

Ca t e gory No. o f No. o f % No. o f No . of %

Sh a r e Sh a r e s Sh a r e Sh a r e s

h o ld e r s Holde rs

Pres iden t of In d ia 1 173076750 51.11 1 173076750 51.11Fin an cia l In s t itu t ion s 24 62804484 18.55 21 65959059 19.48

FIIs / OCBs 132 24458454 7.22 199 33212733 9.81

Ban ks 24 1534342 0.45 17 269614 0.08

Mu tu a l Fu n ds 114 34085330 10.07 121 29464635 8.70

NR Is 2996 913693 0.27 3037 946242 0.28

Em p loyees 786 346870 0.10 864 380545 0.11

Ot h er s 93009 41407327 12.23 94862 35317672 10.43

To t a l 9 7 0 8 6 3 3 8 6 2 7 2 5 0 1 0 0 .0 0 9 9 1 2 2 3 3 8 6 2 7 2 5 0 1 0 0 .0 0





139

1 2 . 1 7 Co de o f Co n du c t :

In compliance with the terms of clause 49 of the Listing Agreement with Stock Exchanges,

“Code of conduct for Board Members and Senior Management Per sonnel of Hindustan

Pet ro leum Corpora t ion Limi ted” has been devi sed and made ef f ec t ive 01 .01 .2006. The

purpose of this Code is to enhance fur ther ethical and t ransparent process in managing

the af fai rs of the company. This Code has been made appl icable to

a ) All Wh o le -Tim e D i re c t or s

b) Al l Non-Whole Time Directors includ ing ind epend ent Directors un der the provisions

of law and

c ) S e n io r Ma n a g em e n t P er s on n e l.

This code would be read in conjunction with the Conduct, Discipline & Appeal Rules for

Off icers appl icable to Whole t ime Directors and Senior Management Personnel .

Al l t he Board Members and Senior Management Per sonnel have provided the Annual

Compliance Cer t i f icate duly signed by them as on March 31, 2010.

1 2 . 1 8 C om p l ia n c e o f C la u s e 4 9 o f t h e Li s t in g Ag r e e m e n t

The Corporat ion is complying wi th the var ious mandatory and non-mandatory Corporate

G ove r nance r equ i r em en t s env i saged unde r C l ause 49 o f t he L i s t i ng A gr eem en t w i t h

the S tock Exchanges . Wi th r egard to appoin tment of r equi r ed number of Independent

D i r e c t o r s , t h e C o r p o r a t i o n h a s a l r e a d y t a k e n u p t h e s a m e w i t h i t s A d m i n i s t r a t i v e

Minist ry, i .e . , Minist ry of Pet roleum & Natural Gas, New Delhi , and is awai t ing thei r

adv i se on t he s am e .

DECLARATION OF THE CHAIRMAN & MANAGING DIRECTOR

This i s t o cer t i fy tha t t he company has l a id down Code of Conduct for a l l Board Members and

Senior Management of the Company and the same are uploaded on the websi t e of the company -

w w w . h i n d u s t a n p e t r o l e u m . c o m .

Fur ther cer t i f ied that the Members of the Board of Directors and Senior Members have af f i rmed

and having compl ied wi th code as appl icable to them dur ing the year ended March 31, 2010.

A r u n B a l a k r i s h n a n

C ha i r m an & M anag i ng D i r ec t o r





140

AUDITOR’S CERTIFICATE ON CORPORATE GOVERNANCE

To ,

The Board of Di rec tor s of

H i n d u s t a n P e t r o l e u m C o r p o r a t i o n L i m i t e d

We have examined the compl iance of Corporate Governance by Hindustan Pet roleum Corporat ion

Limited for the year ended on March 31, 2010 as st ipulated in Clause 49 of the Listing Agreement

o f t h e s a i d C o m p a n y w i t h S t o c k E x c h a n g e s i n I n d i a a n d t h e D P E G u i d e l i n e s o n C o r p o r a t e

Governance for Cent r a l Publ i c Sector Enterpr i ses .

The compl iance of condi t ions of Corpora te Governance i s t he r esponsib i l i t y of the management .

Our examinat ion was l imi ted to procedures and implementat ion thereof , adopted by the Company

for ensur ing the compl iance of the condi t ions of the Corporate Governance. I t i s nei ther an audi t

nor an express ion of opin ion on the f inancia l s t a t ement s of the Company.

In our opinion and to the best of our informat ion and according to the explanat ions given to us, we

cer t i fy that the company has compl ied wi th the mandatory requirements of Corporate Governance

as s t ipula t ed in Clause 49 of the abovement ioned Li s t ing Agreement and the DPE guide l ines on

Corporate Governance for CPSE except compliance of Clause 49(I)(A)(ii) of the Listing Agreement

and 3.1.2 of the DPE guidel ines relat ing to the number of Independent Directors on the Board of

Directors of the Company.

We fur ther s t a t e tha t such compl iance i s ne i ther an assurance as to the fu ture v iab i l i t y of the

Company nor the ef f iciency or ef fect iveness wi th which the management has conducted the af fai rs

of the Company.

For a n d on beh a lf of For a n d on beh a lf of

V. Sa n k a r Aiya r & Com pa n y Om Agarwa l & Com p an y

Ch a r t er ed Accou n t a n t s Ch a r t er ed Accou n t a n t s

G. Sa n k a r Th a le n d r a Sh a r m a

Pa r t n e r Pa r t n e r

(Mem b er s h ip No.4 6 0 5 0 ) (Mem b er s h ip No.0 7 9 2 3 6 )

Pla ce : Mu m ba i

D a te : J u ne 16 , 2010


HPCL AnnualReport2009-10

Documents

Transcript of HPCL AnnualReport2009-10