1. Loans and Advances :
1.1 Loans and advances include refund claims for Custom Duty on project
importsRs. 378.71.Million (Previous year Rs.378.71Million) and Commercial
Taxes Rs. 476.34 Million (previous year Rs. 500.63 Million). A further
refund due towards Commercial Taxes Rs. 2884.43 Million is also included
therein for which there is a matching liability to pay to customers on
receipt of the refund which is included under Sundry Creditors
(Others).
2.2. Sales tax deferment loan shown under Unsecured Loans includes a
sum of Rs. 290.17 Million (Previous Year Rs. 290.17 Million) relating to
CST on excise duty included under refund from Commercial Tax Department
(refer note no.1.1 above) for the years 2000-01and 2001-02, which were
earlier paid under protest and are now being claimed as sales tax
deferment loan by the Company.
3. The Company is yet to receive response for its confrmation letters
from some of the Sundry Debtors, Loans and Advances and Sundry
Credito Rs. Reconciliation and adjustment will be effected on receipt
of confrmations, which in the opinion of the management will not be
significant.
4. Following expenses are included under other heads of expenses
Insurance charges amounting to Rs. 17.13 Million (Previous year Rs. 20.46
Million) relating to crude purchase and staff welfare has been charged
under respective heads.
5. Wage revision
The Company during the financial year has finalised the wage revision of
unionised employees effective from 01.04.2007. The quantum of wage
arrears relating to period from 01.04.2007 to 31.03.2010 net of
provision amounting to Rs. 405.00 Million is shown under Payment to and
Provision for Employees in Schedule P.
6. Dues to Micro, Small & Medium enterprises:
The classifcation of the suppliers under Micro, Small and Medium
Enterprises Development Act, 2006 is made on the basis of information
made available to the Company. The Company has neither paid any
interest in the terms Section 16 of the above said Act nor any interest
remain unpaid and no payments were made beyond the ''appointed date'' to
such enterprises during the year ended 31.03.2011. Amount outstanding
to these enterprises for the year ended 31st March, 2011 is Rs. Nil
(Previous year: Rs. 0.74 Million)
7. Disclosures as required under Accounting Standard 15 (Revised) is
given below:
7.1. Brief Description: A general description on the type of defined
Beneft Plans are as follows:
a) Earned Leave Beneft (EL):
Accrual - 32 days per year
Accumulation up to 300 days allowed
EL accumulated in excess of 15 days is allowed for encashment while in
service provided the EL encashed is not less than 5 days.
b) Sick Leave (SL):
Accrual - 10 days per year
Encashment while in service is not allowed
Encashment on retirement is permitted and entire accumulation is
allowed for encashment
c) Gratuity:
15 days salary for every completed year of service. Vesting period is 5
years and the payment is restricted to Rs. 10, 00,000.
d) Long Service Emblem:
On completion of each milestone of service from the date of joining and
also at the time of retirement, employees will be gifted with Gold
Coin, weight depends on the milestone of service completed.
e) Post Retirement Medical benefits:
After retirement, on payment of one time employee''s share of premium,
the employee and his/her spouse will be covered under Group Medical
Insurance. The cover amount depends on designation of employee at the
time of retirement.
f) Retirement benefits:
At the time of superannuation, employees are entitled for reimbursement
of expenses towards travel, transportation of personal effects from
their place of retirement to the new location upto certain limits
depending on the designation of the employee at the time of retirement
and one month''s salary as settling allowance.
8. Segment Reporting
The Company is engaged in the business of refining crude oil, all
activities of the Company revolve around this business and the
operations are in India. As such there is no other reportable segment
as defined by the Accounting Standard 17 - Segment Reporting issued
under the Company (Accounting Standard) Rules, 2006.
9. Information as per Accounting Standard (AS-18) on Related Party
Disclosures is given below
9.1. The Company is a state controlled enterprise and the transactions
with other state controlled enterprises are not required to be
disclosed as per AS-18.
9.2. Key Management Personnel: Functional Directors:
(i) Shri. U.K.Basu, Managing Director
(ii) Shri L.K.Gupta, Director (Finance).- Part of the period upto
31.05.2010
(iii) Shri P.P.Upadhya, Director (Technical) - Part of the period from
30.09.2010. Remuneration paid to the above-mentioned Directors during
the year is Rs. 6.92 Million (Previous year Rs. 5.63 Million) - Refer Note
No. 10 given below
The above fgures do not include Provision for Leave, Gratuity and Post
Retirement benefits as per Revised AS-15 since the same were not
ascertained for individual employees.
The performance related pay is considered on paid basis
Loan & Advances outstanding from Directors – Rs. Nil (Previous year - Rs.
Nil),
Maximum amount of Loans & Advances outstanding during the year ended
31st March, 2011, Rs.Nil (previous year Rs. 0.42 Million)
10. Operating Leases:
10.1. The company has taken various premises under cancellable
operating lease.
10.2. These lease agreements are normally renewed on expiry of the
term.
10.3. Lease rental expenses for the year ended 31st March, 2011 in
respect of above operating leases are Rs. 44.22 Million (previous year Rs.
40.87 Million)
11. Current Tax:
11.1. Provision for Current Tax is made in accordance with the
provisions of the Income Tax Act, 1961.
12. Disclosure on Research & Development Expenditure
The Company during the year has carried out activities relating to
study of Crude Assay, Modified Bitumen, Liquid effluents, VG Bitumen &
Additive Evaluation. as a part of its R & D activities. The company has
obtained approval of competent authority to establish R&D facilities
for carrying out development work w.r.t Polypropylene unit, PFCCU Unit,
Corrosion Monitoring, Development of Modified bitumen and Bitumen
Emulsions and effluent & Spent Caustic Treatment. The total expenditure
incurred by the company during the year on the above mentioned Research
& Development activities is Rs. 1.11 Million (Previous Year - Rs. 1.83
Million).
12.2 Contingent Liabilities not provided for in respect of:
1. Corporate Guarantee given by the Company towards loan of Rs. 3,372.30
Million sanctioned by certain bankers / financial institutions to New
Mangalore Port Trust (NMPT) for construction of Jetties. Amount
outstanding as at the close of the year ended 31st March, 2011, after
adjusting the repayment made by NMPT is Rs. Nil (Previous Year Rs. Nil).
2. Claims against the Company not acknowledged as debt :
(` in Million)
Sl. Particulars As on As on
No 31.03.2011 31.03.2010
1 Claims of Contractors / vendors in
Arbitration / Court 352.47 338.65
Some of the contractors for supply and
installation of equipment have lodged claims
on the Company seeking revision of time of
completion without liquidated damages,
extended stay compensation and extra claims
etc., which are contested by the Company as
not admissible in terms of the provisions of
the respective contracts. In case of
unfavourable awards the amount payable would
be capitalised Rs. 314.74 million /
Reimbursable Rs. 37.73 million [Previous
year Rs. 300.92 million and Rs.
37.73 million respectively]
2 Claims / counter claims of Customers
(a) The Company had gone into an international 16.17 14.31
arbitration at London against one of its export
customers. The arbitration Tribunal has dismissed
the Company''s claims relating to throughput loss
and non-full fllment of contractual
obligations and has ordered the
Company to bear the customer''s
advocate cost along with refund of part of adhoc
amount paid by the customer along with interest.
The Company has preferred an appeal in the
Mumbai High Court against this arbitral award. In
case of unfavourable award the amount payable
would be debited to Profit & Loss Account.
(b) One of the customers has lodged a claim for 85.20 85.20
damages for pre-closure of the contract. The
Company has disputed the claim basis Force
Majure condition. In case of non acceptance
of the stand taken by the Company the amount
will be debited to the Profit & Loss Account.
3 Others
(a) The New Mangalore Port Trust (NMPT) has 606.42 177.38
claimed from the Company notifed wharfage
charges for one of the Jetty. The company
has approached the Tariff Authority of Major
Ports (TAMP) for fxation of the wharfage rates
based on Tariff Policy. The differential amount
between the wharfage rate to be fixed by the
TAMP and the wharfage rate being paid by the
Company, if any, will be debited / credited to
the Profit & Loss Account.
(b)This represents the potential liability which 133.67 133.67
the Company has undertaken towards
reimbursement to lessors in case of any
liability in their respective tax assessments. In
case of any claim by lessors the same will be
debited to Profit & Loss Account.
4 Total 1193.93 749.21
In respect of all these claims, which are being contested by the
Company as not admissible, it is not practicable to make a realistic
estimate of the outfow of resource, if any, for settlement of such
claim pending resolution / award from Arbitrators / Court.
3. Disputed tax / Duty demands pending in appeal:
a) Income Tax: Rs. 373.90 Million (Previous Year Rs. 244.51 Million).
(against this Rs. 251.41 Million is adjusted / paid under protest and is
included under loans & advances.)
b) Commercial Tax: Rs. 1217.84 Million (Previous Year Rs. 1,188.76 Million)
- includes Rs. 524.87 Million (Previous Year Rs. 500.46 Million) relating
to projects. (Against this Rs. 377.20 Million is paid under protest and
included under loans & advances.)
c) Excise Duty: Rs. 360.26 Million (Previous Year Rs. 146.45 Million).
(against this Rs. 41.08 Million is paid under protest and is included
under loans & advances.)
d) Customs Duty: Rs. 130.19 Million (previous year Rs. 128.82 Million).
4. The estimated amount of contracts remaining to be executed on
capital account and not provided for (net of advances) Rs. 57,527.76
Million (Previous year Rs. 93,391.12 Million).
13. Previous year''s fgures have been re-grouped / re-arranged wherever
necessary to conform to the current period presentation.
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