On behalf of the Board of Directors of MRPL and on my behalf, it is my
privilege to present the 26th Annual Report and the Audited Accounts
for the financial year ended March 31, 2014.
It is a matter of pride that your Company is now Schedule ''A'' Central
Public Sector Enterprise (CPSE) upgraded from Schedule ''B'' status. Your
Company is marching ahead with a renewed vision and commitments for
greater growth. We focused at fortitude in advertises, embracing
opportunities and over coming setbacks to gain in strength with
continued support of all shareholders.
1.0 PERFORMANCE AT A GLANCE
- Highest ever crude processed at 14.59 MMT during the year 2013-14
against 14.41 MMT during the previous year 2012-13.
- Highest ever Turnover at Rs. 75,226 Crore during year 2013-14 against Rs.
68,834 Crore for the previous year 2012-13.
- Highest ever Export Turnover at Rs. 35,392 Crore during the year
2013-14 against Rs. 33,340 Crore for the previous year 2012-13.
- profit After Tax (PAT) at Rs. 601 Crore during the year 2013-14 against
the loss of Rs. 757 Crore incurred for the previous year 2012-13
1.1 SUMMARY OF FINANCIAL PERFORMANCE
The summarized financial performance of your company for the year ended
31st March, 2014 is furnished below:
(Rs. In Crore)
Year ended Year ended
31st March, 31st March,
Turnover 75226 68834
Profit before Depreciation Interest and Tax 1437 456
Interest and Finance Charges 321 329
Gross Profit after interest but before
Depreciation 1116 127
Depreciation and Amortizations 706 604
Profit/(Loss) Before Tax 410 (477)
Provision for Taxation
(deferred tax liability) (191) 280
Profit/(Loss) after Tax 601 (757)
Balance of profit/(Loss) brought forward from 4238 4999
Surplus available for appropriation 4839 4242
Transfer to Capital Redemption Reseve - 4
Balance carried to Balance Sheet 4839 4238
In view of the carry forward losses of previous financial year and funds
requirement for meeting huge capital expansion plans of the Company,
your Board of Directors has not recommended any dividend for the
financial year 2013-14. However, we are quite confdent to deliver growth
and enhance shareholder value once all the units of Phase-III Refnery
Project are made fully operational which will contribute significant
improvement in operating profit margins of the Company.
1.3 OPERATIONAL PERFORMANCE
Your Company had processed the highest ever crude of 14.59 MMT during
the financial year 2013-14 compared to 14.41 MMT during the previous
financial year 2012-13. The Fuel and Loss net of commissioning usage was
7.15%, higher by 1% as the fuel consumption during stabilisation of
The Refnery achieved the Highest Crude processed with Energy index
(MBTU/BBL/NRGF) of 60.88 during the year 2013-14 against 61.01 during
the year 2012-13.
Your Company has achieved highest ever export turnover of Rs.35,392 Crore
during the financial year 2013-14 by exporting products viz., Motor
Spirit (MS), Naphtha, Mixed Xylene (MX), High Speed Diesel (HSD), Air
Turbine Fuel (ATF) and Fuel Oil (FO).
Your Company continues to supply petroleum products viz. Mogas, ATF,
Gas Oil and Fuel Oil to State Trading Corporation (STC), Mauritius.
In the global competitive market, Your Company has secured its place by
exporting petroleum products to 21 countries viz. Bahamas , China ,
Egypt, Hongkong, Japan, Jordan, Kenya ,Korea, Malaysia ,Mauritius,
Netherlands, Oman ,Saudi Arabia ,Singapore, Slovenia, South Africa,
Taiwan, Turkey ,UAE, UK and Yemen and continues to explore more
opportunities for its growth.
1.5 SAFETY PERFORMANCE
Your Company have achieved 912 accident free days as on 22/07/2014 with
8.59 million man hours worked. The various units of Phase -III Refnery
Upgradation and Expansion Project and storage tanks were commissioned
safely during the year.
Your Company is committed towards imparting continuous training in fre
and safety practices. During the year, 1085 employees and 5788 contract
workmen were trained in fre and industrial safety. Regular Mock
exercises were conducted considering the various emergency scenarios in
plant and non plant areas.
1.6 ENVIRONMENT MANAGEMENT & PERFORMANCE
Your Company believes in Perform beyond Compliance - that is to
perform better than minimum required by statutes. The Refnery of your
Company is a certified ISO 14001: 2004 for Environment Management
Systems. The major achievements on the Environment Management and
performance are summarized as under:
- The Phase -III has an advanced Waste Water Treatment Plant (WWTP)
which includes oil effuent Treatment unit, Sequential Batch Reactor
(SBR) unit and Membrane Bio Reactor (MBR). This unit was commissioned
during the year.
- Sulphur Pastillation Unit was commissioned in the Refnery to reduce
dust emissions in the Sulphur Recovery Unit (SRU).
- An advanced Reverse Osmosis (RO) Plant was commissioned on 30/10/2013
for maximizing the quantity of treated water recycle back to the
- Wet Air Oxidation (WAO) Unit is set-up in the Refnery to treat Spent
Caustic to improve the WWTP performance.
- Volatile Organic Compound (VOC) Recovery system in WWTP- III was
commissioned during the year. VOC Emission is being monitored at 74,000
points in the Refnery through reputed agency and corrective measures
are taken to effectively minimize the same.
- A Condensate Recovery Unit was commissioned in process unit resulting
reduction in fresh water consumption.
- A Closed Bioremediation Unit was commissioned in the Refnery as a
part of WWTP.
- Environment Awareness programs are organized periodically in the
neighbouring villages & schools in association with Karnataka State
Pollution Control Board (KSPCB).
- Karnataka Forest Department, Government of Karnataka has been
requested to develop greenbelt in 120 acres area of the Refnery. They
have developed saplings and Plantation has been commenced in the
Refnery area of your Company.
- Advanced technology has been deployed for cleaning Crude oil Tanks in
- Regular Seawater quality monitoring is being carried out by M/s.
College of Fisheries on fortnight basis indicating no adverse effect on
the marine environment.
- Ten Ground Water monitoring stations in and around Refnery have been
setup and regular monitoring of ground water quality is being carried
out along with KSPCB. Average treated effuent recycled to cooling
towers during the year was 70-75%.
- Ambient air quality monitoring is being done inside and outside the
Refnery at 9 locations (including 2 locations at Phase-III Project
site) as per revised National Ambient Air Quality Monitoring Standard.
Your Company has also undertaken the following projects which are in
various stages of installation:
Your Company has also undertaken the following projects which are in
various stages of commissioning.
- Vapour Recovering System for light hydrocarbon storage tanks in Phase
– III Refnery Project,
- Automatic Rim seal protection Installation in storage tanks.
- Connection of LPG spheres and Mounded Bullets PSV discharge to fare
1.7.1 Marketing and Business Development
Your Company continued its direct marketing activities in the State of
Karnataka and in the adjoining states. The total direct marketing
turnover during the financial year 2013-14 was Rs. 2589 Crore.
With the availability of natural gas pipeline in North Karnataka and
Goa, some major customers have shifted from liquid fuels to gas,
leading to shrinkage of liquid fuels market. However, your Company
could establish a good market reach for sale of Petcoke produced from
the Delayed Coker Unit (DCU) commissioned in Phase-III project during
Your Company continues to develop its direct marketing network for
various value added products like Petcoke, Polypropylene (PP) etc by
various units commissioned in Phase-III Refnery project.
1.7.2 Retail Operations
Your Company embarked into bulk sales of HSD after the introduction of
dual pricing for HSD which has improved sales considerably in the bulk
consumer segment. Domestic sale of Mixed Xylene has increased
considerably against previous year. Keeping in view the gradual
decontrol of HSD in retail segment; Your company is evaluating the
opportunity to set up few retail outlets in select markets.
1.7.3 New Products Marketing Plan
Your Company is setting up a Polypropylene (PP) plant of 440 KTPA
capacity for bulk supplies to downstream processing industry. The
channel partners have been identified for sale of Polypropylene (PP) in
key areas in the domestic market. In addition to this your Company is
also developing storage infrastructure for Polypropylene (PP) in
Karnataka for managing its supply chain for marketing networks.
1.7.4 Joint Ventures
Your Company''s Joint Venture (JV) with Shell B.V. Netherland known as
Shell MRPL Aviation Fuel Services Limited (SMAFSL) supplies Aviation
Turbine Fuel (ATF) to both domestic and international airlines at
Indian airports has performed well.
The Turnover of the SMAFSL was Rs. 651 Crore during the financial year
2013-14 against Rs. 486 Crore during the previous financial year 2012-13
and the Pre-tax profit of Rs. 18.40 Crore during the financial year 2013-14
against Rs.13.14 Crore during the previous financial year 2012-13. The
company has declared dividend of 10% for the financial year 2013-14 as
compared to 8% in the previous financial year 2012-13.
2. AWARDS AND RECOGNITION:.
- Upgraded to Schedule ''A'' CPSEs from Schedule B with effect from
04/07/2013 by the Department of Public Enterprises, thereby making it
eligible for achieving the NAVARATNA status.
- Won the coveted Petrofed Award Refnery of the Year-2012 for its
commendable performance in production and operational efficiencies while
adhering to the norms of health, safety and environment protection.
- Won the Refnery of the Year from Petrofed for the year 2011-12 for
leading performance in production and operational efficiencies while
meeting the norms of Health, Safety and Environment protection.
- Won the Export Excellence Award, 2013 in Best Manufacturer /
Exporter (large category) – Gold from the Federation of Karnataka
Chamber of Commerce and Industry (FKCCI) on 22/06/2013.
- Secured the frst prize for outstanding performance in the area of
Hindi Implementation for the year 2012-13 by Town Offcial Language
Committee(TOLIC), Mangalore on 28/05/2013.
- Secured the frst prize in the Jawaharlal Nehru Centenary Awards for
energy performance for the year 2011-12 & 2012-13 under the Refneries
category having complexity of 6.0.
- Secured the frst prize in the OGCF-2012 awards for Furnace/Boiler
effciency having heat duty more than 1000MM Kcal/hr.
- Won the State Export Excellence Award for 2012-13 & 2011-12 Medium/
Large category – Gold & Platinum respectively by Government of
- Won the award for Best Fuel efficient Boiler operation by the
Department of Factories and Boilers on the occasion of 43rd National
Safety Day celebration.
3. CREDIT PROFILE
3.1 ICRA has reaffirmed Issuer Rating Ir AAA (pronounced IR Triple A)
to your company. This rating indicates the highest credit quality
rating assigned by ICRA and the rated entity carries the lowest credit
3.2 ICRA has reaffirmed [ICRA] AAA (pronounced as ICRA Triple A) to Rs.
3,000 Crore Fund- Based limits of your company. The outlook on the
rating is Stable.
1.3 ICRA has reaffirmed [ICRA] A1 (pronounced as ICRA A one plus) to
Rs. 4,000 Crore Non- Fund based limits of Your company.
1.4 ICRA has reaffirmed [ICRA] A1 (pronounced as ICRA A one plus) to
Rs. 1,500 Crore Commercial Paper issued by your company. This rating
indicates the very strong degree of safety regarding timely payment of
financial obligations i.e., which carries the lowest credit risk.
1.5 CRISIL has reaffirmed [CCR AAA] (pronounced as CCR Triple A). This
rating indicates highest degree of strength with regard to honouring
debt obligations by Your company.
4. FINANCIAL ACCOUNTING:
The financial Statements have been prepared in accordance with the
Generally Accepted Accounting Principles (GAAP), all accounting
standards guidance note on accounting for activities of your company
issued by The Institute of Chartered Accountants of India (ICAI) and
Schedule VI format and other relevant provisions of the Companies Act,
1956. The MCA General Circular No. 1/19/2013-CL-V dated 04/04/2014
clarifes that the Annual Accounts/Financial Statements along with
documents required to be attached thereto, Auditors'' Report and Boards''
Report in respect of financial years that commenced earlier than 1st
April, 2014 shall be governed by the relevant provisions/
Schedules/rules of the Companies Act, 1956.
5. INTERNAL CONTROL SYSTEM
Your Company has a well-established internal control system, which is
commensurate with its size and nature of operations. The internal
control systems are designed to provide a reasonable assurance over
reliability in financial reporting, ensure appropriate authorisation of
transactions, safe guarding the assets of the Company and prevent
misuse/losses and legal compliances.
The internal control system includes a well-Defined delegation of
authority and a comprehensive Management Information System coupled
with monthly reviews of operational and financial performance, a
well-structured budgeting process with regular monitoring of expenses,
a state of art ERP systems and Internal audit.
The internal audit team is led by a professional audit manager and
supported by financial and technical personnel drawn from across the
organisation. The internal audit is conducted as per a plan drawn at
the beginning of the year in consultation with the management and
statutory auditors of the Company which is finally approved by the Audit
Committee. The audit plan attempts to cover all significant risk areas,
review and evaluation of the effectiveness of existing processes,
controls and compliances and ensure adherence to policies and
procedures. All the significant audit observations made by the internal
auditors of the Company are regularly reviewed by the management.
However, all significant audit observations along with the management
responses/ replies and follow up actions are periodically placed for
review before the Audit Committee.
A) Ongoing projects:
i. Phase -III Refnery Upgradation and Expansion Project.
The commissioning of Secondary Process Units of Phase -III Refnery
Upgradation and Expansion project are under near completion, which will
increase the distillate yield and produce high value products viz
Propylene, Gasoline from low value black oils.
Crude Distillation Unit (CDU), Hydrogen Generation Unit (HGU) and
Diesel Hydrotreater Unit (DHDT) were commissioned in the last financial
year. The Refnery achieved major milestones with the commissioning of
the Delayed Coker Unit (DCU), one train of Sulphur Recovery Unit (SRU)
and Coker Gasoil Hydro Treating Unit (CHTU) in the months of April and
May 2014. The last process unit in Phase -III, Petro (PFCCU) unit is
under advance stage of commissioning and expected to go on stream
The delay in commissioning was mainly on account of the delay in the
completion of the Captive Power Plant (CPP) being executed by M/S BHEL.
Most of the major equipments are commissioned and it is expected that
the CPP can supply the required quantity of steam and power for running
all the Phase -III units.
The total expenditure incurred by your Company on Phase –III Refnery
Upgradation and Expansion project is around Rs. 11500 Crore as on
ii. Polypropylene Project (PP):
The Polypropylene (PP) unit being set up with the licensor M/s Novolen
Technology, Germany in integration with the Phase -III Project at an
estimated Capex of Rs. 1804 Crore by your Company has achieved an overall
progress of 95.6% as on 15/07/2014.
The non-vacating of the site by PDF had resulted in shifting the
location of the unit causing delay in the site work and environmental
clearance. The project is expected to get mechanically completed and
will go on stream shortly. The total expenditure incurred on this
project was Rs. 960 Crore as on 15/07/2014.
iii. Single Point Mooring (SPM) Project:
Your Company has setup SPM project along with coastal booster pumping
station within the port limits at a location of 16 Km from the shore
having the draft availability of 30 M for handling Very Large Crude
Carrier (VLCC) at an estimated cost of Rs. 1044 Crore . The SPM was
successfully commissioned on 29/08/2013 by unloading the frst crude
vessel Ratna Puja with the cargo of 87 TMT(''000MT).
This facility will enable the company to receive crude in Suez max /
VLCC vessels, which in turn will give freight economics and also allow
access to West African and Latin American countries for sourcing
crudes. This facility will also de-congest existing berth facility at
New Mangalore Port Trust (NMPT) port and reduce the incidence of
iv. Refnery Performance Improvement Programme
Your Company has taken up Refnery Performance Improvement Programme
(RPIP) through M/s Shell Global Solutions International B.V. under the
auspices of Centre for High Technology, Ministry of Petroleum and
Natural Gas (MoP&NG), Government of India.
The RPIP is aimed at identifying opportunities for improvement by
adopting best operating practices in the areas having a bearing on
profit margin including optimizing operation , energy and utilities
consumption , minimizing hydrocarbon loss and improving maintenance and
The PFI''s (Proposals for Implementation) developed after the
evaluations are under various stages of implementation.
B) Future Projects:
Your Company has signed an Memorandum of Understanding (MOU) with
Government of Karnataka for setting up a Linear Alkyl Benzene (LAB)
Plant (for producing raw materials to manufacture detergent) and to
expand its Refning capacity to 18/21 MMTPA in a time horizon of 3 to 6
years subject to techno economic viability and availability of required
infrastructure at Mangalore with an approximate investment of Rs. 8500
7. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS & OUTGO :
The additional information required to be disclosed pursuant to section
217(1) (e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Directors) Rules, 1988 with
respect to conservation of energy, technology absorption and foreign
exchange earnings & outgo are furnished in ''Annexure- I'' which forms
part of this Report.
8. PARTICULARS OF EMPLOYEES
Your Company being a Government Company is exempted from disclosure of
particulars of employees under section 217(2A) of the Companies Act,
1956, and the Particulars of Employees (Amendment) Rules, 2011.
9. RIGHT TO INFORMATION ACT, 2005
Your Company''s RTI manual is available on its website www.mrpl.co.in,
which discloses all required information.
During the year, 114 applications were received, out of which 111 were
disposed off before 31/03/2014 and balance 3 applications were disposed
10. HUMAN RESOURCES
- Your Company continued to enjoy cordial and harmonious relations with
the collectives and as evidence to the same not a single man-hour was
lost on account of any industrial disturbance during the year 2013-14.
- During the year, your Company has recruited 114 employees comprising
of 8 women employees and 44 Schedules Caste (SC) / Schedule Tribe (ST)
- Total employee strength as on 31/03/2014 was 1715 including 127 women
employees,191 SC/ST employees and 7 Physically Challenged employees.
704 employes belong to Management cadre whereas 1011 employees belong
to Non-Management cadre.
- During the year 2013-14, Your Company devoted 4809 Mandays for
Training, Development and Learning which amounted to an average of 3
Mandays per employee. This includes functional, developmental and
special training programs covering the entire spectrum of employees.
11. OFFICIAL LANGUAGE:
Your Company is implementing Offcial Language Policy in letter and
spirit as per the Annual Programme prescribed by the Department of
Offcial Language, Ministry of Home Affairs, Government of India. In
order to propagate Hindi among the employees, Hindi Workshops are
organised on a regular basis at Mangalore, Mumbai, Delhi & Bangalore
offices. Regular Hindi classes such as Prabodh, Praveen & Pragya in
addition to Hindi Stenography are being conducted for employees. In
order to increase the correspondence in Hindi, by the employees,
special efforts are made to activate Unicode facilities on all the
computers used in your Company. To motivate employees for Hindi usage,
various incentive schemes are introduced such as Cash award & Personal
12. VIGILANCE FUNCTION:
Your Company has developed a structured mechanism of vigilance
functions and its practices are focused towards creation of value for
all the stakeholders. The practices involve multi-layer checks and
balances to improve transparency. Vigilance Awareness and Preventive
vigilance activities were continuously carried out during the year.
Guidelines of Central Vigilance Commission (CVC) are being followed.
officers in sensitive posts are rotated regularly.
Whistle Blower Policy for employees is in place which ensures that a
genuine whistle blower is granted due protection from any
victimization. In compliance with CVC instruction, your Company has
implemented a complaint handling policy in which all complaints
received from various sources can get recorded and can be examined by
vigilance. Further, in line with CVC instruction, your Company has
achieved high compliance level with regard to e-payment and e-tender.
Leveraging of technology to enhance transparency has been a thrust area
of action in which vigilance has played a catalytic role. The website
of the company displays downloadable tender document, publication of
information of works awarded on nomination basis, publication of post
award information of contracts.
Full time Chief Vigilance officer (CVO) is posted and he can be
contacted at email@example.com for any complaint having vigilance
13. SECURITY MEASURES
Security of Refnery of your Company is designed to comply with Oil
Sector Infrastructure Protection Plan (OSIPP) and the Security Audit
recommendations given by the Intelligence Bureau (IB), Ministry of Home
Affairs, Government of India from time to time are duly implemented.
The Security of the Refnery of your Company is handled by Central
Industrial Security Force (CISF) and survey to extend CISF coverage to
newly commissioned Phase -III Project is underway. A project to install
an integrated Security Surveillance System for the entire Refnery is on
Security is on top of the agenda of your Company and to ensure
preparedness, periodic mock drills on work-place security preparedness
are conducted. To promote awareness on security issues amongst all
stake holders, Security Awareness Weeks are organized.
14. CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES
Your Company''s social welfare and community development initiatives
focus on the key areas of education, health care and overall
development of basic infrastructure in and around its operational
areas. The CSR objective of your Company in line with DPE guidelines is
promoted under the name of SAMRAKSHAN. This captures the spirit and
commitment to protect, preserve and promote the social, cultural and
environmental heritage and wealth in and around the area of our
business and to usher in sustainable development. Facilitating Midday
Meal to support continuing Education, setting up of computer room,
Anganwadi building, skill development training for youths,
infrastructural development etc. is a part of the Samrakshan
Your company has spent Rs. 3.47 Crore for various CSR activities during
the year 2013-14.
During the year following changes took place in Board of Directors of
15.1 Shri D.K. Sarraf has assumed the position of CMD, ONGC and
Chairman/ Director of your Company w.e.f. 01/03/2014 consequent to
superannuation of Shri Sudhir Vasudeva from the services of ONGC.
15.2 Consequent upon attaining the age of superannuation Shri P P
Upadhya, Managing Director, retired from the services of MRPL on July
31, 2014. Shri Vishnu Agrawal, Director (Finance) has assumed the
additional charge of the post of Managing Director w.e.f. 01/08/2014.
15.3 Shri V G Joshi was appointed Director (Refnery) w.e.f. 04/04/2013.
15.4 Shri P Kalyanasundaram, Joint Secretary, MoP&NG was appointed
Government Director w.e.f. 15/04/2013 in place of Shri P. K. Singh.
Shri P. Kalyanasundaram who retires by rotation and being eligible
offers himself for re-appointment as a Director.
15.5 Shri B. K. Namdeo, Director Refnery (HPCL) was appointed as
Director w.e.f. 01/07/2013 in place of Shri K. Murali consequent upon
superannuation from the services of HPCL. Shri B. K. Namdeo who retires
by rotation and being eligible offers himself for re-appointment as a
15.6 Shri B Ravindranath ceased to be an Independent Director / Nominee
Director of IDBI Bank Limited., w.e.f. 06/01/2014.
15.7 Dr. D. Chandrasekharam ceased to be an Independent Director w.e.f.
10/03/2014 consequent upon the expiry of his 3 years term as an
Independent Director on the Board of ONGC.
15.8 Shri K. S. Jamestin, Special Invitee on the Board, was
superannuated from the services of ONGC as Director (HR) on 31/07/2014
and ceased to be a Special Invitee on the Board. Shri A. K. Banerjee,
Director (Finance), ONGC, has been nominated as Special Invitee on the
Board of MRPL w.e.f. 05/08/2014.
15.9 The Board wishes to place on record its deep appreciation for the
services rendered and contribution made by Shri Sudhir Vasudeva, Shri P
P Upadhya, Shri P. K. Singh, Shri K. Murali, Shri B Ravindranath, Dr.
D. Chandrasekharam and Shri K. S. Jamestin as directors / special
Invitee during their tenure on the Board of the company.
16. DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirement under section 217(2AA) of the Companies
Act, 1956, with respect to Directors'' responsibility statement, it is
hereby confirmed that:
a. In the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper explanation
relating to material departures;
b. The Directors have selected such accounting policies and applied
them consistently and made 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 at the end of the financial year 2013-14 and of the profit
and loss of the company for that period;
c. The Directors have taken proper and suffcient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 and 2013 for safeguarding the
assets of the company and for preventing and detecting fraud and other
d. The Directors have prepared the Annual Accounts for the financial
year 2013- 14 on going concern basis.
17. FIXED DEPOSIT
Your company has not accepted any fixed deposit during the year from the
18. CORPORATE GOVERNANCE
18.1 Your company has complied with all the mandatory provisions of
Clause 49 of the Listing Agreement relating to the Corporate Governance
requirements and mandatory guidelines on Corporate Governance for CPSEs
issued by DPE, Government of India, except the composition of Board of
18.2 The Annual Report contains a separate section on Corporate
Governance, which forms part of this Report.
18.3 Pursuant to Clause 55 of Listing Agreement, Annual Business
Responsibility Report (ABRR) has been prepared for the financial year
and the same has been uploaded on the website of the company
18.4 Pursuant to Clause 49 of the Listing Agreement with Stock
Exchanges, Your company has obtained the Certifcate from the Joint
Statutory Auditors of the Company, towards Compliance of Corporate
Governance which is annexed to and forms part of this report.
18.5 As a measure of good corporate governance, Your company has
engaged M/s Ullas Kumar Melinamogaru & Associates, Practicing Company
Secretaries, Mangalore for conducting Annual Secretarial Compliance
Audit for the year 2013-2014. M/s Ullas Kumar Melinamogaru & Associates
Practicing Company Secretaries, Mangalore have issued Annual
Secretarial Compliance Audit Report for the year 2013-14 which forms
part of this report.
19. MANAGEMENT DISCUSSION AND ANALYSIS
In terms of Clause 49 (IV)(F) of the Listing Agreement with the Stock
Exchanges, the Management Discussion and Analysis Report for the year
have been attached and forms part of this report.
20.1 M/s Gopalaiyer and Subramanian, Coimbatore and M/s A Raghavendra
Rao and Associates, Mangalore have been appointed as Joint Statutory
Auditors of the Company for the Financial Year 2013-14 by Comptroller &
Auditor General of India (C&AG).
20.2 The report of the C&AG at Annexure III forms part of this Report.
20.3 Pursuant to the provisions of the Companies Act, 1956, the cost
accounts maintained by the company for the financial year 2013 -14 are
being audited by Cost Auditors M/s. Musib and Associates with approval
of Ministry of Corporate Affairs, Government of India.
- Your Company always conducts business with a strong commitment for
environment preservation, sustainable development, safe workplaces and
enrichment of the quality of life of its stakeholders and the community
- Your Directors are highly grateful for all the help, guidance and
support received from the Ministry of Petroleum and Natural Gas
(MoP&NG), Ministry of Finance (MoF), Ministry of Corporate Affairs
(MCA), Department of Public Enterprises (DPE), Ministry of Environment
and Forest (MoEF), Ministry of External Affairs (MEA), Ministry of
Shipping (MoS), Ministry of Home Affairs (MHA) Ministry of Heavy
Industries and Public Enterprises (MoHI&PE) and other inistries and
Departments of Central and State Governments especially the Government
- Your Directors gratefully acknowledge the continued support and
guidance extended by Oil and Natural Gas Corporation (ONGC) Limited,
the parent company.
- Your Directors thank all shareholders and members of the Company for
their faith, trust and confdence reposed on the Management of the
- Your Directors wish to place on record their sincere appreciation for
the sustained efforts and dedicated contributions put in by all the
employees collectively and concertedly as a Team, to ensure that the
Company continues to grow and excel.
For and on behalf of the Board
Place: New Delhi
Date : 05/08/2014