The Directors take pleasure in presenting their Report on the
performance of Bharat Petroleum Corporation Limited (BPCL) for the year
ended 31st March, 2012.
The aggregate Refinery throughput at BPCLs Refineries at Mumbai and
Kochi along with that of its subsidiary company, Numaligarh Refinery
Limited (NRL) and Joint Venture Company, Bharat Oman Refineries Limited
(BORL) in 2011-12 was 26.72 Million Metric Tonnes (MMT), as compared to
24.03 MMT in the previous year. The market sales of the BPCL Group for
the year stood at 31.48 MMT, as compared to 29.58 MMT in 2010-11. The
group exported 3.49 MMT of petroleum products during the year as
against 2.61 MMT in 2010-11.
The BPCL group recorded a Gross Revenue from Operations of Rs.
2,23,314.64 crores as compared to Rs. 1,66,104.22 crores in 2010-11. The
Profit after Tax for the year 2011-12 stood at Rs. 851.28 crores as
against Rs. 1,742.06 crores in the previous year. After setting off the
minority interest, the Group earnings per share was of the order of Rs.
21.60 in the current year as compared to Rs. 45.22 in 2010-11.
CONSOLIDATED GROUP RESULTS
Crude Throughput (MMT) 26.72 24.03
Market Sales (MMT) 31.48 29.58
Financial Performance Rs. Crores
Gross Revenue from Operations 2,23,314.64 1,66,104.22
Less: Excise Duty Paid (11,175.08) (12,339.31)
Net Revenue from Operations 2,12,139.56 1,53,764.97
Gross Profit 6,269.32 5,986.47
Finance Cost 2,259.06 1,265.62
Depreciation & amortization expense 2,410.83 1,891.36
Profit before tax 1,599.43 2,829.49
Provision for taxation - Current
(Net of MAT Credit Entitlement) 409.35 820.27
Profit after Current Tax 1,190.08 2,009.22
Provision for taxation - Deferred 331.63 185.09
Short provision for Taxation in earlier
years provided for 7.17 82.07
Net Profit 851.28 1,742.06
Minority Interest 70.45 107.10
Net Income of the group attributable to BPCL 780.83 1,634.96
Group Earnings per share attributable to
BPCL (Rs.) 21.60 45.22
Crude Throughput at Mumbai and Kochi
Refineries (MMT) 22.91 21.78
Market Sales (MMT) 31.14 29.27
Revenue from Operations - Gross 2,22,500.47 1,63,312.60
Gross Profit before Depreciation,
Interest and Tax 5,568.63 5,167.32
Finance Cost 1,799.59 1,117.03
Depreciation & amortization expense 1,884.87 1,655.40
Profit before tax 1,884.17 2,394.89
Provision for Taxation - Current
(Net of MAT Credit Entitlement) 178.07 610.24
Provision for Taxation - Deferred 393.01 148.24
Short provision for taxation in earlier
years provided for 1.82 89.73
Net Profit 1,311.27 1,546.68
Balance brought forward 500.00 181.06
Amount available for disposal 1,811.27 1,727.74
The Directors propose to appropriate this
amount as under:
Final (proposed) Dividend 397.70 506.16
Towards Corporate Dividend Tax 57.16 71.08
For transfer to General Reserve 856.41 650.50
Balance carried to Balance Sheet 500.00 500.00
Summarized Cash Flow Statement :
Inflow/(Outflow) from operations 925.84 3,081.87
Inflow/(Outflow) from investing activities (890.54) 1,750.50
Inflow/(Outflow) from financing activities (4,713.14) (1,817.00)
Net increase/(decrease) in cash & cash
equivalents (4,677.84) 3,015.37
BPCL''s revenue from operations for the year 2011-12 stood at Rs.
2,22,500.47 crores reflecting an increase of 36.24% over the previous
year when the Company''s revenues from operations amounted to Rs.
1,63,312.60 crores. Sales in volume terms increased from 29.27 MMT in
2010-11 to 31.14 MMT in 2011-12, reflecting an increase of 6.39% over
the previous year. The profit before tax for the year was Rs. 1,884.17
crores as compared to Rs. 2,394.89 crores in 2010-11. After providing for
tax, (including deferred tax) of Rs. 572.90 crores as against Rs. 848.21
crores during the last year, the profit after tax for the year stood at
Rs. 1,311.27 crores as against Rs. 1,546.68 crores recorded in 2010-11.
The Board of Directors has recommended a dividend of 110% (Rs. 11 per
share) for the year on the paid-up share capital of Rs. 361.54 crores
which will absorb a sum of Rs. 454.86 crores out of the profit after tax
inclusive of Rs. 57.16 crores for Corporate Dividend Tax on distributed
profits. BPCL''s net worth as on 31st March, 2012 stands at Rs.
14,913.86 crores, as compared to Rs. 14,057.62 crores as at the end of
the previous year.
The Board of Directors at its meeting held on 25th May, 2012 has
recommended for the approval of Shareholders the issue of Bonus Shares
in the ratio of 1:1 i.e. one new bonus equity share of Rs.10 each for
every one equity share of Rs.10 held by the shareholders by capitalizing
the reserves. The issue of Bonus Shares in the ratio of 1:1, has been
approved by the Shareholders resulting in capitalisation of a sum of Rs.
361.54 crores. Accordingly the Paid-up Equity Capital of the Company
presently stands increased to Rs. 723.08 crores from the pre-bonus level
of Rs. 361.54 crores. These Bonus Shares rank pari passu in all respects
with the existing shares except that these Bonus Shares shall not be
eligible for dividend for the year ended 31st March, 2012.
The earnings per share amounted to Rs. 36.27 in 2011-12 as compared to Rs.
42.78 in 2010-11. Internal cash generation during the year was higher
at Rs. 3,134.99 crores as against Rs. 2,759.31 crores in 2010-11. BPCL''s
contribution to the exchequer by way of taxes and duties during 2011-12
amounted to Rs. 35,994.30 crores, as against Rs. 36,010.08 crores in the
previous financial year.
Borrowings from banks increased from Rs. 16,088.57 crores as at 31st
March, 2011 to Rs. 20,749.94 crores at the close of the current financial
year. Loans from Oil Industry Development Board decreased to Rs. 743.75
crores as at 31st March, 2012 from a level of Rs. 871.75 crores as at the
end of the previous year. Debentures worth Rs. 1000 crores issued during
the year 2009-10 remained outstanding as on 31st March 2012.
The amount of deposits, matured but unclaimed, at the end of the year
was Rs. 0.19 crores, which pertains to 16 depositors.
The total Capital Expenditure during the year 2011-12 amounted to Rs.
2,761.81 crores as compared to Rs. 2,532.20 crores during the year
The Comptroller and Auditor General of India (C&AG) has no comment upon
or supplement to the Statutory Auditors'' Report on the Accounts for the
year ended 31st March, 2012. The letter from C&AG is annexed as
During the year 2011-12, Mumbai Refinery achieved a throughput of 13.35
MMT of feedstock (crude oil and other feedstock) as against 13.02 MMT
achieved in 2010-11. This was the highest throughput ever achieved by
the refinery in a single year and represents capacity utilization of
111% as compared to 108% in the previous year.
During the year, the refinery achieved its highest ever production of
Aviation Turbine Fuel (ATF), Propylene (C3), Motor Spirit (MS), High
Speed Diesel (HSD), Methyl Tertiary Butyl Ether (MTBE), Bitumen,
Furnace Oil and Lube Base Oils. Mumbai refinery continued to meet the
demand for MS and HSD complying with Euro IV quality norms. Mumbai
Refinery also achieved the landmark of cumulative production of Lube
Base Oil crossing the 1 million metric tonne mark since the
commissioning of the LOBS unit.
The gross refining margin (GRM) for the year stood at USD 3.12 per
barrel as compared to USD 4.23 per barrel realized in 2010-11. The
overall gross margin for the refinery in 2011-12 amounted to Rs. 1,503
crores as compared to Rs. 1,885 crores in 2010-11. Lower GRM in 2011-12
is due to crude cost variation, increase in octroi cost, abolition of
custom duty on imported crude and reduction in duty on finished
product, higher export loss and impact of higher prices of Regasified
Kochi Refinery achieved a crude throughput of 9.56 MMT during this year
as compared to 8.76 MMT in 2010-11. This was the highest throughput
ever achieved by the refinery in a single financial year. During the
year, the refinery achieved its highest ever production of Liquefied
Petroleum Gas (LPG), ATF, C3, MS meeting Euro III standards and
Bitumen. The refinery earned a GRM of USD 3.20 per barrel in 2011-12 as
against a GRM of USD 4.83 per barrel in 2010-11. This translates into a
total GRM of Rs. 1,099 crores as compared to Rs. 1,446 crores in 2010-11.
The lower GRM for the year 2011-12 can be attributed to higher export
loss and crude and product rate variations. The capacity utilization
for the year 2011-12, being the first year of operations after
commissioning all the units as part of Capacity Expansion and
Modernization Project (CEMP) Phase II, stood at 100.6% as compared to
103.1% achieved in the previous year.
The details of the performance of the Refineries, their activities and
future plans are discussed in the Management Discussion and Analysis
MERGER OF KRL WITH BPCL As informed in the last year''s Report, merger
of the erstwhile Kochi Refineries Limited (KRL) with BPCL under
Sections 391 to 394 of the Companies Act 1956 had been completed,
following receipt of the Order dated 18th August 2006 issued by the
Ministry of Company Affairs, New Delhi. One of the Shareholders of the
erstwhile KRL had filed a Writ Petition in the Delhi High Court
challenging the merger, and the same is pending as on date.
During the year 2011-12, BPCL''s market sales volume touched a level of
31.14 MMT, as compared to 29.27 MMT in the previous year. This
represents a growth of 6.39% over the previous year. BPCL''s market
share amongst public sector oil companies stood at 22.40% as at 31st
March, 2012 as compared to 22.34% as at the end of the previous year.
A detailed discussion of the performance of the Marketing function is
given in the MD&A.
Central India Refinery Project
Bharat Oman Refineries Limited (BORL), promoted by BPCL and Oman Oil
Company (OOC) has commenced operations of its 6 MMTPA grass roots
refinery at Bina. BPCL has an equity stake of 50% in BORL, which has a
paid up capital of Rs. 1,777.23 crores. BPCL has also given a loan of Rs.
1,354.10 crores and subscribed to 78.61 crores warrants, representing
the right to subscribe to 78.61 crores equity shares of Rs. 10 each at a
later date at a cost of Rs. 935.68 crores. Till the time the total equity
of BORL is tied up, BPCL and OOC will each hold 50% shares in BORL. On
a future date, BPCL and OOC will hold 49% and 26% respectively in the
fully diluted equity of BORL. The refinery became operational in May
2011. After the initial period of stabilizing its operations, the Bina
refinery has started meeting BPCLs product requirements in the northern
and central regions of the country. This will help in reducing BPCL''s
dependence on other oil companies and imports for making available
product to meet the demand in these markets. BORL recorded a sales
turnover of Rs. 7,551.56 crores in the financial year ended as on 31st
March, 2012. During the financial year 2010-11, there was other income
of Rs. 12.24 crores. The net loss for the year stood at Rs. 1,115.98
crores as compared to Rs. 66.10 crores in the previous year.
Bina Product Despatch Terminal The Bina Product Despatch Terminal was
designed to facilitate the marketing of products from the new BORL
refinery at Bina. The despatch terminal was constructed with a tankage
of 4.45 lakh kilolitres (Kls) for storing White Oils, 10 bay road
loading gantry for White Oils and single spur full rake rail loading
gantry for White Oils, 8400 MT LPG mounded storage, 5 bay road loading
gantry for LPG, 12 Km long railway siding and other associated
infrastructural facilities, adjacent to the Bina refinery. All
facilities at the terminal are commissioned and put to use in stages,
in synchronization with the receipt of finished products from BORL
refinery. Despatches of finished products through road, railway and
Bina-Kota cross country pipeline are being done regularly. Bulk LPG
Despatches through road are also being done. The Company has
despatched 98 TMT of bulk LPG by road, 890 TMT of White Oils by
pipeline, 15,572 Kls of White Oils by road and 681 Bogie Type POL tank
Wagon (BTPN) rakes of White Oils by rail from Bina Despatch Terminal
The approved cost of the project is Rs. 639.11 crores and the cumulative
expenditure as on 30th June, 2012 stood at Rs. 614.78 crores.
Bina Kota Product Pipeline
The project, with an approved cost of Rs. 405.82 crores involved laying
of an 18 (45.72 cms) dia. 257 Km long cross-country product pipeline
from Bina to Kota, to facilitate the economic evacuation of MS, HSD,
SKO and ATF from the Bina refinery. The pipeline is designed for an
initial throughput of 2.8 MMTPA and will be connected to the existing
multi-product Mumbai-Manmad-Manglia- Piyala-Bijwasan pipeline at Kota
to facilitate distribution of products to the markets in northern
India. The pipeline was successfully commissioned in synchronization
with availability of product from BORL refinery in the month of
September 2011. The cumulative expenditure on the project as on 30th
June, 2012 stood at Rs. 393.88 crores. Capacity Augmentation of
Kota-Piyala Section of MMBPL Pipeline
The project envisages enhancement of capacity of the Kota-Piyala
section of the Mumbai-Manmad-Manglia- Piyala-Bijwasan pipeline from 2.8
MMTPA to 4.4 MMTPA, to evacuate products from Bina refinery and also to
meet the growing demand for petroleum products in the northern region.
The estimated cost of the project is Rs. 152.89 crores. The project has
achieved an overall physical progress of 34.7% and is expected to be
mechanically completed by June 2013. The cumulative expenditure as on
30th June, 2012 stood at Rs. 7.19 crores.
Kota Jobner Pipeline Project The project envisages laying of a 210 Km
long and 14 (35.6 cms) dia. cross-country pipeline from Kota to
Jobner (near Jaipur) for economic transportation of MS / SKO / HSD from
BPCL''s Mumbai Refinery as well as BORLs refinery at Bina. The
estimated as-built project cost is Rs. 276.27 crores.
Work on the detailed route survey, soil studies and cadastral surveys
for the proposed pipeline route has been completed. The project is
expected to be completed within 24 months from receipt of the clearance
from the Petroleum & Natural Gas Regulatory Board (PNGRB). The Company
has submitted bid to PNGRB in this regard. Integrated Refinery
Expansion Project (IREP) at Kochi Refinery
The Integrated Refinery Expansion Project (IREP) at Kochi Refinery
envisages increasing the refinery capacity from the present 9.5 MMTPA
to 15.5 MMTPA and modernization of the refinery facilities to produce
auto fuels conforming to Euro IV / Euro V specifications and
upgradation of the residue streams to distillates and Petcoke. The
project is estimated to cost around Rs. 14,225 crores. The project will
be completed within 42 months from the receipt of environment
Licensor selection for process units like the Delayed Coker Unit (DCU),
VGO Hydro Desulphurisation Unit (VGO HDT) and Diesel Hydro
Desulphurisation Unit (DHDT) have been completed. The Fluid Catalytic
Cracking Unit (FCCU) Licensor selection activities are in progress. The
Design and Engineering Package preparation of these and various open
art units by M/s. Engineers India Limited (EIL), the Project Management
Consultants, are in progress. Site grading activities are currently in
progress at the refinery site.
Continuous Catalytic Regeneration Reformer (CCR) Facilities and
Hydrocracker Revamp at Mumbai Refinery
The project has been undertaken to increase the production of Euro III
/ Euro IV grade MS and HSD at Mumbai Refinery. This involves revamping
of the Hydrocracker Unit to increase its capacity from 1.75 MMTPA to
2.0 MMTPA and setting up of a new Continuous Catalytic Regenerator
Reformer Unit (CCR) of 1.2 MMTPA capacity with matching new Naphtha
Hydro Treater Unit (NHT) and new Pressure Swings Adsorber (PSA) Units
and other utilities/offsite facilities at a cost of Rs. 1,827 crores. The
project has achieved an overall progress of 73.96% with a cumulative
expenditure of Rs. 611.55 crores as on 30th June 2012. The project is
expected to be completed by April 2013. The Hydrocracker revamp has
been completed with the exception of installation of one reboiler. The
Engineering and Procurement activities for the project are nearing
completion, the equipment foundation work is completed and construction
activities of the Fired Heaters and Regeneration package, fabrication/
erection of piping and equipment erection are in progress.
Replacement of CDU /VDU at Mumbai Refinery The project envisages
replacement of old crude distillation and vacuum units by a
state-of-the-art integrated Crude and Vacuum Distillation Unit (CDU /
VDU) of 6 MMTPA capacity to improve mechanical integrity and enhance
safety and the environment. The total project cost is estimated at Rs.
1,419 crores. EIL has been retained as Process Licensor and EPCM
Consultant. The process design has already been completed and detailed
engineering activities are in progress. The order has been placed for
the Crude and Vacuum Column, which are critical items. Tendering
activities for Desalters, Heat Exchangers and Vessels are in progress.
The scheduled completion of the project is December 2014.
LPG Import Facilities at JNPT with Strategic Storage at Uran
The project envisages the development of Cryogenic LPG import
facilities at Jawaharlal Nehru Port Trust (JNPT). The project involves
erecting of facilities for unloading of refrigerated LPG, a 12.5 Km
long refrigerated transfer pipeline from the JNPT jetty to BPCLs Uran
LPG Plant and setting up refrigerated LPG storage in 2 x 8000 MT. The
LPG import facility was commissioned during the year on 31st January,
2012. The facility has marine unloading arms of 8 (20.30 cms) dia,
having capacity to discharge 500 MT LPG per hour from the ship. This
will enable BPCL to import 0.6 MMT LPG per annum. The approved cost of
the project is Rs. 304.40 crores while the cumulative expenditure up to
30th June, 2012 was Rs. 273.41 crores.
This is the country''s 2nd Cryogenic LPG import facility amongst
public sector oil companies after the existing one of IOC at Kandla.
This additional import capacity will help in meeting the growing LPG
deficit in India. BPCLs LPG terminal at Uran, which is already a hub
for LPG handling, will come to play a critical and strategic role in
the country in the years to come.
Pipeline for Transfer of LPG from BPCR / HPCR Mumbai to Uran
The project consists of laying a 28 Km pipeline (12 Kms offshore and 16
Kms onshore) and providing 3 x 900 MT Mounded Storage Vessels (MSV)
BPCL''s Uran LPG plant. The 10 (25.4 cms) dia cross country
pipeline is being laid to transfer LPG from the Mumbai refineries of
BPCL and Hindustan Petroleum Corporation Limited (HPCL). The pipeline
portion of the project costing Rs. 206.81 crores is being undertaken
along with HPCL and the cost will be shared equally by the two
companies. The cost of MSVs amounting to Rs. 40 crores will be to
BPCL''s account. The onshore pipeline laying has been completed. Of
the 12 Kms offshore pipeline, 10 Kms laying has also been completed.
The project has achieved an overall physical progress of 90.5% with
cumulative expenditure of Rs. 155.76 crores as on 30th June 2012. The
project is expected to be completed by October, 2012. The facility will
decongest traffic in and around Chembur in Mumbai and help improve the
ambient air quality in Mumbai city, besides savings in transportation
RESEARCH & DEVELOPMENT (R&D)
The Research and Development centres of BPCL consistently follow the
current trends of technological advancement across the globe. R&D
capabilities at Corporate R&D Centre, Greater Noida, Uttar Pradesh,
Product & Application Development Centre, Sewree, Mumbai and the R&D
Centre at Kochi Refinery are leveraged towards business growth at all
times. BPCL''s R&D programmes are discussed separately in the MD&A.
Further, the areas covered under R&D and the benefits derived from R&D
activities are detailed in Form B of Annexure A to the Directors''
NON-CONVENTIONAL ENERGY INITIATIVES
BPCL has undertaken various initiatives in tapping non-conventional
energy sources like bio-diesel, wind energy, solar energy and fuel
cells. In this regard, steps are taken to develop non-conventional /
renewable resources of energy.
BPCL has been exploring the possibility of promoting green fuels with a
view to protecting the environment by reducing pollution and dependency
on imported fuels. Aiming for sustainable development, huge tracts of
unproductive, barren and non-cultivable land are proposed to be used
for the growth of Jatropha and Karanj plants. The plantations would
contribute towards environment protection, prevention of soil erosion
and provide feedstock for manufacturing bio-diesel.
BPCL is in discussion with various State Governments including Uttar
Pradesh, Bihar and Karnataka to set up Bio-Diesel Value Chains in these
In the State of Uttar Pradesh, BPCL has initiated action to set-up the
Bio-diesel Value Chain which envisages cultivating Bio-fuel plants on
wasteland to produce Bio-diesel from the plantation to replace Diesel
over a period of time. A Joint Venture Company, M/s. Bharat Renewable
Energy Ltd. (BREL) has been incorporated for this project. As on 31st
March, 2012, the company has identified waste / arid land of 1,34,722
acres (54,520 hectares) in the State for Bio-fuel plantation.
BREL has submitted an application for release of funds from the Mahatma
Gandhi National Rural Employment Guarantee, MGNREG Scheme for Bio-fuel
plantation on 37,037 acres (14,988 hectares)of waste / arid land to the
Government of Uttar Pradesh. The total plantation covering an area of
7,450 acres (3,014 hectares) of waste land has been completed and
further work is in progress for 8,078 acres (3,269 hectares) of land
where pit digging has since been completed. During the current year, it
completed plantation on 3,890 acres (1,574 hectares) which is more than
plantations done in earlier years.
The overall Industrial Relations climate remained peaceful and cordial
throughout the year. Negotiations with the Unions are currently in
progress for signing the Long Term Wage Settlement both in Marketing
and Refineries. FULFILLMENT OF SOCIAL OBLIGATIONS BPCL continued its
focused action in the area of Corporate Social Responsibility (CSR)
with thrust in the areas of Education and Water Conservation. Through
the various CSR initiatives across the country, BPCL has been able to
impact the lives of around 70,000 people. Even as the initiatives
started in the earlier years were continued, several new projects were
started and partnerships were formalized with reputed Non-Government
BPCL has, in its Memorandum of Understanding signed with the Ministry
of Petroleum & Natural Gas for the year 2011-12, accepted a target of
reaching out to 30,000 children for education, 15 villages for
Rainwater Harvesting and 200 youth and 300 women for livelihood
training. BPCL has been successful in achieving all these targets. In
the field of education, BPCL initiated the Digital Literacy and Life
Skills project across 40 low income/ Municipal schools in Mumbai in
partnership with Pratham, thereby reaching out to 25,000 children. In
the districts of Nandurbar and Sagar, the Read India project has
entered its second year and is reaching out to 50,000 children.
Through Project Computer Assisted Learning (CAL), the Company has been
able to reach out to 10,000 children in Uran, Panvel and Lucknow. BPCL
was also associated with the Teach for India project in 6 schools in
Chembur in Mumbai. A third party assessment of the project has rated it
very highly, based on the learning levels acquired by the children.
Projects were also initiated for the education of 1050 tribal children
in Araku Valley in 3 residential schools in collaboration with Naandi
foundation, a NGO working in this field. A project ''WE CAN'' was
launched as part of the efforts to develop the leadership skills of
teachers and Principals from low income and Municipal schools in
Mumbai. BPCL also partnered Agastya International Foundation, a NGO in
a ''Science on Wheels'' project to reach out to 10,000 children across
70 rural schools near the Solur LPG plant in Bangalore.
Under Project Boond, 20 villages were converted from ''water scarce to
water positive''. The project is being extended to districts in
Karnataka and Uttar Pradesh.
As a part of the Livelihood Programme, BPCL has, in collaboration with
SEWA, a reputed NGO, imparted chikankari skills to 500 women in
Lucknow. Similar training in zardosi work was made available to 100
women in Loni in collaboration with the NGO, AROH. 300 youth in Ranchi
(Jharkhand) were trained in partnership with Dr. Reddy''s Foundation. In
an effort to bring agro-based knowledge through technology, making the
process simple and easily accessible to the women farmers, a programme
has been initiated with the MS Swaminathan Research Institute for the
widows of farmers in the district of Wardha. In an effort to reach
medical facilities to tribals, a programme was undertaken to train the
para health workers working in Bastar in Chattisgarh.
A Corporate CSR Booklet '' Umang'' was released, capturing all the CSR
initiatives undertaken across the country. BPCL won the ''CIDC
Vishwakarma Award 2012'' for CSR for the second consecutive year and
also won the ''Aqua Excellence Award'' for Project Boond. BPCL was
recently conferred with the Aaj Tak Care award under the Livelihood
category for the project ''Economic Empowerment and Income Generation''
which has benefited and impacted rural women in Lucknow.
PROMOTION OF SPORTS
BPCL sportspersons continued to excel in the national and international
sports arena in various sports disciplines. Ace shuttler, Saina Nehwal
became the first Indian to win an Olympic medal in Badminton. She won
the Bronze medal at the London Olympics 2012. Saina also won the Swiss
Open Gold Grand Prix, the Thailand Open Grand Prix Gold title in
Bangkok before winning the Super Series event in Jakarta, Indonesia.
She is currently ranked no. 5 in the world. Jwala Gutta was conferred
with the prestigious Arjuna Award in Badminton. She also won a Bronze
Medal in the Women''s Doubles Category at the World Championships.
PV.V Sindhu, another Badminton star, won the Youth Commonwealth Games,
Swiss International Challenge, Indonesian International Challenge,
Maldives International Challenge and Tata Indian Open. In Table Tennis,
Poulami Ghatak created history by winning the National Championship for
a record 7th time. Soumyajit Ghosh won the Youth National Championships
in Table Tennis and Bronze Medal at the World Junior Championship,
World Junior Circuit Grand Final and Senior National Championships. He
also represented India at the London Olympics. Another table tennis
player, Sanil Shetty won three Gold Medals at the National Table Tennis
Championships. All the above table tennis players represented India at
the Asian and World Table Tennis Championships in 2012. In Hockey,
Tushar Khandker and Birendra Lakra were part of the Indian hockey team
that won the Olympic qualifier which enabled India to qualify for the
London Olympics. Another hockey player, Ravi Pal was a member of the
Indian team which won the Asian Champions trophy. Chess Grand Masters
Abhijeet Gupta, P Harikrishna and Parimarjan Negi displayed outstanding
performances in Elite International Chess tournaments. G. N. Gopal, P.
Harikrishna, Parimarjan Negi and Abhijeet Gupta represented India at
the World Team Chess Championships. Abhijeet Gupta, who is the current
national champion, won Gold Medals at the Dubai Open, Vizag
International and London Chess Classic Open tournaments. P Harikrishna
won Gold Medals at the Asian Chess Championship and at the Cappelle La
Grande International Open tournaments. Parimarjan Negi won a Gold Medal
at the Baverian Open and Bronze Medals at the Dubai Open and Qin Huang
Dao Open. In Cricket, Pragyan Ojha represented India in the Test Series
against England and Australia. Manish Pandey and Jaydev Unadkat were
part of the India ''A'' team on its tour to Australia. In Billiards,
Devendra Joshi won a Silver Medal at the Jim Williamson World Open
Billiards Championships. He also represented India in the World
Billiards Championship. Manan Chandra represented India at the Asian
Snooker and World Snooker Championships.
In the physically challenged category, Joby Mathew won several Gold/
Silver Medals in the National Para Games and a Bronze Medal in the
National Arm Wrestling Championship. He also represented India in the
World Arm Wrestling Championship.
RESERVATION AND OTHER WELFARE MEASURES FOR SCHEDULED CASTES/SCHEDULED
TRIBES/ OTHER BACKWARD CLASSES AND PERSONS WITH DISABILITIES
BPCL has been following in letter and spirit, the Presidential
Directives and other guidelines issued from time to time by Ministry of
Petroleum & Natural Gas (MOP & NG), Ministry of Social Justice and
Empowerment and the Department of Public Enterprises relating to
reservations / concessions for Scheduled Castes / Scheduled Tribes /
Other Backward Classes. Mechanisms have been put in place to ensure
sustained and effective compliance of the guidelines across the
Corporation. Rosters are maintained as per the Directives and are
regularly inspected by the Liaison Officer of the Corporation as well
as the Liaison Officer of MOP & NG to ensure proper compliance of the
directives. SC/ST and economically backward students are encouraged by
awarding scholarships to students completing their graduation or
undertake courses at Industrial Training Institutes.
BPCL also complies with provisions under The Persons with
Disabilities (Equal Opportunities, Protection of Rights and Full
Participation), Act 1995 relating to providing employment
opportunities for Persons with Disabilities (PWDs).
Details relating to representation/appointment of Scheduled Castes /
Scheduled Tribes / Other Backward Classes and Persons with Disabilities
are enclosed as Annexure D. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY
The Official Language Implementation Committees continued to function
at the Corporate, Regional, Refinery and major location levels, to take
decisions based on the annual programme issued by Ministry of Home
Affairs, besides the provisions of Official Language Act and Rules.
These Committees perform the task of reviewing the progress made in
Official Language Implementation on a quarterly basis.
The first Sub - Committee of the Parliamentary Committee on Official
Language carried out inspection of select offices and appreciated the
overall work done so far in regard to Official Language implementation.
The Corporation''s website is now available in Hindi in addition to
English. Unlimited license for Hindi Software ISM V6 Office with
Unicode features was procured and loaded in computers across all
offices. Important manuals were made bilingual and most publicity
material was prepared in Hindi and English. Competitions and cultural
programmes were organized at various locations all over the country, on
the occasion of Hindi Fortnight, which was celebrated during September,
2011. World Hindi Day was celebrated on 10th January, 2012 at all
The Citizens'' Charter is always in the forefront of all
activities of the Company. The Citizens'' Charter on marketing of
petroleum products by BPCL has been put up on the corporate website. It
broadly covers all aspects about the products marketed along with the
customer''s rights like standard, quality, time frame of service
delivery, grievance redressal mechanism, transparency and
accountability that are available to the citizen. Further, it
elaborates the selection guidelines procedure for dealers and
distributors along with the third party audit for the services promised
to the customer. It is a tool for ensuring transparency in educating
and communicating with the customer and enhancing customer service
levels. A well established system for Grievance Redressal is in place
at various consumer contact points. The State Coordinators situated in
all the States / Union Territories act as nodal officers for personal
hearing in solving the grievances of the customers. Additionally, with
effect from 1st April, 2012, all the Territory Managers of LPG and
Retail have been appointed as nodal officers for personal hearing
without appointment thrice a week at fixed hours. An internet based
online Grievance Redressal Mechanism (Centralised Public Grievance
Redressal and Monitoring System) of Government of India is helping in
speedy redressal of grievances. A link to this site is available on the
BPCL website. Also, toll free numbers are available to the customer so
that they can call on these numbers from anywhere in the country for
registering complaints / suggestions. Besides, BPCL has also made
available a feedback module in its website for the customer.
The Right to Information (RTI) Act 2005 has been implemented in BPCL
since its inception. People across the organization are familiar with
the Act. During the period ending 31st March, 2012, BPCL has provided
information to 4,229 requests. 33 cases were referred to the Chief
Information Commissioner, New Delhi. With increased awareness among the
public and mushrooming of RTI activists across the country, the number
of queries are increasing exponentially and accordingly from 1st April,
2012, BPCL has appointed 84 Central Public Information Officer (CPIO)
and 11 Appellate Authorities against 3 CPIOs and 1 Appellate Authority
in the previous year.
Corporate Vigilance, BPCL has made great strides in enhancing the
ethical standards of the organisation by encouraging sound business
practices and good corporate governance through an effective balance of
proactive and preventive measures.
As part of the preventive vigilance activities, Vigilance Officers,
during their visits to Installations / Retail Outlets (ROs) / Depots,
guided the officers and staff on the various procedures and guidelines
of CVC / BPCL / MOP&NG. Inspections were conducted at 231 BPCL
locations, 635 ROs and 230 LPG Distributorships as part of preventive
vigilance. Based on the outcome of such inspections, preventive /
administrative actions and system improvements were initiated. Chief
Technical Examiner (CTE) type inspections of major projects/ works were
undertaken and observations with specific recommendations were advised
to the concerned departments. System studies were also carried out and
recommendations based on the findings were advised. Vigilance has
proactively enabled Business Units to identify vulnerable areas in
their existing procedures / processes in major areas such as bill
payments, dealer / distributor selections, reconstitution of
dealerships / distributorships, file tracking, e-payments, etc.
Workshops / seminars were designed on the case study model for
concerned officers. Based on the feedback and inputs obtained through
these, the required system improvements were recommended.
In addition to the above roles, Corporate Vigilance conducted detailed
investigation into the complaints and source information received.
During the year, 532 complaints including 430 online complaints were
received and investigated. In matters referred by CVC and MOP&NG,
necessary investigations were carried out and recommendations given
within the time-frame. A one day workshop conducted by Shri. Suresh
Govindarajan on Complaint Handling, Report Writing and Investigation
Techniques was organized at Mumbai for the Vigilance Officers.
The Vigilance Awareness Period (31st Oct. - 5th Nov. 2011) was
observed in the two Refineries and across all locations of BPCL. C&MD,
in the presence of CVO and the Directors, administered the oath and
this was webcast at all the locations throughout the country. The
second issue of the vigilance journal Vigilance Plus was released
and received excellent feedback. The online version of the newsletter
of Vigilance Department - Vigilance Plus Online was brought out
on the Intralink site in August 2011. Vendor Meets were conducted
in three regions for feedback from important stakeholders. Slogan /
essay / quiz competitions were conducted for employees / school
children. A talk by Shri. T. R. Raghunandan, IAS (Retd) was organized
at the Corporate Office.
Widening the reach among the stakeholders, Corporate Vigilance
introduced Integrity Clubs (ICs) last year as a corporate
initiative to instill ethical values in school children and transform
them into valuable Change Agents in Civil Society. The first
Integrity Club was started at Kochi Refinery School and received
great response. This movement has now been extended to five more
schools under Kendriya Vidyalaya Sangatan in Kerala. The activities of
the IC at Kochi Refinery such as reaching out to the weakest and the
needy have evoked an enthusiastic response from the public.
To increase transparency in interface with vendors, contractors,
suppliers and service providers, the coverage of tenders hosted on the
corporate website has been increased and at present includes tenders of
Original Equipment Manufacturers and Proprietary items also. The
Integrity Pact has been implemented and was made mandatory for all
tenders above Rs. 1 crore. Bill Payments Monitoring system has been
rolled out and implemented across the Corporation.
Numaligarh Refinery Limited (NRL)
NRL was incorporated in 1993 with an authorized capital of Rs. 1000
crores. It is a Mini Ratna company (Category I) and has a 3 MMTPA
refinery at Numaligarh in Assam. BPCL holds 61.65% of the paid up
equity in NRL as on 31st March, 2012. The refinery processed highest
ever crude oil of 2.82 MMT of crude oil during the year 2011-12 as
compared to 2.25 MMT processed in the previous year. As on 31st March,
2012 the Refinery completed 10 years of Lost Time Accident (LTA) free
operations since the date of the last LTA on 18th February, 2002. NRL
achieved highest ever turnover of Rs. 14,004.25 crores for the financial
year ending 31st March, 2012 as compared to Rs. 8,955.14 crores in the
previous year. The Company''s profit after tax for the year stood at Rs.
183.70 crores as against a profit of Rs. 279.26 crores in the previous
year, which is due to high crude oil cost vis-a-vis product price
realisation from the market. The earnings per share (EPS) for the year
2011-12 amounted to Rs. 2.50 as compared to Rs. 3.80 in 2010-11. The Board
of Directors of NRL have recommended a dividend of Rs. 1 per share of Rs.
10 each for the current financial year as compared to Rs. 1.50 per share
of Rs. 10 each for the previous year. NRL had a net worth of Rs. 2,699.26
crores and a book value of Rs. 36.69 per share as at 31st March, 2012.
Bharat PetroResources Limited (BPRL)
Bharat PetroResources Ltd (BPRL) was incorporated in the year 2006 as a
wholly owned subsidiary company of BPCL with the objective of
implementing BPCL''s plans in the upstream exploration and production
sector. As on 31st March 2012, the authorized capital of BPRL is Rs. 3000
crores and the subscribed and paid up share capital of BPRL is Rs. 1100
crores. The exploration and production activities of BPRL and its
subsidiary companies extend to 26 exploration blocks where they hold
participating interests (PI). Of this, 11 blocks are in India and 15
are abroad. Besides India, BPRL has blocks in Australia, Brazil, East
Timor, Indonesia, Mozambique and the United Kingdom. BPRLs total
acreage in all these blocks is around 68,000 sq.km, of which approx 89%
is offshore acreage. These blocks are in various stages of
BPRL had formed a wholly owned subsidiary company, Bharat
PetroResources JPDA Limited through which it holds a participating
interest of 20% in Block-JPDA 06-103-East Timor in the Joint Petroleum
Development Area between Australia and East Timor. Further, BPRL has
incorporated a wholly owned subsidiary company, BPRL International
B.V., Netherlands which in turn has incorporated 3 wholly owned
subsidiary companies viz. BPRL Ventures B.V., BPRL Ventures Mozambique
B.V. and BPRL Ventures Indonesia B.V., for undertaking exploration
activities in various countries. BPRL Ventures B.V. has 50% stake in
IBV Brasil Petroleo Limitada, which has participating interests ranging
from 20% to 40% in 10 blocks in Brazil. BPRL Ventures Mozambique B.V.
has participating interest of 10% in a block in Mozambique, and BPRL
Ventures Indonesia B.V. holds participating interest of 12.5% in a
block in Indonesia.
BPRL earned income of Rs. 1.81 crores for the financial year ending 31st
March, 2012 and had a loss of Rs. 88.94 crores as compared to income of Rs.
0.67 crores and loss of Rs. 18.98 crores for the financial year ending
31st March, 2011.
Annual Accounts of the Subsidiary Companies
In view of the dispensation granted by the Ministry of Corporate
Affairs vide General Circular No. 2/2011 dated 8th February, 2011,
copies of the Balance Sheet, Profit and Loss Account, Directors'' Report
and the Auditors'' Report of the Subsidiary Companies are not attached
to the Balance Sheet of the Company. In compliance with the conditions
of the dispensation, the Consolidated Financial Statements have been
presented in the Annual Report and financial information of the
Company''s subsidiaries, as required, is disclosed in the Annual Report
as Annexure F to the Directors'' Report for information. The Audited
Annual Accounts of Subsidiary Companies and related detailed
information are open for inspection to Members at BPCL''s Registered
Office. Further, BPCL would make available / furnish these documents,
on request, to any of its Members and the said documents would also be
posted on BPCL''s website.
JOINT VENTURE COMPANIES Petronet LNG Limited (PLL)
PLL was formed in April, 1998 for importing LNG and setting up LNG
terminal with facilities like jetty, storage, regasification etc. to
supply natural gas to various industries in the country. The Company
has an authorised capital of Rs. 1200 crores. PLL was promoted by four
public sector companies viz. BPCL, Indian Oil Corporation (IOC), Oil
and Natural Gas Corporation Limited (ONGC) and GAIL (India) Limited
(GAIL). Each of the promoters holds 12.5% of the equity capital of PLL.
The other major shareholders include Gaz de France with a 10% equity
stake and Asian Development Bank holding 5.2% of the equity capital of
the Company. The balance 34.8% is held by the public. BPCL''s equity
investment in PLL currently stands at Rs. 98.75 crores. As at 31st March,
2012, PLL had a net worth of Rs. 3,519.78 crore with a book value of Rs.
46.93 per share.
PLL recorded a sales turnover of Rs. 22,696 crores in the financial year
ended as on 31st March, 2012 as compared to Rs. 13,197 crores recorded in
2010-11. The net profit for the year stood at Rs. 1,057.54 crores as
compared to Rs. 619.62 crores in the previous year. The EPS for the year
2011-12 amounted to Rs. 14.10 as compared to Rs. 8.26 in 2010-11. PLL has
declared a dividend of Rs. 2.50 per share for the financial year 2011-12
as compared to Rs. 2 per share during the previous year.
Indraprastha Gas Limited (IGL)
IGL, a Joint Venture Company with GAIL as the other co-promoter, was
set up in December, 1998 with an authorised capital of Rs. 220 crores for
implementing the project for supply of Compressed Natural Gas (CNG) to
the household and automobile sectors in Delhi. BPCL invested Rs. 31.50
crores in IGL for 22.5% stake in its equity. IGL has commissioned over
241 CNG stations which supply the environment friendly fuel to more
than 4,30,000 vehicles. IGL has more than 2,40,000 domestic PNG
customers and over 427 commercial customers in Delhi. The Company is
also extending its business to the towns of Greater Noida and
IGL has registered a turnover of Rs. 2,790.10 crores and a profit after
tax of Rs. 306.43 crores for the financial year ending as on 31st March,
2012 as compared to a turnover of Rs. 1,951.50 crores and a profit after
tax of Rs. 259.77 crores in the previous year. IGL has declared a
dividend of Rs. 5 per share against a dividend of Rs. 5.0 per share in the
previous year. IGLs net worth was Rs. 1,228.94 crores with a book value
of Rs. 87.78 per share as at 31st March, 2012. The shares of the Company
are listed on the Bombay Stock Exchange Limited, and National Stock
Exchange of India Limited.
Sabarmati Gas Limited (SGL)
SGL, a Joint Venture Company promoted by BPCL and Gujarat State
Petroleum Corporation (GSPC), was incorporated on 6th June 2006 with an
authorized capital of Rs. 100 crores for implementing the City Gas
distribution project for supply of CNG to the household and automobile
sectors in Gandhinagar, Mehsana and Sabarkantha Districts of Gujarat.
Both the promoters have a stake of 25% each in the equity capital of
SGL and the balance has been subscribed to by financial institutions.
SGL has set up 23 CNG stations. SGL has achieved a turnover of Rs.
704.33 crores and profit after tax of Rs. 11.03 crores for the financial
year ending 31st March, 2012 against a turnover of Rs. 455.58 crores and
profit after tax of Rs. 27.56 crores in the previous year. The Company
has not yet proposed dividend on equity shares for the financial year
ending 31st March, 2012. Dividend of 15% was declared in the previous
year. Central UP Gas Limited (CUGL)
CUGL is a Joint Venture Company set up in March, 2005 with GAIL as the
other partner for implementing the project for supply of CNG to the
household, industrial and automobile sectors in Kanpur and Bareilly in
Uttar Pradesh. The Company was incorporated with an authorised share
capital of Rs. 60 crores. The joint venture partners have each invested Rs.
15 crores in the joint venture, with each partner having an equity
stake of 25% in the Company. The balance equity share capital has been
subscribed to by Infrastructure Development Finance Company Limited
(IDFC), Asian Development Bank (ADB) and Infrastructure Leasing &
Financial Services Limited (ILF&S). CUGL has set up 11 CNG stations.
The Company has commenced its PNG operations.
CUGL has achieved a turnover of Rs. 124.71 crores and profit of Rs. 21.13
crores for the financial year ending 31st March, 2012 as compared to a
turnover of Rs. 73.37 crores and a profit of Rs. 12.30 crores in the
previous year. The EPS for the year stood at Rs. 3.52 as against Rs. 2.06
in 2010-11. The Board of Directors has recommended a payment of
dividend at Rs. 1.25 per share for the current year against Rs. 0.70 that
was paid in the earlier year. Maharashtra Natural Gas Limited (MNGL)
MNGL was set up on 13th January, 2006 as a Joint Venture Company with
GAIL for implementing the project for supply of CNG to the household,
industrial and automobile sectors in Pune and its nearby areas. The
Company was incorporated with an authorised share capital of Rs. 100
crores. BPCL and GAIL have invested Rs. 22.50 crores each in MNGLs equity
capital. The Maharashtra Government will hold a 5% stake in the
Company. The balance equity shares have been subscribed by IDFC, IL&FS
and Axis Bank as shareholders. The Company has set up 14 CNG stations
MNGL has achieved a turnover of Rs. 85.48 crores for the financial year
ending 31st March, 2012 and profit of Rs. 12.10 crores for the year as
against a turnover of Rs. 35.48 crores and profit of Rs. 0.03 crores in the
Bharat Stars Services Private Limited (BSSPL)
BSSPL, a Joint Venture Company promoted by BPCL and ST Airport Pte
Limited, Singapore was incorporated on 13th September, 2007 with an
authorised share capital of Rs. 10 crores for providing into plane
fuelling services at the new Bengaluru International Airport. The
authorised share capital of BSSPL was subsequently enhanced to Rs. 20
The two promoters have each subscribed to 50% of the equity share
capital of BSSPL and BPCL''s present investment stands at Rs. 10 crores.
The Company, which commenced its operations at the new international
airport in Bengaluru from May, 2008, has also incorporated a wholly
owned subsidiary for providing into plane fuelling services at the new
T3 Terminal of Delhi International Airport. The Company is also
planning to enter Calicut Airport and other nearby airports.
BSSPL has achieved a turnover of Rs. 10.38 crores for the financial year
ending 31st March, 2012 and profit of Rs. 1.50 crores as against a
turnover of Rs. 8.72 crores and a profit of Rs. 1.24 crores in the previous
year. BSSPL has declared a dividend of Rs. 0.40 per share for the current
year as against Rs. 0.20 per share for the previous year.
Bharat Renewable Energy Limited (BREL)
BREL was incorporated on 17th June, 2008 for undertaking the
production, procurement, cultivation and plantation of horticulture
crops such as karanj, jatropha and pongamia, trading, research and
development and management of all crops and plantation including
Bio-fuels in the State of Uttar Pradesh, with an authorized capital of
Rs. 30 crores. The Company has been promoted by BPCL with Nandan
Biomatrix Limited, Hyderabad and Shapoorji Pallonji Company Limited,
through their affiliate. Each of the partners will have an equal stake
in the equity capital of the joint venture. The project envisages
plantation of Jatropha in 1 million acres (4,04,686 hectares) of
marginal land which has the potential of generating employment / self
employment for 1 million people and produce 1 million tonnes of
Bio-diesel with an investment of Rs. 2,200 crores over the next 10-15
The Government of Uttar Pradesh has approved the project under
Jeevan Jyoti, a scheme of the Government which has the benefit of
release of funds under the MGNREG Scheme.
BREL has also embarked on a revenue generation stream by initiating
action for nursery plantation and a seed collection centre.
BREL has earned miscellaneous income of Rs. 0.06 crores for the financial
year ending 31st March, 2012 and incurred a loss of Rs. 1.84 crores as
against a miscellaneous income of Rs. 0.03 crores and a loss of Rs. 1.74
crores in the previous year.
Matrix Bharat Pte Limited (MBPL)
MBPL is a Joint Venture Company incorporated in Singapore on 20th May,
2008 for carrying on the bunkering business and supply of marine
lubricants in the Singapore market as well as international bunkering,
including expanding into Asian and Middle East markets. The Company has
been promoted by BPCL and Matrix Marine Fuels LP USA, an affiliate of
the Mabanaft group of companies, Hamburg, Germany. The authorised
capital of the Company is USD 4 million, which is equivalent to Rs. 20
crores. Both the partners have contributed equally to the share
capital. Matrix Marine Fuels LP USA has subsequently transferred their
share and interest in the joint venture in favour of Matrix Marine
Fuels Pte Limited, Singapore, another affiliate of the Mabanaft group.
The name of the Company has been changed from Matrix Bharat Marine
Services Pte Ltd to Matrix Bharat Pte Ltd.
The Company has begun the ex-pipe bunkering operations in August, 2008.
The Company will also undertake development of international bunkering
facilities at Indian ports, risk management including hedging
activities, inventory management, and quality blending and freight
optimization by utilizing the back haulage of time charter vessels for
importing petroleum products in India. MBPL has achieved a turnover of
USD 928.71 million and earned a profit of USD 0.33 million for the year
ending 31st March, 2012 as compared to a turnover of USD 402.33 million
and a profit of USD 0.40 million in the previous year.
Petronet India Limited (PIL)
BPCL has 16% equity participation with an investment of Rs. 16 crores in
PIL, which was formed as a non-government financial holding company to
give impetus to the development of pipeline networks throughout the
country. PIL has facilitated pipeline access on a common carrier
principle through joint ventures for pipelines put up by them viz.
Vadinar-Kandla, Kochi-Coimbatore-Karur and Mangalore-Hassan-Bangalore.
PIL registered income of Rs. 0.23 crores and a net loss of Rs. 0.25 crores
for the financial year ending 31st March, 2012 as against income of Rs.
0.23 crores and a net loss of Rs. 1.46 crores in the previous year.
The new pipeline policy announced by the Government of India some time
back has affected the future of the company as interested companies are
permitted to undertake pipeline projects and PIL does not have any new
projects in hand. As such, promoters and other investors in PIL have
reached a conclusion that continuation of PIL would not be viable.
Accordingly, the winding up process has been initiated and the process
of divesting PILs 26% equity in the three joint venture companies
promoted by it is in progress. The Board of Directors of BPCL, in its
meeting held in December 2006 accepted PILs offer to buy its 26% stake
in the equity of Petronet CCK Limited where BPCL already holds 49% of
the paid up share capital. This is awaiting receipt of approval of the
Government of India. Petronet CCK Limited (PCCKL)
BPCL has invested a sum of Rs. 49 crores for a 49% stake in the equity
capital of PCCKL, a Joint Venture Company promoted with PIL with an
authorised share capital of Rs.135 crores. The Company owns 292 Km long
multi-product Kochi-Karur pipeline from BPCL''s installation at
Irimpanam to Karur for transportation of MS, HSD and SKO. The pipeline
commenced commercial operations from September, 2002.
The pumping volume during the year 2011-12 amounted to 2.21 MMT as
against 1.87 MMT in the previous year. PCCKL registered a turnover of
Rs. 69.50 crores and net profit of Rs. 20.34 crores for the financial year
ending 31st March, 2012 as compared to a turnover of Rs. 54.87 crores and
net profit of Rs. 8.91 crores in the previous year. BPCL has initiated
steps subject to completion of all formalities to purchase the 26%
share of PIL in PCCKL. Delhi Aviation Fuel Facility Private Limited
A new Joint Venture Company, DAFFPL, has been promoted by BPCL, IOC and
Delhi International Airport Limited (DIAL) for implementing Aviation
Fuel facility for the new T3 terminal at Delhi International Airport.
BPCL and IOC have subscribed to 37% of the share capital of the joint
venture while the balance has been taken by DIAL. BPCLs onsite assets
at the Delhi Airport were transferred to the Joint Venture. DAFFPL has
registered a turnover of Rs. 122.75 crores and net profit of Rs. 32.34
crores for the financial year ending 31st March, 2012 as against a
turnover of Rs. 96.05 crores and net profit of Rs. 34.67 crores in the
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The details regarding energy conservation, technology absorption and
foreign exchange used and earned as required by Section 217(1 )(e) of
the Companies Act, 1956, are given in Annexure A.
MEMORANDUM OF UNDERSTANDING WITH MINISTRY OF PETROLEUM & NATURAL GAS
BPCL for the twenty-third successive year has entered into a Memorandum
of Understanding (MOU) for the year 2012-13 with the Ministry of
Petroleum & Natural Gas. BPCL has been achieving an Excellent
performance rating since 1990-91.
PARTICULARS OF EMPLOYEES UNDER SECTION 217(2A)
Information required under Section 217(2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Rules, 1975, is
enclosed as Annexure C.
As required under Clause 49 of the Listing Agreement and Department of
Public Enterprises (DPE) Guidelines, the Report on Corporate
Governance, together with the Auditors'' Certificate on compliance of
Corporate Governance, is annexed as Annexure B. The Report also
indicates the extent of BPCLs compliance of the Corporate Governance
Voluntary Guidelines, 2009 issued by the Ministry of Corporate Affairs.
The Company has engaged M/s. Dholakia & Associates, Company Secretaries
for conducting the Secretarial Audit for the year 2011-12. The
Secretarial Audit Report is enclosed as part of Annexure B.
The forward looking statements made in the ''Management Discussion and
Analysis'' are based on certain assumptions and expectations of future
events. The Directors cannot guarantee that these assumptions are
accurate or these expectations will materialize.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
of BPCL confirm that:
1. In the preparation of the Annual Accounts, all the applicable
Accounting Standards have been followed along with proper explanation
relating to material departures.
2. The Company has selected such Accounting Policies and applied them
consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fair view of the State of Affairs of
the Company as on 31st March 2012 and of the Statement of Profit and
Loss of the Company for the year ended on that date.
3. The Company has taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
4. These Accounts have been prepared on a going concern basis.
Shri. B.K. Datta, Executive Director (Supply Chain Optimization) was
appointed as Additional Director with effect from 1.8.2011. The
shareholders have appointed him as Director of the Company at the
Annual General Meeting held on 16.9.2011.
Shri. S. K. Joshi, Director (Finance) has superannuated on 31.8.2011.
The Directors have placed on record their appreciation of the valuable
contributions made and guidance given by him for the development and
progress of the Company''s business.
Shri. S. Varadarajan, Executive Director (Finance) was appointed to the
post of Director (Finance) of the Company from 1.9.2011. The
shareholders have appointed him as Director of the Company at the
Annual General Meeting held on 16.9.2011.
Dr. S. Mohan, Director (Human Resources) has superannuated on
31.10.2011. The Directors have placed on record their appreciation of
the valuable contributions made and guidance given by him for the
development and progress of the Company''s business.
Shri. S.P Gathoo, Executive Director (HRS) was appointed as Additional
Director with effect from 3.11.2011. He also assumed the office of
Director (Human Resources) from that date in pursuance of appointment
by the Govt. of India. As he has been appointed as Additional
Director, he will hold office till the ensuing AGM. Notice under
section 257 has been received proposing his name for appointment as
Director at the ensuing Annual General Meeting (AGM). Shri. P K.
Sinha, Special Secretary & Financial Advisor, Ministry of Petroleum &
Natural Gas resigned from the Board with effect from 1.3.2012. The
Directors have placed on record their appreciation of the valuable
contributions made and guidance given by him for the development and
progress of the Company''s business.
Prof. J. R. Varma was appointed as Additional Director with effect from
10.08.2012. As he has been appointed as Additional Director, he will
hold office till the ensuing AGM. Notice under section 257 has been
received proposing his name for appointment as Director at the ensuing
Shri. B. Chakrabarti was appointed as Additional Director with effect
from 10.08.2012. As he has been appointed as Additional Director, he
will hold office till the ensuing AGM. Notice under section 257 has
been received proposing his name for appointment as Director at the
ensuing AGM. Shri. R.N. Choubey, Director General, Directorate General
of Hydrocarbons, Ministry of Petroleum & Natural Gas was appointed as
Additional Director with effect from 10.08.2012. As he has been
appointed as Additional Director, he will hold office till the ensuing
AGM. Notice under section 257 has been received proposing his name for
appointment as Director at the ensuing AGM.
Shri. I.PS. Anand, Shri. Haresh M. Jagtiani and Shri. Alkesh Kumar
Sharma, Secretary, Investment Promotion, Government of Kerala,
Directors, will retire by rotation at the ensuing AGM as per the
provisions of Section 256 of the Companies Act, 1956, and being
eligible, offer themselves for re-appointment as Directors at the said
As required under the Corporate Governance Clause, brief bio-data of
the above Directors who are appointed / reappointed at the Annual
General Meeting are provided in the Corporate Governance Report.
M/s. T.R. Chadha & Co, Chartered Accountants, Mumbai and M/s. K.
Varghese & Co, Chartered Accountants, Kochi, were appointed as
Statutory Auditors for the year 2011-12, by the Comptroller & Auditor
General of India (C&AG), under the provisions of Section 619 (2) of the
Companies Act, 1956. They will hold office till the ensuing Annual
General Meeting. The said firms have also been appointed as the
Statutory Auditors for the financial year 2012-13 by the C&AG.
During the year 2011-12, seven cost audit reports pertaining to the
Refineries & Lube plants have been filed with the Ministry of Corporate
Affairs on 28th August, 2011 and 30th August, 2011. The due date for
filing these cost audit reports was 30th September, 2011. These cost
audit reports pertain to the year 2010-11 and the cost auditors were
M/s. N. I. Mehta & Co., Mumbai and M/s. Muralidhar Mohan & Associates,
The same cost auditors have been appointed for the year 2011-12. The
due date for filing the cost audit reports for 2011-12 has now been
extended till 31st December, 2012 by MCA. Necessary action is being
taken to file the reports as required.
The Directors express their earnest appreciation for the untiring
efforts of every employee of the Organisation without which BPCL would
not have been able to achieve the challenging targets in all areas of
The Directors are thankful for the guidance received from different
Ministries of the Government of India particularly the Ministry of
Petroleum & Natural Gas and from various State Governments which has
facilitated the smooth and efficient functioning of the Company.
The Directors also acknowledge the continuing patronage and support
extended to BPCL by all the stakeholders including customers, dealers,
distributors, contractors and suppliers.
The Directors would like to extend their sincere thanks to each and
every shareowner for their unstinted support in all our endeavors.
For and on behalf of the Board of Directors
Mumbai R. K. Singh
Date: 10th August, 2012 Chairman & Managing Director