1.0 FIXED ASSETS
1.1 Land belonging to the Company, the book value of which is Rs.
409.21 lakh and which was stated as leasehold till last year is now
re-stated as freehold. Hence, the entire land of the Company is now
classified as Freehold land. There is no financial impact on account of
1.2 The LPG Bottling Plant continued to be operated by Indian Oil
Corporation Ltd., the Holding Company under an operational agreement.
The related income on this account is credited to Profit & Loss
1.3 The Kerosene Treating Unit (KTU), which was retired from active
service with effect from 21-06-2003 and fully provided for in the
accounts during the year 2003-04 has since been dismantled and is
2.0 CURRENT ASSETS, LOANS & ADVANCES AND LIABILITIES
2.1.1 Stores valuing Rs. 919.65 lakh (previous year Rs.1014.38 lakh)
have not moved for more than 3 years, of which Rs 842.27 lakh (previous
year Rs.869.00 lakh) have not moved for more than 5 years.
2.1.2 Stores valued at Rs. 231.72 lakh (previous year Rs. 264.30 lakh)
are identified as surplus as at the end of the year. During the year
surplus stores of Rs. 44.97 lakh (previous year Rs. 61.53 lakh) was
2.1.3 During the year obsolete / unserviceable / non-moved items
amounting to Rs. 3.66 lakh (previous year Rs.51.19 lakh) was written
2.1.4 Due to the change of accounting policy (refer 6.3.1 of
Schedule-Q), no general provision for loss is made for capital
stores. The impact on the profit before tax is Rs. 206.67 lakh.
2.2 Loans and advances recoverable from employees include an amount of
Rs. 22.29 lakh due from Directors (previous year Rs.7.71 lakh); maximum
balance outstanding at any time during the year was Rs. 22.55 lakh
(previous year Rs. 8.77 lakh).
2.3 There are no small scale Industrial undertakings to whom amount is
outstanding for more than 30 days as at the Balance Sheet date.
2.4 The Company nas not received the required information from
suppliers regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006. Hence disclosures, if any, relating
to amounts unpaid as at the year end together with interest
paid/payable, as required, under the Act, have not been made.
2.5 Amounts receivable from and payable to M/s Indian Oil Corporation
Ltd. (Holding Company) as on 31st March, 2008 are disclosed under
relevant heads of account. The transactions with the Holding Company
and with other Oil Companies are reconciled on ongoing basis.
3.0 PROFIT & LOSS ACCOUNT
3.1 Sales include inter-alias, Excise Duty, Cess and Freight wherever
applicable (excluding sales tax amounting to Rs.9558.87 lakh; previous
year Rs. 13861.19 lakh).
3.2 Purchase of crude oil from OIL / ONGC has been accounted on the
basis of cost as determined from earlier agreement, pending
finalization of new agreement.
3.3 As required by AS-11, an amount of Rs. 3477.50 lakh (net) is
credited (Previous year Rs.1119.61 lakh) to the Profit & Loss Account
for the period as arising out of foreign currency exchange differences
in relation to payments of Ravva crude.
3.4 In view of Excise Duty concession w.e.f. 1st March, 2002 for
products cleared from North-East refineries, the profit before tax for
the year 2007-08 stood enhanced by Rs. 53742.31 lakh (previous year
3.5 Pursuant to the Single Bench Order dated 17.11.2006 of Gauhati High
Court and the same having been upheld by the Division Bench of the said
Court vide Order dated 30th August 07, payment of Entry Tax has been
stopped with effect from 01.10.2006. For the refund of Entry Tax paid
up to 30.09.2006 (Rs. 19653 lakh) the Company has filed a refund claim
before the authority as per the above Order of the Division Bench. The
Company has also not provided for Entry tax on crude amounting to Rs
10943.06 lakh for the year 2007-08. Liability amounting to Rs 3927.41
lakh earlier provided for the period from 01.10.2006 to 31.03.2007 has
been written back in the books of account. Govt, of Assam has
challenged the said decision of Gauhati High Court by filing a SLP
before the Honble Supreme Court of India. The petition has been
admitted on 22nd January08 by the Honble Supreme Court and tagged
with similar issues decided by different High Courts including Gauhati
Meanwhile, the Government of Assam has passed the Assam Entry Tax Bill,
2008 in the Legislative Assembly on 13.04.2008 for levying entry tax on
different goods including crude oil. The bill has received the assent
of the Governor of Assam. The new Act also contains a saving clause by
which it is proposed to validate the actions taken under the existing
Assam Entry Tax Act, 2001 (which has been held by the Gauhati High
Court to be unconstitutional and illegal) for levy / collection of
entry tax under the said Act. The Act is yet to be enforced, and the
Company will be at liberty to challenge the same before the Court of
Law as and when enforced.
3.6 An amount of Rs. 8688.09 lakh (previous year Rs.12824.77 lakh) is
charged to Profit & Loss Account towards irrecoverable sales tax on
petroleum products moved out of the State of Assam.
3.7 Share of transportation cost of Ravva Crude is receivable from NRL
and IOCL in terms of instructions of the Ministry of Petroleum and
Natural Gas. Rs. 15096.54 lakh is receivable from NRL on this account
as on 31-3-2008 (Previous Year Rs. 12170.83 lakh) out of which Rs.
13650.40 lakh (Previous Year Rs. 6026.65 lakh) is disputed by NRL for
which revenue recognition is postponed in terms of AS-9 of the ICAI.
3.8 Provision for employee benefits :
3.8.1 The gross liabilities for employees up to 31-03-2008 on account
of leave encashment - Rs. 3816.70 lakh (previous year- Rs.3306.88
lakh), medical benefits of ex-employees - Rs. 182.00 lakh (Previous
year - Rs.206.00 lakh), long service award amounting to Rs. 170.00 lakh
(previous year nil) and resettlement benefit to employees amounting to
Rs.123.00 lakh (previous year Rs. 139.00 lakh) has been provided on
actuarial valuation basis.
3.8.2 Liability for unavailed LTC for employees amounting to Rs. 389.29
lakh (previous year Rs.536.70 lakh) is provided during the year on
3.8.3 The difference between the gratuity trust fund balance of Rs
3750.23 lakh (previous year Rs. 3481.75 lakh) and the accrued liability
on account of gratuity of Rs. 2685.61 lakh (previous year Rs 3481.75
lakh), amounting to Rs. 1064.62 lakh as on 31.03.2008, on the basis of
actuarial valuation based on various assumption including Rs. 3.50 lakh
as maximum gratuity liability per employee as per Companys policy, is
recognised as asset and credited to Profit & Loss Account. (Refer
tables of point no 3.8.5 of Schedule-R)
3.8.4 Provisions for Rs 888.84 lakh has been made equivalent to adhoc
payment made to officers & staff on account of long term settlement.
3.8.5 Disclosure as per AS-15 ( Revised)
(a) Guidance issued by the Accounting Standards Board ( ASB) on
implementing AS- 15 , Employee Benefits ( revised 2005) states that
provident fund set up by employers , which requires interest shortfall
to be met by employer, needs to be treated as defined benefits plan.
The Fund does not have any existing deficit or interest shortfall.
Accordingly, other related disclosures in respect of Provident Fund
have not been made. During the year, the Company has recognised Rs.
638.47 lakh as contribution to Provident Fund in the Profit and Loss
Account (included in contribution to Provident and other Funds in
3.9 The Company, in the absence of any notification as required under
section 441A (1) of the Companies Act, 1956, has not provided any
amount towards cess for Rehabilitation and Revival Fund.
3.11.2 Contingent liabilities not provided for Rs. 13150.40 lakh
(Previous Year Rs. 11181.45 lakh) include :
(a) Rs. 1193.12 lakh (Previous Year Rs. 3079.51 lakh) in respect of
Income Tax demands.
(b) Rs. 78.15 lakh (Previous Year Rs. 2058.82 lakh) being demands
raised by the Excise authorities.
(c) Rs. 219.15 lakh (Previous Year Rs. 219.15 lakh) being demands
raised by Commissioner of Customs, Kolkata.
(d) Rs.103.37 lakh (Previous Year Rs. 144.25 lakh) in respect of legal
claims lying with High Court of Guwahati.
(e) Rs. 4212.18 lakh (Previous Year Rs. 194.30 lakh) in respect of
outstanding Letter of Credit.
(f) Rs. 7344.43 lakh (Previous Year Rs. 5485.42 lakh) in respect of
4.0 In compliance with AS-17 on Segment reporting issued by the
Institute of Chartered Accountants of India (ICAI), the required
information is given in Annexure-1 to this schedule.
5.0 Related party disclosure as per AS-18 issued by the ICAI is given
at the end of this Schedule.
6.0 Estimated amount of contracts remaining to be executed on capital
account and not provided for is Rs. 110506.43 lakh (previous year Rs.
8.1 The effects of changes in the Accounting Policy implemented by the
Company during the year have been disclosed in point no 2.1.4 as above.
8.2 The Company does not have subsidiary or associated company. The
Company is a subsidiary of Indian Oil Corporation Limited. The Company
has not made any investment in its own shares.
8.3 The meetings of the Equity shareholders, secured and unsecured
creditors of the Company held on 5th March, 2008 (as per the order of
the Honble Ministry of Corporate Affairs, Government of India) have
approved the scheme of amalgamation of BRPL with IndianOil. Subsequent
to this approval, Confirmation Petition has been filed by the Company
with the Honble Ministry of Corporate Affairs for further directions
in the matter.
8.4 The Company has not given any loans and advances in the nature of
loans to its holding company and companies/firms in which Directors of
the Company are interested.
8.5 The Company has not given any loans and advances in the nature of
loans to any company, firm, body or person (excluding employees of the
8.6 Figures for previous year have been regrouped / rearranged wherever