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Bongaigaon Refineries and Petrochemicals
BSE: 500072|NSE: BONGAIREFN|ISIN: INE241A01012|SECTOR: Refineries
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Bongaigaon Refineries and Petrochemicals is not traded in the last 30 days
Bongaigaon Refineries and Petrochemicals is not traded in the last 30 days
Mar 07
Notes to Accounts Year End : Mar '08
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
 this reclassification.
 
 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
 Account.
 
 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
 under disposal.
 
 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
 disposed off.
 
 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
 off.
 
 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
 Rs.57016.88 lakh).
 
 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
 High Court.
 
 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
 estimation basis.
 
 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
 Schedule 0-9).
 
 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
 other claims.
 
 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.
 41125.47 lakh).
 
 8.0 GENERAL
 
 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
 Company).
 
 8.6 Figures for previous year have been regrouped / rearranged wherever
 necessary.
Source : Dion Global Solutions Limited
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